A report issued by the Federal Reserve Bank of New York highlighted the lowest-paying majors for recent college graduates. The study analyzed the labor market outcomes of college graduates by major.
Graduates with degrees in the following majors have the lowest median wages early in their careers, according to the Fed's report:
- Early Childhood Education: $40,000
- Social Services: $37,000
- Leisure and Hospitality: $38,000
- Elementary Education: $40,000
- Theology and Religion: $36,000
- Special Education: $40,000
- Performing Arts: $39,000
- Family and Consumer Sciences: $37,000
- Miscellaneous Education: $40,000
- Psychology: $37,400
The report also found that underemployment rates are high for many of the above majors. For instance, graduates with a degree in early childhood education face an underemployment rate of 24.5%. Similarly, social services majors have an underemployment rate of 27.7%, while performing arts majors have an underemployment rate of 64.0%.
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In contrast, graduates with degrees in STEM fields tend to earn the highest salaries early in their careers. For example, computer engineering majors have a median wage of $74,000, while chemical engineering majors have a median wage of $75,000.
The report also found that the median wage for all majors early in their careers is $50,000, which is $6,500 more than the median wage for the lowest-paying majors.
The study only looked at graduates who worked full-time, had a bachelor's degree, and were between the ages of 22 and 27. It's worth noting that salaries can vary widely based on location, experience, and other factors.
Despite the relatively low salaries associated with some of these majors, it's important to note that higher education still offers a significant return on investment.
College graduates tend to earn more over their lifetimes than those without a degree. Additionally, a college education can provide a wide range of non-financial benefits, including increased opportunities for personal and professional growth.
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