- Recent MBA graduates find it difficult to find jobs than a few years ago.
- A slowdown in white collars had an impact on MBA graduates in schools like Harvard, Yale and Stanford.
- We have asked economists if the hiring landscape could improve in the coming years.
The labor market for white collars has become so competitive that even MBA graduates – once considered to be one step ahead of hiring – have trouble winning jobs.
Since July, Joshua has been working at Starbucks while he is looking for marketing job. In the fall of 2023, his post of contract at PlayStation was cut and, despite work with a recruitment agency, he has still not won a job in his chosen industry.
“I graduated from MBA in the thirties, living the pay check at the pay check, looking at what is like my colleagues and classmates advancing with their lives,” said Joshua, who obtained his sales diploma From the University of Santa Clara in 2021. The surname is known to BI but is retained due to the fear of professional repercussions.
The acceptance rates of jobs in some of the best business schools have decreased in recent years. A large part probably has to do with a slowdown in the hiring of white passes as a whole, but other proofs suggest that companies hire less MBA. After all, they may need a higher salary than their peers at a time when companies seek to reduce size, save money and invest in technology promising to do the work cheaper than n ‘ No matter what human – regardless of their level of diploma.
The employment rates of MBA graduates are down on an slowing labor market
Business Insider examined employment acceptance rates three months after the diploma in the best business schools in the 2024 US News and World Report – ranking – classification – And focused on the nine MBA programs with data accessible to the public going up eight years and Harvard, with data dating back to six years.
In eight of the 10 schools, the class of the 2024 employment acceptance rate was the lowest.
Economists have told Bi that high interest rates and business investments in artificial intelligence were among the factors that led to slower hiring for MBA graduates.
GRACY SARKISSIAN, Doyen Associate of the Career Management Center of the University of Columbia, said that if the three-month post-graduate employment rate for graduates of the school MBA had dropped in 2023, Employment has reached pre-pale levels by the end of the year.
Dartmouth, Yale, Stanford, MIT, Dartmouth, the University of Michigan, the University of Pennsylvania, and the University of Virginia did not respond to requests for comments. Duke and Harvard refused to comment.
The usual hiring suspects of MBA – Consulting companies and Big Tech – hire less, reported the Wall Street Journal in January.
All this is part of a global slowdown in hiring. US companies have been hiring at almost the lowest rate since 2013, according to data from the Bureau of Labor Statistics.
While The overall rate of American unemployment remains low compared to historical levels, many people who need a job deal with a significantly more difficult market than a few years ago.
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Higher interest rates and economic uncertainty have slowed down the roles in white collar
High interest rates have contributed to slower hiring in industries such as finance, technology and advice – sectors that attract many MBA graduates, told Bi bi Kory Kantenga, head of the ‘ economy, LinkedIn Americas. Instead, health care, government and hospitality have dominated hiring since 2023.
In addition to higher interest rates, uncertainty about Trump administration policies and AI impacts have led certain companies to be more cautious about the enlargement of their workforce, said Audrey Guo, Deputy Professor of Economics at the University of Santa Clara. She has added technological companies that have hired mass workers during the pandemic – only to dismiss many workers in recent years – could seek to avoid this cycle in the current climate.
Allison Shrivastava, an economist of the job laboratory, in fact, said that some companies could slow hiring because they are waiting to see if the economy can stick a “soft landing and a recession is avoided. It has declared that Job offers for the roles of finance and technology on effectively have been considerably gone from their peaks in 2022, at levels below levels observed in February 2020.
“If I was looking for a job in banking and financial development or software, I would expect it certainly more time than in 2022,” said Shrivastava.
Finding work can be difficult even in the sectors with more job opening. This includes management roles, where the openings listed are around 9% higher than they were in February 2020.
Dan Trujillo tries to find one of these management roles. In January, he was dismissed from his role as director of the customer experience in a manufacturing company. He obtained his executive MBA from the University of Colorado a year earlier and said that he had trouble winning his previous job. “I applied to positions between 25 and 30 years without ever hearing anything other than a rejection email,” said Trujillo, who is in the middle of the forties and based in the Denver region.
Guo said some employers may slow down hiring by monitoring the potential of AI tools at the workplace. In addition, significant investments in certain companies in AI could also give them less money to spend the hiring of workers.
“I think that the roles where we see the most important reduction in demand now tend to be those which have very high yields for the use of AI,” said Lisa Simon, chief economist of the company D ‘Analysis of the Revalio Labs workforce. She cited software engineers and data analysts like two examples.
Rate reductions and increased pensions could help job seekers
For the future, Kantenga has said that interest rate reductions in the future federal reserve could help improve labor market conditions for MBA graduates. CME Fedwatch, who projects interest rate changes according to market activity, provides that chance of almost 84% will be lower by the end of the year. However, Kantenga said that uncertainties related to the Trump administration could lead some employers to slow hiring until they have a clearer idea of ​​the implementation of policies.
In addition, certain changes to the current labor market could be in favor of MBA graduates. Satyam Panday, chief economist of the United States and Canada at S&P Global Ratings, said that an increase in baby boomers pensions in the coming years could create a gap in the workforce that AA Probably won’t be able to fill – which could facilitate the task for some MBA graduates to find work. Although some companies can manage with fewer workers, Guo said they will always have to invest in their future leaders.
“Companies will have to think about how to preserve a pipeline of new workers so that, in the end, when the elderly retire or must be replaced, there is always a pipeline of people with this experience,” she declared.
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