Decoding Intern Salaries by Major: A Comprehensive Guide

Internships serve as a crucial stepping stone for students and recent graduates, offering invaluable real-world experience and a competitive edge in the job market. Compensation for these roles varies significantly, influenced by factors like industry, location, and the technical skills required. This article delves into the landscape of intern salaries, dissecting averages by major and highlighting key trends shaping the early-career job market.

The Value of Internships: Keeping Pace with Inflation

Hourly wages for interns have generally kept pace with inflation, highlighting the enduring value employers place on these programs. According to research, the average hourly wage for interns has seen a slight increase of 0.2% when adjusted for inflation over the past 10 years. In 2023, the average hourly wage for interns stood at $22.06. This demonstrates that despite economic fluctuations, internships remain a valuable investment for both students and companies.

Highest Paying Majors for Interns

At the bachelor’s degree level, certain majors consistently command higher average hourly wages for interns. Computer science, engineering, and actuarial science stand out as the most lucrative fields for aspiring interns. This reflects the high demand for technical skills and the competitive nature of these industries.

STEM Fields Lead the Way

The prominence of STEM (Science, Technology, Engineering, and Mathematics) majors in the top-paying intern categories underscores the increasing importance of these skills in today's economy. Companies are willing to invest in interns with expertise in these areas, recognizing their potential to contribute to innovation and growth.

Beyond the Paycheck: Additional Benefits for Interns

While salary is a primary consideration, interns also value additional benefits that enhance their overall experience. Planned social activities and paid holidays are commonly offered perks, although they are not universally provided. These benefits contribute to a positive work environment and foster a sense of belonging among interns.

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Relocation Assistance: A Key Factor in Attracting Top Talent

More than half of employers (54.7%) offer relocation assistance to interns, demonstrating a commitment to attracting talent from diverse geographic locations. A significant majority (76.8%) of those providing relocation assistance believe it helps them attract better applicants. Relocation assistance removes a barrier for students who need to relocate, enabling companies to stay competitive in the talent market.

Salary Expectations vs. Reality: Bridging the Gap

Early-career salary expectations are shaped by the competitive landscape and the priorities of Gen Z. Competitive compensation is a top priority for Gen Z talent, with many valuing financial growth potential above other job attributes. Understanding these expectations is crucial for employers seeking to attract and retain the best young talent.

STEM and Business Majors Lead in Salary Expectations

Students' expectations for starting salaries vary significantly depending on their field of study, with STEM and business majors generally anticipating higher pay. This aligns with the demand for these skills in the job market and the potential for high earnings in these fields.

Internships by Function

Internship compensation varies significantly by industry and the technical skills required.

Software Engineering Internships

Software engineering internships are among the highest-paid, with average maximum rates reaching $57/hour and a lower average around $30/hour. Large, publicly traded tech firms drive up intern pay as they compete for top technical talent with specialized skills in back-end, mobile, or security engineering.

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Investment Banking Internships

Investment banking internships are also lucrative, with hourly wages reaching up to $44/hour and an average minimum of $27/hour. Internship roles in capital markets and global investments are particularly well-compensated, recognizing the skill and commitment required for financial analysis and strategic investment.

Finance & Business Analyst Internships

Internships in finance and business analysis roles offer competitive hourly pay, typically from $24 to $38/hour, with the highest compensation offered to interns working in trading, equities, and capital markets. General finance roles, while still competitive, typically fall around $28/hour.

Marketing & Communications Internships

Marketing internships span roles in digital marketing, SEO, and product marketing, with hourly pay ranging from $22 to $41.

Regional Differences in Intern Compensation

Regional differences in salary and intern compensation continue to shape hiring practices across the United States. Factors such as cost of living, industry concentration, and local talent demand influence these variations.

High-Paying Regions

New York: Entry-level roles in New York have a median salary maximum of $90,000, with finance, technology, and legal roles commanding particularly high pay. Internship wages offer a median maximum of $28/hour, with finance, media, and consulting roles in high demand.
Massachusetts: Boston’s strong focus on technology, healthcare, and higher education means that Massachusetts ranks among the highest-paying states, with entry-level roles reaching a median maximum of $90,000.
California: Known for Silicon Valley and its tech-driven economy, California’s entry-level roles reach up to $82,500 at the median maximum. Internship wages can reach a median maximum of $37.75/hour.
Washington: With a median maximum salary of $92,500, Washington stands out for tech roles, especially in Seattle. Internship wages can reach a median maximum of $40.5/hour, driven largely by tech internships in Seattle.

Moderate-Paying Regions

Texas: Texas offers a median maximum of $75,000 for entry-level roles, particularly in cities like Austin and Dallas, where the tech and energy sectors are thriving.
Illinois: Home to Chicago’s diverse economy, Illinois has a median maximum of $75,000 for entry-level roles.
Georgia: With a strong healthcare and logistics industry, Georgia offers entry-level salaries with a median maximum of $80,000.
Ohio: Entry-level salaries in Ohio offer a median maximum of $77,500, especially in roles within manufacturing, logistics, and healthcare. Internship wages hover around $25/hour, with roles primarily in manufacturing, logistics, and healthcare.
Colorado: Known for its rapidly growing tech sector, Colorado offers a median maximum of $70,000 for entry-level roles, particularly in cities like Denver and Boulder.
Florida: With a median maximum of $80,000 for entry-level roles, Florida's pay scales align with its expanding finance, tourism, and healthcare industries.
Indiana: Internship wages hover around $25/hour, with roles primarily in manufacturing, logistics, and healthcare.

The Impact of Co-op Experience on Future Earnings

Students with three or more co-op rotations tend to have salaries that are $10,000 - $18,000 higher than students without any co-op experience. This highlights the significant impact of practical experience on future earning potential.

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