College students planning to graduate in 2004 will find a more welcoming job market than the past four years, according to a recent study conducted by Michigan State University.

In a survey of 450 large and small companies, the report says the general improvement in the economy is spurring companies to begin hiring more than in past years. Most of this job growth will likely occur in business, retail and hospitality, while other areas such as manufacturing, federal and state jobs will not see the same expansion.

“We’re in an economy change, from a manufacturing economy to a ‘knowledge economy,'” Director of Michigan’s Collegiate Employment Research Institute Philip Gardner said.

In the winter of 2001, the labor market collapsed as a consequence of such events as Sept. 11, 2001 and accounting scandals with Enron and other companies. This resulted in a loss of available jobs, especially in the telecommunications sector.

Employment in the technology field will still be tighter than others, the report found, and graduates with Masters and Doctoral degrees will face a bleak future. According to the report, companies in this field expect to hire fewer employees than the previous year.

Gardner said he believes that while this spring’s graduates will find most employment in larger companies, smaller companies seeking college graduates could look to those who have been out of college for a year or two.

Gardner and others attribute the economic upturn to a gradual recovery from the 2001 recession.

“There was a huge burst of investment in computers and technology pre-millennium, and now those things are getting old,” UW Professor of Economics Don Nichols said. “The economy is following the natural cycle of upgrading technology.”

In the next five to ten years, the economy will continue to slowly strengthen. According to Gardner, the future economy depends on two things: more job availability outside of manufacturing, and the career actions of the baby boomer generation.

“When the baby boomers begin to retire, that will open up jobs,” Gardner said.

However, it is unclear as to when exactly this generation will retire, as shaky health care coverage and retirement plans are making it harder for baby boomers to stop working.

Nichols said the recovery process will be slow and gradual, dependent on growth in production.

“We predict a 4 percent growth in production, which means about 7 percent more jobs,” Nichols said, adding that creation of new jobs in the technology field would be especially conducive to a job market spurt.