MBA enrollment up despite economic slump
The unemployment rate for high-level degree graduates is only 2 percent.
Published Dec. 2, 2008
With the economy slumping and more companies going bankrupt everyday, entering the business world could seem a less attractive option to some students, but a recent study shows just the opposite.
A Kaplan Test Prep and Admission study stated that compared to three years ago, 75 percent of business schools have reported a more competitive admissions process and may even expand the available number of spots. Of the 245 business schools surveyed, MU was one of the schools with a more competitive admissions process.
According to the Fall 2007 enrollment summary on the MU Web site, 213 MBAs were awarded during the 2006-2007 school year. This is up from 197 in 2005-2006 and 174 in 2004-2005.
"In general, people have realized that the competitive nature of the job market makes a higher degree more valuable," Priya Dasgupta, Kaplan director of graduate programs, said. "The big driving factor, right now though, is the economic downturn."
According to the Bureau of Labor Statistics, the unemployment rate significantly decreases in correlation with the level of education a person has. While the national unemployment rate was at 6.5 percent last year, people without a high school degree had a 10.3 percent unemployment rate. However, for people with a high level graduate degree, the unemployment rate is only around 2 percent.
"People are looking for MBAs to take them further," Dasgupta said. "Employers tend to look more favorably on people with MBAs, which feeds the desire for people to go to business school."
In general, finance and marketing have been the most stable focuses for MBAs.
"They have been the stable bread and butter of the MBA," Dasgupta said. "A decent amount of MBA programs play up leadership, sustainable growth and social entrepreneurship."
Careerbuilder.com reported only 58 percent of employers want to hire new college graduates, which is slightly down from previous years, Dasgupta said.
"An MBA can help you become much more competitive to help you get your foot through the door and get the job you applied for," she said.
Not only can an MBA degree help one's chances of getting a job, she said, but also it significantly raises the potential salary.
"According to the Census Bureau, someone with an MBA or grad degree can earn over $400,000 more in their lifetime than someone with a bachelor's degree," Dasgupta said.
Students at MU have not been deterred by the slump in the economy.
"The slumping economy encourages my career plans," business student Hannah Schiermeier said. "I know that if I have the right education and the right ambitions, I can get far since businesses will be looking for new people to come in and turn them around."
Schiermeier intends to go on to graduate school and get her MBA after she finishes her bachelor's degree. Though the economy is in trouble right now, she feels confident in her job prospects.
"I will be learning all the fresh, new business techniques that businesses will be looking for," Schiermeier said. "I am a little bit nervous, but I was nervous before the economy took a downward spin. I think Mizzou has a great business school, so I am pretty confident."
For business student Sam Deatley, the state of the economy does not interfere with his plans to go on to get his MBA.
"The economy right now does not have any impact on my choice to get an MBA," Deatley said. "It actually encourages my plans."
Following graduation, Deatley hopes to take over his family business, a company that crushes rock for roads and concrete.
