Company Hiring By Industry Worldwide
Surprising, too, is the strength of the job market across every industry that hires MBAs. Still, the biggest year-over-year increases appear to be in consulting, where 84% of employers plan to hire MBAs, up 13 percentage points from 71% last year, and health care and pharma, where 90% of the companies expect to hire MBA grads this year, up 19 percentage points from 81% in 2013 (see table at left).
Finance and accounting, an area hit especially hard during the recession due to cutbacks on Wall Street, appears to be in a strong rebound. Some 82% of employers in finance and accounting expect to hire MBAs in 2014, up six percentage points from 76% in 2012. The smallest increase is in technology where 74% of the firms plan to hire, up just slightly from 73% a year earlier.
BIG BOOST IN ASIA/PACIFIC HIRING
The area of the world with the greatest growth rates in hiring business school graduates this year is Asia Pacific, according to the study. GMAC said that MBAs remain the “most sought after” business degree candidates. Some 83% of responding companies in Asia Pacific plan to hire MBAs this year, up from only 70% in 2013.
The percentage increases are even more impressive for non-MBA grads. Some 68% of Asian Pacific employers expect to hire Masters in Management grads, up from 52% last year. About 53% of the companies said they will hire Master of Accounting grads, up from 39% in 2013. And 57% will hire Master of Finance graduates, up from 40% last year.
What’s more, 62% of companies in the Asia Pacific said they plan to increase base salaries for MBA hires this year. In contrast to the $95K median in the U.S., GMAC said the median base MBA salary for this region of the world is expected to be $21,340, a result of much lower per capita income in India and the Philippines where a major of the responding companies were located. Per capital income in India is $4,307 and in the Philippines it is $4,962.
In Europe, it’s also a positive story. Some 61% of companies–much lower than the 86% in the U.S.–expect to hire MBAs this year. But that percentage is far healthier than last year’s 52% level. About 46% of European companies said they plan to hire Master of Accounting graduates, up from 33% in 2013. MBA graduates in Europe this year can expect median starting base salaries of $69,000. The expected median MBA salary reported by employers located in the 13 countries of Western Europe is $83,000. The majority of European companies (64%) told GMAC they plan to maintain their MBA pay in 2014 with last year’s salary levels.
“With the global economy moving forward at more solid pace in 2014, we’re pleased to see that 80 percent of companies intend to recruit MBAs this year, that salary gains are being realized for MBAs in regions such as Asia-Pacific, and that industries such as consulting have been increasing recruitment since last year,” said Mark Peterson, president of the MBA Career Services & Employer Alliance and director of graduate business career services at Iowa State College of Business. “These are all positive signs for MBA graduates and talent in the pipeline.”
Bottom line: This year will be one of the best ever to graduate with an MBA degree, no matter what you want to do.