Unveiling the Earning Potential: Average Salaries and the Impact of a Diploma

The value of education is often measured by its impact on earning potential and career prospects. This article delves into the average salaries associated with different levels of educational attainment, focusing on the financial advantages conferred by a high school diploma, associate's degree, bachelor's degree, master's degree, professional degree, and doctorate. By examining data from various sources, including the Bureau of Labor Statistics (BLS) and the National Center for Education Statistics, we aim to provide a comprehensive overview of how education influences income and overall financial well-being.

The Correlation Between Education and Earnings: An Overview

For 25- to 34-year-olds who worked full time, year round, those who had higher educational attainment also had higher median earnings in 2022. In 2022, the median earnings of those with a master’s or higher degree ($80,200) were 20 percent higher than the earnings of those with a bachelor’s degree ($66,600) as their highest level of attainment. This pattern of higher education leading to higher earnings holds true across different demographics, including gender and race, although disparities persist.

Full-Time Employment Rates

In 2022, some 76 percent of 25- to 34-year-olds in the labor force worked full time, year round. This percentage was generally higher for those with higher levels of educational attainment. For example, 80 percent of labor force participants in this age group who had a bachelor’s degree as their highest level of educational attainment worked full time, year round in 2022, compared with 73 percent of those who completed high school as their highest level of educational attainment.

Impact of the Coronavirus Pandemic

Prior to the coronavirus pandemic, the percentage of 25- to 34-year-olds in the labor force who worked full time, year round had been increasing at all levels of educational attainment. These trends were disrupted during the pandemic. From 2019 to 2020, full-time, year round employment rates fell for 25- to 34-year-olds at all educational attainment levels except those with a master’s or higher degree (for whom the rate was not measurably different). By 2022, full-time, year round employment rates had rebounded, and there was no measurable difference at any attainment level compared with 2019. Full-time, year round employment was also higher in 2022 than in 2020 for those with a master’s or higher degree.

Earnings by Educational Attainment: A Detailed Breakdown

To understand the specific financial benefits associated with each level of education, let's examine the average salaries and earnings data for different educational categories.

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Less Than a High School Diploma

Workers with less than a high school diploma are the lowest earners on average when you examine the average salary by education level. According to data from the Bureau of Labor Statistics (BLS), median weekly earnings in 2024 for those with less than a high school degree was $738. That works out to $38,376 per year, assuming a year of constant earning. The unemployment rate in 2024 for Americans with less than a high school diploma was 6.2%.

High School Diploma

Earnings are higher for those with a high school diploma. Median weekly earnings for workers with a high school diploma but no college was $930. That works out to $48,360 per year. The unemployment rate for those with a high school diploma is 4.2%. The average salary of a high school graduate in the United States is around $42,590 per year, or $20 an hour.

The Long-Term Financial Impact of a High School Diploma

The financial impact of a high school diploma extends far beyond immediate earnings. Over a lifetime, the cumulative benefits can be substantial.

From age 18 to age 65, that is a span of 48 years in the workforce, assuming retirement at 65. If an individual earns an additional $7,809 every year due to their high school diploma, the total accumulates as follows: 48 years x $7,809/year = $374,832 Over nearly five decades, a person with a high school diploma could potentially earn an additional $374,832 compared to someone without that diploma. This is not just a number; it is a potential home purchase, numerous vacations, a substantial retirement nest egg, or even funds for a child's education. This projection underscores the profound long-term impact of securing a high school diploma, both in terms of financial stability and the associated life opportunities it can provide.

Some College, No Degree

Having some college credits but no degree still improves your earnings over having just a high school diploma. The average salary of someone with some college and no degree is $1,020 per week or $53,040 per year. The unemployment rate for people in this category is 3.8%. The problem for many people in the some-college-no-degree category is that they have student debt from their college days but lack the degree that would bump them into a higher earning category that could help them get out of debt.

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Associate's Degree

Having an associate’s degree gives you an edge over someone with no degree, but lower average earnings than someone with a bachelor’s degree. Median weekly earnings for workers with an associate’s degree are $1,099, for an annualized salary of $57,148. The unemployment rate in this category is 2.8%, which is lower than the average across all educational attainment levels (3.3%). Nationally, median wages for jobs requiring an associate’s degree have grown by over 13% from 2019 to 2023-rising from $54,940 to $62,270-and increased by 3.5% between 2022 and 2023. Some states have seen even more dramatic jumps, with Montana (+12.21%), Tennessee (+12.15%), and Idaho (+11.74%) leading the nation in associate degree wage growth year over year between 2022 and 2023. In the National Capital Area, Maryland saw a strong 9% wage increase for associate degree holders between 2022 and 2023, while D.C.

Bachelor's Degree

Americans with a bachelor’s degree earn a weekly average of $1,543. Average earnings for workers with bachelor’s degrees work out to $80,236 per year. The unemployment rate for Americans with a bachelor’s degree is 2.5%. The average salary of a Bachelor’s degree which is $59,600.

