What Is an Economist?
An economist studies how societies use scarce resources to produce goods and services and how those resources are distributed. Economists analyze data, build models, test theories, and use their findings to interpret past economic behavior and forecast future trends. Their work informs public policy (taxes, employment programs, interest-rate decisions), corporate strategy (product choices, investment, pricing), and academic understanding of markets and behavior.
Key takeaways
– Median U.S. pay for economists (2023): $115,730 per year (Bureau of Labor Statistics).
– Typical entry-level education: master’s degree; many research/academic roles require a Ph.D.
– Large employer groups: federal/state government (≈36% of economists), academia, private corporations, think tanks.
– Projected employment growth: about 5% over the next ten years (BLS).
– Economics degrees build analytical, quantitative, and critical-thinking skills that transfer to many careers (finance, consulting, policy).
Job scope and requirements
Typical duties
– Collect and clean economic data (surveys, administrative data, market data).
– Build and estimate models (macroeconomic, microeconomic, econometric).
– Produce forecasts for GDP, employment, inflation, industry demand, etc.
– Write technical reports, policy briefs, academic papers, and executive summaries.
– Present findings to stakeholders (policy makers, corporate leaders, investors).
– Advise on strategy, regulation, and policy design.
Education and credentials
– Bachelor’s degree: possible for some entry-level roles (especially in government or business analyst roles).
– Master’s degree: typical entry-level requirement for “economist” job titles in many organizations.
– Ph.D.: common and often required for senior research, academic positions, central banks, and high-level policy roles.
– Useful adjunct credentials: certificates or coursework in statistics, econometrics, data science, finance, or public policy.
Core technical and soft skills
– Quantitative: statistics, econometrics, calculus, linear algebra.
– Programming/data: Python, R, Stata, SQL, advanced Excel.
– Communication: writing clear reports and presenting complex findings to nontechnical audiences.
– Domain knowledge: macroeconomics, labor economics, industrial organization, international trade, public finance, or financial economics.
– Critical thinking and problem solving.
Economists influence strategic economic plans
How economists’ work is used
– Government policy: assessing effects of tax changes, welfare programs, or stimulus and advising on interest-rate or fiscal policy impacts.
– Corporate strategy: forecasting demand, identifying market trends, evaluating mergers/acquisitions, and advising product or pricing choices.
– Investment decisions: producing macro and sector views that inform asset allocation and risk management.
– Program evaluation: designing and analyzing randomized or quasi-experimental studies to test program effectiveness.
Practical examples
– A central bank economist forecasting inflation to guide monetary policy.
– A corporate economist modeling consumer demand to decide whether to launch a new product.
– A think-tank economist estimating the job impacts of a proposed trade agreement.
– A labor economist evaluating retraining programs and advising workforce policy.
Are economists in demand?
Current outlook
– BLS projects about 5% job growth for economists over the next decade — roughly in line with average growth across occupations. Growth is driven by needs in government, finance, and consulting for analytical expertise.
– Many employers value economics training because it provides rigorous quantitative and critical-thinking abilities that are applicable across industries.
Where they work
– Government (federal, state, local): policy analysis, regulatory agencies, central banks.
– Academia: teaching and research.
– Private sector: corporations, banks, asset managers, consulting firms, think tanks.
– International organizations: IMF, World Bank, OECD, UN agencies.
Is an economics degree worth it?
Benefits
– Versatile degree: prepares you for careers in finance, consulting, public policy, data analytics, and more.
– Strong earning potential, on average higher than many other social-science majors.
– Rigorous training in reasoning and quantitative methods.
Considerations
– Advanced roles (high-level research, academia, senior policymaking) usually require a master’s or Ph.D. — expect additional time and cost.
– The degree’s value depends on how you complement it: internships, technical skills (programming, econometrics), and domain experience markedly improve employability and pay.
What is the highest paying job in economics?
– Direct “economist” roles are well paid (median $115,730 in 2023).
– Holders of economics degrees frequently move into higher-paying roles such as financial manager (median $134,180, BLS) and other senior finance or executive positions.
– Corporate VP roles, investment banking, chief economist positions at financial firms or central banks, and quantitative analyst roles can command top compensation depending on experience and industry.
The Bottom Line
Economists apply analytical and quantitative tools to understand how resources are allocated and to inform policy and strategic decisions. Demand is steady, and an economics degree can unlock many career paths, particularly if paired with strong data and programming skills and relevant practical experience. If you want to pursue high-level research or academic work, plan for postgraduate study; if you aim for industry roles, focus on internships and applied technical skills.
Practical steps to become an economist (students and career changers)
1. Decide your target role
– If you want policy or academic research → plan for a Ph.D.
– If you want corporate, consulting, or government analyst roles → a master’s often suffices; a bachelor’s may qualify for some entry-level jobs.
2. Build a recommended coursework foundation
– Microeconomics, macroeconomics, econometrics.
– Advanced statistics and applied econometrics.
– Calculus and linear algebra.
– Optional but valuable: finance, public policy, industrial organization, international economics.
3. Learn and practice essential technical tools
– Programming: Python or R (data manipulation, visualization, machine learning).
– Econometrics software: Stata, R, or Python libraries (statsmodels, scikit-learn).
– Data skills: SQL for databases; Excel for quick analysis.
– Version control and reproducible research tools: Git, Jupyter/ R Markdown.
4. Gain practical experience
– Internships: government agencies, central banks, banks, consultancies, think tanks.
– Research assistant positions for professors or research centers.
– Industry projects or capstone courses that produce a portfolio piece.
5. Specialize
– Choose a domain (labor, public finance, monetary policy, financial economics, international trade, health economics) and take focused courses or research.
– Publish or present applied work (policy briefs, working papers, conference presentations).
6. Network and showcase your skills
– Join professional associations and attend conferences (American Economic Association, regional groups).
– Build a LinkedIn profile and personal website with CV, papers, and code samples.
– Reach out to alumni and faculty for informational interviews and referrals.
7. Apply strategically
– For government roles: track agency job postings and ensure you meet clearance/eligibility requirements.
– For private sector: tailor resumes to highlight modeling, forecasting, and business-impact work.
– Prepare for interviews with case studies, technical problems, and clear explanations of past projects.
8. Continue professional development
– Take short courses in machine learning, causal inference, or specialized econometric methods.
– Consider certifications (data science, CFA for finance-focused careers) if relevant.
– Stay current with policy debates, macro/market conditions, and academic literature.
Recommended resources
– U.S. Bureau of Labor Statistics — Occupational Outlook Handbook: Economists (salary, outlook, typical duties).
– London School of Economics — Careers in Economics guidance.
– University career services and departmental advisors for internship and graduate-study guidance.
– Introductory and applied textbooks on econometrics and macro/microeconomics; online courses in Python/R and data analysis.
Sources
– Investopedia. “What Is an Economist?” (source material provided).
– U.S. Bureau of Labor Statistics. Occupational Outlook Handbook: Economists (employment, pay, outlook).
– U.S. Bureau of Labor Statistics. Financial Managers (median wage for comparison).
– London School of Economics. Careers in Economics.
– University of British Columbia. Economics program information.
– National Center for Education Statistics. Employment outcomes of bachelor’s degree holders.
If you’d like, I can:
– Draft a sample 4-year course and internship plan for an undergraduate economics major.
– Create a skill-building roadmap (learning modules for Python, econometrics, and SQL).
– Summarize typical interview questions for economist roles and suggested answers.