For many graduating seniors, the pandemic signified an abrupt end to the last leg of their college careers. They’ve had to rush goodbyes and miss out on events that culminated the college experience (such as commencement). But what happens next?
The U.S. unemployment rate jumped to 4.4% in March 2020 according to Trading Economics. This is the highest rate recorded since August 2017’s matching rate of 4.4%, according to the Bureau of Labor Statistics.
COVID-19 brought about the loss of many jobs, leaving millions out of work. Trading Economics reported that the number of unemployed Americans jumped from 1.35 to 7.14 million people, and this number will only get worse come mid-April, due to the increasing number of statewide lockdowns.
Many college students are already seeing the effects of the pandemic play out with canceled internships and rescinded job offers. According to The New York Times, job fairs across the country that represented large companies were canceled, and internship programs like Disney and Yelp have suspended their internships as well.
Ziprecruiter saw a 29% decrease in job postings between mid-February and mid-March.
ZipRecruiter lab economist Julia Pollak said, “These are still early effects. The first wave of industries hit will not be the last.”
The term “scarring” is one that economists have coined to refer to the lingering effect of high unemployment rates and lower salaries. It is unknown how badly this will affect seniors, because the scarring that the class of 2020 will endure will be dependent upon how long the pandemic lasts.
College graduates who enter the job market into a recession have been known to settle for lower paying jobs then those who finished the year before.
“If they’re graduating into a large recession, they’re going to suffer some pretty severe short-term consequences,” said economist Lisa Kahn. “And that’s probably going to stay with them for almost the next decade.”
This will not be the case for every student, however. Nursing students will see a 228% increase in job listings, according to ZipRecruiter. Those interested in personal consulting will also see a 26% increase.
Although job prospects may look bleak, it is important to keep on applying. Walmart or Kroger may not be the ideal choice right out of college, but a job is a job.