College hiring for Class of 2018 expected to drop

The hiring projection for college graduates has dropped as employers now plan to hire 1.3 percent fewer graduates from the Class of 2018 for U.S. positions than they did from the Class of 2017, according to a report released on April 19 by the National Association of Colleges and Employers (NACE).

This latest projection from NACE’s Job Outlook 2018 Spring Update report is down from the 4.0 percent hiring increase employers anticipated for this class last November in the Job Outlook 2018 report. (See Figure 1.) This marks the first projected hiring decrease since 2010, when employers planned to cut hiring for the Class of 2010 by 7 percent.

The fact that the college hiring outlook for the Class of 2018 has dropped this spring is a prime example of how volatility in a small number of industries can impact the overall hiring outlook.

Two industries in particular are driving this overall decrease.

Insurance firms responding to the Job Outlook 2018 Spring Update survey anticipate decreasing hires by 42 percent due to the recent natural disasters – hurricanes, floods, and wildfires – that caused high dollar amounts in catastrophic losses. Meanwhile, retail employers plan to decrease their hires by almost 33 percent, citing the changing landscape of their industry and lack of new openings as key factors.

The Job Outlook 2018 Spring Update survey—which updates the hiring projections for the Class of 2018 that were reported in the Job Outlook 2018 survey in November was conducted from February 12 – March 30, 2018. The survey was sent to 958 NACE employer members; 150, or 15.7 percent, responded.

~ Posted by: Richard Webster, Ace News Today   /   Connect with Richard on Facebook and Twitter