Employers expect to hire about the same number of new college graduates for 2002-03 as they hired in 2001-02, according to a new report published by the National Association of Colleges and Employers (NACE).

Overall, employers responding to NACE's Job Outlook 2003 Spring Update survey indicated that they plan to bring in approximately the same number of new college graduates this year as they did last year. In earlier surveys conducted by NACE, employers projected a 3.6 percent decrease in college hiring.

In addition, nearly 90 percent of employers said the war in Iraq would have no effect on their plans for 2002-03 college hires.

The new projections, however, do not mean all employers are hiring more new graduates. In fact, 42.4 percent of respondents said they expect to cut college hiring; at the same time, more than one-third (36.3 percent) said they plan to hire more new grads in 2002-03 than they hired in 2001-02. The remaining 21.2 percent said they will hire the same number of new graduates. (Note: Total does not equal 100 percent due to rounding.)

"When you total all the projections, we come out with a wash," says Camille Luckenbaugh, NACE employment information manager. "Considering that we were originally anticipating a 3.6 percent cut in college hiring, this is positive news."

The hiring outlook is best among service-sector employers; overall, they expect their hiring to be up 4.8 percent over last year. Among service employers, 40.5 percent plan to increase their college hiring, 36.5 percent expect to cut back, and 23 percent plan to hire the same number of new grads this year as they did last year.

Manufacturers expect to make the steepest cuts: They project that they will hire 8.4 percent fewer new college graduates this year than they hired in 2001-02. The government/nonprofit sector, a bright beacon last year, is not one this year; employers in this sector are projecting a 7 percent decrease. Among government/nonprofit employers, nearly 71 percent say they expect to hire fewer new college graduates this year; just 17.6 percent plan to boost their college hiring.

By type of employer, overall, those projecting the highest increases in college hiring are construction companies (35.7 percent increase), consulting services organizations (14.3 percent increase), and public accounting firms (14 percent increase). Those looking at the steepest cuts in college hiring include utilities companies (31 percent decrease), engineering/surveying firms (29.1 percent decrease), and chemical manufacturers (22.8 percent).

"It is important to remember, however, that, for students, 'best-bet' and 'worst-bet' employers depend on a number of factors, including the student's major and geographic location," says Luckenbaugh.