Revenue fell at Indeed and Glassdoor amid uncertain economic conditions, and the new pricing model at Indeed helped push down paid job ads, according to their owner, Recruit Holdings Co. Ltd. Indeed’s paid job ads fell 50% year over year.

“Although the labor market remained tight globally and total job openings were still above pre-pandemic levels from Feb. 1, 2020, the supply-and-demand mismatch between job seekers and employers continued to ease,” Junichi Arai, senior VP of corporate strategy and investor relations at Recruit Holdings, said in a conference call.

“This was also reflected on Indeed and Glassdoor,” Arai continued. “While total job postings, which include both free and sponsored listings, continued to decrease, job seeker activity as measured by traffic and applies on our hiring platforms continued to increase.”

Recruit reports Indeed and Glassdoor revenue in its “HR Technology” segment. Recruit Holdings reported second-quarter earnings today. Full coverage is available in a separate article in the Staffing Industry Daily News.

US dollar-based revenue in HR Technology fell 18.2% year over year to $1.77 billion in the company’s second quarter ended Sept. 30. The decrease was 19.1% on a constant currency basis.

Revenue from the US declined 23.5% year over year and fell 2.9% outside the US.

Total job openings on Indeed in the US were down approximately 16% year over year, while paid jobs fell 50%, the company reported.

“The decline in paid job ads can be attributed to two primary factors: the easing of the tightness in the labor market and ongoing enhancements to Indeed’s pricing model, which are designed to deliver a better job search and hiring experience for job seekers and employers,” Arai said during the conference call.

“In particular, pricing improvements, including the shift to ‘pay per started application’ in combination with minimum budgets, were further implemented,” he said. “These changes led to a continued decline in the overall volume of paid job ads on Indeed, especially for jobs with very low budgets. As a result, the average revenue per job ad increased.”

The company plans to cease reporting the number of paid jobs on a quarterly basis as it no longer considers the metric to be a reliable indicator of HR Technology revenue trends.