Category: Talent & Market Insights

Global Youth Employment Trends: AI, Automation and the Vanishing Entry-Level

Posted on by akessler

Across the global economy, organizations are making a rational short-term calculation: automate the entry-level, reduce headcount costs and redeploy senior staff—augmented by AI —to cover broader workloads. The efficiency gains are real. The quarterly savings are visible.  

But it’s worth pausing to ask what this strategy looks like not now, but in 2033. 

The entry-level role has never simply been a unit of labor. It has been the first stage of a decade-long process by which junior professionals become senior ones—accumulating judgment, domain knowledge, institutional memory and leadership capability. When that first stage becomes automated, the impacts extend beyond cost savings for organizations today. They may be quietly reducing the pipeline of experienced talent they’ll need when AI reaches its own ceiling: the domains of complex negotiation, ethical judgment, client relationships and strategic leadership that no current model can replicate. 

This article examines the current state of global youth employment, the structural dynamics driving the decline of entry-level hiring and the long-term talent questions that organizations may not yet be considering. 

The State of Global Youth Employment 

Across advanced economies, the youth unemployment rate sits at approximately 11.2%—nearly twice the adult rate—affecting an estimated 64 million young people aged 15–24. 

But unemployment figures alone don’t capture the full picture. More than one in four young people worldwide are not in employment, education or training (NEET). Among an overall hiring slowdown in the United Kingdom, economic inactivity among 16–24-year-olds has risen sharply since 2020, driven by deteriorating mental health, rising living costs and a growing sense among young people that the formal labor market doesn’t offer a credible path to financial stability.  

A Snapshot by Country 

While AI and automation are global forces, their impact on youth employment varies significantly by market—and the variation is largely explained by how employers and governments have prioritized entry-level talent development as a shared investment. 

Germany, with a youth unemployment rate of 6.6%, runs a dual education system in which students split their time between classroom instruction and structured workplace practice. By the time they formally qualify, they are already partially integrated into a company’s workflow. Employers participate in curriculum design, ensuring the transition from education to employment is managed and gradual. 

Singapore (5.7% for under-30s) takes a similarly deliberate approach through its SkillsFuture initiative. When AI automates a function, the goal is to ensure workers are already trained for the next layer of value-adding activity, rather than left behind by it.  

By contrast, Spain (25.3%), France (18.9%), and the UK (16.1%) present a starker picture. 

In Spain, where nearly 1 in 4 young people are unemployed, a dual labor market divides older workers with protected contracts from youth cycling through temporary, low-skill roles. 

In France, despite heavy government subsidy of apprenticeship programs, multiple assessments highlight persistent skills imbalances, with parts of the education and training system still struggling to adapt to employers’ needs.  

The U.S. (9.0%) and Australia (9.5%) sit in the middle. Headline numbers look functional but mask a quieter hollowing-out of entry-level opportunities. Many graduates are entering the workforce through the gig economy or into service roles that don’t leverage their post-secondary education. They’re formally employed—but may not be engaged in professional development while on the job. 

How AI is Reshaping the Job Market 

AI is the most significant and rapidly evolving factor impacting the youth employment picture today. Since 2022, Gen AI has moved from a niche technology to a standard workplace tool. But its impact is more about redistribution than replacement. 

Historically, junior positions have served as vital training grounds, allowing young professionals to learn foundational skills, understand workplace dynamics and build networks. The roles most affected by AI automation are those that have traditionally been junior positions, like data analysis and reporting, content production, basic legal research, administrative coordination, junior software development and customer-facing support. They’re task-oriented and repeatable, which makes them a natural fit for automation. 

As AI absorbs those repeatable tasks, senior employees can manage broader scopes of work without junior support. The result isn’t mass layoffs of existing young workers — it’s a sustained reduction in the creation of new entry-level positions. A recent study from the Stanford Digital Economy Lab, shows that employment for U.S. workers aged 22-25 in “AI-exposed” roles fell by 13% between 2022 and 2026, driven largely by a decline in new hiring rather than existing job losses.in new hiring rather than existing job losses. 

These are not peripheral roles. They are the apprenticeship layer of the knowledge economy—and when they disappear, so does much of the on-ramp to professional development and career growth. 

The Retirement Gap: A Question Worth Asking 

We know that the Baby Boomer and Generation X cohorts currently occupying senior leadership positions are already exiting the workforce and will continue to do so over the next decade. What’s less well understood is how that shift interacts with suppressed entry-level hiring.  

The journey from junior professional to senior leader isn’t a short one. In most knowledge industries, getting from first job to senior director takes ten to fifteen years. Which means the professional who doesn’t get hired in 2026—because the entry-level role they would have filled has been automated—isn’t in the running for senior leadership in 2038. They simply aren’t in the pipeline. 

The risk, if this trend continues at scale, is a gap in the organizational hierarchy in the mid-2030s where mid-level managers and experienced specialists would ordinarily sit. This gap would be most acute in AI-exposed professional domains—precisely where automation is currently most prevalent. 

When senior leaders retire, organizations will face a choice: hire experienced professionals externally or promote from within. For organizations that have built healthy pipelines, internal promotion is viable. For those that have largely automated, and therefore eliminated entry-level roles, it may not be. And if many organizations in an industry make the same decisions, the external market won’t have the talent pipeline to compensate either.  

