Veritone Analyzes U.S. Bureau of Labor Statistics April 2024 Jobs Report and AI Job Growth

Rhea-AI Summary

Veritone (NASDAQ: VERI) analyzed the U.S. Bureau of Labor Statistics April 2024 Jobs Report and AI job growth using data from Aspen Technology Labs. The report highlighted that total nonfarm payroll employment rose by 175,000, while the unemployment rate remained at 3.9%. Average hourly earnings grew by 0.2% to $34.75. In contrast, AI job vacancies surged by 32% year-over-year to 14,117, with a median salary jump from $144,986 to $160,056. The analysis emphasized AI’s rapid job growth and higher wages compared to the general market, showing significant demand for AI expertise.

Positive

• Total nonfarm payroll employment increased by 175,000 in April 2024.
• Average hourly earnings for all employees on private nonfarm payrolls increased by 0.2% to $34.75.
• AI job vacancies surged by 32% year-over-year to 14,117.
• Median salary for AI jobs increased to $160,056 from $144,986.
• Top 50 highest-paying AI job openings ranged from $312,499 to $680,004 annually.
• Veritone will continue delivering quarterly analyses of U.S. and AI job data.

Negative

• Total nonfarm payroll employment growth slowed down from 303,000 in March 2024 to 175,000 in April 2024.

Insights

Financial Analyst

The analysis of the U.S. Bureau of Labor Statistics (BLS) April 2024 Jobs Report by Veritone highlights some critical trends for investors in the AI sector. The overall U.S. job market saw a modest increase of 175,000 nonfarm payroll jobs, with an unchanged unemployment rate of 3.9%. In contrast, the AI sector experienced robust growth, with a 32% year-over-year increase in job vacancies. This stark difference indicates that investments in AI companies could potentially offer higher returns compared to other sectors due to their rapid expansion.

From a financial perspective, the substantial growth in AI jobs and wages suggests a healthy demand for AI talent, which could translate into higher revenues and profitability for AI-focused firms. The average hourly earnings in the AI sector rose to $76.95, significantly higher than the $34.75 in the general job market. This wage premium underscores the value placed on AI expertise and reflects the potential for AI companies to command premium pricing for their services.

Retail investors should note that such strong growth metrics are indicative of an evolving market landscape where AI plays a pivotal role. However, the high wages in the AI sector could also mean increased operational costs for AI companies, which may impact their profit margins in the short term. Therefore, while the growth prospects are promising, investors should carefully consider the balance between revenue growth and cost management in their investment decisions.

Market Research Analyst

The data from Veritone and Aspen Technology Labs provides valuable insights into the growing AI job market. The year-over-year increase in AI job vacancies by 32% indicates a strong and sustained demand for AI-related roles. For investors, this is a positive sign, as it suggests that the AI market is not only expanding but also becoming a significant contributor to the economy.

The geographical distribution of AI job vacancies, with states like California, Texas and Washington leading the way, shows where AI investments and opportunities are concentrated. This could guide investors in identifying which regional markets are likely to see increased economic activity and demand for AI technology and services.

Furthermore, the top-tier salaries for AI positions, ranging from $312,499 to $680,004 annually, highlight the premium placed on top talent in this field. This could indicate that companies in these states are heavily investing in AI capabilities, which may drive further innovation and market leadership. For retail investors, understanding these regional and salary trends can help in making more informed decisions about where to allocate resources in the AI sector.

Additionally, the planned quarterly analysis of AI job data by Veritone and Aspen Tech Labs is a promising initiative that could provide ongoing insights into the AI job market's evolution, helping investors stay informed about market dynamics.

Tech Expert

The rapid growth in AI job vacancies and wages highlighted by Veritone's analysis reflects the increasing importance of AI technology across various industries. With a 32% increase in AI job vacancies year-over-year, it's clear that AI is becoming integral to business operations, driving innovation and creating new opportunities. This trend is indicative of a broader shift towards digital transformation and the adoption of advanced technologies.

For stakeholders in the tech industry, the high demand for AI expertise suggests a competitive job market where attracting and retaining top talent is crucial. The significant salary increases, with a median salary of $160,056 in the AI sector, indicate that companies are willing to invest heavily in skilled AI professionals to maintain a competitive edge.

Moreover, the focus on AI jobs in states like California, Texas and Washington aligns with the presence of major tech hubs and innovation centers in these regions. This geographical concentration of AI job growth could promote further development of tech ecosystems, fostering collaborations and advancing AI research and applications.

In summary, the data points to a thriving AI job market, which could drive technological advancements and open up new business opportunities. However, the high competition for AI talent could also mean increased pressure on companies to offer competitive compensation packages, which could impact their financial planning and resource allocation.

