How To Become an Economist: Salary & Career Paths for 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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Choosing a career as an economist can be both exciting and challenging. With economies constantly evolving, businesses, governments, and organizations need experts who can analyze data, forecast trends, and provide valuable insights. However, many aspiring economists struggle to understand the right educational path, job opportunities, and earning potential in this field.

This guide will provide a clear roadmap on how to become an economist, covering everything from degree requirements and essential skills to career paths and salary expectations. Whether you are a student exploring your options or a professional considering a career shift, this article will help you make informed decisions. By breaking down the education process, job market trends, and industry insights, this guide will equip you with the knowledge needed to succeed in the field of economics.

Key things you should know about becoming an economist:

• Becoming an economist typically requires a bachelor’s degree in economics, with many professionals opting for a master’s or Ph.D. for advanced roles.
• Economists can specialize in various fields, such as finance, policy analysis, or data science, depending on their interests and career goals.
• The average salary for an economist in the United States is $115,730, with potential for higher earnings in specialized industries like finance and data science.

Table of Contents:

1. What does an economist do on a daily basis?
2. What industries do economists work in?
3. What are the main types of economists?
4. How much can you earn as an economist in 2025?
5. What degree do you need to become an economist?
6. How long does it take to become an economist?
7. How can an MBA enhance an economist's career?
8. How is digital transformation impacting economists’ career opportunities?
9. Can pursuing interdisciplinary advanced degrees enhance an economist's career?
10. What are the best certifications for economists?
11. What are the different career paths for economists?
12. What is the job growth outlook for economists?
13. What is the difference between an economist and a financial analyst?
14. Other things you should know about becoming an economist

What does an economist do on a daily basis?

Economists play a crucial role in shaping decisions that impact businesses, governments, and even individuals. Their work involves much more than just crunching numbers—they analyze economic trends, forecast future developments, and provide strategic recommendations. Here are the key responsibilities of an economist:

• Analyzing Economic Data: Economists spend much of their day analyzing various forms of economic data, such as GDP growth, unemployment rates, inflation trends, and market conditions. They use statistical software to interpret data and identify patterns that can provide insights into the current state of the economy. These are also tasks or jobs for business analytics.
• Conducting Research: Economists regularly conduct research to answer specific questions or explore new areas of economic theory. This research might involve reviewing academic literature, running experiments, or gathering primary data through surveys and interviews to better understand economic phenomena.
• Writing Reports and Presenting Findings: After analyzing data and conducting research, economists write reports to communicate their findings and recommendations to clients, government agencies, or business leaders. For those looking to enhance their communication and financial reporting skills, taking a bookkeeping course can be a helpful complement, enabling economists to better understand financial statements and provide more comprehensive analyses.
• Developing Economic Models: Economists create and refine models to predict future economic trends and assess the impact of potential policies. These models are used to forecast outcomes, such as the effects of a tax change or the economic impact of a new government program.
• Advising Stakeholders: Economists provide advice and guidance to stakeholders, such as policymakers, executives, or investors, to help them make informed decisions. This may involve recommending specific economic strategies, interpreting economic indicators, or advising on the potential outcomes of proposed policies. As such, it is not surprising that professionals with an economist background make effective investment managers. Check out how to become an investment manager in a separate article.

What industries do economists work in?

Economists work in a variety of industries, analyzing data, conducting research, and influencing decision-making. Here are some of the key industries where economists are employed, along with their average salaries:

• Scientific Research and Development Services – Economists in this industry conduct advanced research on economic trends, policy impact, and market behavior. They often work for think tanks, research institutions, and private firms. The average salary in this sector is $140,940.
• Federal Government (excluding postal service) – Many economists work for government agencies such as the Federal Reserve, the U.S. Department of Labor, and the Bureau of Economic Analysis. They help shape public policy, analyze economic data, and develop forecasts. The average salary for federal government economists is $135,200.
• Management, Scientific, and Technical Consulting Services – Economists in this field provide expert advice to businesses and organizations on economic strategy, market trends, and financial planning. The average salary for economists in consulting services is $110,120.
• Local Government (excluding education and hospitals) – Local governments employ economists to assist with budget planning, economic development initiatives, and policy evaluation. The average salary in this sector is $91,980.
• State Government (excluding education and hospitals) – Economists working for state governments contribute to policy research, revenue forecasting, and economic development programs. The average salary for economists in state government roles is $74,900.

These industries offer diverse career opportunities, allowing economists to apply their skills in both public and private sectors. The expertise of professional economists are crucial in shaping policies, guiding businesses, and analyzing economic trends. The table below provides a clear comparison of the average salaries for economists in different sectors, helping you understand which industries offer the most lucrative opportunities:

What are the main types of economists?

