Demand for College Grads to Rise 8%, Survey Says

CHICAGO — College graduates face an encouraging new year in the job market, according to a leading report released Monday.

There will be an an 8% increase in corporate demand for graduates with bachelor’s degrees and a 4.6% jump in starting salaries, according to Northwestern University’s annual Lindquist-Endicott Report.

The report also predicted that new graduates with master’s degrees will be sought at a rate 14% higher than last year and their starting salaries will increase 3.5%.

The 242 firms surveyed nationwide for the report painted a rosy picture of the 1989 economy, with 61% expecting an improvement over 1988, 36% expecting no change, and only 3% expecting a downturn, said Victor R. Lindquist, director of placement at Northwestern and author of the report.

“Corporate America is confident the economy will remain strong despite concerns by many so-called experts about the volatile stock market, the deficit, trade balance, mega-mergers and the increased competition in the marketplace,” Lindquist said at a news conference.

Technical fields will remain the most lucrative for first-time job-holders, the survey indicates. Starting salaries in engineering fields for holders of bachelor’s degrees will increase an average 2.5%, from $29,856 in 1988 to $30,600 in 1989.

Those with bachelor’s degrees who seek jobs in chemistry-related fields can expect the second-highest starting salaries--$28,488--up 5.1% from from $27,108 in 1988, the survey indicates.

But the biggest salary jump will be in sales and marketing, with the $25,560 predicted in 1989 up 8.8% from the $23,484 starting salary for graduates with a bachelor’s degree in 1988.

Salary increases for new master’s degree holders will be up 2.4% to 5.8% over last spring, he said.

The report is considered a leading indicator of job prospects for college graduates. Of about 500 companies that received surveys this year, 242 sent in responses used in the report, Lindquist said.

The results have a margin of error of about 3 percentage points, he said.

About 70% to 80% of jobs being created are in the service sector, Lindquist said, but he also expects a resurgence in production.