Covid-19 and Its Negative Impacts in the Job Market of MBAs

COVID-19 is having negative impacts on everything and naturally, the job market is going to be affected a lot due to this. But, in 2021 the percentage of negative impacts due to covid-19 will be even higher than it was in 2020. According to a recent report of Relish Careers, Covid-19 will change the job market greatly and the candidates after passing MBAs may have to struggle.

How Job Offers and Internship Getting Changed Due to Covid-19?

In 2020, there is a possibility of a 20% change in the job market due to the pandemic. Due to the pandemic, the demand of the users will decrease. This is because they will learn to cope up with the shorter amount of luxury and amenities. As a result, the manufacturers or all other sectors will need less workforce to produce goods or services. It is because there will not be any need for it.

Impact of Covid 19 on MBA students who are passing out in 2020 or 2021 will be the worst sufferer of it. Out of 100 companies or sectors, nearly 20 opined to change the job offers or internship opportunities. This is not the end!

Covid impact on MBA job seekers and interns is pretty visible from this picture. Scope of MBA after corona will see a decay in the post-pandemic situation to minimize the company expenses.

Future of MBA after Covid is under question especially for those who are about to begin their career. This negative impact is irrespective of a high or low MBA score after Covid 19.

• 44% of the MBA graduates who already received offers from the MNCs affirmed a delay in job offers due to Covid-19
• MBA candidates who were about to get the summer internship reported that their internship offers were canceled.

The only positive side of this pandemic is the top B-schools are trying their level best to provide career services to the candidates. Near about 60% of the B-schools are using their resources to offer a bright future of MBA post Covid.

Covid-19 and Its Impacts on International Candidates

As per the survey, international candidates will sufferer a lot more than the domestic ones. In terms of career service as well as job offerings, the condition of international candidates is worse, compared to the domestic candidates.

Out of 100 international candidates, 35 confirmed that their job offers were rescinded or sometimes changed, whereas only 20 out of 100 domestic candidates of US affirmed this.

It is an indication that the students who studied abroad with a dream for a bright career there, may come back to their places. From another perspective, the international country may miss a range of qualified candidates as well.

If we check for detail, near about 50% of candidates strongly agreed to the fact that their job offers changed during this pandemic. For domestic candidates, this percentage is below 40. When it comes to ‘disagree’ and ‘strongly disagree’, the percentages of domestic candidates are higher, therefore, it is clear that international candidates suffered more.

According to the Relish Careers Survey report, the first-year candidates faced the problems the most. The suspension on H-1B is like an added disadvantage here.

Impacts of Covid-19 on Different Sectors

A few sectors are found stable in this pandemic like the healthcare sector, banking, and manufacturing. 80% of MBAs are seemed to have a shift to these sectors. The software and hardware sectors, the hospitality sectors are the worst sufferers of the pandemic where MBA candidates are prone to work in pre-Covid situations.

The hard truth is there are fewer jobs and more qualified candidates. This scenario is probably going to continue till 2021. Due to this, future of MBA in India post Covid is literally undefined.

Actually, the domestic and international economies get highly affected due to Covid-19 and this pandemic taught the citizens and the companies to compromise and this makes the job market worse.

What do the Recruiters say?

The recruiters too agree that they have a limited number of jobs while there is a huge number of qualified MBAs. The survey found 6 out of 10 recruiters with low confidence regarding their future plans. This can be a reason behind the global economy.

Approximately, there will be only 20 vacant positions in 2 upcoming years where the number of MBA applicants will be nearly 93.

35% of the recruiters believed that the number of leaders in their organizations will decrease. For this, 14% of the recruiters will recruit more leaders. As it is seen, the requirement for MBA candidates for the higher position will not remarkably increase in the post-Covid times.

According to the Association of MBAs (AMBA) and Business Graduates Association (BGA) research, the country where the applicants completed their MBA will not matter for 31% of employers. This will aid candidates who have Visa restrictions.

68% of employers found MBA candidates more suitable for the job and 80% strongly agree that MBA candidates have the relevant skills the recruiters look for. Undoubtedly, MBA is an advantage to get a job now as well as in the future. The job market will be more competitive in post-Covid times, therefore, the candidates need to focus more on their study for GMAT and secure a higher GMAT score.

So, there is a ray of hope for the future of MBA after Covid in India. Actually, competitiveness was a part of the job market, but due to Covid-19, the competition will be explicit.

To conclude, the MBA candidates will struggle to get placed in 2021 as Covid-19 affects the job market of MBAs greatly. But there will be chances of getting placed with a good GMAT preparation and MBA from top universities.