Survey: College Hiring Up – Particularly Among Engineering Grads

November 15, 2004 (PLANSPONSOR.com) - New college graduates with business, engineering, and computer-related degrees have the most promising job outlook this year, according to a new survey.

A news release said the Job Outlook 2005 survey by the National Association of Colleges and Employers (NACE) found that accounting, electrical engineering, mechanical engineering, business administration, economics/finance, and computer science top the list of majors employers plan to hire at the bachelor’s degree level. An earlier NACE survey found that employers expect to increase their college hiring in 2004-05 by 13.1% over 2003-04.

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“We’re seeing a number of positive indications that the job market for new college graduates is improving,” Marilyn Mackes, NACE executive director, said in the news release.

In addition, employers reported plans to reassess their hiring needs more frequently, another indication that they may view the college job market as more robust, according to the news release. The largest group (33.3%) say they will reassess their hiring needs on a quarterly basis. In contrast, last year at this time the largest group, 27.4%, said they would reassess on an annual basis.

Additional survey highlights include:

  • Seven out of 10 respondents expect to increase starting salary offers to new college graduates at the bachelor’s degree level. The average projected increase is 3.7%.
  • At the master’s degree level, responding employers are most interested in business, engineering, and computer-related degrees. At the doctoral level, engineering and computer-related degrees are of most interest to respondents.
  • Just 22.2% of respondents said they expect to hire international students this year. Those with degrees in electrical engineering, computer science, and mechanical engineering have the best chance of attracting an employer’s attention.
  • More than 40% of responding employers have firm plans in place to visit college campuses in Spring 2005 to interview and hire new graduates. In addition, nearly 18% say they won’t make those campus visits in the Spring – they expect to complete their hiring in Fall 2004.

According to NACE, the top 10 degrees in demand at the Bachelor’s Degree level are:

  • Accounting
  • Electrical engineering
  • Mechanical engineering
  • Business administration/management
  • Economics/finance
  • Computer science
  • Computer engineering
  • Marketing/marketing management
  • Chemical engineering
  • Information sciences and systems.

S&P: Pension Obligations Outpace Assets in '03

December 23, 2003 (PLANSPONSOR.com) - The Standard & Poor's 500 pension underfunding level grew to a record $259 billion in 2003, as a year-long bull market did little for pension funding levels.

Pension asset levels in the S&P 500 companies increased mightily in 2003, riding the 25% increase of the S&P 500, to a total of $1,063 billion from $951 billion a year-end 2002.   However, increasing even more were pension obligations, which soared to a year-end projection of   $1,323 billion, up $160 billion from the 2002 close of $1,163 billion, according to data supplied by Standard & Poor’s.

Additionally, the funding status to market value remained nearly unchanged this year at -2.58% from -2.62% in 2002.   By comparison, at the very apex of the bull market in 1999, S&P 500 funds were over funded, with the surplus representing 2.30% of total market value.  

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Even though the pension shortfall continues to widen, S&P equity market analyst Howard Silverblatt ensures investors the companies on the whole have enough processed, either on hand or in their investments, to meet current pension obligations.   Investors should still keep on eye on the situation though, since, Silverblatt cautions,   “Investors need to assess the full obligations of a company, where the required funds will come from and how any shift in expenditures will affect future growth.”

To aide investors in their quest for knowledge, the Financial Accounting Standards Board (FASB) has just released a revised rule number 132, requiring companies to disclose asset allocations, investment strategies, and contributions.   Starting next June, companies will also have to report future benefit payments.  

“Investors need to familiarize themselves with these values and tables, and understand what these figures mean for company growth,” Silverblatt said.

To further assist pension fund watchers, S&P complied a chart comparing this year’s pension funding status with previous years.

STANDARD & POOR’S QUANTITATIVE SERVICES

S&P 500 HISTORICAL SUMMARY PENSION DATA

(Values in $ Billions unless otherwise noted)

YEAR

PENSION

PROJECTED

PENSION

PENSION

PENSION

FUND

END

ASSETS

BENEFIT

FUND

STATUS

OBLIGATIONS

STATUS

 

 

OBLIGATIONS

STATUS

% OF

% OF

% OF

 

 

 

 

GAAP

S&P 500

S&P 500

 

 

 

 

INCOME

MARKET

MARKET

 

 

 

 

 

VALUE

VALUE

 

 

 

 

 

 

 

2003 Est.

1,063

1,323

-259

-60.38%

13.17%

-2.58%

2002

951

1,163

-212

-83.50%

14.35%

-2.62%

2001

1,089

1,090

-1

-0.54%

10.42%

-0.01%

2000

1,239

1,015

224

50.38%

8.67%

1.91%

1999

1,278

995

283

70.15%

8.08%

2.30%

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