People who work at business schools are concerned about what will happen to application volume this year. Although we can't predict exactly what your school will experience, we can give you a better understanding of recent trends and the many factors that affect this important market maker.
We typically provide news briefs in Deans Digest, but the topic of application volume requires a more in-depth exploration. Therefore, we offer two levels of information on this story:
We hope you will read the PDF and share it with colleagues and staff. We suggest it as a resource for preparing for media interviews and other public discussions about application volume and interest in business school.
"Where Have All the Applicants Gone?
[outline version]
Burning Questions for 2004
- Why has there been a change in the outlook at business schools?
- Why was 2002 a banner year for applications and GMAT® test taking, and why have application volume and test-taking volume fallen since then?
- What can schools expect in the coming year and beyond?
- What GMAC® offerings can help schools address their business problems and meet their objectives, even in the face of a challenging market?
Revisiting 2001–02
- application cycle 2001–02 marked by high application volume, with highest volume early in the year
- more GMAT® tests taken in 2002 than ever before (249,632)
- individual applicants applied to more schools in 2002 than in 2001
- U.S. economy started downward trend; many who had been considering business school responded to lower opportunity costs by applying
- MBA graduating class of 2001 felt first effects of shrinking job market
2002–03: What Goes Up Must Come Down
- application volume down in 2002–03 cycle, compared with 2001–02
- quality of applicants remained consistent or improved
- GMAT® test-taking volume declined, with biggest decline outside United States
- international application volume down in United States but up elsewhere
Why the Decline in Application Volume?
- responding to weak economy and job market, applicants do more research, apply to fewer schools
- prolonged economic weakness makes it increasingly difficult and financially undesirable for people to go to graduate school
- worries about placement success might deter prospective applicants
- graduating class of 2002 faced one of the most difficult job markets in recent history upon graduation, were less satisfied than other classes with jobs they accepted
- the business school–aged population has declined in some world regions (North America and Western Europe)
What’s Likely to Happen in 2004 and Beyond?
- anecdotally, application volume in decline; will know more in March when results of the preliminary Application Trends Survey are tabulated (final Application Trends Survey results will be available in July)
- GMAT volume fell in January 2004, particularly outside the United States
- number of jobs in United States grew in January 2004, but most jobs gained through 2012 will be in nonprofessional service industries; jobs lost in United States could mean some jobs gained in countries where skilled labor is less costly
- no evidence linking decline in application volume to decline in application quality; some evidence to the contrary
- admissions selectivity may not be threatened by application volume decreases; applicants are self-selecting
- no evidence that yield will be negatively affected by smaller applicant pool, especially if applicants are more selective than in years past; waitlist management could affect yield
- GMAC® will continue to provide information, products, and services to help schools (and prospective applicants) navigate a challenging market: CareerLeader®, Applicant Finder, GMASS®, Recruiting Calendar, MBA Pathfinder®, etc., all described in School Services section of www.gmac.com (www.gmac.com/gmac/schoolservices/) under the subheadings Preparing Prospective MBAs and Recruiting Tools
Click to access the PDF of full-length article "Where Have All the Applicants Gone?"
(.04 MB)
GMAC®, GMASS®, GMAT®, Graduate Management Admission Council®, and MBA Pathfinder® are trademarks of the Graduate Management Admission Council®. All rights reserved.
CareerLeader is a registered trademark of Peregrine Partners.
