Average entry-level data analyst salary in 2023

by | May 23, 2022

With technology becoming more sophisticated every day, organizations are looking for people who can help make sense of all the data they are collecting. That’s where data analysts come in. Data analyst jobs are expected to grow by 25% from 2020 to 2030, according to the Bureau of Labor Statistics (BLS). This says a lot; for one, it is a great career path to take, and secondly, the paycheck has the potential to be quite hefty!

The big question that college graduates, interns, entry-level employees, and people in low-paying jobs looking to switch careers often ask is, what is the average entry-level data analyst salary? There is no concrete answer to this question as many factors, such as experience, location, and the company you work for, come into play. In this guide, we will get into detail about data analytics and find out the average entry-level data analyst’s salary in 2022. Read on. 

Table of Contents

What does a data analyst do?

What is the average entry-level data analyst’s salary?

How does education impact a Data Analyst’s salary?

Does getting certified improve your salary prospects?

How does job location affect a Data Analyst’s salary?

Entry-level Data Analyst salary by experience

Entry-level Data Analyst salary by the industry

New salary transparency laws going into effect in 2023

The future of Data Analytics

How to get started with Data Analytics?

What does a data analyst do?

A data analyst’s main job is to deal with data. They collect, clean, model, interpret and present data. The data they present enables the organizations they work for to make more informed decisions. Data analysts work with all kinds of data, including but not limited to financial, consumer, marketing, and sales data.

  • Collect data- Data analysts gather data from various sources such as surveys, financial reports, social media platforms, and transactional data.
  • Clean data- Once collected, it must be cleansed of any inaccuracies or errors. This is crucial as even a small error can lead to incorrect conclusions.
  • Model data- Data analysts build models to identify relationships and trends in the data. This step helps them find answers to the questions their organizations are seeking.
  • Interpret data- After the data is modeled, it needs to be interpreted to be presented in a way that is easy to understand. Data analysts use their analytical and problem-solving skills to do this.
  • Present data- The final step is to present the data in a way that is easy to understand and can be used by the relevant people in the organization to make informed decisions. Data analysts use various tools, such as charts, graphs, and tables.

To be a good data analyst, you must further develop your data skills and learn to use data software such as SAS, SPSS, SQL, Google sheets, and Excel. But don’t worry; most tech skills can be developed through a certificate program or free online courses. In addition, you need to have strong, soft skills like communication to present the data in a way that is easy to understand.

How to become a data analyst in 2022? Watch this video for more insight.

What is the average entry-level Data Analyst’s salary?

Suppose you’re looking to get into the world of data analysis. In that case, you might wonder about the average entry-level salary for this role. According to Glassdoor, the average base pay for a data analyst in the United States in December 2022 is $62,382. The US Bureau of Labor Statistics reports a median annual salary of $82,326. At the same time, human resources consulting firm Robert Half lists a midpoint compensation of $106,500.

The above statistics show that we cannot pinpoint an exact salary for the data analytics job. There is no one answer to this question, as wages vary depending on various factors. These factors include education, certification, location, experience, and industry. Let’s take a closer look at some of them.

Entry-level Data Analyst salary by education

The level of education you have attained is one of the main factors determining your salary. Often than not, the higher your level of education, the higher your salary will be. A data analyst with a bachelor’s degree can earn an average salary of $60,000. Those with a master’s degree earn an average salary of around $70,000.

 

Entry-level Data Analyst salary by certification

If you have relevant certifications, you will be able to command a higher salary than those who do not have any certifications. Some of the most popular certifications for data analysts include Certified Analytics Professional (CAP), Certified Business Intelligence Professional (CBIP), and Microsoft Certified Solutions Expert (MCSE). Suppose you are looking forward to getting certifications for the data analytics job. In that case, the Tableau certificate offered by Pathstream prepares you to take the exams you need to get certified.

Check out what some alumni say about the program in this video.

Entry-level Data Analyst salary by location

Your location also plays a role in determining your salary. Data analysts in cities such as New York, San Francisco, and Boston earn higher salaries than in other parts of the country. This is because living costs in these cities are higher, and employers are willing to pay more to attract talent. Today, many companies consider your location when making job offers. The national midpoint salary for data analysts in the tech field is $110,250.

These are the midpoint salaries for data analysts in the tech field in the following US cities, according to Robert Half:

  • $121,275-Phoenix
  • $136,710-Chicago
  • $146,633-Washington, DC
  • $146,633-Boston
  • $152,145– New York
  • $148,838-San Francisco
  • $104,738-Little Rock, AR
  • $102,533-Tulsa, OK
  • $98,123-Savannah, GA
  • $93,713-Pueblo, CO

Entry-level Data Analyst salary by experience

As with most jobs, your salary as a data analyst will increase as you gain more experience. Someone who has been in the industry practicing for years is bound to earn much higher than someone who just graduated from college.

