Michigan Occupational Information System
#044 - ECONOMIST

Economists study economic relationships and the solving of problems arising from the production and distribution of goods and services. They forecast economic trends and study and develop the best ways to use resources of land, raw materials, labor, machinery, and energy.

NATURE OF THE OCCUPATION

Economists may:

Gather, compile, analyze, and interpret data in terms of economic significance, using personal and/or mainframe computers

Teach theories, principles, and methods of economics

Provide advice and consultation to business, public and private agencies, and other employers

Develop economic guidelines and standards and prepare points of view used in forecasting trends and formulating economic policy

Prepare technical reports of surveys and research studies in written, graphic, pictorial, and tabular form

Develop methods for collecting and processing economic and statistical data

Supervise research projects and students' study projects

Tools and equipment used may include:

OCCUPATIONAL SPECIALTIES

Economists may specialize in these areas:

050.067-010 AGRICULTURAL ECONOMISTS study agricultural problems to determine how farm resources should be used to improve efficiency and increase income. They also study foreign economic development and agricultural trade.

050.067-010 FINANCIAL ECONOMISTS study the nature of money, credit and credit instruments, and operations of banks and other financial institutions to develop monetary policies and to forecast financial activity.

050.067-010 LABOR ECONOMISTS collect and interpret data on labor supply and demand, wages and hours, management policies, labor legislation, arbitration, and other factors.

050.067-010 TAX ECONOMISTS collect and study data on problems of public finance. They study the effect of taxes and policies on national income and overall business activity.

050.067-010 INDUSTRIAL ECONOMISTS study production costs, organizational structure, and marketing policies of businesses in order to find possible improvements.

050.067-010 ECONOMISTS may also specialize as business economists, commodity-industry analysts, international trade economists, energy economists, natural resource economists, health economists, transportation economists, urban and regional economists, and Market-Research Analysts (see MOIScript #86). Some Economists specialize in fields requiring a background in more than one area, such as econometrics which combines mathematical and statistical as well as economic theory. Still other economists use their knowledge and skills to interpret economic developments through newspaper and magazine articles and radio and television programs.

Significant numbers of Economists work for colleges and universities as faculty members (see MOIScript #97). In nonacademic settings, Economists may have job titles such as research and planning coordinator, economic development analyst, staff or chief Economist, or corporate titles such as vice president.

Many Economists combine a full-time job in government, business, or academic institution with part-time or consulting work in another setting.

In addition to learning about these specialties, you may also find it helpful to explore the following MOIScripts:

WORKING CONDITIONS AND REQUIREMENTS

Economists, except those in beginning level jobs, work under a minimum of supervision. They may work alone or with other Economists, members of other professions, or with company management concerned with policy decisions. Those teaching economics may supervise a department or work with and under the direction of a department head.

Working conditions of Economists are generally the same as those of other professionals who work in offices. Their surroundings are well lighted and comfortably heated or air-conditioned.

Economists in private industry generally work a 5-day, 40-hour week. However, they frequently have tight schedules and heavy work loads requiring overtime work. College teachers spend from 9 to 15 hours per week in the classroom, but research work, consultations with students and staff members, and preparation for classes may increase their workweek to over 40 hours. Consulting work done by Economists outside of their regular job may also require longer hours.

Economists may have to travel to attend conferences, conduct research, or to make speeches.

Membership in professional associations is not required, but many Economists join at least one to keep up with current events in the field of economics. These associations may include The American Economic Association, The Econometric Society, and The National Association of Business Economists. Economists teaching at colleges and universities may join an organization such as The American Association of University Professors. Members of associations and unions must pay periodic dues.

You Should Prefer:

• Work that is technical and scientific

• Work with both people and the communication of information

• Work that requires creative imagination

You Should Be Able To:

• Use reason and logic and think abstractly

• Understand the meanings and relationships of words

• Communicate clearly and effectively in speech and in writing

• Understand mathematical and statistical methods

• Perform arithmetic operations quickly and accurately

• See details and spot errors in written material or tables

• Work within precise standards of accuracy

• Make decisions based on judgment or verifiable and measurable data

Math Problem You Should Be Able To Solve:

You are selling an item wholesale for $1.08 which costs you $.50 to produce. The retail price is normally $3.00 each. Competition heats up so you offer a special quantity discount - 144 wholesale pieces at $.75 each. How much money will you make if you sell 144 pieces to the next customer?

