Data in this report were collected from physics PhDs in the classes of 2000 and 2001, a time when the U.S. economy reached a peak and then entered a downturn. Data were collected from 72% of the class of 2001, a year in which there were 1,214 physics PhDs conferred. The unemployment rate for these classes remained low, at 3%. The proportion of new PhDs securing a postdoctorate fellowship has risen slightly in the past few years, so that they outnumber those accepting permanent positions, 49% to 47%. Starting salaries for the classes of 2000 and 2001 were very strong. University-based postdocs had a starting salary of $38,000, up 9% form the class of 1998, and the median starting salary for individuals accepting potentially permanent industrial employment was $75,000. (SLD)