The drop in biz school applications, explained

Application numbers at America’s top business schools are doing the cha-cha slide – and not in a “let’s get grandma out on the dance floor'' good kinda way.

For the upcoming class of 2024, the University of Chicago, Yale, and NYU have all seen a 10+% drop in applications. And it doesn’t end there.

• The Wharton School at UPenn experienced a more than 13% drop.
• At Hah-vahd, the nation’s top business school, applications fell over 15%.
• MIT’s Sloan School of Management saw a 25% drop. (How you like them apples?)

✋ Yes, but… At some schools – like Wharton – numbers are just coming back down to normal. UPenn’s biz school recorded 6,319 applicants this fall, down from 7,338 last year but still higher than the 5,905 who applied in 2019.

📸 Big picture: MBA applications are often countercyclical, meaning when the job market is good, people stay at work.

• Young folks are seeing the biggest wage gains in today’s labor market – and highly-ranked business schools can reach $200,000 or more for a two-year, full-time program, once living costs are added, the WSJ reports.

+One interesting thing: If not for international students, the downward MBA trend would be even more pronounced. Domestic student interest has fallen among full-time, two-year business schools in the US, per the Graduate Management Admission Council. But at many places – like UNC Chapel Hill – that decline is being offset by an increase in international applications. The Tar Heels were one of few top-20 MBA programs to actually see an increase in applicants this past year.