Master’s Degree in Psychology Careers: 2025 Salary & Job Outlook
Table of Contents
- Current Job Market for Psychology Graduates
- Psychology & Related Career Salary Comparison
- Industrial-Organizational Psychology Careers
- Occupational Therapy (Related Healthcare Career)
- School and Career Counseling
- Marriage and Family Therapy
- Mental Health Counseling
- Frequently Asked Questions
- Key Takeaways
In 2025, pursuing a master's degree in psychology opens doors to a wide range of rewarding career opportunities. The field is experiencing steady growth, with strong demand for qualified professionals across multiple specializations. Whether you're drawn to clinical practice, organizational psychology, school counseling, or therapy, a master's degree provides the credentials and specialized training needed to launch a successful career helping others.
The current job market for psychology professionals is robust. Recent data shows positive employment trends, competitive salaries, and diverse career paths that allow you to align your interests with meaningful work. This guide explores five high-demand careers in psychology and related helping professions, complete with current salary data, job growth projections, and insights from practicing professionals.
Current Job Market for Psychology Master's Graduates
The outlook for psychology professionals with master's degrees is encouraging. According to the US Bureau of Labor Statistics, employment for psychologists is projected to grow 10% from 2021 to 2031, faster than the average for all occupations. For doctoral-level psychologists specifically, this growth translates to approximately 14,100 job openings each year. Master's-level counseling and therapy professions show even stronger growth, with mental health counselors leading at 22% projected growth.
Several factors drive this demand. Increased awareness of mental health issues, growing emphasis on workplace wellness, expanding school counseling programs, and greater acceptance of therapy as a healthcare service all contribute to job growth. Psychology professionals with master's degrees are particularly well-positioned, as many states now allow master's-level clinicians to provide licensed mental health services.
The diversity of career paths available with psychology education is another advantage. You're not limited to traditional clinical roles. Organizational settings, such as schools, hospitals, private practices, government agencies, and nonprofit organizations, all employ psychology professionals and those with related training. This versatility means you can find work environments that match your preferences and lifestyle goals.
Psychology and Related Career Salary Comparison (May 2024)
Salary potential varies significantly across psychology specializations and related helping professions. The table below compares median salaries and salary ranges for five popular careers, using the most current data from the Bureau of Labor Statistics:
| Career | Median Salary | 10th Percentile | 90th Percentile | Projected Growth (2021-2031) |
|---|---|---|---|---|
| Industrial-Organizational Psychologist | $139,280 | $64,750 | $210,030 | 6% |
| Occupational Therapist | $93,180 | $64,330 | $127,770 | 14% |
| Marriage and Family Therapist | $63,780 | $42,610 | $111,610 | 14% |
| School and Career Counselor | $64,200 | $40,510 | $102,160 | 10% |
| Mental Health Counselor | $59,190 | $39,090 | $98,210 | 22% |
These figures demonstrate the strong earning potential across psychology and related helping professions. It's important to note that salaries vary by geographic location, years of experience, specialization, and work setting. Urban areas and states with higher costs of living typically offer higher wages, while specialized expertise and private practice can significantly increase earning potential.
Note: While occupational therapy is included in this comparison due to its relevance to students considering helping professions, it's technically a healthcare profession rather than a psychology career. Occupational therapists work with psychological principles but follow a distinct educational and licensure path through occupational therapy programs.
1. Industrial-Organizational Psychology: Top Earning Potential
Industrial-organizational (I-O) psychologists apply psychological principles to workplace issues, helping organizations improve productivity, employee satisfaction, and organizational effectiveness. They work on challenges like employee selection and training, performance evaluation, organizational development, and workplace culture.
I-O psychology stands out as one of the highest-paying psychology careers. The BLS reports a median annual salary of $139,280 in May 2024. It's important to note that this field typically requires a master's degree at minimum, though many I-O psychologists hold doctoral degrees, which can lead to higher salaries. Master's-level professionals often start in consultant or analyst roles, with salaries increasing significantly with experience and specialization. The highest-paid professionals in this field earn upwards of $210,030 annually.
The job outlook for I-O psychologists shows 6% projected growth from 2022 to 2032, which is about as fast as the average for all occupations. While this growth rate is more moderate than other psychology specializations, the high salaries and diverse work settings make this career attractive. I-O psychologists find opportunities in consulting firms, large corporations, government agencies, and research organizations.
Janey Stewart, an I-O psychologist with her M.A., shares her enthusiasm for the field:
I cannot encourage students or graduates enough to consider the field of Industrial-Organizational psychology. Assuming it suits your personality, the job is rewarding and one increasing in popularity. Society is beginning to look at dynamics ever-present in the environments in which its members are working. They are seeking to maximize the employment dollar by finding out what helps employees become more productive. If you like the aspects of business and psychology in combination, do look into becoming an I-O psychologist. -Janey Stewart, M.A.
