“In some specific sectors it is possible that junior people with relatively high salaries which have not enough experience or have not been with the company long enough to justify their salaries in the current environment, may be laid-off in favour of young graduates being employed for lesser pay”, Thomas Standring told Wall-Street.
The 250,000 young graduates have exerted an enormous pressure on labor force last year, given the installation of the economic crisis in late 2008 which eventually led to massive layoffs in economy. Moreover, a new generation of young graduates will emerge, some 150,000-200,000 which will make this pressure on labor force even more acute.
The chance of college graduates still unemployed could be to shift focus to other sectors were the recruitment drive is still active, such as retail, BPO, or IT&C, sectors not severely affected by the financial crisis. Apart from this, young graduates could raise their employment chances by lowering their pay claims.
The biggest salaries for junior positions are in IT&C, financial-banking, Business Process Outsourcing or law, where they vary within 500-800 range and a decrease of salary claims of graduates seeking a junior position in these sectors could guarantee them a job in crisis.
However, as the number of graduates rose, the unemployment rate increased accordingly, which means less jobs available on the market hence less alternatives for graduates. Nationwide, the number of unemployed climbed by over 4,000 in April, up to a three-year high of 518,000, ANOFM informs.
The unemployment rate climbed 5.7% in April in Romania, as in April 2008, it stood at 3.9%. “No provisions can be made under the current circumstances... However, based on our experience in other countries, there is a typical reaction to a downturn, but there is no guarantee that the Romanian market will react the same: at first, the unemployment rate grows, up to the moment where companies would have established their strategy for 2009-2010 - and maybe longer term - then, there may be a certain exchange of workforce between companies”, said Standring.
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