China headhunter SunTzu Recruit have learned that Federal Reserve officials continue to exert pressure on the economy, and its effects are gradually manifesting across various facets of the real economy, with the job market being particularly crucial. Harvard University, renowned for its top-tier business school, recently released employment statistics for its MBA graduates of the class of 2023. Headhunters discovered that 73% of the graduates actively sought job opportunities, among whom 86% received job offers, and ultimately, 80% of the students decided to accept these invitations.
The brand influence of Harvard University is once again validated here. The median salary for successful graduates reached $175,000, with consulting, private equity, and technology companies being the most active recruiters of Harvard MBA graduates.
However, upon scrutinizing data from the past five years, headhunters notice a decline in this year’s employment rate. Compared to the figures for 2022 and 2021, the proportion of students receiving job offers during their job search period was 95% and 96%, respectively. Given the sluggish downturn in the U.S. and global economy, fluctuations in Harvard University’s employment data are understandable. Companies in the U.S. consulting, auditing, and technology sectors, which were previously keen on recruiting MBA students, have slowed down their hiring pace this year. Some prominent institutions have even introduced deferred start policies, requiring graduates to wait several months before formally joining.
For example, Ernst & Young notified some of its fall graduates last month that their start dates would be postponed until July or August of next year, while offering thousands of dollars in compensation to affected graduates. Additionally, other “Big Four” accounting firms have announced layoffs due to a slowdown in capital market mergers and acquisitions and a reduction in consulting projects. Meanwhile, McKinsey and BCG have kept graduate salaries flat compared to last year, meaning that real purchasing power is actually declining.
Meanwhile, 62% of Stanford University’s MBA graduates entered the job market this year, with 71% receiving job offers upon graduation, a figure that rose to 89% three months after graduation.
Kristin Fitzpatrick, Executive Director of Career Services at Harvard Business School, commented on this phenomenon, stating that this year’s recruitment market presents a unique dynamic. Students affected by delayed employment are seeking “bridge employment” or other full-time roles, while more students than before are opting for post-graduation internships.
Furthermore, the Graduate Management Admission Council’s (GMAC) annual Application Trends Survey shows a 5% decrease in interest in applying for MBAs and all business school degrees in 2023. However, despite concerns within the industry, many insiders remain optimistic. Barbara Coward, founder of MBA 360 Admissions Consulting, says that while there has been some softening in consulting and tech industries, the healthcare sector is showing growth trends. She believes that any position requiring data analysis will create demand. The current decline in employment rates is driven by market uncertainty, with many U.S. companies experiencing the lingering effects of persistent inflation, thus exercising caution in additional hiring.
Barbara also emphasizes that potential MBA applicants are paying more attention to present circumstances, such as job dissatisfaction or poor bosses. She believes that applying for an MBA is a better option for getting out of such predicaments. While future employment issues still need to be considered, economic conditions may also change by then.
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