The cost of acquiring senior talent is already rising, and it may eventually exceed the cumulative cost of the entry-level investment that organizations sought to avoid through AI and automation in the first place. 

The AI Ceiling and the Human Premium 

There’s also a shift worth noting in what employers say they’re looking for at the junior level. The traditional value proposition of the junior hire was potential: raw capability that could be shaped through on-the-job training, mentorship and progressively more complex work. The employer was making an investment. 

Increasingly, that investment seems to be narrowing. Recent employer surveys suggest that AI capabilities have become a non‑negotiable part of the junior hiring profile: roughly two‑thirds of executives say they would not hire candidates without AI skills. The expectation of a learning curve has been compressed: more than three‑quarters of business leaders say that entry‑level employees who already have AI skills will be given greater responsibilities, reinforcing an expectation of immediate AI‑enabled productivity rather than slower on‑the‑job upskilling. 

The tension here is that the AI-adjacent technical skills most in demand at the entry level today are also the skills most likely to be obsolete within three to five years as AI capabilities continue to advance. Meanwhile, demand for deeper human competencies—critical thinking, ethical judgment, complex negotiation and emotional intelligence—that are developed by working alongside experienced practitioners, has increased over time.  

As AI manages more of the technical execution, the value of these human-centric skills appears to be rising. But those skills can’t be developed if the junior hire never happens. 

What This Means for Talent Acquisition and HR Leaders 

These dynamics warrant deliberate consideration. Organizations that recognize the long-term implications of today’s efficiency decisions will be better positioned than those that don’t. 

Key considerations for protecting your long-term talent pipeline: 

Reframe the Entry-Level as a Future Talent Investment, Not Headcount Cost 

Today’s junior hire is tomorrow’s senior leader—one with institutional knowledge, organizational loyalty and capabilities that can only be developed through sustained, progressive experience. The ROI is long term, but it’s real. Organizations that factor in the future cost of external executive search, sign-on packages and productivity loss from outside appointments may find that internal pipeline development looks considerably more favorable than standard headcount analysis suggests. 

Audit the Developmental Quality of Existing Junior Roles 

Organizations that have retained some entry-level hiring should consider whether those roles are genuinely developmental in practice. The risk is that junior roles are retained in title but hollowed out in substance—reduced to AI oversight functions that don’t build the analytical, relational or strategic depth that matters at the senior level. If, after two years, an employee in a junior role demonstrates little growth beyond managing AI tools, the role may not be serving its pipeline function. 

Engage with Systemic Solutions 

The country-level evidence shared above makes it clear: organizations in markets with structural educational and vocational frameworks (Germany, Singapore) have better access to work-ready, developmentally prepared young talent. In markets where those frameworks are weaker, HR leaders have both an incentive and an opportunity to help build them—through apprenticeship design, university curriculum partnerships and engagement with government-led workforce initiatives. 

Assess for Future Value, Not Just Immediate Fit 

Often, candidate screening and assessment—especially when AI-driven recruitment tools are involved—are calibrated to match current role requirements. This can deprioritize candidates with high potential but limited formal experience, which describes most entry-level candidates. It’s worth reviewing whether your screening criteria adequately weigh indicators of potential: learning velocity, cognitive flexibility and evidence of initiative, alongside experience proxies.  

Conclusion: Rebuilding the Ladder 

The current global youth employment picture isn’t just a social policy concern. It raises a genuine strategic question for employers: what are the long-term workforce consequences of automating entry-level tasks? 

The entry-level role serves two purposes: producing value in the short term and developing experienced professionals in the long term. While AI is increasingly capable of delivering the first in many domains, it’s much less capable of substituting for the second. Organizations that optimize entirely for cost savings may find, in time, that they’ve traded away something even more valuable—experienced human judgment. 

Though the career development ladder hasn’t been destroyed by AI, its bottom rungs are being quietly removed. It’s worth asking, now, whether the organizations playing the efficiency game today will regret it when the time comes to climb. 

Why Talent Acquisition Leaders are Trading Efficiency Metrics for Economic Impact 

Posted on by akessler

For a long time, measuring success in talent acquisition has been a simple equation of speed and thrift: how fast can we fill this seat, and how little can we spend doing it? 

But in today’s AI-enabled workplace, those answers aren’t only insufficient—they’re actively working against you. 

CFOs are scrutinizing HR budgets with new intensity, and they’re not impressed by headcount velocity. CHROs and Board Directors are asking a far more uncomfortable question: “The role was filled in 20 days for $3,000, but did it actually move the needle on revenue?” 

According to Gartner, nearly one-quarter of the global workforce is currently 20% less productive than the average employee, while only 17% of HR leaders feel they’re effectively managing underperformance. Meanwhile, AI has made application volumes explode and automated screening standard practice. Efficiency is no longer a competitive advantage. It’s table stakes. 

For talent acquisition leaders to demonstrate impact, they’ll need to stop asking “How fast did we work?” and start calculating “How much value did we create?” They’ll have to retire a few comfortable metrics and replace them with something far more powerful. 

From “Time-to-Fill” to “Time-to-Productivity” 

Filling a seat in 30 days can feel like a win. But here’s a question you should be asking: what happens next? 

In a market that values speed, a “fast hire” who takes seven months to understand the product is actually a slow hire. The speed of the offer letter is irrelevant if the new hire doesn’t contribute to workforce productivity quickly.  