Reading Example You Should Be Able to Read and Comprehend:

Aggregate supply refers to all the goods and services provided by the economy. Aggregate demand is the total planned spending by consumers, businesses, and governments for the purchase of the aggregate supply.

Writing Example You Should Be Able to Produce:

You should be able to prepare a written document explaining supply side economics and its political & corporate ramifications.

Thinking Skill You Should Be Able to Demonstrate:

You should be able to look at a given company's financial records and decide on ways that they could use their capital more effectively.

EDUCATION AND PREPARATION OPPORTUNITIES

NOTE: A Bachelor's Degree (four years of study beyond high school) or a Master's Degree (five to six years of study beyond high school) or a Professional Degree or Doctorate (seven to ten years of study beyond high school) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in the MOIScript:

***SCHOOL SUBJECTS***

0600 BUSINESS , 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 1100 ECONOMICS , 1300 ENGLISH , 1600 FOREIGN LANGUAGE , 1700 GOVERNMENT , 1900 HISTORY , 2000 LIFE MANAGEMENT , 2200 MATH , 3000 SOCIAL STUDIES

***VOCATIONAL EDUCATION PROGRAMS***

There are no Vocational Education Programs related to this MOIScript

***POSTSECONDARY PROGRAMS***

049 ECONOMICS

Programs in Economics provide opportunities to gain the knowledge and skills needed for employment applying economic theory and interpreting economic data. Employment may be found in business, industry, government, or education. Individuals who teach Economics at the secondary school level must have a Michigan Teaching Certificate.

Courses vary but may be offered in the following areas:

 Search for a College and/or Instructional Program

***APPRENTICESHIP OPPORTUNITIES***

There are no Apprenticeships related to this MOIScript

***MILITARY TRAINING OPPORTUNITIES***

There are no Military Programs related to this MOISCRIPT  

E-Learning Courses and Programs 

OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY

At least a bachelor's degree is required for employment and in most cases a master's or doctoral degree. Passing civil service exams may be required of Economists seeking government employment. Those who meet Michigan certification requirements may become economic teachers.

            School-to-Work opportunities include:

informal apprenticeships

mentorships

job shadowing experiences

touring a local Economist employer

internships

volunteer work with a Economist employer

community service work with an agency

Opportunities for experience are available through postsecondary programs in economics. College students may be able to do research for universities, the government, or business firms or work as tutors or teaching assistants.

Direct application to employers and civil service offices is one method of finding a job. College placement offices, faculty, and professional publications may be helpful also. The American Economic Association maintains a registry, Job Openings for Economists (JOE), which lists both academic and nonacademic positions. In addition, you should access and search the Internet's on-line employment services sites such as:

National Association of Business Economists Employment Opportunities (http://www.nabe.com)

American Marketing Association's Job Bank (http://www.ama.org)

AAEA Employment Service (http://www.aaea.org/employment.html)

American Economic Association Job Openings for Economists (http://www.eco.utexas.edu/joe/)

Economic Research Service Employment Opportunities (http://www.ers.usda.gov/AboutERS/Employment/)

Michigan Talent Bank (http://www.michworks.org/mtb/user/MTB_EMPL.EntryMainPage)

America's Job Bank (http://www.ajb.dni.us)

Monster.com (http://www.monster.com) 

JobOptions (http://ww1.joboptions.com/jo_main/index.jsp)

Academe This Week (http://chronicle.com/jobs/)

Michigan Department of Career Development (http://www.michigan.gov/mdcd)

Michigan Works! (http://www.michiganworks.org)

            You should also enter an electronic resume on these on-line services.

EARNINGS AND ADVANCEMENT

Earnings of Economists depend on type of work, amount of training, experience, level of degree earned, and the employer. Securities and investment companies, banks, manufacturers, and independent research agencies generally pay the highest salaries. Economists in administrative and advisory positions generally earn higher salaries while jobs in teaching usually earn the lowest.

