The veterinary industry is undergoing a profound transformation, with new graduates riding a wave of rising salaries while established professionals see slower inflation-adjusted growth. These dynamics, coupled with shifting debt trends and increasing diversity, were at the forefront of the 2024 AVMA Veterinary Business and Economic Forum.

Salaries on the Rise—But Who Benefits Most?
From 2023 to 2024, the national average for veterinary salaries continued to climb in nominal terms, but inflation-adjusted growth has lagged behind, echoing a trend since 2020. For established veterinarians, this stagnation has been particularly striking, with real income levels aligning with those seen in the early 2000s. Meanwhile, new veterinary graduates are entering the workforce with starting salaries averaging $130,000—a figure bolstered by additional compensation like signing bonuses (61%), moving allowances (40%), and student loan repayments (18%).

Dr. Chris Doherty, AVMA’s assistant director of strategic business research and outreach, explained the implications during his presentation, “The People of Veterinary Medicine: Who Are They, and How Are They Working?” He highlighted a narrowing income gap between new graduates and seasoned professionals. Once commanding a 93% premium over new graduates, established veterinarians now see only a 19% difference in inflation-adjusted earnings.

Debt Trends: Good News Meets Growing Concerns
Educational debt levels have stabilized in recent years, thanks to government loan deferments and historically low interest rates during the pandemic. However, that respite is waning. The mean debt-to-income ratio (DIR) for new veterinarians entering full-time employment is 1.4:1, down from the concerning averages of 2:1 or higher seen in previous years. Yet, as interest rates climb, concerns are mounting about rising debt burdens.

Dr. Doherty noted that while the average DIR looks favorable, significant disparities remain. In 2024, 12.3% of graduates entered the profession with a DIR exceeding 2.5:1. Additionally, 39% of graduates reported debts between $200,000 and $400,000, while 16.6% carry debt exceeding $300,000—a sobering reality for many.

The Shifting Face of Veterinary Medicine
The demographic composition of veterinary professionals is also evolving. Among 2024 graduates, 81% are women, compared to 74% of the broader profession. Diversity is gradually improving: 11% of new graduates identify as Hispanic or Latino, 8% as Asian, and 4% as Black. This marks progress compared to the broader veterinary population, which remains 89% white.

Practice roles are similarly shifting. Most new veterinarians (60.4%) enter full-time positions, while others pursue internships, residencies, or advanced degrees. Interestingly, companion animal practice continues to dominate, attracting 72.9% of graduates, while food animal and equine practices draw just 3.3% and 5.9%, respectively.

What’s Next?
As the profession grapples with wage compression, debt challenges, and evolving demographics, it’s clear that veterinary medicine is at a pivotal juncture. For new graduates, the future seems promising with higher starting salaries and diverse opportunities. For established veterinarians, adapting to this new economic reality will be key to maintaining their professional edge.

Dr. Doherty’s insights from the 2024 AVMA Veterinary Business and Economic Forum offer a roadmap to navigate these changes, ensuring a sustainable and inclusive future for all in veterinary medicine.