Time-to-productivity reframes the speed-based metric entirely — measuring not days from job post to accepted offer, but days from start date to meeting 100% of role KPIs. It’s a harder number to capture, but the payoff is real: industry benchmarks suggest that companies focusing on Time-to-Productivity see a 15–20% increase in first-year output by aligning recruitment profiles more closely with operational realities rather than static job descriptions. 

This pivot forces a tighter integration between recruitment, onboarding and L&D. TA can no longer hand off a hire and walk away—the ramp-up is part of the recruiting outcome. Talent leaders must evolve from being “closers” to being architects of business readiness. If a hire reaches peak productivity 20% faster, that’s a direct impact to the bottom line. 

From “Cost-per-Hire” to “Net Talent Value” (NTV) 

Cost-per-hire feels strategic. But there’s a risk that this metric could create an incentive to cut corners—fewer channels, faster (potentially less careful) decision making or less investment in candidate experience. And it tells you nothing about whether the new hire went on to deliver value for the business.  

Research from the 2025 State of Staffing found that 31% of high-growth firms now rank quality-of-hire as their top ROI metric, while cost-per-hire has plummeted to just 19%. The market has already shifted. 

Net Talent Value flips the equation: 

NTV = Economic Value Generated by Hire − (Total Cost of Acquisition + Salary) 

For example, an engineer earning $150,000, who costs $20,000 to recruit and generates $1 million in product value is a far better hire than a coordinator earning $50,000, with little to no recruitment costs but exits within six months, taking institutional knowledge and onboarding investment with them. A professional search fee of $50k looks expensive on a spreadsheet, but if that hire generates $2M in new enterprise value, the ROI speaks for itself. 

NTV reframes talent acquisition as an investment portfolio. Think of it not as minimizing spend but as maximizing return. That’s a language CFOs understand and respect. 

From “Applicant Volume” to “Slate-to-Interview Ratio” 

This measurement shift addresses a challenge we hear about frequently from our clients— one job posting can generate thousands of applications, creating a huge burden for recruitment teams who have to sift through them. The rise of AI-driven mass-application bots has created a bottleneck in which recruiters are triaging instead of doing the high-judgment work that actually drives outcomes. Hiring managers, flooded with cookie cutter applications, lose trust in the process. 

The slate-to-interview ratio can help cut through the noise: what percentage of candidates presented to a hiring manager advance to final-stage interviews? Leading firms are targeting a 3:1 ratio—three candidates presented, one hired—as the benchmark for a high-quality slate. That ratio proves something harder to quantify but deeply valuable—your TA team doesn’t just source, they understand what the business needs. 

If your hiring managers are interviewing only one out of every 20 candidates presented, your TA team is wasting the most expensive resource in the company—your leaders’ time.  

From “First-Year Retention” to “Success-Adjusted Retention” 

Retention is good. Retaining the right people is better. 

First-year retention as a standalone metric has a quiet flaw: it rewards keeping bodies in seats, regardless of whether those bodies are contributing. Gartner’s 2026 priorities highlight “Regrettable Retention” as a primary barrier to organizational productivity. An employee who stays 14 months and consistently underperforms isn’t a recruiting success. They cost an organization in productivity, team morale and manager time. 

Success-adjusted retention adds a qualifier that changes everything: the percentage of hires who stay 12+ months and receive good scores in their first performance review. The data makes the case—organizations using data-driven quality-of-hire scorecards see a 59% improvement in turnover rates among high-potential employees. 

Retention is often viewed as an “HR problem” that starts after the first day of work. In reality, retention is a recruitment outcome. This shift requires an employer to connect recruitment data with performance management data—which, in turn, demands closer partnership with HR and front-line managers. This cross-functional collaboration makes talent acquisition genuinely strategic. It also surfaces a practical insight: if a specific sourcing channel consistently produces just average performers who stick around, that channel is a long-term risk to your organization’s A-player density. 

From Back Office to Boardroom 

The transition from measuring recruitment efficiency to measuring business impact isn’t just a change in spreadsheets; it’s a change in identity. 

Winning organizations are the ones where talent acquisition leaders join revenue conversations, speak the language of ROI and can demonstrate—with data—that hiring is one of the highest-leverage investments a company makes. By shifting your metrics toward productivity, value and quality, you move talent acquisition out of the back office and into the center of corporate strategy.  

Ready to rethink your talent metrics? PeopleScout’s Talent Diagnostic delves deep into every facet of your talent lifecycle—from evaluating your employer brand and enhancing your attraction strategy, to optimizing the candidate experience and maximizing technology usage. We leave no stone unturned. Get in touch to learn more. 

PeopleScout Jobs Report Analysis – January 2026

Posted on by lloftus

The January 2026 jobs report suggests the U.S. labor market may be finding firmer footing after a year of exceptionally slow growth. Nonfarm payrolls increased by 130,000—comfortably above expectations—while the unemployment rate edged down to 4.3%. Healthcare once again drove the majority of gains, with construction and select professional services roles also expanding. For employers, the report reinforces a familiar but important theme: demand for labor persists, yet it is selective and measured. 

The Numbers 

  • 130,000: U.S. employers added 130,000 jobs in January. 
  • 4.3%: The unemployment rate dropped to 4.3%. 
  • 3.7%: Wages rose 3.7% over the past year.  

