Job Outlook 2009: Special Report

College Hiring Flat for Class of 2009

The economic turmoil experienced during the first month of the 2008-09 college recruiting season has had an impact on the job prospects for this year’s graduating class.  For members of the Class of 2009, the job market is starting to shrink as employers react to the recent events on Wall Street and in the financial sector by slowing their hiring pace.

In light of recent economic developments, employers re-evaluated their hiring projections they had made in August through a new poll conducted by the National Association of Colleges and Employers October 6 – 17.

Employers said they have reassessed their hiring needs downward, although a smattering of employers expect to hire more graduates than they originally projected.

Employers now say they expect to decrease their hiring numbers for the Class of 2009.  They expect very little growth, but no real decline over the hiring levels for the Class of 2008.

Employers hesitate with making hiring plans as they watch the economy, and if economic trends continue, the job market will continue to shrink.

As Figure 1 details, employers who participated in both the August and October polls are expecting to decrease their original hiring levels by 1.6 percent. Nevertheless, when compared with the number of actual hires from these firms for the Class of 2008, the expectations for the Class of 2009 are still slightly ahead.

In the August poll, approximately one-third of respondents said they were re-assessing their projection of college hires downward. With the October poll, 52 percent of employers  say that they will be hiring fewer graduates during the 2009 recruiting season than they hired from the Class of 2008; 34 percent still anticipate hiring more graduates, and 14 percent expect to hire the same number as they hired in 2008. (See Figure 2.)

The decreased expectation for college hiring that occurred between August and October was broadly felt across industries. Only government as a sector saw a significant increase in hiring expectations, while manufacturing and professional services remain essentially flat during the period of economic turmoil. All other industry categories decreased their hiring expectations for the Class of 2009. (See Figure 3.)

Updates: NACE will continue to monitor the job outlook for the Class of 2009. The Salary Survey Winter report, scheduled for distribution in late January, will provide a first look at demand for new college graduates by specific discipline.