Unemployment rising, graduates could suffer

Students could be facing a tougher job market in the near future as the national unemployment rate increases and Ohio’s unemployment rate is at 6 percent, according to the Department of Labor.

If an economic recession occurs, unemployment rates could climb even higher.

“It depends on the area, but in general it affects job opportunities,” said Richard Kent, interim associate dean of the College of Business. “When unemployment increases, it takes longer to find a job.”

But this may not affect on-campus employment. Ami Hollis, associate director of Career Services, said she doesn’t expect a decline in availability of on-campus jobs for students.

“Students who fill on-campus student jobs work in positions that are a necessity to the university,” she said.

Students concerned about a tough job market in the coming months can prepare themselves by making sure they are the most qualified candidate, Hollis said.

“This starts by creating and periodically updating their resume, researching the job or department they are applying to, dressing appropriately when completing an application or interviewing and conducting themselves professionally,” she said.

Students looking for seasonal employment could find it difficult to get jobs at small businesses, said Julie Messing, director of the Center of Excellence for Entrepreneurship and Business Innovation.

“It’s very hard when (small businesses) have limited cash flow,” she said.

But, she added, small-business entrepreneurs could look at the economic situation differently.

“(The Center of Excellence for Entrepreneurship and Business Innovation) addresses opportunity recognition,” Messing said. “We talk about how to identify the right opportunity. Where some doors close, others will open.”

0.75 percent

Amount cut from the key interest rate by the Federal Reserve on Tuesday. The slash was unexpected and in response to a global stock sell-off. It lowered the interest rate from 4.25 percent to 3.5 percent, marking the biggest single reduction in rates documented since 1990.

5 percent

The national unemployment rate as of December 2007. And it is on the rise — an indication that the U.S. economy could be headed into a recession. Since 1950, five of nine U.S. economic recessions began with an unemployment rate lower than 5 percent. Ohio’s unemployment rate in December 2007 was 6 percent, according to the U.S. Department of Labor Regional and State Employment and Unemployment Summary.

1 year

The average length of recessions post World War II, said Richard Kent, interim associate dean of the College of Business. The National Bureau of Economic Research defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product, real income, employment, industrial production, and wholesale-retail sales.”

Contact College of Business reporter Andrea Sinclair at [email protected].