How You Fit Into the Tight Job Market

Job Outlook 2009—Student Version

This fall’s turmoil in the economy and the crisis in the financial sector has had a devastating impact on the job market. Job prospects for the graduating class of 2009 are flat and possibly shrinking. Recruiters are cautious about making hiring predictions as many remain uncertain what will happen to staffing levels within their organizations over the next six to 12 months. At the moment (November 2008), recruiters are saying that they expect college hiring to stay even with last year’s levels.

That means employers will be hiring. However, instead of growth in the job market (typically, employers have more jobs to offer to the current graduating class than they had for previous graduates) there are the same number of or fewer opportunities expected.

The questions are: Which graduates are in demand? How can you make yourself the most attractive job candidate in the group being interviewed? And, what can you do if you don’t get an offer from your first- or second-choice employer?

Even if you’re not graduating in 2009—you’re a freshman, sophomore, or junior—take the information as advice to ensure a better standing in the job market when it’s time to graduate?

Which majors are in demand?

Business, engineering, and technical majors from the Class of 2009 are most in-demand. At the bachelor’s level, federal government employers appear to be the best bet for the top five majors in demand. At the master’s degree level, nearly 60 percent of respondents who plan to hire master’s degree candidates will target those with M.B.A.s. At the doctorate degree level, employers are looking for engineering and computer-related degrees.

Also, employers are looking for new graduates with associate degrees in business, engineering, drafting, design, and computer-aided design (CAD).

The good news—that employers expect to know more about their organizations’ hiring needs by Spring 2009—is that almost three-quarters of employers responding to the Job Outlook 2009 survey said they were making plans to recruit on campus in Spring 2009. More than half said their plans were firm; 22 percent said their plans were tentative.

Who's hiring (bachelor's degree level), by employer type 

Major	Most Interested Employers
Accounting	Accounting (public) Financial Services Utilities Government (Federal)
Mechanical engineering	Government (Federal) Chemicals & Allied Products Food & Beverage Processing
Electrical engineering	Government (Federal) Electrical & electronic machinery & equipment   manufacturers Chemicals & allied products
Computer Science	Computer software development & data processing services Communication Services Government (Federal)
Business Admin./Mgmt.	Insurance Financial Services Food & Beverage Processing Government (Federal)

International students

The hiring outlook for international students remains virtually unchanged from last year. Employers are most interested in graduates who will earn computer science degrees, although there is also interest in grads with engineering degrees.

Salary increases for 2008-09 graduates

More discouraging job market news. The number of employers planning to increase their starting salary offers has dropped. Those who will increase their salary offers will offer smaller increases over last year’s average offers.

Employers  With Plans to Increase Starting Salaries to Bachelor's Degree Students

Graduating Class	Percentage of Employers
2004	49.2
2005	70.3
2006	75.1
2007	79.3
2008	78.5
2009	59.1

Of those employers who indicated plans for starting salaries to master’s degree graduates, 89.7 percent plan to offer a salary increase. And, the overall planned average increase is down significantly to 3.7 percent, compared to last year’s planned average increase of 5.2 percent.

Will you get a signing bonus?

As odd as it may seem—in a time when employers are reluctant to hire or offer higher starting salaries—some employers will offer signing bonuses. More than half of employers plan to offer signing bonuses to selected—not all—new graduates.

Bonuses are more likely to go to graduates with one of the degrees in high demand (See "Which majors are in demand?") who are taking jobs with utility companies, consulting services firms, food and beverage processing companies, electrical and electronic machinery and equipment firms, or chemicals and allied products companies. Those least likely to offer bonuses are the federal government and retail/wholesale firms.

In addition, the “average” bonus being offered is slightly lower this year. The average is $3,934, down from last year’s average of $4,450. The exception is that graduates with bachelor’s degrees in chemical engineering may be offered higher average bonuses compared to last year.

Employers offer top benefits

This is good news. The top five benefits and policies employers say they coincide with the top five new college grads say they want. Medical insurance, annual salary increases, 401(k), dental insurance, and life insurance are the top five in both camps.

Plus, more than half of employers verified that they offer some benefits that seem to fit the work/life balance demanded by the latest group of graduates, including family-friendly benefits, flextime, and bonus/commission plans.

Benefit/Policy	Percent of Employers Offering	Student Rank*
Life insurance	99.1%	5
Medical insurance	98.7%	1
401(k) retirement plan	98.7%	3
Dental insurance	98.7%	4
Annual salary increases	97.3%	2
Employee assistance counseling program	91.2%	11
Tuition reimbursement	90.8%	7
Casual dress policy	81.6%	14
Bonus/commission plans	79.0%	8
Planned social activities	73.6%	15
Frequent performance reviews (more than one per year)	62.1%	12
Flextime	60.9%	9
Benefits to domestic partners	60.1%	N/A
Family-friendly benefits	54.3%	6
More than two weeks vacation	52.2%	13
On-site fitness center	44.1%	20
Pension plan	38.7%	10
Telecommuting	32.7%	17
Stock options	25.6%	16
Company car	11.9%	18
Day care facilities	10.5%	19
Payback of existing student loans	1.8%	N/A
*Source: NACE 2008 Graduating Student and Alumni Survey

Skills employers want and new graduates lack

It’s important that you are knowledgeable in your field: an engineer must have engineering knowledge; an accountant needs an accounting background; a nurse needs a medical education. Your GPA is indicative of what you have learned in your field. More than half of employers recognize this by screening applicants by GPA, using a cutoff of 3.0. Add an internship or two in your field and you show an employer that you’ve tested your new knowledge.

