This morning’s report showing an unexpected drop in new home building will increase worries about the strength and sustainability of the recovery. A housing recovery is a key component to the overall recovery, as home building and home buying result in significant job creation; not only in construction, but in consumer goods manufacturing, retail and service sectors. While the new construction data is certainly disconcerting, observers might be encouraged by one trend that appears to be gaining traction: more young adults finally leaving their parents’ home to live on their own. As reported by Bloomberg BusinessWeek, the improving job market will help the roughly 20 million adult children currently living with their parents realize their dream of independence. UBS Securities estimates that nearly 1 million new households will be created this year. And with each new household comes spending on new furniture, new appliances, new drapes and other consumer goods; purchases which further stimulate the economy and lead to more job creation. How important is housing to the economic recovery? Where will job creation be the strongest as new households are created? Will this year’s crop of new graduates be heading back to the nest or is the job market improving enough for them to live on their own?
AGGRESSIVE STRATEGY REQUIRED IN IMPROVING BUT COMPETITIVE JOB MARKET
This year’s crop of college graduates are entering the best entry-level job market in three years, but the competition for positions will continue to be fierce, according to the workplace authorities at global outplacement consultancy Challenger, Gray & Christmas, Inc., which offered some tips to help recent graduates improve their chances of job-search success.
“The key to success for graduates is to be aggressive. Yes, the job market is improving, but they are not only competing against their fellow graduates, they are also competing with people who graduated last year and the year before and may already have some work experience under their belt. Job seekers, regardless of age or experience, cannot afford to take a passive approach to the job search in the current environment,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
College graduates could not be entering the job market at a better time. While the previous two spring graduating classes entered during a jobless recovery, this year’s class is entering the job market just as it finally appears to be gaining real momentum. April marked the third consecutive month in which payrolls experienced net gains exceeding 200,000. Since February 1, the private sector has added 760,000 new workers, according to the Bureau of Labor Statistics.
Further evidence of the improving college grad job market is found in a survey of employers by the National Association of Colleges and Employers, which revealed that hiring of new graduates across all degrees and majors will increase by 21 percent.
“Despite the vastly improved conditions, college grads cannot simply send out some resumes and wait by the phone waiting for interview requests. Many young job seekers may still have to settle for a position that pays less than expected or is not quite on the career path they envisioned,” noted Challenger.
ENTRY-LEVEL JOB SEARCH ADVICE
Start job search immediately. Some college graduates might be tempted to enjoy one last summer of freedom before embarking on their career path. However, such a decision could be detrimental to the job search and cause prospective employers to question your commitment and work ethic.
Include volunteer work on resume, in interviews. Young job seekers often omit volunteer work from their resumes and interviews, particularly if the volunteer work is not associated with their chosen career path. They reason, “Volunteering at the homeless shelter has no relation to pharmaceutical sales, so why mention it.” However, nothing could be further from the truth. Volunteer work tells prospective employers a lot about your personality, character, work ethic and commitment, all of which are inevitably just as important in the hiring decision as the technical skills you learned in school.
Be aggressive; get out from behind the computer. The internet has made the job search easier than ever. However, too many young job seekers make the mistake of focusing all of their time and energy on combing online job sites and sending electronic resumes. The online job boards are just one tool available to job seekers and one that should not be neglected. However, most successful job seekers use multiple tools, and focus most of their time and energy on networking; meeting face-to-face with people who can help advance your job search.
Use your existing network. Many recent college graduates mistakenly conclude that they are unable to build an effective network. The assumption is that they are too young to have enough established contacts in a position to help. However, college graduates have a much bigger network foundation than they imagine. It starts with one’s parents and the parents of college and high school friends. Fellow graduates may also be a source of information or connections to employers. It is also important to utilize your school’s professors and alumni, all of whom are typically more than willing to provide guidance, connections and job leads.
Show willingness to work anywhere, anytime. One major advantage recent college graduates have over more experienced job seekers is that they are far less likely to be tied down by a house and family. They have the ability to go wherever the jobs are. Let prospective employers know that you are willing to go wherever they need your skills. With many companies experiencing faster growth in foreign markets, there is a good chance that a job with a multinational corporation could result in the opportunity to work overseas. Embrace these opportunities, because they don’t come often. Additionally, because of the expansion of the global economy, more jobs here involve working hours that line up with operations on the other side of the globe. Let employers know that you can work hours that other employees may be unwilling or unable to.
Keep options open. It is important to remember that your first job is not your job for life. Be open to exploring occupations and industries that may diverge significantly from what you may have prepared for in school. Every job provides foundational experience, even those that are unrelated to your desired career path.
With the nation’s employers finally beginning to ramp up hiring, this year’s crop of nearly 1.7 million college graduates should enjoy the most welcoming entry-level job market in the last three years. However, finding a position will by no means be easy and many spring graduates may have to settle for less money or for a job outside of their preferred career path, according to a new outlook from global outplacement consultancy Challenger, Gray & Christmas, Inc.
