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# Job Market and MBA's

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Director
Joined: 28 Jun 2006
Posts: 958

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18 Jan 2007, 11:15
Can somebody help me understand something here. They say when the job market is bad, there are more MBA applicants. When the job market is good people are more satisfied with their career progress/prospects so MBA applications tend to be lower.

From what I've heard, it sounds like applications are up this year, has anyone else heard this? Or am I just extrapolating from a couple schools who are experiencing this?

Is the job market bad right now? I really don't have a good sense of this, but just from what I've heard (i.e., soundbites I'll hear on CNN, anecdotal stuff from friends etc...) I thought it was a good job market right now. Anybody know?

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GMAT Club Legend
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2163 [1], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45

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19 Jan 2007, 05:10
1
KUDOS
As to the question of an up or down market, I don't worry about it. An MBA education will be sufficiently mutable so as to ensure that, at some point, I move into the area I'd seek to move into. There's just no point in trying to guess it.

If you want to though, here's how I see it playing out. You will see a sharp "correction" in real estate prices in 2007: a large number of interest only loans will baloon to higher payments, an increase in default rates and over inflated housing prices caused by speculation rather than true demand will bring the housing market to it's knees. This probably wont be a soft landing, you'll see many people become over under on their loans, and blammo. I imagine that will have a pretty signficant ripple effect on consumer confidence (when your neighbor gets evicted cause his baloon loan was a retarded idea and he cant refinance because the house is now worth less than the mortgage he seeks) - thereby restricting spending and sending us into a recession sometime, probably, in mid 2008.

Thats why my place is going on the market for sale now.

Kudos [?]: 2163 [1], given: 7

Intern
Joined: 18 Apr 2012
Posts: 5

Kudos [?]: 6 [1], given: 5

Concentration: Marketing, General Management
GMAT 1: 710 Q48 V40
GPA: 3.62

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05 Jun 2012, 21:47
1
KUDOS
rhyme wrote:
As to the question of an up or down market, I don't worry about it. An MBA education will be sufficiently mutable so as to ensure that, at some point, I move into the area I'd seek to move into. There's just no point in trying to guess it.

If you want to though, here's how I see it playing out. You will see a sharp "correction" in real estate prices in 2007: a large number of interest only loans will baloon to higher payments, an increase in default rates and over inflated housing prices caused by speculation rather than true demand will bring the housing market to it's knees. This probably wont be a soft landing, you'll see many people become over under on their loans, and blammo. I imagine that will have a pretty signficant ripple effect on consumer confidence (when your neighbor gets evicted cause his baloon loan was a retarded idea and he cant refinance because the house is now worth less than the mortgage he seeks) - thereby restricting spending and sending us into a recession sometime, probably, in mid 2008.

Thats why my place is going on the market for sale now.

Has anybody else seen this since it was posted? This is absolutely uncanny and I am utterly amazed.

Kudos [?]: 6 [1], given: 5

Manager
Joined: 27 Jul 2006
Posts: 161

Kudos [?]: 8 [0], given: 0

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18 Jan 2007, 11:19
Weird... I was thinking about this same exact thing today. Pelihu stated earlier Columbia ED was up almost 17% , even thought this is technically a strong job market. (Hopefully Columbia drops 17% next year when I will probably apply!)

Maybe more career changers are applying? Their odds would be better of getting a job in a new career field if companies are hiring more people. Just a thought...

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Manager
Joined: 11 Jan 2007
Posts: 202

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18 Jan 2007, 11:28
My issue is, how will the job market be in 2 years time... This may be a problem specially for the students getting loans for the MBA.

I believe the market is on a upside right now, I'm a little bit afraid the economic cycle may take a turn in 2 years time. (but well I know I won't think about this if I get an offer for a top school). LOL

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SVP
Joined: 31 Jul 2006
Posts: 2302

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Schools: Darden

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18 Jan 2007, 11:46
I believe application volume is up at many of the top schools this year. I think there are several explanations.

First, GMAT test volume is not up that much this year, so I think the natural conclusion is that each person is applying to more schools. That would result in an increase in the number of applications that schools receive without much change in the number of applicants.

