The world of graduate business education has changed in many ways since the pandemic, and these shifts are continuing into 2025. They include hiring changes in the job market, revised expectations of job seekers, and continued efforts by schools to attract a more diverse student body.
The Demand Side
During the pandemic, there was initially a dip in business school applications. Fewer people were able to take standardized tests in person; world travel was at a standstill, which put foreign MBA applicants at a disadvantage; and many people were not sure what their lives would look like when the pandemic was over.
Now, almost five years after the pandemic began, business school applications have returned to pre-pandemic levels, and some believe they will increase. Many applicants are asking us what their prospects look like and how their background compares to others. But why is interest in MBAs rising, and how does this affect you?
Historically, these have been the main drivers for pursuing a graduate-level business degree:
- Earning an MBA will qualify you to rise in the ranks at your current role (traditionally, to advance from analyst to manager at a bank, consulting firm, or consumer packaged goods company).
- Earning an MBA will help you change career tracks, move to a business management role, or start your own business.
These reasons haven’t really changed, but the pandemic has created a generational boom, much like the baby boomers created a wave of growth in many world economies.
COVID Boomers
So, who are these COVID boomers? Let’s put them in three groups. First, there are those who are graduating from college now or recently graduated (new grads) and are excited to get their career started on the right foot. Next, there are those who have been out of college and have two to five years of work experience (recent grads). These folks are still in their first or second post-undergraduate position looking to take the next step in their career. Finally, there are the more experienced professionals who feel now is the time to retool themselves. One key point to remember is that there was a small but significant bump in births at the turn of the century, and many of these MBA applicants (new grads and recent grads) graduated at the height of the pandemic or soon thereafter. That’s the demand side.
The Supply Side
On the supply side, the job market has changed, and the process of getting those jobs also has changed. Many companies are imposing hiring freezes, conducting virtual interviews, or reducing the size of their typical new hire class. Therefore, the job supply is not quite living up to the current demand. MBA applicants who are a few years out of college are likely the most affected by post-pandemic job market changes. Not only did they graduate into a tough market for interviewing, but they likely were hired by companies that might have downsized during the pandemic or suffered major changes in their industry or business.
| Changes in Job Market | Changes in MBA Environment | Sample Opportunities | |
|---|---|---|---|
| New Grads (Up to 2 years of experience) | Slower market More individuals changing career track | More people taking GRE More MBA-like post-grad alternatives | Master in Management one-year programs Deferred MBAs |
| Recent Grads (2–5 years of experience) | Layoffs Changing industry practices and expectations More early career changes | More GRE applicants Greater diversity in applicant backgrounds | Tech MBA Joint health care/MBA JD/MBA International MBA |
| Experienced Hires (>5 years of experience) | Layoffs Slower business More individuals changing career track AI business trend | Concentrated curriculum programs Focus on labs and accelerated/executive programs More MBA applicants More nontraditional applicants More test-waiver applicants | Executive MBA programs Weekend and part-time programs |
For example, I recently spoke with a candidate who had stellar academic qualifications and joined a top-notch private equity firm out of college who said his deal group had not managed a successful investment in his tenure. And last year, I met a candidate who had moved to California from New York to work for a consulting firm, and they were leaving the firm after never having set foot physically in the local office in 18 months. This has been the case for those working in traditional business fields as well as for other professionals. Also, I’ve recently spoken to physicians, lawyers, and software engineers who were all looking for a slightly different path, and this shift is happening with even greater frequency post-pandemic.
Changes in MBA Programs
The process of diversifying the student body at business schools had begun even before the pandemic.
- Increased GRE acceptance: Schools had already started accepting the GRE in greater numbers prior to the pandemic. By reputation, many non-business and engineering majors found the Quant section of the GRE exam less daunting than the GMAT. And then during the pandemic, online testing of the GRE was less clunky than the GMAT, which had been slower to roll out its online version after testing centers closed. Now, up to 30% of applications are submitted with a GRE test score instead of the GMAT. which is more than double the percentage pre-pandemic. With the introduction of the new GMAT Focus during the 2024–2025 application season (a reformatted and shorter test), the GMAT still is the more widely accepted standard test for MBA applications, but the GRE has become an accepted test form.
- New master’s programs: For new grads, many business schools have created one-year Master in Management programs to give them a boost in business basics. For example, Chicago Booth just launched its one-year program in 2024, joining schools such as Northwestern Kellogg and Duke Fuqua to give these candidates more seasoning. There’s also a long list of deferred admissions (sometimes called 2+2) programs for those new grads who like to plan ahead.
- More MBA options: For recent grads and experienced hires, the breadth of MBA programs has expanded with particular emphasis on joint degrees as well as concentrations in industries such as health care and tech. Weekend, part-time, online, and executive programs are also rising in popularity with those needing more flexibility and not wanting to risk job security as well as loss of income by attending a traditional full-time MBA program.
All of this makes business schools a more popular option than ever. The question is not just which school you’d most like to attend, but how do you convey your uniqueness to the school in your application, and how will that program best fit you?
Let Stratus Admissions guide you through the application process. Sign up for a free consultation with one of our counselors to find out how we can help you increase your chances of being accepted!