Graduating into the Crunch :: Wessex Scene Online

Graduating into the Crunch

How will you be affected as a graduate in this financial crisis?

23rd November 2008
Adam Parker VP Media & Comms 08/09

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May 08 - Students Overcharged
Oct 08 - Let's Get Credit Crunching
Jan 09 - Those who can. Teach
May 09 - Recession Damages Job Prospects
May 08 - No Jobs For Us

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Graduating into the Crunch

How will you be affected as a graduate in this financial crisis?

A recent graduate fair at the University of Southampton saw a drop in graduate recruiters by over one third - a chilly indictment of the graduate job market as students begin searching for a career in the midst of current economic difficulties.

Avoiding the credit crunch is no easy task, with everyone from stockbrokers to builders in some way affected by the global recession. How it will affect the average graduate though looks set to vary considerably.

The crunch will unavoidably have a detrimental effect on graduate recruitment as a whole, research having shown that “the current strife in the economy could result in companies implementing cost cutting strategies which may include cutting graduate recruitment”. The drop in the number of recruiters at our graduate fairs echoes this bleak state of affairs and imparted an eerie feel to our most recent event as tables were left empty.

Trinity Mirror, which publishes the Daily Mirror as well as one hundred and fifty regional newspapers, is scrapping their graduate recruitment this year in light of the current economic downturn. Whilst the financial sector has seen the biggest reduction in graduate positions, a recent survey by the Income Data Services suggests that financial firms are expected to employ 14.7% fewer graduates this year.

It is hoped that graduates looking for recruitment in the public sector, which includes jobs within the health services and schools, won’t be affected by the credit crunch, as graduates should find no change to the number of vacancies on offer. As graduates find themselves stranded by private sector recruiters however, it seems clear that competition in the public sector will increase heavily.

In spite of these negative reports on the job market, many others claim that the graduate recruitment market is stable – for now. Graham Trickey, editor of Graduate Magazine commented, “the graduate jobs market on the whole has yet to feel the full impact of the credit crunch”. Indeed, experts predict that the true effects of the credit crunch won’t be felt until next years round of recruitment kicks in, as budgets for many recruiters will have been signed off earlier in the year.

A similar positive theme shows that some organisations can afford to employ multiple graduates for the same cost as a high-end manager. Research by Meta-Morphose suggests “graduate recruitment may offer the solution to companies who need to grow their work force amidst the current economic challenge”. Companies wishing to stay competitive within their markets may look towards this solution, as it is always possible that “the most inexperienced graduate can meet and exceed the targets of even the most seasoned professional”.

A recent student survey found that students were more worried about their careers this year than last; a result undoubtedly symptomatic of current economic conditions, the burden of student debt and rising living costs. This year’s finalists will also graduate with the highest level of student debt ever seen in the UK, and as loan repayments are collected as a percentage of post-graduation salaries over Ł15,000, finding a reasonably paid job straight from university may prove essential.

Although the situation seems out of our hands there are many things Southampton students can do to increase our employability. The Telegraph jobs supplement claims, “companies seek to widen their talent pool and look for life skills as well as academic excellence”. There are hundreds of opportunities to develop these life skills here at the University of Southampton and getting stuck in will raise your head above others in these tough times.