Consulting industry sees hiring slowdown, rise in ‘ghost jobs’

NEW YORK, UNITED STATES — In recent months, the consulting industry has experienced a rise in “ghost jobs” and a slowdown in hiring activities.
This trend reflects broader changes in the white-collar economy and has left many job seekers frustrated and uncertain about their prospects.
‘Ghost jobs’ in consulting reach two-year high
According to data from hiring platform Greenhouse, job listings for consulting roles with no hiring activity, known as “ghost jobs,” have reached a two-year high.
In the second quarter of this year, 31% of consulting job listings were classified as ghost jobs, up from 26% two years ago. This increase stands in contrast to other sectors like finance and technology, where ghost jobs have actually declined.
The prevalence of ghost jobs has created challenges for job seekers in the consulting industry.
Michelle Lentz, who was recently laid off from a boutique consulting firm, shared her frustration to Fortune: “It can be so awful. I don’t care for automated rejection letters, but would prefer that, just to have closure”.
Economic shifts impact consulting demand
A downturn in demand for traditional consulting services has led to job cuts and slower hiring at firms like Accenture, Ernst & Young, and McKinsey & Co. Additionally, uncertainty surrounding the U.S. presidential election and potential recession concerns have slowed a once-thriving consulting market.
The U.S. consulting market’s growth slowed to 5.2% last year, down from 14% the previous year, according to Source Global Research. Nearly half of the firms that use consultants reported scaling back, deferring, or canceling projects. Growth for this year is expected to be a modest 6%.
“When the economy is hot, you have to treat job candidates better and make decisions faster,” said Jon Stross, co-founder and president of Greenhouse.
“When it flips and there are way too many candidates, it slows down decision making. Recruiters can wait for that perfect person, so they treat people worse and get away with it.”
Salary growth slows as AI disrupts industry
Consultants currently employed are also feeling the squeeze, with salary growth slowing for the third consecutive year. A survey by the Conference Board projected that consulting salaries would rise by only 3.85% next year, down from nearly 5% in 2023.
Artificial intelligence is also reshaping the consulting landscape. Companies are increasingly turning to AI solutions, which is shifting demand for consulting services.
“With the advent of new AI technology, what companies need is changing, and smaller, more nimble agencies have taken hold,” said Diana Scott, US Human Capital Center leader at the Conference Board. “The consulting industry is being disrupted now.”