The Good 

January’s stronger-than-anticipated payroll growth tentatively suggests that hiring momentum is stabilizing. Private employers added 172,000 jobs, indicating organizations are still willing to invest in talent where demand supports it. The unemployment rate dipped slightly and remains within a range that is historically consistent with a healthy labor market. Healthcare continued to demonstrate remarkable durability, adding more than 80,000 jobs and accounting for a substantial share of total hiring. The construction industry also posted another solid month (+33,000). For talent leaders, these signals point to continued competition for critical skill sets rather than a broad-based pullback. 

The Bad 

Beneath the headline, the report confirms that overall labor market growth remains limited. Outside of a few industries, many sectors were flat. The most consequential development came from last month’s revisions to 2025 data, which showed the economy added just 181,000 total jobs, down sharply from the previously reported 584,000. This reframes last year as one of the weakest periods for job creation outside of a recession and indicates a far tighter, more competitive environment than earlier numbers implied. Other factors reinforce the picture of caution: job openings have trended down, long-term unemployment remains elevated compared with a year ago and hiring activity continues to trail historical norms.  

The Unknown 

The January improvement raises an important question: is this the beginning of a gradual reacceleration or simply variability within a slow-growth cycle? Seasonal factors, benchmark adjustments and shifting participation trends make early-year readings particularly complex. Economic dynamics, geopolitical risk and rapid advances in AI-driven productivity continue to shape how employers think about workforce investment. At the same time, the Federal Reserve has indicated it can afford to be patient as it evaluates incoming data, leaving borrowing conditions relatively stable for now. 

Conclusion 

January’s report provides cautious optimism. Hiring proved stronger than expected, unemployment remains contained and several core industries continue to expand. Yet the sweeping downward revisions to 2025 serve as a reminder that the labor market has been operating with far less momentum than many believed. 

PeopleScout Jobs Report Analysis – December 2025

Posted on by lloftus

The December 2025 jobs report offers the first clear look at the U.S. labor market in several months following data collection disruptions. U.S. employers added 50,000 jobs last month, slightly below expectations and marking a continuation of the subdued hiring pace that characterized 2025. The unemployment rate declined to 4.4% from a revised 4.5% in November, though this followed significant downward revisions to prior months. Healthcare and Leisure & Hospitality led job creation, while Retail and Manufacturing continued to contract.  

The Numbers 

50,000: U.S. employers added 64,000 jobs in December. 
4.4%: The unemployment rate dropped to 4.4%. 
3.8%: Wages rose 3.8% over the past year.  

The Good 

December’s payroll gains, while modest, suggest the labor market has avoided a sharp deterioration despite considerable headwinds throughout 2025. Unemployment ticked down to 4.4%, remaining historically low even as hiring slowed. Leisure & Hospitality led hiring with 47,000 new jobs, while Healthcare added 21,100 positions, continuing the sector’s trend of consistent employment growth. Year over year wage growth remained positive, with average hourly earnings rising 3.8% year-over-year, continuing to outpace inflation and supporting household purchasing power. Relatively low initial unemployment claims indicate businesses are taking a cautious but not panicked stance on workforce management. 

The Bad 

The broader context reveals notable labor market weakness. December’s 50,000 jobs added fell short of the modest forecast of 60,000 and represented a decline from November’s revised 56,000 gain. Revisions to October and November reduced previously reported employment by 76,000 jobs, with October’s payroll losses now estimated at 173,00. The average monthly job gain of approximately 49,000 in 2025 represents a significant deceleration from 2024’s 168,000 monthly pace, signaling a fundamental shift in employer hiring behavior. Sector-specific weakness persisted, with Retail shedding 25,000 jobs in December and Manufacturing posting its eighth consecutive month of declines. The data underscores a more cautious environment where hiring is increasingly selective and tied closely to business-critical needs. 

The Unknown 

Employers are navigating an unusually complex and uncertain environment as they enter 2026. Tariff policy remains a factor in workforce planning—particularly for manufacturers and importers. At the same time, companies are evaluating whether and when artificial intelligence adoption might reduce their need for additional headcount. Anticipated tax cuts and the potential for lower borrowing costs could boost hiring in 2026, but the timing and magnitude of any impact remain unclear. Whether these dynamics translate into further labor market softening—or stabilize as economic conditions evolve—will be an important watchpoint for employers entering 2026. 

Conclusion 

The December jobs report closes out a year defined by slowing momentum in the U.S. labor market. While unemployment remains relatively low, hiring activity has clearly cooled from the pace seen in recent years. For employers, success in 2026 will likely depend more on strategic workforce planning—aligning talent investments to critical roles, improving hiring efficiency and offering value propositions that resonate with a more cautious and stability-focused workforce. 

PeopleScout Jobs Report Analysis – November 2025

Posted on by lloftus

Following the federal government shutdown, the Bureau of Labor Statistics has released a combined October/November 2025 employment report, offering an unusually fragmented snapshot of the labor market. Abbreviated October payroll data showed a loss of 105,000 jobs, driven largely by federal government employment declines tied to earlier buyouts and administrative changes. November data—collected after the shutdown ended—showed a rebound of 64,000 jobs, modestly exceeding expectations but still consistent with a labor market that has seen little net growth since spring. The unemployment rate rose to 4.6%, its highest level in four years, underscoring ongoing cooling beneath the headline recovery. Healthcare and construction again led job creation, while Transportation & Warehousing, Manufacturing and Leisure & Hospitality continued to contract. 