Master's Degree

Median earnings for holders of master’s degrees are $1,840 per week, $95,680 per year. The unemployment rate for workers with master’s degrees is 2.2%. The number of Americans with a master’s degree has been steadily rising. In part, that’s because of the “wage premium” that comes with a graduate degree. That wage premium is the extra money that those with a master’s degree have relative to those who only have a bachelor’s degree.

Professional Degree

Workers with a professional degree earn a median weekly salary of $2,363, the highest weekly earnings of any of the educational categories. That works out to $122,876 per year. The unemployment rate for holders of professional degrees is 1.3%. Their tax bracket puts them at a 24% rate.

Doctorate

You might think that Americans with a doctorate would earn more than those with a professional degree, but in fact they earn less. Median weekly earnings for workers with doctorates are $2,278. Annualized, that’s $118,456. The unemployment rate for Americans with doctorates is the lowest on the list at 1.2%.

Regional Variations in Earnings for High School Graduates

While a college degree generally leads to higher earnings, the income gap between high school and college graduates varies by state. The value of a high school diploma can differ significantly based on location.

States Where a High School Diploma Offers the Greatest Financial Returns

North Dakota: High school graduates earn a median annual wage of $48,400, but with the state’s low cost of living (index: 88.6), their income has an effective purchasing power of $54,628-the highest in the nation. High school graduates earn 65.1% of bachelor’s degree wages ($48,400 vs.
Wyoming: High school graduates earn 64.6% of bachelor’s degree wages ($47,650 vs.
South Dakota: High school graduates earn 63.4% of bachelor’s degree wages ($42,410 vs.
Montana: High school graduates earn 62.3% of bachelor’s degree wages ($44,760 vs.
Iowa: High school graduates earn 61.3% of bachelor’s degree wages ($45,760 vs.

In North Dakota and Wyoming, high school graduates earn over 65% of what their college-educated counterparts make, making these states some of the best for diploma holders in terms of wage equity. A higher percentage means diploma holders are closer in earnings to college graduates, reducing the economic divide.

States with Lower Returns for High School Graduates

Florida: Ranks last, where a high school graduate’s median annual wage of $42,100 is undercut by a high cost of living (index: 103.5), leaving an adjusted wage of just $40,676.
California: Where high school graduates earn a median wage of $47,410, the sky-high cost of living (index: 112.6) brings their adjusted income down to $42,105.
Mississippi: Despite its lower living costs (index: 87.3), still ranks among the worst states due to its low median annual wage for high school diploma holders ($36,940), resulting in an adjusted wage of $42,314.

Wage Growth for High School Graduates

Nationally, median wages for jobs requiring only a high school diploma increased by nearly 20% across industries from 2019 to 2023 and grew by over 7% between 2022 and 2023. Arizona leads the nation in wage growth for high school graduates, with a 12.29% increase in just one year. This suggests a growing demand for workers in industries that don’t require a college degree. Nebraska and North Carolina round out the top five, with wage growth near 9%.

Alternative Career Paths and Industries for High School Graduates

Alternative career paths like associate degrees, apprenticeships, and skilled trades are becoming increasingly viable options for economic mobility.

High-Paying Industries for High School Graduates

For high school graduates looking for high-paying career paths, several industries offer strong earning potential without requiring a college degree.

Utilities: Lead the way, with a median annual wage of $84,710, making it the most lucrative industry for high school diploma holders.
Mining, quarrying, and oil and gas extraction: Follow at $61,890.
Construction: Offers solid wages at $58,950.
Information technology: Also ranks among the top, with median earnings of $57,370.

Job Availability

Beyond wages, job availability plays a key role in economic mobility for diploma holders. In Kentucky, Indiana, Mississippi, and Wisconsin, over 41% of all jobs require no more than a high school diploma-the highest percentage in the nation. For comparison, the national average is 37.4%, while in states like Maryland and Massachusetts, it drops to 33%.

Gender and Racial/Ethnic Disparities in Earnings

The pattern of those with higher educational attainment having higher median earnings held, in general, for both male and female 25- to 34-year-olds who worked full time, year round in 2022. However, the median earnings of males were higher than the median earnings of their female peers at all levels of educational attainment. For example, the median earnings of males with a bachelor’s degree ($75,100) were 23 percent higher than those of their female peers ($60,800). The median earnings of males who completed high school ($46,400) were 26 percent higher than those of their female peers ($36,700).

In general, the median earnings of Asian and White 25- to 34-year-olds who worked full time, year round exceeded the corresponding median earnings of their Black and Hispanic peers at most educational attainment levels in 2022.

The Broader Benefits of Higher Education

Of course, a college education is about more than just securing a job and a steady income. Bachelor’s degree holders are 47 percent more likely to have health insurance provided through their job and their employers contribute 74 percent more to their health coverage. Life expectancy is also longer for those who attend college. In addition to having higher earnings and better job benefits, college graduates are more likely to own a home and less likely to be in poverty or need social services.

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