Science, technology, engineering, and mathematics (STEM) majors continue to be the highest-paying for U.S. college graduates, with a median early-career salary of US$80,000, according to the Federal Reserve Bank of New York.
The New York Fed’s 2023 report, based on U.S. Census data, consistently ranks engineering disciplines at the top for median salaries among workers aged 22 to 27. All engineering majors in the study reported early-career earnings exceeding $70,000.
Graduates in engineering are in high demand due to their combination of technical and mathematical expertise, skills that are valuable across industries, as reported by CNBC.
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A software developer works on his laptop. Photo by Shutterstock/ProStockStudio |
Engineering majors often break into six-figure salaries by mid-career. Aerospace engineering graduates, for example, top the list with a median annual income of $125,000. Computer, electrical, chemical, and mechanical engineering majors also earn over $115,000 annually.
Despite the strong salary potential, job prospects in STEM fields vary. Computer engineering graduates report a 7.5% unemployment rate, the third highest among all majors.
Computer engineering majors face a higher underemployment rate of 17%. Underemployment refers to individuals working in roles that do not fully utilize their education, skills, or experience.
A recent survey of over 3,000 recent and rising college graduates found that members of the class of 2025 expect to earn an average of $101,500 per year for their first job, significantly higher than the actual average salary of $68,400 that recent grads report.