The other thing is that applications from countries other than the US seem to be up quite a bit. So, the economy is pretty good here in the US, and US applications are relatively flat compared with the last couple years (way lower than 2003). I think the application volume correlates with the economy in this case. But it's harder to pin down the relation between foreign applicants and the economy.

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Senior Manager
Joined: 03 Jul 2006
Posts: 480

Kudos [?]: 20 [0], given: 0

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18 Jan 2007, 12:25
antapple wrote:
My issue is, how will the job market be in 2 years time... This may be a problem specially for the students getting loans for the MBA.

I believe the market is on a upside right now, I'm a little bit afraid the economic cycle may take a turn in 2 years time. (but well I know I won't think about this if I get an offer for a top school). LOL

My thoughts exactly. The 09 job market has me freaked out a lot more than the present job market. It's scary to think about what would happen if we hit a recession in 09.

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Manager
Joined: 11 Jan 2007
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18 Jan 2007, 12:58
But of course one that fears and doesnt dare, won't go anywhere!
Ah... (just made that up I guess, unfourtunately I already applied to some schools, maybe I'll put this phrase somewhere if I get an interview)...

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Manager
Joined: 20 Feb 2005
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18 Jan 2007, 21:50
Quote:
I believe application volume is up at many of the top schools this year. I think there are several explanations.

Application volumes are up everywhere and not merely for top schools. I have enquired from 2 transelites and 1 near elite. Some of them have a 40% app increase this yr!

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GMAT Club Legend
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

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Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45

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19 Jan 2007, 05:03
imjimmy wrote:
Quote:
I believe application volume is up at many of the top schools this year. I think there are several explanations.

Application volumes are up everywhere and not merely for top schools. I have enquired from 2 transelites and 1 near elite. Some of them have a 40% app increase this yr!

Ross publicly reported a 50% jump in R1 Volume. Cornell had such an increase they had to extend R2 and supposedly barely made it through R1. The GSB hasn't come out with figures either, but have commented that "this was a very competitive year".

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Manager
Joined: 11 Jan 2007
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19 Jan 2007, 05:47
We're at that stage here in portugal.
And that's exactly my job, I work with non performing resedential loans, relationship management and investment options analysis.
My firm buys and is also a servicer for top investment banks, and its up to us to manage these types of loans, and when the houses are sold at judicial auctions I have to decide upon making offers, waiting for someone to make an offer that is enough to cover my npv or just try and postpone the auctions so that "out of the court" resolutions become plausible (in portugal at least, judicial sales give a 30% discount to real estates in order to stimulate the buy side).

And my thoughs are that this situation is getting worse everyday.

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Director
Joined: 07 Aug 2006
Posts: 572

Kudos [?]: 6 [0], given: 0

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19 Jan 2007, 06:04
Quote:
My thoughts exactly. The 09 job market has me freaked out a lot more than the present job market. It's scary to think about what would happen if we hit a recession in 09.

This is the main reason why I'm even considering taking advantage of my company's b-school sponsorship option. I don't really want to go back, but I could also do alot worse if the job market really tanks.

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Director
Joined: 07 Aug 2006
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19 Jan 2007, 06:08
Quote:
First, GMAT test volume is not up that much this year, so I think the natural conclusion is that each person is applying to more schools. That would result in an increase in the number of applications that schools receive without much change in the number of applicants.

Lets hope so.

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GMAT Club Legend
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Joined: 05 Apr 2006
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Schools: Chicago (Booth) - Class of 2009
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19 Jan 2007, 08:03
dukes wrote:
Quote:
My thoughts exactly. The 09 job market has me freaked out a lot more than the present job market. It's scary to think about what would happen if we hit a recession in 09.

This is the main reason why I'm even considering taking advantage of my company's b-school sponsorship option. I don't really want to go back, but I could also do alot worse if the job market really tanks.

My firm pays - but a pathetic amount - only \$5,000 a year - which is frankly basically nothing - and only if I'm part time.

In some respects I sometimes question my decision to go FT, because I know that I'll probably only make \$10 to \$20K more out of school than I do now, but theres really no other way to career switch.

