Grad job outlook grim

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By Andrea Billups

As college students prepare to pick up diplomas in May, they face the tightest job crunch in many years and one that has many rethinking degree choices or downgrading their hopes for the career of their dreams.

The National Association of Colleges and Employers (NACE), which tracks hiring data from schools and companies, released a grim "Job Outlook" report for spring 2009 showing that the broader economic recession has finally hit the hiring of new college graduates. According to the survey, companies expected to hire 22 percent fewer graduates out of the spring class of 2009 than the spring class of 2008 — the first actual drop in the past six years of figures in the survey.

Of the previous 11 academic semesters cited in the survey since fall 2004, all had seen increases in hiring and nine were double-digit percent rises. The fall 2008 semester, when the broad economic recession really began to hit, saw an anemic increase in hiring — 1.3 percent — but an increase nevertheless. This spring is when the hiring really dried up.

The report "clearly indicates that college hiring will not be immune to the spate of bad economic news. As the economy has continued to falter, it is clear that employers are now limiting, in a significant way, their hiring plans across all types of candidates, including new college graduates," the report said. "Much of the decline in college hiring has occurred in the past couple of months, and suggests a difficult spring recruiting season for 2009 graduates."

Of course, having the right career choice helps — Wall Street finance is out, and high-tech and government service, including the military, are in. Good grades, real-world experience and face-to-face social skills matter too, as the tight job market mean employers are being pickier about the people they do hire.

"What we have heard from the colleges is there is not as much hiring but there are a lot of jobs out there, they just have to look harder," says Andrea Koncz of Bethlehem, Pa.-based NACE.

"They might not get the exact job that they want right out of school so they might have to take something for now and eventually move into the field where they actually would like to be," she said.

Some students are riding out the recession by seeking work in service fields such as the Peace Corps or AmeriCorps, "both of which are being expanded this year," adds Laurence Shatkin, the author of several books about employment including the "200 Best Jobs for College Graduates." "These are ways to get skills like self-reliance and resourcefulness that many employers respect. You come out of that and go into many careers."

Graduate school enrollment also is up this year as many seek to stay in school and get more experience in the hope that an economic turnaround will greet them when they seek employment in a couple years. Other opportunities for those having trouble in the civilian work force include careers in the military, where top students can learn on the job.

"In some ways, it might be better to go into the military and get some occupational training," Mr. Shatkin said, noting that today's military has a smaller need for jobs in the foxholes and plenty of opportunity for high-tech jobs.