Graham Staffing Services, Inc.

Like other people who went back to school during the downturn, Samuel Bowles figured a graduate degree would give him a competitive edge.

As he searches for work in what remains a crowded job market, Bowles thinks having an advanced diploma has lost its luster somewhat, though perhaps only temporarily.

"I obtained my master's degree because the economy had started to go down and the job market had started to dwindle," said Bowles, 25. "I had just finished my undergrad at Longwood (University), and I knew that if I was going to be competitive I would need to take the next step."

Gray McDermid also went back to school during the economic downturn to earn an MBA. A two-year process of networking and an internship helped him land a job just before graduation this month.

"No matter what school you are going to to get an MBA, it is a challenge," said McDermid, who got his graduate degree from the University of Richmond. "I know some folks that are going to some of the other best-ranked programs in the country, and their search is no easier than anyone else's.

"That just speaks to the level of competition that is out there right now, for a select number of jobs, particularly in specific industries."

Bowles and McDermid represent the Jekyll and Hyde nature of the job market right now, even for people with graduate degrees. It is improving but still highly competitive compared with before the recession, experts say.

In a survey of 4,600 employers nationwide, the Collegiate Employment Research Institute at Michigan State University found that hiring for graduates with bachelor's degrees will increase about 10 percent this year, the first increase in two years.

The survey showed a more mixed picture for graduate students, as less than 40 percent of the employers surveyed indicated they would be increasing their hiring of graduate students this year.

Another survey, by the National Association of Colleges and Employers, shows employers across the country reported that they will hire 19 percent more new college graduates this year than they did in 2010.

That was up from hiring plans in September, when employers anticipated hiring 13.5 percent more new graduates from the Class of 2011 than they hired from the Class of 2010. It was the first time since 2007 that the organization of college career services professionals and human resources professionals has seen a double-digit increase in spring hiring projections.

"We are seeing an improvement in people bringing college graduates on board," said Lindo Gharib, Richmond metro market manager for Robert Half International, a staffing firm. "We are seeing a number of employers who did not make a lot of moves in the last two years start to add to their staff."

Yet companies remain selective, he said.

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Bowles, who got a master's degree in public relations in 2010, is still looking for a job in his chosen field.

Bowles said he worked part time at a bookstore while in school. That job turned into a full-time one after he completed his degree, and while he looked for work in his field of study.

But he was laid off this year, joining throngs of other people with career experience who have lost jobs and are competing for select positions.

"It's hard to really shine when you are having to compete with others who were also laid off and have more experience," he said. "I am trying to do volunteer work and boost my résumé a little more and keep it current and active."

On the negative side, many college graduates or people with graduate degrees are stuck in jobs outside of their field, a condition known as being mal-employed.

Nationwide, about 1.94 million graduates younger than 30 were mal-employed between September and January, according to data compiled by Andrew Sum, director of the Center for Labor Market Studies at Northeastern University.

Sum said mal-employment has significantly increased in the past decade, making it the biggest challenge facing college graduates today. In 2000, Sum said, about 75 percent of college graduates held a job that required a college degree. Today that's closer to 60 percent.

Though the economy is growing and new jobs are being created, Sum said, those graduating this spring are not likely to see major improvements soon.

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About 1.7 million students are projected to graduate this spring with a bachelor's degree and 687,000 with a master's, according to the U.S. Department of Education.

Yet there are signs of steady, though slow, improvement in the job market.

"Locally, we are seeing a lot of action, with a lot of jobs being posted for our students from local companies — a lot more than a year ago," said Sue Story, director of the University Career Center for Virginia Commonwealth University.

The U.S. unemployment rate ticked up to 9 percent in April, as the economy added 244,000 jobs, the U.S. Labor Department reported. The jobless rate may increase as more people who had given up looking for jobs re-enter the workforce.

The hiring picture also remains far better for college graduates, with the unemployment rate for college-degreed workers at 4.5 percent.

"Certainly companies and employers are still cautious about who they are hiring and when they are hiring, but there has been an improvement from a year or two years ago," said Gharib, the local manager for the staffing firm Robert Half International.

Demand remains strong for college graduates and people with advanced degrees in the health-care sector, Gharib said. The hiring trend has been mixed between companies looking for temporary or full-time workers, he said.

