Booming business school applications may be a sign of the times. Universities across the world have seen a 12% increase in applicants to their business school programs, with American institutions reporting a 72% influx of MBA entrants compared to last year. The last time academic institutions saw a similar spike was during the pandemic, following a historical correlation that indicates distress in the labor market.

Generally speaking, labor market insecurity prompts people to engage in academic pursuits that will improve their future earning potential, writes Fast Company. More morbidly, labor market insecurity also means that more people are unemployed and can dedicate time to further studies.

But is that still the case? Andrew Walker, director of industry communications at the Graduate Management Admissions Council (GMAC) thinks it may not be as straightforward this time around, telling Fast Company that it is a “more holistic decision” that people are making, with more people picking business school with the belief that it provides the highest financial return on investment. “That’s how business schools are presenting their value proposition,” says Walker.

But ROI means something else to younger candidates. Gen Z applicants viewed future financial security as a secondary benefit to attending business school, with the primary boon being a vehicle to a fulfilling life. “Gen Z candidates [see business school] as a place to find enrichment and to make a positive impact […] and as a means to achieve work-life balance,” confirms a GMAC study.

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