The analysis below reflects the November 2025 data shared in the latest BLS report.

 The Numbers 

64,000: U.S. employers added 64,000 jobs in November. 
4.6%: The unemployment rose slightly to 4.6%. 
3.5%: Wages rose 3.5% over the past year.  

The Good 

November’s rebound in payroll growth suggests the labor market retains some underlying resilience despite significant disruption. Nonfarm payrolls rose by 64,000—above expectations—led overwhelmingly by Healthcare, which added 46,000 jobs and accounted for more than 70% of total gains. Construction also posted a solid increase (+28,000), reflecting continued demand for nonresidential projects, while Social Assistance added 18,000 jobs. Wage growth, though slowing, remains positive, with average hourly earnings up 3.5% year-over-year—still outpacing inflation. Labor force participation held steady at 62.5%, and average weekly hours were largely unchanged. 

The Bad 

Taken together, October and November reinforce the picture of a labor market recalibrating after several years of unusually strong growth. October’s 105,000 job loss—one of only a handful of negative payroll months in the past two years—highlights the extent to which government employment declines are weighing on overall figures. Even with November’s rebound, total payroll growth has shown little net change since April. The unemployment rate climbed to 4.6%, up from 4.4% in September, while broader measures of underemployment rose to 8.7%, reflecting an increase in workers holding part-time roles for economic reasons. Industry weakness remains, with Transportation & Warehousing, Manufacturing and Leisure & Hospitality continuing to shed jobs. Revisions to prior months were also negative, further dampening the apparent strength of recent hiring. 

The Unknown 

The extended government shutdown has temporarily limited the clarity of near-term labor market signals. At the same time, policymakers are navigating a delicate balance: job growth is slowing, unemployment is rising and wage pressures are easing, yet inflation remains a concern. The Federal Reserve has already cut interest rates multiple times but has signaled a higher bar for additional easing, particularly given data disruptions. Upcoming benchmark revisions and methodological changes scheduled for early 2026 may further reshape the employment picture. 

Conclusion 

The latest jobs report paints a labor market that is uneven and in transition, shaped by both structural adjustments and short-term disruption. While November’s modest rebound offers some reassurance, it does little to offset October’s sharp losses or the broader trend of stalled job growth. With unemployment edging higher and hiring concentrated in a narrower set of sectors, employers are operating in an uncertain environment. As more complete data becomes available in early 2026, organizations should remain cautious—focusing on workforce flexibility and targeted talent investments to stay prepared for further shifts in economic conditions. 

PeopleScout Jobs Report Analysis – September 2025

Posted on by lloftus

After being delayed more than six weeks due to the federal government shutdown, the September 2025 jobs report was released—showing U.S. employers added 119,000 jobs. This marked a clear improvement from August’s slight payroll decline but is still consistent with a labor market that has cooled from its pace of the past two years. The unemployment rate edged up to 4.4%, its highest level in roughly four years. Healthcare continued to drive hiring, with Leisure & Hospitality and Retail also seeing significant gains, while Transportation & Warehousing, Manufacturing and Federal Government employment declined. Wage growth remained solid, with average hourly earnings up 3.8% year-over-year.

The Numbers 

  • 119,000: U.S. employers added 119,000 jobs in September. 
  • 4.4%: The unemployment rose slightly to 4.4%. 
  • 3.8%: Wages rose 3.8% over the past year.  

The Good 

September’s stronger-than-expected payroll gain suggests the labor market retained more momentum heading into the shutdown than many had anticipated. Education & Health Services once again led job creation, adding 59,000 positions, while Leisure & Hospitality payrolls rose by 47,000. Retail also contributed modestly, adding nearly 14,000 jobs. Wage growth of 3.8% year-over-year remains comfortably above pre-pandemic norms and continues to outpace inflation. The average workweek edged up, and overall labor force participation rose to 62.4%, with the increase driven entirely by women in their prime working years, who are nearing last year’s record participation levels. 

The Bad 

Despite the surprise in headline job growth, the broader picture remains one of a sluggish labor market. Total nonfarm payrolls have shown little net change since April, and August was revised to show a loss of 4,000 jobs, marking the second monthly decline this year. The unemployment rate rose to 4.4%, the highest since the later stages of the pandemic recovery, indicating that job creation is not fully keeping pace with labor force growth. Sector weakness was evident across Transportation & Warehousing (-25,000), Manufacturing (-6,000) and Professional & Business Services (-20,000). While initial claims for unemployment benefits remain low, continuing claims have been drifting higher, suggesting that displaced workers may be taking longer to find new roles. 

The Unknown 

September’s report captures labor market conditions prior to and during a record-long government shutdown that delayed data collection and disrupted normal economic activity. With the October report canceled and October and November payrolls to be combined and released in mid-December, policymakers, employers and investors are operating with an unusually limited and lagged view of labor trends. At the same time, employers continue to face a complex environment including elevated inflation, tighter financial conditions, shifting trade relationships and changes in immigration and industrial policies. The rise in the unemployment rate will be closely watched by the Federal Reserve as it weighs whether to approve a third consecutive interest rate cut at its December meeting, and without another employment report before that decision, interpretations of September’s mixed signals will take on outsized importance. 

