Guide to Careers in Psychology

According to the American Psychological Association (APA), psychology encompasses many subfields, including brain science, cognitive psychology, clinical, counseling, developmental, forensic, health, school, and industrial-organizational psychology. Within that broader landscape, some practice areas are also formally recognized by APA as specialties in professional psychology. When considering a career in psychology, it can help to think first about the population, setting, or type of work that interests you most.

If you are interested, for example, in the criminal mind, you may find yourself in forensic and public service psychology. If research is more your niche, you can consider quantitative or brain science psychology.

The APA states that psychologists are doctorate-level professionals who complete coursework in ethics, statistics, the biological and social bases of behavior, psychological assessment, and various therapeutic approaches. Some psychologists pursue licensure to prescribe medication after completing advanced and specialized training.

When you choose a career in psychology, your day-to-day could be different from that of another psychologist. Some assess, diagnose, and treat mental, emotional, and behavioral disorders, while others may work with physically or developmentally disabled individuals only. Further, according to the U.S. Department of Labor, Bureau of Labor Statistics (BLS), the majority of psychologists will typically engage in the following responsibilities:

• Conduct research on behavior and brain function
• Identify and diagnose mental, emotional, and behavioral disorders
• Manage psychological assessments
• Create and research papers and reports to share with others in the mental health field

Careers with a Psychology Degree

A master's in psychology offers a variety of career options. Professionals can pursue many different paths after earning their graduate degrees.

Master’s-level graduates can work in a variety of sectors, including:

• Schools
• Hospitals
• Private practice
• Nonprofit organizations
• Private healthcare clinics
• Government/military

Securing a job after graduation may require additional internships, coursework, or licensure. As mentioned above, some careers also require doctoral degrees. Thus, prospective students must understand the limitations associated with master’s-level psychology degrees.

According to the Bureau of Labor Statistics, most clinical, counseling, and research psychologist roles require a doctoral degree as of May 2024. In practice, that usually means earning either a Ph.D. or a Psy.D. in psychology. Ph.D. programs are generally research-focused and often culminate in a dissertation, while Psy.D. programs emphasize clinical practice and direct client work. Both degree paths typically include an internship.

The BLS also notes that individuals with a master’s in psychology may qualify for roles such as psychological assistant, where they work in clinical, counseling, or research settings under the supervision of a doctoral-level psychologist.

For more information, see our guide on how to become a psychologist.

Deciding between a career in psychology or psychiatry? See our guide on the differences between psychiatrists and psychologists.

How to Pick a Career in Psychology

Choosing a career in psychology depends on your degree level, licensure goals, and the type of work setting or population you want to serve. The Bureau of Labor Statistics groups psychologists into four broad categories: clinical and counseling psychologists, school psychologists, industrial-organizational psychologists, and all other psychologists. Organizing your options this way can make it easier to compare education requirements, salary data, and job outlook across the field. Overall, the BLS projects employment of psychologists to grow 6% from 2024 to 2034.

Some common psychology career categories include:

• Clinical and counseling psychologists: Assess, diagnose, and treat mental, emotional, and behavioral disorders in settings such as private practice, hospitals, community clinics, and other healthcare environments.
• School psychologists: Help students succeed academically, socially, and emotionally by addressing learning, behavioral, and developmental concerns in school settings and by consulting with families, teachers, and administrators.
• Industrial-organizational psychologists: Apply psychological principles to workplace issues such as employee selection, training, productivity, and organizational effectiveness.
• Psychologists, all other: This BLS category covers psychologists whose work does not neatly fit into the groups above, including those working in specialized research, applied, or emerging practice areas.

Clinical and Counseling Psychologists

What is clinical and counseling psychology?

Clinical and counseling psychology are health service areas within professional psychology. APA describes clinical psychology as focused on mental and behavioral health assessment and treatment, while counseling psychology emphasizes well-being, coping, life functioning, and support across the lifespan.

What settings are common?

Common work settings include private practice, hospitals, community mental health centers, colleges and universities, and other healthcare or social service environments. BLS also notes demand in hospitals, mental health centers, schools, and social service agencies.

What are the education requirements?

