How to Become an Economist (From Student to Statistician!)
If you’ve ever been intrigued by the world of economics or wondered what it takes to become a professional economist, you’re in the right place.
In this guide, we’ll explore the EXACT steps you need to take to launch your career as an economist. We’ll discuss:
- The skills you need.
- The education that can help you succeed.
- How to secure a job as an economist.
So, whether you’re a novice in economic theories or an individual with a knack for financial forecasting looking to upskill, stay tuned.
We’re about to unravel the roadmap to become a successful economist.
Let’s get started!
Steps to Become an Economist
Step 1: Gain a Strong Foundation in Mathematics and Statistics
If you aspire to become an economist, you should begin by obtaining a solid foundation in mathematics and statistics.
Economists use these disciplines to analyze data, forecast trends, and develop economic models.
They need a deep understanding of calculus, algebra, and statistics to conduct research and interpret complex data.
In high school, take as many advanced math courses as possible, including statistics.
This will help you gain a strong base in critical thinking and problem-solving skills, which are essential for economic theory and analysis.
When you start your bachelor’s degree program, focus on courses in mathematics, statistics, econometrics, and economic theory.
Some universities offer specific programs in mathematical economics that you might consider if you plan to go on to graduate school.
Remember, the better your mathematical and statistical skills, the better equipped you’ll be for the complex tasks of an economist.
Even if the math seems challenging at first, with dedication and practice, you can master the skills that will serve as an essential foundation for your career as an economist.
Step 2: Earn a Bachelor’s Degree in Economics or a Related Field
To start your career as an economist, you need to earn a bachelor’s degree in economics or a related field such as mathematics, statistics, or finance.
These programs typically cover microeconomics, macroeconomics, econometrics, and economic theory.
You’ll also learn about various economic systems and study how markets work.
In addition to economics-related courses, you’ll also need to take courses in calculus and statistics since they are important in this field.
While in school, try to get involved in economic research projects or internships that can provide you with practical experience and make you more appealing to potential employers.
Some economists choose to double major or minor in a related field, such as political science, to broaden their understanding of economic issues.
This can be a good choice if you’re interested in working in a specific sector, such as government or international economics.
Earning a bachelor’s degree is a critical step because most entry-level economist jobs require at least this level of education.
It can also prepare you for further study in graduate school if you decide to specialize in a specific area of economics.
Step 3: Develop Proficiency in Economic Software and Tools
As an economist, you’ll be expected to handle a large amount of data and use statistical techniques to make sense of it.
Therefore, proficiency in software tools commonly used in economic analysis is critical.
Tools like Excel, Stata, SPSS, SAS, and programming languages such as R or Python are frequently used for data manipulation, econometric analysis, and forecasting.
Depending on your chosen field within economics, some tools may be more relevant than others.
For instance, if you’re interested in quantitative economics or econometrics, learning how to use statistical software like Stata or R will be very beneficial.
If you’re more into macroeconomics and forecasting, familiarity with EViews can be advantageous.
While in school, you can take courses in statistical software or data analysis to strengthen your proficiency.
Additionally, online tutorials and free resources can help you get hands-on experience using these tools.
Remember, your ability to handle and analyze data effectively can significantly enhance your value as an economist.
In addition to software proficiency, you should also be adept at utilizing various economic databases like the World Bank’s World Development Indicators or the Federal Reserve Economic Data.
These databases contain a wealth of information that economists use for research and policy analysis.
Learning how to navigate these databases effectively can be a great asset in your career as an economist.
Step 4: Engage in Undergraduate Research Opportunities
As an economics student, it’s important to get involved in research opportunities during your undergraduate studies.
These opportunities can give you a closer look at the field, help you understand economic theories and concepts more deeply, and develop your analytical and problem-solving skills.
Seek opportunities to work as a research assistant to your professors or get involved in their research projects.
This will allow you to gain direct experience in collecting and analyzing data, using statistical software, and writing reports.
This experience is invaluable and can greatly enhance your understanding of economics, as well as prepare you for further research in graduate school.
You may also want to consider writing an undergraduate thesis if your program allows it.
An economics thesis can help you delve into a specific economic issue or topic that interests you.
