Increased Demand for Business Education: 2024 Applications Rise Amid Economic Concerns

November 4, 2024 – Across the globe, total applications to graduate business school programs in 2024 increased an impressive 12 percent from 2023 to 2024. This is a sharp reversal from the previous two consecutive years of declines, which followed a small pandemic related boost in 2020- 2021, according to an annual survey released today by the Graduate Management Admission Council (GMAC). With cost consistently cited as a key barrier to an advanced management degree in GMAC’s perennial survey of prospective business school students, it is perhaps not surprising that this year’s upward-trending application volume coincides with business programs offering financial assistance to more members of their incoming classes in 2024.

A deeper dive into the data shows that the significant uptick in applications was mainly driven by renewed interest in full-time, in-person offerings, with nearly six out of 10 such programs reporting application growth. Full-time two-year and one-year MBA programs, for instance, saw the largest shares of schools reporting application growth in the past decade at 80 percent and 64 percent, respectively.

Nearly three-quarters of accounting and management master’s programs also reported application growth. Interestingly, despite the increased interest in studying in-person, those with more flexibility also seem to be in high demand with 58 percent of online programs and 52 percent of hybrid programs reporting application growth, so did roughly two-thirds of online and flexible MBA programs.

“This year’s record growth in applications hints at a pendulum swing toward graduate business education, especially staple programs like full-time MBAs and accounting and management master’s degrees,” said Joy Jones, CEO of GMAC. “While the phenomenon could give proof to the countercyclical trend long observed between interest in graduate business school and the strength of the economy, I would give much credit to global business schools and their tremendous efforts to continue innovating with new technologies, new delivery tactics, and new ways of operating that satisfy the latest interests and needs of students and their future employers.”

Shifts in domestic and international applications dictate the growth.

The increase in total applications can also be attributed to an outsized increase in domestic applications, which are made from candidates with the same country of citizenship as the program. Most MBA programs regardless of delivery format benefited from rising domestic applications compared to international ones. Similarly, all surveyed business master’s programs experienced a 30-percent increase in domestic applications, but dips in international applications to programs more reliant on international talent—like business analytics—seemed to have offset the growth.

Geographically, the United States remains a top study destination for international talent, with an overwhelming majority of prospective students signaling the upcoming presidential election will not adversely impact their study plans as in previous election cycles, according to a recent global study published by GMAC. At the same time, domestic applications also drove up demand for graduate business education in the U.S., Asia, and Europe—except for the United Kingdom, which witnessed a 45- percent drop in domestic applications and a 12-point dip in international applications.

“There is no doubt that 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.” said François Ortalo-Magné, Professor of Management Practice and Executive Dean (External Relations) at London Business School and a GMAC board member.

“In this context it is critical for business schools to encourage regional and international mobility and build diverse, multicultural cohorts on campus, knowing that it brings tremendous educational benefits in us classroom, future boardroom, and beyond.”

Rising applications from women candidates give hope to trends towards the right direction.

Women’s applications to graduate business programs have consistently hovered around 40 percent over the past 10 years. This year’s data shows some bright spots with a small shift upward to 42 percent. Also, 55 percent of programs reported growth in applications from women, a 10-percentage point jump from last year and the second-largest share of programs reporting increasing applications from women over the past decade—next only to the pandemic boom in 2020. Specifically, MBAs were most likely to see a surge of female applicants, with 70 percent of flex MBA and roughly two-thirds of full-time MBA programs experiencing such growth.

“I’m excited to see this kind of growth in applications from women. I believe in the value of business education and the doors it opens for people, particularly women. 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” said Elissa Sangster, CEO of Forté, a long-time GMAC partner organization aiming to build women leadership in business.