Job opportunities for college graduates are rising across the country, but significant cuts within Michigan's automotive industry are hindering the overall increase, according to a report released today by MSU's Collegiate Employment Research Institute.
Instead of a 14 percent nationwide increase, it would be closer to 6 percent if Michigan's auto industry cuts are taken into consideration, said Phil Gardner, the institute's director and author of the report.
"I'm not sure how it's going to play out," Gardner said. "It's certainly a downer for Michigan. There are some small employers hiring.
"We just don't know if there are enough out there to offset the losses by the few large companies that are cutting a significant number of job opportunities at this time."
The annual report took information from 878 employers from across the country, 13 percent of which were from Michigan. Last year, Gardner reported a 20 percent increase in job growth.
Despite the negative impact of the state automotive industry, there has been growth in Michigan, economists said.
The state retains about 70 percent of college graduates who attend school in Michigan, said Paul Krepps, spokesman for the Michigan Economic Development Corporation.
"It sounds like other (non-automotive) jobs are increasing, so there are many opportunities here for college graduates," Krepps said.
But the automotive sector causes problems in other industries, he added.
For example, if someone loses a high-paying job in the auto industry, that person will spend less money in other sectors of the economy, such as real estate, stocks and taxes.
It will take time to see how the losses in companies such as Delphi Corp., General Motors Corp. and Ford Motor Co. will affect the rest of the economy, said Maura Campbell, spokeswoman for the Michigan Department of Labor and Economic Growth.
The effect depends on how Michigan's government and residents react, Gardner said. People need to keep a positive outlook and keep looking for jobs, he said.
Majors in accounting, finance, marketing, nursing, liberal arts, supply chain management and civil and environmental engineering are some of the areas expected to see an increase in hiring, according to the report.
Manufacturing, information services, education and nonprofit services are expected to see a decline in hiring.
Medical technology senior Ashley Eigner said she isn't worried about getting a job because of the high demand in her field.
"I want to get away for medical school, but I want to work in Detroit so I can give back to the community," Eigner said.
If students get anything out of the report, they should see that they need to start their job hunt early, Gardner said.
"It's getting out and talking to people, talking to alumni, making contacts," he said. "It's going to take work to get a job.
"You can't wait until April and expect then to have a job. It needs to be something you plan on."
Melissa Domsic can be reached at domsicme@msu.edu. Staff writer Fredricka Paul contributed to this report.
