New grads anxious about Bay Area jobs market
SAN JOSE -- New data released Thursday by the payroll and benefits company Gusto forecasts job growth will drop 25 percent this year compared to last year among new college graduates in the 20-24 age range.
Nationally, San Jose ranks at the top of cities hiring graduates in that demographic but, even with a six-figure salary to start, the cost of living reduces the buying power of that level income by about half.
"Even if there are headlines around economic uncertainty, there are still opportunities for new graduates," said Luke Pardue, an economist with Gusto. "New grads may have to look a little harder but there still are a ton of positions out there for them this year."
The class of 2023 will enter the jobs market amid an economy undergoing profound shifts after a time of growth and plenty of opportunity for their peers who graduated just a year ago. Those living in San Jose and the South Bay have felt the impact of layoffs in the tech industry. Pardue said that several industries show improved opportunities: retail, food and beverage, health care and education.
"The fact that we've created more opportunities than any other city in the United States for those young grads is just a testament to the innovation economy that we have here," said San Jose mayor Matt Mahan at a news conference Thursday. "We are offering the next generation of innovators the very best opportunities to succeed and they are taking them."
While the average new salary in San Jose is $102,838, it feels more like $57,580, according to Gusto. The cost of living makes other cities outside California a competitive alternative. (The data is based on the hiring trends of 300,000 small- and medium-size companies.)
"Ever since I came to the college, I wanted to stay in the Bay Area. I grew up in the Bay Area, I wanted to stay in the Bay Area and I'm very much aware of the cost of living here. It's extremely expensive," said Christine Mok, a communications major at Santa Clara University. "Everyone here, we're all friends, we went through all of college together and, now that we're on the job search, obviously there is that little bit of tension there when someone gets a job and someone doesn't."
Mok spends one to two hours a day looking at potential openings and company profiles as part of her job search. She also has given herself a goal of applying to a certain number of positions listed each week in addition to finishing her senior year.
"I'm scared, I'm worried about what am I going to do right after college, you know? Am I even going to be able to get that job?" she said. "That makes -- not just me but a lot of the graduating seniors -- really nervous about getting a job and also those who do have full time internships, it makes them a little nervous on keeping that job."
Mok said she does have some options to consider, thanks to her internships and research before her final term in college. Other students say an early approach has been crucial as they prepare to graduate this year.
"I'm ready to jump in with optimism, I'm excited for, you know, what the rest of my 20s is going to look like," said Lucas Voron, a senior majoring in computer science engineering at SCU. "I think, like, an important part of any job search is being, like, hungry enough to secure your future."
Voron had his eye on a job with a major tech company right after college but he knew the layoffs this year would make that difficult. Earlier in his college career, he found an internship with a smaller company that eventually got bought out by one of the giants in Silicon Valley. Thanks to that internship he has a job waiting when he finishes school this spring.
"I think the number one thing that new graduates need to keep in mind is having a job search that is open and creative and not necessarily confined to typical industries or typical positions that they might look at," Pardue said.
