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Last Updated on October 25, 2024
Every year, the Graduate Management Admissions Council (GMAC) publishes MBA application trends across hundreds of business programs. This report helps us understand the annual MBA application volume, among other trends. It also tells us about candidate demographics, preferences, and expectations across top MBA programs.
More than 500 graduate business schools responded to the most recent survey, which found that MBA application numbers declined by 5% in 2023. This decline may lead candidates to believe that the demand for MBA applications has softened and that MBA acceptance rates have increased. However, it’s important to dig deeper into the details to get a clear picture of what’s really happening with MBA enrollment trends.
So, in this article, we’ll explore the latest application trends. We’ll also discuss what’s driving the MBA application decline and what the takeaways are for applicants.
Here are the topics we’ll cover:
- What Are the Factors Causing a 5% Decline in MBA Applications?
- How Have MBA Application Trends Changed in the Last 5 Years?
- What Demographic Shifts Are Seen in Recent MBA Applicants?
- How MBA Application Trends Have Affected Programming
- Key Takeaways
- Frequently Asked Questions (FAQ)
- Will there be an increase in MBA applications in 2024?
- How should I time my MBA application?
- Should I Apply to Fewer Competitive Programs to Improve my Chances of Admission?
- How Do Changes in Application Requirements Impact MBA Program Competitiveness?
- Will it be easier to gain admission to a top MBA program in 2024?
- What’s Next?
Let’s first take a look at the factors that are causing a decline in MBA applications.
What Are the Factors Causing a 5% Decline in MBA Applications?
GMAC’s Application Trends Survey shows that applications across graduate business programs declined in 2023 from what they were in 2022.
According to GMAC, many U.S. full-time, two-year MBA programs reported decreases in applications following the pandemic surge, although “they rebounded somewhat in 2023.”
Some of the factors causing declines in applications to “traditional” full-time programs included changing expectations among business school candidates. For example, candidates want more flexibility in their schedules and how they attend school — part-time, online, hybrid, etc.
KEY FACT:
Many U.S. full-time, two-year MBA programs reported decreases in applications in 2023, in part due to a desire among applicants for more flexibility in how they attend school.
Nevertheless, not all institutions saw a drop in applications. In fact, many programs reported growth in MBA applications. Let’s take a look at which ones.
Which MBA Programs Saw Increases in Applications?
GMAC’s survey revealed that two types of programs were likely to see more applications. The first group was comprised of schools that were moderately selective, with acceptance rates ranging from 43% to 65%. The second group included schools that offer flexible programs, including hybrid, online, and evening program formats. Many of the competitive two-year, full-time MBA programs in the U.S. reported growth in applications. Also, 65% of U.S. full-time, one-year MBA programs reported growth. More than half of programs reported growth since the pandemic boost in 2020.
KEY FACT:
Moderately selective programs and schools offering flexible programs were likely to see more applications.
Next, let’s examine regional trends in MBA applications.
How Did the MBA Application Volume Vary Across the U.S., Europe, and Asia?
As we discussed, more than half of U.S. programs saw increases in MBA applications. However, programs in Europe, Asia, and the Pacific Islands mostly reported declines in applications. Non-U.S. programs reported that the declines in applications for 2023 were due to fewer applications across two key groups: international candidates in Europe, and domestic applicants in Asia.
The decline in MBA applications for programs in Europe, Asia, and the Pacific Islands is a years-long trend. GMAC reports that most European programs have seen declining applications since 2020. In 2023, these programs saw a 13% drop among international applications. In fact, 55% of programs in Europe reported declines in applications. Programs in Asia and the Pacific Islands experienced two years of application declines. Additionally, there was an 8% drop among domestic candidates in 2023.
KEY FACT:
Declines in 2023 applications to non-U.S. programs were due to fewer international candidates in Europe and domestic applicants in Asia.
Let’s now discuss what MBA application trends mean for your business school candidacy.
What Trends in MBA Application Volume Mean for Your Candidacy
Has it become easier to get into an MBA program? GMAC’s summary reported that most programs are attracting larger classes of equally qualified candidates. Therefore, if you’re applying to the most competitive full-time MBA programs in the U.S., you’ll likely see the same level or an increased level of competition. Flexible programs, including hybrid and evening formats, will be more competitive.
If you’re based in the U.S. and applying internationally for an MBA, European programs may be more appealing. Given the decline in international applicants, gaining acceptance to some European MBA programs may be less competitive. Similarly, if you’re based in Asia or the Pacific Islands and are targeting MBA programs in the region, application declines might mean that the admissions process is less competitive.
KEY FACT:
Gaining acceptance to some European MBA programs may be less competitive due to a decline in international applicants.
Next, let’s examine how the total number of business school applications has changed over the last 5 years.
How Have MBA Application Trends Changed in the Last 5 Years?
GMAC recently collected data on year-to-year business school application trends. Check out the graph below.
Year-to-Year Variation in Business School Applications: 2019-2023
At first, we might assume that MBA programs are in trouble, but this isn’t true across all programs. For example, top U.S. full-time programs saw high numbers of applications for the class of 2025:
- Harvard: 8,149
- Wharton: 6,194
- Stanford: 6,190
As in prior years, each of these programs was highly selective. It’s likely these programs are among the U.S. full-time programs that reported increases in applications in 2023.