Writing a thesis can also improve your research and writing skills, and it can be a significant achievement to highlight when applying for jobs or graduate school.
In addition, participating in economics clubs or societies at your university can provide you with further opportunities to engage in discussions about economic issues and meet like-minded individuals who share your interest in economics.
Step 5: Pursue Internships in Economic Analysis or Research
Internships provide invaluable opportunities for gaining practical experience in the field of economics.
It’s advisable for aspiring economists to explore internships related to economic analysis or research, as this will give you a chance to apply your theoretical knowledge and academic skills in real-world situations.
As an intern, you will likely be involved in tasks such as collecting data, conducting statistical analysis, contributing to research projects, and drafting reports.
This hands-on exposure will not only boost your understanding of economic concepts and principles, but also improve your technical skills in data analysis and interpretation.
Internships also offer networking opportunities, allowing you to connect with experienced economists and other professionals in your field.
These connections may later assist you in finding job opportunities or provide you with further insights about the field.
Always remember to stay proactive and seize every opportunity to learn from your peers, mentors, and even your own observations and analysis.
Also, having an internship on your resume can demonstrate to future employers your commitment to the field of economics.
It shows you are eager to learn and ready to take initiative.
This can set you apart from other candidates when you start applying for entry-level economist positions or graduate studies.
If you’re currently enrolled in a university program, be sure to leverage your school’s career services to find potential internships.
Otherwise, you can search online, look for opportunities at local government agencies, financial institutions, research firms, or non-profit organizations.
Remember, it’s important to choose an internship that aligns with your career goals.
This ensures that you’re gaining the appropriate experience and skills that will be beneficial for your future career as an economist.
Step 6: Consider Advanced Education Such as a Master’s or Ph.D.
To further develop your skills and open more career opportunities, you may want to consider pursuing an advanced degree in economics, such as a master’s or Ph.D. This is especially important if you aim to work in academia, research, or high-level consulting positions.
A master’s degree in economics will provide you with a deeper understanding of economic theory, econometrics, and applied economics.
You will also have the opportunity to specialize in a specific area of economics, such as labor economics, international economics, or environmental economics.
On the other hand, a Ph.D. in economics is more research-intensive and is typically required for positions in academia.
During a Ph.D. program, you will contribute original research to the field of economics and will become an expert in your chosen area of specialization.
Whether you choose a master’s or a Ph.D., advanced education will equip you with the technical skills and knowledge necessary to tackle complex economic issues and contribute to economic policy discussions.
It is worth noting that some positions in governmental agencies and international organizations might also prefer candidates with a Ph.D. in economics.
Remember that choosing to pursue advanced education is a major commitment, both in terms of time and resources.
You should carefully consider your long-term career goals and consult with professionals in the field before making a decision.
Step 7: Specialize in a Specific Area of Economics
As an economist, you have a multitude of specialized fields to choose from.
You may decide to focus on an area like macroeconomics, where you study the behavior of an economy as a whole, or microeconomics, examining individual market dynamics.
Other potential specializations include labor economics, international economics, development economics, public economics, financial economics, and many more.
When you choose a specialization, you have the opportunity to become an expert in that field.
This expertise can make you more competitive in the job market, especially if you’re aiming for positions in research or academia.
Your specialization should align with your career goals and personal interests.
For instance, if you wish to work in policy-making, you may want to specialize in public economics.
Or, if you have a keen interest in the financial industry, financial economics could be your area of focus.
In graduate school, your coursework and dissertation will typically focus on your chosen field.
You may also choose to join professional organizations related to your specialization.
These groups can help you network with other professionals in your field, stay updated on the latest research and trends, and find job opportunities.
Remember, specializing doesn’t mean you’re limited to a single area.
Economists need a broad understanding of various fields as they often interrelate.
You can always branch out or change your focus as your career progresses.
Step 8: Publish Research in Academic Journals
Publishing research in academic journals is a crucial step in pursuing a career as an economist.
This step is significant as it not only adds credibility to your skills and knowledge but also helps build a professional reputation in your field of expertise.
Publishing your research can open doors to higher job positions and various academic opportunities.
When you have conducted significant research, consider submitting your findings to academic journals in economics or related fields.
