AI pilots are failing spectacularly

+Job hugging + Labor market stall speed

Signal Summary: Companies are burning millions on failed AI experiments while workers cling to jobs they hate. Meanwhile, the job market hits stall speed as hiring freezes. Plus, the time when Mom crashed the interview, asking for dental money.

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All images hand-drawn with an iPad Pro, Apple Pencil, and Procreate.

HERE’S WHAT HAPPENED LAST WEEK ↓

SIGNAL 1
95% of enterprise AI pilots are spectacular failures

The brutal reality: Despite all the AI hype, companies are lighting money on fire faster than a startup with VC funding.

What's really happening:

  • Only 5% of generative AI pilots achieve rapid revenue growth

  • Point solutions create data silos that kill workflow efficiency

  • Internal AI builds fail 67% of the time vs. purchased solutions

The disconnect: Executives think they can build better AI than companies that do it full-time, or assume piecing together 5 different tools will somehow create seamless workflows. Spoiler alert: it doesn't.

Signal → Strategy: Prioritize platforms that integrate with your existing systems and unify your entire staffing workflow from sourcing to placement.

SIGNAL 2
Workers are "job hugging" like their lives depend on it

The grip tightens: Employees are clinging to positions they hate because the job market feels scarier than staying miserable.

The damage:

  • 65% of workers feel "stuck" in current roles (73% in tech)

  • CEO turnover hit highest levels since 2002, creating management whiplash

  • July payrolls grew by a pathetic 73,000 jobs

The coming storm: All this pent-up resentment is building toward another Great Resignation the moment market conditions improve. Quiet quitting evolved into "quiet cracking" as employees mentally check out, costing the global economy $438 billion in lost productivity.

Signal → Strategy: Market interim executive services to companies facing CEO turnover chaos. Position senior contractors as "stability bridges" during leadership transitions that are spooking employees.

SIGNAL 3
Job market hits "stall speed" as hiring freezes

Reality check: The job market officially flatlined, with growth averaging a measly 35,000 monthly since April.

The breakdown:

  • June jobs revised DOWN by 258,000 (initial BLS data now 47% unreliable)

  • Labor demand dropped 8% since March, 13% since election

  • White collar recession hammering recent college grads

Translation: We've officially entered stagflation territory with stalled growth plus stubborn inflation.

Signal → Strategy: Focus on healthcare sector - the ONLY industry still consistently hiring. Package specialized healthcare staffing solutions for facilities desperate to fill critical roles.

RECRUITING CONFESSIONAL
When helicopter parenting meets job interviews

Recruiting Confessional A weekly series featuring anonymous stories from recruiting and staffing professionals. Submit yours here.

The Setup: Standard interview process. Professional candidate, solid resume. What could possibly go wrong?

The Disaster: Candidate shows up with his mom. Our newer hiring manager somehow allows her into the interview room because... why not make things awkward?

The Aftermath: Mom stays quiet the entire time (thank god), but decides to speak up at the end: "Please hire my son so he can help pay for the new teeth I need."

Have a story? Submit it here

SHARE THE SIGNALS
3 people you should share these signals with:

  1. That exec who keeps saying "we need an AI strategy" but thinks ChatGPT is a messaging app

  2. Your friend who complains about work daily but won't update their LinkedIn

  3. Anyone still believing BLS job reports