MBA grads are struggling to find work,
Even Ivy League MBA Graduates Struggle to Find Jobs
India has long faced challenges in skill development, but the issue is now global. According to a recent Wall Street Journal (WSJ) report, even fresh MBA graduates from top US business schools—including Harvard, Stanford, and Wharton—are struggling to find jobs.
The report highlights that 23% of Harvard Business School’s (HBS) 2024 MBA graduates remained unemployed three months after graduation. This number was just 10% in 2022 and 20% in 2023, indicating a growing trend.
The situation mirrors the struggles of IIT graduates in India, reflecting a broader crisis in white-collar job placements.
Global MBA Employment Crisis
The International Labour Organization’s ‘Global Employment Trends for Youth 2024’ states that 13% of the young global workforce was unemployed in 2023, amounting to 64.9 million people.
A 2020 World Economic Forum report found that only one in four management graduates was employable—a statistic that remains largely unchanged today.
Kristen Fitzpatrick, who oversees career development at HBS, admitted that even elite institutions are not immune to today’s job market challenges. She also stressed that an Ivy League degree alone no longer guarantees a job, stating:
"Going to Harvard is not going to be a differentiator."
Other Top Business Schools Face the Same Struggles
Harvard isn't alone. Other prestigious MBA programs are also seeing a decline in post-graduation placements:
- Wharton – 20% of graduates still jobless after three months.
- Stanford – 22% unemployment rate among MBA grads.
- NYU’s Stern School of Business – Facing similar placement struggles.
- University of Chicago (Booth) & Northwestern University (Kellogg) – Unemployment among MBA graduates has tripled in recent years.
- Kellogg – 13% of graduates still searching for jobs three months post-graduation.
Why Are MBAs Struggling to Find Jobs?
Despite unemployment concerns, MBA graduates from elite institutions still command high salaries—with median starting salaries exceeding $175,000. But if the salaries remain high, why are hiring rates dropping?
1. Decline in Job Opportunities in Tech & Consulting
- 2023 saw widespread layoffs, particularly in tech and consulting—two industries that have historically been major MBA recruiters.
- Google, Microsoft, Amazon, McKinsey, and BCG have significantly cut back on MBA hiring.
2. Companies Prioritizing Efficiency & Specialization
- The post-pandemic workplace has changed—companies now prefer smaller, more efficient teams.
- The rise of AI and automation has further reduced the demand for traditional business roles.
3. Hiring Strategies Are Changing
- Many companies are no longer recruiting on-campus, according to WSJ.
- Employers are shifting focus from generalist MBAs to candidates with specialized technical skills.
- Elon Musk’s stance—that skills matter more than degrees—seems to be influencing hiring trends.
The Future of MBA Education
To stay relevant, MBA programs must evolve. Traditional generalist programs may no longer suffice—companies are now looking for:
- Specialized technical skills in areas like data analytics, AI, and digital strategy.
- Boot camps & targeted certifications that provide job-specific expertise.
WSJ also reports that even those who land jobs often face delays in start dates, which adds financial pressure due to mounting student loan debt.
Harvard’s Response: AI-Powered Job Matching
Harvard is now testing an AI tool that:
- Matches MBA graduates with job opportunities.
- Recommends additional courses to bridge skill gaps.
Additionally, a Forbes report suggests that MBA graduates who lowered their expectations were able to secure jobs faster.
Key Takeaway: Skills Matter More Than Degrees
While top business schools are struggling to place graduates, one thing is clear—the job market is evolving, and MBA education must keep pace.
Upskilling and adaptability are now more important than a prestigious degree alone.