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

Seth Perlman / AP file

Job seekers at a job fair at the University of Illinois Springfield, September 2011.

NEW YORK - 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.

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.

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Discuss this post

You go grads! The average annual salary of a person with a bachelor's degree (52k+) is 8k more than the average annual wage of a carpenter (44k+). If you figure that a carpenter works for the 4 more years that the graduate is in college, they are even.

  • 1 vote
Reply#1 - Sun Apr 1, 2012 10:01 AM EDT

Not quite even. The carpenter doesn`t have a student loan to deal with.

  • 2 votes
#1.1 - Sun Apr 1, 2012 12:57 PM EDT

Denver, a college education is not all about earning money. Knowledge trumps ignorance. And the carpenter's salary will top out, but the grad's salary will continue to rise. Also, the carpenter is more likely to experience unemployment when building slumps, like now.

    #1.2 - Sun Apr 1, 2012 10:12 PM EDT

    Larry, your argument is valid. but a carpenter can start his own business and make quite more than the average grad. He will have to acquire or afford new skills of course, so learning is still involved. there's always a way up for the willing and able. Like hityme mentions the carpenter doesn't stress about paying student loans as he works.

    Overall I'm for formal college education, but the cost? I guess costs wouldn't matter if good paying jobs were behind. Are we there yet? I hope so, America has the finest Universities in the world.

      #1.3 - Mon Apr 2, 2012 1:51 AM EDT

      Larry,

      I agree with you that a college education is not all about earning money ... that's just the way it is advertised. I also agree with you that a college graduate has more opportunities than a carpenter, but the fact that some college graduates make much more than most carpenters doesn't change the statistics for the groups as a whole. I agree that knowledge is better than ignorance, but it has been conclusively shown that a college degree will not cure stupidity. I draw your attention to a NY Times article in December 2009 that states that all but 27 congresspeople and all but 1 senator have college degrees.

        #1.4 - Mon Apr 2, 2012 8:19 AM EDT

        "If I was a carpenter and you were a lady..."

        Not everybody wants to be a carpenter. Some want to be engineers or architects.

        If you are good at what you are doing, money will usually follow.

          #1.5 - Mon Apr 2, 2012 1:42 PM EDT
          Reply

          Your problem is middle aged people with no college experience getting jobs.

            Reply#2 - Sun Apr 1, 2012 10:57 AM EDT

            And those are the jobs the Mexicans dont want.

              #2.1 - Sun Apr 1, 2012 1:17 PM EDT
              Reply

              You can be sure that by the time the Nov. Pres. election rolls around we will have 100% employment. Dont take my word for it, Obama will be telling you the same thing.

              • 1 vote
              Reply#3 - Sun Apr 1, 2012 12:47 PM EDT

              The same demographic that voted for Obama last election will be working short term, the rest will be out of work. Sort term ending around Jan 2013. Don't buy it now...wait until Feb 2013 and see. That is how Obama stimulus works because he can do more after the election.

                Reply#4 - Sun Apr 1, 2012 1:28 PM EDT

                If I was still teaching high school honors chemistry and physics, this is one of those articles I'd read to the kids before class and then post on the wall. Note that every job that was identified in this article required MATH SKILLS. Yet we continue to offer minimal and poorly designed high school math classes, putting us well behind most of the developed world. For example, our high schools teach one geometry class compared to THREE years in Germany. Geometry has value in carpentry, frame adjustment in auto repair, as well as more academically-oriented white collar careers. But our education leaders don't want anyone to say anything's been left out, so our foolish curriculum includes 35 different topics! That's an average of one per WEEK. How well do you thing the average student learns any of them? The Germans teach 9 per year: that's one per MONTH.

                • 1 vote
                Reply#5 - Sun Apr 1, 2012 1:43 PM EDT

                This is the fault of that socialist Muslim - Barack Obama. If he hadn't insisted on propping up GM and Chrysler in a government supported bankruptcy restructuring instead of letting them die as recommended by Romney, this wouldn't have happened.

                Don't they know that "you gotta suffer if you want to sing the blues?"

                  Reply#6 - Sun Apr 1, 2012 7:37 PM EDT

                  When it comes to unemployment it’s been a tale of two recessions, with level of education playing an unprecedented role in whether you’ve been pink slipped or not. Getting a degree from High Speed Universities is the only solution

                    Reply#7 - Mon Apr 2, 2012 3:42 AM EDT

                    No College Degree? New data suggests jobs picture Is Bleak for those with out college degree, it is the reality get a degree from "High Speed Universities online

                      Reply#8 - Mon Apr 2, 2012 3:45 AM EDT

                      Those whose been on the job for 20-30 years, without a college degree, employer's expect experience worker's to TRAIN these grads, without the pay the new grads are receiving.

                      College Degree's are like High School Dipolma's Without the EXPERIENCE! Difference being, you're in hock for DECADES, trying to pay it off, HOPING to find a Good Paying job, to help eliminate the expense ... GOOD LUCK!

                        #8.1 - Mon Apr 2, 2012 9:13 AM EDT
                        Reply

                        Now they are back to hiring American College Graduates, I'm wondering what kind of salaries are being offered, those that they pay college graduates from India, China, etc? Whose salaries are 1/3 LESS than what they pay American College Graduates!

                          Reply#9 - Mon Apr 2, 2012 8:14 AM EDT

                          What about the experienced (older) college grads who've been layed-off from their high tech jobs? If you haven't had a job for a while, don't expect an interview. And SelfEmployed = UnEmployed, even if you can show good earnings from it. There is Ageism In US Tech.

                          • 1 vote
                          Reply#10 - Mon Apr 2, 2012 12:42 PM EDT
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