How to Become an Economist: Is it the Right Career for You?

Economist Career Video

Economics plays a vital role in shaping policies, businesses, and societies by analyzing how resources are produced, distributed, and consumed. If you’re intrigued by numbers, data, and decision-making, a career as an economist might be perfect. This article explores economists’ roles, responsibilities, and career paths, helping you determine if it’s the right fit.

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What Does an Economist Do?

Economists analyze how societies allocate resources, respond to economic changes, and address inflation, unemployment, and economic inequality. They apply theoretical frameworks and empirical methods to understand better markets, policy impacts, and human behavior in economics.

Economists work across diverse industries, from public policy and finance to environmental advocacy and healthcare. Their insights often influence major decisions in business strategy, government regulation, and international relations, making them integral to decision-making processes at all levels.

Key Responsibilities of an Economist

1. Researching Economic Issues
Economists investigate broad and specific topics, such as income inequality, healthcare costs, and international trade policies. They collect and analyze employment statistics, monitor inflation rates, and assess how policies impact specific demographics or industries. For example, an economist might study the effects of minimum wage changes on employment rates in various regions.

2. Analyzing Data
Economists rely heavily on data analysis to derive insights. They use statistical software like R, Stata, or Python to process large datasets, identify trends, and test economic theories. By interpreting this data, economists can provide a clearer picture of current and potential economic conditions.

3. Creating Economic Forecasts
Predicting future economic conditions is a core responsibility of economists. They develop models to forecast GDP growth, labor market trends, consumer spending, and more. These forecasts help businesses plan investments, governments craft budgets, and individuals make informed financial decisions.

4. Developing Policies and Recommendations
Economists often play a role in shaping public policies. They analyze the potential outcomes of policy proposals, such as tax reforms or trade agreements, and provide evidence-based recommendations to policymakers. For instance, an economist might evaluate the impact of a carbon tax on reducing emissions while maintaining economic growth.

5. Publishing Findings and Communicating Insights
Economists frequently share their research through reports, academic papers, and presentations. Their work must be accessible to various audiences, from government officials to the general public. This often involves simplifying complex models and statistics into actionable insights.

Areas of Specialization

Economists can focus on specific fields that align with their interests and expertise:

  • Labor Economics: Examines workforce trends, wages, and employment dynamics.
  • Health Economics: Studies the costs and benefits of healthcare systems and policies.
  • Environmental Economics: Analyzes the economic impact of environmental policies and sustainable practices.
  • International Economics: Focuses on global trade, exchange rates, and international financial systems.
  • Behavioral Economics: Investigates how psychological factors influence economic decision-making.

How Economists Contribute

Economists’ work has tangible impacts on society and organizations:

  • Public Sector: Economists help design welfare programs, optimize tax systems, and ensure fiscal responsibility.
  • Private Sector: They assist businesses in strategic planning, market analysis, and risk assessment.
  • Nonprofits and NGOs: Economists evaluate program effectiveness and suggest ways to maximize impact.

Tools and Techniques Used by Economists

To perform their work effectively, economists use a variety of tools and methodologies:

  • Statistical Software: Programs like Excel, R, Stata, and SAS are essential for data analysis.
  • Mathematical Models: Economists develop models to represent and predict economic phenomena.
  • Economic Theories: They use foundational theories, such as Keynesian or classical economics, to guide their analysis.
  • Surveys and Experiments: Collecting primary data through surveys or controlled experiments is common in specific specializations.

Economists’ ability to combine theory, data, and strategic thinking allows them to address complex questions and influence meaningful decisions in various domains.

What Is the Working Environment Like for an Economist?

Economists typically work in offices, universities, or research institutions. The job often involves desk work, data analysis, and team collaboration.

  • Office settings: Economists in government agencies or private firms often work in structured office environments.
  • Research roles: Academic economists may spend time teaching, conducting research, and publishing papers.
  • Remote opportunities: Increasingly, economists can work remotely, especially when conducting independent research.
  • Work-life balance: While some roles involve standard 40-hour weeks, project deadlines or consultancy work might require additional hours.

Travel is occasionally required for conferences, data collection, or policy discussions.

How Do You Become an Economist?

Becoming an economist typically involves a combination of education, experience, and professional development.

  1. Earn a bachelor’s degree: Start with a degree in economics, finance, mathematics, or a related field.
  2. Pursue advanced education: A master’s or Ph.D. in economics is often necessary for higher-level roles, especially in academia or research.
  3. Gain practical experience: Internships with government agencies, think tanks, or corporations can provide valuable insights.
  4. Develop technical skills: Proficiency in software like SAS, Stata, or R, as well as strong analytical and mathematical abilities, is essential.
  5. Certifications and memberships: Joining organizations like the American Economic Association (AEA) or earning certifications in data analytics can enhance your qualifications.

For more information on educational requirements and career paths, visit ONET Online.

What Is the Salary of an Economist?

Economists typically enjoy competitive salaries that reflect their expertise and the value of their work. According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for economists in 2022 was $113,940.

Salaries vary based on experience, specialization, and location:

  • Entry-level: Around $63,000 to $80,000 annually.
  • Experienced: Over $150,000 in senior or managerial roles.
  • Top industries: Economists in finance, consulting, and government agencies often earn higher-than-average wages.

What Is the Labor Market for Economists?

The demand for economists is expected to grow as organizations and governments increasingly rely on data-driven insights. The BLS projects a 6% growth rate for economists from 2022 to 2032, which aligns with the average for all occupations.

