Plight of the New MBA: Fewer Jobs, Lesser Pay
Having degree no longer gets you into 'exclusive club'
By Kate Seamons, Newser Staff
Posted Jan 7, 2013 8:12 AM CST
Graduates from the Leonard N. Stern School of Business wave "MBA" towels as they are declared degree candidates, during NYU's 180th commencement ceremony at Yankee Stadium, May 16, 2012 in New York.   (AP Photo/Bebeto Matthews)

(Newser) – If you ditched your law school dreams and took the MBA route instead in the hope of actually finding a well-paying job upon graduation, the Wall Street Journal has some really depressing news for you. The paper today takes a look at the plight of recent MBAs, who are emerging into a job market glutted with new grads that's paying less than it once did. A recent analysis found that MBAs with less than three years of experience had a median pay of $53,900 last year, a 4.6% decrease from 2007-2008; meanwhile, tuition and fees for the degree have jumped 24% over the last three years.

Two decades ago, companies would often scoop up as many as 100 new MBAs; "some of those companies would hire today barely in the single-digits," says the head of an MBA council. Many US-based multinationals are increasingly hiring foreign MBAs, and other companies are turning to cheaper undergrads they can train. Some of the problem lies with the MBA itself: An influx of part-time, executive, and online programs has produced MBA growth that has outpaced population growth—a record 126,214 MBAs graduated in the US in 2010-2011, a 74% jump from a decade prior. "An MBA is a club that is now not exclusive," says a Georgetown business professor.

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Jan 8, 2013 3:16 AM CST
Welcome to "the fish bowl", MBAs !!!! Join the ranks of the millions of truck drivers, the "blue collar" doctor profession, the huge tribe of lawyers, while at the same time newspapers and magazines are shutting down in favor of the hideous computer that people so love, while supermarkets are so big you can get lost in them yet they have one-eighth the employees, where wages are "decent" if they are around the poverty range... WELCOME MBAs !!!!!!
Jan 7, 2013 11:03 PM CST
I started to feel some hesitation about going for a masters after I got accepted, but my professors and family kept saying I was the perfect candidate for grad school. I dropped out 4 weeks into the first semester, and I'm so glad I did. I didn't need 80k in loans.
Jan 7, 2013 1:44 PM CST
oooops.......... the nannies are back............... " Comment awaiting approval Your comment must be approved by a moderator before appearing here."