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In the midst of the global economic downturn, alumni of graduate management programs gave their education high marks—and continued to make personal progress in their careers. The trends are reflected in data from GMAC surveys of alumni conducted in April and September, 2008. The results have been published in the 2009 Alumni Perspectives Survey.
The September survey was taken in a month in which the economy dominated the world news, with Fannie Mae and Freddic Mac placed in government conservatorship, Bank of America buying Merrill Lynch, Lehman Brothers filing for bankrupcy, and the US government bailing out AIG.
Nonetheless, the survey’s employment statistics suggested that investing in graduate business education yields impressive returns. Even though 47 percent of participating alumni categorized the global economy as weak—and 67 percent said their regional economy is frail—respondents’ average earnings continued to outpace inflation, and alumni unemployment rates were lower than national and regional rates.
In terms of compensation, for example, alumni who continued working post-graduation for the same employer received a 21 percent salary increase after completing their studies (median pre-degree salary US$60,000; median post-degree salary US$72,500). The median salary increase between pre-degree salary and salary six months after graduation was 53 percent for full-time MBA graduates and 29 percent for part-time MBA graduates. The median annual increase thereafter was 9 percent among full-time MBA graduates and 12 percent among part-time MBA graduates.
On the employment side, 94 percent of alumni were working. The unemployment rate among alumni was lower than area-wide rates in the United States and the European Union. Only one in five alumni reported concern about their job stability. The vast majority of alumni were satisfied with their current employer and their current job.
As evidence of continued belief in the value of business school, four out of five alumni from the class of 2008 who landed a new job after graduation indicated they could not have obtained that job without a graduate management degree. Nine out of 10 alumni indicated their education met or exceeded expectations.
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