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Data scientists are now considered to be among the most popular STEM (Science, Technology, Engineering, and Mathematics) professions. As information technology and AI becomes more important in our lives, the field of data science will continue to grow. The US Bureau of Labor Statistics projects a 36% increase in the demand for data scientists from 2021 - 2031. The demand for data scientists will continue to grow. For data science aspirants interested in the field, one important question to ask is: how much do data scientists make?
The salary for data scientists vary based on several factors such as geographic location, experience, education, industry, job title, etc.
In this article, we perform elementary statistical analysis to estimate the 2023 average annual salary for data scientists in the United States.
Data Collection
To estimate the average annual salary for data scientists in the United States, data was collected from indeed.com. Using the keyword search box and keyword “data scientists job”, we found 26,661 open data scientists positions in the United States as of March 8, 2023. The open positions vary from entry level to senior data scientists positions. The salary ranges for the available positions are displayed on the Table below.
Data Source: Indeed.com
Annual salary range and number of available data scientists positions in the United States. Data retrieved from source URL, using the search criteria “data science jobs” on March 8, 2023. Image by Author.
The figure below shows a bar plot of the salary ranges for the open data scientists positions.
Data Scientists open positions and annual salary ranges. Image by Author.
Average Salary for Data Scientists
Using the data obtained from indeed.com, we performed elementary statistical calculations to determine the mean annual salary and standard deviation. The average salary for data scientists based on the information retrieved from indeed.com was estimated to be $124,000 per year. The standard deviation was estimated to be $21,000. The 95% confidence interval for the salary data is [$83,000 - $166,000] per year.
The distribution of the salary range could be estimated using a normal distribution, as shown in the Figure below.
Annual salary distribution for data scientists | Image by Author.
Comparison with Data from US Bureau of Labor Statistics
According to the US Bureau of Labor Statistics, the 2021 median salary for data scientists was $100,000 per year. This value is slightly less than our estimated average annual salary of %124,000. The discrepancy could be due to increasing data scientists salary for 2023 to offset high inflation rates and the increased demand for data scientists associated with labor shortage.
Conclusion
In summary, we’ve performed elementary statistics to estimate the average salary for data scientists in the United States using salary data for open data scientists positions retrieved from indeed.com. Our analysis shows that the nationwide average salary for data scientists in the United States is estimated to be $124,000 per year, with a 95% confidence interval of [$83,000 - $166,000] per year. Data scientists should expect to make between $83,000 and $166,000 per year in 2023. The actual salary for any given role depends on factors such as geographic location, experience, education, industry, job title, etc.
Benjamin O. Tayo is a Physicist, Data Science Educator, and Writer, as well as the Owner of DataScienceHub. Previously, Benjamin was teaching Engineering and Physics at U. of Central Oklahoma, Grand Canyon U., and Pittsburgh State U.