The State of the Graduate Market and Prediction for the Future - Term Paper Example

The of the graduate market now and prediction for the future when you graduate The of the graduate market now and prediction for the future when you graduate As an impact of the recession of 2008-2009, the relation between Graduation and Employment has undergone a major evolution from what it was ten years ago. With the requirements of the labor market growing in accordance with the need to survive economic insecurity, the graduate force is also developing a new character. Having a greater diversity, multiplicity of skills, student experiences and employability references from his/her respective graduating universities respond better to the needs of the industry the graduating work force is to be employed in. Although the employment rate may have reduced in the past few years, the resultant rise in salaries and the emphasis on better productivity of the human resource by the employers is giving a more economically sustainable perspective to the labor market. A number of surveys and researches carried out on the job market scenario for the Graduates of 2012 and the possible projections for the up-coming years point out the basic factors on which recruitment in today’s market depends. The general scenario for graduates appears to show a decrease in job openings, with a significant raise in starting salaries for graduates, hired on the basis of student experiences acquired prior to completion of the degree course. Among these, the number of job openings in comparison to the number of graduates joining the job hunt is the greatest determination factor for the level of competition present. After the major decrease of job vacancies in 2008 and 2009 by 6.7% and 17.8% respectively as a resultant of the recession, the general trend for graduate job openings has improved in the past two years. Consequently, it is expected that the job market of 2012 will supply a 6.4% increase in the U.K. (H.E.C.S.U & HighFliers Research Limited, 2012), 3% being graduate job openings. This figure, however, is the lowest since the economy recovered from the crisis in 2010. Therefore, in spite of the apparent increase in the number of jobs form the last year, there are other factors which have impeded the growth. While evaluating the unemployment rate, it is essential to take into account the rising number of graduates competing for the available jobs. According to the latest publication of The Graduate Market in 2012 by Higher Education Career Services Unit (H.E.C.S.U), a single job vacancy attracts an average of 83 applications (H.E.C.S.U & HighFliers Research Limited, 2012). Furthermore, the rise of the Global Unemployment Rate has not resumed to the original level of 5.5% in 2008, after its increase to 6.2% by the following year (ILO, 2012). Since the economy has improved in the past two years, the governing factor for such a high rate can only be the increasing numbers of the graduating labor force. Projecting these statistics onto the future with the latest figures of 6.0% unemployment rate and 118000 unemployed since November 2011, the unemployed graduates of 2013 will add up to a global total of 209 million. The number of jobs in relation to the number of graduates entering the field is an imbalanced proportion and the unemployment rates alternatively put pressure on the graduates to acquire better skills, further education or adapt themselves to different careers. The need for better productivity in today’s economic atmosphere results in the replacement of employees in the industry and thus generating opportunities for the fresh graduates. According to Occupational Outlook Handbook (OOH), 2010-11 Edition, published by Bureau of Labor Statistics, United States Department of Labor: ‘Replacement needs are projected to account for 67% of the approximately 50.9 million job openings between 2008-2018. (Bureau of Labour Statistics, 2010). This concludes that the growth in graduate recruitments does not directly ensure a decrease in unemployment rate. Projections by IMF indicate a very minute decrease in overall unemployment rate (5.9%) on the upside scenario, while the downside scenario might result in the unemployment to rise to 6.2% again in 2013. Whereas the unemployment rate of the youth, which includes fresh graduates as well as non-graduates, is presently 12.7% which makes them three times less employable than other experienced workers (ILO, 2012). In spite of all the stress this might be causing young prospective graduates at the moment; this situation also has some advantages. As indicated by the Association of Graduate Recruiters in their bi-annual survey, the average pay scale increase of 4% , planned by employees for 2012, is the highest recorded since 2005 when salaries increased by 7% (AGR, 2010). The salary packages as well as hiring rate also vary with respect to numerous criteria, like the degree classification, the value of the university degree and subject, as well as different sectors and industries. While there has been no significant change in most of the industries indicated in the report Global Market Trends 2012, Investment Banking (7.1%), Public Sector (3.6%) and Consumer Goods (3.3%), have demonstrated prominent changes in their salary incentives. However the highest paying sector for this year is Investment Banking, followed by Law Firms and Oil and Gas Companies, while the Public Sector graduate jobs have the lowest packages (NACE, 2012). The process of recruitment, especially of fresh graduates, involves three major stakeholders; the employer, the