January 12, 2023 / By: Brandy Friedman
January 12, 2023 / By: Brandy Friedman
The U.S. Bureau of Labor and Statistics recently released insightful data on the correlation between education levels and income. The provided chart details average weekly earnings and unemployment rates across various education levels:
Level of Education Average Weekly Earnings Average Unemployment Rate
No High School Diploma $682 per week 5.5% Unemployment rate
High School Diploma $853 per week 4.0% Unemployment rate
Some College, No Degree $935 per week 3.5% Unemployment rate
Associate Degree $1,005 per week 2.8% Unemployment rate
Bachelor’s Degree $1,432 per week 2.2% Unemployment rate
Master’s Degree $1,661 per week 1.0% Unemployment rate
Analyzing this chart underscores the significant impact of education levels on earning potential and job security.
Predictably, those without a high school diploma earn the lowest annual salary and face a higher risk of unemployment. However, transitioning from the "No High School Diploma" category to obtaining a high school diploma or GED can potentially raise annual earnings by nearly $8,000 and reduce the unemployment risk by almost 2 percentage points.
Surprisingly, individuals with some college coursework experience higher average earnings and improved job security compared to those with no college credits. Completing an associate's degree further increases income and job stability, but the most substantial leap occurs when transitioning from a high school diploma to a bachelor's degree.
Moving from a high school diploma to a bachelor's degree results in approximately a 20% annual salary increase, while upgrading from an associate's degree to a bachelor's degree can yield an 15% salary boost.
For those contemplating advanced education, pursuing a master's degree is a significant career move. Obtaining a master's degree elevates average annual salary by an additional $25% and provides enhanced job security, with many employers favoring candidates with advanced degrees.
Beyond income and job security, obtaining a college degree offers additional benefits. Individuals with a bachelor's degree are more likely to receive employer health insurance.
News reports that individuals with bachelor's degrees are more likely to work beyond the typical retirement age, contributing to prolonged savings for retirement., and elevated Social Security benefits. This extended work life also contributes to a more fulfilling and intellectually engaged retirement.
In contrast, individuals without a degree, often engaged in manual labor, are more likely to retire earlier due to health issues or physical job demands. Consequently, they experience lower retirement income and poorer health during retirement. Studies suggest that those with at least some college education can expect to live .years longer than peers with no education beyond high school, further highlighting the holistic benefits of higher education.
