According to the Bureau of Labor Statistics, the unemployment rate has risen to 5.5 percent, up from 4.9 percent since the beginning of the year. While the potential labor force has increased by about 500,000, the number employed has decreased by around 350,000. This is still well below the unemployment of nearly 6.5 percent seen back in the middle of 2003.
The Virginia Employment Connection reports that the Commonwealth has fared better than the country as a whole, with a rise in the number of people employed powered by strong increase from the private service industry. The goods-producing industry has been hurt the most, losing more than 10,000 jobs.
Many Tech students, however, have been very successful at finding gainful employment after graduating this spring. Recent graduate Paul Marks has recently begun full-time work at Apple Computer after doing a co-op there during his college career.
"I think my edge came from knowing what I want to do for a career, and deciding that I'd make no sacrifices in trying to get there," said Marks. "I think they saw that I wanted the job rather than needed it."
Marks noted that nothing was given to him. He had to work hard to get the job. "Apple doesn't appear on campus for the fairs, so the university did not help me get in touch with Apple; I had to do that on my own."
Not everyone has been so lucky. 2005 graduate Nicholas Reinholtz got a job in Portland, Ore., immediately after graduation. He no longer has that job and with economic conditions the way that they are, he has struggled to find a new job in the region.
"It's tough," Reinholtz said. "Unless you have a good connection — something like an internship or a co-op, it is very difficult to get your foot in the door anywhere. A couple months ago, my former company put up a job post for an engineer and got 20 resumes in the first 24 hours — all solid candidates. You can't go interviewing 20 people for a job. So getting an interview is even something of a crapshoot. Much less actually getting hired."
He is now here in Blacksburg for the summer, gaining research experience in preparation for fall applications to graduate school.
Given the experiences of Marks and Reinholtz, it becomes clear just how important networking and, in particular, co-ops, are in this struggling job market. It is not surprising that so many departments on campus encourage students to take advantage of such opportunities.
Many good students have avoided the job market in favor of continuing education. In fact, according to research from Kelly Bedard at the University of California-Santa Barbara and Douglas Herman from the Federal Trade Commission, a high unemployment rate is significantly related to increases in enrollment for master's degrees, Ph.Ds and professional school. They find that this effect is greatest among those with high undergraduate GPAs.
The Council of Graduate Schools found that in 2003, when unemployment rates were as high as they are now, there was a dramatic increase in graduate school enrollment
What is more concerning to some recent graduates is not that jobs are being lost, but that they are becoming less lucrative, given the rising prices of goods and services. Most notably, there has been a recent rise in prices for flour, eggs and, of course, gasoline.
The Bureau of Labor Statistics reports that what could have bought on average for $1 last year costs about $1.06 now. In the previous year, inflation was only about half of that, at 3 percent.
BLS data also shows that in the past year, average hourly earnings in Virginia have increased by about 3 percent and average total compensation has increased by 3.3 percent, trailing behind the 6 percent inflation. From 2006 to 2007, compensation and wages grew slightly faster than the price level.
Career Services at Virginia Tech is still compiling data on the post-graduation plans of the class of 2008. Last year's class reported 54 percent having accepting a job by graduation time, 21 percent having accepted admission to graduate school and 10 percent still looking for a job.
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