Harvard business graduates may have a placement problem brewing
Job placements for graduates from one of the world's premier business schools, Harvard Business School, have hit their lowest levels in over five years, indicating a slowdown in demand for highly qualified candidates. According to recent data from the school, 86% of the 73% of its most recent MBA class seeking employment received offers, a significant drop from 95% in 2022 and 96% in 2021.
In an unusual move, the school only recently disclosed the job offer rates for 2023 on its website, following a query from the Financial Times.
This decline in job placements reflects a broader trend of reduced hiring in sectors traditionally recruiting large numbers of MBAs, including consulting, audit firms, and tech companies. Economic uncertainty has led many firms to make deferred offers, delaying employment for several months.
Consulting companies, grappling with a weaker market, have delayed start dates and even laid off staff, contributing to the reduction in demand for additional hires.
Starting salaries in consulting firms like McKinsey and BCG have remained stagnant, eroding their value against inflation.
Comparatively, Stanford University reported that 71% of its MBAs seeking employment had offers on graduation, rising to 89% within three months, reflecting a more positive trend.
The slowdown in MBA demand is evident in the annual Application Trends Survey from the Graduate Management Admission Council, which showed a 5% drop in interest for MBAs and all business school degrees globally in 2023. While demand in the US and Europe has stagnated, there's increased interest from students in emerging economies like India and China, as well as a shift towards more specialized business degrees such as analytics.
