While the MBA has faced several challenges in recent years, all signs seem to be pointing to a full recovery. For the uninitiated, the 2001-02 admissions cycle was the high-water mark for applicant volume at most leading full-time programs. Shortly thereafter, admissions volume plummeted some 30% across the top schools, as the programs faced a weakened economy (post-dot.com boom) as well as new challenges for recruiting international students (visas were initially hard to come by in the wake of 9/11). In addition to these challenges, some speculated that business scandals (Enron, Worldcom and the like) tarnished the degree, further diminishing applicant volume.
Despite the gloomy picture, last year’s admissions season (2004-05) was the first in several years to suggest a stabilizing trend – with admissions volume remaining constant at many full-time programs (and even growing slightly at a few). It would now appear that the leading programs have turned a corner by building on last year’s positive signs. Over the last six months, this blog has documented increases in GMAT test-taker volume, higher admissions volume at leading programs like Tuck and Chicago and countless stories in the press about an increasingly robust employment scene for MBA graduates. Along those lines, we’d like to highlight two recent articles of note:
1) The Daily Pennsylvanian reports that graduate admissions volume is up this year – with life sciences and business leading the way. According to the article, Wharton has seen an increase of 12.2% in international applicant volume this year. Interestingly enough, one of the key weaknesses in admissions volume over the last few years has been a decreased number of applications from abroad. If this number is creeping up again, Wharton should expect very healthy admissions volume going forward.
2) CNN has just reported that job prospects are increasingly promising for MBA graduates. According to a recent GMAC survey that is cited in the article, employer sentiment is as high as it has been since 2002. The article goes on to report that 2006 graduates should see continued increases in starting salaries and bonuses. Typically, these types of articles are a leading indicator of increased application volume (since prospective applicants read the articles and decide to take the plunge).
While the verdict will be clearer once the final admissions volume stats are released by the schools this year, it certainly seems that interest in the MBA (on the part of both applicants and employers) is heating up once again.
