The Bear Meltdown Rattles B-Students

New hires wait to hear the fate of their jobs with Bear Stearns as financial hiring in general appears shakier

The stunning collapse and fire sale of investment house Bear Stearns (BSC)—a major employer of business graduates—has added another worry to an already shaky hiring outlook for business grads, college officials say. While major career services organizations haven’t entirely reversed earlier predictions that the hiring market for 2008 grads is going to be strong, reports of recruiters cutting back on the number of job offers and, in some cases, lower starting salaries are beginning to surface.

Reductions are not just happening in the financial-services sector but across the board, from consulting companies to those in various manufacturing sectors, said Tom Kozicki, board president of the MBA Career Services Council, the umbrella group of school career placement officers. The officers are pointing out that most grads are still receiving one or more offers, but these latest cutbacks will mean they will have fewer options to choose from—and less bargaining leverage for salary. “What I’m hearing from people within the major companies who bring on intern classes each year is that they are still doing recruiting, but they are bringing on many fewer interns as compared to last year,” Kozicki said. “It is hypercompetitive anyway, and this just makes it that much more competitive.”

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