2008 Woodie Awards
Vote Absentee
Finance careers take hit from struggling economy
Rachel Albin
Issue date: 3/27/08 Section: News
After tassels are moved and mortar boards are tossed this spring, more members of 2008's graduating class will have secured jobs than last year's graduates.
Despite this increase, more new graduates than experts originally predicted will still be unemployed on graduation day.
Last fall, employers estimated they would hire 16 percent more new graduates in 2008 than 2007, but that expectation has been lowered to eight percent, according to the National Association of Colleges and Employers.
"Sometimes employers are optimistic and overestimate what they need in terms of staff," said Emily Wilber, the University of Nebraska-Lincoln's assistant director for Career Services.
The lowered prediction also may be due to a front-loaded hiring year in which many 2008 graduates were recruited during the fall semester, said Edwin Koc, the director of strategic and foundation research for NACE. Very few of these job offers have been taken back.
The sluggish economy will affect spring hiring as well, and finance majors could be hit hardest.
While an eight percent overall increase in fresh-from-college hires is predicted, seven percent fewer finance graduates (compared to the class of 2007) will be hired.
The finance, business, manufacturing and construction industries are suffering because of the credit crunch, the struggling housing market and low consumer confidence, Koc said.
"It's not as good a market as last year," he said. "If you're a senior this year, you should've been a senior last year."
Graduates from these industries may have to settle for less pay than previously expected, or they might need to consider working in a different field for a short time, Koc said.
However, not all is lost for graduates.
Because companies tend to budget for college recruitment well in advance, the class of 2008 may feel a buffer from the current economy.
Another thing graduates can look to with hope is the aging of their parents' generation - the baby boomers. Younger applicants are appealing to companies whose experienced core of baby boomers will begin to retire during the next decade.
Despite this increase, more new graduates than experts originally predicted will still be unemployed on graduation day.
Last fall, employers estimated they would hire 16 percent more new graduates in 2008 than 2007, but that expectation has been lowered to eight percent, according to the National Association of Colleges and Employers.
"Sometimes employers are optimistic and overestimate what they need in terms of staff," said Emily Wilber, the University of Nebraska-Lincoln's assistant director for Career Services.
The lowered prediction also may be due to a front-loaded hiring year in which many 2008 graduates were recruited during the fall semester, said Edwin Koc, the director of strategic and foundation research for NACE. Very few of these job offers have been taken back.
The sluggish economy will affect spring hiring as well, and finance majors could be hit hardest.
While an eight percent overall increase in fresh-from-college hires is predicted, seven percent fewer finance graduates (compared to the class of 2007) will be hired.
The finance, business, manufacturing and construction industries are suffering because of the credit crunch, the struggling housing market and low consumer confidence, Koc said.
"It's not as good a market as last year," he said. "If you're a senior this year, you should've been a senior last year."
Graduates from these industries may have to settle for less pay than previously expected, or they might need to consider working in a different field for a short time, Koc said.
However, not all is lost for graduates.
Because companies tend to budget for college recruitment well in advance, the class of 2008 may feel a buffer from the current economy.
Another thing graduates can look to with hope is the aging of their parents' generation - the baby boomers. Younger applicants are appealing to companies whose experienced core of baby boomers will begin to retire during the next decade.
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