MBAs from the top schools, including Ivy League institutions like Harvard, Stanford, and Wharton, are increasingly finding it difficult to secure jobs after graduation. According to a recent Wall Street Journal report, even the most prestigious degrees are no longer a ticket to high-profile careers.

The report by the WSJ shows that 23% of Harvard Business School's (HBS) spring 2024 MBA graduates were unemployed three months after graduation, an increase from 10% in 2022 and 20% in 2023. It also shows other high-tier schools had no easy time:

Wharton: Unemployment stands at 20%

Stanford: Jobs out of reach for 22%

Northwestern University's Kellogg School of Management: 13%

University of Chicago's Booth School: tripled its unemployment figures

These numbers only show the difficulties even the top business schools are experiencing in an increasingly competitive market for MBA jobs.

On one hand, the median starting salary is high—often over $175,000. On the other hand, it is in these two traditionally popular fields—tech and consulting—that the job opportunities for MBA graduates have dropped.

Economic slowdown: Large-scale layoffs in 2023 at companies like Google, Microsoft, Amazon, and consulting firms such as McKinsey and BCG have drastically reduced MBA hiring.

Post-pandemic changes: Organizations have taken to smaller, leaner teams and reduced the demand for generalist roles.

AI and automation: Companies prefer candidates with specialized technical skills over broad business knowledge.

Changing hiring trends: Some firms have opted out of on-campus recruitment and are emphasizing specific skills over prestigious degrees.

Kristen Fitzpatrick, who oversees career development at HBS, told WSJ, "Going to Harvard is not going to be a differentiator."

What can MBA programs and grads do to adapt?

The shifting dynamics indicate that 'traditional' MBA programs will no longer be able to deliver the market. Institutions should look for 'innovative' solutions so that the gap is bridged

Skill-based learning: The employers have shifted their focus from 'generalist' business knowledge to ‘relevant and specific' technical skills. Boot camps and special industry-specific certifications are gaining ground.

AI-powered tools: Harvard is piloting an AI-powered tool that connects students with jobs and determines the relevant courses needed to fill skills gaps.

Lowered expectations: Some graduates are finding work by lowering their career aspirations and seeking more unusual positions.

According to experts, the job market for MBA students is unlikely to change anytime soon. Economic instability combined with shifting workplace needs makes it a case of "adjust or be adjusted.".

MBA programs are being challenged to innovate and add value beyond a traditional curriculum. According to Elon Musk's philosophy, "skills matter, not college degrees."

The struggles of elite MBA graduates remind one that the job market has changed. No longer are employers impressed by degrees from elite schools. Instead, it depends on continuous upskilling and matching education with the needs of industry.