As major corporations in the U.S. reduce hiring for management positions, the employment crisis for graduates of prestigious business schools (MBA) is intensifying. This contrasts sharply with just two years ago when MBA students were successfully securing jobs during the semester.
On the 15th (local time), The Wall Street Journal (WSJ) reported, "Top-level MBA graduates are taking months to find new jobs," and noted, "As it becomes more difficult to secure professional employment in the U.S., even Harvard Business School (HBS) stated that MBA graduates can no longer succeed in securing jobs merely by their school name."
In fact, among the graduates who sought employment after graduating from Harvard MBA last spring, about 23% had not found a job even three months after graduation. This figure represents an increase of about 3 percentage points compared to the previous year's 20%, and more than double the failure rate compared to 2022. The employment rate within three months is an indicator of hiring demand for high-paying positions and is used as an important statistic to attract MBA applicants, making it a point of concern for various schools.
Christine Fitzpatrick, who oversees career development and alumni relations at HBS, said, "We are also not free from the employment crisis," adding, "Simply having attended Harvard is no longer sufficient for differentiation; skills are now required."
Other prestigious MBA programs are facing similar situations. Employment rates among the top 10 MBA programs in the U.S., including the Wharton School at the University of Pennsylvania, Stanford Graduate School of Business, and NYU Stern School, have also recorded the lowest levels in recent years. Analysis of data from these MBA programs by WSJ revealed that the percentage of graduates still looking for jobs months after graduation last year had increased by more than double compared to 2022.
The primary reason MBA graduates are experiencing job difficulties is that large corporations have scaled back hiring. WSJ reported, citing graduates and MBA officials, that big tech companies like Amazon, Google, and Microsoft, as well as consulting firms, have also reduced MBA hiring. For instance, while management consulting firm McKinsey hired 71 from the University of Chicago Booth School last year, this year that number has been dramatically cut to 33.
Additionally, there are corporations that postpone the start dates for hired MBA graduates. Ivette Angiano, who completed a summer internship at EY-Parthenon while attending Kellogg School, received a job offer last September, but her start date was pushed to June this year. Angiano noted that while waiting for her job to start, her savings have run out, and she is looking for other work to cover living expenses.
WSJ explained, "It was common for corporations to hire MBA graduates during the school year until two years ago, but now the trend has shifted to hiring only a few just before or after graduation."
As the employment crisis intensifies, support at the school level is also becoming more active. The University of Chicago Booth School and Northwestern University Kellogg School, where the percentage of graduates job hunting for several months has tripled compared to 2022, are proactively supporting their graduates' employment. In Kellogg's case, among graduates, 13% were still without jobs three months after graduation, but with the school's employment support, that rate decreased to 8% after five months.