This story by Mark Evans 06/03/97
COLLEGE STATION -- Good news for graduates -- downsizing hasn't worked.
Texas A&M University management expert Michael Hitt said this year's graduates face a more promising job market as companies realize they cut their staffs too deeply in the early 1990s and are now trying to repair the damage.
Economic growth alone cannot account for the job growth, Hitt said. Rather, companies are starting to realize that downsizing hasn't been as effective as expected and has had unanticipated consequences. They are now attempting to rebuild their staffs.
"I really don't think it's the economy growing that's causing this, it's more that companies cut too much earlier," he said.
Companies lack the workforce they need to do the job, he said. They are turning to the Class of '97 to fill positions that had been cut during previous rounds of lay-offs.
The job growth is great for students, who suddenly find themselves in demand and often entertaining several job offers, but they still lack the experience of those people they replace.
"If you hire a lot of young people, you've got to help them learn and do a good job," he said. "If they really want to make best use of this resource, companies are going to have to significantly increase their training and development."
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CONTACT: Mark Evans at (409) 845-4382 or [email protected]. Michael Hitt may be reached at (409) 845-1724.
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