Average College Graduate Salaries

Last updated Sep. 5, 2024 by Charles Zemub

Average College Graduate Salaries

Education is an investment that has the potential to yield significant returns. One of the primary motivators for attending college is the possibility of earning a higher salary post-graduation. However, the salary a recent graduate can expect varies greatly based on factors such as the chosen field of study, the industry of employment, the geographic location, and the level of degree obtained. This article dives deep into understanding what average college graduate salaries look like across different majors and industries, how these salaries have trended over time, and other vital considerations.

The Impact of College Major on Salary

One of the most significant factors influencing a college graduate’s salary is their field of study. Some disciplines are known to command higher starting salaries due to high demand and specialized skill sets. Here are some common majors and their average starting salaries:

STEM (Science, Technology, Engineering, and Mathematics):

1. Engineering: Engineering graduates are among the highest earners fresh out of college. Specializations like petroleum engineering, electrical engineering, and computer engineering can secure starting salaries upwards of $70,000.

2. Computer Science: Graduates in this rapidly growing field can expect starting salaries ranging from $65,000 to $80,000, reflecting the high demand for tech professionals.

3. Mathematics and Statistics: Though not as immediately lucrative as engineering or computer science, mathematics and statistics graduates often secure starting salaries between $55,000 and $75,000.

Business and Economics:

1. Economics: Economics graduates can expect starting salaries in the range of $50,000 to $70,000, though this can quickly increase with experience.

2. Finance: Those entering finance often start with salaries between $55,000 and $65,000, with significant potential for growth.

Healthcare Fields:

1. Nursing: Registered nurses with a Bachelor of Science in Nursing (BSN) often have starting salaries around $60,000 to $70,000 due to the high demand for healthcare professionals.

2. Pharmacy: Pharmacy graduates typically start at around $120,000, reflecting the specialized nature of the field.

Liberal Arts and Humanities:

1. Communications: Graduates in this field may start with salaries ranging from $30,000 to $50,000.

2. English: Starting salaries for English majors are often on the lower end, between $30,000 and $45,000, though they can vary widely based on specific job roles.

Education:

1. Elementary and Secondary Education: Education majors typically start with salaries ranging from $35,000 to $45,000, depending on the state and school district.

Industry-Wise Salary Expectations

The industry in which a graduate finds employment also plays a significant role in determining their salary. Industries like technology, finance, and healthcare tend to offer higher starting salaries compared to fields like education or social services.

• Technology: As previously highlighted, tech companies often offer competitive salaries to attract top talent, with many entry-level positions exceeding $70,000.
• Finance and Consulting: Firms in these sectors also offer lucrative starting packages, often including bonuses, with starting salaries typically between $60,000 and $80,000.
• Healthcare: Roles in healthcare vary widely, but many positions, particularly those requiring specialized training or degrees, offer strong starting salaries over $60,000.
• Education: Despite its critical societal role, the education sector generally offers lower starting salaries, typically ranging from $35,000 to $50,000 for teachers and educators.

Geographic Variation in Salaries

Location significantly impacts salary expectations, as the cost of living and demand for specific skill sets vary across regions. Graduates in metropolitan areas often earn higher starting salaries to offset the higher living costs. For example:

• San Francisco, CA: Tech graduates can command higher salaries here, often starting around $90,000 due to the high demand and cost of living.
• New York City, NY: Finance and consulting firms in NYC often offer starting salaries of $70,000 to $90,000.
• Austin, TX: Known as a burgeoning tech hub, Austin offers competitive starting salaries, averaging around $70,000 for tech roles, with a relatively lower cost of living compared to Silicon Valley.

Degree Level Considerations

The level of degree obtained also affects earning potential. Higher degrees typically lead to higher salaries but also require a significant upfront investment of time and money.

1. Bachelor’s Degree: Provides a solid entry point with competitive starting salaries, though not as high as advanced degrees.
2. Master’s Degree: Often leads to higher starting salaries and quicker promotional opportunities. Fields like Business Administration (MBA) and Engineering see significant salary increases with a master’s degree.
3. Doctoral Degree: Essential for certain fields like academia, research, and specialized scientific roles, often commanding the highest salaries.

Trends and Projections

The job market continually evolves, and salary trends for college graduates are no exception. The last decade has seen fluctuations due to economic conditions, technological advancements, and shifting industry demands.

• Technological Advancements: Fields such as artificial intelligence, data science, and cybersecurity have seen salary surges due to high demand.
• Economic Factors: Economic downturns and recoveries significantly affect hiring trends and salary offers. For instance, the COVID-19 pandemic saw a temporary dip in starting salaries and hiring rates, which are now recovering.
• Remote Work: The increasing acceptance of remote work has broadened opportunities and can affect salary averages by reducing the reliance on high-cost living areas.

Closing Thoughts

Understanding the average salaries of college graduates can help prospective students make informed decisions about their education and career paths. While higher education often leads to better earning potential, it’s crucial to consider personal interests, job satisfaction, and the overall job market trends.

FAQs

What is the average starting salary for a college graduate in the US?

The average starting salary for a college graduate in the US varies but is generally around $50,000 to $60,000 annually, depending significantly on the field of study and location.

Which college majors tend to have the highest starting salaries?

Majors in engineering, computer science, and certain healthcare fields such as pharmacy tend to have the highest starting salaries, often exceeding $70,000.

How does geographic location affect starting salaries?

Salaries tend to be higher in metropolitan areas with high living costs and demand for specific skills, such as San Francisco for tech roles or New York City for finance.

Can a higher degree level significantly impact starting salary?

Yes, higher degrees like master’s or doctoral degrees typically result in higher starting salaries and better career advancement opportunities.

How have recent trends like remote work affected graduate salaries?

Remote work has broadened job opportunities and can affect salary averages by reducing the reliance on high-cost living areas, enabling some employers to offer more competitive salaries to attract talent from diverse locations.