Are Ivy League MBA degrees losing their luster? Why even Harvard graduates are struggling in today’s job market

The allure of Ivy League degrees, long regarded as a golden ticket to lucrative careers, is beginning to face unprecedented challenges. Prestigious institutions like Harvard University, Stanford, and Wharton are seeing their MBA graduates confront a tightening job market that is reshaping the landscape of white-collar employment. Once synonymous with near-guaranteed high-paying jobs, elite MBA programs are now reporting an alarming trend: more graduates are struggling to secure employment shortly after earning their degrees. At Harvard Business School (HBS), 23% of MBA graduates were still job-seeking three months post-graduation in 2024. This figure is stark compared to just 10% in 2022, highlighting a steep decline in job placement rates. Kristen Fitzpatrick, who oversees career development at HBS, notes that a degree from a top-tier institution no longer guarantees distinction in the job market. “You must possess the skills,” she stated, underscoring the importance of practical expertise over mere prestige. This sentiment resonates across other top MBA programs like Stanford, Wharton, and NYU Stern, which also reported some of their worst placement results in years. The cooling white-collar labor market and evolving hiring practices by leading firms are major contributors to this trend. Tech giants like Amazon and consulting powerhouses like McKinsey, historically known for hiring MBA graduates in large numbers, have scaled back recruitment. Employers are also delaying hires, shifting their focus from year-round recruitment to post-graduation hiring—a stark contrast to practices seen just a few years ago. Additionally, economic uncertainties and corporate cost-cutting measures have prompted companies to adopt a more cautious approach to hiring. This has left many newly-minted MBA graduates competing for fewer positions, even as they shoulder the significant financial burden of their education. To combat these challenges, business schools are rethinking their strategies. Institutions like HBS and MIT Sloan are leveraging technology and enhancing networking opportunities to equip students with the tools to succeed. Initiatives include integrating artificial intelligence to refine résumés, hosting job search workshops, and fostering connections with alumni networks. Susan Brennan, career development leader at MIT Sloan, emphasizes the importance of relationship-building. “Students need to engage with professors, alumni, and other networks—not just rely on recruiters.” For young professionals considering an MBA, the shifting job market poses critical questions about the return on investment. While an MBA from an Ivy League school remains a coveted credential, its value now hinges more on graduates' ability to adapt to a rapidly changing job market than on the degree itself. Prospective students must weigh the costs and benefits carefully, considering how well their chosen program aligns with their career aspirations and equips them with market-relevant skills. As companies continue to evolve their hiring practices, the need for adaptability and continuous learning becomes paramount. For graduates, the days of relying solely on brand-name credentials are waning. Instead, demonstrating tangible skills, networking proactively, and staying attuned to industry demands will be the key to unlocking future opportunities.