Turmoil in the economy and weakening labor market could cause difficulties for college seniors looking for entry level jobs. The troubling news comes as more students are graduating from college than ever before. The National Center for Education Statistics reports that over 1.5 million bachelor’s degrees will be granted in 2009.
According to a survey by the National Association of Colleges and Employers, the rate of hire is expected to only increase 1.9% in 2009 – the weakest outlook in past six years. By contrast, in 2007 employers told the NACE that they projected to increase hiring by 16%.
“Things are changing very rapidly, and we are reassessing everything right now,” noted Mari Pumarejo, who works for Progressive Corporation. Last year, Progressive expected to hire 4,000 college graduates, but that number ended up closer to 1,000.
Other companies that are cutting back include Target Corporation, Walgreen Company, and General Electric. Walgreen plans to open fewer stores in the coming year, while General Electric continues to hire overseas workers. The U.S. Department of Labor notes that the number of unemployed people has risen dramatically – by over 2 million – in the past year.
An obvious decline in hiring will primarily be among the financial-service sectors, which is troubling for those students who had planned to head to Wall Street after graduation.
Campus career counselors are stepping up their efforts in order to help students. At New York University, an information session called “Alternatives to Wall Street” helps explore more out-of-the-box possibilities. Most of the cutbacks of late have been in finance, manufacturing, retail, and construction. However, positions in health care, technology and education remain in high demand.