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Even Harvard MBAs Are Struggling To Land Jobs (msn.com) 89

Nearly a quarter of Harvard Business School's 2024 M.B.A. graduates remained jobless three months after graduation, highlighting deepening employment challenges at elite U.S. business schools. The unemployment rate for Harvard M.B.A.s rose to 23% from 20% a year earlier, more than double the 10% rate in 2022.

Major employers including McKinsey, Amazon, Google, and Microsoft have scaled back M.B.A. recruitment, with McKinsey cutting its hires at University of Chicago's Booth School to 33 from 71. "We're not immune to the difficulties of the job market," said Kristen Fitzpatrick, who oversees career development at Harvard Business School. "Going to Harvard is not going to be a differentiator. You have to have the skills." Columbia Business School was the only top program to improve its placement rate in 2024. Median starting salaries for employed M.B.A.s remain around $175,000.

Even Harvard MBAs Are Struggling To Land Jobs

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  • Oh no (Score:5, Funny)

    by Scutter ( 18425 ) on Wednesday January 15, 2025 @10:23AM (#65090681) Journal

    Won't someone please think of the poor Harvard MBAs during this challenging time in their lives?

    • by kenh ( 9056 )

      You've likely already paid off their student loans, now we need to set them up with Basic Universal Income so they can remain an active, vital part of the US economy...

    • They should learn to mine coal.
    • Isn't this missing important context? Is it just Harvard MBAs, or is it all MBAs?

      Maybe this isn't so much an MBA problem, as a Harvard problem. When you flush your credibility over the course of decades, it seems that eventually it will catch up to you.

      • Yeah right - if Harvard MBAs are at 25% then other MBA's are probably 50%. Say whatever you will about the modern university system (and there's plenty to say) but that's as much of a gold plated blue chip degree as MIT engineering or other top "brands". If they're having trouble, you can absolutely guarantee the state school underwater basket weavers are in absolute shambles.

  • by Anonymous Coward
    Obligatory: "And nothing of value was lost..."
  • This rise in MBA unemployment is very easy to explain, actually. Businesses around the world have begun to realise that they don't need that many managers after all. They need people who can do the walk instead just doing the talk. Who would have thought?

    • by MightyMartian ( 840721 ) on Wednesday January 15, 2025 @11:26AM (#65090861) Journal

      Translation: Experienced MBAs have determined fresh newly graduated MBAs are not needed.

      This isn't so much the leopards eating peoples' faces, as much as the leopards eating their own young.

      • This isn't so much the leopards eating peoples' faces, as much as the leopards eating their own young.

        Wont someone think of these poor morbidly obese leopards?

      • Translation: Experienced MBAs have determined fresh newly graduated MBAs are not needed.
        More likely "Experienced MBAs have determined inexperienced MBAs are not needed."

      • by saider ( 177166 )

        MBAs were often used to give people with other expertise the tools needed to talk to senior leaders using (mostly) financial tools. Their underlying expertise was still a very necessary component of their management jobs.

        If you replace that with someone who only has business experience, and no other subject matter expertise, then you have a hollow manager that does not offer real value to the company.

        For instance, if a company makes metal boxes, someone who worked in tooling, fabrication, or engineering wou

    • came here to say just that! How many MBA's does a corp need? (obligatory joke: How many MBA's does it take to screw in a lightbulb? None, the maintenance guy does that without needing a manager to tell him to!)
  • by Mr. Dollar Ton ( 5495648 ) on Wednesday January 15, 2025 @10:30AM (#65090719)

    Why would I hire one, when I can get OpenAI, Grok and Gemini together for a lot less?

  • Poor MBAs (Score:5, Interesting)

    by nightflameauto ( 6607976 ) on Wednesday January 15, 2025 @10:34AM (#65090725)

    How will businesses continue to collapse on themselves after hype-fixating on next quarter's profits for long enough they eat themselves from within if we don't fill the entire management structure with MBAs? Or is the business world preparing to replace middle management with AI? That'd be a truly giggle worthy moment, the MBA mentality killing the entire MBA job market.

    • Or is the business world preparing to replace middle management with AI? That'd be a truly giggle worthy moment, the MBA mentality killing the entire MBA job market.

      That's beyond "giggle worthy" - it's full-on poetic justice. Thanks for pointing it out - you've just brightened my day considerably!

      • I'm not sure why replacing an MBA with HAL 9000 is going to be an improvement. Being told "I'm sorry Dave but you cannot do that" is not going to brighten anyone's day, especially if your name is not Dave. I suspect any "giggles" are likely to be very short lived if the plan really is to replace them with AI.
    • This seems more of a warning to me. An early indicator of the upcoming economy with the oligarchs running the show. https://www.usnews.com/news/na... [usnews.com]

      This is what the country voted for. I’m sure these individuals will improve egg prices and lower your taxes.

