University graduates take a U-turn to their hometowns

�Mama I�m coming home�

The elimination of bonuses and perks, coupled with the frigid compensation landscape and employer’s preference to applicants with some experience are only a few of the crisis’ effects that has drastically narrowed a young graduate’s job opportunities.

“Some of the recent graduates have already taken the road home. If they don’t have the possibility of continuing their studies with master courses, or fail in finding a job that could secure them a certain financial freedom, they will be forced to take the road back home, where they could be financially supported by their parents”, said Adriana Badescu, managing partner of A&C Consulting Center.

Job creation has ground to a halt. Employers are now advertising replacement jobs for which they require few-year experience and a short adjustment period. For this type of jobs, inexperienced students don’t stand a chance.

Therefore, without a safe income, and having to cope with a rent and high living expenses, graduates who don’t put their hopes on a financial help from their parents, go back home to reduce expenses. Even if the financial crisis has chopped rents - a two-room apartment in Pantelimon, Militari or Drumul Taberei may reach 250-350 euros - recent graduates are still facing hardship in raising the money.

“I finished college last year, but for the time being, I haven’t found a job yet. However, I did find a minimum-wage job. But it was impossible for me to work for only 5 million lei. The rent is almost 100 euros, and besides, I still have to eat, pay the monthly essential, and that make up another 100 euros at least. Plus transport costs and other expenses […]. So Mama, I’m coming home!”, said I.O. a recent graduate of the University of Psychology and Education Science of Bucharest.

Recession pay and jobless claims

If before crisis the majority of students and recent graduates were migrating from one job to another for 50 euros, no company is willing to make the bids anymore. Grads will only have to agree with salaries 100-200 euros lower than a year earlier.

“Pay level fell in almost all fields and across the board. And in this case, young graduates’ inexperience often works against them in the race for a pay rise. The median earnings for a grad ranges between 300 and 400 euros”, said Corina Diaconu , managing director of ABC Human Capital.

Badescu said she expected a 20% decline in entry-level job compensation. Graduates can still find job offers in debt collection, outsourcing, tech industry, and FMCG.

Master courses, a backup for job

For those born in cities where there are universities or for those still enjoying financial support from their parents, master courses seem an attractive way to go. Graduates take master courses in order to have a superior degree that could get them a job.

“I graduated a university of economics and I still haven’t found a job yet. Now I’m thinking of taking master courses since autumn. Of course, I want a job, but if I decide not to pursue it, I’ll just have to find something else to do, not just stay home”, said a fresh graduate of the Academy of Economic Studies.

However, recruiters don’t think a degree would mean much to employers who seek experience and productivity.