BLS says clinical and counseling psychologists typically need a Ph.D. or Psy.D. in psychology, and these programs usually include an internship. Licensure requirements vary by state.

What is the career outlook?

BLS projects employment for clinical and counseling psychologists to grow 11% from 2024 to 2034, faster than average, and the fastest among psychology careers. Demand is expected to rise as more people seek psychological services.

How much can you earn?

According to BLS, the 2024 median annual wage for clinical and counseling psychologists was $95,830.

To learn more, read our guide on How to Become a Health Psychologist.

School Psychologists

What is school psychology?

APA describes school psychology as a health service area focused on children, youth, families, and the schooling process. School psychologists support learning, behavior, and mental health and may work at both the individual and system levels.

What settings are common?

School psychologists commonly work in K–12 schools and school districts. APA also notes that training may include experience in schools, clinics, and hospitals.

What are the education requirements?

BLS says psychologists typically need an advanced degree, such as a master’s or doctoral degree, though requirements vary by role and state. APA notes that school psychology graduate training includes coursework, practicum experiences, and a 1-year internship, with programs often taking about 3 to 6 years depending on the degree path.

What is the career outlook?

BLS projects employment for school psychologists to remain flat with a below-average growth rate of 1% from 2024 to 2034.

How much can you earn?

According to BLS, the 2024 median annual wage for school psychologists was $86,930.

Learn more about working in a school setting in our comparison guide, School Counselor vs. School Psychologist.

Industrial-Organizational Psychologists

What is industrial-organizational psychology?

APA says industrial-organizational (I-O) psychology focuses on the scientific study of behavior in the workplace. These psychologists apply research to improve performance, communication, satisfaction, safety, and organizational effectiveness.

What settings are common?

I/O psychologists often work with businesses, corporations, consulting firms, government agencies, and other organizations that want to improve hiring, training, workplace culture, and productivity.

What are the education requirements?

BLS says industrial-organizational psychologists typically need a master’s degree. Coursework often includes statistics, research design, and workplace behavior.

What is the career outlook?

BLS projects employment for industrial-organizational psychologists to grow 6% from 2024 to 2034. Employers are expected to continue using these professionals for hiring, training, retention, and workplace improvement efforts.

How much can you earn?

According to BLS, the 2024 median annual wage for industrial-organizational psychologists was $109,840.

Psychologists, All Other

What is “psychologists, all other”?

This is BLS’s catchall category for psychologists whose work does not fall into the clinical and counseling, school, or industrial-organizational groupings. In practice, it may include psychologists working in specialized areas recognized by APA, such as forensic, rehabilitation, clinical neuropsychology, or health-related specialties.

What settings are common?

Work settings vary widely by specialty but may include government agencies, healthcare organizations, research settings, universities, and private or applied practice environments. BLS wage data also show many psychologists working in government, ambulatory healthcare, hospitals, and schools.

What are the education requirements?

Education requirements vary across this category. BLS says psychologists typically need an advanced degree, such as a master’s or doctoral degree, but many specialized psychology paths require doctoral training and, for licensed practice roles, state licensure.

What is the career outlook?

BLS projects employment for psychologists in the all other category to grow 4% from 2024 to 2034.

How much can you earn?

According to BLS, the 2024 median annual wage for psychologists in the all other category was $117,580.

Read our Guide to Psychology Careers to learn more.

Which Field of Psychology Should You Concentrate in?

Deciding which subfield to practice in is a matter of personal interest. For example, you may be interested in studying neuropsychology if you have an interest in how the brain impacts human behavior, or you may decide to pursue forensic psychology if you have an interest in the legal system. Of course, there may be other factors to consider when deciding on a specialty in professional psychology.

The American Psychological Association's Center for Workforce Studies (APA CWS) maintains an interactive database tool, Degrees in Psychology, that visualizes Integrated Postsecondary Education Data System (IPEDS) data on master's degrees in psychology from 2010 to 2024 (American Psychological Association, 2024). The following information is pulled from that source:

Master’s Degrees awarded in Health Service Psychology

APA organizes degree subfield data into Health Service Psychology (HSP), which encompasses clinical, counseling, school, and applied psychology subfields focused on direct assessment, treatment, and mental health service delivery to individuals and groups.

