Experts explore job outlook in the economic downturn

University of Wisconsin–Madison career placement and job market experts examine the state of the national job market during the economic downturn and how it affects graduating students and different sectors of the work force.

Steve Schroeder, assistant dean and Undergraduate Program Director, Business Career Center, Wisconsin School of Business:

Schroeder says the current economic crisis has impacted recruiting organizations and Business School students in many different ways. “Students are expanding their job search strategies to be much more inclusive of a plethora of options within their majors and industries of interest,” says Schroeder.

Schroeder says the industries that have been most severely impacted include investment banking; real estate (commercial mortgage-backed securities, residential); higher-end retailing; manufacturing; transportation (airlines and automobile makers); and some commercial products companies. He says industries that haven’t seen as much of a decline include actuarial science, public accounting, consulting, technology, oil, and health care.

“We may have yet to see the worst of this economic situation, and this fact coupled with a surplus of qualified, experienced job candidates on the market will make the scene a bit more difficult for students who graduate,” he says.

Leslie Kohlberg, director of Career Services, College of Letters and Science:

Kohlberg says it is difficult to pin down exact data in a rapidly changing economy, but some trends emerge.

“Until very recently, employers’ primary concern in all sectors was competition for new graduates. With the baby boomers retiring, employers were focused on maintaining their organization’s talent pipeline. Succession planning and promoting from within were top priorities,” Kohlberg says.

Despite the economic downturn, competition for new grads will continue in specific disciplines such as information technology, or finding candidates who provide diversity to their organization.

Although some industries and sectors such as finance, retail, manufacturing, construction and lending institutions have been severely hit, other industries are growing, she says. Growth areas include health care, education, accounting, and some engineering and technology disciplines.

“When we look at the employment trends for the public sector, specifically the nonprofit and government sectors, there is reason to be optimistic,” says Kohlberg.

While hiring is considered to be flat for many industries, government employers are looking to increase hiring by nearly 20 percent. The Office of Personnel Management’s Workforce Information and Planning Group estimates that by the year 2016, more than 60 percent of full-time permanent federal government employees will be eligible to retire.

Kohlberg says that is good news for liberal arts graduates interested in public sector, nonprofit and federal government jobs.

Kohlberg also has an open letter on her site offering a more encouraging perspective on job for recent graduates.

John Archambault, interim director, Engineering Career Services, College of Engineering:

Archambault says it is a bit early to tell the full effect that the recent downturn will have on the College of Engineering’s recruiting season, but it appears that students are having to make some compromises and aren’t all getting their first choice or their perfect offer.

“Typically, engineering students have been receiving three to four offers, and that is still the case for top graduates,” says Archambault. “Those who don’t have the top qualifications are likely to only receive one offer.”

He says hiring still seems to be respectable in the food, oil, health care and federal government sectors, and the Midwest and the South are the better regions in which to be looking for employment.

“We anticipate that there will be an increase in hiring of engineering summer interns and co-ops if the downturn is prolonged through the spring semester,” he says.

Archambault adds that although there is a current pullback in engineering hiring, it is also anticipated that the “graying” of the engineering work force, combined with an overall shortage of engineers in the work force, will result in engineering being one of the first fields to rebound.

Gina Evans, career and corporate relations specialist for the Wisconsin Alumni Association: 

Evans can talk about alumni career relations and what is on the minds of alumni and students in the changing landscape of work and industry. She can discuss how WAA is guiding alumni and graduating seniors through this weakening economic time and assisting them through several current programs and services, such as online career programs, including a job board, and its Badger Career Network, which helps alumni search for contacts in a certain job or industry.