      • This seems more of a warning to me. An early indicator of the upcoming economy with the oligarchs running the show.
        As opposed to what? You sweet summer child. Google robber barons, gilded age or just study history, and you'll find that oligarchs running things is the norm. Unless you think the Soviet experiment and the Great leap forward were good ideas that just need more time to work out.
        • by skam240 ( 789197 )

          The middle class has been in decline since the 70's and we just elected some one who (going by their first term in office) will shovel even more money at the affluent. Basically, we just voted for more decline.

          Especially if those crazy tariffs Trump promised go into effect, the wealthy wont even notice the inflation that's bound to follow that will hurt the rest of us.

  • These people are sitting together. https://www.nbcnews.com/news/a... [nbcnews.com]

    They’re in charge and not even hiding it. You may be a Harvard grad but you’re still not in the big club.

    • by skam240 ( 789197 )

      Jesus, look at Trumps frick'n face in that photo in your link. He looks like that on purpose!

      What an alien...

  • by KiltedKnight ( 171132 ) on Wednesday January 15, 2025 @10:38AM (#65090737) Homepage Journal
    Does this mean that people who get these MBAs now have to actually go get a job doing some of the grunt work instead of going directly into management and maybe learning what the workers actually do before they start making all of these ivory tower decisions that make employees' lives miserable?
    • Re:Oh my! (Score:5, Interesting)

      by The-Ixian ( 168184 ) on Wednesday January 15, 2025 @10:47AM (#65090759)

      I dated someone once who constantly complained about not being able to find a job. I was like "find a company you want to work for and get your foot in the door with any role available." I was thinking along the terms of a "mail room" type of job, but it could be whatever. She was absolutely adamant that she was above that level of work despite being fresh out of college with zero experience. Totally entitled. I just couldn't understand that way of thinking.

      • Re:Oh my! (Score:5, Insightful)

        by gillbates ( 106458 ) on Wednesday January 15, 2025 @11:07AM (#65090817) Homepage Journal

        I just couldn't understand that way of thinking.

        I'll help you out here. Imagine for a moment that you want to start a business, and have found an investor willing to take out a quarter million dollar loan to help you. Would you expect them to wash dishes and scrub floors?

        If people wanted to start out at the bottom in an entry level position and entry level salary, they'd skip college, student loans, and instead just start working. What sense does it make to spend four years of your life going into debt rather than making money if you're going to start at the bottom anyway?

        • Re:Oh my! (Score:4, Informative)

          by ClickOnThis ( 137803 ) on Wednesday January 15, 2025 @11:22AM (#65090847) Journal

          This is to you and the GP.

          People who get an entry-level job don't have to start in the mail room or washing dishes. But they do have to start on a lower rung of the ladder, because they don't have the experience that justifies being higher.

          And most of those entry-level positions require a degree in something. Those who don't have a degree are the ones who start in the mail room or the kitchen.

          • Re:Oh my! (Score:4, Interesting)

            by xevioso ( 598654 ) on Wednesday January 15, 2025 @11:38AM (#65090905)

            All of this thread assumes that companies are promoting from within and that there is a ladder for you to climb. In some cases and industries this may be true, but there's an increasing tendency to let people languish and not promote them, and instead hire people for higher positions at a lower salary than you would get if they just promoted you. Financially it often makes sense for a company to do this.

            This is a strategy commonly used now, as I understand it, and so if you aren't taking that into consideration when you decide to start out with your foot in the door at any entry-level position, you might in fact be *harming* your chances of getting a higher paying job in the future, because your experience will be primarily at that low-level position.

            • by skam240 ( 789197 )

              ...so if you aren't taking that into consideration when you decide to start out with your foot in the door at any entry-level position, you might in fact be *harming* your chances of getting a higher paying job in the future, because your experience will be primarily at that low-level position.

              That doesnt make any sense. If you accept an entry level position you can still continue your job hunt until you find better. For a fresh college grad at least you'll have on your resume that you can hold down a job rather than having zero employment references or just the ones from crappy college and high school jobs.

          • by kenh ( 9056 )

            And most of those entry-level positions require a degree in something.

            Be careful about describing a degree as "required" - if an employer has a true entry-level position and they receive 100 applications. If 75 of the applications are from college graduates, the employer may self-limit their review to college graduates, because presumably they represent a better value/potential to an applicant with only a HS diploma.

            This came up a few years ago when a McDonalds Franchisee said they only hired college graduates because they were receiving so many college graduates as applicant

          • by Tablizer ( 95088 )

            What if she makes a crappy clerk? Not everybody can be an effective clerk. I know a person with mild dyslexia who is otherwise bright, but would make a slow clerk because they have to triple check numbers etc.