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2. Occupational Therapy: Related Healthcare Career with Strong Growth
Occupational therapists help people develop, recover, or maintain the daily living and work skills needed for independence and quality of life. While not technically a psychology career, occupational therapy shares psychology's focus on human behavior and well-being. Occupational therapists work with individuals who have physical, mental, developmental, or emotional conditions, creating personalized treatment plans to improve their ability to perform everyday activities. This career requires a master's degree in occupational therapy from an accredited program.
Occupational therapy offers both excellent salary potential and outstanding job growth. The median salary for occupational therapists in May 2024 was $93,180, with the top 10% earning more than $127,770. The projected growth rate of 14% through 2031 is nearly three times the national average, making this one of the fastest-growing healthcare professions.
Occupational therapists work in diverse setting,s including hospitals, rehabilitation centers, schools, nursing homes, and private practices. This variety allows professionals to choose environments that match their interests and lifestyle preferences. Many occupational therapists find the work deeply rewarding because they see direct, tangible improvements in their clients' lives.
Wendy Carter, an occupational therapist with 23 years of experience, describes her career satisfaction:
I absolutely love being an OT and have been one for 23 years. There are so many areas to go into, and I found OT through working with special needs children. I am currently a hand therapist although I have worked in the neonatal intensive care unit, school district and acute care. It does take a certain type of personality to be able to work with all types of patients, but if you like to work with others it is a wonderful field. -Wendy Carter, OT
3. School and Career Counseling: Making a Difference in Education
School counselors work with students to support their academic, career, and social-emotional development. They help students navigate challenges, make educational and career decisions, and develop the skills needed for success. Career counselors assist people of all ages with career exploration, job search strategies, and career transitions.
The median salary for school and career counselors was $64,200 in May 2024, with experienced professionals earning over $102,160. Job growth is projected at 10% through 2031, matching the overall psychology field growth rate. This translates to approximately 26,600 job openings annually during this period across school counseling, career counseling, and related guidance roles. Most positions require state certification or licensure in addition to a master's degree.
School counselors typically work during the academic year, which appeals to professionals seeking work-life balance. The role offers job security, benefits packages, and the satisfaction of directly impacting students' lives. Many school counselors describe their work as meaningful and rewarding, knowing they help shape young people's futures.
Sharon Stiles, a school counselor with her MSC and LMHC, reflects on two decades in the profession:
I began to work in the school system as a classroom aide and decided I wanted to be a school counselor. Twenty years ago I began receiving a paycheck for doing what I had dreamed of doing. I have loved this job since the very first day. It is rewarding to know that you are a positive force in a child's life. Sometimes you are the only one that listens to them, hears what they feel and why they feel it. I wouldn't trade my job for anything in the world! -Sharon Stiles, MSC, LMHC
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4. Marriage and Family Therapy: Helping Relationships Thrive
Marriage and family therapists (MFTs) diagnose and treat mental and emotional disorders within the context of marriage and family systems. They apply psychotherapeutic and family systems theories to help individuals, couples, and families work through relationship challenges, communication problems, and life transitions.
MFTs earned a median salary of $63,780 in May 2024, with the highest-paid professionals earning over $111,610. The field is experiencing robust growth at 14%, nearly three times the national average for all occupations. This strong demand reflects increasing recognition of the importance of healthy family relationships and the effectiveness of systemic therapy approaches.
Marriage and family therapists work in various settings, including private practices, community mental health centers, hospitals, family service agencies, and employee assistance programs. Many MFTs eventually open private practices, whichoffers flexibility and the potential for higher earnings. Becoming an MFT requires completing a master's degree from an accredited program, accumulating supervised clinical hours (typically 2,000-4,000 hours depending on the state), and passing a national examination. State licensure requirements vary, so it's essential to research your state's specific requirements before beginning your educational path.
Jeremy Simms, a marriage and family therapist with 15 years of experience, offers advice for those entering the field:
The best advice I can give someone entering the field (or any field for that matter) is to read the book 'What Color is Your Parachute' by Richard Nelson Bolles. I read it right out of school, and it determined the trajectory of my life in a positive way. -Jeremy Simms M.A., MFT
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5. Mental Health Counseling: Fastest Growing Psychology Career
Mental health counselors provide therapy and support to individuals dealing with mental health conditions, emotional challenges, and life stressors. They work with clients on issues including anxiety, depression, addiction, trauma, relationship problems, and life transitions. The role emphasizes prevention and wellness alongside treatment of mental health conditions.
Mental health counseling represents the fastest-growing psychology career, with a remarkable 22% projected growth rate through 2031. This exceptional demand is driven by increased awareness of mental health issues, reduced stigma around seeking therapy, expanded insurance coverage for mental health services, and growing recognition of counseling's effectiveness.
