It’s no secret that business degrees are still the most popular undergraduate and graduate degrees in the US. While the overall number of employers that require a BA or MBA may be decreasing, a business degree is still considered to be at the top of the list for some employers in the field. MBAs are seen as highly valuable, and 80 percent of MBA graduates are employed within a year of graduation.
There was a decline in new student enrollment from 2022 and 2023, but not across all degree levels, and when we look at application data, it looks like 2024 is telling a different story, especially in the MBA space. According to GMAC’s 2024 Application Trends Survey, the downward trend changed course in 2024; applications to MBA programs were up by almost 12 percent. Other notable statistics: programs with flexibility have become much more attractive to applicants. 52 percent of hybrid programs and 58 percent of online programs have reported an increase in applications. So what’s changed?
Enrollment Fluctuations
First, let’s take a look at new student enrollment numbers across all business degree levels for the past five years:
Source: Gray DI’s Program Evaluation System (PES)
With the exception of a minor downturn in bachelor’s degrees, new student enrollment ticked up slightly across all degree levels year over year between 2022-23 and 2023-24. Taking a look at the five-year span reveals that the highest decreases in enrollment occurred in associate degree and master’s degree programs, while the decline in bachelor’s enrollment was much less pronounced. Let’s take a closer look at the reasons for these differences.
Getting Down to Business
In recent years, factors involved in declining new student enrollment in business programs reflected a variety of concerns from potential applicants: the rising cost of programs and resultant student debt, worries that institutions are scrambling to keep up with rapidly changing developments in AI and technology, market oversaturation, flexibility of online or hybrid online/on-ground options, and length of time necessary to complete a degree.
While these qualms may remain for degree seekers, it appears that many institutions are taking proactive measures to draw interest in enrollment: offering more dual degree programs, increased availability of asynchronous learning, more flexible options, and more integration of AI technology both in the application process and coursework, to name a few. According to a 2024 AACSB report, “while the majority of students in MBA and master’s specialist programs are attending in person, enrollment patterns for MBA programs are shifting. Online and hybrid/multimodal options are now becoming just as popular as traditional face-to-face formats, signaling a growing preference for flexible learning.” For example, this fall, Georgia State University’s Robinson College of Business began offering its MBA as a fully online program. With this launch, the total number of credit hours was reduced, and the curriculum has evolved to incorporate more emphasis on AI literacy, emotional intelligence, and big data analysis.
New programs have also been announced in areas other than AI; the University of Chicago (Booth) created an MBA/MS in biomedical sciences and an MBA in healthcare concentration. Dual degree options are popping up at many schools, and some are conferring degrees to their first round of graduates; earlier this year, the first graduate of Fairfield University’s dual MSN (Master of Science in Nursing/MBA program was awarded his degree.
Buying Into New Options
Another interesting development is taking shape as more students are weighing “prestige” programs against options with lower costs (and less accrual of debt), more flexibility, quicker paths to a degree, or non-degree options. While application and enrollment at top-tier business schools offering a traditional two-year degree path remains dominant, many institutions have recognized that Gen Z’s reputation as “the toolbelt generation” has contributed to the growing popularity of non-degree offerings like micro-credentials and certificates.
Get a Job
The Wall Street Journal published an article in October 2024 discussing another contributor to the upswing in interest and enrollment in business programs: the labor market.
“Renewed enthusiasm for the M.B.A. reflects limited prospects for recent college graduates despite a still-strong labor market overall, say recent grads and M.B.A. administrators. Among factors hurting white-collar work, artificial intelligence has begun to upend some jobs, while more established employees have recently quit job-hopping, leaving fewer open roles.
Young college grads choosing to go back to school say the decision could make them stronger job candidates in the future. Both young workers and laid-off older workers often gravitate toward M.B.A. programs during times when they think there could be an economic downturn.”
Staying Open For Business
The demand for business degrees remains extremely robust, despite some fluctuations in recent years. In order to thrive, institutions should make it their business to keep up with rapid advancements in technology, offer more dual degree programs, and create or nurture flexible and affordable learning options.
