The job market has become unforgiving, even for graduates of elite institutions like Harvard Business School (HBS). According to The Wall Street Journal, a staggering 23% of HBS’s 2024 MBA graduates were still looking for a job three months after graduation.

This sharp increase in the unemployment rate of 10% in 2022 highlights a tough economic climate where prestige is no longer enough. “Going to Harvard is not going to be a differentiator. You have to have the skills,” said Kristen Fitzpatrick, head of professional development at HBS.

Harvard’s struggles are part of a broader trend. Institutions such as Wharton, Stanford and NYU Stern have reported their worst job placement numbers in years. At Northwestern’s Kellogg School, 13 percent of MBA graduates remained unemployed three months after graduation, triple the number in previous years.

Liza Kirkpatrick, associate dean at Kellogg, said, “There is no one left in the field” as schools step up efforts to support graduates.

The technology and consulting industries, traditionally key recruiters, have reduced hiring significantly. Companies like Amazon, Google and McKinsey have cut back on MBA hiring. McKinsey hired just 33 Chicago Booth MBAs in 2024, down from 71 in 2023, the WSJ reported.

The fierce competition has left graduates like Virginia Darden University alumnus Ronil Diyora discouraged. Diyora, who switched careers to technology, applied to more than 1,000 positions and attended numerous networking events, but he’s still unsure of the value of his MBA.

Others, such as Yvette Anguiano, who landed a consulting role with EY-Parthenon, are facing delayed start dates. Anguiano, whose start was delayed until June 2025, said, “I was pretty devastated” as she juggles mounting student loans.

Despite the challenges, MBA graduates who find employment report strong starting salaries, often exceeding $175,000. Columbia Business School even reported an increase in employed graduates compared to the previous year. However, Fitzpatrick cautions, “I don’t think it’s going to change,” indicating that recruiting difficulties could persist.

Harvard and other institutions are turning to AI to navigate this evolving landscape. The tools now recommend job partnerships and courses to address skills gaps, reflecting a shift in how graduates and institutions approach an increasingly selective job market.