How the ‘AI doom loop’ is trapping job seekers and employers – Baton Rouge Business Report

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The 2026 job market has become increasingly difficult for both job seekers and employers, with job openings slowing, applications per position rising and many candidates reporting that their applications receive no response, Fortune reports.

Indeed CEO Hisayuki Idekoba describes the hiring process as a “vicious cycle,” as employers face enormous applicant pools increasingly filled with AI-generated applications and fraudulent candidates, while recruiting teams have shrunk. 

Greenhouse data shows applications per job increased 111% between 2022 and 2025, while recruiters per organization fell 56%, contributing to what Greenhouse CEO Daniel Chait calls an “AI doom loop” in which employers and candidates use AI to address their respective challenges but ultimately add complexity to the hiring process. 

AI is being used by recruiters to manage application volume and match candidates with jobs, while applicants use it to tailor resumes and write cover letters, making it harder for employers to distinguish serious, qualified candidates. Chait advises job seekers to look beyond highly visible companies that attract intense competition and consider less well-known employers. 

Experts also say relying solely on online applications may not be enough. Business professor Scott Galloway has emphasized the value of internal advocates and professional networks, while Netskope CEO Sanjay Beri says networking can uncover opportunities that are never publicly advertised.

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