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For decades, earning an Ivy League MBA has been considered the golden ticket to jobs everywhere. According to Fortune, a Harvard MBA is the best of the best, earning the top spot in a ranking of 98 U.S. business schools. Yet, in 2024, even an elite MBA degree from Harvard is no longer a guarantee of employment, as unemployment numbers for recent grads have more than doubled. According to recent reports, including an article published on MSN, a growing number of Harvard Business School graduates are struggling to secure positions. In 2022, only 10% of spring MBA graduates from Harvard were still looking for work, 90 days after graduation. Today, that number has ballooned to 23%. What does it say about the job market, when nearly a fourth of grads at a top MBA program - the largest number in over 10 years - can’t find work?

“It’s definitely a bad market,” explains one unnamed Harvard Business School MBA student in Poets and Quants, a college-focused blog. “But most of my friends who tempered their expectations were able to land great positions. HBS students (are) self-selecting out of certain jobs that may be seen as a ‘step down’ from their roles before the MBA despite them being perfectly great well-paying jobs. HBS students tend to come from wealthier families and backgrounds that can stomach a few months of unemployment.” Harvard’s placement numbers trail every M7 peer, including Stanford, Columbia, Northwestern’s Kellogg and University of Chicago’s Booth. “We don’t have jobs because we don’t need jobs”, sounds like something an MBA student would say before a lecture on circular reasoning.

This unsettling trend extends beyond Boston, and the elite halls of Harvard. MBAs from other prestigious programs and graduates from lesser-known universities are also finding it increasingly difficult to navigate the modern job market. The implications are far-reaching, impacting both job seekers and business leaders. Here, we unpack why the job market is tightening and how Gen Z job seekers, employers, and aspiring leaders can adapt to thrive in this changing landscape.

A Closer Look at the Jobs Numbers

JP Morgan says that the employment market made a strong finish in December, adding 256,000 jobs. On paper, the job market appears robust, as “December’s jobs report confirms that this is a strong economy”. So why are MBA students getting a sinking feeling near the Charles River?

The U.S. unemployment rate has hovered near historic lows, and employers continue to report talent shortages in various industries. Yet, the picture is more nuanced. The hiring freeze in sectors like tech and finance has created ripple effects that are disproportionately affecting top-tier MBA graduates.

The Evolving Nature of Work is Impacting MBA Jobs

Part of the issue lies in the rapid evolution of the workforce. The pandemic accelerated trends like automation, remote work, and gig-based employment models. Companies are rethinking their organizational structures, focusing on leaner teams, and placing greater emphasis on specific technical skills over generalist business knowledge. Traditional MBA programs, while still valuable, may not always align perfectly with these new priorities.

Moreover, the influx of alternative education pathways, such as coding bootcamps and specialized certifications, has leveled the playing field. Employers increasingly recognize the value of non-traditional credentials, challenging the authority of the MBA.

Advancements in artificial intelligence (AI) and automation are projected to lead to substantial layoffs and job eliminations on Wall Street - a traditional hiring ground for hotshot MBAs in finance. Based on a survey conducted by Bloomberg Intelligence, featuring input from Wall Street giants like Citigroup, JP Morgan Chase and Goldman Sachs, operations jobs are most at risk, according to Forbes.

The Unspoken Job Market

Another factor complicating the job hunt is the rise of the unspoken job market—positions that are never formally advertised. Research suggests that up to 80% of job openings are filled through networking and referrals rather than traditional applications. For MBAs who may rely heavily on campus recruiting programs, this shift can be a rude awakening. Another hidden threat? Internal hires and promotions.

Advanced management roles, including executive positions, have been eliminated in record numbers over the last 18 months - shrinking the market substantially for MBAs. There’s a difference between adding jobs to the overall economy, and having a need for elite MBA skills. As companies flatten hierarchies, white collar jobs are disappearing.

What Aspiring Leaders Can Do - No MBA Required

In this challenging environment, adaptability is key. Education matters, but with many employers focusing on skills-based hiring, it doesn’t matter as much. Here are some actionable steps for Gen Z job seekers, business leaders, and aspiring leaders, who aim to maximize their career investment:

1. Focus on Transferable Skills

Employers increasingly value adaptability, emotional intelligence, and problem-solving skills. These soft-skill competencies often outweigh technical expertise, especially in roles that require leadership or strategic vision.

2. Embrace Lifelong Learning around AI

When a Harvard MBA is $115,638 per year, the cost-benefit analysis of education is something to consider. Getting into an elite institution is impressive, but is it necessary? No matter where you are in life, there are no guarantees. For many, learning is its own reward. Platforms like Coursera, LinkedIn Learning, and even Nvidia offer free or low-cost options for enhancing your AI skills. Would that kind of learning expand your career potential?

3. Turn Away from Social Media and Focus on Social Skills

Harness the power of professional networks, both online and offline, and utilize the most powerful tool in business today (Hint: it’s not a Harvard MBA). It’s a conversation. Attend industry events, join LinkedIn groups, and reconnect with alumni - getting face to face (or face to screen) with the folks that can help your career. The more people who know your value, the better your chances of tapping into the hidden job market.

4. Redefine Success, Like a Harvard MBA Would

To be fair, some Harvard students aren’t trying to get jobs. They are making jobs. These enterprising graduates are launching businesses, seeking investment, and building on their dreams. For them, entrepreneurship is the career choice - and one that many are making, in the creator economy.

The Role of Business Leaders, Surrounding MBA Jobs

For business leaders, the current job market offers an opportunity to rethink hiring practices. Companies are not in business to hire MBAs. They do so when the education, training and experience fills a need - not an obligation. “We’re not immune to the difficulties of the job market,” said Kristen Fitzpatrick, who oversees career development and alumni relations for HBS. “Going to Harvard [alone] is not going to be a differentiator. You have to have the skills.” In a tightening white collar job market, being creative about your career might be skill number one.

Companies that invest in their employees’ growth are more likely to retain high performers and build loyalty. However, consider what it takes to get into Harvard - and the investment that MBA students must make (it’s not just financial). Harvard only accepts about 14% of applicants, and there’s little doubt that these students are well-trained, intelligent and resourceful. The question for business leaders is: is this level of education something that you need?

The Future of Jobs is Changing for White Collar Workers

The struggles of even the most elite MBA graduates highlight the unpredictability of today’s job market. For Gen Z, this serves as both a cautionary tale and a call to action: adaptability, resilience, and strategic networking are essential. And don’t forget innovation. Or patience. Beyond the macro-level statistics, there are pockets of counter-intuitive results. And for MBA students everywhere, that’s a call to action: go out and find counter-intuitive possibilities.

While the job market may be tightening for MBAs, it’s not without opportunity. Why get a job when you can start a business, and make a job? Indeed, that entrepreneurial question is calling to many in the job market right now. Those who are willing to adapt, innovate, and embrace change will find that the future of work holds promise—even if jobs look different than we once imagined.

https://www.forbes.com/sites/chriswestfall/2025/01/15/when-harvard-mbas-cant-find-jobs-how-the-job-market-has-changed/