While finance students at institutions of higher education, such as those at Boston University’s School of Management, may face difficulty finding a job after college, BU students are still optimistic they will receive the proper training to land a job after graduation.
Institutions have been cutting finance jobs and raising standards for applicants, stated Michigan State University Collegiate Employment Research Institute’s 2013-14 Recruiting Trends report, which will be released to the public Friday.
Mark Williams, a professor of finance in SMG, said a steady decrease in the number of operating banking institutions since 2008 could make it difficult for finance students to find employment in the field.
“Not only are there less finance jobs in banks, they’re competitive,” Williams said. “That’s why you’re seeing a drop [in employment opportunities].”
Job opportunities in the financial and insurance service fields will diminish in the 2013-14 year, with a 40 percent decrease in total hiring for surveyed organizations, the study stated. In the 2012-13 year, organizations hired an average of 52 employees. That number has decreased to 32 in the past year.
MSU CERI Director Phil Gardner, one of the authors of the study, said it was unclear how lasting the effects of this trend could be.
“It [the study] found that the financial services sector is contracting their hiring for next year significantly,” Gardner said. “… We don’t know if this is just a short-term detraction, if it will ease and start going the other way, or if these are permanent reductions,” Gardner said.
The report projects that graduates with MBAs will also face a 58 percent loss in job opportunities in the 2013-14 year.
College of Arts and Sciences professor Barton Lipman, who teaches in the economics department, said in an email he expects to see a decline in the demand for students graduating with MBA degrees.
“It seems to me that this is one of those cyclic fluctuations that occurs,” Lipman said. “There were a lot of high-paying jobs, so a lot of people went after them. Gradually, the hiring for such people shrank as the sector filled up, but it has taken time for this to become clear. So salaries and jobs are dropping.”
Gustavo Schwenkler, a professor of finance in SMG, said students shouldn’t be worried by the report.
“Finance is still a good choice for a career, but you have to make smart decisions,” Schwenkler said. “…As long as you have the right background, it’s not impossible to get a finance job.”
Takumi Yamamoto, a senior in SMG concentrating in finance and marketing, said BU students entering financial services will likely be able to find employment despite a potentially shrinking financial services job market.
“It’s concerning for the future, but the finance program at BU is very strong,” Yamamoto said. “… They really prepare you in terms of resume building and interview skills. At the end of the day it’s about how you present yourself to recruiters during the interview process.”
Jennifer Huynh, a junior in SMG concentrating in finance, said the report could discourage students from entering the field.
“Even now I find that as a junior, it’s hard to find an internship in financial services,” Huynh said.
Daniel Paik, a senior in SMG concentrating in information systems and business operations, said he wasn’t concerned by the report.
“I’m more focused on the technology aspect of business and I feel like that’s booming right now,” Paik said.
He also said SMG provides opportunities for employment that gives BU students an advantage over other potential candidates.
“The BU network is really strong,” he said. “They connect you really well to your alumni, so even though the job market may be decreasing, the alumni connection is stronger and [is] able to pull a lot more BU students into the job market.”
Jake Sobieski, a freshman in SMG concentrating in finance, said BU students were trained to expect fluctuations in the field of finance.
“Anything having to do with the stock market and the job market is very volatile,” Sobieski said. “You just have to do your best and network. They teach us how to do that here.”
Taryn Ottaunick contributed to the reporting of this article.
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