The job market took a bigger hit from the global COVID-19 pandemic than anyone expected, and no one is feeling it more than recent college graduates. According to a survey of 1,000 recent graduates conducted by Monster, a whopping 45% of the class of 2020 is still looking for work a year after graduation. With such a large pool of job-seekers and a variety of environmental factors affecting the labor market, it’s a good time for businesses to consider staffing liability insurance and to develop an understanding of the newest graduates and their impact on staffing.
COVID Setback Issues
Recent and upcoming graduates are feeling the effects of the COVID-related economic slowdown. 85% of new graduates have reported their career goals being set back by more than a month, with 29% saying the timeline is more like six months. 66% feel pessimistic about their ability to ever land a job that meets their career goals.
Pessimistic Salary Expectations
69% of recent graduates say they expect the pandemic to lower their salary potential. That number is even more pronounced for people of color, with three-quarters of non-white graduates reporting lower starting salary expectations due to COVID-19. Employers should prepare for these concerns by ensuring that hiring practices remain equitable, implementing training for hiring managers, and obtaining staffing liability insurance.
Resume Concerns
With millions of Americans still unemployed, the global pandemic has strongly impacted the labor market for recent college graduates. Gen Z job-hunters are concerned about the effects of job shortages on their resumes. More than 79% of recent graduates believe their degree is more valuable than job experience, but 68% also fear that future employers will judge their resumes based on COVID-related gaps.
First-Job Fears
Gen Z graduates believe their degrees make them overqualified for entry-level work. When they have to start at the bottom of the ladder, they believe that the experience should last no more than six months. 85% of recent graduates worry about the connections with coworkers, perks of office work, and mentorship that they missed as a result of the pandemic.
Flexible Job Hunting
The art of the job hunt has changed from the suit and tie affair it once was. Generation Z employment seekers would be happy to complete the search and interview process completely through text. 72% of recent graduates also report a willingness to relocate if necessary.
Alternate Work Options
As a result of challenges in the labor market for recent college graduates, gig work is on the rise. 77% of graduates are willing to accept temporary or freelance employment while permanent job hunting, and nearly a quarter of them intend to maintain the side hustle after they land a full-time job.
Recent graduates have been shaped by the environment of the COVID-19 pandemic, and their entry into the job market reflects their experiences. Employers should be aware of their needs and tweak their staffing practices accordingly.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.