WHAT IS ECONOMISTS?
Economists study the production and distribution of resources, goods, and services by collecting and analyzing data, researching trends, and evaluating economic issues.
Economists typically do the following:
- Research and analyze economic issues
- Conduct surveys and collect data
- Analyze data using mathematical models and statistical techniques
- Prepare reports, tables, and charts that present research results
- Interpret and forecast market trends
- Advise businesses, governments, and individuals on economic topics
- Design policies or make recommendations for solving economic problems
- Write articles for publication in academic journals and other media sources
Economists apply economic analysis to issues within a variety of fields, such as education, health, development, and the environment. Some economists study the cost of products, healthcare, or energy. Others examine employment levels, business cycles, or exchange rates. Still, others analyze the effect of taxes, inflation, or interest rates.
Economists often study historical trends and use them to make forecasts. They research and analyze data using a variety of software programs, including spreadsheets, statistical analysis, and database management programs.
Nearly half of all economists work in federal, state, and local government. Federal government economists collect and analyze data about the U.S. economy, including employment, prices, productivity, and wages among other types of data. They also project spending needs and inform policymakers on the economic impact of laws and regulations.
Many economists work for corporations and help them understand how the economy will affect their business. Specifically, economists may analyze issues such as consumer demand and sales to help a company maximize its profits.
Economists also work for research firms and think tanks, where they study and analyze a variety of economic issues. Their analyses and forecasts are frequently published in newspapers and journal articles.
Some economists work for companies with major international operations and for international organizations such as the World Bank, International Monetary Fund, and United Nations.
Many people with an economics background become postsecondary teachers.
The following are examples of types of economists:
Econometricians develop models and use mathematical analyses to test economic relationships. They use techniques such as calculus, game theory, and regression analysis to explain economic facts or trends in all areas of economics.
Financial economists analyze savings, investments, and risk. They also study financial markets and financial institutions.
Industrial organization economists study how companies within an industry are organized and how they compete. They also examine how antitrust laws, which regulate attempts by companies to restrict competition, affect markets.
International economists study international trade and the impact of globalization. They also examine global financial markets and exchange rates.
Labor economists study the supply of workers and the demand for labor by employers. Specifically, they research employment levels and how wages are set. They also analyze the effects of labor-related policies, such as minimum wage laws, and institutions, such as unions.
Macroeconomists and monetary economists examine the economy as a whole. They may research trends related to unemployment, inflation, and economic growth. They also study fiscal and monetary policies, which examine the effects of money supply and interest rates on the economy.
Microeconomists study supply and demand decisions of individuals and firms. For example, they may determine the quantity of products consumers will demand at a particular price.
Public finance economists study the role of government in the economy. Specifically, they may analyze the effects of tax cuts, budget deficits, and welfare policies.
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Economists held about 16,900 jobs in 2012, of which 45 percent were in government. Another 19 percent worked in management, scientific, and professional consulting services.
The industries that employed the most economists in 2012 were as follows:
|Federal government, excluding postal service||28%|
|Management, scientific, and technical consulting services||19|
|State and local government, excluding education and hospitals||17|
|Scientific research and development services||10|
|Finance and insurance||5|
Economists typically work independently in an office. However, many economists collaborate with other economists and statisticians, sometimes working on teams. Some economists work from home, and others may be required to travel as part of their job or to attend conferences.
Some economists combine a full-time job in universities or business with part-time consulting work.
Most economists work full time. Some work under pressure of deadlines and tight schedules that may require long hours.Education and Training
Most economists need a master’s degree or Ph.D. However, some entry-level jobs—primarily in government—are available for workers with a bachelor’s degree.
A master’s degree or Ph.D. is required for most economist jobs. Positions in business, research, or international organizations often require a combination of graduate education and work experience.
Students can pursue an advanced degree in economics with a bachelor’s degree in a number of fields, but a strong background in math is essential. A Ph.D. in economics requires several years of study after earning a bachelor’s degree, including completion of detailed research in a specialty field.
Candidates with a bachelor’s degree qualify for some entry-level economist positions, including jobs with the federal government. An advanced degree is sometimes required for advancement to higher level positions.
Most who complete a bachelor’s degree in economics find jobs outside the economics profession as research assistants, financial analysts, market research analysts, and similar positions in business, finance, and consulting.