These journals are often peer-reviewed, meaning experts in your field will review your work for its quality, accuracy, and contribution to the field.
However, getting published can be a competitive process.
Therefore, your research needs to be of high quality and originality.
It should contribute new knowledge or a unique perspective to existing literature on your chosen topic.
You can also consider presenting your research at economic conferences before submitting it for publication.
This can provide useful feedback and may increase your chances of getting published.
Additionally, networking at these conferences can lead to collaborations with other economists and can significantly boost your career.
Remember, publishing research can be a long and arduous process.
It may require revisions and may take several months or even years.
Yet, the benefits it brings to your professional growth as an economist are invaluable.
Step 9: Gain Professional Certification (Optional)
While not mandatory, earning a professional certification as an economist can help further establish your expertise and open up more opportunities for career advancement.
Various institutions offer certifications that can bolster your credentials.
For example, the National Association for Business Economics (NABE) offers the Certified Business Economist (CBE) designation.
The CBE is a comprehensive program that validates and enhances your skills in applied economics and data analytics.
To earn this certification, you’ll need to complete a series of exams and courses which cover various areas of economics including macroeconomic and microeconomic analysis, applied econometrics, and more.
This certification can increase your visibility and credibility as an economist, making you stand out in the job market.
It also provides an opportunity to expand your network within the economics community.
However, keep in mind that this is an optional step and not a requirement to be an economist.
Many successful economists do not have this certification but it could prove beneficial depending on your career goals and aspirations.
Step 10: Build a Professional Network
Building a strong professional network is a significant step in pursuing a career as an economist.
Networking helps you to connect with industry professionals, gain insights, and find opportunities that you may not come across otherwise.
Start by connecting with your peers, professors, and alumni from your university.
Attend economic conferences, workshops, and seminars to meet industry leaders and fellow economists.
Participate actively in these events to get noticed and make meaningful connections.
Join professional organizations or associations for economists, such as the American Economic Association or the National Association for Business Economics.
These groups often host networking events and provide resources for professional development.
Also, consider internships and cooperative education programs where you can gain practical experience and meet professionals in your desired field.
Don’t forget to leverage online platforms such as LinkedIn. Follow key players in the field of economics, participate in relevant groups, and engage in discussions to establish your online presence.
Remember, networking is not a one-time task, but an ongoing process.
Maintain the relationships you establish, provide value to your contacts where possible, and don’t be afraid to reach out when you need advice or assistance.
A solid network can provide guidance, mentorship, and job opportunities as you progress in your career as an economist.
Step 11: Apply for Economist Positions in Various Sectors
After completing your education and gaining relevant skills and experience, you should start applying for economist positions in various sectors.
Economists are needed in several industries, including government agencies, consulting firms, think tanks, non-profit organizations, and financial institutions.
You can also consider roles in academia, international organizations, or public policy.
When applying for positions, it’s important to tailor your resume and cover letter to match the job description.
Highlight your knowledge, skills, and experiences that are most relevant to the role.
If you have specialized in a specific area of economics, such as labor economics, health economics, or international economics, look for positions that align with your specialty.
Networking can also be a powerful tool in your job search.
Attend industry events, seminars, and conferences, and make connections with professionals in your field.
These contacts can provide advice, information about job openings, and potential references.
Remember, persistence is key.
Don’t be discouraged by rejections, instead, use them as learning experiences to improve your application materials and interview skills.
Continue to stay updated on economic trends and developments, as this knowledge could set you apart from other candidates.
Step 12: Stay Informed on Current Economic Issues and Trends
Being a successful economist involves more than just having the right educational qualifications and skills.
It’s crucial to be updated with the latest economic issues, trends, and news both at the local and global level.
This can include information about market trends, government policies, international trade, and economic theories.
To stay informed, regularly read economic publications and journals.
This could include The Economist, Financial Times, or Journal of Economic Perspectives.
Additionally, attending economic conferences and seminars can provide you with up-to-date information and an opportunity to network with other professionals.
You should also consider joining professional economist associations and societies.
These often provide their members with resources such as newsletters, webinars, and workshops that can help you stay current in your field.
