GMAC Report: Business programme applications increase by 12% amid economic uncertainty

NEW DELHI: According to the Graduate Management Admission Council (GMAC) survey, the total number of applications to graduate business school programmes in 2024 has rapidly increased to 12% from 2023 to 2024. This is a sharp reversal from previous years of declines, which was followed by a small pandemic-related boost in 2020-2021.

“With cost consistently cited as a key barrier to an advanced management degree in GMAC’s survey of prospective business school students, it is perhaps not surprising that this year’s upward-trending application volume coincides with business programmes offering financial assistance to more members of their incoming classes in 2024,” the GMAC report said.

As per the GMAC report, the rise in applications was mainly due to renewed interest in full-time, in-person offerings, with nearly six out of 10 such programmes reporting application growth.

Rise in MBA programme applications

Full-time two-year and one-year MBA programmes, saw the largest shares of schools, reporting application growth in the past decade at 80% and 64%, respectively. Moreover, the accounting and management master’s programmes reported growth of nearly three-quarters.

However, despite the increase in interest in studying in person, those with flexibility seem to be in high demand with 58% of online programmes and 52% of hybrid programmes reporting application growth, as did roughly two-thirds of online and flexible MBA programmes, the GMAC report said.

Joy Jones, the CEO of GMAC said: “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.”

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Growth in domestic and international applications

There’s an outsized increase in domestic applications, made from candidates with the same country of citizenship as the programme.

However, as per the report, most MBA programmes regardless of delivery format benefited from rising domestic applications compared to international ones.

Similarly, all business master’s programmes saw an increase of 30% in domestic applications but dips in international applications to programmes 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.

Rise in applications from women candidates

As per the GMAC report, women’s applications to graduate business programmes have consistently hovered around 40% over the past decade. This year’s data shows a small shift upward to 42%.

Also, 55% of programmes reported growth in applications from women, a 10% point jump from last year, and the second-largest share of programmes reported an increase in applications from women over the past decade—next only to the pandemic boom in 2020.

Specifically, MBA programmes saw a surge of female applicants, with 70% of flex MBA and roughly two-thirds of full-time MBA programmes experiencing growth, GMAC report adds.