“Entry-level hiring has not returned to pre-recession levels, but this year’s graduates should find markedly improved job-search conditions. Colleges and universities around the country are reporting increased on-campus recruiting and surveys of employers indicate more graduate hiring, as companies rebuild their bench-strength after massive layoffs during the downturn,” saidJohn A. Challenger, chief executive officer of Challenger, Gray & Christmas.
After months of tepid job creation, it appears that employers are finally beginning to accelerate hiring. The latest data from the Bureau of Labor Statistics show that in 2010, private-sector payrolls averaged net gains of 98,000 new jobs per month. In the first three months of 2011, average monthly job gains have jumped to 188,000. In February and March alone, private-sector employers added 470,000 new jobs, the largest two-month employment gain since 2006.
The surge in hiring could not have come at a better time for college seniors, many of whom are just a few weeks away from graduation. A survey of 170 employers by the National Association of Colleges and Employers (www.naceweb.org) found that they plan to increase hiring of new graduates across all degrees and majors by 21 percent.
In a broader survey of 4,600 employers, the Collegiate Employment Research Institute at MichiganStateUniversity(www.ceri.msu.edu) found that hiring for graduates with bachelor’s degrees will increase about 10 percent. That represents the first increase in hiring for these graduates in two years, according to the Research Institute’s report.
Meanwhile, several campuses across the country are reporting increased recruiting visits by employers. The Texas Christian University newspaper, The Daily Skiff, reported that the number of on-campus interviews at the school was up 10 percent from a year ago and that the number of employers participating in the school’s spring career expo increased from 63 in 2010 to 80 this year. TheUniversity ofMichigan reports a 47-percent increase in on-campus recruiting since fall. Employer participation in the annual “Just in Time” job fair at theUniversity of California -Berkeley recovered to the point that the event returned to a two-day schedule after three years of being compressed into one day.
“There definitely is pent up demand for entry-level workers. During the recession, many companies made significant cuts to their workforce, retaining only the most talented and most experienced workers. As companies begin to rebound, they will focus on finding and cultivating the next crop of talent,” said Challenger.
The demand for entry-level workers can be seen in Bureau of Labor Statistics data showing that 20- to 24-year-olds saw the largest employment increase over the first three months of 2011. The number of people in this age group working grew by 308,000 or 2.4 percent. Employment among 25- to 34-year-olds and 35- to 44-year-olds each grew by less than one percent, and employment among 45- to 54-year-olds fell by 1.1 percent.
“In this hiring environment, recent graduates have two distinct advantages. First, they presumably have the basic skills necessary to succeed in the workplace, but, as far as the employer is concerned, they are blank slates. This is a good thing for an employer that wants the ability to mold its next generation of workers, as opposed to re-shaping someone who came from another employer with ingrained work habits, skills, and knowledge that may not fit with the company’s culture or approach to business,” said Challenger.
“Secondly, recent college graduates are extremely flexible in terms of where they work and when they work. They are not tied down by an underwater mortgage or a family, so they can go wherever the company needs them to go. And, because many don’t have the family commitments that many 30-something and older workers do, they are more willing to work longer and/or non-traditional hours,” he noted.
Even with the entry-level market improving, Challenger warns that finding a position will remain challenging and fiercely competitive.
“Graduates are not only competing for jobs with their fellow classmates, but they are going head-to-head with people who graduated in 2010, 2009 and even 2008. Some of these job seekers might already have some on-the-job experience, while others have been waiting tables or working in other non-career areas until the job market improved. Competition will also come from people who are currently employed, who see a healthier job market as an opportunity to seek greener pastures,” said Challenger.
“The competitive nature of the job market requires an aggressive approach to the job search. Soon-to-be graduates cannot expect to hand out a few resumes at job fairs and reply to some online postings and simply wait for the offers to come pouring in. Make no mistake, job fairs and online job boards have their place in the job search, but to be successful a well-rounded strategy is required.
“One of the most important elements of a successful job search, for both entry-level job seekers and their more-experienced counterparts, is networking and meeting face-to-face with people who can help advance the job search. College graduates who believe they are too young to have an effective network are simply wrong. Parents, professors, former internship supervisors and even college and former high school classmates can be valuable sources when it comes to building and expanding one’s network,” said Challenger.
“Finally, graduates should not confine their searches to a specific industry or occupation. The job market is not robust enough to provide the ideal job situation for every individual. It seldom is. So, someone may come out of college with the plan to find a marketing position with a consumer products company. There’s nothing wrong with having a specific goal like that, but don’t make the mistake of adhering to it so closely that you overlook opportunities in marketing for a chemical company or health care provider, for example,” he said.
Full report (PDF): http://www.challengergray.com/press/PressRelease.aspx?PressUid=170