The median salary for mental health counselors was $59,190 in May 2024, with experienced counselors earning up to $98,210. Between 2021 and 2031, the BLS projects approximately 42,000 job openings annually in this profession. While the median salary is lower than in some psychology specializations, the strong job growth and abundant opportunities make this an attractive career path. It's important to note that practicing as a licensed mental health counselor requires completing post-graduate supervised clinical hours and passing state licensing examinations, with requirements varying by state.
Mental health counselors work in community mental health centers, hospitals, schools, private practices, substance abuse treatment facilities, and employee assistance programs. The variety of work settings and client populations allows counselors to find niches that match their interests and strengths. Many counselors find the work deeply meaningful because they witness clients' growth and recovery firsthand.
Bart Harrington entered mental health counseling as a career changer. He earned his M.S. in Mental Health Counseling while working as a banker, attending classes at night. He describes his career transition:
I have my Master's in Mental Health Counseling, and I have been working as a PACT (Parent and Child Trauma Program) Therapist for two years. I love what I do and wouldn't trade it for anything! -Bart Harrington, M.S.
Frequently Asked Questions About Master's Degrees in Psychology
Is a master's degree in psychology worth it?
Yes, a master's degree in psychology is worth it for most students interested in careers in the field. The degree qualifies you for licensure as a counselor or therapist in most states, provides specialized training, and opens doors to careers with strong job growth and competitive salaries. With mental health counseling projected to grow 22% through 2031, job opportunities are abundant.
What jobs can you get with a master's in psychology?
A master's degree in psychology qualifies you for careers including mental health counselor, marriage and family therapist, school counselor, career counselor, industrial-organizational psychologist, substance abuse counselor, rehabilitation counselor, and research positions. Most clinical roles (counselors and therapists) require additional post-graduate supervised experience and state licensure to practice independently. Some states allow master's-level clinicians to obtain full independent practice licenses, while others require supervision or limited scopes of practice.
How much do psychology professionals with master's degrees earn?
Salaries for psychology professionals with master's degrees range from approximately $59,000 to a median annual salary of $139,000, depending on the specialization. Mental health counselors earn a median of $59,190, school counselors earn $64,200, marriage and family therapists earn $63,780, occupational therapists earn $93,180, and industrial-organizational psychologists earn $139,280.
How long does it take to complete a master's degree in psychology?
Most master's programs in psychology, counseling, or marriage and family therapy take two to three years to complete when attending full-time. The timeline includes coursework, practicum experiences, and sometimes a thesis or capstone project. Part-time programs typically take three to four years. After graduation, most counseling and therapy careers require an additional 2-4 years of supervised clinical hours (depending on state requirements) before you can obtain full licensure. Plan for a total of 4-6 years from starting your master's program to becoming fully licensed.
Can you become a licensed therapist with a master's degree?
Yes, you can become a licensed therapist with a master's degree in most states. Programs in counseling, marriage and family therapy, or clinical social work prepare graduates for state licensure. Requirements typically include completing an accredited master's program, accumulating 2,000-4,000 hours of supervised clinical experience (requirements vary significantly by state), and passing a national examination. Specific licensure requirements, fees, and timelines vary considerably by state and license type, so research your state's licensing board requirements early in your educational planning.
Key Takeaways
- Strong job growth across psychology careers: Employment for psychology professionals is projected to grow 10% through 2031, with mental health counseling leading at 22% growth. This translates to thousands of job openings annually.
- Competitive salary potential: Psychology careers with master's degrees offer median salaries ranging from $59,190 to $139,280, depending on specialization. Industrial-organizational psychologists earn the highest salaries, while all specializations offer solid middle-class incomes.
- Diverse career paths available: A master's degree in psychology opens doors to careers in clinical practice, schools, healthcare, business, research, and community mental health. This versatility allows you to find work environments that match your interests and goals.
- Licensure opportunities at the master's level: Most states allow master's-level clinicians to obtain licensure as counselors or therapists after completing supervised clinical hours and passing examinations. Licensure requirements vary significantly by state and profession, so research your state's specific requirements. Once licensed, many professionals can establish private practices and work independently.
- Meaningful, rewarding work: Psychology professionals consistently report high job satisfaction. Whether helping students navigate challenges, improving workplace dynamics, supporting couples through difficulties, or treating mental health conditions, these careers offer the opportunity to make a genuine difference in people's lives.
Ready to Start Your Psychology Career?
A master's degree in psychology prepares you for a rewarding career with strong job prospects and competitive salaries. Whether you're drawn to clinical work, school counseling, organizational psychology, or therapy, now is an excellent time to pursue your education.
2024 US Bureau of Labor Statistics salary figures and job growth projections for Clinical and Counseling Psychologists, Industrial-Organizational Psychologists, School Psychologists, Psychologists-All Other; Psychiatric Techs; Psychiatrists; Substance Abuse, Behavioral Health and Mental Health Counselors; Marriage & Family Therapists; and Social Workers are based on state and national data, not school-specific information. Conditions in your area may vary. Data accessed October 2025.
