Graduate Degrees With the Best Futures

In a tough job market, it makes sense to look for ways to set yourself apart from the competition. But is extra school the best – or most cost-effective – way to advance?

This year, 26% of graduating seniors headed for a graduate or professional degree, up from 24% last year, according to the National Association of Colleges and Employers, a professional association. Add to those ranks people who are working but want to go back to school — or who are simply not working and are applying to school as a back up — and enrollment swells even more.

But if these students are looking at grad school as a refuge from a tough economy, it’s the wrong approach, says Kathy Sims, the director of the University of California, Los Angeles Career Center. Prospective students should be even more careful about investing in further education in the current environment, because the long-term impact of the recession on particular fields isn’t yet clear, she says.

Career counselors say that for individuals who have been out of the work force for a while, or who are switching fields, a fresh degree can help a resume look more attractive. Yet in a tough job market, pursuing an advanced degree could narrow your options by making it more difficult to pursue opportunities outside of your chosen field.

Keep in mind that you’re making a substantial financial investment. “Consider not just the cost of that degree, but the opportunity cost in lost wages” when deciding if grad school makes sense for you, says Marcia Harris, a career counselor and the former director of the University of North Carolina’s Career Services office. In some cases, volunteer work, internships or even travel could enhance your resume for far less than the cost of a degree, she adds.

Prospective students should do careful research before heading back to school. The Bureau of Labor’s Occupational Outlook Handbook projects future demand for workers in different fields and gives a sense of how much people typically earn. Professional associations can also be a good source of information on current trends and opportunities. One good exercise: Go through a mock job search as if you have the degree you’re considering, including contacting organizations you might want to work for, Harris suggests.

Here are some examples of fields where an advanced degree might help you advance or increase your earning power – and some where a degree might just increase your debt:

Employment of nurses projected to grow 23% between 2006 and 2016.

In an uncertain economy, it’s difficult to tell which fields are growing, but health care is one of the few “sure things” out there, says Emily Westerman, the associate director of the Office of Career Management at New York University’s School of Continuing and Professional Studies. Nurses, in particular, stand to gain because they are seen as a cheaper alternative to doctors, and could benefit from the drive to cut the cost of care. Nurses will need a master’s degree to become clinical nurse specialists, nurse anesthetists, nurse-midwives or nurse practitioners, and many administrative positions also require advanced degrees. Clinical nurse specialists may see the greatest financial return on their investment in a master’s degree: The median annual salary for a registered nurse in 2008 was $62,450, and the median salary for a nurse anesthetist was $65,880, but for a clinical nurse specialist the median was $80,240.

Employment of teachers (elementary to secondary) projected to grow 12% between 2006 and 2016.

Relative to other fields, teachers still don’t make much – 16% less than other college-educated professionals, according to the Economic Policy Institute. But the gap for teachers with a master’s degree is less than for those with only a bachelor’s. Thanks to union contracts, a master’s degree automatically bumps many public school teachers up to a higher pay range, says the University of California’s Sims. Moving up into administrative roles also typically requires an advanced degree, and the jump can pay off. The median salary for a high school teacher in 2008 was $51,180, while elementary and secondary administrators made a median salary of $83,880.