College hiring has fallen dramatically from last year, according to a new survey of employers conducted by the National Association of Colleges and Employers (NACE).

The survey asked employers to compare the number of new college grads they hired in 2000-2001 to those they expect to hire in 2001-2002. Overall, they estimate a 36.4 percent drop in hiring.

"Unfortunately, the economic recovery came a little too late for the college Class of 2002," says Marilyn Mackes, NACE executive director. "Consequently, we’ve seen a steep drop in college hiring this academic year."

By sector, hiring projections are as follows:

• Among service employers, hiring is down 27.1 percent.
• Among manufacturers, the drop is even worse--51.7 percent.
• Nonprofit employers project their hiring to be down 22 percent.
• Bucking the trend are federal government employers: They expect to hire 16.2 percent more new college graduates this year than last year.

By industry, insurance employers project the best outlook--they expect to increase hiring 30.8 percent. Hiring among merchandisers also appears to have weathered the economic downturn fairly well; although they also expect to hire fewer grads this year, that drop is just 1.3 percent.

Hiring projections are worst among consulting employers, plummeting 89.7 percent, followed by automotive/mechanical equipment manufacturers (down 63.2 percent) and computer/business equipment manufacturers (down 58.7 percent).

Among the regions of the country, the Midwest has the dubious distinction of having the "least negative" outlook: Midwest employers say their college hiring is down 27.1 percent. Hiring projections are worst in the West, where the number of college hires has dropped 63.5 percent. Meanwhile, college hiring is down 39 percent in the Northeast, and 28.1 percent in the South.

Respondents were also asked to forecast their Fall 2002 college hiring. Although 12.8 percent of respondents say they expect to hire more new college graduates in Fall 2002 than they did in Fall 2001, nearly as many (11.5 percent) expect to hire fewer. Another 31.7 say they expect their Fall 2002 to look like their Fall 2001 hiring. But the biggest group--44 percent--were unable to provide any kind of forecast.

Survey Notes: NACE surveyed its employer members March 26 through April 9, 2002. Surveys were sent via e-mail to 1,515 employer members; 415, or 27.4 percent, responded. By type of employer, 48.4 percent of respondents are classified as service-sector employers; 40.5 percent are manufacturers; 6.3 percent are federal government agencies; and 4.8 percent are nonprofit employers. Some totals may not equal 100 percent due to rounding.

-- Article courtesy of NACE.

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