I keep seeing posts about how hard it is for MBA graduates from elite schools to get jobs these days. Everyone talks about the terrible job market and how even graduates from the best programs can’t find work in 2024.
People say the MBA degree isn’t worth it anymore when you think about the cost, lost income while studying, and poor job chances. Part-time programs make it even harder to switch careers since you miss out on summer internships.
Sure, consulting companies are hiring less and tech firms laid off workers. The economy has been rough since late 2022. But I think a big part of the problem is that these graduates have way too high expectations and act pretty entitled.
Let me explain what I mean. Yes, consulting and tech pulled back on hiring. During the pandemic, these companies hired too many people thinking the demand would last forever. Tech companies especially went crazy with hiring during COVID because of remote work trends and low interest rates. When things changed, they stopped hiring so much.
But the overall economy isn’t terrible. Unemployment is low, inflation is getting better, and the stock market is doing well. GDP growth looks good and wages are improving. Finance jobs, which MBAs often want, haven’t slowed down as much as consulting or tech.
Other industries are still hiring MBAs. There might be fewer top consulting or big tech jobs, but the market hasn’t completely dried up.
Here’s my main point: MBA students have crazy high expectations because business schools sell them dreams. Top programs make it sound like you’ll definitely get a $200k job at a famous company. When that doesn’t happen, graduates refuse to take anything less.
Industries like healthcare, pharma, defense, cars, insurance, utilities, government, and consumer goods are hiring MBAs. But these jobs don’t have the same prestige or pay as the dream jobs. Starting salaries might be $110k to $140k, which is still great money, but some graduates think that’s not good enough.
Many graduates only want to work in cool cities like New York, San Francisco, or Chicago because they want to have fun. Meanwhile, places like Dallas or Houston have good job markets but are seen as boring. This refusal to move limits their options.
Employers are starting to question if MBA graduates are worth the high salaries they expect. Most graduates demanding $200k don’t have the hard skills to justify that pay.
Many MBA students want to completely change careers. They might say “I made $110k before business school and now I want much more money in a totally different field.” But this doesn’t make sense because their old salary was based on experience in their previous job, not the new one.
Wanting $200k in a new field where you have no experience seems pretty entitled. If they went back to their old field with better qualifications, a pay increase would make sense. But demanding top money in a new area without experience raises questions about unrealistic expectations.
An MBA teaches strategy and leadership, but it doesn’t always give you the technical skills employers want right now, like data analysis or coding. That’s why engineers and data professionals are doing better while MBAs struggle.
Companies would rather hire someone without an MBA who has experience for $90k than pay an MBA graduate $160k who’s changing careers. MBA graduates are too proud to realize their first job after graduation doesn’t have to be perfect. It just needs to be a step forward with decent pay (and yes, $130k is decent).
Some people can afford to be picky if they have money saved up. But for most people, turning down a $110k job because it’s not a $200k job isn’t just entitled, it’s dangerous. Career momentum matters, and gaps in your resume can hurt you. Waiting for the perfect job that might never come could set you back. Plus, you need to start paying back those student loans that can be $200k or more.
I’ve seen classmates make fun of consumer goods brand management jobs that pay $115k out of business school. They forget that $115k is still really good money compared to what most Americans make. Many of these jobs are in cheaper cities too. These people made $60-95k before their MBA, so $115k is still a good return on investment.
The bottom line is that the MBA job market isn’t dead, but it has changed. People who adjust their expectations, consider different industries, and are willing to move to less exciting places will do well. Those who don’t will still be complaining in six months about how their MBA wasn’t worth it.
If you’re an MBA graduate struggling right now, look at your expectations honestly. Is the market really limiting you, or are you limiting yourself?