Applying For Your Next Job May Be an Automated Nightmare

If you think looking for a job is already daunting, anxiety-riddled, and unpleasant, just wait until the algorithms take over the hiring process. When they do, a newfangled ‘digital recruiter’ like VCV, which just received $1.7 million in early investment, hopes it will look something like this: First, a search bot will be used to scan CVs by the thousands, yours presumably among them. If it’s picked out of the haystack, you will be contacted by a chatbot. Over SMS, the bot will set an appointment for a phone interview, which will be conducted by an automated system enabled by voice recognition AI. Next, the system will ask you, the applicant, to record video responses to a set of predetermined interview questions. Finally, the program can use facial recognition and predictive analytics to complete the screening, algorithmically determining whether the nervousness, mood, and behavior patterns you exhibit make you a fit for the company. If you pass all that, then you will be recommended for an in-person job interview.

[…] VCV, which did not respond to a request for comment, is far from alone here. A growing suite of startups is pitching AI-driven recruitment services, promising to save corporations millions of dollars throughout the hiring process by reducing overhead, to pluck more ideal candidates out of obscurity, and to reduce bias in the hiring process. Most offer little to no evidence of how they actually do so. VCV’s much-larger competitor, HireVue, which has raked in a staggering $93 million in funding and is backed by top-tier Silicon Valley venture capital firms like Sequoia, is hocking many of the same services. It counts 700 companies as its clients, including, it says, Urban Outfitters, Intel, Honeywell, and Unilever. AllyO, which was founded in 2015, and “utilizes deep workflow conversational AI to fully automate end to end recruiting workflow” has $19 million in backing.

Silicon Valley’s dirty secret: Using a shadow workforce of contract employees to drive profits

As the gig economy grows, the ratio of contract workers to regular employees in corporate America is shifting. Google, Facebook, Amazon, Uber and other Silicon Valley tech titans now employ thousands of contract workers to do a host of functions — anything from sales and writing code to managing teams and testing products. This year at Google, contract workers outnumbered direct employees for the first time in the company’s 20-year history.

It’s not only in Silicon Valley. The trend is on the rise as public companies look for ways to trim HR costs or hire in-demand skills in a tight labor market. The U.S. jobless rate dropped to 3.7 percent in September, the lowest since 1969, down from 3.9 percent in August, according to the Bureau of Labor Statistics.

Some 57.3 million Americans, or 36 percent of the workforce, are now freelancing, according to a 2017 report by Upwork. In San Mateo and Santa Clara counties alone, there are an estimated 39,000 workers who are contracted to tech companies, according to one estimate by University of California Santa Cruz researchers.

Spokespersons at Facebook and Alphabet declined to disclose the number of contract workers they employ. A spokesperson at Alphabet cited two main reasons for hiring contract or temporary workers. One reason is when the company doesn’t have or want to build out expertise in a particular area such as doctors, food service, customer support or shuttle bus drivers. Another reason is a need for temporary workers when there is a sudden spike in workload or to cover for an employee who is on leave.

Half of US Uber drivers make less than $10 an hour after vehicle expenses

Uber lures drivers with the idea of being your own boss and “making great money with your car.” The “great money” part is up for debate.

The median hourly pay with tip for Uber drivers in the U.S. is $14.73, according to a new study conducted by Ridester, a publication that focuses on the ride-hail industry. That figure includes tips but doesn’t account for expenses like insurance, gas and car depreciation incurred while working. Using Ridester’s low-end estimate of $5 per hour in vehicle costs, drivers would bring in $9.73 per hour and potentially much less.

That implies a driver working 40 hours per week would make an annual salary of almost $31,000 before vehicle expenses, and about $20,000 after expenses (but still before taxes). That’s below the poverty threshold for a family of three.

This is important because online “gig economy” jobs, including driving for Uber, are a growing part of the U.S. workforce: About 5 percent of the working population has worked in the gig economy in the past year, up from 2 percent in 2013. So their labor is increasingly tied to overall prosperity. Additionally, these workers are still typically considered contractors, meaning that they aren’t required to receive employer healthcare or other employee benefits.