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Director
Joined: 07 Aug 2006
Posts: 572

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19 Jan 2007, 08:19
Quote:
My firm pays - but a pathetic amount - only \$5,000 a year - which is frankly basically nothing - and only if I'm part time.

In some respects I sometimes question my decision to go FT, because I know that I'll probably only make \$10 to \$20K more out of school than I do now, but theres really no other way to career switch.

I hear ya. By the time I actually start school, its going to be much more about the additional opportunities than the ROI. When I started thinking about b-school it was as much about enhanced lifestyle and income as it was about career and opportunity.

Ironically, if I came back to my company I'd probably get huge pay bump because I'd come in at a level or two above what new MBA hires come in at. My only worry with going the sponsorship route is that I may become complacent and ultimately settle. At the same time I'd prefer coming back to my current employer over taking an industry job so I might as well keep it as an insurance policy.

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Manager
Joined: 03 Feb 2010
Posts: 181

Kudos [?]: 29 [0], given: 34

Concentration: Strategy
Schools: Northwestern (Kellogg) - Class of 2014
WE: Marketing (Computer Hardware)

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07 Jun 2012, 06:02
Heisman wrote:
rhyme wrote:
As to the question of an up or down market, I don't worry about it. An MBA education will be sufficiently mutable so as to ensure that, at some point, I move into the area I'd seek to move into. There's just no point in trying to guess it.

If you want to though, here's how I see it playing out. You will see a sharp "correction" in real estate prices in 2007: a large number of interest only loans will baloon to higher payments, an increase in default rates and over inflated housing prices caused by speculation rather than true demand will bring the housing market to it's knees. This probably wont be a soft landing, you'll see many people become over under on their loans, and blammo. I imagine that will have a pretty signficant ripple effect on consumer confidence (when your neighbor gets evicted cause his baloon loan was a retarded idea and he cant refinance because the house is now worth less than the mortgage he seeks) - thereby restricting spending and sending us into a recession sometime, probably, in mid 2008.

Thats why my place is going on the market for sale now.

Has anybody else seen this since it was posted? This is absolutely uncanny and I am utterly amazed.

wow, rhyme was spot on, he not only predicted it correctly, but the timing was impeccable.

Kudos [?]: 29 [0], given: 34

Director
Joined: 26 May 2010
Posts: 719

Kudos [?]: 206 [0], given: 642

Location: United States (MA)
Concentration: Strategy
Schools: MIT Sloan - Class of 2015
WE: Consulting (Mutual Funds and Brokerage)

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07 Jun 2012, 12:03
Jacksparrow1906 wrote:
Heisman wrote:
rhyme wrote:
As to the question of an up or down market, I don't worry about it. An MBA education will be sufficiently mutable so as to ensure that, at some point, I move into the area I'd seek to move into. There's just no point in trying to guess it.

If you want to though, here's how I see it playing out. You will see a sharp "correction" in real estate prices in 2007: a large number of interest only loans will baloon to higher payments, an increase in default rates and over inflated housing prices caused by speculation rather than true demand will bring the housing market to it's knees. This probably wont be a soft landing, you'll see many people become over under on their loans, and blammo. I imagine that will have a pretty signficant ripple effect on consumer confidence (when your neighbor gets evicted cause his baloon loan was a retarded idea and he cant refinance because the house is now worth less than the mortgage he seeks) - thereby restricting spending and sending us into a recession sometime, probably, in mid 2008.

Thats why my place is going on the market for sale now.

Has anybody else seen this since it was posted? This is absolutely uncanny and I am utterly amazed.

wow, rhyme was spot on, he not only predicted it correctly, but the timing was impeccable.

And here I was about to indignantly chastise someone for resurrecting a five-year old thread, but wow... that was eery...

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Director
Status: Can't wait for August!
Joined: 13 Sep 2011
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Location: United States (MA)
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WE: Information Technology (Retail)
Re: Job Market and MBA's [#permalink]

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07 Jun 2012, 12:12
I will now officially follow every single word of advice rhyme reccomends in his BSchool App Guide

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Re: Job Market and MBA's   [#permalink] 07 Jun 2012, 12:12
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# Job Market and MBA's

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