LinkedIn says hiring is down 20% since 2022, not because of AI

In short: LinkedIn says hiring has dropped about 20% since 2022, and it says higher interest rates are a bigger reason than AI so far.

What's going on

LinkedIn executive Blake Lawit said the company’s data shows hiring is down around 20% compared with 2022. Lawit is LinkedIn’s Chief Global Affairs and Legal Officer, and he spoke at Semafor’s World Economy summit.

Lawit said LinkedIn has not seen clear signs that AI is the main cause of the hiring slowdown. He pointed to LinkedIn’s “economic graph,” which is the company’s large set of data about members, companies, jobs, and skills. Think of it like a very large, always-updated scoreboard that tracks what employers are asking for and what job seekers are offering.

Instead, Lawit said the slowdown appears more connected to rising interest rates. Higher interest rates can make borrowing money more expensive, which can lead companies to be more cautious about growing payrolls.

He also said LinkedIn’s data does not show that young adults trying to get their first jobs are being hit harder than people later in their careers. In other words, hiring is down, but it is not especially down for entry-level workers, based on what LinkedIn is seeing.

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Lawit said this could change. He warned that the skills needed for the average job have already changed by about 25% over the last several years, and LinkedIn expects that number could reach 70% by 2030 as AI tools spread. That means even if someone keeps the same job title, the day-to-day work may shift, like a familiar route getting new detours over time.

Source: TechCrunch AI