The number of applications for each job opening has nearly doubled since 2023, according to data from StepStone. For employers, the challenge is shifting from quantity to quality, but with acceptance rates often below 1%, the pressure to filter efficiently is reshaping hiring practices. At the same time, a growing number of researchers and sociologists are warning that automated reviews may be trading speed for fairness.
Boston Consulting Group recorded approximately 1.7 million applications in 2025, but hired less than 1% of candidates. Despite that choice, the company said it plans to add thousands of new staff worldwide in 2026 and no junior-level job cuts are planned. Carolyn Eistert, BCG’s head of recruitment, explained that the application process has been changed to specifically test candidates’ AI abilities. In the technology sector, coding skills are a basic requirement.
BCG is also investing heavily in upskilling its existing workforce. Approximately 33,500 employees began the AI certification program in June 2026. The company’s recent revenue increased 7% to $14.4 billion, with an increased focus on AI consulting. Variable compensation is the norm for most AI-related projects.
Questions about fairness increase with the introduction of AI
Interviews using algorithms are receiving increasing attention. According to research cited in the article, 65% of applicants associate the use of AI with dehumanization. Since algorithms do not take cultural differences into account, there is also a risk of weeding out international talent. Sociologist Stephen Mau, speaking at a human resources conference in June 2026, argued for loosening controls on formal credentials and using AI to foster personal growth, rather than simply screening resumes.
Ifo Institute provides up-to-date data on a wide range of alternative arguments. Nearly 20% of companies using AI believe it will be easy to replace skilled workers with technology. In the retail industry, approximately 28% of companies believe that a college degree can be easily replaced by AI. However, professional experience is considered very difficult to replace. Overall, 54.5% of companies surveyed are currently using artificial intelligence.
Strategy gaps still exist among large companies
Many large companies have an AI strategy, but few execute it effectively. According to a January 2026 market analysis, 74% of German companies with 2,000 or more employees have a formal AI strategy, but only 34% are actively steering their processes using AI. The main obstacles are complex IT structures and lack of expertise. Deloitte research concludes that only 16% of companies feel well prepared when it comes to talent management.
Court ruling strengthens restrictions on withholding unemployment benefits
In another development affecting the labor market, Germany’s Federal Social Court ruled in early June 2026 that an undisclosed side job does not automatically invalidate a person’s unemployment registration (case reference B 11 AL 1/26 R). Authorities must examine each case individually to determine the criteria for unemployment, specifically working fewer than 15 hours a week and remaining available on the labor market. Under this ruling, requests for lump-sum repayment of unemployment benefits will no longer be granted.
