The once-guaranteed prestige of earning an MBA from elite institutions like Harvard, Stanford, or Wharton is no longer a surefire ticket to high-paying jobs.
With an increasingly volatile job market, even the most coveted degrees are facing challenges.
Reports suggest that many recent graduates from these top-tier programs are struggling to secure employment, painting a stark picture of the current economic landscape.
Declining job placement rates among top MBAs
According to a Wall Street Journal report, 23 per cent of Harvard Business School (HBS) MBA graduates from 2024 were still job hunting three months after graduation. This is a sharp increase from 20 per cent in 2023 and 10 per cent in 2022.
Harvard’s Kristen Fitzpatrick, who oversees career development, 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.”
This trend extends beyond Harvard, with other elite institutions like Stanford, Wharton, and NYU Stern also witnessing some of the weakest job placement figures in years.
For instance, Northwestern University’s Kellogg School of Management reported that 13 per cent of its 2024 MBA graduates were unemployed three months post-graduation, a significant increase from previous years.
What’s behind the job market slowdown
The tightening job market can be attributed to several factors. Post-pandemic, companies have aggressively pursued efficiency, rethinking organisational structures, and highlighting leaner teams. This has created a preference for candidates with specialised technical skills over generalist MBA graduates.
Additionally, sectors traditionally dominated by MBAs, such as tech and consulting, have significantly reduced hiring. Companies like Amazon, Microsoft, and Google have scaled back recruitment, while consulting giants such as McKinsey have slashed their MBA hires.
McKinsey, for example, hired only 33 MBAs from the University of Chicago’s Booth School in 2024, down from 71 the year prior. “Companies tell us, ‘We’re not coming to campus anymore,’” Jenny Zenner, a senior director at UVA Darden’s career center, told WSJ.
The rise of artificial intelligence and automation has further complicated the landscape, leading to layoffs and job eliminations across industries. Employers are increasingly valuing alternative education pathways, such as coding bootcamps and specialised certifications, which often align better with modern workforce demands.
The struggles of graduates
The challenging job market has left many MBA graduates frustrated. For instance, Ronil Diyora, a University of Virginia Darden School graduate, shared that he applied for over 1,000 jobs while attending networking events in San Francisco. “Ask me in two years,” he told WSJ when questioned about whether his MBA was worth the investment.
Others, like Yvette Anguiano, faced delays in starting their careers. Anguiano, who secured a consulting role at EY-Parthenon, had her start date pushed to mid-2025. “I was pretty devastated,” she told WSJ, as she struggled to manage mounting student loans while seeking temporary work.
How institutions are responding
To address these challenges, some business schools are introducing innovative solutions. Harvard, for example, is testing an artificial intelligence (AI) tool that matches job seekers with potential roles and recommends courses to bridge skill gaps. This AI-driven approach aims to help students adapt to the evolving demands of the job market.
Despite the hurdles, MBA graduates still command high earning potential. Median starting salaries often exceed $175,000, and some schools, like Columbia Business School, have reported improved employment rates by fall 2024 compared to previous years.
Graduates are increasingly lowering their expectations and exploring non-traditional career paths. As one unnamed HBS student told Forbes, “Most of my friends who tempered their expectations were able to land great positions. HBS students tend to come from wealthier families and backgrounds that can stomach a few months of unemployment.”
For aspiring leaders, the message is clear: success in today’s job market requires a blend of technical skills, emotional intelligence, and resilience. As companies prioritise lean operations and specialised expertise, the traditional MBA journey must evolve to align with these new realities.