Students at Pepperdine University Graduation (Photograph Courtesy of Pepperdine University)
Taking a Leap of Faith? How the Class of 2020 Can Respond to The COVID-19 Economy
“COVID-19 has definitely changed my job plans,” Pepperdine University senior Maggie Davis wrote in an email. “I was hoping to find an internship this summer, and now I’m not sure if I can find a job at all when I graduate.”
Such statements may become increasingly common, as more than 26.5 million Americans have filed for unemployment in the past six weeks, Rachel Siegel and Andrew Van Dam wrote in an April 23 Washington Post article. Additionally, nearly 4 million new college graduates will be entering the job market this May, Douglas Boneparth wrote in a March 31 CNBC article.
Unemployment Claims Since the Advent of COVID-19 (Data from U.S. Bureau of Labor Statistics)
The lack of jobs is compounded by the fact that the Dow Jones Industrial Average, a key indicator of U.S. economic health, has dropped more than 12% since the pandemic began, its worst drop since 1987, Connor Smith wrote in a March 12 Barron’s article.
Dow Jones Stock Performance Over the Last 6 Months (Image from Google Market Summary)
“The nation has not experienced this magnitude of layoffs and economic contraction since the Great Depression,” Heather Long and Van Dam wrote in an April 9 Washington Post article. They add that recovery is not likely to be swift. Experts at J. P. Morgan and Chase predict the economy will shrink by 40% before the pandemic is over, Sergei Klebnikov wrote in an April 10 Forbes article.
Continuing Education
In addition to unemployment levels, COVID-19 may have significant impacts on graduate school admissions and decisions on the part of prospective graduate students.
“I was mainly between Columbia University and USC,” Pepperdine senior Savannah Welch wrote in an email. “New York is already a hotbed for COVID cases, so I was a little on the fence about attending school on the East Coast.”
Welch went on to say, “I was pretty much offered a full-ride to USC, so it financially made the most sense to stay local for my MSJ (Masters of Science in Journalism).”
While most graduating seniors took the GMAT, GRE, LSAT or MCAT and applied to graduate programs last year, 2020 rising seniors may have drastically different graduate school application experiences.
The Educational Testing Service has begun moving to an at-home version of the GRE with a remote proctor, while the Graduate Management Admission Council has suspended testing at many sites and increased safety protocol in those that remain open, James Bikales and Kevin Chen wrote in a March 23 Harvard Crimson article. The MCAT and LSAT exams for March were also canceled worldwide.
Harvard University history professor and Director of Graduate Studies Sidney Chalhoub told the Harvard Crimson that his department may need to drop GRE scores from the admissions requirement for students submitting applications this fall.
Apart from transforming admissions procedures, COVID-19 may also impact the number of students choosing to apply for graduate school, as the economic downturn causes students to think twice before taking out student loans, Bikales and Chen wrote.
Modified Strategies
For graduates and others seeking employment during this time of social distancing and stay-at-home orders, Maile Hetherington, assistant director of Programs and Partnerships at Pepperdine’s Seaver College Career Center suggested that students utilize technology.
“We encourage students to take advantage of our online resources, virtual career counseling appointments, virtual professional development workshops and digital networking opportunities,” Hetherington wrote.
In addition to taking advantage of online resources, Hetherington argued flexibility is key. Students whose previous job offers have been rescinded due to the virus can offer to work for free if they are financially able to do so, Catherine Guiles wrote in an April 8 article. Students can also ask to be put on the top of the list once the economy has improved.
Students should also be open to considering fields and positions they previously would not have and to putting out as many applications as possible, Hetherington wrote.
“I’m definitely applying to whatever I can,” Davis wrote. “I’ve been doing that anyway, but I’m applying to a lot more now.”
Guiles also recommended that applicants conduct practice video interviews with friends as the majority of recruiting will be conducted online for the foreseeable future. Students should specifically practice looking at the camera rather than the screen, using professional body language and clearly enunciating their words.
Hetherington said students must also be patient as companies may take longer to respond to inquiries and applications as offices transition to online and make hiring decisions based on new financial predictions.
Apart from searching and applying for jobs, Hetherington encouraged students to take this time to continue developing their skills.
“Utilize LinkedIn Learning to access thousands of skill-building courses, contact professors in your major and volunteer to help with research, study a foreign language, complete an online certificate program or join a professional organization,” Hetherington wrote.
Hetherington also suggested that students “take this time to cultivate your professional network,” including building a LinkedIn profile and using it to connect with professionals at companies and in roles of interest.
