Dramatic Improvement in MBA Job Market

April 15 2005 - The job market for MBA graduates has been sluggish for several years but a recent GMAC survey finds that opportunities for MBAs are increasing rapidly and are set for a dramatic improvement during 2005. A total of 1,691 recruiters, representing 1,019 companies worldwide, participated in the survey.

The latest Corporate Recruiters Survey sponsored by the Graduate Management Admission Council finds that the improved job market for MBAs largely results from greater confidence in the economy. The percentage of survey respondents who said the economy is weak has steadily declined from a high of 99% in 2001-02 (the first year of the survey) to 82% in 2003-04. However, the current year's survey shows a significant turnaround in the perception of recruiters, with only 55% perceiving the economy as weak.

There was a drop also in the percentage reporting that the economy is constraining their recruiting plans. This year, only 30% of recruiters who said that the economy is weak also reported the economy constrained their recruiting plans - a massive reduction from 69% in 2001-02.

"All the signals are there for the best recruiting year since the irrational exuberance of the dot-com era. MBAs are back," said David A. Wilson, president and CEO of GMAC. "Recruiter optimism about the economy is translating into more openings, with larger numbers of companies coming back to more campuses than last year."

Different industries are experiencing different economic conditions. Recruiters in the high-tech (68%) and health care (72%) industries are significantly more likely than respondents in the finance industry to state that the economy is weak. Half of the respondents (52 percent) in the high-tech industry feel that the economy is constraining their recruitment efforts, compared with a mere 21% and 18% of respondents in finance and consulting, respectively.

Internships continue to have a major impact on the hiring of MBAs. Nearly one third (31%) of MBA graduates hired in 2004 served as interns at the companies where they found permanent jobs. The trend was particularly significant in the healthcare, manufacturing, and finance industries.

The average starting salary for MBA graduates for 2005 is estimated at $78,040, compared with $72,021 in 2001-02. The total compensation package for a new MBA graduate hire in 2005 is estimated at $96,657.

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