New college graduates reap the benefits of best market in decades
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Sarah Grillo/Axios
Students graduating college this spring are entering what many career experts say is the best job market in years.
What's happening: Minnesota has a record low unemployment rate of 2.2%. Plus, college grads can now take jobs at faraway companies and work remotely in the Twin Cities, further expanding their options.
- "This is the best job market in decades," said Mick Doherty, executive president of Dahl Consulting, an Edina-based staffing and recruiting firm.
Why it matters: Unlike their millennial cousins, new Gen Z grads get to be selective in where they work and have the leverage to command larger starting salaries.
What they're saying: "We're absolutely seeing that students who are getting multiple offers can be a little pickier," said Bryan Shealer, senior associate director for employer and alumni relations at St. Olaf College.
- At the University of Minnesota, career fairs now have more employers and fewer students, said interim senior director of career services Sara Nagel Newberg.
- "Employers are trying to figure out how they can do more to reach our grads," she added. "I haven't seen employers this stressed."
Between the lines: It's not just bigger salaries that grads want. They're also looking for companies that are a cultural match, provide clear responsibilities and offer flexibility, mainly in the form of hybrid work, Doherty said.
- The tables have turned in the interview process, he added. "Graduates are interviewing the company to make sure it's a right fit for them."
Zoom in: Minneapolis-based U.S. Bank is being more competitive with sign-on bonuses and relocation expenses, said Vicky Hidalgo, the bank's national leader of early talent. It's also making sure job candidates hear about the company culture.
- "We're really focused on creating a workplace where everybody has a voice and diverse experiences are valued. I think both of those angles really play into the work that college students want to do," she said.
Yes, but: While the job market is robust, new grads have some challenges.
- Some will start a job and work completely remotely, which doesn't allow for face-to-face contact.
- "Recent alumni have said, 'I can't get the mentoring that I need,'" Newberg said. "I've heard an employer — they're fully in-person — and they're finding candidates that are seeking them out because that's the environment they want."
The bottom line: While wages are up, so is inflation. The biggest expense for new grads is an apartment, and the average rent in the metro area is now nearly $1,400, up 4.9% over a year ago.
Read more: