Glimmers of Hope for Grads

The New York Times had an article yesterday indicating that while the job market is by no means thriving, this spring's graduates are facing better job prospects than the environment faced by last year's grads. Of course, all things are relative - average starting salaries are down, and employers were planning to make only 5 percent more job offers to new graduates this spring compared to last spring, when job offers were down 20 percent from 2008 levels, according to a study by the National Association of Colleges and Employers, which tracks recruitment data.

According to the article, 24 percent of 2010 college graduates who applied for a job have one waiting after graduation, up from 20 percent last year. Economists are less upbeat however, and the possibility of a double-dip recession is a growing concern. The Times point out that some economists are worried that the increase in job offers might peter out if the economy stalls because concerns with the stock market and the financial chaos in Europe.

Thomas J. Nardone, an assistant commissioner of the Bureau of Labor Statistics, said that the jobless rate for college graduates under age 25 was 8 percent in April, up from 6.8 percent in April 2009 and 3.7 percent in April 2007, before the recession began.
The 8 percent unemployment rate is lower than the nation’s overall 9.9 percent jobless rate, but it is high for college graduates, who typically have a lower unemployment rate than those without bachelor’s degrees. Mr. Nardone noted that for high school graduates under age 25 who did not enroll in college, the jobless rate was 24.5 percent last month, more than twice the 11.4 percent it was in April 2007.

The article also makes it clear that many grads are now taking jobs that don't technically require a degree. Andrew Sum, an economics professor at Northeastern University, points out that “One reason a lot of high school grads are having such a hard time is you have college grads willing to take jobs that high school grads used to get.”


Jeffrey D. Rice, career management expert at the Fisher College of Business at Ohio State University, advises job seekers to look to where federal stimulus money was being spent — health care, green industries and education — and to other growth areas like risk management, telecommunications and digital recordkeeping for health care: “Even in a bad economy you have to look at where pockets of opportunity are.”

Linda Arra, director of career services at Lafayette College in Easton, Pa., points out that networking is vital in today’s highly competitive job market. “This generation has an independent spirit and feels they should do things on their own,” she said. “But when there is a great opportunity and an employer has all these applications, you really need someone inside advocating for you.”

To read the full New York Times article click here: http://www.nytimes.com/2010/05/25/business/economy/25gradjobs.html?pagewanted=1&%2359;adxnnlx=1274799832-1SP%20Wb6HF7u72QysSyJhOQ&%2359;adxnnl=1&&%2359;th&%2359;emc=th