Job market gloomy for ‘09 graduates

With the stock market fluctuating and the economy slowing, 2009 graduates will face the weakest job outlook in six years, according to the National Association of Colleges and Employers.

The NACE conducted a poll in August and again in October. Results show that although employers expect to hire 1.3 percent more graduates than last year, the number is down 1.6 percent from August.

NACE statistics also show a possible employee surplus, with 1,585,000 students expected to earn a bachelor’s degree in 2009, up from 1,544,000 in 2008.

As a result of these figures, the Wall Street Journal’s Economic Forecasting Survey of October 2008 predicts a rise in unemployment to 6.8 percent in 2009.

The combination of these factors is creating a challenge for students hoping to enter the workforce next spring.

“Overall, hiring looks flat for now and some employers are indicating some movement to cut back,” said Marilyn Mackes, NACE executive director. “In August, approximately one-third of employers said they were going to trim their college hiring; in our current poll, however, 52 percent said they were going to adjust their college hiring downward.”

Students looking for help and advice should use resources available to them while they are still in college, she said.

The University offers a variety of resources online at www.uttyler.edu/careerservices/students.html, as well as at the career services office Room 235 of the University Center.

Dr. Guillermo Covarrubias, assistant professor of economics, said there are several things students can do to prepare for the future.

“Students need to acquire skills while in college that are valuable to employers. The ability to communicate and a strong analytical tool set, among others, are skills important for the student to master,” he said.

Possessing more marketable skills means the student stands a better chance of competing in a tight labor market, Covarrubias said.

Taking advantage of internship opportunities which may lead to permanent employment is another option for students.

While students may consider postponing graduation, Covarrubias believes students should work more diligently than ever to finish their degrees.

“I would not be surprised to see tuition rising over the next couple of years,” he said.

Covarrubias said access to student loans may also be affected as a result of the financial crisis.

“It isn’t clear how difficult it will become to get loans in the years to come. It all depends on the financial intermediaries’ ability to clean up their balance sheets. We are also uncertain about how regulations and lending practices will evolve in the banking sector. I suspect the banking industry will remain cautious,” he said.

Meanwhile Covarrubias said students should be more cautious with their own balance sheet.

“Make it a habit of keeping to a budget which allows you to save. With regards to managing your savings, listen to good advice, like that from Warren Buffet. He said to be fearful when everybody else is greedy and be courageous when everybody out there is fearful.” he said.

Despite the bleak outlook, Covarrubias said college graduates have higher lifetime incomes and lower unemployment rates compared to the general population.

“Students have already made a very important decision to come to college,” Covarrubias said. “Make it count.”

By Melissa Greene Associate Editor