I have seen a lot of conflicting reports about the veterinary job market over the past couple of years. One report will say that the outlook is great and tremendous growth is expected in our profession. Others will say that we are graduating too many veterinarians and the job market is becoming saturated, resulting in less pay for veterinarians. With increasing amounts of student debt, this is a recipe for these new graduates to be buried in loans they can't pay back. Well, which is it? Good economics or bad? What can we expect in our profession for this year, and what can you do as a veterinary student to make sure you are competitive when you graduate?
The U.S. economy in general grew throughout 2015 and is expected to continue growth in 2016. Veterinary service demand should go up and vets will see an increase in new clients or visits by existing clients, according to Michael R. Dicks, Ph.D., director of the Veterinary Economics Division at the American Veterinary Medical Association cited in Veterinary Practice News. JAVMA recently published a checkup on the economics of veterinary medicine. It also suggests from its findings at a recent AVMA Summit that the veterinary economy is good overall. Veterinarians are experiencing higher pay now and unemployment in our profession is low. Starting salaries of graduating veterinarians are expected to rise.
So it seems that by all reports as of the past 2 months, good expectations for the veterinary economy are expected. This is great news for practicing and established vets and practice owners, but what about current students and new graduates?
New applicants for veterinary school really must consider the cost vs. salary they can expect. It can be a reality check for many students who desire to go to veterinary school. The cost of veterinary school has risen 250% since 2000. That seems like an awfully high increase in fees considering the the starting salaries haven't gone up that high. Even if a starting salaries are going up, it is not enough to make up for the incredible cost of veterinary school. Chew on this for a minute- the mean debt-to-income ratio for recent veterinary graduates rose from 1.3:1 in 2000 to roughly 1.9:1 in 2015 according to the 2015 AVMA Report on the Market for Veterinary Education. It may just be my opinion, but does this not seem like a crisis for new graduates and for future students?
So if you are about to graduate in the next few years, how can you make yourself competitive and propel yourself to the top? How can you rise above your debt and become a successful practicing veterinarian?
With higher debt and fewer jobs, here is what you can do to stay competitive in this market:
- Try to be flexible. Studies show that certain areas of the country are over-saturated because they are more desirable places to live. If you move to an area that is already saturated with veterinarians, be prepared to make less money. If you move to an area that has a higher demand, your income will be higher. Be flexible and willing to move. This doesn’t mean forever, but be realistic and don’t limit yourself.
- Consider jobs outside of private-practice. More than 80% of vet students go into private practice. If you are having difficulty finding a job, consider another area in the field, in the lab or with the government. In the years ahead, there will be an increasing demand for veterinarians in the field of Public Health.
- Be willing to put in the hours. By paying your dues and working those later nights or weekends, you will bring in more income and show yourself to be a more desirable employee. Make yourself valuable to a practice.
- Try to negotiate for a base pay, plus a commission rate if your production percent agreed upon is higher than your base pay, and avoid companies that use a negative accrual scale. With this type of pay, you will have an income that you can count on and use for your budget. (Negotiating A Contract: Understanding Compensation) Figure out what you must make in order to pay your loans and your living expenses and work off of that as a starting place. If your debt is exceeding this amount, you may want to consider relief work on the weekends or off time as extra income.
- Take care of yourself. If you get burned out and stressed about your debt right out of school, it will make it even more difficult to rise above it. Veterinarians are already at a high risk from burnout. This is why the budget and plan is so important to have ready before starting your new job. Stick to your plan and make good financial decisions.
The good news is that you will be able to find a job. The reports provide a good outlook overall, just plan ahead and be flexible as you start your job search! Congratulations to those of you who just graduated or will be graduating soon and best of luck!
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