Conclusion 

The September 2025 jobs report portrays a labor market that is steady but subdued. The extended government shutdown has further complicated the picture by delaying data, canceling October’s report and compressing the flow of information policymakers rely on. Against this backdrop, organizations should prioritize workforce planning, scenario modeling and flexible talent strategies—balancing near-term caution with the need to be ready for shifts in demand once the policy outlook and economic data become clearer later in the year.

Why Small and Medium Enterprises Should Consider Recruitment Process Outsourcing

Posted on by akessler

Small and medium-sized enterprises (SMEs) face unique challenges in attracting and retaining top talent. Limited resources, lack of dedicated recruitment teams, and the need for agility in hiring can often put smaller businesses at a disadvantage.  

That’s where Recruitment Process Outsourcing (RPO) comes in— a versatile strategy that businesses of all sizes can leverage to their advantage.  

Yes, we’re here to dispel the misconception that RPO is a luxury reserved for large enterprises with deep pockets. By offering scalable, expert-driven talent solutions, RPO providers are leveling the playing field. They bring enterprise-grade hiring practices within reach of SMEs, allowing them to compete for talent on par with larger corporations.  

Let’s explore how RPO is reshaping the talent landscape for businesses of all sizes. 

The Shifting Landscape of RPO 

Data from Everest Group’s 2024 State of the Market report highlights a striking trend: the proportion of new RPO deals involving smaller organizations has increased in recent years with both midsized (35%) and small (34%) buyers over taking large (31%) buyers. This significant shift underscores the growing recognition among SMEs of RPO’s value in scaling hiring efforts and navigating an unpredictable labor market. 

Leading providers are offering more flexible, short-term solutions designed to address immediate needs without the lengthy implementation periods traditionally associated with RPO. For instance, modular solutions like PeopleScout’s Amplifiers™ and our ready-to-go RPO solution, Accelerate™, allow smaller enterprises to harness the power of RPO faster. These innovations are making RPO more accessible and responsive to the dynamic needs of growing businesses, further democratizing access to professional recruitment expertise. 

Learn more about our talent solutions for small to mid-sized companies.

Debunking the “Big Business Only” Myth: Why SMEs are Embracing RPO 

The notion that RPO is exclusive to large enterprises is a myth. In reality, RPO can be particularly effective for SMEs experiencing rapid growth or expanding their geographic reach. Here’s why: 

  • Unmatched Expertise: RPO providers bring a wealth of experience gathered from working with diverse clients across many industries. Smaller companies gain access to seasoned recruiters, best practices and industry insights to help them compete for top talent. Plus, an RPO partner will help you develop and refine your recruitment processes, setting a foundation for sustainable growth. 
  • Scalability and Flexibility: As you scale, an RPO solution will adapt to your fluctuating talent needs. Whether you need to ramp up hiring quickly for a new product launch or scale down during slower periods, RPO offers an agility that you can’t replicate in-house.  
  • Time-Saving Efficiency: By taking on time-consuming tasks like sourcing, interview scheduling and candidate management, RPO partners free up your internal teams—from HR to hiring managers—to focus on strategic priorities and business objectives.  
  • Cost Management: RPO streamlines processes and leverages cutting-edge recruitment technologies, often resulting in significant cost savings and more manageable recruitment spend compared to maintaining a full-time in-house team or relying on traditional staffing agencies.  
  • Access to the Latest Technology: Speaking of technology, leading RPOs have their finger on the pulse of the ever-expanding talent tech marketplace. Look for a partner who offers technology consulting to advise on how to capitalize on your existing recruitment tech stack or to recommend new tools to introduce more automation, analytics and innovation for better candidate experience.  
  • Enhanced Candidate Experience: RPO providers excel at creating a memorable candidate journey, from initial contact through onboarding, ensuring a positive experience that reflects well on your brand.  

Is RPO Right for Your Business? 

If you’re a small or medium-sized business looking to scale, improve your hiring processes, or simply manage recruitment more effectively, RPO is worth considering. The key is finding an RPO partner that will take the time to understand your unique needs and will tailor a solution to align with your company’s goals and culture. 

PeopleScout’s RPO solutions provide value for businesses of all sizes. We’re not just focused on filling positions; we’re here to help you build a talent acquisition strategy that can drive your business forward. Whether you’re a startup looking to make your first key hires or a mid-sized company aiming to optimize your recruitment process, PeopleScout RPO might be just what you need. Let’s connect! 

The UK’s Workforce Balancing Act: Ageing Populations and Emerging Roles

Posted on by lloftus

By James Chorley, Talent Solutions Director, RPO

I recently wrote about what our children will do in the future, but what about us?! We all know about the technological disruption that has exploded onto the scene. We’ve seen the data on the number of inactive people at working age, but I didn’t fully appreciate the unprecedented demographic change we are about to see.

While much attention has been given to the rise of automation, artificial intelligence (AI), and the creation of “jobs that don’t exist yet,” an equally pressing challenge looms in the background: the UK’s declining birthrate and ageing population.

Together, these forces are reshaping the labour market, creating an urgent need for new skills and a more agile approach to workforce development.

This article explores the critical skills shortages the UK faces today and anticipates the skills required for the future. It also examines how the intertwining challenges of an ageing workforce and emerging roles demand nothing less than a revolution in the way we think about education, training, and employment.

