The Job Market Outlook for Financial Analysts

Once it was a precarious position- the demand for financial analysts could fluctuate in a week, due to the economy or because of a string of financial scandals in the corporate world. Now the job market for analysts is much more stable, and looks to steadily grow in both demand and salary expecttions for at least the next 10 years.

Since deregulation of the banking industry began in the 80s, the demand for financial analysts has sharply risen. After deregulation, banks and other financial industries have been gradually expanding the amount of financial services that they offer. This has led to high demand for analysts that work with the bank, not only on their own ventures, but to lend financial services to the customers as well.

The amount of investment that the average consumer is expected to engage in has steadily grown as well. Financial analysts have been invaluable at helping consumers with their 401(k)s, Roth IRAs and a dizzying array of college investment plans. Many of the college savings plans have rules that are changes often, and newer plans continue to appear, such as the 529 and the Independent 529 (begun in 2003).

The average salary of financial analysts is expected by the U.S. Bureau of Labor Statistics to grow faster than the rate of increase of the overall income in the next few years. The statistics show that the median income of financial analysts was $44,950 in 1998. The median income was $61,910 in 2004. And in 2006, the median income of financial analysts

is $66,203.

It is estimated that the 10-year job growth rate of analyst positions will be 17.33 percent over the next 10 years, with an average yearly growth rate of 6,315 jobs in the U.S. The majority of the new jobs will be in larger regions with a substantial financial center, such as New York City, L.A., the Silicon Valley in California, and Dallas, TX.

The current demand for analysts has resulted in an ever tighter job market, making corporations compete for the viable candidates to fill the new positions. Analyst salaries will ocntinue to increase as long as this trend continues, which U.S. Labor statistics show to continue through at least 2014.

A BS in accounting or finance is usually enough to enter the field, and those looking to break into the feild can do so with less education and expereince than was needed a decade ago. Many companies that would ordinarily require several years of experience are now hiring graduates directly out of college to meet their demands for new analysts.
A long as deregulation is not reversed, andh there is no indication that it will be, the field looks to be one that will weather any downturn of the economy, outsourcing, and/or consumer inflation, aaking it one of the better bets for careers in the currently uncertain economy.