The decline of the MBA is now affecting elite business schools

The number of MBA applicants was down for the fourth year in a row in 2018, the the Wall Street newspaper reports, a trend that is now affecting even the most elite universities.

Applications for US business schools declined 7% from the previous year, according to the Graduate Management Admissions Board. As the economy improves, more and more young professionals are reluctant to abandon high-paying jobs for business school loans. The biggest drop was observed among international students, who face tougher visa procedures after graduating in the Trump era.

Major business programs such as Harvard, Wharton and Stanford were considered insensitive to the MBA crisis, but they also recorded declines this year: 4.5%, 6.7% and 4.6% respectively.

GMAC President Sangeet Chowfla said WSJ It is possible that business school demands will fall as the US economy approaches its peak, but may increase further in the next recession.

Specialized master's programs attract some candidates from traditional MBA programs and business schools in Europe and Asia also face fierce competition. Applications increased by 8% for schools in Canada and 9% for schools in East and South Asia.

Earlier this year, GMAC reported that the proportion of companies wishing to hire MBA graduates this year has dropped from 91% last year to 85% this year.