Key factors influencing job opportunities:

  • Expanding data analytics: Businesses need economists to interpret complex data and provide actionable recommendations.
  • Globalization: Economists with expertise in international trade and finance are highly sought after.
  • Government and policy roles: Demand for economic analysts in public policy remains steady.

For detailed labor market information, visit BLS’s Economist page.

What Are the Pros and Cons of Being an Economist?

Pros

  • High earning potential: Economists often enjoy competitive salaries and benefits.
  • Diverse career paths: Opportunities exist in academia, government, business, and nonprofit sectors.
  • Intellectual stimulation: Solving real-world problems offers a rewarding challenge.
  • Job stability: Economists are valued for their analytical skills and expertise.

Cons

  • Educational requirements: Advanced degrees are often necessary, which can be time-consuming and costly.
  • Stressful deadlines: High-pressure environments may require balancing multiple priorities.
  • Limited physical activity: Many roles involve long hours at a desk.

What Are Related Jobs for an Economist?

If you’re interested in economics but want to explore related fields, consider these careers:

  • Market Research Analyst: Analyze market trends to help businesses understand consumer preferences and make informed decisions.
  • Data Scientist: Use statistical and machine learning techniques to extract insights from complex datasets.
  • Actuary: Assess financial risks using mathematics and statistics, primarily in insurance and finance.
  • Financial Analyst: Evaluate investment opportunities and provide recommendations to businesses and individuals.
  • Operations Research Analyst: Apply analytical methods to improve organizational decision-making and efficiency.

What Types of Jobs Can an Economist Pursue?

Economists can find roles across various industries:

  • Academia: Teaching and conducting research at universities.
  • Government: Developing public policies or analyzing economic data for agencies like the Federal Reserve.
  • Private sector: Consulting, financial analysis, or corporate strategy roles.
  • Nonprofits: Evaluating the impact of programs and policies.

How Do I Know If I Should Be an Economist?

Becoming an economist is a rewarding yet challenging career that demands analytical skills, intellectual curiosity, and a keen interest in understanding economic systems. If you’re wondering whether this profession aligns with your abilities and passions, here are some strategies to help you decide:

Take a Career Aptitude Test

Using a career aptitude test like the Free Career Fit Test™ can be an excellent first step in assessing your compatibility with a career as an economist. This test evaluates your skills, interests, and personality traits to determine whether they match this role’s analytical and problem-solving demands. Such assessments can also uncover strengths you might not have considered, helping you make a confident decision.

Conduct Informational Interviews

A highly effective strategy for career exploration is connecting with professional economists. Reach out to people in academia, government, think tanks, or the private sector. Ask about:

  • The day-to-day responsibilities of their job.
  • The challenges and rewards of their work.
  • Their career journey and advice for aspiring economists.

Informational interviews can provide a real-world perspective beyond job descriptions, giving you deeper insights into whether the role suits your aspirations.

Evaluate Your Skills and Interests

To thrive as an economist, consider whether you possess the following traits:

  • Analytical Thinking: Economists analyze complex problems, requiring a logical and systematic approach.
  • Quantitative Skills: Proficiency in math and statistics is critical for interpreting data and building models.
  • Curiosity About Systems: A genuine interest in understanding how markets, policies, and societies interact is essential.
  • Problem-Solving Aptitude: Economists frequently tackle real-world issues, from unemployment to environmental challenges.
  • Communication Skills: Presenting complex findings clearly to diverse audiences is vital.

If these skills and interests resonate with you, it’s a good sign that economics could be a fulfilling career choice.

Engage in Self-Reflection

Ask yourself the following questions:

  • Do I enjoy working with data and solving puzzles?
  • Am I intrigued by market behavior, public policy, and global trade?
  • Do I prefer roles that balance independent research with collaborative projects?

Your honest answers can further clarify whether this field aligns with your strengths and passions.


How Can I Learn More About a Career as an Economist?

Learning more about the profession of economics is crucial for making an informed decision. Below are some resources and steps to deepen your understanding:

Explore ONET Online

Visit ONET Online for detailed descriptions of economist roles, including key responsibilities, required skills, and potential career paths. This resource also provides information on related occupations, helping you identify other opportunities that might interest you.

Join Professional Associations

Organizations like the American Economic Association (AEA) offer a wealth of resources for aspiring economists. Membership benefits often include access to academic journals, career services, and networking opportunities. Attending their events or conferences can connect you with industry professionals and current trends.

Read Industry Publications

Staying informed about economic issues and trends can help gauge your field interest. Consider subscribing to publications like The Economist, Journal of Economic Perspectives, or Harvard Business Review to stay updated on relevant topics.

Take Introductory Courses

If you’re unsure about committing to a degree program, consider enrolling in introductory economics courses. Online platforms like Coursera or edX offer classes taught by top universities, allowing you to explore economic concepts at your own pace.

Gain Hands-On Experience

Internships or research assistant roles in organizations like government agencies, think tanks, or universities can provide firsthand experience in economic research. This exposure helps you build relevant skills and confirm your professional interest.

Network with Economists

Use platforms like LinkedIn to connect with economists in various industries. Join discussion groups or attend webinars to engage with professionals and learn more about their work.

By actively exploring these resources and strategies, you can make an informed decision about pursuing a career in economics and prepare yourself for success in this dynamic field.

Conclusion

Becoming an economist can be a fulfilling and financially rewarding career path for those passionate about data, analysis, and problem-solving. To determine if this is the right path, consider taking a career test like the Free Career Fit Test™ to align your goals with your skills and interests. With the proper education, training, and dedication, a career in economics offers vast opportunities to make a meaningful impact.