New college graduates to find a strong job market

— -- New college graduates this spring can count on a welcoming job market as employers seek to replace a baby boom generation reaching retirement age.

Employers are planning to hire 16% more 2008 college graduates than they did a year ago, according to a projections from a survey by the National Association of Colleges and Employers, a Bethlehem, Pa.-based group that tracks the market for new graduates.

The strong market for graduates stands in contrast with the weakness in the labor market generally. The government reported Friday that U.S. employers cut 63,000 jobs in February, the second-consecutive month of job losses.

Nearly 54% of employers said they will use signing bonuses to sweeten the deal for potential hires, according to the NACE, up from 47% in 2007. In particularly high demand: majors in marketing, engineering and computer science.

By recruiting college graduates, employers are dealing with the long-term drain from retirements of their oldest workers. The number of workers age 55-plus is expected to grow by 49% in the 10-year period ending in 2012.

Employers are raising starting salaries and other financial incentives to land new graduates, according to NACE and several employers. The average starting salary is 4% greater than in winter 2007.

Chemical engineering graduates will see the biggest increase, with their average starting offer rising 6.2% to $63,749. Liberal arts graduates, as a group, started the year on a high note with a 9% increase, bringing their average starting salary offer to $33,258.

Companies such as financial firm Deloitte & Touche are offering signing bonuses. "The downturn is making (some employers) cautious, but we're not putting the brakes on," says Deloitte & Touche's Diane Borhani.

Many new graduates will begin with internships that turn into full-time employment. Aflac, a Columbus, Ga.-based insurance provider, has a department whose sole focus is hiring and placing interns in the right jobs. They're offered a permanent position upon completion.