While the collapse of Bear Stearns and the subsequent revoking of job offers have been in the news as of late, they are extreme examples of an overall dip in the job market. “We did see a decline in the number of employers on campus, but not by too much,” said Director of the Career Center Rosalind Hoffa. “Perhaps the bigger decline was in the number of positions that they had available.”
Hoffa said there was a perceptible decrease in the number of large firms that visited campus, which was compensated somewhat by increased visits from small firms and boutiques. “Lehman Bros. and Goldman did not come for [full time] positions, but they did come for internships and we worked behind the scenes with some alumni to make connections in other departments for [full time],” said Hoffa. “Morgan Stanley did come but after a huge and positive visit, found they did not have the positions they expected.” She said no big banks are hiring at this time, though that could change. So far, she has observed that only the finance industry and perhaps consulting have been impacted by the dipping economy.
“It did seem, especially in the fall semester, that fewer employers were coming to campus than in the past,” said Judd Olanoff ’08. “And some interviewers admitted that their companies had reduced the number of job opportunities available for graduating college seniors, in light of market conditions.”
Shi Chen ’08 said she started her job search this year having not done any summer investment banking internships during her junior year, and she faced an increasingly shrinking job market. “Since many of the job cuts in the past year came from banks faced with tremendous write-downs, you would expect that finding jobs in the financial sector would be more difficult this year,” said Chen. “In my experience, it was a very difficult year to get into investment banking.” According to Chen, however, most students who had full-time internships at large investment banking firms the previous summer were able to keep their jobs.
Professor of Economics Daniel Barbezat advised seniors not to stress much about the current credit crisis. To Barbezat, it’s not so much a crisis as a gradual, though unpredictable, change in the structure of the market. “I think the benchmark of the ’90s, when a lot of people were easily moving into these jobs, has shifted,” said Barbezat. However, he added later, “My sense of the market that Amherst College seniors go into is that it has not been profoundly affected.” He noted that the numbers of juniors hired this year for summer internships is an encouraging sign. “The market consensus is not that a profound recession is at the doorstep.”
Barbezat emphasized the high unpredictability of the market. The market has not completely adapted to recent changes, he said, and only time will tell the final outcome. For example, Barbezat noted that when the Bureau of Labor Statistics announced that 80,000 jobs had been lost in March, the market actually went up, because people had been expecting far worse. “Part of the problem in hiring from November to January is that it’s all based on the expectations of future markets.”
Though times might seem tough in the short-term for some seniors looking for jobs in finance, Hoffa is not concerned. She said the Career Center has been advising seniors to take advantage of whatever connections they have, be it through Amherst, relatives or friends, to find the job that’s right for them. Difficult times have provoked a renewed effort to focus on career search strategies. “What I have found over time is that when there is a downturn in the economy, overall, when everything is down and dusted, there is very little change in where students go and how students find their positions,” said Hoffa. In her view, the credit crunch is having a greater impact on higher-level workers than it is on entering college graduates.
Furthermore, in the long-term, she expects that students who want to pursue investment banking will end up where they want. “Can an Amherst student redirect their amazing skills and talents to other industries? Yes. Are there other ways to get into banking down the road, if not right now? Absolutely.”
Justin Epner ’08 is still navigating the senior job search. “I imagine our class is having a tougher time, but there’s no way for me to know for sure. I think most people understand that in the longer term, we’ll be OK,” said Epner. “My philosophy is that no matter what the broader market looks like, there are opportunities out there and I just have to do my best to take advantage.” He added, “I don’t have a job. I can’t feel bad for myself or make excuses like ‘well, the market is bad, that’s why I’m struggling.’ I just have to work on my interview skills, learn to market myself effectively, make contacts, etc.”
Barbezat said that the current unpredictable job market could provide potential investment bankers with the opportunity to take a step back and survey the rest of their options. Too often, according to Barbezat, economics majors see investment banking as a default option and don’t fully weigh the pros and cons of the profession.
For students that are sure investment banking is what they want to pursue, though, Barbezat thinks they should not be deterred. “I don’t think [the market crisis] is a reason to shy away from the field,” said Barbezat. “If a student is committed to working in the field and really loves the kind of work it would be, I think students should go for it.”