New Delhi: Even if one is getting their MBA from a school such as Harvard Business School (HBS), the job market is far more competitive today than before. According to papers, students in Class of 2024 have turned out jobless, a sharp deterioration for the graduates in business.
According to reports 23% of MBA graduates who had pursued jobs after completing the program were still unemployed after three months from completion of the program. That is up from 20% in this past year and only 10% two years ago. It is not just Harvard that is facing such problems other comparable institutions such as Stanford, Wharton and NYU Stern are also experiencing similar problems. For example Chicago Booth and Northwestern Kellogg have seen their unemployment rates more than triple since 2022.
It is even more challenging for international students who require sponsors for visas which reduce their employment opportunities than the American students.. For instance, Ronil Diyora, the University of Virginia Darden School of Business graduate, was chasing a manufacturing to tech job switching and was applying for more than 1,000 jobs.
What’s Changing in Hiring?
The method that is used to recruit MBA has changed. Forbes published an article that specifically highlights that giants like Amazon and Google, Ernst and Young, and Deloitte are either reducing their intake or have even stopped recruiting MBA grads altogether. In addition, flexibility in the selection process is the deficit; many organizations no longer recruit on campus but at the final stage of the students’ studying.
To assist its grads deal with it, HBS is experimenting. They’re currently piloting an AI-driven talent marketplace platform where alumni can search for jobs in organizations and are provided with suggestions of training that will prepare them for those positions. They have also recently adopted a four day course in the aspects of networking and presenting.
Salary Trends
Although the market condition remains competitive the HBS grads’ salaries have slightly been rising. The SPE Class of 2024 earned a median total compensation of $221 800 while it was $220100 in the SPE Class of 2023. But there are fewer jobs available, only 85% of the graduating class had job offers three months post graduation, the worst it has been in a while.
The consulting industry has been affected badly; this was one of the most favored industries for MBA passed out. Consulting was down overall only 18 percent of the HBS grads taking jobs this year went into consulting, down from 25 percent a year ago.
Peculiarly, 30 percent of the Harvard MBA graduates of the class of 2024 do not have jobs, in a traditional sense of the word. Of the respondents, 14 percent stated that they are beginning their own companies. In this case this trend proves that more grads are opting for entrepreneurship than suffering a bad employment market.
A New Reality for MBA Grads
Indeed the job market especially for MBA holders right from the choice schools has shifted a hook. Despite that, the average salaries remain constant, the unemployment rises, and the tendencies in employing are changing. This is true for HBS’ school and many others, but its graduates are now entering the business world on their own terms, as entrepreneurs. This shift further indicates that even the best institutions are also experiencing the squeeze in the evolving economy and market for jobs.
