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May 23, 2019

Demand for MBA’s is on the Rise Globally



While many business leaders are coming from the engineering or IT field these days, demand for MBAs is still on the rise. But one area where the demand seems to be flourishing the most is on a global level. Companies in emerging markets are in dire need of people with the expertise and knowledge needed to manage their businesses. This could present tons of opportunities for current graduates now and in the future. Let’s take a closer look at the numbers and see what they could mean for the future of the profession.

Asia is Leading the Pack

According to a recent 2018 report by QS Quacquarelli Symonds, Asia seemed to be the place with the highest increase in demand with 18% in 2017. The demand in Europe and in the United States increased by 10%, which shows that the MBA is still alive and well in these regions too. The demand worldwide increased by 10%. 

This is easily understandable since many of the fastest growing economies in the world are located in Asia, South East Asia to be more specific. The salaries were also very competitive with MBAs earning $63,948 in the Asia Pacific region. In North America, the average salary for MBAs was around $89,037 and $73,271 for Europe. However, the cost has to be adjusted with the cost of living.

MBAs Offer a Great Return on Investment

According to QS Quacquarelli Symonds’s ROI report, they stated that the average MBA graduate had a $390,751 return on investment over a 10 year period globally, which is pretty impressive. According to the same study, the average time for MBA students to start seeing a return on their costs was 51 months in the United States, which is better than a lot of professions.

This ROI could even be higher when considering programs like Redlands University’s online MBA. Accredited online MBAs are highly recognized worldwide and allow students to finish their education in as little as 24 months. This gives them the chance to see a return on their investment much sooner.

Local Employers Still Highly Value MBAs

While there was a slight dip on the national level for MBAs, that was only relative to how high the demand was before. As a matter of fact, more than 78% of employers surveyed in a recent study stated that they had the intention to hire an MBA in 2019. Not only do they plan to hire more b-school students, but they also intend to pay them better as well. 

From all the employers surveyed, the majority stated that they were intending to increase base salaries for business school hires. Many of them stated that they would increase at rates higher than inflation compared to last year b-school hires.

Conclusion

So, if we are to judge by the data, the MBA seems not only to be alive and well but soaring worldwide. And if we look at global indicators, demand should continue being on a rise for a few years to come.


The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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