The current job market for finance graduates is challenging, with mergers and acquisitions at their lowest point in 20 years and initial public offerings showing mixed results. As a result, students this summer will find job opportunities scarce and inconsistent.
For those enrolled in master’s finance programs, the slowdown in investment banking has prompted many to explore options beyond traditional roles. Experts have noted a decline in hiring for advisory positions, making competition for jobs at major banks even fiercer.
Lee Thacker, a partner at Silvermine Partners, an executive search firm in London, offers a grim perspective. “Entry-level positions for graduates are surprisingly scarce,” he states. “[We’re] witnessing over 5,000 applications for each junior position we assist with.”
This oversupply highlights a significant reduction in graduate hiring, partly attributed to the rapid progress in artificial intelligence. “Why hire 100 graduates when a $300,000 license can accomplish the same tasks?” he emphasizes, suggesting that AI is a more cost-effective option than conventional analyst teams.
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Major banks have decreased early-career hiring due to a lull in deal-making activity. For example, Bank of America eliminated 150 junior investment banking positions earlier this year as part of its annual review, with many impacted employees reassigned within the company.
Additionally, EY, an accounting and professional services firm, has delayed start dates for new hires in its US strategy and deals division for a third consecutive year.
A recent report from Goldman Sachs revealed that the firm employs only 1 percent of the 875,000 applications it receives annually, underscoring the fierce competition for positions.
In contrast, some banks are maintaining their hiring practices. “We haven’t altered our early-career hiring strategy for finance graduates in M&A or capital markets,” asserts David Oram, campus recruitment partner for global markets at BNP Paribas. He highlights ongoing demand in relationship-focused roles within global banking and sales.
However, private equity firms are accelerating their recruitment efforts. Organizations like Apollo, KKR, and TPG are offering positions to undergraduates and recent grads with minimal full-time experience—often well before they officially enter the workforce.
This intensifying competition with Wall Street banks is leading some job seekers to reconsider their career plans.
At Skema Business School in France, students are increasingly diversifying their job searches, targeting private equity, risk management, and capital markets as deal-making slows and new opportunities arise outside traditional investment banking.
At Cambridge’s Judge Business School, which tailors its MiF for those with prior professional experience, investment banking remains the primary path for graduates.
Yet, Pedro Saffi, a financial economics professor, notes a geographical trend, with a growing number of graduates taking jobs outside the UK as domestic deal activity wanes.
This year, only 48 percent of graduates accepted roles with UK firms, down from 64 percent the previous year. “This suggests stronger demand in global financial centers and a slower capital market in the UK, where IPOs have significantly decreased,” says Saffi.
Placement rates remain robust, with nearly 90 percent of last year’s cohort finding employment within four months, but the hiring process has become more discriminating.
Similar caution is present in Hong Kong, the Asian financial center. Raymond Xiao, who oversees MSc career development at HKUST Business School, reports that front-office roles are limited, with employers becoming increasingly selective.
However, this doesn’t imply a complete lack of opportunity but a shift in focus. Xiao observes that there is consistent demand in private banking, wealth management, compliance, and risk roles. In this competitive landscape, these areas are increasingly regarded as viable entry points.
Mehmet Yasir Koca, now the Chief Financial Officer of Istanbul Airport and a former investment banker at UniCredit, leveraged his post-experience MiF from London Business School to prepare for leadership roles in corporations.
Quantitative trading and data-oriented positions now make up over 40 percent of job placements for the 2024 Sloan MiF graduates, reflecting an increasing demand from employers for technical expertise.
For Ludovica Righi, an analyst at JPMorgan in London and a graduate of HEC’s finance-focused master’s program, attending a prestigious school is seen as a gateway to opportunities.