Students can also conduct informational interviews with alumni, advisors and other individuals to learn more about their experiences, get advice and build connections, Heatherington wrote.
Where To Look
While continuing to apply for full time careers, some students may also want to pursue entry level and customer service facing positions to at least bring in some income until the COVID-19 economic shutdown is lifted. This is important as some experts, including Federal Reserve Chair Jerome H. Powell, predict the economy will not be ready to reopen until the late summer or early fall of this year, Van Dam wrote.
Thanks to growing demand for essential items like food and cleaning supplies, companies like CVS, Walmart and grocery chains are hiring, even as other industries like hospitality and restaurants have been forced to lay off employees, Elisabeth Buchwald wrote in an April 7 Business Week article.
Companies Hiring During COVID-19 (Image from Business Week)
Walmart, for example, is planning to hire 150,000 workers nationwide for initially temporary positions, with later potential for conversion to permanent positions, Buchwald wrote. Walmart has also expedited the hiring process, advertising that applicants can be hired and begin working in “as little as 24 hours,” Chauncey Alcorn wrote in a March 23 CNN article .
Amazon is also planning to hire 100,000 workers to handle the increase in orders as shelter in place protocols have spread around the country. According to Buchwald, these new positions, “across the U.S. in fulfillment centers, transport operations, Amazon Go Stores, Whole Foods Stores, and in deliveries,” will initially be temporary, but may transition to permanent as the crisis continues.
In addition to Amazon and Walmart, food and convenience stores nationwide are adding temporary positions, including 7-Eleven, which not only needs employees for its stores but also for delivery.
Albertsons, which owns Safeway and other grocery chains and has stores in more than 34 states, is hiring 30,000 new employees, Alcorn wrote. Kroger (which owns Ralph’s) is hiring an additional 20,000 for its retail stores, manufacturing plants, and distribution centers, Buchwald wrote.
Drugstores and home improvement stores, both of which have been deemed essential by state and local governments, are also hiring during this time. Lowe’s, for instance, is hoping to employ 30,000 workers in temporary and permanent positions in stores and distribution centers, Buchwald wrote. CVS is planning to add 50,000 full time, part time, and temporary workers for its retail stores, distribution centers, customer service department, and delivery program, Alcorn wrote. CVS also plans to hire employees furloughed or laid off by the hotel industry, as well as hosting virtual job fairs and interviews to speed up the hiring process.
Delivery drivers and logistic operators are also in demand due to increased work from home orders, which has allowed many restaurant workers to transition their roles rather than be laid off. Pizza Hut and Papa Johns are both looking to hire tens of thousands permanent and part time workers nationwide to staff their stores and deliver pizzas.
Grocery and food delivery companies like UberEats, Postmates, and Instacart are also hiring due to the pandemic. Instacart alone is looking to hire “300,000 full time shoppers in North America over the next three months,” Alcorn wrote.
While these jobs may only pay in the $15 to $20 an hour range, for students currently unemployed, it may be better than nothing.
For those with more advanced training, there are more lucrative options. “There are many businesses that were doing well before this and will be doing well long after this,” Los Angeles based investment banker Benjamin Mallin wrote in an email. “E-commerce, media, streaming, content, agriculture, supply chain, and logistics,” are all industries recent graduates should consider, Mallin added.
Additionally, students with computing experience can apply at telecommunications companies and internet providers like Comcast, which are also considered “essential” services, and who are in need of more employees to ensure high speed internet is available to the burgeoning number of users working from home, utilizing distance learning software, and making Zoom calls, Buchwald wrote.
Finally, students with backgrounds in engineering can check out jobs in the manufacturing sector, as companies like GE Healthcare are adding employees to increase production of ventilators, CT scanners, ultrasound devices and other medical technology, Alcorn wrote.
Regardless of the level or industry students pursue, social media users suggest that employers look more kindly on the resumes of #classof2020 students now and in the years to come, perhaps even programming recruiting algorithms to actively seek 2020 graduates.
Social Media Post Encouraging Employers to Support 2020 Graduates (Image from Facebook)
Live on Less
Since many of the jobs currently available may pay less than college graduates expected, Boneparth suggests trying to live on less money, including limiting spending, taking on less debt (including deferring continuing education), and even moving in with one’s parents.
Boneparth also suggests online classes and continuing education or certificate programs, which may be cheaper than in person graduate degrees. Such courses and programs can help students continue to expand their resume and skill set during the pandemic, while also demonstrating a strong work ethic to potential employers.