Hiring also is strong for graduates with engineering, business and accounting degrees, Story said.

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Government hiring has fallen off, while the private sector has picked up this year, Story said.

A drop in government hiring has affected Kadie Chandler, a Hanover County resident who also decided to pursue a graduate degree during the economic downturn.

Chandler said she doesn't regret the decision to pursue a master's degree in homeland security from VCU, though it has added to her college debt burden. With graduation near, she has sent out hundreds of résumés to no avail.

She said she has applied for jobs in homeland security or law enforcement across the state and country. She even applied for some jobs outside her field.

She has gotten some callbacks for jobs, but they either pay too little or would require her to move her family too far away.

She attributes the difficulties to budget cutbacks. "The competition is so fierce right now. It is cutthroat," she said.

"There is not a lot of demand in the private sector for people like me," she said. "Even with the graduate degree, I have to be careful about what I put on my résumé without being seen as overqualified."

She said she has heard that a lot about the overqualified label.

"The problem is you are applying for jobs that they are going to turn you down for because they would have to pay you more than somebody coming out with an undergraduate degree."

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In business and engineering, having a master's degree doesn't make a big difference in terms of starting salary, Story said, citing research by the National Association of Colleges and Employers.

However, it does make a difference in job prospects and salary in fields such as education, health care and social work, she said.

Each individual has to weigh the costs and benefits of going back to school, she said. Even if an advanced degree does not pay off immediately in this economy, it could be important in a few years.

"Even if it is not helping you now financially, down the road when it comes time for that promotion, you might need that masters and say, 'I am so glad I have got it.'"

* * * * *

McDermid, the UR MBA graduate, knew that his job search was going to be tough in this economy, so he started networking and sending out résumés early during his time as a graduate student.

It paid off for the 28-year-old. Just a few weeks before his graduation May 8, an internship helped him get a full-time job as an associate at Boxwood Partners, a Richmond private-equity and mergers-and-acquisitions advisory firm.

McDermid entered graduate school two years ago, after serving four years in the Air Force.

"That was kind of right when the market was really in the doldrums," he said. "Everyone that I worked with said, 'You are crazy for getting out' (into the job market) right now."

"I hoped the job market would recover in two years, and that it would present a better picture," he said. "That drove me to really spend a lot of time, probably more time than I would have otherwise, looking for a job, building my network, and being very proactive about things over the course of that two years."

McDermid's internship at Boxwood was crucial in the decision to hire him, said Patrick Galleher, a partner and managing director at Boxwood.

"The best way to get a role at a firm like ours is to intern and learn on the job and prove your value," Galleher said. "Especially in today's economy, that's the best way to join a firm like Boxwood."

Richard Coughlan, senior associate dean at the University of Richmond's Robins School of Business, says he has noticed a shift toward more people working while attending school part time.

The job market "is certainly better than last year but not really back to where it had been several years ago," Coughlan said.

"I think in the Richmond region, most MBAs on graduation ought to be able to find a reasonably good job within a few months of graduation."
 

 Tips for graduates

Look for new ways to build work history. Consider internships, volunteer assignments or temporary work as a way to gain experience and build your skill set.

Network — online and off. Many companies don’t advertise open positions, so networking plays an important role in finding job opportunities. “I am going to say at least 80 to 90 percent of people find a job through networking,” said Sue Story at the VCU Career Center. “It takes more time and effort, but it is the most reliable way to get a job.”

Use on-campus resources. College career centers usually welcome recent grads and can help in your job search. You also might be able to connect with other alumni who can provide advice.

Mind your online image. More than 80 percent of employers use social media to research potential hires, so it is crucial to monitor and manage your professional reputation online.

Find jobs before they’re advertised. Read articles to identify companies that are hiring or expanding, and send them your résumé.

Initiate contact. Research companies you would like to work for and ask for an informational interview to learn more about the organization.

Get connected. Companies often prefer to fill openings though staff recommendations, so identify any connections to the firm within your personal network that might improve your chances.

Meet with a recruiter. Staffing executives can be your eyes and ears in the job market. Recruiters also provide useful feedback on your résumé and interview skills, and help you locate full-time and temporary jobs.