Black Collegian Career Center

Approximately 325 employers responded to the 1999-2000 Recruiting Trends survey conducted by Michigan State University, in cooperation with the Midwest Association of College and Employers. Their impression of the national labor market for college graduates was very positive with 42% considering it excellent and 46% very good. Construction, professional services (including accounting firms, management and engineering consultants, legal services, design, computer systems and marketing research), and financial services were sectors that shared the highest levels of confidence. However, the optimism spread to other sectors, such as manufacturing, which reported higher expectations than in recent years.

In rating the outlook for their own industry, employers were slightly more cautious. Only one sector, agriculture and natural resources, showed much pessimism. Abundant harvests in recent years, and weak overseas markets, has placed constraints on this sector that will dampen hiring expectations.

All regions of the country appear to have solid labor markets. Employers hiring in the southeast rated their labor market opportunities the highest (78% excellent and very good) and the north central (75% excellent and very good). The only region where employers had concerns was the northwest where manufacturing was not very confident.

This year’s labor market can best be described as something for everybody. Among survey respondents 61% expected to hire more students and 21% the same as last year. All degree levels will experience increases led by associate and bachelor degrees.

Size of organization traditionally has influenced hiring rates. Over the past few years, small companies have led the hiring frenzy while larger companies have been cutting back (due to restructuring and downsizing). This year, small firms will increase hiring significantly. However, the largest firms are anticipating making a large number of hires – up nearly 25% over last year.

All sectors of the economy will be hiring with the greatest number of opportunities in food and lodging, finance and insurance, retail and utilities. Also generating a large number of jobs will be professional services, construction, manufacturing, and health care.

Employers are seeking a variety of academic majors. As expected, leading the list of desired majors were engineers, followed closely by construction. Allied health specialists from RN’s to occupational therapists appeared to be in demand. The exception in allied health may be physical therapists where the number graduating currently exceed available openings.

Liberal arts graduates, including natural sciences, humanities, and social sciences are being sought. Many of these students have solid computer skills, which lend themselves to a variety of applied computing, analyzing, and research positions.

Computer science majors may have to wait until after the first of the year to see how their labor market shakes out. The reason: Y2K compliance. About half the employers seeking computer scientists reported needing more of these majors regardless of the Y2K problem. The other half are waiting to see what happens with their compliance efforts. Some may be forced to cut some positions; others may add in the spring.

In tight labor markets, salaries can be expected to increase. During 1990’s economic expansion, employers have been successful in keeping salary increases close to the inflation rate. Employers would like to keep starting salary increases to 3% to 4% above last year. If the labor market remains tight, some employers acknowledged that salaries may have to go higher.

Some majors can expect increases above the expected range. Hospitality, accounting, electrical engineers, computer science and allied health majors may see increases up to 6% or 7% above last year.

Last year, employers who responded described the candidates they wanted in terms of the "total package." Not only do candidates have to be prepared academically, they need to possess sound communications, computer aptitude, leadership, teamwork, interpersonal abilities, and personal accountability (work ethic, complete assignments on time, punctual, and organized). The package has not changed since last year. In this year’s survey, employers were probed to see what new skill sets were emerging that will soon become part of the package in the near future.

The responses offered still focused on the "total package." In particular, three skills/competencies were emphasized:

• Increased proficiency in communication skills, especially public speaking and group presentations.
• Interpersonal skills with attention to building rapport among group members and assisting in mitigating team conflicts.
• Taking the initiative, including undertaking tasks beyond responsibilities and identifying new approaches to producing and delivering goods and services.

Several new competency areas did emerge, however. College students should become familiar with these skill clusters to enhance their future career potential.

• Higher level of computer efficiency. Many employers now assume that all college graduates are literate with office software, such as Microsoft Office (word processing, spreadsheet, data management, and presentation/graphics). Soon they will expect graduates to be familiar with an application language such as JAVA and graphic programs.
• Demonstrated commitment to learning. Employers will no longer be satisfied with candidates who say with enthusiasm that they are lifelong learners. They will ask candidates to demonstrate how they have pursued learning outside the classroom.
• Ability to adapt to changing systems. This competency is not new; but the speed of change demands an increased level of flexibility and the willingness to handle multiple tasks.
• Strategic thinking. Creating new knowledge that can be used by the organization requires complex critical thinking skills to analyze the complex, overlapping systems that drive the production and delivery of goods and services.
• Understand the concepts of e-commerce.

Employers will be interested in the co-curricular activities that students have engaged in while in college. Particularly important to employers are those experiences that are career related. Generally, student participation in internships, co-op, or career related employment (summer or while enrolled) during their sophomore, junior, and senior years will provide this experience. However, student projects and competitions are also viewed as providing exposure to work related demands.

In addition to applied experiences, employers want students who have demonstrated leadership. Merely joining the professional organization associated with one’s major will not suffice. Students need to involve themselves in program and project planning and delivery; taking opportunities to lead as well as follow.

Employers emphasized that they were not looking for bodies to fill vacancies. The candidates that they are seeking must fit with the organization’s expectations with regard to the "total package." Plus, the candidate must have experiences that reflect the skills wrapped in the package. Employers are willing to leave a position open rather than fill it with someone who is not adequately prepared.

Be Prepared!

The opportunities for the class of 1999-2000 look extremely promising. A graduate who has utilized all aspects of the college experience (academic and co-curricular activities) can find some exciting employment opportunities. Employers are actively seeking new employees now! Students, who feel more comfortable waiting until spring to start their search, may find recruiting activity slow. This is due to employers waiting to see who accepts their offers and what their remaining needs are. Students should use this time to utilize campus resources to prepare their materials for their job search, to identify potential employers, and to contact friends and family members who can assist when their job searches begin. Students should not wait until after graduation to initiate their job search for they run the risk of a six to nine month search for employment.

Dr. Philip Gardner is the director of Research for The Collegiate Employment Research Institute at Michigan State University. His research focuses on the transition from college to work, workplace readiness of college students and career development. He is the author of the annual Recruiting Trends Report published by Michigan State University.