MBA enrollment trends in recession and boom economies
MBA enrollment trends in recession and boom economies
When the economy was robust in the early 2000s, enrollments in Master of Business Administration graduate degree programs remained steady, but certainly not saturated. Once the economy slumped, enrollments in MBA programs dramatically increased. Undergraduates with freshly signed degrees suddenly faced a flooded job market, and were competing for entry-level jobs against dislocated workers with higher education coupled with decades of experience. Additionally, dislocated workers desiring advanced degrees entered MBA programs in preparation for an economic turnaround. MBA enrollment trends in recession and boom economies reveal lighter enrollment numbers when the economy is thriving and people are comfortable with their jobs. According to Meinhardt (2009), during a recession when the economy dives, people often flock to business schools.
MBA trends in history
Enrollment statistics of students seeking MBA degrees has grown remarkably in the last 50 years. In 1960, there were 5,000 MBA graduates and 100,000 by the year 2000. Applications are continuing to increase as the economy struggles and dislocated workers, new graduates and even employed individuals seek flexible learning options to expand their knowledge and maintain career security. According to Flynn and Quinn (2010), the MBA is the most common graduate degree, held by 38.3% of top CEOs in Fortune 500 companies.
MBA graduates were still steadily recruited in 2008, but according to Gardner (2010), in November 2008, employers quickly adjusted their hiring objectives when the bottom fell out of the economy. Suddenly, large organizations with over 4,000 employers who frequently hired over a hundred MBA graduates every year, hired fewer than 70. Gardner revealed that in 2009, the average number of new-hires per company fell to 26 individuals, the lowest average of "college hiring in several decades."
Current MBA trend
Low hiring levels continued in 2010, though if the economy continues to improve in 2011, organizations' hiring trends of MBA graduates are expected to increase. Consequently, MBA enrollments continue to grow as people realize a higher degree offers more value in a competitive job market. According to the Bureau of Labor Statistics (2010), people who pursue higher education not only receive higher wages, but they are also less likely to become unemployed.
Online MBA program trends
As undergraduates and non-traditional students apply to MBA programs, there has been a growing demand for online degree programs. Since MBA programs often require work experience as part of the application process, applicants can maintain their job while attending part-time programs online. These programs are offering core MBA coursework in finance, business law, organizational leadership, economics, marketing and strategic planning. However, most programs also offer specialized focus in areas such as accounting, energy, global, human resources or health care management, marketing and even project and technology management.
With high unemployment rates and fuel costs for displaced workers, online education is a valuable option. For those currently employed, online courses offer scheduling flexibility and fewer time restraints. Students participating in online programs can concentrate on their marketability without committing themselves to hours in a classroom, parking fees and potential daycare costs.
As the economy slowly recovers, even with an increase in enrollments, now is the time to pursue an MBA degree. Then, as organizations begin seeing more profits in the next few years, graduates can emerge from a program with knowledge of business trends, leadership and advanced business competencies.
References:
Flynn, P.M., & Quinn, M.A. (2010). Economics: Good choice of major for future CEOs. American Economist, 54(1), 58-65.
Garnder, P. (2010). Job outlook for the class of 2010. Black Collegian, 40(2), 43-58.
Hayes, D. (2010). College on demand. Diverse Issues in Higher Education, 27(3), 17-30.
