College Grad Hiring Up 9.5%

Employers plan to hire 9.5 percent more new graduates in 2011-12 than they did in 2010-11. In comparison, in the same survey a year ago by National Association of Colleges and Employers, employers anticipated double-digit hiring increases.

Although the overall increase isn’t as high the increases projected last year, other factors indicate a positive job market for the current class. For example, slightly more than half of respondents have plans to increase their individual number of hires from last year. This follows a positive trend illustrated in Figure 2, where the percentage of employers planning to increase their number of hires continues to grow, while the percentage with plans to decrease their number of hires continues to shrink. Thus, it appears that college hiring is moving in the right direction.

Among employers with plans to increase hiring, more than half indicated that either their companies have more business or they are experiencing company growth. Another 20 percent cited the need to replace retiring workers, their aging work force, and increasing attrition rates. Still others reported the need to build their pipeline of new college graduates, as some organizations explained that they are too “top heavy.”

Of employers with plans to maintain their individual hiring numbers, most cited similar business conditions and demand as last year. Others pointed to budget limits, low attrition rates, and high retention rates.

The nearly 12 percent of employers with plans to decrease their college hiring numbers indicated that they have budget concerns or no openings for new college graduates this year.