After grad job slump, big hiring is back at U.S. colleges

NEW YORK Sun Apr 1, 2012 12:46pm EDT

File photo of job seekers at Rutgers University. REUTERS/Mike Segar

File photo of job seekers at Rutgers University.

Credit: Reuters/Mike Segar

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NEW YORK (Reuters) - Sean Chua expected the hunt for his first job after college to be tough. After all, he watched his brother struggle to find a position when he graduated back in 2008.

But his fears were unwarranted. The 21-year-old justice major at American University sent out only seven resumes before getting an offer earlier this month from IBM for an IT consulting job, making him a beneficiary of a turnaround in the labor market for U.S. graduates. "My mom's first position was with IBM so she is particularly proud," says Chua.

Hiring is back in a big way on many college campuses, one of several signs a recovery in the U.S. jobs market is gaining traction. After four years during which many students graduated to find no job and had only their loans to show for their studies, most college campuses are teeming with companies eager to hire.

A survey by the National Association of Colleges and Employers (NACE) found 2012 hiring is expected to climb 10.2 percent, above a previous estimate of 9.5 percent.

Companies such as General Electric, Amazon, Apple and Barclays Global are looking for new staff, even if some firms remain below the pre-recession levels of new hiring. In another sign of the recovery, some first-time job seekers are receiving multiple offers.

At University of North Carolina-Chapel Hill, the career service office has seen up to now a 7.4 percent increase in the number of interviews of students by potential employers from last year and the number of companies seeking to recruit for full-time jobs is up 9.2 percent.

Undergraduate business majors reporting full-time job offers is up about 10 percent.

Career experts at a dozen of U.S. schools said they have seen an increase of 15 to 30 percent in the number of companies attending campus career fairs. At University of Florida, the fall career fair garnered 15 percent more companies in attendance than in 2010.

And 150 companies asked to conduct interviews versus about 100 in recent years, said Ja'Net Glover, associate director of employer relations at the school.

The increase in demand was so significant that it was the first time in years the school had to use both the first and second floors of the school's basketball facility for interviews.

"It's kind of like a no-brainer," says Kathy Sims. Director of Career Services at UCLA. "The economy is better and the college recruitment market is improving."

While the U.S. jobless rate fell to 8.3 percent in February, unemployment among college graduates over the age of 25 stood at 4.2 percent. Historically, their jobless rate is half that of Americans with only a high school education. Over the recession, unemployment among graduates climbed as high as 5 percent, sparking protests over the rising tuition cost of some U.S. colleges.

U.S. unemployment data for March, due for release on April 6, is expected to show a total of just over 200,000 jobs were created in the month, keeping the overall unemployment rate at 8.3 percent.

BACKLOG FROM PAST YEARS, INTERNS SOAR

College graduates' earnings are also on the rebound. NACE says the median wage for first-time job seekers after college for 2012 is up 4.5 percent higher than a year ago to $42,569.

That initial pay level can resonate over the span of a career. Several studies show that the life-time earnings for workers who enter the labor force at time of economic recession are lower than lifetime earnings of those who are hired amid an economic recovery.

Given the tepid recovery of the economy, some caution is required.

In 2008, many college graduates who had already accepted job offers were later away. After the run of lean years, many graduates are stuck in low-paying jobs and professions that never intended to follow, meaning there could be a backlog of well-educated workers who need to get their careers on track as well as new graduates.

However, with a wide range of employers -- from automakers to investment banks -- back on campus offering internships and full-time jobs, and not just to engineering, computer science and math majors, the outlook for the Class of 2012 looks rosy.

General Electric wants to hire 5,000 interns this year, up from its usual 3,000 to 4,000. Since 70 percent of its full-time hires come from the interns pool, Steve Canale, head of global recruiting, said that uptick will also translate into more full-time jobs after graduation.

"(Companies) are saying, 'we have an aging workforce, and we have to replenish the pipeline.' GE has always done it, but this year a lot of other companies are also reloading their talent pool," Canale said.

Chrysler said it plans to hire 400 interns this year compared to 256 in 2011. The automaker has also hired almost 4,000 salaried employees since June 2009, about a quarter of which are new college graduates.

The pick-up in hiring extends to industries that were among the hardest hit during the financial crisis. Schools report that banking and financial services companies have returned to campus for the Class of 2012.

It's a stark contrast from just a few years ago when smaller firms appeared on campuses to replace the corporations no longer showing up.

