Economics is a flexible and engaging field. A career in economics puts you at the centre of how the world makes choices and uses resources. This guide is for you. It can help if you want to influence government policy. It’s also useful for exploring financial markets or doing academic research. It will help you take the right steps.
What Does an Economist Actually Do?
It’s a good idea to know what the job involves before you plan your career. Economists study monetary and fiscal policy. They also write reports on these topics. They collect and analyse data, spot patterns, and solve tough economic problems. Then, they inform corporations, governments, and the public about their findings. They often work alone. But they also team up with data scientists, statisticians, and other experts.
Step 1: Get a Bachelor’s Degree
An undergraduate degree is your first step. You don’t have to follow a strict rule for your major. However, a degree in economics or a related field, like accounting, finance, or math, is a great option.
There are two main types of bachelor’s degrees in economics. They are often called different names. They are the Bachelor of Arts (BA) and the Bachelor of Science (BS). The BA focuses on theory and social sciences. The BS emphasises quantitative skills and practical business abilities. At college, you take classes in microeconomics, macroeconomics, statistics, and calculus. These subjects are key to advanced economic research.
Step 2: Gain Practical Experience Early
Build your resume now. Don’t wait for graduation. Search for internships in economics. Consider roles like junior researcher, financial analyst intern, or economic development intern. As an intern, you’ll help professional economists. You’ll collect data, create charts, and analyse the economy.
Internships help you find out if you prefer working in the public, private, or academic sector.
Step 3: Get a Master’s Degree
For most people who want to be economists, this is the most important stage. Most of the time, economists need at least a master’s degree to work in the field. Some economists, mainly those who work for the government, can get jobs with just a bachelor’s degree, though. Some people need a Ph.D.
Most economists’ employment should require at least a master’s degree in economics. This seems to be true in most places, not just the United States.
A PhD is often needed. It’s needed for academic research. It’s also important for key policy roles and leading big international organisations. PhD programmes usually last four to seven years. It depends on the time needed for research and writing a dissertation. PhD economists see clear benefits. They often earn more money. They also get specialised, high-impact jobs.
Step 4: Learn how to use technology
Modern economics is based on statistics. You need to be good at math and analysis and know how to use software like SAS, Stata, or R. As economists work with data scientists and quantitative analysts, Python has also become more relevant.
Good communication skills are important. Economists often need to explain their research to non-experts, policymakers, and executives. They need to turn complex data into clear, useful ideas. This is a key part of their work.
Step 5: Pick a career path
One of the best things about working in economics is that it covers a lot of ground. If you want to work in the private sector, look for jobs with corporations like real estate firms, utility companies, and banks. If you want to help the public good, look for jobs. Focus on socially responsible businesses, governments, colleges, startups, and organisations.
The average compensation for management, scientific, and technical consulting jobs is $110,120. Jobs in local and state government let you help with budget planning, economic development, and policy review. The District of Columbia, New York, and Illinois are some of the places where economists make the greatest money.
Step 6: Make connections with other professionals
Joining professional groups can help you advance in your career faster. The American Economic Association (AEA) has resources. They also host events. These help you meet others. These groups help you stay updated on your field and connect with new people.
To stay current, read peer-reviewed articles. Attend conferences. Join discussions. It shows employers and colleagues that you’re dedicated to your profession.
Expectations for Pay and Job Prospects
There are a lot of financial benefits to working in economics. As of May 2024, the 15,880 economists in the United States earned an average of $132,650 a year. Entry-level jobs pay less. However, senior economists and PhDs in high-demand fields can make over $200,000 a year.
The US Bureau of Labor Statistics states that the number of economists will grow by 1% from 2024 to 2034. On average, around 900 job openings will occur each year over this decade. These openings will mainly be due to retirements and career changes, rather than new jobs. This shows how important strong academic credentials are. A good professional network is also key.
Last Thoughts
Becoming an economist takes time. You need to learn new things, improve your skills, and grow in your career. The benefits last as long. The field is tough but rewarding. It offers good pay and lets you influence decisions that shape economies and society.
Start by building a strong academic foundation. Get hands-on experience from an early stage. Pursue higher education that aligns with your goals. Stay connected to the broader economics community throughout your career.