Data about non‐PhD physicists from the NSF‐sponsored 1974 National Survey of Scientists and Engineers were analyzed. Use of this survey partially resolves the difficulties of defining non‐PhD physicists and of finding an unbiased population group to sample, which were present in earlier studies such as the 1973 AIP‐APS Register of Physicists and Related Scientists and the National Register Surveys.Only 13% of the 16,000 who hold only a baccalaureate degree in physics are employed in physics, 61% are in engineering and 9% in other sciences. These numbers are 28%, 39% and 13% for master’s degree holders. Almost everyone employed as a physicist has earned his highest degree in physics, regardless of the level of his degree.Non‐PhDs are employed predominantly by business and industry and, to a lesser extent, research institutes. Less than 2% of baccalaureates teach, and 50% of masters who teach are not employed for four‐year colleges and universities.Non‐PhDs are heavily involved in administration, design and development, and other primary work activities.The salaries of non‐PhD physicists are roughly comparable to those of PHDs, probably because the types of jobs held by non‐PhDs tend to be higher paying (at a fixed degree level) than those held by PhDs.The foreign‐born component is 3% for bachelor’s degree holders, 10% for master’s and 23% for PhDs.