Vibrant economy leads to strong campus job market

Low rates of unemployment and an overwhelming need for new workers among area employers have produced an unusually open job market for University students.

The fourth quarter Employment Outlook Survey for 1998, published by temporary employment agency Manpower Inc., indicates that 56 percent of Ann Arbor employers intend to increase their workforce this fall, the highest percentage in Michigan and more than double the Midwest average.

"Employers are asking us to find people, find out what hours they can work and working out schedules around the new employees," said Gail Reamer, Manpower's vice president of operations. "That kind of thing was unheard of five years ago."

The survey has been conducted since 1965 and was revised by the University's Survey Research Center in 1976.

Its statistics are determined by the answers of 15,000 employers nationwide, and the survey examines 10 different industries.

Accompanying this demand for workers, and perhaps due to this huge demand, unemployment rates have been strikingly low.

The Michigan Employment Service Agency reported a 2.5-percent unemployment rate in Washtenaw County for the month of July and a 2.1 percent rate in Ann Arbor.

Both numbers are significantly lower than the 4.5 percent nationwide unemployment rate for July. The rates for August will be available later this week.

It is difficult to determine how the county has managed to maintain such low unemployment rates, some experts say.

"Economists don't understand how the labor market could be so 'tight,'" said economics Prof. George Johnson, who has done research on long-term unemployment.

Johnson defines "tight" as a market that has significantly low unemployment and a high demand for workers.

"It's almost like World War II, when they would nearly drag people off of the street near Willow Run to make B-17's," he said.

"With a tremendous excess demand for labor, a substantial rise in wages should have occurred," Johnson said, but he doubts wages actually have risen.

Area business managers agree these statistics have a great impact on University students who are job hunting. Potential employers of students are not only abundant, but willing to work with class schedules.

"If there are certain shifts students can't work, usually I cannot hire them. But there are quite a few time slots available right now," said Amal Sabbagh, a manager at the Azure Grill.

Many markets are wide open to students in the current job climate.

"It doesn't matter if you are a student or not at this time of year," said Jan Turner, a greenhouse manager at Garden Center and Nursery in Ann Arbor. "We kind of adhere to the students' schedule. It's a very physical job, so it's tough for students to go home and study, but we're always hiring," she said.

Some students seeking jobs, including LSA first-year student Amelia Juhl, say they're not having a difficult time finding employment. While she has only applied for two positions, she said she has seen many opportunities.

But Juhl said, "There's just nothing I've seen that I really want to do. 'Open' doesn't mean favorable."

Juhl said she is optimistic she will find a satisfying job opportunity.

The appeal of the current job market to students could signify a decline in the number of students filling work-study jobs.

Larry Greene, a secretary at the University Medical Center, worries that area businesses may pull students away from a work-study position he is trying to fill.

"We have a very busy department," he said. "We always look forward to students coming back in the fall. We're miserable without them."

Greene said he believes students find it easier to find a "normal" job than to investigate work-study options. "If a student can work at McDonald's for $9 an hour, it's hard to attract them to a work-study position," he said.

Assistant Director of Financial Aid Vickie Crupper said she does not believe this is a probable scenario.

"On campus, the work-study program is very competitive with wages," Crupper said. "For the past few years we have been blessed with a low unemployment rate. We don't see that as something that detracts from our program."

09-23-98