Psychologists held about 170,200 jobs in 2008. Educational institutions employed about 29 percent of psychologists in positions other than teaching, such as counseling, testing, research, and administration. About 21 percent were employed in healthcare, primarily in offices of mental health practitioners, hospitals, physicians' offices, and outpatient mental health and substance abuse centers. Government agencies at the State and local levels employed psychologists in correctional facilities, law enforcement, and other settings.
After several years of experience, some psychologists—usually those with doctoral degrees—enter private practice or set up private research or consulting firms. About 34 percent of psychologists were self-employed in 2008—mainly as private practitioners.
In addition to the previously mentioned jobs, many psychologists held faculty positions at colleges and universities and as high school psychology teachers.Employment of psychologists is expected to grow as fast as average i.e. Increase 7 to 13 percent. Job prospects should be the best for people who have a doctoral degree from a leading university in an applied specialty, such as counseling or health, and those with a specialist or doctoral degree in school psychology. Master's degree holders in fields other than industrial-organizational psychology will face keen competition. Opportunities will be limited for bachelor's degree holders.