Worst of student job market slump over

Students lower compensation expectations and expand job search while companies recognize the need to hire future leadership talent

SAN FRANCISCO, Calif. The employment market for students at top-tier undergraduate and MBA programs has passed a low point and is now on the way up, according to a new study released today by WetFeet, Inc., a leading provider of research about the student job market.

WetFeetís fifth annual Student Recruitment Report found that student job seekers had adjusted their job search strategies to the current recruiting environment, considering a much wider range of industries and companies than in past years. Meanwhile, the study found, employers are continuing to pursue students at top-tier schools as a means of developing future leadership talent. Conducted in April, 2003, WetFeetís Student Recruitment Report surveyed more than 2,700 undergraduate, graduate, and MBA students at Top-50 institutions in the U.S. on issues such as salary expectations, interview rates, job and internship offer rates and the perceived effectiveness of campus and online recruiting efforts.

ìEven though the general job market continues to limp along, the demand for the best and brightest students has turned the corner,î said Steve Pollock, president of WetFeet, a leading provider of research about the student job market. ìStudents have lowered their compensation expectations and expanded their job search activities. Meanwhile employers recognize the need to maintain a pipeline of future leadership talent. As a result, employers should be prepared for tougher competition on the hiring front this fall.î

Compensation expectations fell for the third year in a row, with nearly two-thirds of all students reporting that they had lowered their expectations this year. Nevertheless, students remained optimistic about the job search with three-quarters of respondents expressing confidence that they would find a job they want. Eighty-two percent of respondents indicated that they expect the job market to be better in 2003-2004.

Other findings include:

Job offers jumped 30% between 2002 and 2003, with undergrads receiving an average of 1.1 offers (up from 0.8 in 2002), MBAs receiving an average of 1.5 offers (up from 1.2), and non-MBA graduate students receiving an average of 0.9 offers (up from 0.7).

Competition for top candidates heated up. As of April 2003, 27% of undergraduate candidates and 40% of MBA candidates had received multiple job offers (up from 19% and 34% respectively in April 2002).

Compensation expectations dropped for all categories of students. Among undergraduates, business majors reported the biggest drop, with average salary expectations falling to $40,700 in 2003 from $43,020 in 2002. MBA salary expectations dropped to $80,900 in 2003 from $81,990 in 2002. Expected signing bonuses were also lower for all categories.

The recruiting landscape shifted. Interest in management consulting, investment banking, government/nonprofit and education dropped sharply, while interest in manufacturing, retail and aerospace companies increased.

WetFeet's Student Recruitment Report 2003 is available for purchase at http://www.wetfeet.com/Employer/insiderguide_detail.asp?InsiderGuide_pk=149

. Additional information about WetFeet services, as well as previously published research, is available online: