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How Recession Effects Graduates?


2020, a black year for the entire world.  Corona virus has slowed down the pace of the economies of various countries and it is predicted that the world is going to face the worst ever recession after World War-II. Some employees are not getting salary while some are working on 30% or 60% salary and in this way employment is getting affected. The graduate labor market is also badly affected.
Recession is the term that refers to a significant decline in general economic activities in a particular state or country. The decline is reflected in the GDP, income, employment, industrial production and retail-wholesale sector of the affected nation. Recession makes the economy sluggish.
Effects of recession on graduates The market can take several years to recover from the recession.And graduating in a nation where the economy is falling apart is challenging. Job and growth opportunities are least available in an economically weak nation. It is inferred from a study that if the unemployment rate increases then the annual wages decreases for the newly graduates who have just entered the market. 
The annual package of the students also varies on their ability [in normal time also]. It is observed that the students who are expected to get lower wages even in normal time may have to face the major setbacks during the recession period as compared to the students who are expected to get higher packages. Also the students who score excellent in the competitive exams and get a highly reputed college may not face severe impacts of recession after entering into the Market.
Usually, the newly graduates switch companies frequently in the first 3-5 years for the improvement of wages and job position. But during recession, they are likely to get lower quality jobs in terms of total payroll and designation. They have to work for more number of hours than initially assigned even on a lesser payroll. But the graduates who are predicted to get better salaries may get an opportunity of job mobility even in recession. So it could be concluded that recession affects the annual package of all the newly graduated students. Some may face it for the shorter period and some may have to deal with it for longer term.





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