Veritone Releases Analysis of Q2 2024 U.S. Bureau of Labor Statistics Jobs Data and AI Job Growth

Rhea-AI Summary

Veritone (NASDAQ: VERI) has released an analysis of Q2 2024 U.S. Bureau of Labor Statistics (BLS) Jobs Data and AI job growth. The report shows that AI job growth and wages continue to outpace the general job market. Key findings include:

- Total nonfarm payroll employment increased by 532,000 in Q2
- U.S. unemployment rate rose to 4.1%
- Average hourly earnings increased by 0.9% to $35
- AI job vacancies increased by 5.6% from Q1 2024 and 31.5% year-over-year
- Median salary for AI jobs in Q2 2024 was $157,196, a 7.2% increase from the previous year

The top markets for AI job vacancies were California, New York, and Texas. The highest-paying AI job openings ranged from $272,000 to $450,000 annually.

Positive

• AI job vacancies increased by 5.6% quarter-over-quarter and 31.5% year-over-year
• Median salary for AI jobs rose 7.2% year-over-year to $157,196
• Top 50 highest-paying AI job openings ranged from $272,000 to $450,000 annually

Negative

• U.S. unemployment rate increased to 4.1%, hitting a 2-1/2 year high
• Average hourly earnings growth slowed to 3.9% over the past 12 months, the slowest pace in three years

Insights

Financial Analyst

The report from Veritone provides critical insights into both the general job market and the rapidly expanding AI sector. Nonfarm payroll employment increased by 532,000 in Q2, driven primarily by government and healthcare services, but the unemployment rate hit a 2.5-year high at 4.1%. Despite these mixed signals, the average hourly earnings showed a modest growth of 0.9% in Q2, up to $35. Over the last 12 months, earnings have grown by 3.9%, marking the slowest pace in three years.

For retail investors, this indicates a cautious optimism. While job creation is robust, the rising unemployment rate and slower wage growth may hint at economic headwinds. Specifically, the AI job sector demonstrates a significant outlier. AI jobs grew by 31.5% year-over-year, showcasing a median salary of $157,196 in Q2 2024, significantly higher than the average wage, suggesting strong demand and compensation in this niche.

From a long-term perspective, investors should recognize that AI continues to be a lucrative and growing field, potentially offering higher ROI for those investing in AI-focused companies. However, the broader economic indicators suggest vigilance as mixed economic signals could affect overall market stability.

Tech Expert

The robust growth in AI job vacancies, a 31.5% increase from Q2 2023, underscores the increasing integration of AI across various sectors. The median salary of $157,196, with top positions earning up to $450,000 annually, reflects the high value and demand for AI expertise. This indicates companies are willing to invest significantly in AI talent, pointing to the critical role AI plays in advancing technology and innovation. The emphasis on high-paying roles in top markets like California, New York and Texas further illustrates the concentration of AI talent investments in tech hubs.

For stakeholders, this trend implies sustained growth in AI-related investments and developments, likely driving further technological advancements. Investors should note that the high compensation in AI could translate to increased operational costs for companies, but the potential for innovation and efficiency gains may outweigh these expenses.

The rapid growth in AI employment amid broader market fluctuations suggests resilience and a forward-looking investment in technology. It's essential to monitor how these trends evolve, especially in relation to economic conditions and technological advancements.

Market Research Analyst

Analyzing the broader data, the spike in AI job vacancies and remuneration not only underscores the critical role of AI but also highlights a shifting labor market where specialized tech skills are increasingly in demand. With a 7.2% salary increase for AI roles year-over-year, compared to a slower overall wage growth, the disparity underscores a premium placed on cutting-edge skills. The geographical concentration of these jobs in states like California and New York highlights regional hubs leading technological innovation.

For retail investors, understanding these trends can guide investment decisions towards sectors and regions experiencing high growth and demand for AI talent. This could indicate potential hotspots for future economic development and innovation. Additionally, the higher wages point to a competitive hiring landscape, possibly driving up costs for companies but also pushing forward advancements and efficiencies derived from AI technologies.

While the overall job market shows mixed signals, the AI sector's robust growth provides a clear sign of where technological progress and investment opportunities may be headed. Keeping an eye on these evolving trends will be important for making informed investment choices.

AI job growth and wages continue to outpace the general job market

DENVER--(BUSINESS WIRE)-- Veritone, Inc. (NASDAQ: VERI), a leader in building human-centered enterprise AI solutions, today released its analysis of Q2 2024 aggregated U.S. Bureau of Labor Statistics (BLS) Jobs Reports, which provide 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 Q2 AI job growth.

According to BLS data, total nonfarm payroll employment increased in Q2 by 532,000, with government and healthcare services accounting for three-quarters of the gain. However, the U.S. unemployment rate increased to 4.1%, hitting a 2-1/2 year high. In Q2, average hourly earnings increased by 0.9% to $35. Over the past 12 months, average hourly earnings have increased by 3.9%, the slowest pace in three years.

Comparing AI job growth to the BLS aggregate, Veritone analyzed Aspen Tech Labs’ Job Market Pulse, a real-time database with more than 5 million U.S. jobs from more than 112,000 employers. In Q2, there were 29,871 vacancies in artificial intelligence jobs, a 5.6% increase from Q1 2024 and a 31.5% increase from the same period in 2023. The median salary for AI jobs for Q2 2024 was $157,196, or $75.57 hourly, a 7.2% increase from $146,609, or $70.48, during the same period last year.

“AI continues to be a driving force in the job market, demonstrating remarkable growth and resilience even amidst broader economic fluctuations,” said Alex Fourlis, general manager, Veritone Hire, Veritone. “Our latest analysis underscores the significant demand and competitive compensation for AI roles, reflecting the critical role AI plays in advancing technology and innovation. Veritone remains committed to harnessing the power of AI to drive progress and create valuable opportunities across industries.”

According to Aspen Tech Labs’ data, the top 10 markets for AI job vacancies in Q2 were, in rank order: California, New York, Texas, Virginia, Washington, Massachusetts, Illinois, New Jersey, Maryland and Pennsylvania. In Q2, the top 50 highest-paying AI job openings were $272,000 to $450,000 annually.

Fourlis added, “Amidst a deluge of negative predictions that AI will replace jobs, we can see significant year-over-year growth in jobs that AI is actually creating and with salaries and salary growth well above the market benchmark.”

About Veritone

Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition 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/20240717030029/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 was the increase in AI job vacancies in Q2 2024 compared to Q1 2024?

According to Veritone's analysis, AI job vacancies increased by 5.6% in Q2 2024 compared to Q1 2024.

How much did the median salary for AI jobs increase in Q2 2024 compared to the previous year?

The median salary for AI jobs in Q2 2024 was $157,196, representing a 7.2% increase from $146,609 during the same period last year.

What were the top three markets for AI job vacancies in Q2 2024 according to Veritone's analysis?

The top three markets for AI job vacancies in Q2 2024 were California, New York, and Texas.

How did Veritone (VERI) analyze the AI job market data?

Veritone leveraged data from Aspen Technology Labs' Job Market Pulse, a real-time database with more than 5 million U.S. jobs from over 112,000 employers.