Ahead of Friday’s Jobs Report: The Jobs Picture for New Grads

With summer around the corner, a fresh batch of college grads is preparing to enter the workforce. What are their prospects for jobs and pay? This Friday’s jobs report offers some clues about prospects for the class of 2017 -- here’s what we’ll be watching for:

• 171,000 new jobs added to nonfarm payrolls in May;

• Unemployment rate up slightly to 4.5 percent;

• Average hourly wages up 2.4 percent from one year ago.

• Labor force participation rate down slightly to 62.8 percent.  

About 1.8 million American students will earn a bachelor’s degree in 2017, according to figures from the Department of Education. For these grads entering the labor force, today’s bustling job market is an ideal time for job hunting. Being lucky enough to graduate college during good economic times sharply boosts early career pay and job prospects. Research shows that students who graduate in good times earn more, work at larger and higher-paying companies, and switch jobs less often than those who graduate during recessions.

A Sunny Outlook

The good news for 2017 grads is that today’s job market remains one of the strongest in a generation. Today’s unemployment rate is hovering at 4.4 percent, with many cities enjoying rock-bottom unemployment rates of 3 percent and below. That puts young workers -- especially those willing to relocate to cities with the best job prospects -- in a strong bargaining position. On Glassdoor today, there are about 5.4 million U.S. job openings ready for applicants -- a ratio of three open jobs for every 2017 college grad. The sectors with the most open jobs today are health care (864,000 jobs open), retail (828,000 jobs open) and business services (659,000 jobs open), which includes many consulting roles popular with new grads. The fast-growing tech sector has about 297,000 jobs open today. To help young workers navigate these jobs to find the right career path, we recently published a list of 20 most popular jobs after college, based on real-world early career paths from thousands of resumes shared on Glassdoor.

Get Ready to Move

One of the best career moves for young college grads is to relocate to a new city with the best job prospects. Research shows moving for new jobs works like an investment, raising wages and career prospects. Young grads without ties to real estate or family can move their skills across the globe to find the best-fitting role available -- rather than settling for whatever jobs happen to be close to home. For grads looking for ideas of where to locate for the best job prospects, consider the 25 Cities Where Pay Goes Furthest like Houston, Atlanta and Detroit.

Are Big Cities Worth It?

A concern facing many recent grads is whether it’s worth it to relocate to an expensive big city for a job. New York, San Francisco and Washington, D.C. have long been magnets for college grads, offering a wealth of job opportunities and prestigious roles, but also a very high cost of living. That makes it hard for young workers to save, pay off student loans and generally get ahead financially. Are expensive cities worth it? For most young college grads, the answer is “yes,” according to research. Studies show that spending time in bigger, more expensive cities works like a “second college degree,” raising wages for many years afterward. Starting a career in a bigger city means earning prestige, working at top employers, learning cutting-edge skills, absorbing the culture of dynamic and productive cities, and making valuable personal connections that can last a lifetime. Although moving to a big city often means living with roommates and making financial sacrifices, the time spent in a big city can put careers on a fast track for new college grads. Research shows the value of these “big city” experiences -- in terms of higher pay and career advancement -- can persist for years even after leaving the big city to settle down in smaller, more affordable areas. With today’s robust economy and strong hiring by employers, the outlook is bright for new college grads -- some welcome good news as the class of 2017 begin their careers this summer. To speak with Dr. Andrew Chamberlain about this month’s jobs report or labor market trends, contact pr [at] glassdoor [dot] com. For the latest economics and labor market updates, subscribe to email alerts here and follow @adchamberlain.