Number of new hires for Class of 2023 college grads falls short of expectations

In a good news / bad news scenario, the updated hiring projections from employers show they are planning to hire 3.9% more graduates from the college Class of 2023 than they did from the Class of 2022, according to new findings from the National Association of Colleges and Employers (NACE). While results of NACE’s Job Outlook Spring Update survey are positive, they are down from earlier projections: In the fall, employers projected a 14.7% increase (See Figure 1.)

Among respondents to the current survey, more than one-third plan to increase hires and more than half will maintain hiring levels, while approximately 12% expect to trim their college hiring. These expectations also have shifted from fall 2002 projections, when more than half planned to increase hires and less than 6% planned to decrease college hires.

“These trends can be explained, in large part, by examining the movement within certain industries,” explains Shawn VanDerziel, NACE executive director.

“Some industries that planned large increases in the past are cutting back on their college hires. This is especially true for technology companies, which are laying off employees after hiring in large numbers during the pandemic.”

For example, survey respondents in the information industry planned to hire almost 87% more new college graduates at this time last year. Currently, they are projecting a decrease in hiring of almost 17%. Similarly, last year at this time, computer and electronics manufacturers were planning to increase hires by more than 41%; although still positive, that projection now stands at 19.1% for the Class of 2023.

Another substantial swing is evident among utilities companies. Their hiring projection for spring 2022 was an increase of 11.5%; this year, utilities companies anticipate decreasing hiring by 39%—the largest reported decrease among survey respondents.

This movement coincides with shifts in average starting salaries for the current class. NACE’s Winter 2023 Salary Survey found that starting salaries for new college graduates earning bachelor’s degrees seem to be leveling off.

This trend is also evident for those in traditionally higher-paying disciplines. For example, among students studying engineering, the average salary is expected to rise less than 1% over last year. For those studying computer science, the average salary is projected to fall 4%.

“Despite these shifts, this market is promising for graduates,” VanDerziel adds. “And there is still ample opportunity for tech graduates to use their skills in other industries. For example, our Winter 2023 Salary Survey report found that two-thirds of responding employers—across industries—are planning to hire computer sciences majors from the current class. They are still in high demand.”