The job market for new business school graduates remains difficult, but there are clear signs that employers are becoming increasingly confident about the economy
MCLEAN, VA--(Marketwire - May 13, 2010) - The job market for new business school graduates remains difficult, but there are clear signs that employers are becoming increasingly confident about the economy -- and more eager to hire -- according to newly released data from the Graduate Management Admission Council (GMAC).
The percentage of employers planning to hire newly minted MBAs is up this year compared with 2009, although the number of new hires per company is expected to decline slightly, GMAC researchers found in their annual survey of recruiters. Approximately 55 percent of respondents to the GMAC Corporate Recruiters Survey said they planned to hire new MBA graduates in 2010, reversing a sharp drop in 2009, when the comparable figure fell to 50 percent from 59 percent the year before. Graduates of other types of master's-level business programs also should see their prospects improve in 2010, the survey data suggest.
"Employers have spoken clearly. The intrinsic value they place on the skills people develop in business school does not rise and fall just because the economy does," said Dave Wilson, president and CEO of GMAC, an international nonprofit association of leading business schools and owner of the Graduate Management Admission Test (GMAT), used by thousands of business schools as part of the admissions process. "Management talent is always critical to the well-being of any organization, and as conditions improve, employers will find ways to acquire more of that talent."
The top industries in terms of predicted job opportunities for MBA graduates in 2010 are consulting and health care. Positions in marketing and sales are likely to be most plentiful, followed by finance-related slots in areas other than investment banking.
Employers expect to pay a significant premium for MBA talent. The average starting salary recruiters plan to offer new MBAs this year is $80,508, nearly twice the $41,860 average salary people with only a bachelor's degree can expect to receive. In addition, 59 percent of U.S. companies plan to offer signing bonuses to new MBA hires in 2010.
In a particularly positive development for job-seekers, the survey indicates that employers are shifting away from an emphasis on cost-cutting and retrenchment and paying more attention to growing their businesses. Sixty percent of respondents said they planned to expand their customer bases in 2010, up from just 49 percent a year ago. Meanwhile, the proportion of respondents concentrating on cost-cutting as a key organizational goal dropped from 66 percent in 2009 to 57 percent in 2010. Improving performance remained the top priority for survey participants.
The findings of a separate GMAC survey indicate that employer optimism may take a while to translate into actual job openings. The percentage of graduates from full-time two-year MBA programs who had an offer of employment prior to finishing school dropped to 40 percent in 2010 from 50 percent the previous year, according to the latest GMAC Graduate Management Education Graduate Survey. The number of job offers reported by survey participants in these MBA programs who did land positions declined about 13 percent. Still, students graduating in 2010 were slightly more optimistic about the economy than people in the class of 2009.
The GMAC Corporate Recruiters Survey, conducted in cooperation with the MBA Career Services Council and EFMD (European Foundation for Management Development), reflects responses from 2,367 employers representing 1,960 companies in 57 countries. The GMAC Graduate Management Education Graduate Survey collected data from 5,274 graduating students at 147 business schools around the world. Both surveys were conducted from mid-February to mid-March. Reports about the surveys are available online at www.gmac.com/surveys.
The Graduate Management Admission Council (www.gmac.com) is a nonprofit education organization of leading graduate business schools worldwide dedicated to creating access to and disseminating information about graduate management education. GMAC is based in McLean, Virginia, and has a European office in London. The GMAT was created in 1954 and is used by more than 4,800 graduate management programs at nearly 1,900 business schools around the world to assess applicants. The GMAT -- the only standardized test designed expressly for graduate business and management programs worldwide -- is currently available at approximately 500 test centers in over 110 countries. More information about the GMAT is available at www.mba.com.