The 2025 job market has become a nightmare for job seekers across all generations, with AI-powered résumé screening tools emerging as a major frustration point in what many are calling the “Great Freeze.” Business Insider interviewed dozens of unemployed workers, some jobless for over a year, who report that AI filters are screening their résumés before human recruiters ever see them, contributing to an unprecedented hiring slowdown.
Matthew English, an accounting professional in his 60s from Alabama, has applied for hundreds of jobs since October 2024 without securing a full-time offer. He’s depleted his life savings—money intended for retirement—just to survive. The situation is so dire that he couldn’t afford Christmas gifts for his family last year. “I believe the hiring system is broken,” English said.
The numbers paint a grim picture: US employers have announced 1.17 million job cuts in 2025, the highest since 2020. The New York Fed’s survey shows that workers’ confidence in finding a new job within three months hit its lowest level since the survey began in 2013. Kory Kantenga, head of economics for the Americas at LinkedIn, described 2025’s labor market as having “low momentum,” noting that “the cumulative effect of three years of slowdown” explains why job seekers feel this might be the worst market they’ve experienced.
AI-assisted job applications have created a perfect storm: while applicants use AI to submit more applications, employers use AI screening tools to filter them out. According to Greenhouse, a hiring software provider, the average job posting now receives 242 applications—nearly three times the number in 2017. This deluge makes it nearly impossible for qualified candidates to stand out, even with strong credentials.
Hilary Nordland, a 50-something marketing professional from Minnesota, has faced interviews canceled the same day, roles suddenly put on hold, and HR representatives fired before scheduling meetings. She’s resorted to donating plasma and tapping retirement savings to survive. Heather Driscoll, a healthcare management professional in Colorado, described the emotional toll: “The amount of time, research, enthusiasm—the dressing up, hair, makeup—just to sit on a Zoom call and get no feedback or rejection, is insane.”
Some job seekers have abandoned their career aspirations entirely. Kenneth Ferraro quit trucking at 40 to earn a political science degree from NYU, hoping for a public service career. After struggling to find work and accumulating over $100,000 in student debt, he returned to trucking, suspecting age discrimination played a role.
Despite the challenges, some have found success through networking. Alexander Valen, laid off from Accenture after two decades of experience, landed a project manager role at Toptal paying $80-100 per hour after nearly two years of searching—but only after someone in his network made a recommendation, bypassing AI screening systems entirely.
Key Quotes
I believe the hiring system is broken. I have about drained my life’s savings. Money that you’re expecting to use in retirement is now being used to survive.
Matthew English, an accounting professional in his 60s who has applied for hundreds of jobs since October 2024, describes the financial devastation of prolonged unemployment in an AI-filtered job market where his applications never reach human reviewers.
This job market is terrifying. It’s a black hole that makes you question everything—and I don’t see a clear path through.
Hilary Nordland, a marketing professional in her 50s, captures the psychological toll of job searching in 2025, where AI screening tools and sudden interview cancellations create an unpredictable and demoralizing experience for experienced professionals.
The cumulative effect of three years of slowdown—it’s completely understandable why they feel like this might be the worst labor market they’ve ever been in.
Kory Kantenga, head of economics for the Americas at LinkedIn, validates job seekers’ frustrations, acknowledging that the combination of AI-driven application processes and hiring slowdowns has created uniquely challenging conditions.
The search becomes far less discouraging when you treat it as an opportunity to grow rather than a verdict on your worth. And in a market this competitive, networking isn’t optional—it’s the force multiplier that ultimately led me to my role.
Alexander Valen, who successfully landed a role after nearly two years of searching, emphasizes that personal networking—which bypasses AI screening systems—has become essential for breaking through automated filters and reaching human decision-makers.
Our Take
This article exposes a fundamental flaw in how companies are deploying AI hiring tools: optimization for efficiency is creating systemic inefficiency. When AI screening filters out qualified candidates before human review, companies aren’t saving time—they’re missing talent and prolonging searches. The tripling of applications per posting since 2017 suggests an AI arms race where both sides lose.
The most revealing insight is that networking—the human workaround to AI gatekeepers—has become mandatory rather than optional. Alexander Valen’s success came through personal connections that bypassed automated systems entirely. This suggests AI hiring tools may be creating a two-tier system: those with networks who can circumvent AI screening, and those without who remain trapped in the “black hole” Nordland describes.
The broader lesson for AI deployment is clear: automation without accountability produces broken systems. As AI screening becomes ubiquitous across hiring, companies need transparency about what these algorithms filter out and whether they’re actually improving hiring outcomes or simply creating new barriers.
Why This Matters
This story reveals a critical tension in the AI revolution: while artificial intelligence promises efficiency, AI-powered hiring tools are creating unprecedented barriers between qualified workers and employment opportunities. The widespread use of automated résumé screening systems means that human recruiters may never see applications from experienced professionals, fundamentally breaking the hiring process.
The implications extend beyond individual hardship. When AI filters systematically screen out qualified candidates, companies miss talent while workers exhaust savings and abandon career goals. This represents a market failure driven by AI adoption—technology meant to improve hiring is instead creating inefficiencies and human costs.
The story also highlights how AI is reshaping labor market dynamics in unexpected ways. Job seekers use AI to generate more applications, while employers deploy AI to filter them out, creating an arms race that benefits neither party. With 242 applications per posting—triple the 2017 rate—AI screening has become gatekeepers that may be programmed with biases around age, career gaps, or non-traditional backgrounds.
As businesses navigate AI integration across operations, this hiring crisis serves as a cautionary tale about deploying AI systems without adequate human oversight. The “Great Freeze” demonstrates that AI optimization can produce suboptimal real-world outcomes, particularly when human judgment is removed from critical decisions.
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Source: https://www.businessinsider.com/job-market-find-work-employment-hiring-slowdown-careers-2025-12