As Economic Questions Loom, PandoLogic Makes Sense of the Noise with New Labor Market Insights Report

Findings Feature Proprietary Data and Research from PandoLogic and The Center for Business and Economic Analysis at St. Norbert College

PandoLogic, a wholly owned subsidiary of Veritone, Inc. and a leading provider of artificial intelligence (AI) hiring solutions, published its first Labor Market Insights Report, created in conjunction with the Center for Business and Economic Analysis (CBEA) of the Donald J. Schneider School of Business and Economics at St. Norbert College. Included in the report are findings related to the U.S. economy, labor market and recruitment metrics, with the first edition analyzing critical matters of GDP, inflation, unemployment rate, wages and more in Q2 2022.

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Taking a comprehensive look at today’s employment landscape in the context of recruitment, the report details how economic volatility impacts metrics such as cost per click (CPC), conversion rate (CVR) and cost per applicant (CPA). The report also examines topics of interest as well as some of the indicators of the road ahead to help employers refine hiring strategies. Notably, some of the initial findings include:

• Job openings are falling as quits remain steady – The lingering effect of the Great Resignation sees workers continuing to quit their jobs in search of better opportunities despite a decrease in the number of available positions.
• Wage growth was outpaced by inflation – The year-over-year growth for average wages was 5.2 percent, while inflation rose by 9.1 percent, negating much of the increase.
• CPC rates are softening – While CPC jumped by roughly 32 percent from June 2021 to January 2022, in Q2, this number fell 15.3 percent, ending at $0.77 per click on average.
• Hiring continued across most industries – Though employment across most sectors continued to increase in Q2, the retail trade did not rebound as much and sits above pre-pandemic levels by 1.2 percent or 186K jobs.
• Work from home does not necessarily mean workers are moving – Data indicated that while 13.4 percent of workers were fully remote in Q2, and another 30.3 percent were in hybrid environments, only 3.3 percent of workers have made or plan to make long-distance moves as a result.

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Reflecting on the report, Marc Schaffer, Ph.D., Professor of Economics & Data Analytics at St. Norbert College, explained, “The economy has been sending mixed signals throughout 2022; weak GDP numbers combined with elevated inflation levels and a tight labor market is a recipe for challenges and uncertainty. The labor market has been a source of strength for the economy for most of the year but will be put to the test in the current Federal Reserve policy environment. There continues to be variation across sectors and regions from an employment perspective, while work-from-home trends have begun to settle into their new normal. High frequency recruiting metrics from PandoLogic suggest a possible softening in the labor market on the horizon in line with the broader economy.”

Terry Baker, President and CEO of PandoLogic, commented, “Given the rapidly evolving conditions of the last few years, employers must recognize how key factors influence recruiting across industries and geographies. Through this collective effort, accentuated by PandoLogic’s recruitment marketing data, we’ve put together a robust assessment of what happened in the U.S. labor market in Q2 2022. As an ongoing resource, the Labor Market Insights Report offers analysis and actionable information to help employers navigate the path forward.”