The job market for MBA graduates has reached a critical juncture, sparking conversations across social media and beyond. A post by CA Nitin Kaushik on X, using the handle @Finance_Bareek, captured the sentiment perfectly: “𝐓𝐡𝐞 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧 𝐃𝐢𝐥𝐞𝐦𝐦𝐚: MBA fees ₹25,00,000, ROI: Uncertain. Research before enrolling.”
Kaushik’s post resonates with a growing number of MBA aspirants and professionals grappling with the changing realities of the job market. The issue isn’t confined to India; even graduates from elite institutions like Harvard, Stanford, and Wharton are feeling the squeeze.
The Wall Street Journal (WSJ) recently reported that 23% of Harvard Business School’s 2024 MBA graduates were jobless three months after graduation. This number has more than doubled since 2022 when it stood at 10%. Other top-tier schools like Stanford and Wharton have seen similar dips, with unemployment rates hovering around 20%.
The issue isn’t just limited to the US. According to the International Labor Organisation’s Global Employment Trends for Youth 2024, 13% of the global youth labour force was unemployed in 2023—a figure representing nearly 65 million people.
Why are MBAs struggling?
Despite boasting median starting salaries exceeding $175,000, MBA graduates are finding it harder to land jobs due to shifting hiring practices. Consulting firms like McKinsey and BCG, alongside tech giants such as Google and Amazon, have drastically reduced MBA hires amid widespread layoffs and economic slowdowns.
Post-pandemic structural changes have also left companies preferring smaller, highly skilled teams. The rise of AI and automation further compounds the issue, making generalist MBA degrees less appealing compared to targeted certifications and boot camps.
Kristen Fitzpatrick, who oversees career development at Harvard Business School, put it bluntly: “Going to Harvard is not going to be a differentiator.” Instead, companies are now focusing on technical and specialized skills.
How MBA Education Needs to Evolve
To address these challenges, institutions are pivoting toward innovative solutions. Harvard is testing an AI tool to match graduates with jobs and suggest courses to bridge skill gaps. Some graduates have found success by lowering their expectations and opting for less conventional roles, according to Forbes.
One thing is clear—degrees alone won’t cut it anymore. The future belongs to professionals who continuously upskill to meet the ever-changing demands of the workforce.