"Even students with lower grades are finding opportunities," says Notre Dame's Svete, who believes job placement at the school is up about 7 percent. In 2009, only 75 percent of students had jobs or plans for graduate school at graduation. This year, the school expects that to climb to 85 to 88 percent, closer to the 90 percent level of 2007.

Nathan Pace, a senior at American University, hasn't yet found a job, but is confident for his future job. He started the college four years ago and he has since seen each class of graduating seniors have better luck finding jobs.

Many of his friends recently secured job offers. "The vibe on campus is that people are excited," says Pace.

(Reporting By Jilian Mincer and Jennifer Merritt, Editing by Tiziana Barghini; Desking by Andrew Hay)

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Comments (8)
AdamSmith wrote:
Good luck to these graduating students.

But be forewarned that if you’re in a technical or intellectual field, like engineering or computer programming, you’d better save every dime you get paid today. That’s because the H1B visa program, and the L1 visa program, dreamed up and lobbied for by big American companies, is going into high gear right now.

India is a huge country with 1.17 billion people, and the H1B visa program is going to be used by your American employer to replace as many of you high-cost Americans as it can with far cheaper low-cost intellectual labor from the huge cities India.

The H1B visa program, on April 1, 2012, is opening the flood gates again, this year for 85,000 more low-cost engineers and computer programmers, mostly from India. That’s in addition to the 1 million that are already here, who have already displaced 1 million American engineers.

For the past 9 years, ever since H1B started, wages for American engineers and computer programmers have been going down, down, down.

This year’s 85,000 H1B limit was way over-subscribed, because there is a huge pent-up supply of Indian college graduates who want to come to America under the program. Many Indian schools for profit have sprung up, and are becoming more and more organized, and pumping out huge numbers of graduates, all aiming their graduates for migration to America under the H1B and L1 visa programs. There is huge political pressure to keep the H1B and L1 programs, and to vastly expand the limits.

This is exactly what the American companies want. Their whole reason for the H1B and L1 visa programs is to reduce their biggest operating cost — wages — in order to increase their profits and competitiveness.

I’m rooting for you American graduates. If you want decent careers and decent wages, take time to vote against the American politicians who do the bidding of big American companies.

Iran?
The news headlines tell you that Iran is your enemy. But the country that will destroy your careers, your livelihoods, your income — that country is India. India will not use bombs, but rather the H1B and L1 visa programs. It is already destroying America today.

Apr 01, 2012 1:33pm EDT  --  Report as abuse
AdamSmith wrote:
The H1B visa program has brought over one million low-cost engineering and computer programming graduates to America, mostly from India, to displace American engineers and computer programmers, thus increasing corporate profits.

Among politicians, the most vocal proponents of the H1B program are:

#1 – Mayor Michael Bloomberg of New York, Democrat. Bloomberg is a billionaire, and the 30th richest person in the world, according to Forbes list. His company is an employer of engineers and computer programmers, thus he directly benefits from reduced wages in these fields. Bloomberg wants to greatly expand the H1B program.

#2 – Senator Chuck Schumer of New York, Democrat. Schumer has repeatedly supported the H1B program and advocates expanding it.

Both these politicians are doing great damage to the American tech worker and the American college graduate.

Apr 01, 2012 2:02pm EDT  --  Report as abuse
txgadfly wrote:
What is the proportion of hires out of college by race, ethnicity and sex, and how do those numbers compare with the population breakdown of the USA? Be sure to break down all categories by all the others. So that, for instance, one should easily see in the table the percentage of black females in the population and the percentage of black females among college graduates. Females should be broken out by race and ethnicity, as should males. “Whites” should be broken into ethnic groups no larger numerically than “native Americans” or “Samoans”, including separation of those sub groups by sex.

Overall, data broken out in such a way should make America’s social goal to greatly reduce white protestant male participation in the society clear, and give us a measure of our progress to obliterate their presence in our country. As a society, we need to decide a line where we will have achieved our goals and need to cease active discrimination against these people, if there is such a point. Of course, matching the results with those of the buffalo is an attractive possibility too. But it should be an active decision rather than the cumulative clattering of a bunch of rice bowls.

Oh yes — the H1B visa program is a vital part in implementing these plans, and has been massively successful. Only foolish native born Americans study science or engineering. They will have no jobs, just huge debts and frustrations.

Apr 01, 2012 2:51pm EDT  --  Report as abuse
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