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Looking ahead, it seems that most recruiters remain confident that demand will continue to grow in 2008. Although recruitment agencies remain bullish, only a 6% increase in demand is anticipated in the technology sector, only 7% in financial services, but a
robust 26% in consulting and 11% in industry.

From the point of view of MBA recruiters around the world, there seem to be no imminent indicators of a possible reduction in demand. However, there is a feeling that the huge growth in demand over the last three years cannot be sustained, not least because the supply of MBAs is not growing as rapidly and companies may not be willing to push salaries much higher.

At the same time, it is always worth expressing words of caution. A recession as seen between 2001 and 2004 is not on the cards, but with falling house prices, a growing deficit in the USA, and rising interest rates, a fall in MBA demand in some regions in 2008 is possible. Chris Higgins at Wharton cautions, "MBA candidates need to remain flexible about their career aspirations."

The new demand by employers is now also being reflected in applications to do an MBA. Between 2003 and 2005, there was a 20% decline in MBA applications worldwide. In some countries, young professionals seeking career progression within their function or industry were reluctant to take a risk and leave to take an MBA, in case they missed out during their time away. This trend was evident in the US, and especially in China, where MBA applications fell by 50% during these years - a period of Chinese economic boom. Visa restrictions for entry into the USA also resulted in less competition to gain entry to the best schools than in the years before 2002.

The good news for business schools is that MBA applications are again on the rise and competition for places is intensifying once again. Rose Martinelli, Associate Dean of Admissions at Chicago Graduate School of Business, reports that domestic US applications have increased by 100% in two years, whilst international applications have increased by over 30%.

In most countries around the world, we see a rise in demand for MBA places amongst people who seek a career change or who wish to start their own business. These young professionals are trying to time their MBA so that they graduate into a "hot" job market, making 2008 start dates look very attractive, but with entry into top business schools increasingly competitive.

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Source: -
QS World MBA Tour - QS TopMBA.com International Recruiter Survey 2007
© QS Quacquarelli Symonds Ltd. 2007
Website: www.topmba.com