Data reveals AI job growth and wages are significantly outpacing the general job market

DENVER--(BUSINESS WIRE)-- Veritone, Inc. (NASDAQ: VERI), a leader in designing human-centered AI solutions, today released its analysis of the U.S. Bureau of Labor Statistics (BLS) April 2024 Jobs Report, which provides insights into the latest employment trends and market dynamics shaping the U.S. labor market. Leveraging data from Aspen Technology Labs, Inc., a global leader in web data management services and recruitment technology, Veritone also analyzed AI job growth over the past year.

According to the April BLS report, total nonfarm payroll employment increased by 175,000, compared to 303,000 in March 2024, and the unemployment rate was relatively unchanged at 3.9%, with job gains occurring in health care, social assistance, transportation and warehousing similar to the trends observed in March. Additionally, the average hourly earnings for all employees on private nonfarm payrolls increased by 0.2% to $34.75, mirroring the slight uptick reported in March.

To explore how AI jobs compare to the BLS aggregate, Veritone analyzed Aspen Tech Labs’ Job Market Pulse, a real-time database that includes more than 5 million U.S. jobs from more than 112,000 employers. In April 2024, there were 14,117 vacancies in artificial intelligence jobs, a 32% increase year-over-year. The median salary for AI jobs in April was $160,056, or $76.95 hourly, an increase from $144,986, or $69.70, during the same period last year.

"With increased scrutiny about jobs being replaced by AI, we wanted to dig into how many jobs AI is creating, to provide greater insight into the positive impact of AI on U.S. jobs,” said Alex Fourlis, general manager, Veritone Hire, Veritone. “The April data shows that the AI job market is growing much faster than the overall job market, indicating robust demand for AI expertise. Wages and wage growth in the AI sector also significantly outpace the general job market, highlighting the premium placed on AI-related skills and the lucrative opportunities within this field. We strongly believe in the potential of AI to enhance human capabilities and this research aims to provide data and insights that help foster a better debate and combat myths about the real impact of AI on the labor market.”

According to Aspen Tech Labs’ data, the top 10 markets for AI job vacancies in April were: California, Texas, Washington, New York, Virginia, Massachusetts, New Jersey, Illinois, Maryland and Pennsylvania. The top 50 highest-paying AI job openings were $312,499 to $680,004 annually.

Fourlis added, “We look forward to our ongoing partnership with Aspen Tech Labs and introducing a quarterly analysis of U.S. and AI job data, including exploring the ways AI contributes to job creation, job transformation and opportunities for the emerging workforce. We aim to provide data-driven insights and a balanced view of the impact of AI on jobs.”

About Veritone

Veritone (NASDAQ: VERI) designs human-centered AI solutions. Serving customers in the talent acquisition, media, entertainment and public sector industries, Veritone’s software and services empower individuals at the world’s largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone’s leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit Veritone.com.

About Aspen Tech Labs

Aspen Tech Labs is a global leader in web data management services and recruitment technology founded in 2008. The company is headquartered in Aspen, Colorado with teams throughout the U.S. and Europe. ATL provides web scraping, business intelligence, and data/analytics services for a wide variety of industries. ATL’s teams are constantly working to increase the number of companies and jobs in the database and to improve the quality and extraction of additional data. ATL’s Job Market Pulse, a powerful, real-time competitive tool to assist ATL customers in staying in front of the challenging labor market. Subscribers have access to more specific details of each job in the database. To learn more, visit AspenTechLabs.com.

Safe Harbor Statement

This news release contains forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Assumptions relating to the foregoing involve judgments and risks with respect to various matters which are difficult or impossible to predict accurately and many of which are beyond the control of Veritone. Certain of such judgments and risks are discussed in Veritone’s SEC filings. Although Veritone believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Veritone or any other person that their objectives or plans will be achieved. Veritone undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530817711/en/

Valerie Christopherson or Lora Metzner

Global Results Comms (GRC)

+1 949 608 0276

Veritone@globalresultspr.com

Sarah Rich

Veritone

srich@veritone.com

Source: Veritone, Inc.

FAQ

What is the growth rate of AI job vacancies according to Veritone's analysis?

AI job vacancies increased by 32% year-over-year in April 2024.

What was the median salary for AI jobs in April 2024?

The median salary for AI jobs in April 2024 was $160,056.

How did the overall nonfarm payroll employment change in April 2024?

Total nonfarm payroll employment increased by 175,000 in April 2024.

What is the average hourly earnings increase reported for April 2024?

Average hourly earnings for all employees on private nonfarm payrolls increased by 0.2% to $34.75.

How does AI job wage growth compare to the general job market?

Wages and wage growth in the AI sector significantly outpace the general job market.

How many AI job vacancies were there in April 2024?

There were 14,117 AI job vacancies in April 2024.

What is the salary range for the top 50 highest-paying AI job openings?

The top 50 highest-paying AI job openings ranged from $312,499 to $680,004 annually.