Keeping abreast of current economic issues and trends helps you make informed decisions, provide accurate forecasts, and offer strategic advice.
It also makes you a more attractive candidate to potential employers, who value economists that are knowledgeable about the latest happenings in the economy.
Step 13: Continue Professional Development and Lifelong Learning
Even after obtaining a job in the field of economics, it’s important to continue learning and developing your skills.
The world of economics is always evolving, and successful economists stay current with the latest research, theories, and methodologies.
Attend industry conferences, workshops, and seminars.
These events can provide valuable networking opportunities and expose you to new ideas and trends in the field.
Consider joining a professional organization, such as the American Economic Association, which offers resources and opportunities for ongoing learning.
You can also subscribe to economics journals and publications to stay up-to-date with the latest research.
Continuing education can also be an important aspect of professional development.
This could involve taking advanced courses or earning a higher degree, such as a PhD in economics.
You may also consider obtaining a certification from an organization like the National Association for Business Economics.
Remember, the field of economics is vast and varied.
Economists can specialize in numerous areas such as macroeconomics, microeconomics, financial economics, international economics, etc.
Therefore, continuous learning and expanding your knowledge in your area of specialization or exploring new areas can help you advance in your career.
Lastly, don’t forget the importance of soft skills in your professional development.
Skills like communication, problem-solving, and critical thinking are key for economists.
Participating in workshops or training programs can help you enhance these skills.
Economist Roles and Responsibilities
Economists apply the principles of economics to understand how societies and individuals allocate their resources.
They collect and analyze data to predict market trends, formulate economic policies, and propose solutions to economic problems.
They have the following roles and responsibilities:
Economic Research and Analysis
- Conduct research on economic issues and disseminate research findings through technical reports and scientific articles.
- Collect and process economic and statistical data using specialized software.
- Analyze data to identify trends, economic relationships, and evaluate economic issues.
Economic Forecasting and Modeling
- Develop economic models to predict and explain economic behavior.
- Forecast market trends and patterns using economic theories and models.
Policy Development
- Advise governments, businesses, and individuals on economic topics.
- Formulate recommendations for policy actions based on economic research.
- Analyze the effects of policies, regulations, and public programs on economic activity.
Teaching
- Teach economic concepts to students and/or colleagues.
- Present research findings at conferences, workshops, or lectures.
Consulting
- Provide advice on economic relations to businesses, public and private agencies, and other employers.
- Examine the socioeconomic impacts of new public policies, such as proposed legislation, taxes, services, and regulations.
Communication
- Explain complex economic concepts in a clear and concise manner to diverse audiences.
- Present economic and statistical concepts and findings to others in a manner they can understand.
Report Writing
- Write various types of reports, like briefing notes, analytical reports, and policy papers.
- Translate complex data and economic models into understandable tables, graphs, and written reports.
Continuous Learning
- Stay updated with the latest economic developments, data software, and statistical techniques.
- Attend conferences, seminars, and workshops to expand knowledge and network with other professionals.
What Does an Economist Do?
Economists typically work for government agencies, research institutions, consulting firms, and corporations across a variety of industries.
They study the production and distribution of resources, goods, and services by collecting and analyzing data, researching trends, and evaluating economic issues.
They use mathematical models and statistics to study, analyze and interpret economic data and trends.
Economists often specialize in a particular area such as labor, industrial organization, macroeconomics, microeconomics, or public finance.
They may also focus on particular regions or countries.
An economist’s job includes making predictions about economic situations, advising businesses and government organizations on economic policies, and suggesting solutions to economic problems.
They also write reports and articles for academic journals and other media to explain their research and findings.
In addition, economists may be asked to present their findings to a variety of audiences, such as policymakers, business leaders, and the public.
Economists use their knowledge of economic relationships to test the effectiveness of economic policies and measures.
Their work can impact everything from public spending and taxes to business investment and job creation.
Essential Economist Skills
- Quantitative Analysis: Economists work with a great deal of data, and they must be able to interpret and analyze this data using mathematical models and statistical techniques. Knowledge of tools such as Excel, Stata, or R for data analysis is often required.
- Communication: Economists must convey complex concepts in a way that those without an economic background can understand. This requires excellent written and oral communication skills.
