A new report reveals a significant increase in student demand for MBA degrees. The number of total applications to U.S. MBA programs surged by 11% between 2023 and 2024, following two years of declines. The Graduate Management Admissions Council (GMAC) released the survey showing this uptick.
Full-time MBA programs experienced the most growth in the past decade, with 80% of two-year programs worldwide seeing application increases. Additionally, two-thirds of flexible and online MBA programs saw application boosts globally.
Historically, MBA application trends have been counter-cyclical to the U.S. economy, meaning that during economic downturns, more individuals seek graduate business education to enhance their skills when job market risks are lower.
The rise in MBA applications is attributed to a “vicious cycle,” with economic uncertainty prompting unemployed individuals to apply for programs and having more success in gaining admission. This increased competition leads other applicants to apply to more schools, thereby increasing the overall number of applications.
Pepperdine University (Graziadio) saw nearly a 25% growth in application volume over the last two cycles, attributed to a cooling labor market and the rise of AI across industries.
GMAC President Joy Jones credits global business schools for innovating with new technologies and delivery methods to meet the evolving needs of students and future employers.
While top business schools saw application growth, it does not necessarily mean more seats are available. Harvard Business School, for example, saw an over 8% increase in applications to the class of 2026 but decreased its class size year over year.
MBA applicants are breaking the mold and seeking flexibility in programs. Two-thirds of online and flexible MBA programs saw application increases in 2024, while applications from first-generation students and women notably grew.
Some schools, like Northwestern University (Kellogg), have achieved gender parity in their MBA programs, reflecting the increased focus on diversity and inclusion in business education.
While traditional MBA topics remain important, there is a growing interest in learning about AI, data analytics, and sustainability in the evolving business landscape.
Overall, the surge in MBA applications reflects a combination of economic factors, evolving industry demands, and the adaptability of business schools in meeting the changing needs of students and employers.