Occupation Profile for Economists
Conduct research, prepare reports, or formulate plans to aid in solution of economic problems arising from production and distribution of goods and services. May collect and process economic and statistical data using econometric and sampling techniques.
Signficant Points
- Slower than average job growth is expected as firms increasingly employ workers with titles that reflect specialized duties rather than the general title of economist.
- Job seekers with a background in economics should have opportunities in various occupations.
- Candidates who hold a master’s or Ph.D. degree in economics will have the best employment prospects and advancement opportunities.
- Quantitative skills are important in all economics specialties.
Earnings
Median annual wage and salary earnings of economists were $77,010 in May 2006. The middle 50 percent earned between $55,740 and $103,500. The lowest 10 percent earned less than $42,280, and the highest 10 percent earned more than $136,550.
In the Federal Government, the starting salary for economists having a bachelor’s degree was $35,752 in 2007. Those having a master’s degree could qualify for positions with an annual salary of $43,731. Those with a Ph.D. could begin at $52,912, and some individuals with experience and an advanced degree could start at $63,417. Starting salaries were higher in selected geographical areas where the prevailing local pay was higher. The average annual salary for economists employed by the Federal Government was $94,098 a year in 2007.
Job Outlook
Employment of economists is expected to grow about as fast as the average for all occupations. The demand for workers who have knowledge and skill in economics is projected to grow faster, but these workers are often in occupations other than economist. Job prospects will be best for those with graduate degrees in economics.
Employment change. Employment of economists is expected to grow seven percent from 2006 to 2016, about as fast as the average for all occupations. Demand for economic analysis should grow, but the increase in the number of economist jobs will be tempered as firms hire workers for more specialized jobs with specialized titles. Many workers with economic backgrounds will work in related occupations with more specific job titles, such as financial analyst, market analyst, public policy consultant, researcher or research assistant, and purchasing manager. Overall employment growth also will be slowed because of the relatively high number of economists employed in slow growing or declining government sectors. Employment in Federal government agencies is expected to decrease, and employment in State and local government is expected to grow more slowly than employment in the private sector.
Employment growth should be fastest in private industry, especially in management, scientific, and technical consulting services. Rising demand for economic analysis in virtually every industry should stem from the growing complexity of the global economy, the effects of competition on businesses, and increased reliance on quantitative methods for analyzing and forecasting business, sales, and other economic trends. Some corporations choose to hire economic consultants to fill these needs, rather than keeping an economist on staff. This practice should result in more economists being employed in consulting services.
Job prospects. In addition to job openings from growth, the need to replace experienced workers who transfer to other occupations or who retire or leave the labor force for other reasons will create openings for economists.
Individuals with a background in economics should have opportunities in various occupations. As indicated earlier, some examples of job titles often held by those with an economics background are financial analyst, market analyst, public policy consultant, researcher or research assistant, and purchasing manager.
People who have a master’s or Ph.D. degree in economics, who are skilled in quantitative techniques and their application to economic modeling and forecasting, and who also have good communications skills, should have the best job opportunities. Like those in many other disciplines, some economists leave the occupation to become professors, but competition for tenured teaching positions is expected to be keen.
Bachelor’s degree holders may face competition for the limited number of economist positions for which they qualify. However, they will qualify for a number of other positions that can use their economic knowledge. Many graduates with bachelor’s degrees will find jobs in industry and business as management or sales trainees. Bachelor’s degree holders with good quantitative skills and a strong background in mathematics, statistics, survey design, and computer science also may be hired as researchers. Some will find jobs in government.
Candidates who meet State certification requirements may become high school economics teachers. The demand for secondary school economics teachers is expected to grow, as economics becomes an increasingly important and popular course.
Employment
Economists held about 15,000 jobs in 2006. Government employed 52 percent of economists, in a wide range of agencies, with 32 percent in Federal Government and 20 percent in State and local government. The remaining jobs were spread throughout private industry, particularly in scientific research and development services and management, scientific, and technical consulting services. A number of economists combine a full-time job in government, academia, or business with part-time or consulting work in another setting.
Employment of economists is concentrated in large cities. Some work abroad for companies with major international operations, for U.S. Government agencies, and for international organizations, such as the World Bank, International Monetary Fund, and United Nations.
In addition to the previously mentioned jobs, economists hold faculty positions in colleges and universities. Economics faculties have flexible work schedules and may divide their time among teaching, research, consulting, and administration. These workers are counted as postsecondary teachers, not economists.