I work for a business psychology company that uses the MBTI (amongst other psychometric instruments). Prior to joining, I thought the MBTI was total hooey, being based on a third party’s liberal interpretation of attributes that Jung pulled out of his ass. Which it is. With character and personality descriptions that could fit anyone, and as much validity as a horoscope.
However. I took the test and retook a different one, with the same outcome. I did the Step I analysis and the Step II, which also gave the same result. Then I participated in a team breakdown with my colleagues, where a psychologist who had never met us before, looked at our types, then stood up and explained specific things about potential pitfalls of interaction between group members with different types - before any of us had even contributed our opinion.
Things like one coworker is likely to get intimidated when required to think creatively without a decent preparation time (completely true and she almost cried with relief when this was exposed). Things like I (an extreme ENTP outlier) am ferociously creative, able to be extraordinarily productive on a tight deadline, and am immensely adaptable - but my boss is likely to be very disappointed if she ever asks me to come up with a detailed schedule, or to work to a predefined plan (also completely true).
And she told us much more about each other, all of which was absolutely spot-on. The entire process was really useful to help us understand each other: since that third-party revelation of our working preferences, we’ve all got along much better and a great deal of tension in our team has been dissipated.
So I conclude that it’s way more impressive than horoscopes, and much more perceptive than “cold reading” tricks could possibly achieve. It might only be partially correct, and it might be correct for the wrong reasons, but there’s definitely something in it.
I am also convinced that the Forer effect doesn’t apply here; furthermore, the tests are so designed that it is extremely difficult to fool them, even by people who know them inside out: they contain “checksum” loading throughout.
Examples of the tests being used unethically (prescribing careers and pedefining personality types for jobs) are merely companies’ misuse of the products, which are not designed for such applications.