The Headlines
MBA demand rebounds
Applications to MBA programmes are soaring again, ending a two-year slump and breathing new life into a degree that some had considered past its peak.
By Seb Murray
According to recent data from the Graduate Management Admission Council (GMAC), applications to all business masters programmes including MBAs rose by 12 percent in 2024 compared to 2023, marking a clear reversal from the post-pandemic decline.
This recovery is being driven by full-time MBA programmes typically offered at top US schools like Wharton, Harvard and Stanford, with 80 percent of two-year MBA programmes and 64 percent of one-year MBA courses reporting application growth.
The resurgence spans internationally, too, with institutions like Spain’s IESE Business School reaching record enrolment numbers this year.
One major factor fuelling this demand is the adaptability of business schools to meet the evolving needs of students and employers.
New technological tools, flexible formats and innovative delivery methods have made MBA programmes more accessible and, some say, relevant.
GMAC chief executive Joy Jones notes that schools’ “efforts to continue innovating with new technologies, new delivery tactics and new ways of operating… satisfy the latest interests and needs of students and their future employers”.
“The renewed surge in MBA applications reflects the changing workforce landscape"
Increased flexibility and digital learning options are drawing more applicants, particularly for MBA programmes that balance in-person and online learning.
Some students prefer the in-person experience but appreciate the option to complete parts of the programme remotely or on flexible schedules. Others, often when balancing family or work commitments, find that hybrid and online formats provide the best of both worlds, allowing them to earn a degree without uprooting their lives.
This aligns with what Lindsay Loyd, Executive Director for MBA admissions at New York University’s Stern School of Business, has observed at her institution. “Applications for NYU Stern’s full-time MBA class of 2026 were up 48 percent, the highest in 15 years,” she explains.
Stern’s New York City location offers a “living laboratory” for students, with hands-on learning projects and access to industry leaders across sectors. Loyd also attributes Stern’s popularity to its tailored options, which allow students to choose pathways in areas like technology, entrepreneurship, luxury and retail.
While full-time MBAs are making a strong comeback, specialised masters programmes are also on the rise, now accounting for half of all enrolments, according to figures from the Association to Advance Collegiate Schools of Business (AACSB).
Specialised degrees in areas like accounting, finance and management have attracted students looking to hone specific skills, particularly as job markets grow more competitive.
According to the latest report from AACSB, overall applications to AACSB-accredited programmes grew nearly 13 percent over the past six years.
AACSB president Lily Bi says: “Enrolment in graduate business programmes has not been immune to the complex changes in market forces in recent years. While our latest report reveals some of those fluctuations, the overall picture of master’s programmes… is one of strength and adaptability.”
Demand for specialised programs continues to increase. And, by offering these alternatives, schools are attracting applicants who may not have considered a traditional MBA but see the value in focused business education.
Some students are looking for specialised programmes in fields like data science, artificial intelligence and digital transformation, which have become integral to modern business strategies.
These niche programmes are often designed in collaboration with industry leaders and tailored to the needs of high-growth sectors, making them attractive options for students who want to deepen their expertise without committing to a traditional MBA structure.
Another significant trend in this year’s data from across sources is the sharp increase in applications from women. GMAC reports that 55 percent of business master’s programmes saw growth in female applicants – a hopeful sign for the long-term goal of narrowing the gender gap in business leadership in the corporate world.
Elissa Sangster, CEO of Forté Foundation, a nonprofit that supports women in business, expressed her enthusiasm about this shift. “As more women invest in themselves through business education, the healthier the pipeline becomes for business leadership, and the more likely we are to close the gender gap,” she says.
At schools like Duke University’s Fuqua School of Business, which reached 51 percent female MBA enrollment this fall, the momentum is evident. MBA programmes are taking note, expanding resources and support systems to ensure that women continue to feel empowered to pursue and succeed in MBA programmes.
Progress is being made. According to a new report from Forté, women’s enrolment in full-time MBA courses has hit a new milestone, surpassing 6,000 for the first time. Eight schools reached full gender parity this year (up from none in 2020), 19 schools now enrol at least 45 percent women (up from 8 in 2020) and 36 schools have 40 percent or more women in their MBA programs (up from 22 in 2020).
This matters because an MBA can be a powerful tool for women, boosting earning potential, leadership prospects and influence. Forté’s research highlights this impact, showing that 41 percent of the 37 women CEOs in the S&P 500 index of US public corporations hold an MBA or a similar advanced business degree.
As Sangster notes: “I believe in the value of business education and the doors it opens for people, particularly women.”
Demand for MBAs is up across the US, Asia and Europe, although the UK saw a decline, likely due to economic and political uncertainties.
Results from the Chartered Association of Business Schools’ annual membership survey show that 75 percent of UK deans reported a drop in international student enrolments in 2024 compared to last year. Additionally, 36 percent of schools noted a decline in domestic enrolments.
“With declining student numbers compounding a multitude of financial challenges facing universities, we encourage the government to consider options that enable carefully managed migration and a vibrant higher-education sector,” says Stewart Robinson, Chair of CABS and Dean of Newcastle University Business School. For example, he suggests an exemption from this year’s ban on visas for dependents of most graduate students.
François Ortalo-Magné, Executive Dean at London Business School, sees this as part of a broader shift. “High-quality educational offerings are increasing in major markets in Asia, Africa and Latin America, giving candidates historically inclined to studying abroad more options and opportunities at home,” he explains.
Ortalo-Magné stresses the importance of business schools fostering international mobility and building multicultural cohorts, given the immense value of diverse perspectives in classrooms and, later, boardrooms.
To that end, business schools are increasingly establishing partnerships with international institutions to encourage cross-border collaboration and offer dual-degree programs that cater to students interested in global opportunities, without requiring them to travel as extensively.
While demand for MBAs is up, part of the surge may also be a correction following the unusually low application volumes of the past two years, as job markets and compensation remained strong through 2021 and 2022.
US-based admissions consultant Stacy Blackman sees this as a reaction to job market turbulence that began in 2022 with mass layoffs, particularly in tech.
“In addition to layoffs, we’ve seen a hiring slump by major employers, so young professionals and recent college graduates have turned to grad school as a safety net,” she explains.
This pattern is part of a longstanding countercyclical trend: as the economy cools, interest in further education typically rises, especially for MBAs.
US schools are responding to the increased interest by adapting their admissions processes and recruiting second-year MBA students to assist with interviews to manage the increased application load, Blackman notes.
But the trend is a global one. At IESE Business School in Spain, rising application numbers have led to an expansion of the full-time MBA programme.
“The renewed surge in MBA applications reflects the changing workforce landscape,” says Paula Amorim, IESE’s MBA Admissions Director. “Many professionals are eager to enhance their skills in leadership, digital transformation and sustainability.”
This year, IESE added a sixth section to its full-time MBA, increasing its cohort by 70 students to a total of 420, and reported higher GMAT admissions test scores and an increase in female applicants.
In addition to scaling up enrolment, IESE has focused on expanding student support services, including career advising, internship placement and alumni networking opportunities.
IESE has also invested in initiatives aimed at preparing students for a changing global business environment. The school recently established the Institute for Sustainability Leadership (ISL) to integrate sustainability into business education, for instance.
But overall, the current surge in applications demonstrates that the MBA degree is far from obsolete. In fact, the numbers suggest a renewed relevance, as business schools continue to adapt and align their offerings with the modern workforce’s needs.
As Jones from GMAC puts it: “This year’s record growth in applications hints at a pendulum swing toward graduate business education.”
