2008 College Graduates Will Be in Demand

• Employers expect to increase college hiring in 2007–08 by 16 percent from 2006–07.
• This is the fifth consecutive year for double-digit increases.
• Hiring projections are strong in all industries, economic sectors, and geographic regions.
• Competition for engineers, computer science majors, and accountants—areas where supply doesn’t meet demand—will be especially fierce.

“The job market for new college graduates has been gathering strength over the last several years and this year we’re seeing that trend continue,” says Marilyn Mackes, NACE executive director.

Less than six percent of respondents indicated that they plan to trim their college hiring. Nearly 58 percent will hire more college graduates and 36.5 percent plan to keep their hiring at 2006–07 levels.

Employers said that company growth coupled with retirements account for their hiring needs. They’re also anxious to hire new grads to groom future leaders.

High starting salaries not enough

The fact that students can make more if they enter fields where the demand for workers exceeds the supply hasn’t increased student interest in those fields.

For example, computer science graduates received an average starting salary offer of nearly $52,000. Yet, National Center for Education Statistics data shows that computer science is actually losing ground, with an annual growth rate of -.6 percent. The engineering field fared even worse, with a -2.2 percent growth rate in spite of an average offer of $53,710 for new graduates.

School district recruiters will have a tougher job hiring college graduates this year even though the average starting salary offer for educators ($33,679) was competitive with average offers for graduates in many other disciplines (visual and performing arts, psychology, communications, history and social science, biological sciences, and English). All those fields posted gains ranging from 2.6 to .5 percent in their annual growth rates. Education posted a negative growth rate (-.9 percent).

Employers will certainly continue to use high starting salaries to attract existing candidates in short-supply fields. They will also have to do more to differentiate themselves from their competition and make the fields themselves more appealing to entice students.

Signing bonuses seal some deals

Nearly 54 percent of employers will use signing bonuses to sweeten the deal for potential hires. That’s a substantial increase from 2007’s figure—47 percent. The size of the average hiring bonus has also increased. It stands at $4,450, up 25 percent from last year’s average ($3,568). Two-thirds of employers using hiring bonuses will target specific candidates and their offers will vary according to a number of factors, including the candidate’s degree and education level.