Economist
The field of economics involves the study of how societies produce, distribute, and utilize resources. Economists, as social scientists, focus on various economic aspects such as trade, taxation, industrial productivity, and employment trends, employing statistical analyses and models to understand complex systems. They can work in diverse settings, including government agencies, academic institutions, corporations, and research firms, often serving as advisors or educators. With a typical annual salary of around $113,940, economists generally hold a master’s degree and are in strong demand, with a projected employment growth rate of 6%, which is faster than average.
The work of an economist primarily revolves around research and analysis, with an emphasis on collecting and interpreting data to create models that forecast economic conditions. Their findings play a crucial role in informing policy decisions, guiding business strategies, and contributing to scholarly research. Specializations within the field exist, such as labor, industrial, and environmental economics, each focusing on specific economic factors and trends. Overall, the role of economists is vital in addressing pressing economic challenges and advising various stakeholders on best practices and future trends.
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Subject Terms
Economist
Snapshot
Career Cluster(s): Agriculture, Food & Natural Resources, Finance, Government & Public Administration, Science, Engineering, Technology & Mathematics
Interests: Mathematics, banking, finance, research, analyzing data
Earnings (Yearly Average): $113,940 per year $54.78 per hour
Employment & Outlook: 6% (Faster than average)
Entry-Level Education Master's degree
Related Work Experience None
On-the-job-Training None
Overview
Sphere of Work. Economists are social scientists who study how society produces, distributes, and uses its resources. They research and analyze a wide range of economic areas, such as trade, taxation, industrial productivity, business, and employment trends. Economists study these and other areas using statistical analyses, models, and sampling techniques. Each economist tends to focus on one specific area, or sub-field, of economics.
Economists work in a number of professional capacities. Some work as advisors to government leaders, providing insight into the effects of legislation on the economy. Others are academics, teaching economic theories and concepts to postsecondary students. Major corporations and private research firms hire other economists to assess such areas as client demand, productivity, and market conditions.
Work Environment. Economists generally work in office settings in government buildings and state capitals, in colleges and universities, and at businesses and private “think tanks.” In each setting, economists must use their analytical, communication, and critical thinking skills as they conduct studies of current conditions and present their findings and opinions to their superiors and other audiences.
Economists often work alone in their research, although they may work in teams in collaborative efforts to study comprehensive and complex issues. They generally work forty-hour workweeks, although they may be called upon to work extra hours when faced with project deadlines or asked to present their ideas at conferences or meetings.
Occupation Interest. Economists have the professional ability to understand extremely complex systems that are often of great importance to world leaders, high-level business executives, and the intellectual community. Those economists who focus on microeconomics help major corporations maximize their profits while forecasting consumer demand and prices. Economists who focus on macroeconomics are invaluable to organizations and agencies that seek to understand economic growth, inflation, banking and finance, unemployment, and productivity. Because of their expertise in the many fields and subfields of economics, these individuals are often in high demand.
A Day in the Life—Duties and Responsibilities. An economist’s most important duties are research and analysis. An economist must study the many elements that contribute to a company or political system’s operational strengths and weaknesses. The economist uses computer software to compile and organize data from consumer surveys, the media, and internal documents, such as production reports and profit and loss statements. This information helps the economist to create a comprehensive model of the subject. The data and models that an economist generates help all parties involved to understand the relationships between certain concepts and the root causes of many issues.
After the economist creates workable models and frameworks, they use them to forecast conditions for the short- and long-term future. The economist may report their findings to help government officials draft and implement effective policy. A corporate economist can use findings to help executives determine the areas in which investments may yield the best returns. Such models enable an economics-oriented “think tank” to compile reports for the government and its corporate clients. Meanwhile, an academic economist uses such information to write scholarly articles and books while they conduct the typical duties of a college professor. In each situation (faculty, corporate, or government), an economist may be called upon to present their findings, theories, and opinions at conferences, board meetings, and hearings.
Tax Economists. Tax economists collect and study data and the effects of taxes and policies on national income and overall business activities.
Labor Economists. Labor economists collect and interpret labor data to forecast labor trends and suggest changes in labor policies.
Industrial Economists. Industrial economists study the organizational structure, methods of financing, production costs and techniques, and marketing policies of various types of businesses to develop improvements.
Environmental Economists. Environmental economists assess and quantify the economic benefits of using more environmental alternatives, such as the use of renewable energy resources.
Work Environment
Immediate Physical Environment. Economists spend the majority of their time in government or private offices, classrooms (in the case of university economists), and other locations where social science research can be conducted. Additionally, they may be asked to present information to government agencies, conferences, and other venues.
Human Environment. Economists may conduct their research alone or with collaborators. In either case, economists come into contact with many different types of professionals, including corporate leaders, elected and appointed government officials, students, academic peers, and the media.
Technological Environment. Economists should be familiar with computers, including many different types of office, research, and modeling software. Such programs include basic word processing and spreadsheet systems, chart and graph generators, and specialized databases. Economists should be Internet savvy. Additionally, economists need to use other forms of basic office technology, such as smartphones, tablets, presentation technologies, personal organizers, and scanners.
Education, Training, and Advancement
High School/Secondary. High school students who are interested in economics should take courses in economics, accounting, business, statistics, math, computer science, and data processing. As half of all professional economists work for federal, state, or local government organizations, high school students may also benefit from studying political science, social studies, government, and history. High school students interested in becoming economists may also find English and communications courses helpful in preparation for report writing and public speaking responsibilities they will have as economists.
Postsecondary. In the field of economics, advanced degrees make an individual more attractive to potential employers. Undergraduates should take courses of relevance to the field, including statistics, accounting, calculus, and econometrics (the application of math and statistics to the study of finance and economics). They should also take courses in specific areas such as monetary policy, microeconomics, industrial/organizational economics, and macroeconomics. Graduate students in pursuit of their master’s or doctoral degree should take more specialized courses that help hone their expertise in a particular field of economics, such as international economics, economic history, or public finance.
Related Occupations
− Actuary
− Management Analyst & Consultant
Bibliography
“Economists.” Occupational Outlook Handbook. Bureau of Labor Statistics, US Department of Labor, 17 Apr. 2024, www.bls.gov/ooh/life-physical-and-social-science/economists.htm. Accessed 25 Aug. 2024.
“Occupational Employment and Wages, May 2023: 19-3011 Economists.” Occupational Employment Statistics. Bureau of Labor Statistics, US Department of Labor, 3 Apr. 2024, www.bls.gov/oes/current/oes193011.htm. Accessed 25 Aug. 2024.