The United States, long the top destination for graduate management education, saw a sharp decline in application intent among global business school aspirants in 2025 amid policy concerns and shifting preferences.
According to the Graduate Management Admission Council (GMAC) Prospective Students Survey 2026, findings of which were made public on Tuesday, the share of candidates planning to apply to US programmes fell to 52% by the fourth quarter of 2025 from 63% in the first quarter of the year. The decline was even starker among candidates from Central and South Asia, where intent to apply to US schools plunged 23 percentage points to 49% from 72% during this period.
While the US remained the single-most preferred destination overall, its lead narrowed, as per the survey based on responses from 4,253 prospective graduate management education candidates across 145 countries, collected during 2025.
Among non-US candidates, preference for studying in the US fell six percentage points in 2025, even as Western Europe gained ground. The shift reflects a broader redistribution of global talent flows, with candidates increasingly diversifying their application portfolios across Europe, Asia and emerging hubs, the survey showed.
A key driver appears to be geopolitics. In 2025, non-US candidates reported being increasingly deterred by US government policies and practices, including visa uncertainties and economic measures.
Besides, candidates’ motivations for pursuing management education saw a shift. As many as 72% of prospective students cited gaining business knowledge as a key motivation, overtaking even income growth. In contrast, the share seeking career switches fell sharply to 42% in 2025 from 58% in 2022.
“We’re seeing more candidates who no longer view graduate management education as a broad career reset, but as a targeted investment in specific skills, geographic opportunities, and measurable outcomes,” GMAC CEO Joy Jones said in a statement.
She further said, “Prospective students are more discerning than ever-closely scrutinising multiple dimensions of programme fit, evaluating geopolitical and policy dynamics, and weighing financial risk against expected ROI (return on investment). In an increasingly volatile job market, they’re prioritising durable skillsets that help them fortify their careers rather than pivot entirely.”
This growing emphasis on return on investment is also reflected in candidate behaviour. Career outcomes and ROI remained the most researched aspects across degree types, while interest in programme rankings declined.
Cost continued to be the biggest barrier globally, cited by 46% of candidates, followed by lack of financial aid and not getting into their preferred school (26% each) and concerns over job prospects (20%). Early-stage candidates-those more than two years away from applying-were particularly sensitive to cost, time commitment and potential career disruption.
Meanwhile, programme preferences evolved. While MBA remained popular among 25-30-year-olds, younger candidates increasingly favoured specialised business master’s programmes. Interest in artificial intelligence (AI) also surged, with half of the candidates expecting AI tools to be part of their learning experience, up from just 17% in 2022.
The survey also flagged structural shifts in access and inclusion. Women and first-generation candidates planned to submit fewer applications and exhibit higher price sensitivity, while a 12-point gender gap in preference for full-time, in-person study, the widest since at least 2019, highlighted growing demand for flexible learning formats.
