The MBA, once a golden ticket to high-flying careers and six-figure salaries, is losing its lustre — even for graduates of the world’s most prestigious business schools.
In 2024, the job market for elite MBAs has tightened dramatically, leaving many to wonder if the investment still pays off.
A shrinking safety net
According to The Economist, placement rates at top US business schools have dropped from 94% in 2019 to just 81% in 2024. Some of the most renowned institutions, such as Harvard Business School, have seen unemployment rates among their MBA graduates soar to 23% — a stark rise from the 10% figure reported just two years earlier.
The trend is not isolated: Stanford and Wharton are also experiencing similar challenges, with more graduates jobless three months after graduation than at any point in recent memory.
Recruitment cuts and stagnant salaries
The traditional MBA powerhouses — consulting and finance — have slashed graduate recruitment by 20% since 2022, according to The Economist. Technology firms, once a major draw for MBAs, have also scaled back hiring as they pivot towards candidates with more technical or specialised skills.
Average starting salaries for new MBA graduates have stagnated, with median base pay hovering around $148,000 in 2024 — barely budging from previous years, despite rising tuition fees and living costs.
At some schools, the lowest reported base salaries have fallen to $80,000, highlighting the growing disparity in outcomes.
A changing value proposition
With fewer job offers and more graduates accepting roles outside their desired fields — or settling for lower-paid positions — the value proposition of an expensive MBA is under scrutiny.
The Economist notes that 35% of recent MBA graduates are now questioning whether the investment was worthwhile, given the uncertain returns and mounting debt.
A global perspective
The downturn isn’t confined to the United States. At London Business School, 86% of MBA graduates accepted job offers within three months of graduation in 2024, a respectable figure but still a reflection of a challenging global market shaped by economic and geopolitical uncertainty.
Other top schools, such as Chicago Booth, report similar employment rates of around 87%.
In nutshell
As companies focus on leaner teams and prioritise technical skills over generalist management expertise, the MBA is no longer the guaranteed passport to prosperity it once was. For many, the question is no longer “Which job will I choose?” but “Will I get a job at all?”
The Economist’s analysis suggests that unless business schools and students adapt to the new realities of the job market, the MBA’s allure may continue to fade