According to Glassdoor, a senior data analyst with 2-4 years experience would earn about $95,304. One with 5-7 years of experience, $128,321, and $143,837 for those with 8+ of experience. The higher you go up the corporate ladder, the higher your salary will be. This is possible because you will have more responsibilities, will be dealing with more complex data, and are expected to be more knowledgeable. In the US, as reported by Glassdoor, data analytics directors earn an average of $169,723. In contrast, data analytics managers make an average of $129,620.

Entry-level Data Analyst salary by the industry

Did you know that the industry you work in is also a factor that affects your salary? Data analysts in healthcare, finance, manufacturing, and technology tend to earn more than in other industries. This is because the demand for skilled labor is higher in these industries. In tech, for example, entry-level data analysts earn between $89,000 to $107,000.

Find out what top industries are hiring data analysts (and your salary potential)

New salary transparency laws going into effect in 2023

In this section, we will be discussing the new salary transparency laws that are set to go into effect in 2023. These laws aim to promote fairness and equality in the workplace by requiring companies to disclose the salaries of their employees to the public.

As the income gap continues to widen and pay discrimination persists, many believe that salary transparency is an important step toward creating more equitable and just workplaces. These new laws seek to give workers the information they need to negotiate fair salaries and to ensure that they are being paid equally for the same work as their colleagues.  Not all states have these laws but we will cover the ones that will be going into effect in 2023.

California: As of 2023, employers in California with 15 or more employees will be required to disclose salary ranges on job postings on the company’s hiring page or third-party websites such as Glassdoor, LinkedIn, or other job boards. In addition, businesses must provide current employees with the pay scale for their job upon request. This legislation will affect approximately 200,000 employers, including major companies like Apple, Disney, Google, and Meta, and will impact the 19 million workers in the state. California is now the largest state in which job listings are legally required to include salary information.

Rhode Island: In Rhode Island, the amended Pay Equity Act does not require employers to include pay ranges in job ads, but it does require businesses to provide the pay range to job applicants upon request. Employers must disclose the minimum and maximum range for a position before discussing compensation with a candidate, during the hiring process, and if an employee moves to a new position. They must also provide current employees with the salary range for their position upon request.

Washington: According to the Equal Pay and Opportunities Act in Washington, employers with at least 15 employees must disclose the pay range for a job in any digital or print advertisements on the company’s hiring board or on third-party websites. The law applies to companies that have at least one employee based in Washington, conduct business in the state, or are recruiting for jobs that can be filled remotely by someone in the state. In addition to salary information, job listings must also include a list of company benefits that new hires will receive, such as health care, retirement benefits, paid time off, and any other benefits required to be reported for federal tax purposes.

Other states, including Massachusetts and South Carolina, are considering similar measures. Experts say pay transparency is the wave of the future: Soon listing salary ranges on job ads will be standard practice.

Salary transparency laws can potentially benefit job seekers in the data analyst field by providing them with more information about pay expectations for different positions and companies. This can help job seekers negotiate more fair and reasonable salaries, and ensure that they are being paid equally for the same work as their colleagues.

Additionally, salary transparency laws may help to reduce pay discrimination and promote fairness in the hiring process. By requiring companies to disclose salary ranges for different positions, these laws can help to level the playing field for job seekers and ensure that they are not being underpaid due to their gender, race, or other protected characteristics.

The future of data analytics

Data is here to stay. The demand for data analysts is on the rise and is not about to stop anytime soon. The Bureau of Labor Statistics (BLS) estimates that employment for management analysts will grow by 14% from 2020 to 2030, much faster than the average for all occupations. They also estimate that the median salary for management analysts was $93,000 in May 2021. With the increasing use of data in businesses, the demand for data analysts is also expected to grow.

With data becoming increasingly important in the business world, those with the skills to analyze it will be in high demand. If you are thinking of a career in data analytics, now is the time to do it. With the right education and training, you can command a high salary and enjoy job security for years to come. So, is the data analytics career right for you? Find out more in this video.

How to get started with Data Analytics?

Data is the backbone of every business and is used to make informed decisions. As a result, there is a growing demand for data analysts who can help organizations make sense of their data. You, therefore, cannot lack a seat at the table if you have the skills to work with data.

Fortunately, according to the Bureau of Labor Statistics, getting started in data analytics does not require a degree. You can advance your education by getting the necessary certifications such as Tableau certification, Microsoft Certified Solutions Expert (MCSE): Data Management and Analytics, or the Cisco Certified Network Associate (CCNA). After getting certified, you will need to get some experience. You can do this by taking a project-based certificate program, working as an intern, freelancing, or research assistant in a data analytics company. 

Get started with your Data Analytics career with Pathstream.

To sum it up, the salary of a data analyst can vary greatly depending on various factors such as education, certification, location, experience, and industry. So if you are looking to become a data analyst, be sure to consider these factors. At Pathstream, the Tableau Data Analytics Certificate will help you perform various tasks using data analytics tools. So much so, it will help you make informed decisions using Tableau, spreadsheets, and SQL. By completing these courses, you will be on your way to a successful data analytics career.

Enroll today and get started on your path to success!

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