|
|
| |||
The real world just got harder. The days of multiple job offers and signing bonuses for college grads are over, at least for now. Making the leap from college to the real world and a good job is going to be tough. How tough is it? Employers expect to cut college hiring by more than 36 percent this year, according to a survey by the National Association of Colleges and Employers. Blame it on a recovery that lacks oomph. "The job market really hasn't opened up yet. It's slow. The economic signals are mixed. Employers are being cautious about hiring," says Philip Gardner, director of the Collegiate Employment Research Institute. "It's a very slow recovery." The
culprit is last year's recession. The economic slowdown
wasn't so mild
for new college grads. Job openings started tightening
as early as January 2001
and have not picked up since.
This
year's graduates will have to jostle with 2001 grads
for the entry-level
job openings that remain. And they'll have plenty of
company. Many laid-off
professional workers are in the hunt for jobs. They'll
snap up an entry-level
position whenever they can. "There's
a lot of labor that this graduating class has to get
in line
behind," Gardner says. But
it's not all gloom and doom for today's grads. Some
will be able to snag
high-paying professional jobs without a hitch. What's
their secret? They've
got degrees in fields that are hungry for workers. Grads
with bachelor's degrees in engineering, computer science
and accounting
are in demand. The insurance industry is pursuing grads
with economics, finance,
marketing and business administration degrees. Other
graduates will have a much harder time landing jobs.
To crack a difficult
job market, they'll need to be flexible. They may have
to relocate or take a
job outside their chosen field. It's important to think
of a first job as a
steppingstone to the job they ultimately want. "There's
nothing wrong with taking a job below where you'd like
to be
to build up a steady work record," says Andrew Sum,
director of the Center
for Labor Market Studies at Northeastern University.
"You're always better
off working than not working." Begin
your job search early. The first stop is the career
center on campus.
A career adviser can help you fine-tune your resume. "I've
assisted hundreds of people with their resumes, and
I've rarely
ever looked at someone's resume and said, 'This is
great, don't change a thing,'"
says Linda Gooding, a counselor at the Student Success
Center at North Harris
College in Houston. "Most people don't know how to
sell themselves properly
on a resume." You'll
also want to polish up on your interview skills. Many
campus career
centers offer seminars on job interviews and job hunting.
Sign up for everything
you can. The more comfortable and confident you feel
about the interviewing
process, the better off you'll be. Landing
a job in 2002 is going to take a whole lot of research.
So dig in and
get going. Join professional organizations. Attend
conferences and meetings
in your area. Subscribe to publications in your field. Network
until you drop. Sound the alarm and tell everyone you
know that you're
in the job hunt. Ask them to spread the word. "A
lot of getting a job is networking," says Nancy Dunnan,
author
of How to Invest $50-$5,000. "If they're looking for
a job, they should
turn to family and friends for ideas." A
neighbor or co-worker of a parent may be able to steer
you in the right direction.
Contact past members of a fraternity or sorority and
other campus organizations.
Re-visit your old high school. Tap every contact you can think of. Getting
your foot in the door "Research
the company and the position before you come in for
the interview,"
says Mimi Collins, a spokeswoman for the National Association
of Colleges and
Employers. "Do your homework. Show your interest." Consider
taking an internship, part-time work or volunteer work
in your field.
These types of positions are a good way to get your
foot in the door. They may
lead to a full-time position with the company or organization.
At the very least,
the experience you gain and contacts you make will help with your job search. Dunnan
knows of six recent graduates who volunteered with
nonprofit agencies
in New York City. All six had full-time jobs within six months. Make
the most of your first job out of college, even if
it's not your dream
job. Learn as much as you can, but don't get too comfortable.
Stay on the lookout
for bigger and better opportunities. "You've
got to have a plan to where you want to go next," Gardner
says. "People who don't, tend to get stuck there." First
job, first budget "It
doesn't have to be a budget that drives you crazy,"
Dunnan says.
"But you do need a budget." At
the very least you've got to get a handle on set expenses,
such as rent,
utilities, car payments and minimum student loan and
credit card payments. How
much of your monthly take-home pay will these expenses
eat up? Is it 75 percent
of your money for the month? How much money is left over for food and fun? After
you've got a handle on the bills you must pay every
month, it's time
to take a closer look at day-to-day spending. Have
you ever wondered how the
$40 bucks in your wallet could disappear so fast? Tracking
your spending for
a few weeks will give you the answer. "At
least for a couple of weeks write down your spending
and decide what
you can do without," says Jason Anthony, co-author
of Debt-free by 30:
Practical Advice for the Young, Broke, & Upwardly Mobile. "Almost
half the battle is knowing where your money is going
... How much
money did you spend last month on coffee?" Do
yourself a huge favor: As much as you can, avoid running
up credit card
debt. Carrying big balances on high-interest rate credit
cards can really drain
your wallet. "The
high interest rate credit card debt is the thing you
really want
to chip away at," says Beth Kobliner, author of Get
a Financial Life: Personal
Finance in Your Twenties and Thirties. Pay
more than the minimum payment on your credit card each
and every month.
Even an extra $10 a month can make a difference. This
article from Bankrate.com discusses a number of strategies
for paying
down card debt, including freezing your minimum payment. Good
debt, bad debt You
want credit card debt out of your life as soon as possible.
Student loan
debt is less of a worry. "I
classify that as good debt," Anthony says. "You should
attack
your credit card debt first because the interest is
higher, much, much, much
higher." As
long as you can make your monthly student loan payments
you're in good shape.
Interest rates on student loans are quite low and look to stay that way. Last
July, the interest rate on federal Stafford loans dropped
from 8.19 percent
to 5.99 percent, its lowest rate in decades. The rate
remains in effect through
June 30, 2002. The Stafford program is the largest
source of student loan funds
in the country. The
U.S. Department of Education sets variable loan rates
each year based on
the rate for 91-day Treasury bills at the last auction
in May. That rate could
be even lower this year, thanks to several interest
rate cuts in mid and late
2001. So
there's a good chance Stafford loan rates will stay
well below 6 percent
from July 1, 2002, to June 30, 2003. That's great news
for all student loan
borrowers. Consolidate? A
consolidation loan also locks in a single rate for
the life of a loan. The
rate is based on the interest rates on loans you already
have. It's best to
consolidate loans when interest rates are as low as they are now. Information,
applications and calculators for consolidation loans
are available
on the USA Group and Sallie Mae. Borrowers can also
contact their lenders with
specific questions on consolidation loans. Grads
facing serious financial problems may be able to get
their loan payments
postponed or deferred. Be sure to contact your lender
and ask about deferment
and forbearance programs. Once
you map out a realistic but not suffocating budget
and get a handle on
your credit card and student loan debt, you're ready
to take on the real world
-- tough times and all. |