More MBA News: GMAT Volume and Salaries Up in 2005

GMAT volume is slowly crawling out of its hole. It climbed 3.6 % worldwide, staying virtually flat in the US (up .12%) and growing a more robust 11% outside the US.

In parallel, and I don’t think it’s coincidental, USA Today reports a hefty increase in average MBA salaries for 2005 grads:

" The $106,000 salary and signing bonus was up 13.5% from 2004, according to a GMAC survey of 5,829 2005 grads. Salary alone increased to $88,600, surpassing the previous high of $85,400 set in 2001. The 2005 salary still trails 2001 by about $4,000 when adjusted for inflation, but the inflation-adjusted record will likely be broken this year."

Last year I predicted a slight increase in GMAT volume and suggested that MBA application volume was going to turn around. I was right. For next year, I predict that GMAT volume will increase more sharply. 2006 could see double-digit growth in MBA application volume, if we don’t already see that  in 2005.

  • XtotheZ

    Why are we posting quotes and numbers from "The USA Today?"

    Perhaps a more well-respected publication can be used?

  • http://www.accepted.com Linda Abraham

    I actually looked for a source on GMAC, but they don’t have it posted yet. CNN posted the story at http://money.cnn.com/2006/01/19/news/economy/mba_salaries/ . I chose to site the USA Today article because it has more detail.
    Other sources: http://news.google.com/news?ie=UTF-8&oe=utf8&persist=1&hl=en&client=google&ncl=http://www.cnn.com/money/2006/01/19/news/economy/mba_salaries/%3Fcnn%3Dyes .

  • http://www.accepted.com Linda Abraham

    How would there be double digit growth for b-school apps in 2005 if gmat volume was only up 3.6% ?

    People’s GMAT score is good for five years. Those who took in previous years could be applying now. Those from previous years as well as those who took this year could be applying now to more schools.

    Of course the opposite is also possible: The noise about increased applications this year could be exaggerated and when the figures come out the increase will not exceed 10%.