'U' study says job market may remain friendly, for now

A report recently released by University researchers may encourage students to jump into the job market after graduation.

Economics Prof. Saul Hymans and researchers Joan Crary and Janet Wolfe compiled their quarterly forecast on the U.S. economy, predicting continued moderate growth.

"There was stronger economic growth than we expected," said Crary, citing increased consumer spending on durable goods and services.

The October stock market plunge, Crary said, did not have a great impact on the economy

"It doesn't look like it had a major effect," Crary said. "Most of the loss in the market has been regained. It doesn't appear to have affected consumer confidence."

A healthy economy translates to a healthy job market, and the forecasters said they are confident that the economy will continue to thrive.

"The economy has been growing very strongly," Wolfe said. "There should be a solid job market."

Some career planning experts said they agree that the job market is currently booming for University students.

"We are seeing a steady stream of interested employers," said Kerin Borland, senior associate director of the Office of Career Planning and Placement. "A student coming from the University stands to see a very lucrative job market."

But Borland said jobs are more available in technical fields and less available in fields such as advertising.

"We are inundated with calls for computer science majors," Borland said. "Regardless of the job market, students still really need to tap every resource available to them to help them find employment."

Students who plan to graduate in May say they are not worried about finding a job.

"There are a lot of opportunities out there for me," said Engineering senior John O'Hara, who plans to graduate in May. He said there are numerous options in electrical engineering, the field he plans to pursue.

The economists predicted that the Federal Reserve Board will soon raise the federal funds interest rate.

"We expect the Fed will raise interest rates because we really need to slow down the economic growth," Crary said. "We're growing faster than we can sustain."

The forecast predicts that unlike the past year, both inflation and unemployment will creep up slightly.

"We still consider it to be healthy," Crary said. "We expect continued growth. We assume that while inflation will increase a bit, it will remain very well behaved."

The University has conducted the forecast since the '50s, and Crary said the predictions are well respected throughout the country.

"As far as these forecasts go, it is very accurate," Crary said.

Wolfe, who has worked on the forecast for 11 years, said the new information has changed some aspects of the report, but the overall forecast has stayed the same.

"The method hasn't changed, but we are continually taking into account new data," Wolfe said.

12-10-97