Job Hunt Getting Grim For Recent Graduates In Silicon Valley
The sliding economy is making it more and more difficult for young professionals and recent graduates to find jobs in Silicon Valley, once an area that seemed immune to economic woes.
Tech companies in Silicon Valley that initially resisted the swooning of the economy are looking to cut costs and shed entry-level positions, and people in their 20s are finding a college degree is no longer their golden ticket to a dream job in high tech.
Jillian Crawford, 25, has been searching for a marketing job with a tech company since she graduated with honors from San Jose State University in June.
"I feel like I put in all the work (in school) to not have a job," she said.
So far she has applied to about 25 marketing jobs with no response from employers. Still, she remains committed to finding a job in Silicon Valley and would be dismayed if she had to look in another sector.
Challenger, Gray and Christmas, a consulting group, said the global economic crisis has taken a big bite out of Silicon Valley tech companies, including Hewlett Packard Co, Yahoo Inc, Sun Microsystems Inc and Applied Materials Inc who have shed 140,000 jobs in the last few months.
Employers are starting to put an increased value on experience and tenure, something recent graduates lack.
Kerry Kiley, Bay Area regional manager for employment firm Adecco, said many companies are moving seasoned employees around to fill open positions rather than add another person to the payroll.
"Things out there are very, very tough right now and seem to be getting tougher before they’re getting better — even for the educated," she said. So far only engineers buck the trend.
Crawford has since moved back home with her parents to save money while job hunting.
"I was thinking (it would take) maybe a couple weeks, maybe three weeks, before finding a job I was really interested in," said Crawford. "I am completely still shocked at how long it’s taken."
But according to U.S. unemployment statistics, Crawford has plenty of company. The U.S. Bureau of Labor Statistics shows that Americans between 20 and 29 years old have the highest unemployment rate of any age group.
In November, the unemployment rate for Americans ages 25 to 29 years old jumped to 7.3 percent from 5 percent a year earlier; while for Americans 20 to 24 it rose to 10.4 percent from 7.7 percent. The national unemployment rate is 6.7 percent.
Bureau of Labor Statistics economist Amar Mann said unemployment among young adults usually spikes during bad times. Unemployment rates among 20- to 29-year-olds rose faster than older age groups during the two most recent U.S. recessions, in 1990 and 2001.
He also said it is not uncommon for young Americans to head to graduate school or extend their undergraduate education rather than enter the workforce during tough economic times. Mann observed slight increases in graduate school enrollment during 1990 and 1991.
Mann said getting a master’s or a PhD eventually does equate to a higher salary. "Especially when your job prospects aren’t that bright, you might be more willing to forgo two years in the workforce to get more education to increase your marketability."
Many college graduates in the Valley are grappling with the decision to take a service job or continue to hold out for a position that utilizes the skills they gained in college.
"I don’t want to go into a restaurant (and work). I want to be able to use my degree," said Christine Chase, 24, of Campbell, California.
Chase was laid off from her contractor job at AT&T in August and is struggling to pay her bills with her unemployment benefit.
After four fruitless months on the job search, Chase recently registered with a recruiting agency for help finding a job.
"I’m going to have to be a little more flexible now and take what I can get."
Kiley suggests that employers will be more attracted to those who adopted a flexible attitude toward the job search and took advantage of open employment opportunities, regardless if the job required a college degree.
"This is not the time that pride is going to stand in the way of your paycheck," said Kiley. "Sometimes you have to humble yourself."
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