Young graduates still in the hunt for jobs could make room in local labor market, even in crisis, by filling the shoes of junior people with relatively high unjustifiable salaries, according to Thomas Standring, executive director at Ernst & Young’s Human Capital division.
“In some specific sectors it is possible that junior people with relatively high salaries which have not enough experience or have not been with the company long enough to justify their salaries in the current environment, may be laid-off in favour of young graduates being employed for lesser pay”, Thomas Standring told Wall-Street.
The 250,000 young graduates have exerted an enormous pressure on labor force last year, given the installation of the economic crisis in late 2008 which eventually led to massive layoffs in economy. Moreover, a new generation of young graduates will emerge, some 150,000-200,000 which will make this pressure on labor force even more acute.
The chance of college graduates still unemployed could be to shift focus to other sectors were the recruitment drive is still active, such as retail, BPO, or IT&C, sectors not severely affected by the financial crisis. Apart from this, young graduates could raise their employment chances by lowering their pay claims.
The biggest salaries for junior positions are in IT&C, financial-banking, Business Process Outsourcing or law, where they vary within 500-800 range and a decrease of salary claims of graduates seeking a junior position in these sectors could guarantee them a job in crisis.
However, as the number of graduates rose, the unemployment rate increased accordingly, which means less jobs available on the market hence less alternatives for graduates. Nationwide, the number of unemployed climbed by over 4,000 in April, up to a three-year high of 518,000, ANOFM informs.
The unemployment rate climbe
