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MBA Graduates from Top Schools Struggle with Job Placements Amid Changing Job Market


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India has long faced challenges in skill development, but it’s not just the country facing this issue. A recent report from the Wall Street Journal highlights that even MBA graduates from prestigious universities like Harvard, Stanford, and Wharton are struggling to secure jobs in the US.

The report notes that 23% of the MBA graduates from Harvard Business School’s (HBS) spring 2024 batch had not found jobs three months after graduation. In comparison, 10% faced the same issue in 2022, and the percentage increased to 20% in 2023. This reflects a broader trend of employment struggles, similar to what India’s IIT graduates have been facing recently.

According to the International Labour Organisation’s Global Employment Trends for Youth 2024, 13% of young people were unemployed in 2023, which translates to 64.9 million people globally. A 2020 report from the World Economic Forum revealed that only one in four management professionals were employable, and that figure has not improved much.

Kristen Fitzpatrick, the career development head at HBS, acknowledged that even the most elite schools are not immune to the job market’s difficulties. She noted that having a degree from a prestigious institution like Harvard no longer guarantees a competitive edge. “Aspiring employees need the right skills, not just a degree,” she emphasized.

Other top business schools, such as Wharton (20%), Stanford (22%), and New York University’s Stern School of Business, are facing similar issues with job placement rates among fresh graduates. Graduates from even the best schools are feeling the impact of the economic slowdown and changing dynamics in the white-collar job sector.

The situation extends beyond Harvard, as MBA graduates from other renowned US universities are also struggling. For instance, 13% of MBA students at Northwestern University’s Kellogg School of Management were still unemployed three months after graduation, while the University of Chicago’s Booth School has seen a threefold increase in the number of unemployed graduates.

Despite the rising unemployment rates, these MBA graduates are still positioned to earn high starting salaries, often exceeding $175,000. So, why aren’t they getting hired? The Wall Street Journal points to fewer job openings in tech and consulting sectors. Major companies like Google, Microsoft, Amazon, McKinsey, and BCG have significantly reduced their MBA hiring in the wake of large-scale job cuts in 2023.

Post-pandemic workplace changes have also contributed to the issue. Many companies are now prioritizing smaller, more efficient teams and are increasingly relying on AI and automation. In response, some companies have stopped hiring directly from campuses, shifting towards new recruitment strategies.

This shift reflects a broader trend: companies now prefer MBA graduates with specialized technical skills rather than those with general business knowledge. Traditional MBA programs are no longer sufficient in meeting these evolving job market needs. To stay competitive, business schools will need to update their curricula to focus on more targeted, technical skills.

Boot camps and certifications aimed at specific skills are gaining popularity among top companies. Additionally, graduates who have lowered their expectations seem to have better luck landing jobs, according to a Forbes report.

Even for those who do secure jobs, delays and changes in career plans are becoming more common. Many new hires face postponed starting dates due to the growing burden of student loan debts.

Harvard’s Kristen Fitzpatrick predicts that the job market situation will not improve soon. In response, universities are exploring innovative solutions, including an AI tool being tested at Harvard that matches jobseekers with relevant roles and recommends additional courses to bridge skill gaps.

One thing is clear: skills now take precedence over degrees. MBA education must rapidly evolve, and job-seekers must continuously upskill to meet the changing demands of the job market.

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