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As AI Surges In Recruiting, New Report Shows Ghosting, Skills Gaps Keep Employers On Edge

Nearly 30% of job seekers have used AI to draft or tailor their resumes or cover letters, but employers are wary of fraudulent or AI-generated applications and inauthentic candidate profiles.

Allwork.Space News TeambyAllwork.Space News Team
September 3, 2025
in News
Reading Time: 4 mins read
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As AI Surges In Recruiting, New Report Shows Ghosting, Skills Gaps Keep Employers On Edge

Recruiters are feeling the strain of a persistent skills gap and economic uncertainty. Nearly 60% of employers say it’s difficult to find qualified candidates, and over 54% expect the skills gap to affect hiring in the coming year.

There is a significant disconnect in the hiring process; more than 59% of candidates said they often hear nothing after applying to jobs, while over 50% of employers report being ghosted by candidates — either through no-shows or dropped communications, according to iHire’s 2025 State of Online Recruiting Report. The report offers a detailed look at how employers and job seekers are navigating a complex hiring environment, where technology adoption, economic pressures, and changing expectations continue to redefine recruiting strategies.

Job Boards Remain Relevant, But Only If They Evolve

Despite the high-profile decline of job board giants like Monster and CareerBuilder, job boards remain a vital tool in recruitment. According to the report, 68.6% of employers conduct most or all of their hiring through job boards, and 79.5% of job seekers still rely on them to find jobs.

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However, employers are no longer satisfied with basic job postings. They want platforms that offer advanced functionality — such as messaging tools, pre-screening questions, skills assessments, interview scheduling, and integrations with applicant tracking systems (ATS).

Key Features Employers Want in Job Boards:

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  • Email/text messaging with candidates (47.1%)
  • Pre-screening and filtering tools (44.6%)
  • Skills assessments (28.4%)
  • ATS integrations and job ad optimization

At the same time, many employers are diversifying their recruitment strategies. 71.3% use employee referrals, 49.5% use their company website, and nearly 46% rely on LinkedIn and other professional networking platforms. Job seekers also cast a wide net, tapping into company websites, search engines, and personal networks.

AI Use in Recruiting Grows Dramatically, Alongside New Risks

Artificial intelligence is quickly becoming a fixture in recruitment. In 2025, 25.9% of employers report using AI — a sharp increase from 14.7% in 2024 and just 4.9% in 2023. That’s a 428% increase in two years.

Employers are using AI to:

  • Write job ads (73.0%)
  • Compose and send messages to candidates (68.6%)
  • Screen resumes and applications (32.1%)
  • Conduct interviews (16.1%)

Job seekers are also using AI more frequently. Nearly 30% have used AI to draft or tailor their resumes or cover letters, and 6.9% have experimented with tools like ChatGPT for job searches.

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But concerns persist. Employers are wary of fraudulent or AI-generated applications and inauthentic candidate profiles, while candidates fear job displacement and reduced human oversight in hiring decisions.

Talent Shortages Push Employers to Explore Alternative Hiring Strategies

Recruiters are feeling the strain of a persistent skills gap and economic uncertainty. Nearly 60% of employers say it’s difficult to find qualified candidates, and over 54% expect the skills gap to affect hiring in the coming year.

In response, companies are turning inward and embracing creative workforce strategies:

  • 42.3% promoted or moved existing staff
  • 30.8% rehired former employees (“boomerang hires”)
  • 27.8% invested in upskilling or reskilling current workers

These approaches not only address immediate talent shortages but also foster long-term workforce stability in a market still recovering from economic volatility.

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Upskilling and an Aging Workforce Are Changing Workforce Planning

With an aging labor pool and a rise in post-retirement job seekers, upskilling has become essential. Nearly 30% of employers say the aging workforce will affect hiring in the next year, and 10.1% of job seekers reported re-entering the workforce after retirement.

However, age discrimination remains a concern. Over 28% of older job seekers say ageism is a challenge in their job search, and 48% expect it to affect their careers going forward. Employers are encouraged to use tools like resume anonymization to reduce bias and create more inclusive hiring practices.

Stronger Employer Branding Is Now Critical for Talent Attraction

Candidates are increasingly selective about where they apply, and vague or poorly written job ads are turning them away. 60.5% want to see hiring timelines, 57.1% expect salary ranges, and nearly 41% want recruiter contact information included in postings.

Candidates also cited fake job ads as a growing concern, ranking just behind ghosting. Clear, detailed, and transparent postings (possibly written with AI assistance) can set employers apart in a crowded job market.

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Hiring Is Up, But Challenges Remain

Despite a cooling labor market, 80% of employers said they were actively hiring as of July 2025, which is up from 75.6% the previous year. Still, economic caution lingers, with 11.1% implementing hiring freezes and 8.9% cutting budgets.

Top recruiting challenges in 2025 include:

  • Too many unqualified applicants (59.7%)
  • Candidate ghosting (50.7%)
  • Job board costs (50.3%)

Key Takeaways for 2025 AI in Recruiting Strategy

AI is now essential in recruiting, driving job boards to offer more than just listings. Clear communication helps reduce ghosting and improve the candidate experience. To address talent shortages, employers focus more on upskilling, internal moves, and rehiring former staff. Transparent job posts play a crucial role in attracting qualified candidates.

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Source: iHire
Tags: Career GrowthLeadershipNorth AmericaWorkforce
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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