11 March 2024 — Well-performing labour markets depend on effective job matching processes. All other things being equal, an efficient job matching system will connect people with vacancies quickly and lead to higher employment. On the other hand, if it takes too long to match people with jobs, unemployment will be higher, incomes will be lower, and economic growth will suffer.
Additionally, the quality of job matches is crucial, as poor matching incurs both economic and social costs. Employing less productive workers in certain roles diminishes overall productivity. Having less productive workers in a job lowers productivity.
Job matching can, however, be costly, time-consuming, and lead to market failure due to asymmetric and imperfect information. Artificial Intelligence (AI) offers potential for improving the speed and quality of job matching.
This paper surveys the state of AI in recruitment and job matching. The primary source for this paper is a 2023 Organisation for Economic Co-operation and Development (OECD) paper by Broecke.
Read the report, ‘The Rise of the Machines’
Malcolm Cook is an economist with extensive experience in labor market policy and analysis. Malcolm was a Lecturer in Economics at the University of New England and Southern Cross University and has authored over a dozen refereed publications on labor statistics, Australian economic history, economic policy, and health economics. After leaving academia Malcolm worked as an employment policy adviser in the Australian Public Service, contributing to the development of Australia’s employment services model, including Job Network, Job Services Australia, jobactive and the Remote Jobs and Communities Program. He now works with Angus Knight researching labor market trends and advising on employment policies.
