What Every College Student Needs to Know About Jobs and Money

Everyone has their own definition of what it means to be highly paid. But picking the right occupation can dramatically impact your annual earnings: most software developers are highly paid, but not so for marriage and family therapists. The Bureau of Labor Statistics (BLS) collects information on employment and wages by occupation. Let’s look at what this treasure trove of information tells us about jobs and money. It is particularly important for young adults to be aware of this type of information so they can make informed decisions about college majors and career paths.

What does the ‘average person’ make a year? Employees in the United States were paid on average $48,320 in 2015. This includes base salary, bonuses, tips, commissions, or any other incentive pay for which they were eligible. The median annual pay was much less at $36,200. The median is the amount that divides all employees into two equal groups, with half earning more than that amount, and half earning less than it. The median is lower than the average annual pay because a small number of highly paid employees push the average up.

How many jobs are in occupations where most workers get paid at least $75,000? The BLS estimates that 137.9 million people were full-time or part-time wage and salary workers in 2015. But only 15.8 million of them worked in occupations where the median annual income was at least $75,000. Put another way, only 11.4 percent of employees work in high-wage occupations. Because the pool of high-paying jobs is quite small, competition to get one and remain in that occupation is generally quite intense.   

What are the high wage occupation categories? The BLS collects data on over 800 occupations, which aggregate up into 22 top-level occupation categories. The 5 top-level categories with the most jobs in occupations with a median annual income of at least $75,000 are: management occupations; computer and mathematical occupations; architecture and engineering occupations; legal occupations; and life, science, and social science occupations. These 5 categories represent 76 percent of the high-wage jobs. As shown in the chart below, while the other 17 top-level occupation categories employ a lot of people, they are not great places to look for high paying jobs.

What Every College Student Needs to Know About Jobs and Money

Which specific occupations have the most high-paying jobs? There were 122 occupations in the BLS survey were the median annual wage in 2015 was at least $75,000. All of these occupations are included in the PowerPoint presentation included below. It is probably a good idea for parents and grandparents to encourage the young adults in their lives to review this presentation so they can make informed decisions about college majors and which occupations to pursue.


DISCLAIMER:  This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here. This is presented for informational or educational purposes only and does not constitute a recommendation to buy/sell any security investment or other product, nor is this an offer or a solicitation of an offer to buy/sell any security investment or other product. Any opinion or estimate constitutes that of the writer only, and is subject to change without notice. The above may contain information obtained from sources believed to be reliable. No guarantees are made about the accuracy or completeness of information provided. Past performance is no guarantee of future results.