September has been a sad month for all the second year MBAs and fourth year business undergrads who specialize in finance.
This is supposed to be prime recruiting season. The soon-to-be grads at the top of their class are supposed to be wined and dined by the big banks and brokerages and told stories about how much deal flow there is.
This fall the wine is still there, but the deal flow certainly isn’t, and neither are the jobs.
As the markets crash and fees dry up, the investment banks are cutting back on hiring. If a firm typically hires six to eight analysts and four associates, they might now hire half that amount.
It’s sad, really, especially for the MBAs. They put all this money into getting a good degree because they are told they will be rewarded with a better job and more money. And then they graduate at a time when there are few new jobs.
What’s worse, studies have shown that if you graduate during a recession or rough times, it can take you many more years to get back to the job you could have had right out of school.
That makes sense. The investment banks and law firms and consulting firms devote much more energy to new grad recruiting than hiring junior staff out of their own industries.