Recent data from top-tier business schools indicates a slowdown in the job market for new MBA graduates. While graduates are finding it more challenging to secure full-time offers compared to a few years ago, there is a silver lining: median starting salaries for MBA holders have increased.
At Harvard Business School, only 86% of this year’s graduating class seeking employment received job offers, a noticeable decline from the 95% and 96% placement rates of the 2022 and 2021 classes, respectively.
This trend isn’t isolated to Harvard; Stanford’s Graduate School of Business and the University of Chicago’s Booth School of Business also reported slight decreases in job placement rates this year. The downturn in job offers is attributed to a reduction in hiring pace by industries that typically recruit MBA graduates, such as technology and consulting. Consulting firms like Bain and Ernst & Young have delayed start dates for new hires due to slower business, while tech companies have scaled back hiring or even implemented freezes to cut costs in the post-pandemic era.
Barbara Coward, founder of MBA admissions consulting firm MBA 360, explained to the Financial Times that many firms are adopting a ‘wait and see’ approach to hiring in the face of market uncertainties.
Despite the challenging job market, the period between graduation and employment has opened doors for some graduates to explore travel or consider roles they might not have previously. Kristen Fitzpatrick, managing director of MBA career and professional development at Harvard, shared this insight with the FT.
Interestingly, not all Harvard graduates actively sought employment; nearly a third of the class of 2023 were either launching their own businesses, already employed, or continuing their education. None reported postponing their job search.
The good news for MBA graduates is the increase in starting salaries. The median starting salary for Harvard Business School graduates this year is $175,000, up from $150,000 in 2021. Similarly, Stanford GSB’s median salary for 2023 is over $182,000, compared to just over $158,000 two years ago.
Employee wage expectations have also reached new heights this year, reflecting a positive trend in compensation for MBA graduates.
