Dive Brief:
- Revenue is "roaring back" for recruiting websites — one sector that saw massive losses when the coronavirus led many employers to adopt measures such as hiring freezes, according to a May 5 report from the AIM Group. "Companies are hiring again. It's that simple," Chris Russell of RecTech Media said in the report.
- Still, the gains aren't necessarily here to stay, according to the report. Their staying power will depend on whether the U.S. can avoid, for example, variant spikes that lead to additional lockdowns, it said.
- Job sites also still have to contend with other threats, namely Google and Facebook's recent interest in the job advertising space. This poses an "existential threat" to the status quo, according to the AIM Group. "Any company that is facing meaningful competition from Google and Facebook has to assess its future carefully, and react appropriately," said Peter Zollman, the company's founding principal, in a statement.
Dive Insight:
The report's findings echo what others have shared. Job site Indeed, for example, said last May that postings on its site were down nearly 40% from the previous year, with particularly severe drops in industries such hospitality and tourism.
Now, Indeed reports that postings are roughly 22% above their Feb. 1, 2020, position — the company's "pre-pandemic baseline." Notably, listings for in-person sectors such as cleaning and sanitation have accelerated recently, Indeed Hiring Lab Chief Economist Jed Kolko said in an April 27 update. But that didn't signal the full recovery of the labor market, he explained at the time; measures like payroll employment and the unemployment rate also must show improvement.
And as the AIM Group noted, recruiting sites face threats beyond short-term hiring freezes. Aside from household names making inroads in the space, applicant and employer expectations are shifting. Candidates are increasingly applying for jobs from their phones, research shows, requiring that vendors and employers ensure a positive mobile experience. And demand for artificial intelligence in recruiting is accelerating, experts previously told HR Dive, signaling a need for vendors to deliver convenience and efficiency.
