Journalnow.com - Winston-Salem Journal

News

ADVERTISEMENT

By Richard Craver | Journal Reporter

Published: March 8, 2009

Christopher McKnight just wants a chance to begin his career.

But McKnight, a recreation major at Appalachian State University, appears likely to graduate in May with little hope that an entry-level job will be waiting for him with his diploma.

He is not alone.

Employers expect to hire 22 percent fewer graduates from the class of 2009 than they hired in 2008, according to a survey released Wednesday by the National Association of Colleges and Employers.
It is the first time since at least 2004 that the survey found a decline in hiring of college graduates.

"More than two-thirds of employers said the economic situation forced them to re-evaluate their college hiring plans, and nearly all of those said they have decreased their planned number of hires," said Marilyn Mackes, the executive director of the association.

Another study, released by outplacement company Challenger, Gray & Christmas Inc. on Feb. 26, said that the class of 2009 is entering into "the worst entry-level job market since the dot.com bust." The unemployment rate among 20- to 24-year-olds grew to 13.5 percent in January, up from 9.8 percent a year ago, according to the U.S. Bureau of Labor Statistics.

That's because some of the classes of 2008 and 2007 as well are still struggling to land entry-level positions.

"Many colleges and universities are reporting declines in on-campus recruiting of up to 50 percent," Challenger said.

That sobering reality, plus being let go from a retail job last month, is why McKnight viewed a recent job fair for summer camps at ASU as both a means to a paycheck and a way to gain experience toward a full-time job.

"I'm hoping for an entry-level, full-time position once the summer is over," McKnight said. "I want to work as a recreation or program manager, but really anything I would be qualified for with this degree.

"There's a Catch-22 in that in order to become a recreation or program manager, you have to gain experience, but you have to convince someone to take a chance on you to get the experience."

John Challenger, the chief executive of the outplacement company, said that it's hard to believe that 10 years ago, employers chased down college seniors during spring break with job applications and signing bonuses.

Nowadays, the increased competition for a shrinking number of jobs "may compel spring graduates to continue their education, work for free, or seek opportunities overseas," Challenger said. "Not even the cream of the college-graduate crops is guaranteed a job in the financial-services sector."

That's a worrisome development for universities such as Wake Forest University, which has developed deep ties and hiring pipelines with financial-services companies such as Wachovia Corp., PricewaterhouseCoopers and Deloitte & Touche LLP.

"The financial markets have hit us very hard in on-campus recruiting," said Bill Currin, the director of the Office of Career Services at Wake Forest.

It's probably "the worst job market for college graduates I've seen in 20 years. I know from my conversations with my peers at other universities, they're dealing with the same thing."

On-campus interviews at Wake Forest are down 16 percent compared with last year.

"Companies that used to be steady recruiters -- Lehman Brothers, Bear Stearns, Citigroup, Merrill Lynch, Wachovia -- some no longer exist or are in a different form with a different owner," Currin said.

The increased competition for work also includes young workers with one to three years of experience, and retirees and stay-at-home parents forced back into the work force by the recession.

About 77 percent of 2008 graduates moved back home upon completion of their college careers, according to a survey by CollegeGrad.com. That was up from 67 percent in 2006.

"An unemployed college returnee could put an unexpected financial burden on parents, who may be dealing with their own job loss or other financial pressures related to the downturn," Challenger said.

Companies, however, don't want to plug pipelines to colleges where they have had recruiting success, he said.

For example, Altria Group Inc. has hired information-technology majors from Winston-Salem State University for several years because "it knows the quality of the students we're turning out here," said LaMonica Singleton, an assistant director of Career Services and Cooperative Education.

Brian Davis, an information-technology major at WSSU, said he feels fortunate to have a job offer from Altria "because I know some employers have had to withdraw their offer as they cut back on hiring and expenses." Davis said that interning at Altria for two summers was pivotal since "every Winston-Salem State student who has interned with them has been placed into a job."

Challenger said that most employers are aware that they will be facing a shortfall of employees as their baby boomers retire. "But they are certainly reducing the numbers they are hiring, and that might not change much in 2010," he said.

A scenario also found in the National Association of Colleges and Employers survey. More than 46 percent of employers said they are unsure about hiring plans for this fall, and 17 percent already report that they expect to trim their college hiring further.

Currin said that for college graduates to stand out, they need have not only "outstanding academics, but also work experience through internships, sharp interview skills and a variety of extracurricular activities."

"They need to network, particularly with alumni in their preferred job fields, more than ever. The federal government could be a viable place to search. Some of those agencies are recruiting more aggressively since they have access to talent that normally would have found work in the private sector."

Erin Conaty, a chemistry major at Wake Forest, has receive an offer from a government agency based in Washington and is in the second round of interviews with a marketing company there. "I decided I wanted to live and work in the D.C. area, like a number of Wake Forest graduates have done, because it's one city that hasn't been impacted as hard by the economy," Conaty said. "I submitted resumes to any company I would feel comfortable working for."

Latoya Perry, a marketing major and the reigning Miss Winston-Salem State, chose to go to work for Teach for America, a nonprofit group that places young adults as teachers for one year, instead of going to work right away with Wells Fargo & Co.

"I see a lot of my friends out there looking for a job," Perry said. "We all want to go work somewhere and have the opportunity to prove ourselves, but not as many doors are open as we had hoped."

Currin said he has seen an increased interest in graduate school for those wanting a bridge or a safe harbor until the job market improves.

"Which is fine for those where graduate school makes sense for their careers," he said. "But that will just make getting into graduate school that much more competitive."

That's not exactly what Nenette Saelie, an economics major at Wake Forest, wants to hear. She is considering graduate school for accounting as a fallback if a consultant job doesn't work out.

Saelie feels fortunate to have had eight on-campus interviews, with two appearing promising.

"I've been shocked by how tough it has been to get a second interview, particularly because people who have focused on financial services are entering the field as consultants to get a job," Saelie said.

Saelie said that her parents have said that they would help her pay for graduate school "because they know how hard it is to get a job and how hard I've been trying."

"I believe that going to graduate school would provide more job security down the line than an undergraduate degree," she said. "But I'm really craving financial independence, so it will be disappointing not to have a job after graduation."

Although the outlook may appear grim from the standpoint of on-campus recruiting, this year's graduates should by no means consider the situation hopeless, Challenger said.

"The job search may take longer, but those who take an aggressive approach to networking, and cast a wide net to include more industries and geographic regions, should still be successful," he said.

"It may be necessary to lower one's salary expectations or possibly accept an undesirable position.

"However, it is important to remember that this is your first job and does not define the rest of your career path."

■ Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.

Job-hunting tips

• Make sure that your resume well represents your skills. The way that you tell your story could make all the difference. Highlight skills you have that are wanted in that particular job.

• In the interview, know how to articulate your skills and experience. Practice with a counselor.

• Do your research and be prepared to show an employer that you have done your homework about the company. Use the employer's Web sites and hunt down published articles about its business. Be able to tell the employer why you want to work there and what makes you a great match for its organization.

• Network effectively. Tell everyone you know that you are looking for a job, and also have them network on your behalf with people they know. Be sure to use the school alumni office for connections in your field.

• Be flexible with your salary stipulation and geographic job-location preferences. In this tight job market, you may need to move to the job and take even less money than you think that you deserve.

Source: Appalachian State University's Career Development Center.