While unemployment rates in State College are at an all-time low, students might find getting their "dream job" or working their way up the corporate ladder more challenging in other places around the nation.

In a statement released last Friday, the Department of Labor reported that the unemployment rate remained steady at 4 percent in December. The raise may be in part because of increased employment in government agencies, but analysts warn that an economic slowdown could bring the unemployment rates up.

But State College's economy and labor market has remained tight, with an even lower unemployment rate than the national average.

In November the borough reported a 1-percent unemployment rate and the seasonally adjusted rate for the State College Metropolitan Statistical Area (MSA) was at 2.4 percent. State College had the lowest rate of unemployment among Pennsylvania's 14 MSAs for the month of November, according to the Center for Workforce Information and Analysis.

Businesses in the area report no problems hiring new employees and retaining old ones.

"We constantly have people asking for applications," said Bob Steinbach, owner of Connections, 130 S. Allen St. "Its a big university with a large percentage of students looking for part-time work to supplement expenses."

Many other retailers in the area find their locations also beneficial for hiring and are not feeling any of the recession crunch President-elect Bush and some analysts have predicted in recent weeks.

"We're fortunate to have opened up in this location," said Margaret White, manager at Target, 315 Lowes Blvd. "We have a good core of workers from locals, and it's helpful to be near Penn State and its students."

Although the national unemployment rate remained steady, analysts warn that the slowing economy could deteriorate the job market in the months ahead.

"While the unemployment rate remained low by historical standards in December, the pace of job growth in the private sector continued to slow," said Katharine G. Abraham, commissioner of the Bureau of Labor Statistics.

The decreased rate in job creation has some students worried, especially those graduating this May.

"I'm already stressed out finding a job for after I graduate," said John Kim (senior-management science and information systems). "It's hard enough getting a company to hire you, but the less companies are hiring the harder it will be."

Jack Rayman, director of Penn State's Career Services, agrees that students will have to work harder to earn a spot in the increasingly competitive job market.

"While we haven't felt it yet, we can definitely anticipate it being more difficult to secure jobs in the coming months," Rayman said.

He said he has seen students become complacent about the job market and said they will need to work harder and begin actively searching out employers instead of waiting for employers to come to them.

"With the softening of the economy, we can expect fewer companies recruiting on campus, and those that do come will be very critical," Rayman said.

He also said graduate and professional school enrollments might increase this year because of expectations of elevated hiring standards.

"I'm considering applying to graduate school since companies are raising their standards and being more selective about hiring," said Tim Rementer (senior-kinesiology).