Do counsellors get paid well?

Quick Answer

Counselors can earn a good living but pay varies greatly depending on factors like location, specialty, experience level, and setting. The average salary for counselors in the U.S. is around $47,000 but can range from under $30,000 to over $80,000 per year. The highest paid counselors work in private practice, large healthcare organizations, schools, and government agencies. Those with advanced degrees, specialized credentials, and years of experience tend to earn higher salaries. Overall counselor pay is on par with related fields but lower than doctors, lawyers, and engineers. With the growing demand for mental health services, counselor salaries should continue to rise.

Counselor Salaries Vary Widely

Counselors in the United States earn an average annual salary of $47,600 according to the U.S. Bureau of Labor Statistics (BLS). However, salaries can range significantly based on:

  • Location – Counselors in high-paying metropolitan areas like San Francisco and New York City can earn over $70,000 while those in lower-cost rural areas often earn under $35,000.
  • Specialty – Counselors specializing in high demand, high paying fields like substance abuse earn around $52,000 while school counselors average just $41,000.
  • Experience – Entry level counselors start around $32,000 per year while those with over 20 years of experience can earn over $66,000.
  • Setting – Private practice counselors have high earning potential at an average of $60,000 versus around $45,000 in schools and community health centers.
  • Education – Counselors with a master’s degree earn approximately $5000 more per year than those with a bachelor’s degree.
  • Licensure – Licensed counselors earn over $7000 more than their unlicensed counterparts.

With so many factors impacting pay, counselor salaries can start below $30,000 but also reach over $80,000 for highly experienced counselors in lucrative settings and metro areas.

Counselor Job Outlook and Growth Trends

The job outlook for counselors over the next decade is very positive with the number of positions expected to grow 25% from 2016 to 2026, much faster than the average for all occupations according to BLS projections.

Several factors are driving increased demand for counselors including:

  • Mental health needs – Rates of depression, anxiety, addiction, and other mental health disorders are on the rise, driving demand for counselors.
  • Access to insurance – The Affordable Care Act and parity laws are helping more people access counseling services.
  • Prevention focus – There is greater emphasis on early intervention and counseling to prevent minor issues from becoming major crises requiring expensive interventions.
  • School counseling – Schools are hiring more counselors to help students cope with social, emotional, academic, and college planning needs.
  • Geriatric counseling – The aging population requires counseling for life changes, healthcare, and end-of-life issues.
  • Rehabilitation counseling – Demand is growing for counselors who help people with disabilities or injuries return to daily activities and employment.

The growing demand for counselors is expected to create over 120,000 new jobs by 2026, greatly exceeding growth in other occupations. This high growth should lead to expanded job opportunities, increased competition for top talent, and salaries rising faster than inflation.

How Counselor Salaries Compare to Related Fields

Counselors earn approximately $47,600 on average which is on par with several related occupations including:

  • Social workers – $50,470 average salary
  • Rehabilitation counselors – $42,080
  • Probation officers – $54,290
  • Clinical psychologists – $87,450 (doctorate required)
  • School psychologists – $87,450 (doctorate required)

However, counselor salaries are lower than:

  • Psychiatrists – $217,100
  • Lawyers – $126,930
  • Physicians – $214,700
  • Dentists – $178,260
  • Engineers – $96,300

The pay difference largely reflects the advanced or professional degrees required for fields like law, medicine, and engineering versus the master’s degree that is sufficient for most counseling roles.

While not at the top of the pay scale, counselors earn competitive salaries versus similarly educated fields focused on improving people’s mental health and well-being through guidance, support, and counseling interventions.

Highest Paying Settings for Counselors

While specific salaries vary, the highest paying work settings for counselors include:

Private Practice

Private practice allows counselors to set their own rates and earn the highest incomes in the field averaging around $60,000. Successful private practitioners can earn well over $100,000 per year. The tradeoff is that building a private practice takes time and counselors must handle their own billing, marketing, overhead, and other business aspects.

Hospitals

Hospitals employ counselors in diverse specialty areas from mental health to genetics counseling and rehabilitation. With strong job stability and over $63,000 in average salary, hospitals are a lucrative setting for many counselors.

Government Agencies

Government organizations like the Department of Veterans Affairs (VA) hire counselors to serve specific populations from veterans to vocational rehabilitation clients. Federal counselor salaries start around $52,000 and top out over $94,000 for senior level positions. State and local agencies also have counseling roles often with good compensation and benefits.

Schools & Universities

From K-12 schools to colleges and universities, educational institutions hire large numbers of counselors. Pay is often on the lower end for school counselors at around $41,000. However, college career counselors, academic advisors, and directors earn upwards of $60,000 on average. Benefits like summers off help boost the appeal of school counseling jobs.

Large Healthcare Organizations

Major health systems and insurers employ counselors in areas ranging from patient advocacy to utilization review. With competitive salaries starting around $60,000 plus strong healthcare and retirement benefits, these healthcare counseling jobs are financially appealing.

