The job market for new MBA graduates has cooled, with salary growth moderating across several sectors that previously offered substantial pay premiums. While employers still plan to hire MBAs, year-on-year salary increases are modest and not statistically significant when adjusted for inflation in the U.S. In some regions, like parts of Europe and Africa, projected MBA salaries are flat or declining. Pay at top consulting firms like McKinsey, BCG, and Bain & Company has stalled for a third straight year, with total compensation packages for MBA recruits remaining around $270,000-$285,000.
Even graduates from elite institutions like Harvard Business School are facing difficulties, with 23% of job-seeking Harvard MBAs who graduated last spring still looking for work three months post-graduation, an increase from 10% in 2022. This highlights a new reality where even top-tier degrees do not guarantee a quick job placement. The overall employment rate for full-time MBA graduates three months after graduation at AACSB-accredited schools was about 85% in 2024–25, a slight decline from 87.5% a year earlier, continuing a multi-year downward trend.
Globally, applications for graduate management education grew by 7% in 2025, following a 12% gain in 2024. However, U.S. MBA programs, especially those reliant on international enrollment, are experiencing significant declines. Some top-ranked U.S. programs saw first- and second-round applications fall by 20% to 30% in the most recent admissions cycle, with international applications at one top 20 school dropping by 43%. This shift is attributed to factors like visa uncertainty, high costs, and restrictions on post-study work in the U.S., leading to a structural rather than cyclical downturn.
This softening demand and increased uncertainty about the return on investment are leading some U.S. business schools to reduce prices or offer more scholarships, creating a "fire sale" environment in certain segments of the market. The percentage of incoming graduate management students receiving merit-based scholarships rose to 47% last year, up from 32% a decade prior. Students are also adapting by leveraging prior experience, upskilling in areas like data analytics and AI, and taking a more strategic approach to their job searches, with the value of an MBA increasingly measured over a longer horizon rather than immediate starting salaries.
