Once considered a guaranteed gateway to lucrative careers, the MBA is under scrutiny as unemployment rates rise—even among graduates from elite institutions

The job market for MBA graduates has reached a critical juncture, sparking conversations that resonate with a growing number of aspirants and professionals grappling with the changing realities of employment. Once seen as a surefire ticket to high-paying corporate roles, the MBA degree is scrutinised for relevance in an evolving economic landscape. This issue is not confined to India alone; even graduates from elite institutions like Harvard, Stanford, and Wharton feel the squeeze. The Wall Street Journal recently reported that in 2024, 23 per cent of Harvard Business School’s  MBA graduates were jobless. Other top-tier business schools like Stanford and Wharton have seen similar dips, with unemployment rates hovering around 20 per cent.

The problem is not just limited to the United States. According to the International Labour Organisation’s Global Employment Trends for Youth 2024, 13 per cent of the global youth labour force was unemployed in 2023—a staggering figure representing nearly 65 million people. This unsettling trend makes traditional, generalist MBA degrees less appealing than targeted skill certifications. A recent Forbes report highlighted how some MBA graduates have succeeded by lowering their expectations and opting for less conventional roles. In an era where industries are shifting dynamically, the rigid, cookie-cutter MBA model is struggling to keep pace. The need for a 360-degree reimagination of this degree has never been more pressing.

Degrees Alone Won’t Cut It Anymore

One fundamental truth is becoming evident: degrees alone no longer guarantee job or entrepreneurship security. The future belongs to professionals who continuously upskill and adapt to meet the ever-changing demands of the workforce. What used to be a clear, structured career trajectory for MBA graduates—typically leading to consulting, finance, or management roles—is now blurred. The stark reality is that a prestigious qualification, while valuable, no longer provides immunity against unemployment or underemployment. Even more telling is the global shift in job seekers’ mindsets. While travelling to Canada, I recently observed an MBA graduate running a salon branded “MBA Barber Shop.”  This reflects an important reality—many skilled gig jobs are vital for holistic growth, but traditional academic pathways have often dismissed such careers as unworthy. Yet, most developed nations respect one’s skills rather than qualifications or family background. We must ask: Why doesn’t Indian society do the same?

Skill Respect Over Degree Prestige

The changing job landscape demands a fundamental shift in how we perceive employment, education, and career success. Skill acquisition is about individuals learning new competencies and families being sensitised to alternative career paths. It is about communities understanding the implications of an evolving job market. It is about cities and regions acknowledging and respecting those who possess the skills necessary to sustain a livelihood, irrespective of whether they hold an MBA or a B.Tech degree.

The MBA has been a gateway to professional and financial success for decades. However, the economy’s evolution demands a departure from this narrow thinking. In India and many other countries, social conditioning has led to an unspoken hierarchy of professions. White-collar corporate roles are celebrated, while vocational or blue-collar jobs are often overlooked. This mindset is outdated and damaging in a world where adaptability and skills matter more than mere academic credentials.

A 360-Degree Skills Revolution

What we need now is a complete rethinking of education and skill development. The traditional MBA must evolve from a broad-spectrum business degree into a dynamic, skills-focused program that integrates emerging industry trends. A 360-degree approach should include everything from finance to marketing and HR.

MBA programmes must incorporate niche skills such as data analytics, digital transformation, sustainability management and entrepreneurship in beauty-wellness, the most emerging sector. Instead of theoretical coursework, there should be a stronger focus on apprenticeships, live projects and problem-solving in real-world business scenarios.

Understanding AI, automation, and emerging technologies should be a core part of the curriculum to prepare graduates for future-ready roles. Rather than treating entrepreneurship as an alternative, business schools should actively promote and equip students with the skills to start and sustain their ventures. Business schools must recognise the gig economy’s rise and train students to navigate freelance and contract-based work models.

Beyond Livelihood—Dignity in Work

Redefining career success means placing equal value on all forms of work. Whether a person is an MBA graduate managing a corporate division, an AI consultant, a skilled tradesperson, or a self-employed barber, their ability to contribute meaningfully to society matters. The prestige of a job should be measured not by its title but by its impact and sustainability.

Parents, educators, and policymakers have a role in fostering this change. We must instil in young minds that success is not confined to traditional white-collar professions. Regardless of their chosen field, a skilled individual should be celebrated just as much as a corporate executive. If an MBA graduate decides to become an artisan, a chef, a salon owner or a renewable energy technician, they should be seen as pioneers, not failures.

The Need for Institutional Change

Educational institutions must move beyond outdated frameworks and align themselves with industry demands. Business schools should foster adaptive thinking, preparing students for unconventional but lucrative career paths. The focus should be on problem-solving, digital proficiency, and entrepreneurial agility rather than rigid academic theories.

Governments and industries should also contribute by incentivising skill-based education. Scholarships, subsidies, and awareness campaigns can help shift societal perspectives on what constitutes a respectable and rewarding career. 

Conclusion: A Future Built on Skills Once a golden ticket to corporate success, the MBA faces an existential crisis. If it is to remain relevant, it must undergo radical transformation. A degree is no longer a guarantee; what truly matters is an individual’s ability to adapt, innovate, and deliver value in an ever-changing world.

As a society, we need to support and encourage young professionals in their quest to discover their true potential—even in jobs that were once considered “odd.” In reality, no job is odd; what matters is its necessity and impact. By embracing a 360-degree perspective on skills and careers, we can build a more inclusive, resilient, and future-ready workforce. The time for change is now.

(The writer is a Co-Founder and MD of Orane International, a Training Partner with the National Skill Development Corporation, and a Network Member, of India International Skill Centres. View express are personal)