This article in the New York Times suggests that there was a ‘jobs bubble’ that mirrored the ‘financial bubble’ at least in the US. The Wall Street firms were soaking up the best and brightest graduates and now with the GFC those graduates are going off to do (what at least to me) sound like far more interesting things with their lives.
I don’t know if we had the same phenomenon here in Australia, at least for business graduates. While I was at the ACCC, I was always really pleased by the high quality graduates that we could recruit, so maybe we didn’t suffer from a Wall Street effect on the job market.
Alternatively our ‘jobs bubble’ may simply be elsewhere. Take the major law firms for instance ….