Black and Gold fear pink slips

Students are rushing to secure jobs as the plummeting stock market has helped the job-loss rate soar to its highest point in five years. The burden of tuition increases has made students wary of their financial futures.

Even some well-known corporations are struggling to keep their head above water as meager third and fourth-quarter projections are beginning to take a toll. Circuit City, a Richmond-based retailer, has seen its stock drop to its lowest point since 1985.

“I’m a little worried just because I’ve been there for a long time so, I’m one of the more highly-paid sales associates,” VCU junior and Circuit City employee Richard Mormando said. “If they decided to make cuts, I could potentially be let go.”

The immediate future of retail looks dim as the increase in the national average hourly wage has slowed, according to a report released by the Labor Department. With less pocket change, consumers are unlikely to reinvest in the struggling economy, thus forcing retailers to cut back on labor.

“At Ross, any time you do $1,000 in sales you generate $20 in payroll,” Vinnie Ingarra, manager of a Richmond-area Ross department store said. “You generally have to cut payroll when you don’t hit your sales forecast for that day.”

Reductions in available hours only perpetuate the cycle. Consequently, students occupying part-time jobs are absorbing their share of the financial crisis.

“I live paycheck to paycheck,” junior Tiffany Hinderer said. “My boss cut my hours to save money.”

The loss of income is hardly timely. VCU implemented a 9.4 percent increase in tuition for the 2008-2009 academic year. For students paying their own tuition, this compounds the monetary strain.

With the growing number of financial commitments young adults begin to generate, working for an unsteady employer can be a high-stakes gamble.

“I’m keeping my options open,” Mormando said. “I can’t afford to be suddenly left without a job.”