Recession = Exploding Job Offers
Posted on April 22, 2008
Filed Under Career Development, Job Search
We’ve been hearing a lot lately about the recession and if we are or aren’t in one. I for one think we are, regardless of what ‘W’ says. Going hand in hand with a recession are what are called ‘exploding job offers’. For those of you not familiar with exploding job offers, take a look at what Steven Rothberg at collegerecruiter.com has to say about them, ‘An job offer which an employer makes to a candidate, which the candidate accepts, and which the employer later rescinds usually because of changing economic conditions. Recently the Wall Street Journal featured an article about how a year ago law firms were falling all over each other to recruit and retain entry level lawyers for their summer associate programs (sort of like internship programs) and as first year associates (entry level lawyers). Now some of those same law firms are cutting back:
- Some law firms like New York-based, 800 attorney Pillsbury Winthrop Shaw Pittman LLP shrunk the duration of their summer associate program from 12 to 10 weeks. That effectively cuts the pay of their summer associates / interns by almost 17 percent.
- Other law firms are delaying the start date of some of their first year associates. In addition to Pillsbury cutting its summer associate program, it is also delaying the start date of its first year associates.
- Chicago-based, 700 lawyer Sonnenschein Nath & Rosenthal LLP is taking an even harsher approach. It admits to exploding the offers for two summer associates and two first year associates who had accepted offers to work at its Charlotte, North Carolina office.
Exploding offers are not confined to law firms. Over the next couple of months we’ll likely see many more examples emerging from employers large and small, public and private, urban and rural’.
The recession is here, exploding job offers are here. I don’t think this will be as bad as what we saw in 01-03, but be prepared.
Until next time…
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It’s interesting that you compare the current economy to 01-03. I would think it would closer to the ’70’s and the oil crisis.
Not that I was in the work force then, but my Dad sold real estate when interest rates were in the double digits.
I’m not in the HR industry, but the difference I see between today and post 9-11 is that while there was uncertainty on whether or not you would have a job next month, if you were employed, you were okay.
Now not only is the job stability tenuous, but even if you have a job your disposable income is dropping dramatically due to the increase in energy and gas prices, which in turn is inflating the prices of almost everything else.
Carla’s last blog post..When Reading Blogs Gets Expensive
@Carla -hopefully things won’t get as bad as they were in the late 70’s, if they do then hold on. For now, I think many of us feel challenged in a variety of ways, both from the job market and financially, but it’s not critical yet.
Of course for those that are out of work or who have lost their homes due to the mortgage interest rates, this is not the case. Time will tell how bad this will get for the rest of us.
[...] by author Scott Williamson have indicated the complete opposite. His forecast is to expect layoffs, rescinded job offers, and further fallout in the job market from the housing [...]