Nationally, the median annual salary of Economists was $49,140 in 2001.  The median yearly earnings of  "all" workers in the U.S. were $31,044 in 2001.   Annual starting salary offers to recent graduates with a bachelor's degree ranged from $35,000 to $46,000 and averaged $40,776. Those with advanced degrees had higher offers. The average annual salary for economics professors at public institutions of higher education was $83,613 (2000-2001).

In 2002, beginning salaries for inexperienced Economists with a bachelor's degree and employed by the federal government were $22,737 or $28,164 yearly, depending on academic background. Those with a master's degree could qualify for positions paying $34,451, while those with a Ph.D. could begin at $41,684. A limited number of persons are hired for GS 13-15 level positions paying from $59,409 to $107,357. In early 2002, the average annual beginning salary of Economic Analysts working in the private sector was $37,400. Senior Economic Analysts working in the private sector had average annual salaries of $57,800.

Recent Michigan graduates with a Bachelor's Degree in Economics received starting salaries comparable to those paid nationally. Academic instructors, including Economists, teaching in the East North Central region that includes Michigan colleges and universities earned average salaries ranging from $35,625 for instructors to $81,429 for professors during the academic year 2001-02.

In mid-2002, departmental analyst/Economists for the State of Michigan earned from $31,612 - $52,054 per year. Those in supervisory and administrative positions earned more.

Economists may earn extra income from part-time teaching, consulting, and conducting research, and with royalties from publications.

Fringe benefits may include paid vacations and holidays; life, accident, disability, and hospitalization insurance; retirement plans; and paid sick leave at 75% to 100% of their annual salary after six to seven years of employment. Also, college or university teachers may have sabbatical leave at 75%-100% of their annual salary after 6 to 7 years of employment. Some employers may offer stock purchase or savings plans.

Advancement usually consists of promotion to work requiring more experience and responsibility. Administrative duties may also increase as a person advances. Experience, education, and performance in past jobs are important factors in advancement. In education, publication of books and articles may also spur advancement.

EMPLOYMENT AND OUTLOOK

About 14,500 Economists were employed nationwide in 2000. About another half of that number held economics & marketing faculty positions in colleges and universities. Employment of Economists is expected to grow about as fast as the average for all occupations through the year 2010. About 28.2% of them were self-employed. The industry distribution for this occupation looked like this:

Overall, Economists have better job prospects than other social scientists. Opportunities will be best for Economists well trained in economic theory, econometrics, and statistics for jobs in business and industry, research organizations, and consulting firms. Graduates with Bachelor's and Master's Degrees may face keen competition for positions as Economists, but many will find jobs in research, management, and administration. Holders of Ph.D. degrees may find opportunities scarce in teaching, but good in business, industry, and government.  

About 1,350 Economists are employed in Michigan. Most worked in urban areas. Actually, about 100 were employed as teachers in secondary schools in Michigan during the 2000-01 school year. Most worked in urban areas. Most were employed in services including educational institutions, management consultation firms, economic and market research firms.  

Employment of Michigan Economists is expected to grow more slowly than the average for all occupations through the year 2008. However, because of the low employment total, only 40 annual openings are expected with 10 due to growth and 30 to replace Economists who retire, die, or leave the labor force for other reasons. Additional openings will occur as workers change jobs or occupations.  

While competition is stiff for persons with Bachelor's Degrees and in traditional economist jobs, particularly in education, positions that combine economic background with other skills such as computer science, marketing, and finance are opening up. Many individuals will find employment in government, industry and business management or sales trainees or research assistants. Those with advanced degrees may find administrative, research and planning positions in industry and government.

MICHIGAN'S EMPLOYMENT OUTLOOK TO 2008

SOURCES OF ADDITIONAL INFORMATION

Printed occupational information is available upon written request from the sources below:

SUMMARY PROFILE

The occupation of Economist can be summarized by the following:

Copyright © 2003 Michigan Department of Career Development