Job Search Will be Harder for '09 Grads

The job search for anyone graduating in 2009 will most likely be a harder one.

Due to the slowing economy and financial industry problems, many employers are decreasing their hiring outlook for next year. According to a survey by the National Association of Colleges and Employers, most employers plan to hire only 1.3 percent more graduates in 2009 than they hired this year.

That's the weakest hiring outlook in six years, according to an article by The Wall Street Journal. Two months ago, another survey, which polled 219 employers, 146 who also responded to the newer survey, predicted a 6.1 percent increase in hiring.

Last year, employers expected hiring for the class of 2008 to increase by 16 percent. However, by this spring, that number had fallen to 8 percent. This means many people are having to take on extra hours or part-time work.

"Some of the decline reflects the weakened financial sector, with employers like Lehman Brothers Holdings Inc. in bankruptcy protection and others, including Merrill Lynch &Co., being acquired," the article notes. "But other employers are tightening their belts as well. Insurer Progressive Corp. last fall expected to hire 4,000 college graduates in 2008. In fact, the company has hired fewer than 1,000 this year."

General Electric Co. hired about 900 undergraduates and M.B.A. graduates this year, but expects to see a 10 percent decrease in hiring next year. Target Corp. and Walgreen Co. also plan to hire less graduates, and both companies plan to open fewer new stores next year.

While jobs are decreasing, the number of college graduates is increasing. It is expected colleges and universities will give out 1,585,000 bachelor's degrees this school year, up from 1,544,000 during 2007 to 2008. Salaries also should decrease, as experts expect the average starting salary in 2008 of $49,224 to remain stable or decline.

While most companies have cut back college recruiting efforts some industries are continuing to hire. The federal government, for instance, is increasing its college recruiting efforts in anticipation of worker shortages. By 2016, about 61 percent of full-time government employees will be eligible for retirement.