Students Shying Away from MBAs; Applications to Business Schools Worldwide Drop by 13%

According to the Graduate Management Admission Council’s (GMAC) 'Application Trends Survey 2026,' global applications for MBA programs have seen a significant 13% decline in 2026, following two years of growth.

For years, an MBA was considered a guarantee for a strong career, a high salary, and leadership roles. However, factors such as rising educational costs, uncertainty in the job market, and increased student caution regarding 'return on investment' (ROI) appear to be dampening the appeal of popular degrees like the MBA. The GMAC’s 'Application Trends Survey 2026' reports a 13% drop in global MBA applications—a sharp reversal after two consecutive years of growth. The report notes that nearly two-thirds of business schools worldwide have acknowledged a decline in MBA applications, marking the largest drop seen in the last decade.

A Shift Following Two Years of Growth

This decline represents a major shift compared to the previous two admission cycles. Global MBA applications had previously recorded growth of 13% in 2024 and 2% in 2025. By 2026, however, the trend has shifted entirely. This downturn is not limited to a single format; rather, it spans all types of MBA programs. Specifically, there has been a 13% decline in full-time two-year MBA programs, 11% in one-year MBA courses, 18% in Executive MBA programs, 23% in flexible MBA programs, 9% in online MBA programs, and 15% in part-time MBA programs. These figures clearly indicate that students are not merely shifting from traditional classrooms to online education; rather, their perspective on pursuing an MBA is undergoing a fundamental change.

A Sharp Decline in International Applications

The report reveals that in 2026, international candidates accounted for 36 percent of total global MBA applications. There was a significant 28 percent drop in applications from international students for full-time, two-year MBA programs, whereas domestic applications saw a decline of only 11 percent. According to experts, the primary reasons for this trend include shifting visa policies, stricter application requirements, geopolitical uncertainty, and a slowdown in the job market.

New Destinations for Indian MBA Aspirants

A report by GMAC highlights a major shift in the preferences of Indian students. Instead of the United States, the United Kingdom, and Canada, Indian candidates are increasingly favoring business schools in Europe and Asia. In Europe (excluding the UK), over 50 percent of business schools have identified India as their largest source of international talent. Similarly, in East and Southeast Asia, 39 programs have reported that India is their top source of international students. Conversely, 41 percent of business schools in the United States have acknowledged a significant decline in applications from Indian candidates. In the UK, too, there has been a 43 percent drop in work visa applications and a 19 percent decline in student visa applications.

Layoffs and Economic Downturn: Key Drivers of This Shift

Thirty-seven percent of institutions within the graduate management education sector believe that economic factors—such as layoffs, an economic slowdown, and volatility in the job market—have influenced students' decisions. Pursuing an MBA not only entails substantial tuition fees but also requires students to leave their current jobs, commit one to two years of their time, and take on the risks associated with educational loans. While applications to more selective business schools have seen a decline of only 9 percent, the drop at open-admission colleges stands at 21 percent.