Graduates vs. the Career Crunch
Introduction
First came the credit crunch, then the career crunch. Numbers of graduates are continuing to grow but the graduate job market is shrinking as firms struggle with keeping their balance sheets tidy.
So, how exactly has the graduate job market changed in the past few months, and what measures can graduates take in the current economic climate to ensure that they don’t find themselves on the wrong career path or queuing at the job centre?
Turbulent times
The Association of Graduate Recruiters (AGR) recently surveyed graduate recruiters in an effort to find out how the graduate job market is changing as the recession takes hold. The recently released results have some disappointing news for graduates: “the party’s over…for now at least”.
The survey results forecast reduced vacancies and salary freezes for graduates in 2009: - Graduate vacancies are predicted to fall for the first time since 2003 - The decrease in vacancies from 2008 to 2009 is predicted to be 5.4% - The situation is worse in the banking sector, with banks expecting further cuts - Graduate salaries are being frozen for the first time - There is more intense competition for graduate roles
But it is not all bad news as most organisations have learnt from the experience of the recession in the 1990s that sudden hiring freezes are a mistake. Companies still need to have a talent pipeline to be in a position to excel when the economy recovers.
Our advice to graduates is to think very carefully about what their long-term career goals are.
If your aim is to get a foot in the door in the financial and banking sector, it is worth looking at related industries such as management consultancy and accountancy which require similar technical skills but are not as hard hit by the current economic situation.
As money becomes tight there is likely to be a decrease in the number of graduate jobs available in the charity and not-for-profit sector, making the market more competitive, so you should think about taking a slightly lower position and working your way up. It is worth remembering that as the baby-boomer generation retires there will be opportunities to rise up quickly within organisations.
If you have an entrepreneurial spirit, a mix of skills and the desire for real responsibility, you should look to the small and medium business sector for opportunities. Whilst these companies can offer early responsibility, potential downsides are low wages, lack of clear career structure and risk of bankruptcy if the firm’s cash supply dries up.
As competition for each job increases, companies are looking for more than just a degree in their employees. If you have just left university, you should think seriously about the further education opportunities available, whether an apprenticeship, Masters degree or MBA.
If your plan is to take a gap year, in the hope that the economic and employment situation might have improved, ensure you are still employable when you return to the job market. You should think about skills you can develop whilst away, such as communication and teamwork, and make sure you find a way to demonstrate these to potential employers.
Graduates need now, more than ever, to differentiate themselves. So here’s our top 5 tips:
- You need to ensure that your CV displays the right skills and behaviours. Employers and recruiters will still be looking for:
- Interpersonal skills such as teamwork and relationship building
- Communication skills, both written and oral
- Critical reasoning and analytical skills including problem solving, lateral thinking and technical skills
- Passion, enthusiasm and commitment
In addition, because of the current economic situation, they will be looking for:
- Flexibility, mobility and adaptability
- Ability to take responsibility quickly
- Ability to excel in challenging situations
- Effectiveness and efficiency
Make the most of previous jobs and any experiences, such as leading university societies, in which you have demonstrated these qualities.
- Do some soul-searching – you need to think seriously about what you are looking for in a job and not settle for the first job that comes along because you feel you ought to
- Prepare, prepare, prepare and practice –know as much as possible about the company and sector you are applying to. Think about questions you may be asked and rehearse your answers out loud with family or friends
- Do work experience to build up your skills-base, for instance if you feel your communication skills could be better then consider taking a short-term sales job to improve them
- Network – use the contacts you have to tap into the 80% of jobs that are not advertised publically
Conclusion
Graduate jobs are still out there, particularly in the public and technology sectors, but you may need to look slightly harder to find them. The market is competitive, but if you arm yourself with experience, qualifications and passion, the recession may be a chance to gain a march on your peers and make a name for yourself.
Hilary Blackmore, Psychologist, Mendas Ltd
