Not even an MBA can save Gen Z and they know it—now U.S. business school applications have plunged 25% as job prospects dim

Applications to U.S. graduate business programs dropped 25% in 2026, according to data the Graduate Management Admission Council released Tuesday. That’s the sharpest fall in nearly a decade, and it wipes out two years of gains. The mix behind it is messy: economic uncertainty, visa shifts, and geopolitical tension are all in play. But GMAC says the economy is doing the most damage by far.

The numbers back that up. Ninety percent of surveyed graduate business programs said economic changes — including recession fears, layoffs, and a weaker job market — affected application volume. Seventy-three percent said the effect was major or moderate, the highest share for any factor. Normally, a rough job market sends people back to school. This time, the cost of waiting out the downturn seems to be making Gen Z think twice.

The pressure is showing up in MBA programs too. Two-thirds of full-time MBA programs worldwide reported declines, and applications fell 13% year over year. But the decline isn’t even. Highly selective programs with acceptance rates below 40% saw applications fall 9%, while schools admitting more than 85% of applicants saw a 21% drop. The safer bet, at least on paper, is holding up better.

That tracks with the payoff at the top end. Across the elite M7 schools — Harvard, Columbia, Stanford, Northwestern Kellogg, MIT Sloan, Penn Wharton, and Chicago Booth — about 90% of 2025 graduates who wanted jobs got offers. Median base pay for those who accepted was at least $175,000 at each school. And yet tuition at some top MBA programs now tops $300,000, which makes the math a lot less romantic.

The doubt isn’t limited to students, either. JPMorgan Chase CEO Jamie Dimon has said elite schools and strong grades do not automatically produce great workers. Standard Chartered CEO Bill Winters went further, calling his own later MBA a waste of time. GMAC chief Joy Jones says business schools need to be much clearer about what the return on investment actually is, especially for a generation that wants stability, flexibility, and proof up front.