Master’s Degrees awarded in Research Psychology

APA organizes data into Research Psychology, which encompasses cognitive, developmental, social, experimental, industrial-organizational, and other psychology subfields emphasizing empirical research, theory development, and knowledge generation rather than direct clinical service provision.

Between 2010 and 2024, according to APA's Center for Workforce Studies, psychology master's degrees were distributed across demographic categories as follows: Counseling Psychology and General Psychology accounted for 52% of all degrees awarded, women earned 81% of master's degrees, Hispanic students earned 15%, Black students earned 14%, and American Indian, Alaskan Native, Asian, and multiracial students each earned 5% or fewer of degrees. These figures reflect the composition of the master's-level psychology workforce during this 14-year period.

Job Outlook

The U.S. Bureau of Labor Statistics, Occupational Outlook Handbook. (2024). Psychologists are projected to grow 6 percent from 2024 to 2034, faster than the average for all occupations. This growth is expected to generate approximately 12,900 psychologist openings annually over the decade, with many positions resulting from the need to replace workers who transition to other occupations or retire.

Employment growth varies by psychology specialty. Clinical and counseling psychologists are projected to experience the largest increase, with employment growing from 76,300 in 2024 to 84,800 in 2034—an addition of 8,500 positions. This growth reflects increasing demand for psychological services in schools, hospitals, mental health centers, and social service agencies, as well as a broader trend of individuals seeking help from psychologists for mental health concerns. Read our guide on How to Become a Health Psychologist if you’re interested in a career in this area.

School psychologists are also projected to grow modestly from 67,200 to 67,700 positions, driven by heightened awareness of the connection between mental health and educational outcomes, and the critical role these professionals play in supporting students with learning, behavioral, or developmental challenges.

In contrast, industrial-organizational psychologists represent a smaller but stable segment, with employment expected to increase from 5,600 to 5,900 positions as organizations continue to rely on these specialists for employee selection, retention, training implementation, and workplace morale initiatives. Psychologists in all other specialties are projected to grow from 55,300 to 57,700 positions during this period.

Explore more psychology careers with our Psychology Career Guide.

Salaries and Compensation

Psychologists earn competitive salaries that vary considerably by specialty and work setting. According to the BLS, the median annual wage for psychologists was $94,310 in May 2024. However, earnings vary significantly across the profession: the lowest 10 percent of psychologists earned less than $54,860, while the highest 10 percent earned more than $157,330.

Salary differences are particularly pronounced by specialty. Industrial-organizational psychologists earned the highest median annual wage at $109,840, followed by psychologists in all other specialties at $117,580. Clinical and counseling psychologists earned a median annual salary of $95,830, while school psychologists earned $86,930. Employment setting also influences compensation. Psychologists in government positions (excluding state and local education and hospitals) earned the highest median salary at $126,990, while those in ambulatory healthcare services and hospitals earned about $96,000 annually. School psychologists employed in elementary and secondary schools earned a median of $85,920.

The range of salaries across specialties and settings reflects both the varied demand for psychological services and the breadth of career opportunities available to psychology degree holders. Master's degree holders may pursue roles in clinical, counseling, school psychology, or specialized fields, each offering distinct compensation structures and advancement potential.

Salaries for Psychologists in the US (May 2024)

The Final Word on Education Requirements for a Career in Psychology

Educational pathways in psychology are diverse, and understanding the requirements for your specific career goal is essential. While a master's degree in psychology demonstrates significant expertise and opens doors to many mental health professions, some positions—particularly those explicitly titled "psychologist"—require a doctoral degree (PhD or PsyD). Before committing to a graduate program, research the licensure and credentialing requirements for your target role, as these vary by specialty, state, and employer. Aligning your educational trajectory with your career objectives will position you for success and prevent costly delays in your professional development.

A master's degree in psychology provides a robust foundation in research methods, psychological theory, and clinical or applied skills. Whether you pursue further doctoral study or enter the workforce with a master's credential, the advanced training you gain through graduate education demonstrates both your commitment to the field and your readiness to serve diverse populations as a mental health professional. The psychology workforce continues to grow and evolve, offering meaningful career opportunities for those equipped with the knowledge and credentials to meet emerging mental health needs.