Back to school: Layoffs spark increase in students enrolled in masters' programs

Increasing fear of layoffs has sparked fierce job competition in nearly every occupational field. Seeking job security and higher salaries, more adults are returning to school for their graduate degree.

"People are continuing to try to increase their value to their employers. Having an MBA is one of the quickest ways to substantiate value to the employer," says Dr. Kenneth Heischmidt, director of the MBA program at Southeast Missouri State University. He reports that admission to the school's MBA program is up 25 to 30 percent from last year, while actual enrollment is up about 25 percent.

Heischmidt says MBA students at Southeast are a combination of adults coming back for a higher degree, and students who are "staying around" to build on their four-year degree. Many adults hope to retain their current position, but seek a "higher income capability" with an MBA. Heischmidt has also noticed that more students are having trouble finding jobs and are staying in school to obtain a higher, more competitive degree.

Whatever the reasoning, it's clear that education is crucial to survival in tough economic times, and Heischmidt expects the trend to continue.

Three years ago, the university added an online MBA program, which currently has about 40 or 45 students enrolled. Heischmidt says that the biggest factors keeping a person from obtaining an MBA are time constraints and distance. The online program allows students to continue working and also take classes on their own schedule.

"It's the same instructors and the same program, but with a different delivery," says Heischmidt.

Dr. Suresh Tadisina, associate dean for the College of Business at Southern Illinois University in Carbondale, Ill., also reports an increase in returning adult students. He says that while it's still early in the MBA application process, he has already noticed more adults applying for the MBA program, as well as the doctoral program for business administration. There may be a number of reasons involved, but he believes this increase is at least in part a direct result of the economy.

"Is it a trend? I'm not sure, but it is a market factor," says Tadisina. "Generally, graduate programs follow economic cycles. As the economy goes down, enrollment in graduate programs goes up. Once the economy picks up steam, I believe we will fall back down in enrollment."

When considering an MBA program, Heischmidt says it's important to make sure the program is accredited by the Association to Advance Collegiate Schools of Business (AACSB). Some employers will only pay for an employee's MBA courses if they are AACSB-accredited, and others will only hire people who graduated from an accredited program. The MBA programs at both Southeast Missouri State and at Southern Illinois University are accredited by the AACSB.