The American economy is clearly in a severe recession right now. The data that keeps coming in is getting worse and worse by the month and there is no sign of a light at the end of the tunnel. Housing values continue to drop at unprecedented levels, consumer confidence is hitting all time lows, and most importantly the job market is falling apart quite quickly. The unemployment rate is jumping and the number of those filing for jobless benefits is reaching record highs.

What does all this mean for college graduates? The recession has a huge effect on recent college graduates or those are about to graduate in the coming year. The fact is many of those companies that have been coming to college campuses in recent years to find new young talent can't be hiring like they have in the past for obvious reasons. Take the finance sector as an example, where companies like Bear Stearns, Lehman Brothers, and Goldman Sachs were major employers of recent college graduates from top schools. Bear Stearns and Lehman are no longer around, and Goldman Sachs has been weakened badly by the credit crunch, so those students looking for a career in investment banking have extremely limited options right now. The same is true in many other areas, although most aren't quite as bad off as the banking sector. The true fact of the matter is, the abundance of entry level jobs that there once was a few years ago is no longer there.

How can a college graduate compensate for these recessionary changes? The best thing a college graduate can do is network with those high up in a company you may be interested in. It is definitely still the case that it pays to know someone. Additionally, if you have the chance for an internship at a company you would be very interested in working for, you should certainly take the position. In the past internships were considered below some graduates since some of them don't pay anything, but with much fewer choices now, an internship without pay is still a great way to get your foot in the door of a top notch company.

It is important to remember that even in a bad economy, your grades at college do matter. Don't start slacking and think it doesn't matter how well you do, because that will never be the case. Hard work and proactive job seekers will still be able to find a position doing something they love, it just might take some extra patience in these tough times.