The Demographic Imperative: Fewer Hands, Greater Need

The demographic data is stark. The fertility rate in England and Wales dropped to a record low of 1.44 children per woman in 2023, far below the replacement level of 2.1. Meanwhile, people are living longer, leading to a rapidly ageing population. By 2032, the number of children in the UK is projected to decline by 6.4%, while the population of pensionable age will grow by nearly 14%. The number of people aged 85 and over will almost double by mid-2047.

This demographic shift has profound implications for the workforce. A smaller proportion of younger workers will be available to support an increasing number of retirees, creating economic and social strain. The old-age dependency ratio—the number of working-age people supporting each retiree—is set to climb significantly. While more older workers are staying in the labour market (with record employment levels for those aged 65 and over), this is not enough to offset the broader decline in workforce numbers.

For the UK, this isn’t just an economic inconvenience; it’s a national necessity to address skill shortages and reimagine workforce participation across all age groups.

The Current Crisis: Skills in Critical Shortage

Even without demographic pressures, the UK is already grappling with widespread skills gaps. Almost 70% of businesses reported recruitment difficulties, with chronic shortages in high-growth sectors like digital technology, advanced manufacturing, health and social care, education, and construction.

Specific Skills in Severe Shortage:

These shortages are not just a recruitment issue; they also reveal a deeper problem within the existing workforce. Over 1.7 million employees were reported as not being fully proficient in their roles.

The Horizon: Skills That Don’t Exist Yet

The rise of automation and emerging technologies isn’t just transforming jobs—it’s creating entirely new ones. From AI specialists to sustainability experts, future roles will demand a fusion of technical expertise and human-centric skills.

Emerging Roles:

  • AI and Machine Learning Specialists
  • Cybersecurity Analysts
  • Sustainability and Environmental Specialists
  • Data Analysts and Data Scientists
  • Robotics Engineers
  • Blockchain Developers

Transforming Traditional Roles:

  • Healthcare professionals must adapt to digital patient management.
  • Teachers will need to integrate technology into learning.
  • Manufacturing workers will oversee automated systems.

The common thread across these roles is the demand for adaptability, advanced technical knowledge, and the ability to learn continuously.

The Foundational Enablers: Essential Cross-Cutting Skills

As automation takes over routine tasks, uniquely human skills will become the labour market’s most valuable currency. The skills most in demand by 2035 include:

  • Digital Literacy: A baseline requirement for all workers.
  • Critical Thinking: Essential for solving complex, non-routine problems.
  • Adaptability and Lifelong Learning: Workers must expect 39% of their skills to become outdated by 2030.
  • Emotional Intelligence: Empathy, communication, and teamwork will distinguish human workers from machines.

Strategies for a Resilient Workforce

To address these challenges, Talent and TA leaders must adopt systemic solutions to future proof Talent within their sectors:

  • Agile Education and Training: From shorter, modular apprenticeships to investment in STEM education, training must evolve to keep pace with technological advancements.
  • Lifelong Learning: Employers must reverse the trend of declining investment in training, offering continuous upskilling opportunities.
  • Holistic Workforce Support: Flexible work environments and improved careers guidance can help attract underrepresented groups and retain older workers.
  • Strategic Sponsorship: Simplified worker visa regimes can fill immediate gaps while longer-term solutions take shape.

Conclusion: Thinking Differently About the Workforce

Solving the UK’s workforce challenges means rethinking who we hire, how we train, and what we value in the labour market. As skill shortages deepen and demographic pressures mount, we must start thinking differently about the jobs that will remain in severe shortage over the coming decades.

Embrace Older Generations

Older workers represent an untapped reservoir of experience and talent. By creating flexible work environments, addressing age discrimination, and investing in training for older generations, businesses can benefit from their expertise and keep them active in the workforce.

Accelerate Apprenticeships for All Ages

The traditional model of apprenticeships must evolve. Short, sharp apprenticeships designed for workers of all ages and experiences can rapidly fill skill gaps in critical areas like digital, green energy, and advanced manufacturing. These programs should be modular, flexible, and responsive to emerging technologies.

Foster Lifelong Learning

The future workforce must be equipped to adapt continuously. Employers, educators, and policymakers must work together to make lifelong learning accessible, affordable, and relevant. Programs like Skills Bootcamps offer a promising model for accelerated training in high-demand fields.

The UK’s ability to thrive in the face of demographic decline and technological disruption hinges on its willingness to embrace bold, creative solutions. By fostering a culture of inclusion, agility, and continuous learning, we can build a resilient workforce that bridges generations, adapts to new challenges, and excels in emerging roles.

The balancing act will not be easy, but the rewards—economic growth, social cohesion, and future prosperity—are well worth the effort. It’s time to act, rethink, and reimagine what the workforce can be.

[On Demand] The AI-Enabled Graduate: Mastering Gen AI’s Impact on Early Careers Recruitment

Posted on by akessler

[Webinar On-Demand] The AI-Enabled Graduate:

Mastering Gen AI’s Impact on Early Careers Recruitment

The early careers recruitment landscape has been fundamentally transformed. While organisations debate whether AI will impact hiring, early career job seekers are already using generative AI in their job search. This isn’t a future trend; it’s today’s reality.

Is your recruitment strategy ready for the AI-enabled graduate?

Join PeopleScout’s Head of Assessment Design, Amanda Callen, and Talent Solutions Director, James Chorley, for a data-driven session that reveals PeopleScout’s exclusive research on how Generation AI is strategically transforming early careers recruitment—and what employers must do to stay ahead.

