Wednesday, March 4, 2009

Job Forecast for College Grads Grim – If Only There was a Brain Behind the Curtain!

Hat tip to Point for the Time article… I was saving this clip for all the people who are buying into the “Chinese miracle” stimulus plan… Oh yeah, thousands of empty factories and millions of unemployed, but the government pumping money into the system is going to turn all that around! Ha, ha… Where’s the demand come from? Did consumers in the U.S. and Europe suddenly get the ability to service more debt? LOL, so, this clip is for those buying Asian stocks today and for the future crop of college grads…

Wizard of Oz – If I only had a Brain:

Job Forecast for College Seniors: Grimmer Than Ever

By Laura Fitzpatrick Wednesday, Mar. 04, 2009

Smith College's career office sent its jittery job-hunting seniors a letter last month with a reassuring message: "There ARE jobs, and you can find employment." Unfortunately, there are far fewer jobs than anticipated, according to a report out today from the National Association for Colleges and Employers (NACE). The companies surveyed for the group's spring update are planning to hire 22% fewer grads from the class of 2009 than they hired from the class of 2008, a big letdown from the group's projections in October that hiring would hold steady. Some 44% of companies in the survey, conducted last month, said they plan to hire fewer new grads, and another 22% said they do not plan to hire at all this spring, more than double last year's figure. "If you were a student and were out there [interviewing] in the fall, you probably had a decent chance of getting a job," says Edwin Koc, director of strategic and foundation research at NACE. "But frankly, the spring does not look good."

Job prospects for college grads, which had been on the rise since 2004, dropped in virtually every sector this year. The most dramatic decline was, not surprisingly, in finance, which hemorrhaged 71% of expected job openings. Less expected but equally troubling is the 37% decline in hiring for professional services, which include accounting and engineering. "Poor hiring estimates from this area speak to the depth of the recession in the college labor market for the class of 2009," the report says.

Government is essentially the only industry planning to hire more new grads this year than last, as the new Administration expands and a graying workforce retires. (The only other sector with plans to increase hiring — that of distribution, transportation and utilities — had too few respondents for the projection to mean much.) The uptick in government recruiting is obvious to students. Last year, notes Dorothy Kerr, executive manager of Rutgers University's career services, there were just 15 government and nonprofit employers at the annual Big East Career Day in Manhattan's Madison Square Garden; others were kept out to make room for 135 private-sector employers. This year, just 80 private companies signed up for the March 13 event, where 30 federal agencies will be on hand accepting résumés. "The good news is, the Federal Government is definitely hiring," Kerr says. Still, according to the NACE report, the projected increase is less than 6%.

Not only are fewer companies hiring, but more of those with openings are offering internships instead of full-time spots. Only a third of on-campus recruiters this year are looking to sign both full-time employees and interns, the report found, down from an average of two-thirds for the classes of 2007 and 2008. And 16% of employers will be hiring only interns, nearly double the percentage that did so last year. "I explain to [the students] it's like taking another course, and paying to take that course," says Middlebury's executive director of career services, Jaye Roseborough.

Experts say more college grads may seek employment in fields that require comparatively little education. "Even if you're surviving by being a coffee barista, it's still better than just staying home," says Koc. "With the job market as difficult as it is, I don't think that students have much of a choice."

Still, serving lattes for minimum wage plus tips is a painful prospect to the average college student, who graduates with $21,000 in the red. Tuition costs could also explain why graduate schools, traditionally a refuge in tough economic times, have seen uneven application numbers this year. Lance Choy, director of the career development center at Stanford, notes that grad schools were a popular backup a few years ago during the dotcom bust, but applications are flat this year. "Who needs more debt when the job market is looking rather grim?" he says.

Meanwhile, schools are pulling out the stops to help students beat out the competition. Counselors everywhere are encouraging students to turn to their alumni networks for help. The University of Maryland has conducted workshops with an emphasis on networking. The career office shared by Haverford and Bryn Mawr recently gave each senior 50 business cards listing their name and major.

For students who have already managed to snag an offer, they might want to keep their business cards handy. According to NACE, as many as 8% of employers will be forced to rescind at least some of the offers they made in the fall. "In this economy, we don't even use the terminology 'sewn up' anymore," says Roseborough. More like coming apart at the seams.
My own daughter is about to graduate from the University of Washington, and my son is about to enter college. Each generation worries about their children, how they will get educated, how they will afford housing… you know, how they will live the American in debt dream.

It sure sounds nice when we talk of providing college for everyone, but is that really the best use of society’s resource? Do you need a college degree to work at Wal-Mart? No, no, I’m serious! Can we all be leaders and executives? Of course not, but MY KIDS are different and special and deserve nothing but years of college because they are our future!

In all seriousness, if you take it to an extreme then you start to see that not everyone should go to college. And let’s face it, college has gotten very expensive. The economy is currently separating the wheat from the chaff. That’s what economic downturns do. There will be FEWER people going to college in the future as spending thousands doesn’t number out for everyone in these circumstances. Thus the price of education will come down too, and that’s a good thing in the long run, but the current set of graduates are going to suffer a little in the short run.

Admittedly if you are going to spend taxpayer money that doesn't exist, I'd rather put it into college than into the banks! But do it too much and you risk reinflating the "education bubble" and not letting the free market (if such a thing still exists) bring the costs down.

If it were up to me, there would be education about money and the history of money in school. As kids get older I would tech them about the relationship of freedom and security and how they interact with money. I would tech them to defend the Constitution and to not tolerate abuse of their money system. Most people think that when they pull back the curtain you will find the President and his people. That’s not true. When you pull back the curtain, you will find a central banker standing there:

Wizard of Oz – Man Behind the Curtain: