Some of the world’s prestigious educational institutions like Harvard University, and other top B schools are observing a declining trend of employment among MBA graduates. According to a recent report by The Wall Street Journal, the famous Harvard Business School (HBS) has 23 per cent of MBA graduates unemployed three months after graduation.
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.
Focus on efficiency & restructuring
Many experts suggest that the trend is because of economic shifts and changes in the hiring strategies of the 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. The report 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.
AI & Automation
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 required 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.
As companies continue to adapt to new economic conditions, MBA programmes must also reevaluate how they prepare students for a constantly evolving workforce, recommended the report.
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