Employers Still Hiring College Grads This Year –But Competition is Stiffer to Land First Job

MAYNARD, Mass.--(BUSINESS WIRE)--Employers’ entry-level hiring plans are conservative compared to prior years according to MonsterTRAK’s annual nationwide survey of college students, graduates and employers. However, findings indicate that 54 percent of companies surveyed still plan to hire 2009 college graduates.

“While the percentage of employers planning to hire college graduates in this year’s MonsterTRAK Entry-Level Job Outlook has declined somewhat compared to last year, it is encouraging that over half still plan to hire 2009 graduates”

MonsterTRAK is the channel of Monster.com®, the leading global online career and recruitment resource and flagship brand of Monster Worldwide, Inc. (NYSE: MWW), that connects college students and recent graduates with employers looking for qualified entry-level and internship candidates.

Employers Still Hiring

While 71 percent of employers reported a decrease in the total number of planned hires for 2009, those still planning to hire college graduates fell only five percentage points from 2008 (from 59 percent to 54 percent). However, that five point drop is substantially smaller than the 17 percent drop reported by employers last year with respect to graduate hiring plans (from 76 percent in 2007 to 59 percent in 2008).

“While the percentage of employers planning to hire college graduates in this year’s MonsterTRAK Entry-Level Job Outlook has declined somewhat compared to last year, it is encouraging that over half still plan to hire 2009 graduates,” said Jesse Harriott, senior vice president and chief knowledge officer at Monster. “However, because there is more competition for entry-level jobs compared to years prior, graduates should do everything they can to stand out among other job applicants in this challenging labor market environment."

Employers reported that although growth opportunities and job fulfillment/interesting work remain important to graduates, they are, in the current environment, re-emphasizing salary, job title, and benefits/time off. In addition, relevant work experience gained 9 percentage points from last year, while previous work experience grew by 8 percent, indicating that employers are looking for candidates who can hit the ground running. Volunteer work also gained ground as an attractive candidacy attribute, with 7 percent more of the employers surveyed citing it as valuable experience.

College Grads Broadening their Horizons in Challenging Hiring Environment

Despite the fact that many employers do have hiring plans for 2009, graduates reported feeling less confident in the current job market. According to the survey, 92 percent of 2008 graduates believe it will take longer to find a job and 58 percent are willing to consider a position outside their chosen field of interest. Likewise, one-third (33 percent) of future graduates are worried about their ability to secure a job (up from only 13 percent in 2008).

Faced with the reality of a challenging job market, graduates are spending more time looking for work and are employing new tools and tactics in their job search process.

Twenty-seven percent of graduates expect to spend 16 hours or more per week on job search activities (up from 15 percent last year)
Family and friends were identified as the most useful method during a job search (74 percent), followed by the use of large and niche job boards which increased 10 and 11 percentage points from 2008 respectively.
Also showing an increase in the usefulness of a job search are informational interviews (47 vs. 41 percent), career coaches and counselors (45 vs. 40 percent), blogs (30 versus 22 percent), and the use of outplacement firms (27 vs. 18 percent).

Further, matching employer’s expectations, today’s grads are consciously looking to gain additional skills, education and work experience to ensure they stand out:

Thirty-six percent are considering returning to school to earn higher degrees prior to looking for a job
Fifty-two percent of 2010 graduates plan to gain experience through a summer internship in their filed of study. However, only 10 percent of employers are expanding their internship programs this year.
Forty-five percent of graduates have or plan to create an online profile, compared to 23 percent last year

Given graduates’ lack of confidence in the job market, many students choose to move back in with their parents post graduation. In fact, 40 percent of 2008 graduates continue to live with their parents since graduation. The main reason – money – 78 percent of those say limited financial resource is their motivation.

“Graduates today are well aware of the challenges they face in a competitive job market and what will set them apart is relevant job experience, transferable skills and the ability to hit the ground running,” said Harriott. “While graduates’ drop in confidence in the current job market this year is not surprising, they need to keep in mind that there are plenty of good jobs out there and that success will come to those who are flexible, tenacious and demonstrate they can add real value for a prospective employer.”

The research was commissioned by MonsterTRAK and surveyed 1,567 college seekers (2008 graduates and those expecting to graduate over the next four years) and 210 employers (who hire college graduate entry-level workers) across the U.S.

Click here to read the full report on The State of College Graduate Employment.

Survey Methodology

MonsterTRAK’s 2009 Entry-Level Job Outlook was conducted in 2009 via online distribution to nationwide MonsterTRAK customer companies, as well as college students. The results were recorded from 210 employers and 1,567 students (640 graduates from 2008 and 927 future graduates). This survey is not scientific and reflects the opinions of only those internet users who have chosen to participate.

About Monster Worldwide

Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster, the premier global online employment solution for more than a decade, strives to inspire people to improve their lives. With a local presence in key markets in North America, Europe, and Asia, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. Monster Worldwide is a member of the S&P 500 index. To learn more about Monster's industry-leading products and services, visit www.monster.com. More information about Monster Worldwide is available at http://corporate.monster.com.