New college graduates have a median starting salary of $45,478, according to the National Association of Colleges and Employers. The data show the value of a college education. The median household income of all Americans is $51,939, according to the Federal Reserve Bank of St. Louis.
It is often assumed that liberal arts and humanities majors have less value in a market where specialization is prized, and the National Association of Colleges and Employers supports this theory. Graduates with these degrees have a median income of $38,604. On the other hand, two more specialized degrees yield much higher salaries. Graduates with business degrees have median starting salaries of $49,807. Graduates with degrees in engineering have median starting salaries of $64,891. These numbers are for bachelors and not higher degrees.
The survey, however, does not explain why a college student would major in liberal arts at all. A recent survey by Millennial Branding, a research and consulting firm, and Beyond.com, a career advisory website, shows that the demand for liberal arts graduates is tiny. The results were analyzed by the Los Angeles Times:
A mere 2% of companies are actively recruiting college graduates with liberal-arts degrees.
The value of engineering and business degrees is also clear based on the research:
According to the poll, 27% of companies are seeking to recruit engineering and computer students, while 18% want business majors.
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Methodology for the National Association of Colleges and Employers survey:
Data contained in the report were obtained by surveying NACE employer members from August 11, 2014, through November 24, 2014. A total of 316 surveys were returned—a 30.4 percent response rate. Of those responding, 16.5 percent of respondents were from the West, 24.7 percent were from the Northeast, 28.2 percent were from the Southeast, and 30.7 percent were from the Midwest.
It is never too soon to specialize, if money is the goal.
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