Contact: University Relations (517) 355-2281, or hodack@msu.edu

11/28/2001

EAST LANSING, Mich. - College graduates can expect to see a 6 percent to 13 percent decline in hiring during the 2001-02 academic year, according to the 31st annual Recruiting Trends survey conducted by the Collegiate Employment Research Institute at Michigan State University.

Many factors have caused a significant shift in the college labor market, including a decrease of hiring activity during the latter half of last year, fluctuations in consumer confidence and the events of Sept. 11, said Phil Gardner, director of research at MSU's Career Services and Placement and author of the study.

"The economy hit several big bumps, which sent the labor market into a downward spiral," Gardner said. "And even though the market has taken a hit, it remains resilient. Only 6 percent of respondents indicated that they will not hire this year.

"The explosive market, which began in 1997, has run its course, at least for this year," he said. "Employers have expressed a high level of uncertainty surrounding their hiring goals, and they may not actually have their hiring targets in place until the spring of 2002."

Respondents expressed hope that hiring would begin to increase during the second quarter of 2002, but Gardner indicated that the third quarter appears to be more likely.

In addition, survey respondents reported hiring 34 percent fewer bachelor's degree recipients and 45 percent fewer master's degree graduates than they projected last year.

"For 2002 grads, the market will contract another 15 to 20 percent, depending on degree level and academic major," Gardner said. "Bachelor graduates can expect a decline of 6 to 13 percent, while master's and doctoral graduates will experience a 20 percent decline."

Despite the layoffs and slow hiring, skill replacement continues to be a driving force in labor acquisition, according to Gardner. Areas that have seen the largest declines in hiring include engineering, computer science and business.

"Computer science and business graduates still will have opportunities, but they should not expect the multiple offers and heavy recruiting of previous years," Gardner said.

Salaries may grow 1 percent to 3 percent, but some salary suppression was seen at the top end of several salary ranges, said Gardner. Results also show that employers are reining in other monetary expenditures - few will use bonuses or other special incentives to lure job candidates. Starting salaries for bachelor's degree graduates range from $30,300 for communication majors to $53,000 for chemical or computer engineering majors.

This year's survey also found that e-recruiting remained at the same level as benchmarked last year; 35 percent of recruiting activity takes place on the Web, with 10 percent to 20 percent of firms hiring directly as a result of these initiatives.

Employers continue to indicate that job candidates need to possess the "total package." Communication emerged as the single most important skill to employers, with the capstone being presentation skills. Candidates should also possess computer/technical aptitudes, leadership, teamwork skills and interpersonal abilities.

A total of 286 employers, primarily in the manufacturing and professional services sectors of the economy, responded to the survey.

For more information, contact Phil Gardner at (517) 355-2211 or 339-2537. Reporters may obtain the report by contacting Lisa Acheson, University Relations, at (517) 432-0924. The general public may order the report by calling (517) 355-9510, Ext. 162.