Wednesday, June 22, 2011

The road to MBA riches is still rocky

Although the there has been a lot of talk about this downturn hitting the lower end workers hardest- and I don’t disagree with that assessment – it has not been an easy one for Masters of Business Administration (MBA) either.
MBA students have had two foul years of post graduation employment placement.  Last year 60% of students did not have pre-graduation employment offers.
This year there has been a pickup with only 43% of graduating students not receiving offers.  Where the slack has been taken up, it has been coming from finance and consulting firms.  Healthcare, another heavy user of MBAs remains down.
The only industry company noted as hiring was General Electric.  Global industry used to be a major market for MBAs, but as salaries went up in the Finance and Consulting end of the MBA market, more MBAs went to those markets.
We have discussed the credentialing crises in the past, and certainly our glut of MBAs is part of that pattern.  Historically, it is a part of the elite class, that feels that it is not getting its just due, that initiates revolutions.  The unhappy peasants can riot, but a revolution usually takes organizations and resources.  I am sure if you look at the demographics of MBA students, that they are not coming from the lower 25%.  With the introduction of mass education methods, disgruntled students have also been at the vanguard of many of your modern riots and rebellions.
Source:
Melissa Korn and Joe Light, Wall Street Journal, 2 June 2011.

1 comment:

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