Phil Gardner is director of MSU's Collegiate Employment Research Institute

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EAST LANSING, Mich. — Small, quickly growing companies will provide the best employment opportunities for college graduates, but graduates must be focused and well-connected to be competitive, according to Michigan State University’s 2008-2009 Recruiting Trends study.

“The hiring forecast is not good, so students better be ready now,” said Phil Gardner, author of the recruiting trends study and director of MSU’s Collegiate Employment Research Institute. “Folks who have a real focus on what they want to do, who got to work early on their job search and stacked up as many internships as they could will get in line first.”

On Nov. 21, the institute, in conjunction with the MSU Career Services Network and MonsterTRAK, will release results of the study at the 15th annual Trends in Recruiting Conference. The conference, which is hosted by the Midwest Association of Colleges and Employers, will take place at Holiday Inn Chicago Mart Plaza.

The survey measured hiring projections for 945 companies and institutions, which include 57 K-12 schools. It found that companies with fewer than 54 employees planned to increase total hiring by a modest 1 percent – the only increase reported across all size categories. Larger companies – ranging from 55 employees to more than 3,700 employees – plan to decrease total hiring by an average 8 percent. Total hiring combines all degree levels.

Last year, companies reported a total hiring increase of 2 percent, with a 7 percent increase in bachelor’s-degree hiring.

Unlike in years past, in which employers recruited a large variety of majors, companies are now focusing on business and computer science graduates. Despite that, hiring for those majors will be down 4 to 12 percent.

So what does the grim forecast mean for December and spring 2009 graduates? Gardner said they will need to use connections to find job leads. Since job openings are slim, connections with alumni and those formed through social networking mediums will provide the best opportunities.

He added that now, more than ever, internships play a crucial role in hiring.

“Companies are using internship programs to create a pool of talent that may be converted into full-time hires when conditions improve,” Gardner said.

And Gardner said this year there is no fallback industry. Traditionally, jobless graduates – or students with general majors such as liberal arts and social science – have turned to retail, sales and marketing. But not this recruiting season. Those industries report a 14 to 20 percent hiring decrease.

The forecast is bad, but it could be worse, Gardner said. 

“Large companies faced with a sizeable boomer retirement exodus are keeping the labor market afloat,” he said. “Without them, the market could be down another 4 to 9 percent.”

The survey also found:

• Starting salaries will change little from last year, with only 32 percent of respondents indicating they planned to increase salaries.
• With limited resources, companies are pursuing new recruiting methods that save time. Instead of on-campus interviews, employers plan to attend career fairs, which provide one-stop shopping for recruitment.

The study was sponsored by MonsterTRAK, the college-focused division of Monster that connects college students and recent graduates with employers looking for qualified entry-level and internship candidates.

Listen to audio of Gardner discussing the report.

Media note: For a copy of the report, contact Kristen Parker at kristen.parker@ur.msu.edu.

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