A new report from the Federal Reserve Bank of New York reveals that not all college degrees lead to high-paying jobs, especially for graduates in liberal arts and education fields.
The analysis, based on 2023 data, shows that graduates with degrees in education, social work, or the arts report the lowest median incomes within five years of finishing their studies. The report focuses on full-time workers with bachelor’s degrees who are no longer enrolled in school.
In 2023, the U.S. median wage was $48,060, according to the Bureau of Labor Statistics. While engineering graduates often earn upwards of $80,000 early in their careers, liberal arts and education majors tend to make closer to $40,000. The median salary for all the majors examined stood at $50,000.
A degree in foreign languages doesn’t always lead to high-paying roles either. While learning a foreign language offers valuable skills, many graduates end up in lower-paying fields like teaching, translation, or public service. The ability to learn languages outside formal education also impacts job prospects.
Liberal arts majors generally earn less than those in technical fields like engineering or math. Higher-paying industries such as technology and finance often seek specialized skills, which liberal arts programs don’t always provide.
The wage gap persists as workers age. By mid-career, those with degrees in early childhood education earn just $49,000—only $8,000 more than their early-career salaries. Meanwhile, engineering majors typically break into six figures by mid-career, highlighting the financial benefits of pursuing technical degrees.