However, employers say other skills and abilities help job seekers stand out from the crowd of degree-holders. They want new hires who will fit in with co-workers and into the workplace, and are able to get the job done.

Unfortunately—and ironically—the very qualities employers look for are the qualities they find lacking in many new graduates. Employers say new graduates lack face-to-face communication skills, especially writing skills. They say many students tend to lack presentation skills, teamwork skills, and overall interpersonal (gets along well with others) skills.

Employers also note that new grads tend to lack a good work ethic. Some say students have trouble with time management and are unable to multitask in order to meet deadlines. Some new hires do not have realistic expectations for their new positions: they are not loyal to the organization and they “have a high sense of urgency and want to climb the ladder overnight.” Other employers say new hires lack professionalism: they lack maturity and knowledge of business etiquette, including how to dress appropriately.

Start Now. Call on Campus Resources for Help.

It’s a buyer’s market, meaning, employers have a minimum number of positions to fill, so they’re going to be rather picky about the credentials of the new graduates they hire.

Here’s failsafe advice: Start today. Stop in at your college/university career center. Trained, professional staff members are available to guide you through the job-search process and teach you how to take the various steps with success.

These experts can critique your resume; help you put together an award-winning cover letter; practice interviewing with you; teach you the etiquette necessary to make it through a luncheon interview; show you how to dress professionally for face-to-face conversations with employers; and give you ideas for how to demonstrate those much needed qualities and skills employers look for.

Plus, these career counselors know the employers—they work with them on a regular basis—and can put you in touch with the organizations looking for new hires. (Note: A recent online ad for “career advice” put the cost at more than $800. Students will find these services are free or very low cost on campus.)

Don’t be fooled. A career counselor won’t find you a job or “place” you in a position. They’re on campus to teach you something more important: the knowledge to successfully find a job today—and in the future when you’re looking for your second, third, or 10th position!

Beginning your search early is smart. According to an early 2008 survey, of those graduates who began their job searches before March 1, more than half had secured a post-graduate job by April 30. With the tight job market, it may pay to be an early bird!

Get experience—it pays!

Work experience adds considerable value to your resume. Ninety-five percent of employers prefer to hire new graduates who have some work experience.

When employers want to hire someone for a full-time position, many look first to their own intern pools. But besides a potential job offer, internships pay in other ways, including in actual compensation.

Among employers who pay their interns, the average hourly wage at the bachelor’s degree level is $15.99 to $17.79. This amount could be higher or lower depending on the employer, your degree, and the location of the internship.

Go where employers are looking

If you know where employers will be looking for new hires (and interns), you can be there for them to find. When employers rate the effectiveness of recruiting methods, they rank the following places as their top 10 picks:

1. On-campus recruiting
2. Organization’s internship program
3. Employee referrals
4. Organization’s co-op program
5. Career/job fairs
6. Faculty contacts
7. Job postings on the company web site
8. Job postings on the campus web site
9. Student organizations/clubs
10. Job postings on commercial web sites

This means you should be sure to participate in on-campus activities such as information sessions, on-campus interviews, career fairs, and student organizations—especially those related to your field. Get experience by taking an internship (or two) or getting involved in a co-op program in your field.

Prepare three things

Repeat after me (we say this in the Job Outlook-Student Version every year). Employers tell students to go to interviews armed with three things that can improve the outcome of your job (or internship) search:

1. Research 

   Take 60 minutes, go online, and learn everything you can about any company you might want to work for. Your goal is to be able to articulate how you will be a good fit within the company. If you have trouble putting your research into words, ask a career services counselor for help. This is the easiest step of them all—and often the most neglected!

2. Experience 

   An internship or co-op experience (or several of these positions) on your resume will tell an interested employer that you’ve tested your career up close and you’ve learned some of the basics of the workplace. 

   Employers see internship programs as their organizational talent pools. Employers prize relevant work experience even if it’s with another organization.

3. Have a little class 

   Just because you put together a rudimentary resume in “career class” in high school doesn’t mean you have the skill to crank out a resume now. Among the skills you need to learn in career center workshops:

   • how to write a cover letter that markets you to employers.
   • how to compose a well-written, error-free resume that articulates your skills and course work as a match for the company and position.
   • how to interview and explain the value you can bring to a potential employer.

Research, experience, and preparation: Once you have these, you’re going to be a better fit in the job market.