Landing a professional job in the US has become increasingly difficult, even for graduates of elite institutions.
The Wall Street Journal reported Harvard Business School (HBS) has acknowledged its MBA graduates can no longer rely on the school’s reputation alone to secure jobs.
New data from HBS reveals 23% of its job-seeking MBA graduates from last spring were still looking for employment three months after graduation.
This figure marks an increase from 20% in the previous year and more than double the 10% recorded in 2022.
Kristen Fitzpatrick, who oversees career development and alumni relations for HBS, said:
“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.”
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A Widespread Issue Across Top Business Schools
Harvard is not the only top-tier business school facing employment struggles.
Graduates from institutions like the University of Pennsylvania’s Wharton School, Stanford’s Graduate School of Business, and New York University’s Stern School of Business also experienced some of the worst job-placement rates in recent memory.
- The percentage of MBAs still job hunting after three months has more than doubled at many top business schools compared to 2022.
- At the University of Chicago’s Booth School and Northwestern University’s Kellogg School, the share of unemployed graduates more than tripled.
- Schools have been extending job-search support for months post-graduation, with Kellogg reporting a drop from 13% to 8% in unemployed graduates at the five-month mark.
Despite the challenges, graduates from these programs still tend to land high-paying jobs. Median base starting salaries for MBA graduates hover around $175,000, according to school data.
Shifting Hiring Trends and Visa Challenges
The job market has become particularly tough for international students requiring visa sponsorship. Speaking to the WSJ, Ronil Diyora, a recent MBA graduate from the University of Virginia’s Darden School of Business, has applied for at least 1,000 jobs since graduation in an attempt to switch careers from manufacturing to technology.
He continues to attend networking events in San Francisco but acknowledges the difficulty of making an industry shift.
“Ask me in two years.” Diyora said when asked whether his MBA was worth the investment.
At MIT’s Sloan School of Management, 22.8% of MBA graduates were still job hunting three months post-graduation.
Susan Brennan, who leads career development at Sloan, emphasized the importance of leveraging professors and alumni for job opportunities rather than relying solely on career centers.
Big Employers Scale Back MBA Hiring
Several major employers have significantly reduced MBA recruitment, adding to the challenges for recent graduates.
- Tech giants retreat: Amazon, Google, and Microsoft have cut back on hiring MBA graduates. Microsoft confirmed a slight reduction, while spokespeople from Google and Amazon stated that hiring fluctuates based on business needs.
- Consulting firms tighten recruitment: McKinsey reduced its MBA hires at Booth from 71 in 2023 to just 33 in 2024.
- Recruiters vanish from campuses: Companies that once had strong campus recruitment programs are now opting to hire fewer candidates closer to graduation or after.
At UVA Darden, career center director Jenny Zenner noted a drop in tech hiring across MBA programs. “Companies tell us, ‘We’re not coming to campus anymore,’” she said.
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Adapting to a New Reality
HBS acknowledges that the tougher job market isn’t just a temporary slump.
“I don’t think it’s going to change,” said Fitzpatrick.
To help students navigate this environment, Harvard is testing an AI tool that compares résumés with job listings and suggests online courses to bridge skill gaps.
The school has also introduced a four-day intensive job search course focused on networking and personal branding.
MBA Graduates Adjust Expectations
Many MBA graduates still looking for work are taking on contract jobs or watching their budgets closely. Even those with offers have faced unexpected setbacks.
- Deferred start dates: Yvette Anguiano, a Kellogg graduate, secured a consulting job at EY-Parthenon, but her start date was pushed back to June 2025. She received a $35,000 stipend to bridge the gap, far less than her expected salary.
- Extended job searches: Nikhil Sreekumar, a graduate of Duke University’s Fuqua School of Business, applied to 500 jobs before an alum referred him to Amazon. He starts work this month but recalls the stress of job hunting.
“You constantly ask yourself, ‘Am I good enough?’” Sreekumar said. “I was so relieved.”
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Navigating an Uncertain Future
With companies scaling back hiring and recruitment trends shifting, MBA graduates are facing new hurdles. Elite business schools are working to adapt, but job seekers must take a proactive approach, using alumni networks, refining their skills, and exploring alternative career paths.
The days of an MBA guaranteeing immediate job security may be over, but for those who adapt, opportunities still exist.