            • What if she makes a crappy clerk? Not everybody can be an effective clerk.

              Well then, that person can't be a clerk. There are other entry-level positions besides clerk.

              I know a person with mild dyslexia who is otherwise bright, but would make a slow clerk because they have to triple check numbers etc.

              Your acquaintance would, and could, find some other job that fits their talents but does not require abilities that a dyslexic can't do. There may even be possible accommodations for such an individual, per the ADA. [dol.gov]

            • Well, if she can't even manage to copy all the letters in a big round hand, she'd probably never move up from a junior clerk to an articled clerk, would she?
        • I just couldn't understand that way of thinking.

          I'll help you out here. Imagine for a moment that you want to start a business, and have found an investor willing to take out a quarter million dollar loan to help you. Would you expect them to wash dishes and scrub floors?

          If people wanted to start out at the bottom in an entry level position and entry level salary, they'd skip college, student loans, and instead just start working. What sense does it make to spend four years of your life going into debt rather than making money if you're going to start at the bottom anyway?

          There are those with this mentality that didn't go to college. I have a relative, through marriage, that had this mentality out of high school. So much so that when someone finally convinced her to start at an entry level job, after a week she tried to call a meeting to tell the owners they were running their business wrong. After a few rounds of firing she realized that wasn't really the way the business world worked. Even if she was right (she wasn't), you don't come in as a new hire and expect the bosses

        • by Nite_Hawk ( 1304 )

          Part of the problem is that the degree isn't itself really that important in the grand scheme of things. Yes, it's often a checklist item that companies demand for certain classes of jobs. Pursuing a degree gives you both explicit and implicit advantages though, and many of them have more to do with getting access to the right people and building the right foundation to make yourself marketable. If the only thing you get out of a 4 year program is a good GPA and a degree, you've missed out on a huge part

        • Just getting a job might work for unskilled/on-the-job trained things (hospital courier, food service stuff, etc), or self-taught areas that will accept someone without a degree (software dev, graphic design, etc) if you have the skills to back it up, but that doesn't exactly work for an entry level engineering position or anything else that requires a degree much less a board exam, etc.

        • Imagine for a moment that you want to start a business, and have found an investor willing to take out a quarter million dollar loan to help you. Would you expect them to wash dishes and scrub floors?

          If that is what was needed to make the business a success then yes. After all, if they have just invested $250k in the business they should be highly motivated to make sure it is a success and be willing to do whatever it takes to make that success happen. Sure, I might be questioning my decision to invest that much given that the business was off to such a poor start that I needed to do something like that to ensure by $250k was not money down the drain but I'd do it.

      • I don't know about being "above" working in the mail room, but you'd be right to worry about taking a mail room job if you were, say, a data science grad. Doing work way outside your field is basically equivalent to a gap in your resume, and that can easily be a career ender if it goes on any length of time. Taking an entry level position can be forgivable though.

        I've met people who have been unemployed multiple years, and usually it's not wanting to take a pay/title cut or leave their preferred industry. T

        • by skam240 ( 789197 )

          Doing work way outside your field is basically equivalent to a gap in your resume, and that can easily be a career ender if it goes on any length of time.

          So instead you keep looking for a job while unemployed which means you still have a gap in your resume?

          At least with the entry level job you're earning money until you land what you want.

        • If you weren't landing interviews at 3 months unemployed you sure aren't going to at 3 years.

          Possibly, if the job market gets hot. It goes up and down so much, sometimes it's more about timing than having adequate credentials. There have been lean times where I work, I was pretty sure I would not have been chosen from among the huge number of applicants for the small number of positions at that time.

      • I dated someone once who constantly complained about not being able to find a job. I was like "find a company you want to work for and get your foot in the door with any role available." I was thinking along the terms of a "mail room" type of job, but it could be whatever. She was absolutely adamant that she was above that level of work despite being fresh out of college with zero experience. Totally entitled. I just couldn't understand that way of thinking.

        Modern companies don't work like that any more because they're all holding out for that unicorn applicant. For every open position a company will get hundreds or even thousands of people applying. Even then you'll see that job listing open for months on end. There is no such thing as a "mail room" job today. If your resume and skills don't match exactly you won't get hired. Even if you are considered you better not ask for anything extra because they have 10 people in line behind you who will work for less.

      • This is some 1972 fantasy shit. There is no ladder, and job fields are more specialized now. If you start in the mail room, you're locked into building facilities management. If your goal was to become a marketing director, you would literally never get there. Also, if you stay in one company, your salary will likely never go up - you have to bounce between related companies every 2-5 years.

        There is some room to specialize and end up in a different field by going down a path while you are bouncing between c

        • by skam240 ( 789197 )

          Been with the company I work for for over 20 years and everything is great. Sorry to hear you've had such poor experiences though.

