There have been many articles in the past several weeks that appear foreboding—job offers to MBAs graduating from the most prestigious institutions are down—DOWN!!—from previous years. Only 85% (or so) of students from MIT Sloan, Harvard, etc., have been offered jobs upon graduation.

Heavens. Is this the death knell of the MBA?

I love data, and diving deep into a rich data pool is something I adore. Behind these seemingly accurate numbers, however, are both omissions and truths that are important to consider. Since the pandemic, many people have “upskilled,” and the number of applications to full-time and part-time MBA programs has soared. According to the GMAC Trends Survey, applications were up 10% in 2024 compared to 2023 alone. In addition, the number of part-time MBA program spots has increased during this period. Many of these part-time programs—sometimes called Executive MBA programs (but not always)—are at brand-name universities such as the University of Chicago, Berkeley, and Northwestern, just to name a few.
 

Which industries do graduates from the most prestigious MBA programs most frequently aspire to? No surprise here—it’s consulting, financial services, and technology (sourced from MIT Sloan and Harvard). Almost two-thirds of graduates enter these three general fields.

So yes, there are many more graduates coming out of these programs than there are jobs available. But one important piece of information is not included in the data from any of the articles about the grim job future of MBAs: the number of graduates starting their own businesses right after graduation. This seems obvious, but these graduates do not have job offers—and therefore, they are not included. According to MIT Sloan, almost 10% of its graduates are starting their own businesses and were omitted from the data. The same is true at Harvard, and I assume this pattern is similar across other programs.

So yes, MBAs are not all getting job offers, but most are employed in one way or another.

The future is not that bleak for MBAs, and the degree can still be an asset—not only on a resume, but also in building networks and creating stronger career opportunities. So how can a college student best prepare to undertake graduate work and pursue an MBA?

First and foremost, work experience is key for admission to top MBA programs. With only a few exceptions, a minimum of two years of work experience is required for admission to a top-20 MBA program. The purpose of business school is to build on what each student has already learned through professional experience and to engage in a collaborative learning environment during graduate study. The MBA should enhance a student’s prior knowledge and expand it. Therefore, working after college—and making the most of that experience—is essential for a competitive application.

Next, many programs require either the GRE or the GMAT, along with a statement of purpose. Study hard for the exam and think carefully about why a specific program is the right fit for you.

Do not be deterred from pursuing graduate business study if you believe it will help propel your career. Doomsday headlines with grim statistics provide only a partial picture of what is happening in actual businesses. If you believe a graduate degree is what you need to take your next step, be informed and take that leap.

Marjorie Licht
Director of College Advising