Becoming an Economist

Economists work in government, private-sector financial organizations of all sizes, and in all sectors of industry. They collect and analyze financial and social information and apply economic techniques and theories to reach judgments on which they advise what future action should be taken.

The Job:

The work of an economist is usually office based. Economists analyze situations, both financial and social, using a range of economic tools and techniques. Others use the results of their analyses to develop strategic plans. Their work can be global. They may consider, for example, the economic relationships between countries or, on a local level; they may study the economic development of small communities.

Their work can be qualitative or quantitative (econometrics). All economists must have a good grasp of numbers, since a regular part of their work involves using statistics and manipulating numerical data. They may also use sophisticated computer-modeling techniques.

In government they are concerned both with long-term financial strategy and short-term requirements. Economists provide forecasts such as what will be the situation in five years time if current trends continue, or what policies could be adopt ed to produce a very different outcome. Analyses of government spending and income, fluctuations in the value of currencies, the flow of world trade, of imports, exports, and interest rates all lead to a view on the strategy governments should take for the health of their economies.

A few economists are employed by central banks. These are organizations in each country that supervise the banking system and ensure that banks work within the law. In some countries they have the power to set interest rates and in others they advise government on those they would like to see set.

Commercial bankers are often just as concerned with the economies of particular industries as they are of countries. They may be providing loans to large company clients and need economists to analyze the markets their clients are in to check that the loans are likely to be repaid.

Banks also employ economists for fund management departments, which analyze investments and decide which to buy, which to sell. Economists are involved in giving advice on matters such as mergers and acquisitions and the prospects for a profitable takeover of one company by another.

Working in industry, economists advise about the market for products, the competition they face, and the pricing strategy they can adopt. In oil companies, for example, the price of the oil depends on the volume of world production and the strength of demand, plus the competition from other oil producers.

A few economists are employed as consultants by the larger management consultancy companies. In this role, they advise a large range of clients about business economic matters.

Some economists become specialists in one area, where the application of their talents provides an important service. Land economics is concerned with property and investment in land and buildings. Health economics is the study of the cost effectiveness of health care, how to meet demand for health services, and the problems of health insurance.

Training Involved:

Training varies from one employer to another. Some employers recruit degree-level economists and send them to complete postgraduate studies as part of their training. Increasingly this type of study is on a distance-learning or part time basis, which allows trainees to work and study at the same time.

Some employers provide rotational training (short experiences in each of their departments) so that trainee economists gain a general overview of the business as a whole and broaden their experience.

The training of economists by consultants involves starting as a member of a team and working with an ever-widening range of clients, taking on more and more demanding assignments.

For economists, training continues throughout their working careers. However, the formal mixture of external courses and internal training takes between 2 to 4 years to complete.

Useful Qualifications to Have:

Useful subjects include: economics at degree or postgraduate level.

Salary Expectations:

The base salary range of an Economist ranges from $85,050 to $187,298 annually, while the median salary for most Economists is $133,500 annually. (US Base Pay)

Future Prospects:

There will always be a demand for economists and there are unlikely to be any dramatic increases or falls in job opportunities. Most of those who gain qualifications in economics, however, do not become economists. Instead, they take other jobs in the financial sector, such as bankers, accountants, fund managers, traders, or insurance underwriters. While the economy is expanding, the number of jobs for economists rises; while it is contracting the number of jobs falls.

For further information, contact government departments, especially those concerned with finance and tax. These are good starting points for those seeking information about an economics career, as are banks and their trade associations, plus professional bodies representing economists.