Why Get an MBA?
From expanding your network to boosting your career, there are many great reasons to get an MBA.
From the Bureau of Labor Statistics comes evidence that points to the best reason. A master’s in business administration – or in any disciple for that matter – is a fantastic insurance policy.
BLS data shows that education attainment is inversely proportional to unemployment and directly proportional to income.
In other words, those who hold advanced degrees earn more on average and are less likely to face unemployment. The jobless rate for those with master’s degrees was 2.8 percent in 2014, compared to 3.5 percent for those with a bachelor’s. The median weekly earnings were $1,326 with a master’s, $1,101 with a bachelor’s.
Demand for Master’s Degrees to Grow
Here’s another great reason to earn an MBA: top economists predict that by the year 2020, 35 percent of job openings will require at least some college education. A chunk of those will require a master’s, which sages are calling “the new bachelor’s degree.”
The data for master’s degrees overall holds for MBA graduates, too. In fact, the jobs climate is even better for business school alums, who last spring received the best job market in a decade as their graduation gift.
The Allure of the Master’s
According to a survey by the Graduate Management Admission Council, the company that administers the GMAT, 84 percent of the international companies they contacted plan to hire MBA degree-holders in the coming year. That’s a 10 percent jump over the previous year and a whopping 20 percent increase since 2007.
In the U.S., the MBA is even more in demand with 90 percent of the companies in the GMAC survey looking for job applicants with post-graduate education.
For employers, hiring people with master’s degrees is important because of the increased capabilities that come with the additional education.
“It’s not just because employers like to have extra letters after the name of the person they hire,” Debra W. Stewart, who recently retired as president of the Council of Graduate Schools, told The Washington Post. “The fact of the matter is, it’s the complexity of the knowledge economy that’s driving more education.”
Business education leaders believe their flexibility in changing with the times is spurring the demand. Business schools have refocused curriculum to better meet business needs by creating programs that produce the well-rounded, creative leaders corporations need in the modern economy.
With today’s job market for MBA degrees, earning a master’s just makes sense. Companies are hiring, and the jobs pay more on average than those requiring just a bachelor’s. A master’s is also great protection from unemployment during economic downturns.
Written by Ashford University staff