HOUSTON — It’s cap and gown season across the country with graduates picking up their diplomas and preparing to enter the future. Right now that future is pretty uncertain, at least when it comes to the economy.
Businesses are bracing for a recession but the unemployment rate remains historically low. At the same time, some big sectors like tech have gone through massive layoffs in recent weeks. However, that is not necessarily bad news for new graduates.
So why could layoffs at major companies actually work for people new to the job market? According to economists, companies like Amazon, Disney, and Meta are looking to save money.
That could mean losing higher-priced experienced workers and replacing them with entry-level hires, who tend to be cheaper.
When it comes to who is hiring, the big industries looking for workers are tourism, hospitality, and health care. In a recent report, the National Association of Colleges and Employers said that companies plan to hire 4% more grads from the class of 2023 compared to last year.
A recruiting software company found that the class of 2023 could expect an average salary of more than $66,000. Good news for anyone preparing to pay off college loans.