This report describes the initial employment and educational paths pursued by physics and astronomy degree recipients at the bachelor's, master's, and PhD levels for the classes of 2002-03 and 2003-04. The report includes starting salaries, primary work activities, ratings of professional challenge and other aspects of initial employment. The report also describes the fields of study and types of support for physics degree recipients who continued their education. The data that forms the basis of the report comes from the American Institute of Physics' Initial Employment Survey. (Contains 20 figures and 7 tables.)