Securing a job in the United States has become increasingly difficult for recent MBA graduates in the current economic landscape. It seems even the ones from prestigious institutions like Harvard Business School (HBS) are not immune to this harsh reality of the current job climate.
According to a Wall Street Journal report, Harvard data shows that 23% of its MBA graduates from the spring 2024 batch were still looking for employment—even three months after graduation.
This marks a sharp rise from the 20% unemployment rate in 2023 and a stark contrast to the 10% unemployment rate in 2022.
Kristen Fitzpatrick, who oversees career development and alumni relations at HBS, told WSJ “We’re not immune to the difficulties of the job market."
“Going to Harvard is not going to be a differentiator. You have to have the skills," she added.
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However, Harvard is not alone, in fact, its struggles reflect a broader trend witnessed across top-tier business schools. From Wharton to Stanford, to New York University’s Stern School of Business, fresh graduates are literally battling to secure decent job positions, with most of these institutions logging the worst job placement figures in years.
What causes this uncertainty for business graduates?
The economic slowdown and uncertainty in the white-collar job market have created a competitive environment even for graduates of the most elite programs.
The employment market has been extremely harsh on the MBA graduates in the recent months. The University of Chicago’s Booth School and Northwestern University’s Kellogg School of Management have seen their numbers triple, with 13% of Kellogg’s job-seeking MBA graduates still unemployed three months post-graduation.
However, school officials are working hard to support graduates, with Liza Kirkpatrick, assistant dean for career services at Kellogg, noting that no one is “left on the field.”
Despite the challenges, the statistics still reflect the high earning potential for business school graduates. Median starting salaries for those who secure jobs remain strong, often exceeding $175,000, and schools like Columbia Business School have reported an increase in the number of graduates employed by fall 2024, compared to the previous year.
Lesser tech, consulting opportunities for business graduates
One of the primary factors contributing to the struggles of business. graduates, especially in the US, is the shrinking number of job opportunities in tech and consulting fields.
With Companies like Amazon, Microsoft, and Google reducing their workforce and limiting their recruitment efforts at business schools as well as consulting giants such as McKinsey slashing the number of M.B.A. hires, the battle is tough for this year's graduates.
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McKinsey, for example, hired just 33 M.B.A.s from Booth in 2024, down from 71 the year before, WSJ reported.
Jenny Zenner, a senior director at UVA Darden’s career centre, said that the decline in tech hiring is particularly noticeable. “Companies tell us, ‘We’re not coming to campus anymore,’” Zenner said.
Applied to 100 jobs but...: Fresh graduates left frustrated
For many freshly minted business graduates like 30-year-old Ronil Diyora, a graduate of the University of Virginia’s Darden School, the aggressive job search over the past few months has been frustrating, he tells WSJ.
Ronil says he applied for over 1,000 jobs while attending networking events in San Francisco.
Diyora, who switched careers from manufacturing to technology is not sure about doing an MBA anymore. “Ask me in two years,” he said when asked whether his MBA was worth the effort.
Struggling with mounting student loan
While finding a job is a task, graduates who somehow managed to secure a position are now facing delays and changes in their career plans, the publication reported.
Yvette Anguiano, who was slated to start a consulting position at EY-Parthenon in Seattle, had her start date pushed to June 2025.
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She said she was struggling with mounting student loans with her source of income and to make things better Anguiano is now looking for a temporary job.
“I was pretty devastated,” she said, reflecting on the frustration of waiting months after graduation to begin her career.
'Not going to change': Is this new reality of MBA graduates?
While the job market for M.B.A. graduates is clearly evolving, the super-selective hiring environment is not expected to improve anytime soon. Harvard’s Fitzpatrick told WSJ that the current trends are likely to persist, “I don’t think it’s going to change.”
AI to jobseeker's rescue
To help their students navigate these tough times, institutions like Harvard are turning to innovative solutions. Harvard has begun testing an AI tool that matches job seekers with potential roles, recommending courses to help bridge any skills gaps.