More Americans unemployed, graduates affected

05.08.09
By Nicholas Storie

Uncertainty over job security is frequently cited as a reason why some individuals and families are having trouble repaying credit card debt or are wary about increasing spending habits.

Based on data from the ADP National Employment report, hundreds of thousands of additional job losses in April may continue to feed people's fear of potential job loss.

According to the report, 491,000 jobs were eliminated during April in the private sector.

Joel Prakken, chairmen of Macroeconomic Advisers, a partner in releasing the employment numbers, offered comments on the results and what they could mean for the future.

"Despite some recent indications that stock prices, consumer spending, and housing activity may be bottoming out, employment, which usually trails overall economic activity, is likely to decline for at least several more months, although perhaps not as rapidly as during the last six months," said Prakken.

The mounting job loss numbers around the country are creating a tough situation for soon-to-be college graduates searching for work. Many of these students are thinking about the amount of student loans they will need to pay back and are looking for a salaried job to begin earning money.

The National Association of Colleges and Employers (NACE) recently announced the results of its 2009 Student Survey which revealed that just under 20 percent of this year's college graduates have a job lined up.

This is compared with 2007 when over 50 percent were slated to get to work upon graduation and in 2008 when over a quarter of the students had a job.

A slowdown in recruitment and hiring freezes at many companies are cited as potential reasons that this year's graduating class are wondering what their next step will be. Perhaps somewhat surprisingly, not many of them are considering graduate school.

NACE reports no signs that an increasing number of students are looking at graduate programs.

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Job losses taking a toll on graduates' career plans