MBA blog

Employers Shying Away From International MBAs

Recently, concerns have been growing about decrease of prospective international students’ interest in U.S. MBA programs.

Then, this Wednesday a new survey was published, which showed an additional reason why students from overseas are starting to get their MBAs elsewhere: company recruiters started hiring fewer international employees, trying to save money on additional training.

The survey conducted by the MBA Career Services & Employer Alliance used results from 94 schools all over the world, Poets&Quants reports. The results showed that, although MBA graduates are being hired as often as always, since 2017, the recruiting rates for international MBAs have been dropping. Actually, employers are unwilling to spend company resources on recruiting international professionals, considering the political situation in America.

As both business schools and aspiring students are aware of the “Trump effect” which is the same as “Brexit effect” for the UK and prevents international students from considering schools in these countries, the survey results are far from surprising. Now we know that employers are also worried about the prospects of hiring international staff. In its turn, the decrease in hiring foreign MBAs will only exacerbate the situation with declining applications from aspiring international students.

Report results

The surveys for the report were conducted in this January and February, and 77% of the participants were U.S. MBA programs. The report showed the following:

  • There are 68% respondents who reported less full-time jobs for international students, whereas in 2016, only 50% of them indicated a decrease.
  • At the same time, in the technology sector, more international full-time MBAs are being hired; unlike other sectors, 43% of it reported an increase.
  • Internships show much the same picture: for 11.3% of responding business schools, the opportunities for foreign MBAs are rising, whereas for 33.8% they haven’t changed, and for 54.9% the opportunities decreased.

The biggest decline is reported by the Consumer Packaged Goods industry (according to 50.7% of responding business schools). For most other sectors, the decrease was confirmed by 30-35% of respondents, and only in the technology sector the activity was increasing.

Is the situation for specialized master’s any better?

Actually, for specialized master’s students, the picture is pretty much the same. The survey showed that no more than 17.5% of respondents reported increase in job opportunities for specialized master’s students from abroad. 42.5% of business schools say the opportunities have dropped. Internships show an even more alarming picture: according to 54.6% of respondents, opportunities have decreased, while only 9.1% indicated an increase.

Half of the respondents reported that there were fewer jobs in government for international specialized master’s students. Additionally, 44% said there was a decrease in jobs for Consumer Packaged Goods industry. The same can be said for Media and Entertainment (42.1%) and Consulting (41.9%). Still, in the Technology industry opportunities for jobs are increasing, according to 41.9% of the respondents.

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