Discover our findings that show how early career candidates are using AI throughout their recruitment journey. This isn’t speculation—it’s comprehensive research that shows why employers need to move beyond guesswork and implement proactive, transparent and adaptive recruitment strategies.

In this webinar, we’ll cover:

  • The scale and strategic nature of Gen AI adoption among early career job seekers
  • Why early careers recruitment needs to adapt to stay on top of rapid technological advancements
  • Why transparent communication is essential to build trust with the AI-native generation
  • Essential steps to review and strengthen your assessment processes against AI vulnerabilities
  • How to implement proactive strategies to embrace AI-enabled candidates

Plus you’ll receive:

  • Exclusive access to our research report, Gen AI Meets Gen Z
  • Assessment vulnerability checklist

Recruitment Marketing Analytics: From Gut Instinct to Data Intelligence  

Posted on by akessler

The emergence of data-driven recruitment has fundamentally transformed how forward-thinking organizations approach talent acquisition. Recruitment marketing analytics isn’t just about tracking basic metrics like application volumes or cost-per-hire—it’s about developing deep insights into candidate behavior, optimizing every stage of the talent journey, and making strategic decisions backed by concrete evidence rather than assumptions. 

Leveraging the data generated through recruitment marketing represents more than just operational improvement—it’s a strategic evolution that enables talent acquisition teams to operate with the sophistication and accountability of modern marketing departments.  

Recruitment Marketing Analytics Fundamentals 

Modern CRM systems provide critical insights through talent pool composition analytics, engagement metrics, campaign performance measurement and conversion measurement across the candidate journey. But a recruitment analytics platform goes deeper, offering a single source of truth for understanding your end-to-end recruitment process. 

Talent acquisition leaders are increasingly adopting sophisticated data-driven approaches to optimize strategies, allocate resources effectively and demonstrate clear ROI to organizational stakeholders. Look for an analytics platform with interactive dashboards that visually monitor trends and identify opportunities, connecting recruitment analytics with talent market intelligence. 

Key Performance Indicators Across the Candidate Journey 

Awareness: 

  • Career site metrics: Unique visitors, source attribution, and content engagement 
  • Social media engagement: Follower growth, share of voice, and engagement rates 

Consideration: 

  • Talent community growth: New registrations and nurture campaign engagement 
  • Application intent: Job description views, application starts, and abandoned rates 
  • Engagement quality: Repeat visits and time spent exploring opportunities 

Application: 

  • Conversion metrics: Application completion rates and cost-per-application 
  • Candidate quality: Skills match percentage and diversity of applicant pool 
  • Efficiency: Time to qualified candidate and recruitment marketing cost-per-hire 

Cross-Funnel Metrics: 

  • Candidate experience: Satisfaction surveys at various touchpoints 
  • Market responsiveness: Time-to-fill by position and location 

Advanced Analytics 

Organizations that move beyond basic reporting can unlock deeper insights to transform recruitment marketing effectiveness. 

  • Cohort Analysis: Track candidate groups over time to identify behavior patterns and evaluate the long-term impact of marketing initiatives. 
  • Funnel Analysis: Identify conversion bottlenecks, compare performance across candidate segments, and evaluate stage-by-stage conversion efficiency to optimize the candidate journey. 
  • Channel Effectiveness Analysis: Compare cross-channel performance, calculate return on investment by channel, and find the optimal channel mix for improved budget allocation. 

Predictive Analytics and AI Applications 

Predictive analytics leverages artificial intelligence (AI) and machine learning to highlight insights, anomalies and predictions, including: 

  • Candidate conversion predictions
  • Channel performance forecasting 
  • Hiring timeline optimization 
  • Sourcing strategy recommendations 
  • Budget allocation optimization 

These capabilities help talent teams understand behaviors of top talent and predict factors such as cultural fit, willingness to change companies and future tenure potential—helping to support confident recruitment marketing budgets. 

Building a Culture of Data-Driven Decision Making 

Successfully implementing recruitment marketing analytics requires more than just sophisticated analytics tools—it demands a fundamental shift in how talent acquisition teams approach strategy development and performance evaluation. This cultural transformation involves moving from reactive, intuition-based decisions to proactive, evidence-based strategies. 

The most successful organizations establish regular data review cycles where recruitment teams analyze performance metrics, identify trends, and adjust strategies accordingly. They create accountability frameworks that tie recruitment marketing decisions to measurable outcomes, and they invest in developing analytical capabilities across their talent acquisition teams. 

Equally important is establishing clear data governance practices that ensure accuracy, consistency, and actionable insights. This includes standardizing data collection methods, implementing quality control processes, and creating accessible dashboards that enable real-time monitoring and decision-making. 

Recruitment Marketing Analytics as a Revenue Driver 

Data-driven recruitment marketing transforms talent acquisition from a cost center focused on filling positions to a strategic function that drives measurable business value. When recruitment teams can demonstrate clear connections between their marketing investments and outcomes like improved candidate quality, faster time-to-hire, and enhanced employer brand perception, they gain credibility and resources to execute increasingly sophisticated strategies. 

By adopting recruitment marketing analytics, organizations can optimize recruitment marketing budgets, improve candidate quality, reduce time-to-hire and demonstrate clear ROI to leadership—creating sustainable competitive advantages in the global talent marketplace. The future belongs to those who can transform data into actionable insights and use those insights to build more effective, efficient and candidate-centric recruitment experiences.