The Application Process

As we all know US economy is in recession, some of my friends from India find it difficult to cling on to a job now in US . My questions is,

Is there any realistic timeframe until when this US recession would continue?

Is it the right time to do an MBA in US?

If there is anyone in dilemma of US MBA, please post your question and suggestions here....

Arun,

I'm from South Africa and would like to know the same thing. Firstly, I believe that the qualification can never be taken away from you , so MBA is still a good option.

The problem I forsee is that you, as a graduate, will be competing with MBA's with experience that lost their jobs in this recession.

As with my friends in the UK, the companies let the non-UK residents go first.

Nay comments by US based pre- and post-MBA's?

i dont thnk thrs a right or wrong time to do MBA...finally its abt knowledge....network...insight into business which u will gain...if apply this yr u will pass out in 2011 ( for 2 yrs course) and I challenge if any ANALYST IN THE WORLD can predict how market will be at tht point of time...an MBA degree will remain with you for ur whole life so thrs no point in postponig ur decisions

generally recessions in US last for 2-3 yrs but once again no claims no guarantee...

so go by wat u want to do in life how and when....

Another challenge to consider is the influx of MBA applicants as a result of the current US economic turmoil. The number of MBA applicants has greatly increased over the past year therefore competition has also increased. If you are planning to apply to a top US institution then I urge you to spend a significant amount of time on self assessment, school selection and of course, your application. Best of luck!

General question for friends from US -

I know tht thrs a major crisis with housing and subprime crisis and Lehman, AIG, Freddie, Fannie etc are in MAJOR trouble or are being bailed out by US govt !!

but hows the job scenario - are these co.s firing lot of people OR they have stopped hiring as of now !!

wat i understand tht Lehman & Goldman here in India have actuallly not fired many ppl n infact have sent assurance email to fresh graduates abt thr job being secured with them !!

thnks

Many people have lost jobs because of the economic crisis in the US and hiring has definitely slowed down. It is hard to predict how quickly the economy will rebound. Here is an article about the current state of jobs in the US.
https://www.boston.com/business/articles ... _picks_up/

the economy always changes very fast. Since when you come out of your MBA in a few years, mostly likely the economy will be very different from it today.

I have heard from several sources at top MBA programs that companies are canceling recruiting events and not making fulltime offers to interns. Most of these are in the banking sector, but have also heard similar stories in consulting and industry jobs.

N

As a current student at Wharton, I can say that recruitment season is still very active. I've heard of very few cancellations.

There is naturally more competition now, though. It could be that companies are still attending, but they're looking to fill less positions. Also, I think competition is increasing for consulting firms and other popular career paths.

The situation has certainly added stress to the recruitment process - some students had jobs locked up at banks with the biggest problems after last year's internships. Even so, though, many find themselves still holding onto their jobs but now working at a new place (e.g. Barclay's).

All in all, in my opinion, students are not overly pessimistic. Most are still working their way towards jobs while watching the crisis unfold.

From my perceptions, this is good time to study. Remember, universities respond to changing market scenario, so we can expect significant changes in the curriculum for the 2009 batch.
This would mean to make an MBA more attractive over time after the turmoil.
To put it short, now the economy is bad, so go back to school learn new stuff, and utilise the new skills then in a more stable economy.

Hi all,

Another point that probably hasn't been adressed so far is the downward trend in the salary of fresh MBAs. As the job market would be more competitive and economy sluggish, is it not normal to expect that average salaries for new MBA grads will go down.

Plus all the debate about cutting bonuses in bankng industry would also effect other industries (fianance had been the king of bonuses, as per my understanding. And with that cut to size, other industries can also cut down their bonuses. No more fear of loosing your best people to finance).

In short I feel that financial compensation for fresh MBAs would be lower as compared to last years. Do you agree? What happened in the last recession ?
While having a lower starting salary might not be a problem in the long term, but when you have a $70k loan to pay off then a difference of 10k per year can be important.

Should that not be an important point when considering to go for an MBA at the dawn of recession ?

Corey - thanks for the insight at Wharton. Interesting to hear that companies are still going thru with recruiting efforts Like you said, there might be less positions to fill, but at least the companies are maintaining relationships with the schools/students.

Regards,

NP