How MBA Students Are Dealing With a Tighter Job Market

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WSJ Your Money Briefing 8 min 2 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Unknown 0:00
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J.R. Whalen 0:33
Here's your Money Briefing for Thursday, October 19th. I'm J.R.

How has the hiring outlook changed for second‑year MBA students since they applied to business school?

J.R. Whalen 0:37
Whelan for The Wall Street Journal. The fall is usually an exciting time for second-year MBA students when full-time job offers begin coming in. But things have changed this year.
Lindsay Ellis 0:49
The white-collar job market is much more challenging these days. We're talking many interviews before an offer comes, fewer job postings overall. These are positions that are tough to land right now.
J.R. Whalen 1:04
We'll talk to Wall Street Journal reporter Lindsay Ellis after the break.
Unknown 1:14
This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation.

Which industries are pulling back on MBA recruiting and why?

Unknown 1:22
ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T.com.
J.R. Whalen 1:51
MBA students are finding that job offers are few and far between.

How did overhiring and recent business slowdowns create a tougher market for MBAs?

J.R. Whalen 1:55
It's a stark change from when they first applied to graduate school. Wall Street Journal reporter Lindsay Ellis joins me. So, Lindsay, take us back to when the current crop of second-year MBA students applied for business school. What was the job market like then?
Lindsay Ellis 2:10
So the students who are set to graduate this spring applied to graduate school in 2021 and 2022. And as you'll remember, the white-collar job market then was incredibly hot, so much so that employers were trying to convince their workers who were applying to business school at the time to And what do things look like now? So the broad employment picture is still quite good, but as we've reported over the last six months, the white-collar job market is much more challenging these days. We're talking many interviews before an offer comes, fewer job postings overall. These are positions that are tough to land right now.
J.R. Whalen 3:09
In what sectors are we seeing fewer job offers?
Lindsay Ellis 3:12
So in my reporting for this story, I was really focusing on three sectors, tech, finance, and consulting. And that's because those three sectors hire 70% or more of students from top MBA programs. And they've all had a really rocky year.

What strategies are MBA students using to adapt their job searches right now?

Lindsay Ellis 3:32
In finance, dealmaking has slowed down. Corporate clients have been hesitant to hire consulting firms, which makes for a challenging environment there. And we've all been following the tech layoffs at big companies. And so it all adds up to a really challenging job market for students.
J.R. Whalen 3:50
And why has the job climate changed so much?
Lindsay Ellis 3:53
In addition to the more challenging climate for those key areas, another key reason is overhiring. We know that some of the major employers of MBAs had gone on a hiring spree a few years back, and so they had a ton of people, and now that's coupled with this more rocky stretch business-wise for them.
J.R. Whalen 4:19
You spoke with several MBA students who entered business school when the job market was red hot. How are they dealing with this shift?
Lindsay Ellis 4:26
So many of them are really trying to step up their networking game, traveling long distances for face-to-face meetings, casting a wide net on LinkedIn among people who went to their MBA programs and graduated a few years prior. They're also considering a wider range of roles and companies. So Someone who might be interested first and foremost in management consulting might think, okay, well, maybe I'll look into a strategy role inside a company.

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