From Layoff to Leadership: Why Business School Makes Sense in Today's Job Market

With approximately 30,000 federal civil service workers laid off and more than 26,000 tech industry professionals losing their jobs since January 2025, many talented individuals are finding themselves at a crossroads in their careers.

While a layoff can feel devastating and knock an individual’s self-esteem, it can also serve as a good time to take stock of your career and build a pathway to transformative growth.

One option is to upskill. For many early- to mid-career professionals, taking time out to obtain an MBA or specialized business master's degree might be a great strategic move if you’ve been recently impacted.

Melody Jones, co-founder of Vantage Point MBA Admissions Consulting, explains how business school can turn layoffs into an opportunity for growth and a new journey:

“Business school can be an incredible next step after a layoff. For so many of our clients [applicants], while the layoff experience was tough, it ultimately became a catalyst for self-reflection, helping them realize they wanted something different or bigger than their previous roles.”

David White of Menlo Coaching explains the variety of roles he has seen people pivot to and from with the help of business school. 

“Some of the most common big transitions in US full-time MBA programs are from the military to a private sector career, or from teaching (especially programs like Teach for America) to business, and it would be equally valid to use the MBA to transition from a career in government to one in the private sector.”

How to Use a Layoff as an Asset in Your MBA application

If you’re interested in upskilling and taking that next step but are concerned about how a layoff will look on your application, don’t be. Melody explains that a layoff can actually be an asset in your application. School’s care more about how you’ve responded to a setback than the setback itself.  

“Use this as an opportunity to reflect on your career trajectory, highlight the impact you made in your previous roles, and showcase the skills you’ve built that will serve you in the future. Admissions committees appreciate resilience, adaptability, and self-awareness, and demonstrating those qualities will make your application even stronger.”

However, if you’re looking to pivot careers, to help your application, David does advise having some experience within that industry.

“In most cases, if you have been laid off from your job and want to enroll in an MBA program, your first step is to secure a new job, or at least a pre-MBA internship in which you take on a short-term role in the industry where you hope to work post-MBA,” he explains.

While you may worry about investing in business school during a time of personal financial instability times, in recognition of the current challenges, some schools have in recent years opened up scholarships for laid-off workers, recognizing the value these professionals bring to the classroom.

For example, Johns Hopkins Carey Business School started providing up to $30,000 in scholarship funding to professionals who have been laid off, allowing them to pursue an MBA program.

Why Business School Makes Sense During Economic Uncertainty

Counter-cyclical Advantage

When the job market contracts, business school applications typically surge. The Graduate Management Admission Council (GMAC) reported an increase in applications last year, with in-person, full-time MBA applications increasing by 13% in 2024 . Business master’s application growth has been equally healthy, and enrollment has risen by around 13% over the past six years. Taking time out for management training isn't just about riding out the storm—it's strategic timing. You're investing in yourself during a period when opportunity costs are lower, and you'll likely graduate into an improving economy with enhanced credentials.

Build Recession-Proof Skills

Business master’s and MBAs have evolved to address modern challenges and therefore enrolling in a program will help keep you up-to-date with the latest skills and trends. Today's curricula emphasize digital transformation and data analytics, equipping students to navigate technological disruption. In the US, a STEM (science, technology, engineering and math) MBA is particularly attractive for international students, as it allows them to apply for the Optional Practical Training (OPT), a two-year extension to visas which, if granted, allows recipients to work in the US for up to three years after graduation.

During an MBA or business master’s, it’s impossible to overstate the value of the network you’ll build. Your classmates become lifelong connections across industries and regions. Access to faculty with deep industry connections and mentorship experience is also an advantage. Alumni networks actively support fellow graduates during tough times, and business school career and recruitment events provide direct access to companies still actively hiring. In uncertain job markets, these relationships can make the difference between prolonged unemployment and exciting new opportunities.

“Networking is one of the most beneficial aspects of the MBA experience, whether you’ve been laid off previously or not. Business school gives you direct access to a built-in network of classmates, alumni, and industry professionals who can open doors to new opportunities,” Melody explains.

A Natural Transition: From Tech or Government to Business School

For Tech Professionals:

A technical background is increasingly valuable in most business settings today, and many top business schools now offer specialized tech management tracks, STEM MBA degrees, or dual degrees that build upon your existing technical knowledge while adding crucial business acumen. For example, at Carnegie Mellon University’s Tepper School of Business, applicants with a computer science, engineering or similar background can opt for a Technology Strategy and Product Management MBA track.

To identify which skills you’re missing, start by reviewing job descriptions for roles similar to your target position. From there, look for any common skills mentioned across multiple job postings.

For Government Professionals:

If you have public sector experience, it’s likely you’ll be able to provide unique strategic perspectives that will make you a great fit for an MBA or Executive MBA class. Policy knowledge developed during a previous role will transfer well to the regulatory strategy and compliance coursework an MBA requires, while budgeting experience aligns perfectly with financial management classes. Other transferrable skills both into the business school class, and a career in the private sector afterwards, include stakeholder management skills and regulatory insight.

Financial Considerations During Career Transitions

Even if you secure a scholarship, business school is not cheap. But it’s worth considering that investing in your future careers is likely to lead to high returns. Around 77% of MBA grads reported to GMAC that the degree increased their earning power. Encouragingly, in the same survey, 74% said that graduate management education increased their job opportunities, and more than half changed career paths including industry or job function.

Choosing the Right Program for Your Situation

Business education isn't one-size-fits-all, especially during a time of career transition.

“[To find the right program for you], I always recommend starting with your goals first. Defining what you want to get out of your MBA and your post-MBA plans is critical to choosing a program that will maximize your chances of success,” Melody says.

While full-time MBA programs can offer comprehensive career reset opportunities if you’re seeking complete transformation, part-time and Executive MBAs allow flexibility while studying—and are ideal if you are juggling job applications, networking meetings, or consultancy work as you weigh up your next steps.

“A part-time MBA allows you to continue working while studying, making it a good option if you’re eager to get back into the workforce right away and then leverage the degree for career acceleration. However, if you’re looking to make a significant career pivot, a full-time MBA may be the better choice, as those programs provide dedicated recruiting resources and internship opportunities to facilitate a transition,” Melody says.

If you’re looking to fill specific knowledge gaps to enhance your professional profile, specialized master's degrees in fields such as Finance or Analytics provide focused expertise in shorter timeframes, while online programs offer maximum flexibility during uncertain times.

“Consider whether a one-year vs. two-year MBA aligns better with your timeline. Some one-year programs (such as INSEAD or Kellogg’s 1Y) offer an accelerated path but may not include an internship, which is crucial for career switchers,” Melody explains.

For targeted skill enhancement, certificate programs can provide specific expertise for particular roles without the full degree commitment.

If you're facing career uncertainty due to recent layoffs, consider these immediate actions:

• Take our quiz to discover if now is the right time for a career change.
• Research business programs that align with your career goals and circumstances.
• Connect with b-school admissions representatives about special considerations for displaced workers.
• Begin GMAT preparation to strengthen your application.
• Reach out to alumni from your target schools who made similar transitions.
• Attend virtual information sessions to learn more about your options.

Economic uncertainty doesn't have to derail your career trajectory. In fact, with strategic planning and investment in your skills and network, this challenging period could become the foundation for your greatest professional growth.

Good luck with your next steps.