Record unemployment hits elite MBA grads from top schools
WASHINGTON, D.C., UNITED STATES — Recent reports from prestigious institutions like Harvard Business School (HBS) and Stanford reveal an increase in unemployment rates among new Master of Business Administration (MBA) graduates.
The Wall Street Journal highlights that 23% of HBS’s 2024 MBA cohort were still jobless three months post-graduation, a sharp rise from 10% in 2022.
Kristen Fitzpatrick, HBS’s head of career development, stresses the evolving job market’s demands: “Going to Harvard is not going to be a differentiator. You have to have the skills.” This shift signifies a deeper issue where even high-caliber institutions are no longer a guaranteed ticket to career success.
Technological adaptations and persistent challenges
To combat these employment challenges, schools are increasingly turning to AI technologies. These tools are designed to match graduates with suitable job opportunities and suggest courses to fill any skill gaps, indicating a strategic pivot in how academic institutions and graduates approach the tightening job market.
However, even with technological aid, the struggle continues. For instance, Ronil Diyora, a Darden alumnus, applied to over 1,000 positions without success, underlining the disheartening realities many face.
“I was pretty devastated,” shared Yvette Anguiano, who experienced delays in her start date at EY-Parthenon amidst managing her student loans.
Industries cutting back on hiring
The tech and consulting sectors, which have traditionally been key employers for MBA graduates, have notably pulled back on recruitment. Companies like Amazon, Google, and McKinsey have reduced their intake.
McKinsey’s recruitment at Chicago Booth dropped by more than half, hiring only 33 MBAs in 2024 compared to 71 in 2023. At four leading business schools – Chicago Booth, Columbia, MIT Sloan, and NYU Stern – the number of graduates joining top consulting firms declined by 25% compared to pre-pandemic levels.
Despite the grim employment statistics, those who do land jobs continue to report strong starting salaries, sometimes exceeding $175,000. Yet, as Fitzpatrick warned, “I don’t think it’s going to change,” suggesting that these challenges may well persist into the future.
Gen-Z in China opt for blue-collar jobs
Sang Weibo, a 23-year-old graduate from Nanjing University of Science and Technology, began his career as a civil engineer. After briefly working in construction project management, Weibo made the bold decision to join a house cleaning company in Yangzhou. According to CNA Insider, his current monthly earnings of 8,000 renminbi ($1,100) represent a 60% increase from his previous white-collar salary of 5,000 renminbi ($695).
Reflecting on the value of an MBA
This concerning trend raises a critical question about the real value of an MBA in today’s economic environment. As industries evolve and new skill sets emerge as priorities, the traditional allure of an MBA might be diminishing, prompting both graduates and academic institutions to reassess and adapt to the new professional world they are entering.
