23% of 2024 Harvard MBA remain unemployed after 3 months of graduations. Is the MBA craze dying?.

 The 23% unemployment rate for Harvard Business School’s 2024 MBA graduates, three months post-graduation, is a notable increase from 20% in 2023 and 10% in 2022, reflecting a challenging job market for elite MBAs. This trend isn’t unique to Harvard—other top-tier schools like Stanford (22% unemployment) and Wharton (20%) are also seeing decade-high unemployment rates among MBA graduates. Several factors suggest this doesn’t signal the end of the MBA craze but rather a shift in its value and expectations:

1. Market Shifts and Employer Preferences: Companies, especially in tech and consulting, are prioritizing specialized technical skills (e.g., coding, data analytics) over generalist MBA knowledge. Major firms like Amazon, Google, McKinsey, and BCG have cut back on MBA hiring, with McKinsey reducing hires from 71 to 33 at Chicago Booth in 2024. The rise of AI and automation is redefining or eliminating traditional MBA roles, while employers increasingly value alternative credentials like coding bootcamps.
2. Economic Context: The U.S. economy shows mixed signals. While December 2024 added 256,000 jobs and unemployment remains low, sectors like tech and finance—key MBA recruiters—are facing hiring freezes and layoffs. Q4 2023 GDP growth was only 1.4%, indicating economic slowdown, which impacts high-paying corporate roles.
3. Graduate Expectations: Some argue the unemployment rate reflects selective behavior. Many Harvard MBAs, often from wealthier backgrounds, may hold out for high-paying roles (e.g., $250k+ total compensation) in finance, consulting, or tech, bypassing “less prestigious” jobs. About 30% of the 2024 class didn’t seek employment, with 14% starting their own businesses, a stable trend since the pandemic.
4. MBA Value and Adaptation: Despite challenges, MBAs still command high salaries—median starting salaries often exceed $175,000. Schools like Harvard are adapting, testing AI tools to match graduates with jobs and recommend skill-building courses. Applications to Harvard’s MBA program also rebounded by 20.9% in 2023-2024, suggesting sustained interest.
5. Broader Implications: The struggles of elite MBAs highlight a broader evolution in the job market, where prestige alone isn’t enough. However, MBAs remain valuable for specific paths like consulting, finance, or career pivots, especially at top-tier schools. The high cost (e.g., $237,708 for Harvard’s two-year program) and debt burden raise questions about ROI, but the degree’s appeal persists for those targeting elite roles or entrepreneurial ventures.

Conclusion: The 23% unemployment rate doesn’t mark the end of the MBA craze but signals a need for adaptation. The degree’s value is under scrutiny as employers prioritize skills over pedigree, and economic conditions tighten. However, strong salaries, entrepreneurial opportunities, and rising applications suggest MBAs still hold significant appeal, particularly for those who can align their skills with market demands.

The craze is surely evolving...