sax

It's a grim economy for new grads - MSN Money

Interesting article from MSN money.

quag_mire

the article talks about how those business grads graduating in 2008 will face a recession...however, i recently met a U Chicago MBA alum and he told me that I am lucky to be graduating high school in 2008, because by the time i graduate college in 2012-2013, the "recession" will be over...is there any accuracy in that statement? What do people currently working in financial services think?

Milton Roark

The MBA student isn't making an exceptionally insightful statement. In the business cycle there are both ups and downs (think the internet boom, and then the comparative slow down in later years). Recessions are generally followed by upswings in economic activity culminating in a relatively high point for GDP, and then another down-swing. (The trend over the years tends to be a positive slope, however). So if the recessions happens/is happening at some point or another it is probable that the economy will rebound, in which case it would be very good to be a new graduate at that point (firms are more willing to hire, higher pay etc). When that boom comes is dependent upon how long it takes for recession to start, and how severe it is (as more severe recessions can be met with a stronger boom).

quag_mire

yes, I'm well aware of business cycles and booms and slumps...but what i was specifically wondering was whether or not the boom is going to come sometime in 2012-2013, when I will be graduating, or whether it's bound to happen before/after that....is there any way to predict when the boom is going to happen?

aworldapart

I have a feeling Ms. Cleo might know.

Oiram

Why are they using MBA information? Would or would it not apply to undergrad. grads?

VectorWega

Call me now for your free tarot card reading!!!

As for MBA salaries, i'm not even sure they are that dire right now. The statistics I have seen show a rise in salaries from the year previous (this is not overall data, but just a sample from certain schools).

Nick017

Even if you graduate during a recession, the starting salary for MBAs won't have decreased a significant amount more than the salaries of other jobs will have decreased.

taxguy

It's not that grim for accountants. In fact, numerous firms and agencies are hiring the better grads.

better grad= 3.4+ GPA

Oiram

Maybe the article is speaking about starting salary adjusted for inflation?

southpasdena

accounting firms are hiring the same amount of new hires, but that are trying to trim from their experienced

hockeydemon05

When do the Baby Boomers retire? Job outlook will be good then.

willpower102

The best things the economics book ever said was that no discernible pattern exists and, in general, economies are self-correcting. (Both of which kinda nullify the need for the field, right? )

nauru

Nominal salaries are almost always going up. But often prices rise even faster. So in real terms, especially right now with the actual inflation rate in the double digits (using the inflation measurement used pre-Clinton era) people are being paid lower starting salaries, and most Americans are becoming poorer.

Stillers06

Isn't the problems with social security keeping the baby boomers working longer therefore effecting the job market?