Is an MBA in 2025 Worth It?

December 2024 saw many US business schools publish their annual full-time MBA employment reports behind their typical schedule. The Economist says, there’s “no surer sign of distress”.
And when they ran the numbers, they found that only 84% of graduates from the top 15 business schools in the US sought and accepted job offers within 3 months of graduating in 2024. That number was 90% the year before. MIT Sloan, which had 93% of its MBA class accepting job offers within 3 months of graduating in 2022, had a significant drop with only 77% doing so in 2024.
The Wall Street Journal notes that it isn’t much better at the Harvard-Stanford-Wharton level. 23% of Harvard graduates who graduated last year were still looking for jobs 3 months after graduating. This trend reflects a slow job market across industries. For example, MBB consultancies hired 25% fewer candidates from MBA programs in 2024 as they did compared to the three years before. In tech too, hiring has slowed considerably, especially at global giants like Amazon, Meta, Apple, and Microsoft.
What do we think?
Data suggests that this trend is cyclical, rather than persisting.
In our experience, the December-January echo chamber of job anxiety is a yearly phenomenon. Scaremongering about the job market is backward looking; sectors like tech and finance which are especially prone to booms and declines will look totally different in 2-3 years, which is when MBA candidates applying now will enter into the job market. The job market will look very different then, so basing the decision of whether to do an MBA now on today’s jobs number is the wrong way to address this decision.
Zooming out even more, MBA programs have high ROI in the long run. Whether it takes 3 or 5 months to secure your first job isn’t what you should be basing this decision on.
From Sam: Personally, I took 4 months to secure my job after graduating from Oxford SBS! I wasn’t engaged in recruiting activities during my MBA, choosing to focus instead on building my network and skill-set. Statistically, I would have been included in this data, even though I was deliberate about not entering the job market immediately. So, I’m cynical about these figures.
What’s changing for MBAs in 2025
Dual degrees: More students are opting for advanced and specialized degrees. Business schools are expanding their dual degree and joint degree program pathways to accommodate that demand. At Oxford SBS, there are over 30 degree combinations across departments including public policy and governance, geography, medicine, environment, law, and more. Michigan Ross offers 22 formal dual degree programs. It also offers students the option to create their own dual degree, as does Stanford GSB. If you’re considering a Dual Degree, speak to our consultant Nanako Yano, who specializes in these.
Accelerated MBAs: A GMAC study found that one-year MBA programs are increasingly popular among MBA students, likely due to lower costs of tuition and lower opportunity cost of missing out on 2 years of paychecks.
International MBA programs: International MBA programs, particularly in Europe, are increasingly seen as a valid alternative to US programs, due to their short program length of one year (allowing for quicker ROI and lower opportunity costs), global network and diverse learning environment, and the cross-cultural perspective they foster in their cohort. Among our clients at SWC, we’re seeing a growing interest in MBA programs at INSEAD, Oxford SBS, Cambridge Judge, LBS, including among EMBA applicants.
Politics: And with Donald Trump’s re-election as President in the US, the Visa process for internationals might become more restrictive. That likely signals a drop in international applications for US based MBA programs, with many international students feeling unwelcome and uncertain about their job prospects post an MBA. Trump’s anti-DEI (diversity, equity, and inclusion) stance also means that business schools may have to reassess the resources dedicated to DEI offices, courses, and policies.
Entrepreneurship: According to the Economist, a growing number of b-school graduates are choosing entrepreneurial post-MBA paths. Business school graduates are getting the attention of investors with "search funds," where the graduates acquire and manage a company. At Stanford GSB, 94 search funds were launched in 2023, and although the data set is small, investor returns are notably solid.
Is an MBA in 2025 worth it?
While the current job market may be demoralizing for MBA students graduating this year, the MBA is still a highly-valued degree in the workplace. Employers continue to place confidence in traditional, full-time MBA programs for their ability to produce successful leaders, according to the GMAC Corporate Recruiters' Survey 2024. Here’s why we believe an MBA in 2025 is absolutely worth it:
1. Specialized skills
An MBA offers a broad study of areas like strategic management, advanced finance, and global marketing, preparing graduates to step into leadership roles more quickly. Additionally, MBA programs focus on developing essential soft skills, like communication, strategic thinking, and problem-solving, which employers consistently value as top skills for business graduates. But it’s not just a just generalized management education; with specializations offered in high-demand industries like data analytics, supply chain management, healthcare, and other niches, you can position yourself as a strong asset for employers who are looking for a more specialized skill set.
2. AI is the future
GMAC says “AI is dominating the conversation about the future of work”. The World Economic Forum’s Future of Jobs Report 2025 data backs this up – AI and big data are now at the top of the list for fastest-growing skills. Business schools are naturally in tow. MIT Sloan recently announced the launch of its executive education course in developing skills necessary for an AI-powered world, called “Embracing the Unexpected: Creative Transformation Amid Rapid Change”, in addition to two AI-based courses offered in their full-time MBA curriculum. Kellogg, NYU Stern, Chicago Booth, and Columbia are some other top schools that have begun to offer specific AI-focused courses as part of their MBA curriculum to keep up with the growing demand for related skills.
3. Career and networking opportunities
Many organizations, including Fortune 500 companies, continue to seek MBA graduates for leadership positions in finance, consulting, and operations. For some higher-level positions, an MBA continues to be a requirement. The strong international networks built during an MBA also are instrumental in helping MBA graduates advance their careers. This network often provides insider knowledge about job openings and industry trends, and can lead to connections with key decision-makers at influential organizations. MBA alumni networks, in particular, offer ongoing support, mentorship, and career advancement opportunities.
4. Better salaries
Even in a slow economic market, MBA graduates continue to earn significantly higher starting salaries than their previous roles. For example, the median starting salary for MBA graduates in the U.S. is about $115,000, compared to $65,000 for those with just a Bachelor's degree. And as they fast-track into senior leadership roles, MBA graduates see a greater upwards financial trajectory long after graduation. Like we said earlier, an MBA is a long term investment.
5. Global reach
In an increasingly globalized world, an MBA offers excellent career mobility for graduates who want to thrive in international business environments. Many MBA programs incorporate global business perspectives and experiences, making graduates well-suited for multinational companies.
Are you applying for an MBA in 2025? Let’s talk. Book a free chat here.