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Jobless MBAs
Once sought after by the top firms all over the world, Master of Business Administration (MBA) graduates from elite schools are now struggling to find jobs.
Data from the Wall Street Journal show that about 20% of job-seeking 2023 Harvard MBA graduates were unemployed three months after graduation, up from 8% in 2021. Meanwhile, 18% of Stanford MBAs were jobless compared with 9% in 2021, while 13% of MBA holders from Massachusetts Institute of Technology’s Sloan School of Management didn’t have jobs, up from 5% in 2021.
Critics have long argued against the value of paying thousands of dollars to acquire an MBA. After all, the greatest entrepreneurs enhance their business acumen through lived experience rather than attending lectures and reading textbooks.
The AI effect
MBA graduates from prestigious universities are usually shoo-ins for the top tech and consulting firms in the world. But over the last couple of years, these companies have prioritized efficiency and have been restructuring their teams.
There are lingering concerns about the MBA being a generalist degree. Today’s tech age has prompted a shift in the labor market, and businesses are looking for specialized staff, not an expensive jack of all trades.
The rapid emergence of artificial intelligence (AI) has allowed these companies to do more with less. Low-cost AI engines are already being used to automate tasks such as data analysis, financial modeling, and market research—responsibilities that used to be handled by MBA graduates.
The offshore touch
Results churned out by AI still need further analysis, interpretation, and execution, and consulting firms have entrusted these high-value tasks to offshore teams. They may not have degrees from Ivy League schools, but their experience and specialized skillset have made them vital players in the business decision-making process and operations.
Offshore staff do not just handle administrative assignments such as calendar management, database management, transcription, and others. Nowadays, they can handle very complex tasks such as accounting and finance, graphic design, IT management, and more. Some businesses even have offshore senior management in their workforce.
Cost savings are just one benefit of outsourcing high-level management. Critically, the offshore high-level staff brings diverse backgrounds and fresh perspectives that can help firms adapt to a fast-paced tech environment.
Will the value of an MBA harken back to its golden days? It’s a matter of wait-and-see. For now and in the foreseeable future, businesses will continue to harness the power of AI and offshore workers.
The question for your business
How has the rise of AI and offshore outsourcing affected your recruitment process?
