https://www.forbes.com/sites/poetsandquants/2019/05/26/why-business-schools-are-shutting-down-their-mba-programs/?utm_source=FBPAGE&utm_medium=social&utm_content=2370806948&utm_campaign=sprinklrForbesMainFB

This is about the declining supply of full time MBAs. Employers demand for full time MBAs is not falling.

This is about the declining supply of full time MBAs. Employers demand for full time MBAs is not falling.

[Edited by sts on Jun 04, 2019]

Indeed, but the demand for full time MBA graduates is not falling. The supply is falling, not the demand.

[Edited by Duncan on Jun 04, 2019]

I think it's tab bit unjust to talk about demand - supply in case of MBA candidates outside of context. A lot depends on the market, region etc. Top Tier MBA programs provide awesome value - regardless of the cost. The salary gain and NPV will outweigh the "investment" in fees and opportunity cost.

Mid tier schools in US depend a lot of alumni donations, govt. funds - if applicable, sponsored students, and international student fees. I have few friends who got their MBA from UIUC in 2015. Class composition was 25% Indian and 20-25% Chinese students - if my memory is correct. With growing concerns over H1B under Trump administration, and fluctuating USD v INR, many Indians are increasingly finding a mid tier full blown MBA to be difficult and risky proposition. Chinese students are finding 1 year MS courses to be more attractive than a generic nature of MBA in a foreign country.

At the same time MBA schools in Canada have seen an influx of applicants even though the Canadian Market is smaller and pays a lot less in salaries.
Universities in US offering full time MBA programs that is considered as Mid Tier or Lower Mid tier have found Evening MBA, Professional MBA and online MBA to be a better product. The fees are paid by the employer and there is no pressure of having full time tenured faculty, or any pressure to maintain a sizable admission and/or career services team, classroom etc.

I believe it is the falling demand that leads to falling supply not the other way around.

Why would business schools closing down if the demand are there.

I am also very surprised that UIUC is closing down the part-time MBA as well. Clearly the future is in online but rich and interactive experience around global hubs.

Salary growth shows that employer demand is strong. It's immigration obstacles which constrains demand being met.

This article is mostly US focused too. That will skew the perception. I haven't heard much about full-time MBAs in other countries shutting down. Maybe a few in the UK, probably for similar reasons.

Salary growth shows that employer demand is strong. It's immigration obstacles which constrains demand being met.