One of the most surprising findings in the 2026 Recruitment Marketing Benchmark Report is this: even as the labor market cooled, recruiting got more expensive.
That runs counter to what labor economists would predict. When more people are looking for work and hiring demand is soft, application volume usually rises, and we would expect costs to fall. But that didn’t happen this year.
Let’s unpack what’s behind the unexpected spike in costs and what it means for hiring teams in 2026.
Cost-per-click climbed steadily throughout 2025
For most of 2023 and 2024, it looked like recruitment costs were finally cooling off. But then cost-per-click (CPC) took off again.
Why? The labor market plays a role, but it’s not the only factor. Job boards and media platforms are changing their cost models. Organic reach has shrunk over time, pushing employers into pay‑to‑play territory.
Recruiters should note that these changes aren’t temporary – they are the new normal.
Apply rates rose — but didn’t translate into cheaper CPAs
Despite rising CPC, apply rates improved in 2025, climbing to 5.19%. This is partly job‑seeker behavior (more applications per candidate), but it’s also a sign that recruitment marketing is getting smarter: better targeting, better placements, and better apply experiences.
Still, costs increased. Why?
Volume no longer guarantees efficiency. And with job boards adjusting their pricing strategies, employers are paying more just to get in front of candidates.
The white‑collar recession distorted the funnel
“Sitting‑down” job apply rates surged — tech reached 7.14% — while healthcare and other essential sectors continued to struggle.
But higher apply rates didn’t necessarily improve quality. In tech and other white‑collar fields, recruiter workloads ballooned as applicant pools grew. More applicants can lead to more screening which results in higher cost‑per‑hire.
That’s how tech CPH increased again year over year.
The cost‑per‑hire story is telling
Even controlling for seasonality, 2025 was simply a more expensive year to hire. The soft labor market didn’t ease costs because cost drivers have shifted beyond labor supply.
Recruitment is no longer just about how many applicants you get — it’s about how efficiently you can move the right ones through the funnel.
What you need to prioritize in 2026
1. Invest in apply‑rate improvements:
Even small lifts in apply rate can offset rising CPCs.
2. Use multiple channels:
Search and social create more efficient pathways for both active and passive candidates.
3. Budget for cost variance by role and market:
Hiring a nurse in Boston and an analyst in Phoenix will require wildly different budgets — even if CPC looks similar.
