'What’s Going On with Harvard MBA?'... 30% of Graduates Are Unemployed Despite Strong US Employment Data

30% Unemployed... "Worst Since 2009"
Mass Layoffs Amid Big Tech and Financial Firms' Earnings Decline

Graduates from the prestigious Harvard Business School (MBA·Business School) in the United States are struggling to find jobs due to a worsening "hiring drought" for white-collar positions across various American industries. With summer graduation just around the corner, more than 30% of students are still searching for employment. Although employment indicators show that the U.S. job market remains hot, mass layoffs of white-collar jobs at big tech companies, Wall Street financial firms, and leading consulting firms have led to continued difficulties in securing jobs.

Harvard University Business School Campus View

Bloomberg reported on the 1st (local time) that "there had been speculation for months that about half of the 984 graduates in 2023 would not succeed in finding jobs," adding, "Among Harvard Business School students and insiders, concerns about unemployment among graduates were greater than before."

Harvard Business School held its graduation ceremony at the end of last month, and it appears that a gloomy atmosphere was sensed within the school due to the large number of graduates who had not secured jobs ahead of the event.

Albert Choi, a second-year student at Harvard Business School, told Bloomberg in an interview that many of his peers tried passionately to find jobs but faced difficulties. Another student, Miriam Stilton, described the atmosphere, saying, "Every time we went to dinner, we asked each other if they had found a job. Usually, about half had secured employment."

According to data released by Harvard Business School, the percentage of graduates preparing for employment three months before graduation was between 94% and 96% for four of the past five years. Only in 2020, the first year of the COVID-19 pandemic, did this rate drop to 90%. Christine Fitzpatrick, Harvard Business School’s employment director, explained, "Historically, our employment-related indicators have not been significantly affected even during economic downturns."

However, professors had a different view. John Dionne, an assistant professor at Harvard Business School, said that compared to before, the number of companies coming to recruit and the number of available jobs had decreased, and some companies even withdrew their hiring plans after initially announcing them. The school stated that over the past decade, the usual employment success rate among graduates was around 80%.

Assistant Professor Jeffrey Boothgang also explained, "Generally, less than 10% of students were still looking for jobs just weeks before graduation. But this time, that figure exceeds 30%. This is the worst since 2009."

This news is notable as it comes amid reports that the U.S. labor market remains hot. According to the April Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Department of Labor the day before, the number of job openings in private companies in April was 10.1 million. This marks a return to over 10 million from 9.75 million in March, significantly exceeding the expert forecast of 9.4 million compiled by Bloomberg.

While the U.S. labor market overall is struggling to find workers, large-scale layoffs in white-collar jobs have continued over the past year, especially in big tech companies and financial firms. Bloomberg reported that industries where Harvard Business School graduates mainly find employment include big tech companies such as Google, Wall Street financial firms, and consulting firms like McKinsey, Boston Consulting Group (BCG), and Bain & Company.

Fitzpatrick expressed optimism, saying, "Students often wait to secure better opportunities," and predicted that the situation would improve by the end of summer.