
It is observed that Harvard Business School has 23 per cent of MBA (Master of Business Administration) graduates unemployed three months after graduation. This was revealed by a recent report published by The Wall Street Journal, stated by The Indian Express.
Additionally, the decline is evident not only in Harvard, but institutions like Stanford, Wharton, and other top business schools are also witnessing a similar trend among MBA graduates. This rise in unemployment has forced many to question the viability of an MBA degree for a high-paying job role.
According to experts, the trend is because of economic shifts and changes in the hiring strategies of companies. The shift in the job market, according to The Wall Street Journal report, is because of increasing focus on efficiency and restructuring of teams. Additionally, it also asserted that employers are looking for more specialised technical skills, such as coding or data analytics, rather than hiring generalist MBAs.
The emphasis on restructuring and efficiency emanates from scaled-back hiring instances from Amazon, Google, and Microsoft, who have made cuts to hiring opportunities. Not only companies but consulting firms like McKinsey and BCG have also reduced the number of MBA hires for 2024, highlighted the report.
Moreover, the rise of artificial intelligence and automation has introduced additional complexity to the job market, added the report. As companies embrace new technologies, roles that traditionally require an MBA are being redefined or eliminated.
According to The Wall Street Journal, employers are increasingly opting for alternative educational paths, such as coding boot camps or certifications, which provide more targeted training for the evolving workforce.
The changing job market has led to consequences for elite MBA graduates, who were once almost guaranteed high-paying positions. According to the report, many graduates are forced to adjust their expectations as they question whether their costly degrees will yield the returns they had anticipated.