- Economic Theory: A deep understanding of macroeconomic and microeconomic theories is crucial. Economists apply these theories to predict market trends and advise on economic policy.
- Problem-solving: Economists are often tasked with solving complex economic issues. This requires a strong ability to think critically and develop practical solutions.
- Research: Economists need to research and evaluate economic issues and trends. They must be able to design surveys, collect data, and analyze results to understand economic phenomena.
- Forecasting: Economists are often asked to predict future economic trends. This involves analyzing current data and modeling future outcomes.
- Econometrics: This is the application of mathematical and statistical methods to economic data. It is an essential skill as it enables economists to test theories and predict future trends.
- Policy Knowledge: Economists need a solid understanding of government policies and their economic effects. This knowledge helps in advising on policy changes and understanding their potential impacts.
- Report Writing: Economists often present their findings in detailed reports. Being able to write clearly and concisely is a must.
- Presentation Skills: In addition to written communication, economists must have strong presentation skills. They often need to explain their findings to a non-specialist audience.
- Attention to Detail: Economists work with a lot of data and small details can make a big difference. Attention to detail is crucial to ensure accuracy in data analysis and interpretation.
- Project Management: Economists often lead research projects, requiring good organizational skills, time management, and the ability to work under pressure.
- Teamwork: Economists often work as part of a team, which requires good interpersonal skills and the ability to work collaboratively.
- IT Skills: Economists often use specialized software for data analysis and econometric modeling. Proficiency in these tools is often required.
- Continual Learning: The field of economics is always evolving. Economists need to stay updated with the latest economic theories, research methodologies, and policy changes.
Economist Career Path Progression
The Foundation: Junior Economist
Your journey typically begins as a Junior Economist.
At this stage, you are absorbing knowledge and gaining practical experience.
Your responsibilities may include conducting economic research, data collection, and analysis.
Here are some tips for success in this role:
- Constant Learning: Stay updated with the latest economic theories and models.
- Seek Guidance: Don’t hesitate to ask questions and seek guidance from senior economists.
- Active Contribution: Show enthusiasm and take ownership of your assigned tasks.
The Ascent: Economist
As you gain experience, you’ll transition into the role of an Economist.
You’ll handle more complex economic data, participate in policy-making discussions, and become an integral part of the research team.
Here’s how to thrive at this stage:
- Research Skills: Refine your research skills to understand economic trends and scenarios.
- Collaboration: Embrace teamwork and communicate effectively with your peers and other stakeholders.
- Data Analysis: Focus on advanced data analysis to provide accurate economic forecasts.
Reaching New Heights: Senior Economist
The next step is the Senior Economist position.
At this stage, you’re recognized for your expertise and leadership within the team.
You may take on mentoring roles, guide policy decisions, and drive research projects to success.
To excel as a Senior Economist:
- Mentorship: Share your knowledge and help junior economists grow.
- Strategic Thinking: Think beyond data and consider macro-level economic factors.
- Leadership: Lead by example and inspire others with your work ethic and analytical abilities.
Beyond the Horizon: Lead Economist and Beyond
As your career progresses, you may choose to specialize in a particular area, such as becoming a Lead Economist, Research Director, or even a Chief Economist.
Each of these roles involves greater responsibilities, leadership, and strategic decision-making.
Here’s what to focus on:
- Economic Leadership: Drive economic initiatives and shape the economic direction of your projects and organizations.
- Management Skills: If you transition into management, develop strong leadership and communication skills to guide your team effectively.
- Innovation: Continue to innovate and stay at the forefront of economic trends and theories.
Pinnacle of Success: Chief Economist or VP of Economic Research
You may reach roles like Chief Economist or VP of Economic Research at the highest levels of the economist career ladder.
Here, you’ll be responsible for shaping the overall economic strategy of the organization, making critical decisions, and managing larger teams.
Economist Salary
Entry-Level Economist
- Median Salary: $55,000 – $75,000 per year
- Entry-level economists typically have 0-2 years of experience and may hold a bachelor’s or master’s degrees in economics or related fields. They often assist in data collection and analysis.
