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Author of employment outlook study says graduates need real skills, not just a diploma
A Drexel University study found that most employers plan to hire fewer or the same amount of MBA graduates as in past years, but a co-author of the report says there are still ways to stand out and get hired.
The annual “College Hiring Outlook” report for 2026 asked employers about plans for this year. “Hiring plans for associate degrees and advanced professional degrees (including MBAs and other professional or doctoral degrees) are more limited, with most employers anticipating stable or reduced hiring levels,” the authors from Drexel’s Center for Career Readiness found.
“Among small organizations,” the study found, “nearly 40 percent report no plans or reduced hiring for non-MBA master’s graduates, and close to 60 percent report the same for MBA and other professional degree holders.”
The director of the Center for Career Readiness said “economic uncertainty and employer caution” is driving most of the hesitancy, not “AI substitution.”
Although the study notes that employers generally give cautious support to the use of AI in early career development, this should not be seen as the primary factor in changing hiring outlook for business school graduates, Professor David Prisco told The College Fix via email.
However, “AI is clearly changing the nature of business work,” Prisco said.
Employers in the coming years might begin to reconsider how they allocate work to team members due to the ability of these programs to perform analytical tasks. But employers are looking for more from potential employees, which opens up opportunities for graduates who have specific skills.
Prisco said employers are looking for the “distinctly human skills” of “decision making, leadership, strategic thinking, communication, and the ability to manage complex organizational challenges.”
He cited comments from a PricewaterhouseCoopers recruiter who told him the company is now looking less for analytical skills in potential employees and “more about whether they can interpret results, exercise judgment, and drive business outcomes.”
This trend is broader than just for business school graduates, however. Employers “are becoming more selective overall,” Prisco said.
Even for undergraduate business majors, companies are putting “greater emphasis on practical experience, internships, co-ops, and demonstrated workplace readiness.”
Rather than hiring expectations being reduced for graduate students alone, many complicated interlocking causes are contributing to employer uncertainty across various degrees.
Prisco said students need to focus on these practical learning experiences while also learning communication and teamwork skills, adaptable thinking and problem solving, and “comfort working with emerging technologies, including AI tools.”
He said a master’s of business administration program “remains a valuable degree, particularly for professionals seeking leadership, management, and strategic decision making roles.”
The Fix reached out to several organizations to ask for their feedback on the Drexel report and if it matched with their own experiences.
The Graduate Management Admissions Council, a trade association of business schools, did not respond to a June 25 email seeking comment. Microsoft declined to comment to The Fix.
The hiring outlook for all degrees is not the same, the Drexel study found.
“Mid-size organizations report the most favorable outlook, expressing relatively strong confidence in both their own hiring plans and the broader labor market,” the researchers found. “These firms appear to balance budget flexibility with manageable risk exposure.”
Certain fields, like “health care, finance, and construction” are also projected to create jobs this year, while “Manufacturing, Nonprofit, and Arts & Entertainment report the weakest outlooks.”
Local applicants may also have an advantage, as about 68 percent of employers say they focus on “regional recruitment” for new hires.
“Overall, early-career hiring remains geographically concentrated, reinforcing the importance of place-based workforce strategies even as remote and hybrid work options persist.”
