Section B • Page 6
The University Daily Kansan: GRADUATION ISSUE
Wednesday, May 2, 2001
Job market ready for graduates
By Erin Adamson
Kansan staff writer
Most graduating seniors can expect a job market happy to absorb this spring's slew of college graduates, said Gall Rooney, director of Career and Employment Services for Liberal Arts and Sciences and part-time employment.
"We continue to see the job market as being good," Rooney said. "Particularly for the college graduate entry level positions."
rooney said a recently released survey by the National Association of Colleges and Employers said employers would hire 18 percent more recent college graduates this year than last.
Doug Thompson, Overland Park senior, said he wasn't worried about finding a job after he graduated in May with a degree in both broadcast
journalism and strategic communications.
"I think the problem is a lot of people get on an Internet job search and they don't find exactly what they are looking for when they type in a job title." Thompson said.
Thompson said he had been offered a job he found through a friend who had already graduated.
nimpson said a summer internship in broadcast journalism helped him decide he didn't want to work in the broadcast field. He said he was practical about the job search and concentrated on business jobs.
"I would love to be an actor, that's what I'm passionate about," Thompson. "I'm also passionate about paying my bills. You're going to do pretty well depending on how hard you work."
Rooney said even the failure of dotcom companies wouldn't hurt this
spring's graduates' chances of finding jobs because large companies were hiring people with strong technical skills.
She attributed the increase in nonprofit jobs to active recruiting on college campuses and an increase in government jobs because many government employees were preparing to retire.
"I think we are seeing more nonprofit, government positions coming through our office," Rooney said.
Ann Hartley, associate director of Career and Employment Services, said liberal arts and science degrees offered graduates flexibility when looking for a job, but also required graduates to be creative.
Cathy Schwabauer, director of Engineering Career Services Center, said the engineering field had experienced a slight decrease of jobs in the information technology
and telecommunications industries, but would not affect many graduating students.
She cited civil and architectural engineering as areas where the job market was especially strong. Schwabauer said the School of Engineering was still collecting information about where engineering seniors had been hired.
Tyler Adams, Leavenworth senior,
said he wasn't worried at all about
finding a job with his graphics-
design degree.
Adams said many graphic design students waited to look for jobs until their end-of-the-year show, when recruiters came to campus to hire KU graduates.
Adams said he wanted to find challenging work in the Kansas City area, and he thought he would find work without a problem.
Edited by Brandy Straw
Graduates should prepare for financial challenges
Bv Dawn North
Special to the Kanson
Students graduating from the University of Kansas face the ultimate challenge of going out into the real world and making it.
This can mean different things to different people: earning a lot of money, finding a suitable job or just being happy with life. But one criterion for making it that immediately comes to mind is paying the bills.
College grads will face many financial challenges, but some of the keys to successful financial management are to become knowledgeable about what to expect, think ahead, talk with parents or another mentor, and make plans.
Bankrate.com asked financial experts for their lists of the top 10 financial surprises faced by college graduates and for suggestions on "making it" in the real world.
and social security
Top 10 financial surprises for college grads
1. Gross vs. net income — Be careful with this one. Don't plan what you can afford for rent, car, and other bills based on the gross salary. Chances are, you've never made this much money before, and you will be surprised at the huge chunk taken out for benefits, taxes
2. Cost of independence Things to consider are rent, insurance, car maintenance, utility bills, groceries, cable or Internet access, etc. Most grads will not be able to afford an apartment by themselves. Think about having one or two roommates to cut costs.
3. First tax return — Most students have filed tax returns, but chances are the forms were very simple. It gets more complicated. Think about possible deductions, such as job-hunting expenses, travel to interviews, moving expenses related to starting a new job, charitable contributions, subscriptions to journals and association dues. Also remember to keep receipts, pay stubs and other important paperwork.
4. Car insurance — Usually students get better insurance rates as long as they are on their parents' policies. When your car is no longer registered under your parents' name, you will have to insure your car on your own. This tends to be more expensive. Check with multiple companies to find the best rates, and keep the speeding tickets to a minimum.
5. Health insurance—The other insurance coverage that comes to a screeching halt when students
graduate is health insurance. Whether still in school or not, you cannot be covered under your parents' policy after a certain age. Most employers offer health insurance, but during the interim period between graduating and full-time employment, you need to talk to your parents or an insurance agent about catastrophic coverage on a short-term basis. Some colleges offer interim coverage.
6. Overlooked insurance needs When renting an apartment or a house, remember that the landlords' insurance covers the building, not personal belongings. Weigh the cost of a renters' insurance policy against the value of possessions to see if it would be worth it.
