Where Do We Go From Here?
The looming threat of recession is making soon-to-be grads unsure of the next step
As the winter quarter comes to an end, seniors are beginning to determine their post-college plans. But as companies scale back hiring and begin laying off employees, upperclassmen find themselves debating whether to enter a turbulent workforce or to pursue further education through a master's or Ph.D. program.
According to the New York Federal Reserve, there is a 47% probability that the United States will enter a recession in 2023. While some economists are optimistic because of the semi-stable stock market, many other economic indicators, like the housing market and riskier short-term debt, suggest a possible economic downturn.
Resignation and layoff rates have increased in recent years, and 30-34-year-olds are the largest impacted age demographic. However, the unemployment rate for recent graduates is still 4% higher than that of the general population, despite the increased availability of entry-level positions.
On March 10, Silicon Valley Bank, based out of Santa Clara, was closed by bank regulators as the Federal Deposit Insurance Corporation took over the institution’s debt after it could not match withdrawals due to the sinking value of its 10-year treasury bonds.
All of this financial turmoil has exacerbated student concerns about entering the workforce, especially given its proximity and relevance. While Santa Clara has had an excellent record in terms of post-grad opportunities, with 83% of students becoming employed full-time or attending graduate school full-time, according to a 2016 survey, the U.S. economy is drastically different than it was seven years ago.
By way of a response, Santa Clara’s recent event, “Recession Proof your Future,” featured alumni who graduated during economic recessions. Each panelist gave advice on how to navigate changing job markets and quickly pivot to a thriving industry.
The Career Center, a campus resource for students thinking about their future, recognizes the anxieties of a turbulent economic future and promotes a positive and adaptable mindset throughout the search for a job or internship.
“Something that I share with students a lot is to be persistent with your goals and also be very flexible with how you get there,” said Career Development Specialist Vania Tong. “Students often think that they need to figure out their career and life immediately, and that's not the case. You might have your job out of college for a year or two and then move on to another opportunity. Each experience is going to be a new data point to inform your next step.”
An understanding of educational and workplace identity can anchor students in their pursuits and help to narrow down their goals. For students looking to understand who they are and how to keep that consistent even through career shifts, it is important to find what principles appeal to them.
“Do not be afraid to ask questions, to be curious, to tap into social intelligence,” said Myriam Bartz, the Assistant Director of Career Development at the Career Center. “And then identify what is important to you. What are your guiding principles? Who are you, what are your strengths, your talents and your interests? Getting a better understanding of who you are will help you find roles or companies that you would like to pursue.”
With changing standards for employees’ level of expertise, the value of a master’s or doctorate degree is increasing. Those with such degrees have a low unemployment rate, ranging from 1.5 to 2.6 percent. While a master’s degree does bolster a resume, the cost-benefit analysis of attending graduate school varies based on major and career path.
Recent trends indicate that more students are opting to attend graduate school rather than immediately enter the workforce.
Santa Clara’s 5-year B.S./M.S. program is an option for students who are interested in an advanced degree, but not the two-plus year commitment. This program enables students to complete a master's degree in as little as 10 months. The process starts as early as senior year, when students can enroll in 2-4 graduate-level units per quarter.
It is only offered to students pursuing degrees in business and STEM disciplines and is especially popular with those enrolled in the School of Engineering, as many positions in the field require master's degrees.
“I chose to do the 4 + 1 program because for my career I feel like having a master's degree opens up a lot of doors and opportunities in the job market,” said Christian Garcia, a senior electrical and computer engineering major.
In a time of unsure markets, the program allows students to think about their next step while saving on tuition and avoiding debt. There are also benefits to staying within the university.
“It's quicker and more efficient compared to a traditional grad program or if I were to transfer somewhere else,” Garcia said. “I think that time is valuable because then I can start pursuing other things as soon as I finish the program, and if I want to do anything further than that, it's a good first step.”