Aspiring economists can gain valuable experience from internships that involve gathering and analyzing data, researching economic issues and trends, and writing reports on their findings. In addition, related experience, such as working in business or finance, can be advantageous. Personality and Interests
Economists typically have an interest in the Thinking, Persuading and Organizing interest areas, according to the Holland Code framework. The Thinking interest area indicates a focus on researching, investigating, and increasing the understanding of natural laws. The Persuading interest area indicates a focus on influencing, motivating, and selling to other people. The Organizing interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.
If you are not sure whether you have a Thinking or Persuading or Organizing interest which might fit with a career as an economist, you can take a career test to measure your interests.
Economists should also possess the following specific qualities:
Analytical skills. Economists must be able to review data, observe patterns, and draw logical conclusions. For example, some economists analyze historical employment trends to make future projections on jobs.
Communication skills. Economists must be able to explain their work to others. They may give presentations, explain reports, or advise clients on economic issues. They may collaborate with colleagues and sometimes must explain economic concepts to those without a background in economics.
Critical-thinking skills. Economists must be able to use logic and reasoning to solve complex problems. For instance, they might identify how economic trends may affect an organization.
Detail oriented. Economists must pay attention to details. Precise data analysis is necessary to ensure accuracy in their findings.
Math skills. Economists use the principles of statistics, calculus, and other advanced topics in mathematics in their economic analyses.
Writing skills. Economists must be able to present their findings clearly. Many economists prepare reports for colleagues or clients; others write for publication in journals or for news media.Pay
The median annual wage for economists was $91,860 in May 2012. The median wage is the wage at which half the workers in an occupation earned more than the amount and half earned less. The lowest 10 percent earned less than $51,410, and the top 10 percent earned more than $155,490.
In May 2012, the median annual wages for economists in the top five industries employing economists were as follows:
|Finance and insurance||$110,580|
|Federal government, excluding postal service||106,850|
|Scientific research and development services||94,630|
|Management, scientific, and technical|
|State and local government,|
excluding education and hospitals
Most economists work full time. Some work under pressure of deadlines and tight schedules that may require long hours.Job Outlook
Employment of economists is projected to grow 14 percent from 2012 to 2022, about as fast as the average for all occupations.
Businesses and organizations across many industries are increasingly relying on economic analysis and quantitative methods to analyze and forecast business, sales, and other economic trends. Demand for economists should grow as a result of the increasing complexity of the global economy, additional financial regulations, and a more competitive business environment. As a result, demand for economists should be best in private industry, especially in management, scientific, and professional consulting services.
However, employment in the federal government—the largest employer of economists—is projected to decline. As a result, the need for economists in the federal government is likely to be limited.
Job prospects should be best for those with a master’s degree or Ph.D., strong quantitative and analytical skills, and related work experience. As companies contract out economics-related work, most job openings for economists will be in consulting services.
Applicants with a bachelor’s degree should face very strong competition for jobs. Although there will be greater demand for workers with knowledge of economics, many bachelor’s degree holders will likely find jobs outside the economist occupation, working instead as research assistants, financial analysts, market analysts, and in similar positions in business, finance, and consulting. For More Information
For more information about economists, visit
For information about careers in business economics, visit
For information on federal government education requirements for economist positions, visit
To find job openings for economists in the federal government, visit
Where does this information come from?
The career information above is taken from the Bureau of Labor Statistics Occupational Outlook Handbook. This excellent resource for occupational data is published by the U.S. Department of Labor every two years. Truity periodically updates our site with information from the BLS database.
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I think I have found an error or innacurate information on this page. Who should I contact?
This information is taken directly from the Occupational Outlook Handbook published by the US Bureau of Labor Statistics. Truity does not editorialize the information, including changing information that our readers believe is inaccurate, because we consider the BLS to be the authority on occupational information. However, if you would like to correct a typo or other technical error, you can reach us at email@example.com.
I am not sure if this career is right for me. How can I decide?
There are many excellent tools available that will allow you to measure your interests, profile your personality, and match these traits with appropriate careers. We recommend the Career Personality Profiler assessment ($29), the Holland Code assessment ($19), or the Photo Career Quiz (free).
ECONOMICS SERIES 7:1