KEY FACT:
While the total number of MBA applications decreased in 2023, not all programs saw decreases.
How Many People Apply for an MBA Per Year?
There’s no comprehensive database on MBA admissions stats, including how many MBA applications are submitted. However, GMAC suggests that about 250,000 students are pursuing MBAs globally, with more than 155,000 at full-time programs in the U.S.
Let’s now discuss recent demographic shifts among MBA applicants.
What Demographic Shifts Are Seen in Recent MBA Applicants?
GMAC’s survey data revealed demographic shifts among women, underrepresented groups, and first-generation candidates.
The survey data showed stagnant growth among women in MBA programs. GMAC reports that “despite closing gender gaps in other post-graduate education, like law school or medical school, the share of women applying to business school has remained broadly consistent for the past decade.” In 2023, 40% of applicants to business schools were women.
The share of women applying to business school has remained broadly consistent for the past decade.
This trend is similar across the U.S., Europe, Asia, the Pacific Islands, and Canada. In the past year, more programs in Europe reported fewer applications from women. Programs in Asia and the Pacific Islands also reported decreases in applications from women.
In addition, the number of underrepresented MBA candidates has grown but trails population trends. GMAC’s survey data revealed an increase in applications from underrepresented populations when compared to pre-pandemic numbers.
“More than half of U.S. full-time 2-year, part-time, and executive MBA programs reported growth in applications from U.S. underrepresented candidates in 2023,” GMAC reports. “Notably, this does not include the online MBA.”
Additionally, GMAT reports opportunity for growth among first-generation candidates. According to the survey, first-generation candidates make up 31% of the prospect pipeline. However, this group is just 13% of applicants.
KEY FACT:
The share of women applying to business school has stagnated, but applications from underrepresented and first-generation candidates have increased.
Next, let’s examine how MBA programs have reacted to application trends.
How MBA Application Trends Have Affected Programming
MBA admissions teams monitor application trends and job placement rates in order to understand what applicants want. Accordingly, MBA programs have updated their offerings to align with what’s happening in the economy and ensure that their programs are relevant.
For example, GMAC reports that some programs are adding or removing degrees focused on real estate. This is, no doubt, in response to the cooling commercial real estate market and current interest rates. Meanwhile, other programs are expanding their master’s offerings to include finance, accounting, and supply chain management. Additionally, business schools are adding programs in new areas, such as business analytics. As the job market grows, programs match their offerings to drive MBA job placements.
Some programs are launching more flexible MBA programs,like online MBA programs or part-time formats. These offerings attract a larger target market. Finally, some programs are taking a long-term perspective on what they offer – and to whom. New certificates, concentrations, executive education, and micro-credentials support non-traditional candidates and ongoing education for alums.
KEY FACT:
MBA admissions teams monitor application trends and job placement rates in order to understand what applicants want.
Key Takeaways
Some data makes headlines but doesn’t always tell the full story. It’s easy to conclude that the MBA degree has lost its relevance and popularity. However, the MBA is still the most popular graduate degree. Remember, MBA application trends from last year don’t reveal information about:
- application trends at your target MBA programs
- the selectivity of your target MBA programs
- application trends for 2024
We’ll be interested to see how MBA applications change in 2024. In addition, we will monitor which MBA programs attract more applications and whether the demographic trends are reinforced.
Frequently Asked Questions (FAQ)
Will there be an increase in MBA applications in 2024?
Early indications are showing growth in applications in 2024. In fact, the Wall Street Journal, which references GMAC’s more recent survey, reports that applications to MBA programs grew 12%. Stay tuned for more in-depth coverage of this trend in a future post.
How should I time my MBA application?
We don’t recommend that you try to predict MBA application trends. Application trends are unique to each MBA program.
Instead, we recommend that you apply for MBA programs when it makes the most sense for you and your career. Carefully assess your career goals, align them with appropriate programs, and diversify your odds of success among a handful of choices. If you apply to reach, competitive, and safer choices, you’re likely to gain admission to one of your target MBA programs.
Should I Apply to Fewer Competitive Programs to Improve my Chances of Admission?
Regardless of what the MBA application trends are, we recommend that you apply to a mix of programs. Of course, we do not recommend that you spend time or resources applying to programs that you’re not interested in. Instead, carefully evaluate the statistics of various programs, along with their offerings, and select programs that serve your goals.
How Do Changes in Application Requirements Impact MBA Program Competitiveness?
The answer to this question varies from program to program. Changes in application requirements can affect the competitiveness of a program. For example, several top programs change their application essay prompts annually. However, these types of changes are unpredictable in terms of how they impact a program’s competitiveness. Additionally, MBA programs may change which standardized tests they accept. This could potentially make the program more or less competitive from an admissions perspective.
Will it be easier to gain admission to a top MBA program in 2024?
The short answer is: probably not. Early returns show that application volume has grown. Applying for admission to a top MBA program is a competitive process, and we don’t anticipate applying in 2024 to be any easier than in recent prior years.
What’s Next?
If you’re serious about putting your best foot forward in your MBA applications, partner with one of Target Test Prep’s MBA admissions consultants. Request a free consultation with one of our expert admissions consultants to discuss your goals and learn how we can help.
