Economics

Economist Career Overview

Economists measure, analyze, and predict market behavior in a variety of sectors. Successful economists have strong quantitative and analytical skills, and possess either a bachelor’s degree from a strong undergraduate program or a graduate degree.

In addition to academic qualifications, familiarity with industry-specific software as well as Excel fluency are essential. Economists will often have to explain their findings to those who are unfamiliar with jargon, so the ability to communicate complex financial information to laypeople is essential.

Economist Training & Education

No matter what type of career an economist has, a college degree is essential -- these careers require highly specialized mathematical, statistical, or financial knowledge that can’t be acquired solely on the job. Degrees in accounting, business, economics and finance are all good backgrounds for positions as financial analysts. Researchers, government economists, and fund managers generally possess an MBA or a graduate degree.

Economist Career & Salary Outlook

In general, the career outlook for these professions is good, with the US Department of Labor Statistics forecasting growth in most areas. Because economists, like consultants, generally perform a consultative service, job opportunities are not necessarily tied to healthy markets. In fact, it could be argued that the function of economists is at its most important in times of economic recession—their guidance is often key to resolving economic malaise.

Starting financial analysts can earn anywhere from $35,000 to more than $100,000 depending on their qualifications and the quality of the degree they possess. Actuaries typically earn a salary of between $50,000 and $100,000. These salaries can also carry performance bonuses to incentivize careful work. An economist with a graduate degree can expect to earn between $40,000 and $120,000 depending on public or private sector employment.

Career Fields/Specializations

Economist Career

Macroeconomists are concerned with studying the behavior of firms and government, and they may research issues such as energy distribution and cost, interest or exchange rates, taxes, employment levels, or other macroeconomic phenomena. On the other hand, economists specializing in microeconomics examine consumer behavior by aggregating and analyzing data or performing behavioral studies, among other techniques. Regardless of specialization, a career as an economist is extremely research-intensive.

Economists must often create their own methods for researching and analyzing these data. They might, for example, commission a survey to gather information, and then use the information in mathematical modeling techniques to create economic forecasts that predict how the economy will change. Aggregating large amounts of complex economic data is no simple task, and economists must be adept at presenting data efficiently and clearly. Those working in think tanks or universities publish papers articulating their findings, so writing skill is essential to success in this field as well.

Financial Analyst Career

Analysts provide financial advice to individuals and institutions. Personal Financial Advisors work for mutual funds or financial services firms and assist individuals in developing and executing an investment plan. On the other hand, financial analysts work for corporations and financial institutions, and may perform a variety of different tasks:

• Commodities Trading
• Market Analysis
• Auditing, etc

Financial analysts generally utilize software tools to analyze statistics and financial data, and they must also be familiar with business reports such as financial statements, profit and loss sheets and other documents. This career path requires a college degree, typically in accounting, economics, finance, business, or even mathematics. Knowledge of tax laws is essential for accountants, and analysts in general should be familiar with various computer programs used to prepare and analyze financial data.

Actuary Career

The primary function of an actuary is to work with businesses to help them determine the level of risk involved in making business decisions. Comfort with statistics is essential, as successful risk management requires painstaking analysis of massive amounts of data.

Actuaries are an essential part of the insurance and reinsurance industry, but they can also find employment in a wide range of industries that require analysis of large amounts of information to manage risk. In an insurance company, an actuary analyzes data to estimate how likely a given event—such as an automobile accident—is to occur, allowing the insurance company to ensure profitability. In other industries, an actuary may be involved in creating company policies and managing company pension plans.