Psychologist Salary and Career Outlook

Psychologists are mental health professionals who assess and interpret human behavior. They collect and interpret data on individuals’ social, emotional, and cognitive processes to improve their behaviors, attitudes, and overall quality of life.

There are many career paths for those who want to become psychologists. As such, a psychologist’s salary and employment potential can vary depending upon a number of different factors including:

That said, Bureau of Labor Statistics (BLS) data suggests that both the demand for psychologists and their median annual salary remains higher than the national average for all occupations in the United States. This makes pursuing an advanced degree in psychology an excellent option for those interested in mental health care.

Careers in psychology are more varied than most might assume. Even within specific psychological fields, some psychologists choose to specialize in particular industries or patient populations. Furthermore, while many psychology careers require a doctorate-level degree, there are several positions in the field that can be obtained with only a masters degree in the field of psychology. 

Counseling, Clinical, and Research Psychologists

Becoming a clinical, counseling, or research psychologist requires either a Ph.D. in psychology or a Doctor of Psychology (Psy.D.) degree as well as a state-issued license. The degrees are interchangeable for most positions, but the former tends to emphasize research, while the latter is more directly focused on clinical practice.

In this industry, therapists work in environments such as:

Counseling psychologists work with patients to identify and develop strategies for dealing with problems related to mental, social, and emotional health. This can include things like relationship issues, stress, anxiety, workplace matters, abuse, and family matters to name a few.

Clinical psychologists rely on psychotherapeutic diagnostics and treatments to help identify and treat behavioral, emotional, and mental disorders. Clinical psychologists are qualified to deal with many of the same issues as counseling psychologists, but tend to focus on patients with more severe psychosis and/or mental health issues. Some states allow clinical psychologists to prescribe medication to patients.

Research psychologists use the scientific method to both guide explorations of existing psychological studies and devise new ones to advance the field of psychology. Their work is crucial to helping clinicians, counselors, and other mental health practitioners establish best practices for patient care.

School Psychologists

School psychologists focus on the mental, social, emotional, cognitive, and behavioral health of students in order to optimize the learning environment for success. These professionals usually serve as part of a child study team (CST) to help assess student needs and provide stakeholders with the support they need to create a safe and productive educational space for each student in their care.

Industrial-Organizational (I/O) Psychologists

I/O psychologists are group psychology experts who are hired by institutions of all types to assess and optimize the individual and collaborative components of an organization or workplace. They solve problems related to recruitment, training, professional development, employee relations, workplace motivation, and customer satisfaction.

It is important to note that while a psychology background offers a broad range of career opportunities, psychiatry is not one of them. Psychiatrists differ from psychologists in several important ways:

According to 2024 data from the BLS, a psychologist’s salary ranges from $54,860 for the lowest ten percent to over $157,330 for the top ten percent. While the median annual wage for psychologists in 2024 was $94,310, that figure varies depending on a psychologist’s specialty, where he or she works, and how much experience he or she has.

Using the May 2024 BLS data as an example, I/O psychologists earned a median annual wage of $109,840; clinical and counseling psychologists earned a median wage of $95,830, and school psychologists earned a median annual salary of $86,930.By industry, psychologists earn their highest median salaries in government and hospital roles; ambulatory and educational positions pay less.

According to BLS data from May 2024, psychologists and other psychology-related fields are expected to experience job growth from 2024 through 2034 at a rate faster than the 6% average for all occupations. The projections are highest for clinical, counseling, and industrial-organizational psychologists; employment in these specialties is expected to increase much faster than the national average. On the other hand, school psychologists are projected to be hired at a lower rate than the overall occupation average.