The highest salaries go to counselors with specialized expertise and credentials working in settings that allow them to maximize their earning potential through high patient volumes, rates, or physical locations.

Top Paying Specializations for Counselors

While all counselors aim to help people improve their well-being, some specialties are more lucrative including:

Substance Abuse Counseling

Substance abuse and behavioral counselors earn an average of $52,000 according to BLS data, making this the top paying counseling specialty. Counseling demand is surging to support people recovering from opioid addiction and other substance issues.

Mental Health Counseling

Mental health counselors earn around $48,000 on average. Treating depression, anxiety, trauma, and other conditions provides financial stability. Many mental health counselors build lucrative private practices.

Rehabilitation Counseling

Rehabilitation counselors help people with disabilities or injuries regain function and return to daily activities. With average pay of $42,000 and growing employer demand, this specialty provides solid earning potential.

Educational Counseling

From school counselors to college career coaches, educational counselors guide students at all levels. Pay varies from around $41,000 in K-12 schools to over $60,000 in higher education settings.

Genetic Counseling

Genetic counselors analyze genetic risks and help patients make informed choices. Compensation averages over $81,000 for this specialty, among the highest in the field.

Focusing on high demand specialties allows counselors to maximize their earning power within the profession.

Experience Level Impacts Counselor Salaries

A counselor’s years of experience strongly influence salary potential. According to BLS data:

  • Entry level – Counselors with less than one year of experience earn around $32,000 on average.
  • Early career – With 1 to 4 years experience, counselors make approximately $39,000.
  • Mid-career – Those with 5 to 9 years experience average around $48,000.
  • Experienced – After a decade or more on the job, counselor pay reaches about $59,000.
  • Late career – Top salaries go to veteran counselors with 20+ years experience who earn over $66,000.

The most dramatic pay gains come during the first 10 years as counselors build expertise, earn advanced certifications, and move into senior roles. After 20 years, salaries plateau unless counselors move into administrative or executive positions.

Taking on increasing responsibilities and developing specialized skills as one’s career progresses is key to maximizing counselor pay.

Educational Level Boosts Counselor Salaries

Pursuing higher educational degrees and credentials raises a counselor’s earning potential:

Bachelor’s Degree

Counselors with only a bachelor’s degree earn approximately $44,000 per year on average. Bachelor’s level counselors have limited career advancement opportunities.

Master’s Degree

Completing a master’s program in counseling or a related field allows access to most counseling roles. Master’s level counselors average around $49,000 annually.

Doctorate Degree

Counselors who obtain a PhD earn about $68,000 on average. A doctorate opens doors to leadership, research, and university counseling positions.

Specialized Credentials

Certifications like Licensed Professional Counselor or Certified Rehabilitation Counselor boost salaries by $5,000 or more. Voluntary specialty certifications signal expertise.

Investing in formal education and credentials pays off financially over a counselor’s career.

Licensure Dramatically Impacts Salary

Pursuing licensure leads to the largest salary jump for counselors:

  • Unlicensed – Counselors without a license earn around $42,000 on average.
  • Licensed – Licensed counselors average around $50,000 per year.
  • Difference – Gaining licensure boosts counselor salaries by over $7,000 or 17% on average.

State requirements vary, but most mandate completing a master’s program, thousands of supervised hours, and passing one or more exams to obtain licensure as a professional counselor, clinical mental health counselor, or similar title.

All states license counselors, so this credential is essential for accessing the highest paying counseling jobs.

Demand Is Pushing Counselor Salaries Upward

While counselor salaries are only average compared to other fields, the future looks bright in terms of pay growth. Here are some positive trends to be aware of:

  • Above average projected job growth at 25% from 2016 to 2026 according to BLS data.
  • Counseling is a “bright outlook” profession with excellent job prospects per the U.S. Department of Labor classification.
  • Rising demand coupled with counselor retirement/attrition rates mean high demand for new graduates entering the field which should exert upward salary pressure.
  • Increased use of counselors as part of value-based coordinated care models is expanding roles in healthcare.
  • Higher utilization of counselors as insurers expand mental health coverage under parity laws.
  • New settings like corporate wellness programs and virtual counseling platforms are emerging.

These trends point to continued salary growth well above inflation rates. While not the highest paid profession, financial compensation for counselors should remain favorable.

Conclusion

In summary, counselors earn median pay of around $47,000 which allows a comfortable lifestyle in most areas. However, salaries vary widely based on location, specialty, experience, credentials, and setting. The most lucrative counseling jobs pay over $80,000 per year. Growth projections are positive, with demand for counselors expected to drive salaries 7% higher through 2026. While some fields like technology and healthcare pay more, counselors earn very competitive wages compared to other human services professions. Overall, financial factors like above average salary growth make counseling a stable, rewarding career choice.

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