The members of Penn's class of 2003 who plan to enter the job market after graduation now face a wartime economy. While some express concern, at this point, experts say the pending economic effects of the war in Iraq are still unclear.
"In general, economists are not predicting economic hardship for job market entrants as a result of the war; however, they are not predicting that the war will make things better either," said Economics Professor John Knowles.
Wharton senior Blakeley McShane said he was not overly worried about entering the job market next year, despite the current world situation.
"I have an offer outstanding, and I feel that I probably won't be too much affected," McShane said.
"The economy could improve with war going on. If you look historically, war helps the economy," he added.
While in the past, many wars, such as World War II, have been associated with periods of economic prosperity, Knowles said economists "do not, in general, believe this will be the result of the war in Iraq."
"Since the current government is cutting tax revenue, then it is natural to expect that interest rates will soon rise in response to the government paying for the war," Knowles said.
"Rising interest rates are usually a bad sign for people entering the job market because it means that it is more costly for firms to make investments in new ventures, so they are reluctant to hire new workers," he added.
College senior Diana Elkind expressed concern about the effect a suffering economy could have on her plans for employment next year.
"I actually have a job lined up already at a start-up law firm, but if the war does continue and has a more profound effect on the economy, the law firm may not be established at all," Elkind said.
"Nothing is set in stone, considering how vulnerable the economy is right now, and incoming candidates would be the first to go, not the people who have been working for years," she added.
"I don't think it will affect me personally because of the field I am going into, which is bio research," College senior Katherine Peer said. "I would be concerned in another field."
Career Services officials were unable to make any concrete predictions about the war's possible effects on the job market, but it is an issue they have considered.
"My gut feeling is that organizations will continue to take a wait-and-see attitude, and we won't see an increase in hiring anytime soon, although I think the general poor state of the economy probably has as much to do with this as the war," said Barbara Hewitt, Career Services associate director for the Wharton School.
"Hopefully, once the situation with Iraq is resolved, the economy will be able to move forward, but I certainly don't think that this will happen immediately and benefit seniors before graduation."
