Outlook and Job Growth for Psychologists

psychologist talking to elderly person

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If you're a psychologist or psychology major, your occupational outlook is bright, particularly if you specialize in certain areas and settings.

The Overall Job Outlook for Psychologists Through 2032

U.S. Department of Labor's Occupational Outlook Handbook predicts that the overall demand for psychologists will grow 6% through 2032, which is faster than average for all jobs.

Specialty Areas Expected to Grow

Actual employment growth may vary considerably, however, depending on your specialty and position. For example, the demand for clinical and counseling psychologists is expected to grow by 11% by 2032, whereas the demand for school psychologists is expected to grow by just 1%. For industrial-organizational specialists, growth is predicted at 6%. Job opportunities may be the most plentiful for those with doctoral degrees in applied specialty areas such as counseling in schools, hospitals, mental health facilities, and social services.

Job Outlook for Graduates by Degree

The type of degree you hold also plays an important role in determining your job outlook. Generally, a doctoral degree in psychology is necessary to work in this field, but a master’s degree works for some positions. Here's the outlook for different levels of education:

  • Doctorate Degree: Job prospects are strongest for those who have a Ph.D., Psy.D., or specialist degree in an applied area. School psychology, counseling psychology, and health psychology are particularly strong growth areas. Additional training in research methods, technology, and computer science offers significant advantages.
  • Master's Degree: The competition for jobs will be especially fierce among those with a master's degree in psychology. For example, although jobs at the master's degree level for industrial-organizational psychologists are expected to be plentiful, the availability of positions is far more limited than for those with a doctorate. Other options include working in counseling or mental health services under the direction of a licensed psychologist.
  • Bachelor's Degree: The U.S. Department of Labor suggests that opportunities will be more limited for those holding a bachelor’s degree than they are for advanced degrees. However, areas such as marketing, case management, sales, advertising, teaching, labor relations, writing, and criminal justice offer interesting ways to apply your training and knowledge.

Why the Future Is Bright for Psychologists

Recent events and circumstances such as the COVID-19 pandemic, economic difficulties, societal shifts, and other changes have increased the need for and importance of psychological services. The need for psychologists who treat the elderly, veterans, children, and adolescents is burgeoning. Likewise, those who have transitioned to remote work may require help with the adjustment. Other factors driving growth in the field include:

  • Increasing investment in new ways of delivering therapy, such as telehealth
  • Advances in neuroscience
  • Heightened attention on mental health from celebrities, social media influencers, and others
  • Lessening stigma surrounding mental health issues and care
  • Rising levels of work-related stress and burnout

The American Psychological Association's (APA) Center for Workforce Studies indicates that approximately 6,500 new psychology doctorate students graduate each year and enter the workforce.

Human behavior is at the heart of many of the biggest issues with which we grapple: inequality, climate change, the future of work, health and well-being, vaccine hesitancy, and misinformation. Psychologists have been asked not only to have a seat at the table but to take the lead on these issues and more.

While psychologists working in direct-service fields may see increased competition from those with master's degrees in counseling or social work, the APA reports that many subfields offer considerable opportunities for growth. These include neuropsychology, geropsychology, and industrial-organizational psychology.

Why Adaptability Is Crucial

Psychology is increasingly a multidisciplinary field as professionals are asked to collaborate with a range of other professionals including doctors, educators, and other healthcare providers to meet the needs of clients. Finding a place in this shifting landscape requires psychology graduates to be both adaptive and responsive to change.

A Word From Verywell

The occupational outlook for psychologists and recent graduates is promising. Although advanced degrees fare better in the workforce, plenty of jobs are available for those with undergraduate degrees in psychology and its specialties. Recent and ongoing changes in society, attitudes, and the world at large are driving a significant need for psychologists in the next decade.

4 Sources
Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. U.S. Department of Labor, Bureau of Labor Statistics. Occupational Outlook Handbook: Psychologists: Job Outlook.

  2. Spiner, T. 14 Emerging trendsMonitor on Psychology53(1).

  3. American Psychological Association. Frequently Asked Questions about Psychology Workforce: Education Pipeline.

  4. Spiner, T. 14 Emerging trendsMonitor on Psychology53(1).

By Kendra Cherry, MSEd
Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."