graduate and the University that the prospective employee graduates from. The requirements of each of these should be understood by all to have a more efficient system with minimum dissatisfactions on either side. According to a research conducted by Higher Education Career Services Unit, graduate students that have been through the process of job application and recruitment, recommend that the importance of acquiring experience during university education should be emphasized by the University as early as the first year, and the Universities should prepare students for the requirements of the practical work market. With the above mentioned statics of unemployment and graduates proportions, it is consequently becoming increasingly difficult for employers to hire the most suitable graduates from the market. According to Carl Gilleard, Chief Executive AGR, “the business of recruiting, paying and training graduates costs employers anything up to £3bn each year and has become a significant industry itself” (AGR, 2010). The choice becomes considerably easier, however, when the graduates also have some work experience and recommendations by other employees. This trend is in effect to the extent that employers declare one third of their entry level jobs in 2012 will be offered to students that have interned with them in the past (Charles Macleod, n.d.). It seems possible that graduates with no work experience during student life will have to face grim results. Other factors that make up employability of the graduate apart from the basic technical and academic skills have become important priorities for employers. Based on a survey conducted on Graduate Employability, employers prioritized ‘soft’ skills including communication and team work over the ‘hard’ technical skills required for the job. Professor Phillip Brown indicates in ‘The Changing Graduate Labor Market: A Review of the Evidences’ that it would become increasingly difficult for graduates to meet their expectations with regard to the jobs they may be recruited in as the type of jobs are considerably changing with the passage of time. The concept of ‘safe jobs’, indicating full time, indeterminate contracts, has long become a thing of the past. But today we see the idea of conventional jobs with fixed contracts wavering under the rapidly expanding part time job market. Moreover, freelance and portfolio careers are evolving in response to their demand from consumers for individual services and consultancy. The rate of part time employment has grown from 26.7 % to 35.9% between 2001 and 2011. There has also been an increase of 41% in the number of graduates over the ten year duration which, when not adequately supported by the conventional job market turned to the secondary employment industry. Having evolved into an industry of its own, a part time employment makes up 24% of the total employment in the U.K. and 14% of the total jobs in the U.S. (ILO, 2011). However, working environments, hours and wages in the part time employment sector ensure that it remains only temporary employment until graduates are finally successful in accomplishing a job in accordance with their professional degree within a period of time. The perceptions of the graduates and their ability to foresee the future trends earlier on in their job search is the most important indicator of success. The analysis of certain trends and projections makes it clear that the Job market for graduates is evolving in to a two way process that warrants growth and development on both the employer and employees side. The graduate labor force has to adapt itself to the expanding demands of their fields and start equipping itself with the necessary skills and experience from the student level. The employers, needing to efficiently utilize the fresh talent are developing training programs to make sure the young graduates contribute more productively to their organization. These trainings serve as bridges between the student and employment phases and help the graduate to quickly understand what is required of him and how the skills he acquired at university level can be used here. BIBLIOGRAPHY 1. AGR, 2010. Talent Opportunity & Prosperity; A Manifesto for Graduate Recruitement, Warwick: s.n. 2. Brown, P. P., n.d. The Changing Graduate Labour Market: A Review of the Evidence, s.l.: School of Social Sciences, Cardiff University. 3. Bureau of Labour Statistics, U. S. D. o. L., 2010. Occupational Outlook Handbook 2010-2011. [Online] Available at: http://www.bls.gov/oco/oco2003.htm [Accessed 17 March 2012]. 4. Charles Macleod, C. f. I. a. H. E., n.d. Graduate Employability; , s.l.: s.n. 5. CIPD, 2011-12. Labour market Outlook, s.l.: s.n. 6. Davison, W. A. a. J., 2008. Graduate Employability, s.l.: s.n. 7. H.E.C.S.U & HighFliers Research Limited, 2012. The Graduate Market in 2012, London: s.n. 8. Hopkins, H., 2011. Real Prospects 2011:. Graduate Market Trends, Issue Summer 2011, pp. 14-16. 9. ILO, 2012. Global Employment Trends 2012, Geneva: ILO Publications. 10. ILO, B. f. W. A., n.d. Labour Market Trends and Globalizations Impact on them. [Online] Available at: http://actrav.itcilo.org/actrav-english/telearn/global/ilo/seura/mains.htm [Accessed 17 March 2012]. 11. NACE, 2012. Salary Survey; Starting Salaries for New College Graduates, Executive Summary, s.l.: s.n. 12. ONS, 2012. Graduates in the Labour Market 2011, s.l.: s.n. 13. Purcell, P. K., 2010. Trends and Patterns in Graduate Employment & Access to Career Opportunities; What does Recent & Current Research Tell us?, London: Waewick Institute of Employment Research. Read More