By CityTownInfo.com Staff
April 7, 2009
In another sign of the troubled economic times, recent graduates poised to begin new careers are discovering that their new employers are delaying job offers or rescinding them completely.
The Pittsburgh Business Times reports that at Carnegie Mellon University, students have had their internship and full-time position offers rescinded recently at companies such as Caterpillar Inc. and U.S. Steel Corp.
"Students are finding it's tough out there," said Bob Gilbert, a business professor at the University of Pittsburgh. "Firms are, not surprisingly, being a little bit reluctant to hire a lot of new people."
Chad Rychlewski was planning on spending several months off after graduating from Duquesne University before beginning work in an accounting firm. Then he was notified that his start date would be pushed from June to November. He has since taken a part-time job at his alma mater to help make ends meet, but he is concerned that the accounting job offer might be delayed again or withdrawn.
The unfortunate trend is being felt in many locations throughout the nation. The Chicago Tribune [from an article originally located at http://www.chicagotribune.com/business/yourmoney/sns-yourmoney-0329gettingstarted,0,3567109.story] reports that many law firms have delayed start dates for incoming associates by up to 12 months. And The Wall Street Journal offers advice to an individual in New York who, after turning down two job offers, accepted a position at a financial services firm which was later rescinded: Consult a lawyer, recommends the article, but generally it's perfectly legal for employers to withdraw offers.
International students in particular are finding these times difficult. The Washington Post reports that President Obama's stimulus package prevents U.S. companies receiving federal bailout money from hiring H-1B visa holders for two years if the companies have laid off American workers in the previous six months. As a result, many foreigners are having their job offers rescinded.
The H-1B program attracts about 85,000 skilled foreign workers annually, who presumably fill jobs that American workers cannot or will not do.
"Hiring H-1B visa holders has become as toxic as giving out corporate bonuses," noted Vivek Wadhwa, a Duke University professor and Harvard University research fellow, who was quoted in The Post.
Princeton University's student publication, The Daily Princetonian, notes that Andrei Brasoveanu, a Romanian student who accepted a job offer from Merrill Lynch, had his offer rescinded due to the Employ American Workers Act (EAWA).
"It's kind of going against..the whole idea of using the best people for the best jobs," noted Veda Sunassee, a student from Mauritius. "It's only Americans who will get those jobs, even those Americans who might not be as good as some internationals."