Reality Cheque: How a Master's Degree Could Be Your Ticket to Vancouver's Middle-Class

B.C. residents on average have the second-highest increase in salary, for those who upgrade from a Bachelor's to a Master's degree.

That's the good news.

The bad news is - at just $49,000 a year - our province has the lowest average salary for recent Bachelor degree graduates. But don't panic, we're still within $4,000 of the Canadian average, along with six other provinces. What this type of salary could afford you in Metro Vancouver is a different story, which we'll look into shortly. But I'll begin by focusing my dataset, using the chart below.

My Dataset: The Breakdown

The first aspect to note about these figures is while B.C. has the second-highest salary increase after completing a Master's degree (to $73,000 a year), Alberta and Saskatchewan are actually the top overall earners.

Three years after completing a graduate degree, our two neighbouring provinces boast average earnings of $85,000 and $83,500 a year. While their increase isn't as large, it is mainly due to owning a higher entry-level salary for a Bachelor's degree. But before you take your BA out to the prairies, it's important to highlight which industries earn those kind of wages.

Upon further inspection, Alberta - famous for its mining and oil industry - is owner of six of the top ten economics regions in Canada. As well, the average salaries for Petroleum Engineers and Engineering Managers rank third and fourth in Canada, trailing only Specialist Physicians and Dentists. In other words, a BA might not separate you from the pack in Metro Vancouver, but a Bachelor's degree in Mining and Mineral Resource Engineering would definitely stand out among Alberta's 'rig-rats'.

Newfoundland is another oil producing province, which has also a strong energy and resources sector. In Eastern Canada, degrees in science and engineering can net huge returns. Meanwhile, PEI - despite having an impressive salary increase for graduate degrees - actually has the lowest overall wages across Canada, though it's important to note PEI's small sample size when considering its figures. The province has roughly the same amount of residents as the city of Abbotsford, thus their tiny population makes it difficult to compare statistics with provinces 30 times their size. 

Starting from the Bottom: How This Affects University Students

What is quite fascinating about these statistics, is the premium on graduate degrees in our province. The chart also displays how after completing a Master's degree, B.C. leapfrogs five other provinces to earn an average salary of $73,000 a year - good for fifth across Canada. But in the pricey Vancouver housing market, where can you expect to settle down with these types of earnings?

Chad Skelton's Tableau dashboard indicates that a $50,000 a year salary will leave you with very few options when it comes to purchasing a home. If you have a spouse with the same annual income, you will still be restricted to mostly Surrey and the Tri-Cities area. However, there is plenty more choice once your family's earnings exceed $120,000 a year, which would allow your children to potentially grow up in a safer neighbourhood.

Is it Worth it?

More education means more debt.

Economically-speaking, each student will have countless factors to consider before deciding to prolong their studies. That being said, UBC's cost of living calculator estimates that two years of graduate school will cost around $50,000. However, it's important to also take into account the potential $50,000 a year salary you will forfeit in the process. This roughly equals a loss of $150,000 over that two year period.

Now you can eventually make all that money back, however it will take several years to do so. Over time, factors such as job performance, seniority, and networking should eventually dictate your earnings more than your degree. For now the best way to estimate the length of the process, is to evaluate the salaries of Master's graduates from your prospective field. Most graduate programs are open to students from any discipline, which gives recent undergrads more options to carve out their path. 

According to payscale.com, the latest statistics indicate that jobs in STEM (Science, Technology, Engineering and Math) are your best bet for a prosperous career. Their presence in today's world is undeniable. Look no further to our own 'JRNL 4165: Data Visualization' - an arts course, with a technology focus. As well, some industry professionals warn that certain graduate degrees lacking a specific skill-set might actually hinder your employability. In short, not all Master's programs offer the same return on investment. Upon graduation, an arts student might have to make a difficult choice: chase more money or pursue their passion.

And as soon as you walk across that stage, the choice will be yours.

-SK