Some industries are facing significant job cuts that will result in fewer entry-level positions for the graduating Class of 2009 because the United States economy is “going to slow down,” Commerce Prof. Bill Wilhelm said. “There will be consequences.” Yet while some industries and companies experience a downturn, other employment opportunities, such as non-profit organizations, are looking to take advantage of the hiring gap left by these industries.
Economies of sale
The finance industry has probably experienced the worst of the current economic downturn, Wilhelm said. He noted that many finance majors intern during the summer before their fourth year, and more often than not, return to the University with job offers; however, this year fewer students received job offers. For example, those who interned with Lehman Brothers and received job offers lost those offers in September, Wilhelm said.
Although the recession will hit Commerce students the hardest, Wilhelm said, the economy is likely to affect graduating students of all majors.
“I think it will affect everyone down the road, whether you agree [that] we’re in a recession or not,” Wilhelm said. “I will be astonished if unemployment levels didn’t rise.”
According to the Department of Labor’s employment summary released in September, unemployment has increased 1.4 percent — or by 2.2 million people — in the past 12 months, although there was no change in the unemployment rate between August and September. The financial industry cut 17,000 jobs in September, with securities and investment firms experiencing nearly half of that decline. Employment in professional and business services also experienced a loss of 27,000 jobs in September, according to the summary.
Economics Department Chair William Johnson, however, said he believes the economy has not hit rock-bottom yet.
“I don’t think we’ve the seen the worst of the recession,” Johnson said. “Nobody knows exactly how this is going to play out. It looks like we’re in for a relative serious recession.”
Other options, other opportunities
Both Johnson and Wilhelm suggested alternative options for students who will graduate in May. Finance majors may want to take a look at non-banking firms that in the past were unable to compete with banking firms in recruiting students. “The options that students are going to have are going to be thinner,” Wilhelm said, adding that he believes non-banking firms will be more successful in hiring graduates for entry-level positions.
Johnson also said now seems to be an opportune time for students to consider attending graduate school as well. He explained that the cost of attending graduate school is not simply the cost of tuition but the cost of job opportunities that a student will forgo in continuing his or her education.
“In a bad labor market where you can’t get a good job, the cost of continuing your schooling is lower,” Johnson said. “It may make sense for more people [to attend graduate school].”
He also said there is some evidence that shows that students who graduate in slower economic times are usually affected throughout their entire career. “The effects diminish over time,” Johnson said, but “you don’t get the first position you might have gotten.”
For those, however, who would prefer to work in a less traditional setting, students can consider non-profit organizations and other service organizations such as AmeriCorps, a national service network that encompasses other organizations such as Teach for America and Habitat for Humanity.
Kendra Nelsen, director of student services at UCS, noted that while the University already ranks first compared to other medium-sized college and universities in its number of alumni Peace Corps volunteers, organizations such as the Peace Corps are becoming more visible in the eyes of students.
“We’ve got employers that are seizing on this opportunity where certain market sectors are dropping,” said Ladd Flock, director of College of Arts & Sciences Career Services. He added that an AmeriCorps representative came this semester to the University for the first time in years. “We do see employers that are stepping in to fill the void that are left by financial services.”
Nelsen added that one major does not necessarily lead to one career.
“We live in a time in history where the expectation — the norm — is very few people work for one organization their whole life,” she said.
Recent College graduate Elizabeth Murphy, who is currently working in Quetzaltenango, Guatemala and studying global health, said students should not feel overwhelmed when choosing their first career.
“Don’t feel pressured to go straight into your career and think that it has to be your long-term profession,” Murphy said.
Students working in non-profit and service organizations have the opportunity to develop skills that will serve them in the future no matter what career path they follow, Nelsen said. Recent graduates working in these types of organizations can develop analytical and budget skills as well as learn how to be a creative problem solvers.
“You’re also typically learning how to be pretty resourceful,” Nelsen said, noting “you’re not working in a big corporation” where many resources are readily available.
In addition to skill development, Flock added that working in public service is valued by many employers.
Bankable skills outside of finance
After graduating in 2007 with a degree in architecture, Chris Ternes decided to work for Habitat for Humanity. Ternes said while he has helped others, his experience has helped him as well.
Ternes, a volunteer construction crew leader, is responsible for organizing volunteers who come to job sites to construct houses. He said his experience with Habitat for Humanity has allowed him to develop interpersonal skills because he is responsible for directing and communicating with many volunteers every day.
“Those are really invaluable skills,” he said. “In the more traditional working world, you don’t have the opportunity to develop those skills if you’re sitting at a cubicle or behind a computer.”
Murphy, meanwhile, said she also has gained knowledge through her experience. After graduating, she received a University grant from the Pfizer Initiative in International Health, allowing her to conduct a project in the field of global health in partnership with the Primeros Pasos organization, which works to provide affordable health care and health education to the rural community of Quetzaltenango.
Not only has Murphy learned and experienced the obstacles of providing health care in a low-resource setting, but she said she also has gained a better idea of what she would like to pursue upon returning to the United States.
“I really wanted to be out in the world doing something that I felt was real, so when I do go back to graduate school, I’ll have a clearer idea of what my set of skills are,” Murphy said.
Recent College graduate and former Cavalier Daily News Editor Maggie Thornton, an AmeriCorps VISTA, or volunteer in service to America, said she is also responsible for the AmeriCorps recruiting program at the University. While the program is still in its infancy, she predicted that service organizations will become a more popular option for University graduates.
Murphy noted, however, that students should get to know themselves before deciding what career path to pursue.
“Take some time and think about what you already know about yourself, what skills you already have and what skills you need to acquire and how you are going to do that,” she said. “You still have plenty of time to figure things out. Don’t give up the chance to ... go on the journey and figure those things out.”
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