Given that the economy is flagging, this would seem an inauspicious time to be graduating from college and looking for full-time employment. Thomas Holstien, a finance major, is considering working as a senatorial staff assistant. Job prospects this year, however, have been better than career counselors and recent graduates had expected. Employers are still extending offers, just not as many as last year reports the New York Times.

Economists said the class of 2008 has been helped by employers concerned by the impending exodus of baby boomers from the work force. But they warn that the job market is going to get tougher as the full extent of the nation’s financial problems emerges, and they predict a growing inequality in access to employment between elite and lower-achieving students.

As a result of the tighter job market, applications to graduate schools and service-oriented programs abroad are expected to increase in the fall.

“Things are not good but they aren’t really bad yet either,” said James Tarbox, director of career services at San Diego State University. Of the 23 campuses in the California State University system, half have had a decline in campus recruiting last semester.

Read it here: Job Climate for the Class of 2008 Is a Bit Warmer Than Expected