The COVID-19 pandemic has created an economic crisis as substantial as the health crisis that has spread around the world. Millions of jobs have been lost as employers have gone under as a result of the various measures introduced to limit the spread of the virus. It’s still not clear what the long-term implications of this might be, but with researchers suggesting that we will be living with the virus for years to come, it seems likely that they will be significant.

New research from Michigan State University suggests that the job market for new college graduates will decline for the first time since the 2008 financial crisis as a result of a severe adjustment in hiring patterns as a result of the COVID-inspired economic slowdown.

The results emerged from the Collegiate Employment Research Institute annual Recruiting Trends undertaken by the University each year, with the latest survey of over 1,000 companies suggesting new hires will be around 59,000, with employment higher among those with associate’s degrees but lower among those with master’s and MBAs.

A changing landscape

The authors highlight the fundamental shift in the employment landscape for new college graduates as a result of the pandemic, with employers seeming to prefer recruits with more experience than degrees.

They suggest that employers are generally taking advantage of the large pool of experienced workers that have become available as a result of the pandemic-driven unemployment, coupled with structural changes, such as more just-in-time hiring and a preference for part-time roles that give employers more flexibility.

The general landscape is a difficult one, however, with 25% of employers suspending recruitment during spring. The internship market was especially hit, with 40% of internship programs suspended during this period. The situation was further exacerbated by universities halting for-credit courses and the internships associated with them, even if employers were willing to fulfill their part of the bargain.

In slightly more positive news, however, these internship figures do appear to be rebounding, albeit not to the levels we were seeing before the pandemic.  Equally, just as work was increasingly done virtually, so to have interns been recruited virtually.

“For organizations where virtual internships have worked well, expect more in the future,” the researchers say. “Students need to understand employers will continue to use virtual tools to recruit, hire, and employ people.”

Perhaps most concerning of all is that around half of respondents thought that it would take another couple of years before things really recovered, with 15% suggesting it might even take longer.  A sobering prospect for those hoping for a swift return to normality.