Seek Financial Support
Students who support themselves can look into state and federal stimulus programs, as well as unemployment benefits if they have been laid off or furloughed as a result of COVID-19, Erica Gellerman wrote in a March 27 article.
Graduates with student loans can request extended deferment, and those with credit card debt can set up income-based repayment programs to preserve their credit as well as their bank account balance, Gellerman wrote.
Renters can also check local regulations as some states have paused rent payments and evictions, or speak to their landlords about possible payment options should the need arise.
Investing Advice
Those who are fortunate enough to have jobs during this time can protect themselves from long term issues and even benefit financially by planning ahead. Millennials and Generation Z workers should begin saving more for retirement as the U.S. government may need to raise retirement ages in order to offset the increased deficit resulting from COVID-19 stimulus programs, Charles Riley wrote in an April 3 CNN analysis.
While some young workers may prefer to keep their pay in cash rather than contribute to a retirement plan, Gellerman emphasizes that stocks are low now, which means those who can invest at this point stand to benefit significantly in the long term.
Investment Banker Benjamin Mallin recommends maxing out IRA and 401k contributions (Photograph Courtesy of Benjamin Mallin)
“Max out 401k and IRA [contributions] every year after rent, car, and insurance is paid,” agreed Mallin. He also recommended buying low fee index funds rather than actively managed ones. Since 401k and IRA plans are tax free, young investors can save themselves significant money in the long term, Mallin wrote.
In addition to planning long term savings, savvy investors can make money in the short term by investing in companies which make medical products including vaccines like Moderna, Inc. (MRNA) and ventilators like Medtronic plc (MDT), as well as those which make high demand products such as cleaning supplies like Reckitt Benckiser (RBGLY) and toilet paper like Proctor and Gamble Co. (PG).
Drugstores including CVS (CVS) have seen substantial stock growth since the pandemic began, as have at home fitness brands like Peloton (PTON). Investments in food delivery companies Uber (UBER), Bite Squad (owned by Waitr Holdings WTRH), and Blue Apron (APRN) whose stock jumped 500% since the crisis began, and those which allow people to meet remotely, including Microsoft (MSFT) which owns Skype and Teams, Zoom (ZM), and Teladoc (TDOC), are also wise choices at this time, Bill Peters wrote in a March 20 Investor’s Business Daily article.
Microsoft Stock Performance Over the Last Month (Image from Google Market Summary)
Mallin also recommended investing in streaming companies like Netflix (NFLX) and Amazon (AMZN), as well as companies people consistently need such as Google (GOOGL) and even alcohol producers and distributors such as Anheuser-Busch (BUD) and video game companies like Electronic Arts (EA), as more people are staying home.
Creative Pivoting/Side Hustles
While Mallin warned that “many companies that were on their way out will be pushed out,” by the pandemic, other businesses and entrepreneurs have gotten creative or utilized technology to pivot their service delivery and products in order to continue operating during this time.
For example, musicians, drag queens and other performing artists have begun live streaming concerts and events, and accepting “tips” via Venmo and PayPal, according to a March 21 Washington Post article.
Established dermatologists, aestheticians, and makeup artists have also begun using technology to offer online consultations, classes, and product recommendations, while fitness and dance instructors are offering online private sessions as well as larger classes.
Technology Pivoting Strategies – Images from Instagram
Workers previously employed in other industries may also begin “side hustles,” such as turning a hobby or personal passion into an online business, Boneparth wrote.
Some have turned to “social selling gigs” like Beautycounter, which saw its number of “new consultants double in the month of March,” Priya Rao wrote in an April 15 article.
With the multitude of options, students are encouraged not to despair, and to seek the support of friends, family, and professors.
Savannah Welch, Pepperdine Class of 2020, spoke about the emotional toll COVID-19 has had on students (Photograph Courtesy of Savannah Welch)
“This pandemic has taken an emotional and mental toll on the studies, plans and aspirations of students,” Welch added.
“While this is not the world many seniors anticipated they would be graduating into, we know our students are hard-working and resilient and will ultimately become stronger from learning how to tackle the unknown,” Hetherington added.
Hetherington’s final bit of advice, “Stay persistent! You will prevail but it takes an action-oriented mindset to get there.”
Pepperdine Career Center Online resources:
- VMock – Artificial intelligence resume review platform (available to current students only; log in using Pepperdine email)
- Roadtrip Nation – Extensive video library that helps you explore and matches your interests with possible careers (Membership code: PEPP19)
- Real World Ready – Online program that covers “real world” and adulting concepts
- PeppConnect – Directory of alumni mentors
Yasmin Kazeminy 