Economists study how society distributes scarce resources such as land, labor, raw materials, and machinery to produce goods and services. They conduct research, collect and analyze data, monitor economic trends, and develop forecasts. They research issues such as energy costs, inflation, interest rates, imports, or employment levels.

Most economists are concerned with practical applications of economic policy. They use their understanding of economic relationships to advise businesses and other organizations, including insurance companies, banks, securities firms, industry and trade associations, labor unions, and government agencies. Economists use mathematical models to develop programs predicting answers to questions such as the nature and length of business cycles, the effects of a specific rate of inflation on the economy, or the effects of tax legislation on unemployment levels.

Economists who work for government agencies may assess economic conditions in the United States or abroad, in order to estimate the economic effects of specific changes in legislation or public policy. They may study areas such as how the dollar=s fluctuation against foreign currencies affects import and export levels. The majority of government economists work in the area of agriculture, labor, or quantitative analysis; some economists work in almost every area of government. For example, economists in the U.S. Department of Commerce study production, distribution, and consumption of commodities produced overseas, while economists employed with the Bureau of Labor Statistics analyze data on the domestic economy such as prices, wages, employment, productivity, and safety and health. An economist working in State or local government might analyze data on the growth of school-aged populations, prison growth, and employment and unemployment rates, in order to project spending needs for future years.

Economists held about 70,000 jobs in 1998. Private industry provided about 4 out of 5 jobs for salaried workers, particularly economic and marketing research firms, management consulting firms, banks, securities and commodities brokers, and computer and data processing companies. A wide range of government agencies provided the remaining jobs. The Departments of Labor, Agriculture, and Commerce are the largest Federal employers of economists. A number of economists combine a full-time job in government, academia, or business with part-time or consulting work in another setting.

Graduate training is required for many private sector economist and marketing research analyst jobs, and for advancement to more responsible positions. Economics includes many specialties at the graduate level, such as advanced economic theory, econometrics, international economics, and labor economics. Students should select graduate schools strong in specialties in which they are interested. Undergraduate economics majors can choose from a variety of courses, ranging from microeconomics, macroeconomics, and econometrics, to more philosophical courses, such as the history of economic thought.

In addition to courses in business, marketing, and consumer behavior, marketing majors should take other liberal arts and social science courses, including economics, psychology, English, and sociology. Because of the importance of quantitative skills to economists, courses in mathematics, statistics, econometrics, sampling theory and survey design, and computer science are extremely helpful.

In the Federal Government, candidates for entry-level economist positions must have a bachelor=s degree with a minimum of 21 semester hours of economics and 3 hours of statistics, accounting, or calculus. Competition is keen for positions requiring only a bachelor=s degree, however, and additional education or superior academic performance is likely to be required to gain employment. A master=s degree is usually the minimum requirement for a job as an instructor in junior and community colleges. In most colleges and universities, however, a Ph.D. is necessary for appointment as an instructor. A Ph.D. and extensive publications in academic journals are required for a professorship, tenure, and promotion.

Whether working in government, industry, research organizations, marketing, or consulting firms, economists and marketing research analysts with graduate degrees usually qualify for more responsible research and administrative positions. Many businesses, research and consulting firms, and government agencies seek individuals who have strong computer and quantitative skills and can perform complex research. A Ph.D. is necessary for top economist positions in many organizations.

Many corporation and government executives have a strong background in economics. A bachelor=s degree with a major in economics may not be sufficient to obtain some positions as an economist, but is excellent preparation for many entry-level positions as a research assistant, administrative or management trainee, marketing interviewer, or any of a number of professional sales jobs.

Employment of economists and marketing research analysts is expected to grow about as fast as the average for all occupations through 2008. Many job openings are likely to result from the need to replace experienced workers who transfer to other occupations, retire, or leave the labor force for other reasons.

Opportunities for economists should be best in private industry, especially in research, testing, and consulting firms, as more companies contract out for economic research services. The growing complexity of the global economy, competition, and increased reliance on quantitative methods for analyzing the current value of future funds, business trends, sales, and purchasing should spur demand for economists. The growing need for economic analyses in virtually every industry should result in additional jobs for economists. Employment of economists in the Federal Government should decline more slowly than other occupations in the Federal workforce. Slow employment growth is expected among economists in State and local government.

An advanced degree coupled with a strong background in economic theory, mathematics, statistics, and econometrics provides the basis for acquiring any specialty within the field. Those skilled in quantitative techniques and their application to economic modeling and forecasting, coupled with good communications skills, should have the best job opportunities.

Bachelor degree holders in economics may face competition for the limited number of economist positions for which they qualify. They ill qualify for a number of other positions, however, where they can take advantage of their economic knowledge in conducting research, developing surveys, or analyzing data. Many graduates with bachelor's degrees will find good jobs in industry and business as management or sales trainees, or administrative assistants.

Economists with good quantitative skills are qualified for research assistant positions in a broad range of fields.

Median annual earnings of economists were $48,330 in 1998. The middle 50 percent earned between $34,650 and $74,500 a year. The lowest 10 percent earned less than $26,540 and the highest 10 percent earned more than $94,810 a year. Median annual earnings in the industries employing the largest number of economists and marketing research analysts in 1997

Federal Government $65,300

Management and public relations $51,900

Research and testing services $47,500

The Federal Government recognizes education and experience in certifying applicants for entry-level positions. The entrance salary for economists having a bachelor's degree was about $20,600 a year in 1999; however, those with superior academic records could begin at $25,500. Those having a master's degree could qualify for positions at an annual salary of $31,200. Those with a Ph.D. could begin at $37,700, while some individuals with experience and an advanced degree could start at $45,200. Starting salaries were slightly higher in selected areas where the prevailing local pay was higher. The average annual salary for economists employed by the Federal Government was $67,800 a year in early 1999.

Economists are concerned with understanding and interpreting financial matters, among other subjects. Other jobs in this area include financial managers, financial planners, insurance underwriters, actuaries, credit analysts, loan officers, and budget analysts.

For information on careers in economics and business, contact:: National Association for Business Economics, 1233 20th St. NW, Suite 505,Washington, DC 20036.

This information is taken from the Occupational Outlook Handbook, published (online) by the Bureau of Labor Statistics of the U.S. Department of Labor.