By Ezra Salkin
Rising unemployment rates could have considerable consequences for SCAD students, not only those graduating in the next 12 months, but those who are working part-time jobs while enrolled in classes.
National unemployment has risen to a 14-year high of 6.1 percent. A further 240,000 jobs were lost in the month of October. The Georgia state rate rose to 6.5 percent this month and exceeded the national rate for the 8th consecutive month, with the largest one-year job losses coming from local manufacturing, construction, mining, and business and professional service sectors.
These job losses most affect SCAD students when workers get laid off and are forced to seek jobs they normally wouldn’t, such as in the retail or food service sectors. Employers are much more likely to hire people with more experience that are willing to work for the same rates as students.
Larry Yaughn from the Savannah Career Center of the Georgia Department of Labor said this is the bleakest employment market he has seen in the 25 years he’s been handing out job orders, and doesn’t see any upturn on the horizon. Not even the excitement of a new Presidential administration has been successful at slowing the rising unease. Usually, stock prices rise and people spend because they’re better at putting a “spin” on things, especially when Democrats come to office, Yaughn explains. But in this instance, not even this outlet has yielded any fruit. The reports are just too negative and consequently they have stifled consumers’ motivation to spend. “It took us three or four years to get into this mess,” he cautions. “It will probably take us three to four years to get us out.”
“Business cycles, the periods of growth and retraction of our economy (recession), are ordinarily considered ‘normal’ events,” says SCAD business professor Russ Wigh, who weighs in on the various facets of our economy in his blog, “Taking Care of Business.” The causes for each one are never the same as the last, because our economy is “dynamic and ever changing.” The wild gyrations in the stock market and significant losses workers have taken in their retirement savings seemingly are the catalysts for this potentially long and severe one. The one constant that holds true for each recession, however, is the loss of jobs. “Payroll is the largest expense companies bear, and jobs are usually the first thing to go as companies begin belt-tightening in response to slowing business conditions.”
Sue Hinkin, dean of career services, said that SCAD is yet to see any direct consequences of the recession in terms of the hiring rate of SCAD graduates. There are, however, ominous signs looming ahead. For example, certain companies are only making one visit this year instead of their customary two. Other companies that originally stated they’d visit the annual career fair have changed their minds, despite the fact that the fair will be held particularly early this year, in mid-February, to keep a few steps ahead of the downturn. Another frightening sign is that the gaming company Electronic Arts, a potential powerhouse for SCAD film and digital media students, recently laid off hundreds of workers.
Hinkin stresses the importance of starting early, and not waiting until graduation to begin job hunting. Graduates likely have to take positions that aren’t necessarily their first choice. There’s been a large decline in staff jobs, so graduates may have to consider temp or freelance work.
“You might not start with your dream job or your dream salary, but it’s important that you get your foot in the door somewhere and learn something,” said Hinkin. On a note of optimism, she adds that SCAD students still have the great advantage of graduating from a school with a prestigious reputation and close industry relations. Declining opportunities are a reality, she says, and graduates may have to settle for places like Charlotte, N.C. or Birmingham, Ala. instead of New York or California.
