In a notable turnaround, applications to graduate business school programmes increased by 12% from 2023 to 2024, according to an annual survey by the Graduate Management Admission Council (GMAC). This rise marks a significant departure from the declines observed in the previous two years, following a brief boost during the pandemic in 2020-2021.
The uptick in applications appears to correlate with business programmes providing more financial assistance to incoming students. GMAC’s perennial survey highlights cost as a persistent barrier to pursuing advanced management degrees, making the increased support a crucial factor in the renewed interest.
A detailed analysis reveals that the surge in applications is largely attributed to a revived enthusiasm for full-time, in-person offerings. Almost 60% of these programmes reported growth in applications, with full-time two-year and one-year MBA programmes witnessing their highest application rates in a decade—80% and 64%, respectively. Additionally, approximately 75% of accounting and management master’s programmes noted an increase in applications. Interestingly, flexibility in study options also gained traction, with 58% of online programmes and 52% of hybrid programmes reporting growth in applications.
Joy Jones, CEO of GMAC, commented, “This year’s record growth in applications hints at a pendulum swing toward graduate business education, especially staple programmes like full-time MBAs and accounting and management master’s degrees.” She emphasised that this trend could be indicative of a countercyclical relationship between interest in graduate business education and economic strength. Jones also credited business schools for their innovative approaches, including new technologies and delivery methods that align with student and employer needs.
The rise in total applications was largely driven by an increase in domestic applications. Most MBA programmes benefited from this growth, with all surveyed business master’s programmes experiencing a remarkable 30% increase in domestic applications. However, certain programmes reliant on international talent, particularly business analytics, saw declines in international applications.
Geographically, the United States continues to be a preferred destination for international students. A recent global study by GMAC indicated that most prospective students are unfazed by the upcoming presidential election, unlike in previous cycles. Meanwhile, domestic applications also spurred demand for graduate business education in the U.S., Asia, and Europe, although the UK experienced a stark 45% drop in domestic applications, alongside a 12-point decrease in international applications.
François Ortalo-Magné, Professor of Management Practice at London Business School and a GMAC board member, highlighted the growing quality of educational offerings in Asia, Africa, and Latin America, providing local candidates with more options. He stressed the importance of encouraging regional and international mobility to cultivate diverse and multicultural cohorts in business schools.
Another encouraging trend is the rise in applications from women candidates. Historically, women’s applications have hovered around 40%, but this year saw a slight increase to 42%. Notably, 55% of programmes reported growth in applications from women, reflecting a 10-percentage point increase from the previous year. Elissa Sangster, CEO of Forté, expressed her optimism regarding this trend, stating that the increasing investment in business education among women contributes to a healthier leadership pipeline and a potential reduction in the gender gap. To learn more about our work, please visit www.gmac.com
