Upcoming college graduates have reason to be optimistic, according to the newest edition of the Michigan State University recruiting trends survey. An overall spike of 23{88f444d59bdcebbae9807ef571e75a929a4082f9b61183f4b6d14945fda12649} in the hiring of new grads is projected by the study, one of the most respected of its kind and now in its 45th year. The significant increase is likely due to a combination of the overall company growth and high rates of employee turnover. Let’s take a more in-depth look at the results of the study and what it may mean for new grads.
The Survey
Michigan State’s recruiting trends survey polled 23,000 employers in total,with a response from over 4,700 companies. According to Phil Gardner, the author of the study and director of MSU’s Collegiate Employment Research Institute, this marks the second year of double digit job growth. There was a 16{88f444d59bdcebbae9807ef571e75a929a4082f9b61183f4b6d14945fda12649} increase in hiring seen in last year’s survey results, compared to only a 7{88f444d59bdcebbae9807ef571e75a929a4082f9b61183f4b6d14945fda12649} rise in 2014’s findings. These are big changes since the post-recession job market struggles.
Though hiring rates are projected to grow at a rapid pace, employers indicate that salaries will likely stay more steady, with only an average increase of 2 to 5 percent across industries. However, it remains encouraging to see that starting salaries are at least higher than the current rate of inflation, which is quite low at 0.2 percent. Another positive note is that Gardner believes hiring rates will not be immediately affected, despite any changes the economy may encounter.
Largest Hiring Industries
The Michigan State survey also looks at hiring data by industry and breaks it down into eight categories. The Professional, Business & Scientific Services is projected to have the highest growth in hiring new grads at 38{88f444d59bdcebbae9807ef571e75a929a4082f9b61183f4b6d14945fda12649}. Fields such as accounting, engineering, science and law are in this group. Finance & Insurance is the next in line and is expected to grow 28 percent.
Insurance companies and securities firms have high growth potential; however, the banking sector is not included among these increases and isn’t expected to see substantial recovery. There is a tie for third place, at 24 percent hiring growth, among the Information Services and Health Care & Social Assistance categories. The first group includes wireless carriers, internet service providers, satellite companies and data processors.
The second is comprised of hospitals, home health aides, agencies that serve people with disabilities and child protective services. Unfortunately, the growth is being seen primarily in the Health Care segment, while Social Assistance isn’t expected to fare as well. Of the eight categories, Manufacturing is in last place, with hiring actually expected to decrease by 6 percent.
What It Means
Gardner indicates that there has been a steady increase in the hiring of recent college graduates in the six years since the plummeting numbers of the recession. That’s really good news. The previous two years of the study demonstrate the most substantial and fastest growing climbs. Indicators from early fall of this year show the trend continuing.
In fact, the 4,700 employers in the survey say they expect to hire 107,200 workers from the pool of new graduates alone. Bachelor’s level grads will receive the majority of these jobs at 70 percent. Companies are expecting to hire MBAs at a rate of 40 percent, but those earning a doctorate degree this year are looking at only a 12 percent share of the new jobs
As you can see, times are favorable for new college graduates when it comes to employment numbers. While this is great news, expect competition to remain high. So be sure to continue to focus on setting yourself apart from the crowd.