          I should also add nothing stops a person from taking a different job after taking an entry level job. You even get to earn some money while you hunt for a more preferred job.

      • by skam240 ( 789197 )

        Fuck do I hate people who are "above" any kind of employment. It's just laziness and/or classism.

        If you cant find your perfect job you make due with what you can get to pay the bills and earn your way until you hopefully do. And yeah, there's absolutely nothing wrong with starting at the bottom, especially if you're a fresh college grad with no experience. If anything it gives you bragging rights later on after you move up :)

      • I just couldn't understand that way of thinking.

        Entitlement minded

        We had a subcontract engineer with an MBA who was smart, but he insisted on a specific role and refused to perform his job. This was a company that hired many MBAs and PhDs, but his contract was not renewed and he was not hired.

  • Someone has figured out that ChatGPT can produce an MBA's output, and doesn't draw a salary.

    • Someone has figured out that ChatGPT can produce an MBA's output, and doesn't draw a salary.

      Of course not, you’ll need an image generator for that. Output quality may vary.

  • ... and has been for decades now. Yes, there are occupations where a degree and even an academic rank makes sense, but these days academia is largely a badge & vanity thing, bloated with nigh pointless subjects and topics, mostly as a money-making scheme, particularly in the US. With the huge shifts happening in society these days it's no real surprise that this would eventually catch up to the USA Ivy League.

  • GOOD!

  • Why wouldn't someone want to hire a far left rich entitled 20 year old?
    By the way, been hearing about Harvard grads not finding the jobs they want for the last 20 years. This is not new, it's just worse now that universities like this are left commie brainwashing places.
  • by Unpopular Opinions ( 6836218 ) on Wednesday January 15, 2025 @11:16AM (#65090835)

    The problem with modern MBA is the fact that the current enrollment of alumni are the just graduated, zero experience ones. And that is the key piece of the problem. You see, MBA used to be a place where one would exchange experience, expertise, real world problems and solutions. You have fresh folks with perhaps one or two internships, and that is about it. Not that the teachers cannot do that, but it is limited to one person point of view and some textbook examples at best.

    When you have enterprises looking to do more for less, they cannot afford the 6-digit figures (plus sometimes very generous perks) hiring someone to oversee multi-million dollar budgets, while expecting this person to deliver results never delivered before, or with plain zero experience in the managerial position being asked.

    MBA is still helpful, but not for the freshmen. Maybe these Harvard folks would land a job as a regular worker and then the MBA could help them climb the ladder quicker than a non-MBA peer, but as is, MBA is broken and folks putting the designation at their LinkedIn profiles, helpless.

  • It would be interesting to see the stats by work experience and undergrad major. HBS' average work experience is 5 years, and they require 2 to apply. Given a 5 year average, I suspect there are a lot 2-4 year students in that 24% pool and the employment numbers for more experienced grads are higher. I would also expect some majors have a better placement rate than others.

    Since Booth was mentioned, a quick look at their site shows 96% of 2023 grads looking for jobs had a job offer. Which brings up a g

    • by kenh ( 9056 )

      Which brings up a good point; how many, if any, of that 24% were not looking for a job?

      You really think people attend Harvard MBA because they want to be a better-educated, more well-rounded person and not to land a better job (or even any job)?

      A Harvard MBA costs $150K ($75K/year), BTW

  • The data provided in the article is from a few business school over a period of the past two years. This isn't enough data to reach the casual explanation that there's a decline in the number of correlated jobs that these graduates are seeking. In other words, there could be a number of other reasons for the increase in the unemployment rate: 1) A change in perception of the value of a business degree. That is, it's lower than in the recent past 2) A lower "quality" of students enter business schools. Or, t

  • The federal government shutdown many for-profit colleges and universities because they over-stated the employment of their graduates? Anyone remember what the employment rates were for those programs?

    The unemployment rate for Harvard M.B.A.s rose to 23% from 20% a year earlier, more than double the 10% rate in 2022.

    One out of four Harvard MBA graduates can't find a job? Any metrics on the other majors at Harvard?

    Maybe Harvard needs to be denied federally-backed student loans for their MBA Program? [politico.com]

  • Maybe nearly a quarter of Harvard MBAs were affirmative action admissions, or appear to be?

  • by gweihir ( 88907 )

    These people are a problem, not a solution.

    • > These people are a problem, not a solution.

      MBA's actually can serve a useful purpose: they keep OTHER MBA's and bosses our of our techie hair so we can concentrate on real problems instead of management BS. A good MBA can out-BS another MBA so they don't sabotage your own projects.

      Human fluff ain't going away, so we need experts in fluff to counter the bad fluffers.

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