7. Bad credit decisions in college have long-term implications — Perhaps the most unsettling surprise for college graduates surrounds the impact poor use of credit during college can have for years after graduation. A bad credit report can affect your ability to rent an apartment, obtain a loan or even get a job. Many companies check credit reports and may choose not to hire based on irresponsible credit ratings. Excessive debt could also have physical consequences: depression, problem drinking, insomnia or emotional explosions.
8. Credit isn't free money — Credit card companies barrage you with offers and sign-up incentives because they want you to go into debt. That is how they make their money. Credit card interest rates can average around 18 percent. When only the minimum is paid every moth, the interest grows, and it can take years to pay.
9. Student loans don't go away
Students are often surprised by how soon six months passes and they have to start paying on their student loans. Be careful of deferring loan payments because they continue to accrue interest. Something else to remember is that if you ever declare bankruptcy, everything will be forgiven except student loans.
10. Now is the time to start saving for retirement — This may be the last thing on most students' minds, but it is a missed opportunity that will never come again. Many companies will match fully or partially what's put into a 401(k) account, and the money is taken out of the paycheck before taxes, which means that taxes are not paid on the money until it is withdrawn for retirement.
Information adapted for print from bankrate.com
— Edited by Jennifer Valodex
The Associated Press
Consumer spending incomes on the rise
WASHINGTON — Consumers were selective when it came to opening their wallets and pocketbooks in March. They spent briskly on services but were more thrify on big-ticket items like cars.
All told, the Commerce Department said Monday consumer spending rose by a moderate 0.3 percent last month, slightly faster than expected.
At the same time, Americans' incomes, which include wages, interest and government benefits, rose 0.5 percent, matching many analysts' expectations. The spending and income figures aren't adjusted for inflation.
Economist Ken Mayland of ClearView Economics said people cut back on purchases of costly manufactured goods last month because they decided they could make due with, for instance, the old car or refrigerator, given the uncertain economic times.
But consumers maintained spending on services—such as medical care and home utilities —because they are necessities, he said.
consumer spending accounts for two-thirds of all economic activity and has been a main force propping up the economy, which grew at an annual rate of 2 percent in the first quarter.
On Wall Street, blue-chip stocks declined for the day, giving back earlier gains in the session. The Dow Jones industrial average lost 75.08 points to close at 10.734.97.
While consumers have been resilient, manufacturing has been weak, business investment has been sluggish and the stock market has been volatile. Higher energy prices also have squeezed corporate profits and restrained consumer spending.
Though consumer confidence made a bit of a comeback in March after five straight months of declines, it dropped sharply again in April.
Altogether, these forces "have sapped a lot of energy from consumers but they haven't knocked them out of the game," said economist Clifford Waldman of Waldman Associates.
One big reason consumer spending hasn't collapsed in light of all these factors which tend to damp
spending is because most Americans still have jobs, economistssaid.
With the nation's unemployment rate, now at 4.3 percent, expected to continue rising in the months ahead, analysts cautioned that consumer spending may grow more slowly. Economists said that's a big factor in forecasts of weaker economic growth for the current second quarter.
The Federal Reserve has cut interest rates four times this year, totaling 2 percentage points. The reductions are designed to induce consumers to spend and businesses to invest, thus boosting economic growth. Analysts expect the Fed to cut rates for a fifth time on May 15.
In March, spending on durable goods — costly manufactured items expected to last at least three years, decreased by 1.1 percent, following a 1.6 percent rise the month before. March's decrease mostly reflected reduced spending on cars.
"We're seeing evidence of more careful shopper," said Paul Taylor, chief economist at the National Automobile Dealers Association. Higher energy prices, he said, is trimming spending and more expensive gasoline is steering some buyers to less expensive smaller cars.
Spending on services rose 0.7 percent, up from a 0.2 percent increase. The services category includes such things as gas and electric utilities, doctors visits, bus and train fares and rent for housing.
Spending for nondurables, such as food and clothing, was flat, after a 0.5 percent drop in February.
With income growth outpacing spending, Americans' personal savings rate — savings as a percentage of after-tax income — rose to a negative 0.8 percent in March from a negative 1.0 percent in February.
Even with the improvement, analysts say, the savings rate does not provide a complete picture of household finances because it doesn't capture gains realized from such things as higher real-estate values or from financial investments.
In February, Americans' spending rose by 0.2 percent, according to revised figures, slightly weaker than the government previously estimated. But income growth was revised up to 0.5 percent, slightly stronger than previously thought.