Mid-Level Economist
- Median Salary: $75,000 – $110,000 per year
- Mid-level economists have 2-5 years of experience and often take on more complex roles such as policy analysis, financial forecasting, and market research.
Senior Economist
- Median Salary: $110,000 – $155,000 per year
- Senior economists possess 5+ years of experience and are typically responsible for leading research projects, forming economic strategies, and providing expert insights on economic trends and policies.
Lead Economist / Economics Manager
- Median Salary: $130,000 – $190,000+ per year
- These roles require significant experience and often involve leading teams of economists, directing research, and making strategic economic decisions.
Chief Economist / Director of Economics
- Median Salary: $170,000 – $250,000+ per year
- These high-level positions require extensive experience and deep economic expertise, often involving setting economic strategies for a company or institution, influencing policy-making, and providing thought leadership on economic issues.
Economist Work Environment
Economists typically work in an office environment, but they also spend time conducting field research and analyzing data.
They are commonly employed by the government, research firms, consulting businesses, and international organizations.
Economists often work full time during regular business hours, but many also work overtime to meet deadlines.
This role usually involves substantial desk work, including reading and interpreting statistical data.
Some economists may travel as part of their job to present their research findings, attend conferences, or advise clients and businesses.
After gaining significant experience, an economist might choose to become a consultant, offering their expertise to businesses, or to work independently as a researcher or author.
FAQs About Becoming an Economist
What is needed to become an economist?
To become an economist, you typically need a strong foundation in economics, mathematics, and statistics.
This is often achieved through formal education, such as a bachelor’s degree in economics or a related field, followed by a master’s degree or Ph.D. for most high-level positions.
Key skills include proficiency in statistical analysis software (such as Stata or R), understanding of economic models and theories, knowledge of current economic issues and policy debates, and strong writing and presentation abilities.
Soft skills like critical thinking, problem-solving, and attention to detail are also important in this field.
How long does it take to become an economist?
The time it takes to become an economist can vary depending on your educational path.
If you pursue a traditional bachelor’s degree in economics, it typically takes four years.
A master’s degree usually requires an additional two years, and a Ph.D. can take four to six years beyond the bachelor’s degree.
However, some positions, especially in government or business, may be accessible with a bachelor’s or master’s degree alone.
Gaining practical experience through internships or research assistantships can also help you become job-ready.
Can I be an economist without a degree?
Most economist jobs require at least a bachelor’s degree in economics or a related field.
Higher-level positions often require a master’s degree or Ph.D. However, you may be able to work in related fields, such as economic analysis or policy advising, with a combination of experience and education in related disciplines.
It’s important to note that economists need a solid understanding of complex economic theories and models, which typically requires formal education.
Is being an economist a stressful job?
Being an economist can be stressful at times, as it involves complex data analysis, tight deadlines, and the pressure of making accurate forecasts.
Economists also need to stay current with global economic trends and events, which can change rapidly.
However, many economists find the work intellectually stimulating and impactful, which can offset the stress.
Work-life balance can depend on the specific role and employer, with some economists working in academia having more flexibility than those in high-pressure financial or consulting roles.
What are the prospects for economists in the next decade?
The prospects for economists are generally positive in the next decade.
While technology is automating some tasks, the need for skilled economists to analyze complex economic issues and trends, inform policy decisions, and provide strategic advice to businesses is expected to continue.
Emerging fields like environmental economics, health economics, and data analysis offer exciting growth opportunities.
Conclusion
There you have it.
Embarking on the journey to become an economist is a substantial endeavor, but it is decidedly fulfilling.
With the appropriate skills, education, and perseverance, you’re on the right track to making a crucial impact in the field of economics.
Remember, the road may be arduous, but the prospects are boundless. Your analysis and insights could lead to the next groundbreaking policy or economic theory that reshapes our society and economy.
So, take that first step. Immerse yourself in economic studies. Connect with professionals in the field. And most importantly, never stop analyzing and questioning.
Because the world is waiting for the economic insights you can provide.
And if you’re seeking personalized guidance on initiating or progressing your career in economics, check out our AI Career Path Advisor.
This free tool is designed to offer bespoke advice and resources to help you navigate your career path effectively.
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