Economists can specialize in a variety of areas depending on their interests and the industries they work in. Here are some of the main types of economists:

• Microeconomists: These economists focus on individual economic units such as households, firms, and industries. They study how these entities make decisions regarding resource allocation, production, and consumption, analyzing factors like supply and demand, pricing, and market behavior.
• Macroeconomists: Macroeconomists study the economy as a whole, examining aggregate economic indicators like Gross Domestic Product (GDP), inflation, unemployment, and national economic growth. They analyze the broader economic trends that affect entire countries or regions, often advising on fiscal and monetary policy.
• Labor Economists: Labor economists focus on the workforce, analyzing factors such as wages, employment, job market trends, and labor policies. They study how labor markets operate and the relationship between labor and economic growth, often advising on minimum wage laws and employment regulations.
• Environmental Economists: These economists study the economic impact of environmental policies, resource management, and climate change. They assess how economic activities affect the environment and explore solutions like carbon pricing, pollution control, and sustainable resource use.
• Financial Economists: Financial economists specialize in the study of financial markets, institutions, and investments. They analyze economic factors that influence market behavior, interest rates, stock prices, and risk management, often working in banking, investment firms, or financial consulting.
• Development Economists: Development economists focus on improving the economic conditions of developing countries. They study poverty, inequality, economic growth, and the impact of international aid, working to develop strategies for fostering sustainable economic development in low-income regions.
• Public Policy Economists: These economists work closely with governments and organizations to analyze and advise on policies related to taxation, healthcare, education, and social welfare. They study the economic effects of public policies and recommend changes to promote economic stability and social welfare. For those interested in the intersection of economics and social services, pursuing one of the most affordable online counseling degrees can provide valuable insights into the human impact of economic policies.

How much can you earn as an economist in 2025?

Economists earn a competitive salary, with the average annual wage being $115,730. However, actual earnings can vary significantly based on several factors, including industry, experience, education level, and geographic location. Additionally, professionals with advanced degrees, such as a Ph.D. in economics, generally command higher salaries and have access to more specialized roles.

Experience is another key determinant of salary. Entry-level economists may start with lower salaries, but as they gain expertise and move into senior roles or leadership positions, their earnings can increase significantly. Location also plays a major role, as economists working in metropolitan areas or financial hubs like Washington, D.C., New York, or San Francisco often earn more due to the higher cost of living and demand for economic expertise. Furthermore, those with additional skills in data analysis, programming (such as Python or R), or financial modeling may receive higher compensation, as these technical abilities are increasingly valuable in today’s data-driven economy.

What degree do you need to become an economist?

Here are the typical degree requirements for becoming an economist:

• Bachelor’s Degree in Economics: A bachelor's degree is the minimum requirement to enter the field of economics. This degree provides foundational knowledge in economic theory, statistics, and data analysis, which are essential for understanding economic trends and conducting research.
• Master’s Degree in Economics: While a bachelor’s degree can open doors to entry-level positions, a master's degree is often necessary for more advanced roles. A master's degree provides deeper expertise in areas such as econometrics, economic modeling, and quantitative analysis, preparing individuals for specialized careers in both the public and private sectors. Similarly, an online master's in communications can be a valuable complement for economists seeking to enhance their ability to communicate complex economic concepts effectively
• Ph.D. in Economics: For those interested in academic careers, high-level research positions, or roles in international organizations and think tanks, a Ph.D. in economics is often required. A Ph.D. involves several years of advanced study and research, allowing economists to specialize in specific areas like labor economics, environmental economics, or financial economics.

How long does it take to become an economist?

Becoming an economist typically requires at least a bachelor’s degree in economics, which takes around four years to complete. This undergraduate degree provides foundational knowledge in economic theory, statistics, and data analysis. Many entry-level jobs in government agencies, businesses, and research firms are available to those with a bachelor’s degree, though these roles are often more limited in scope and responsibility. Graduates at this level may work as research assistants, analysts, or junior economists, gaining valuable experience in the field.

To advance in their careers, many economists choose to pursue a master’s degree in economics, which typically takes an additional one to two years. A master’s degree opens up more opportunities in specialized fields such as economic policy, financial economics, and data analytics. Some professionals go even further by obtaining a Ph.D. in economics, which can take four to six years and is often required for academic and high-level research positions.

How can an MBA enhance an economist's career?

Economists who complement their analytical expertise with advanced business acumen often stand out in competitive markets. An MBA offers strategic managerial insights that extend beyond traditional economic theory by integrating core business functions like finance, operations, and leadership. This combination empowers economists to implement data-driven decisions at a corporate level and to navigate complex market dynamics more effectively. For professionals seeking to broaden their scope and increase career versatility, investigating affordable online MBA programs can provide a flexible, cost-effective avenue for acquiring these essential business skills.

How is digital transformation impacting economists’ career opportunities?

Advances in digital technologies are reshaping the way economic analysis is conducted and expanding the scope of opportunities for professionals. Economists who acquire proficiency in data visualization, machine learning, and statistical programming are better positioned to leverage real-time data for more precise forecasting and policy recommendations. Furthermore, expertise in emerging digital tools enhances analytical capabilities and supports innovation in sectors such as healthcare, finance, and technology. For those seeking to integrate traditional economic theory with cutting-edge digital skills, exploring programs like the best affordable online MBA in healthcare management can provide a competitive advantage in today’s evolving marketplace.

Can pursuing interdisciplinary advanced degrees enhance an economist's career?

Economists may expand their expertise by pursuing complementary advanced degrees that merge rigorous economic analysis with specialized industry knowledge. For example, deepening insight into the healthcare sector through interdisciplinary studies can offer a competitive advantage in areas like health economics, policy formulation, and market strategy. Such credentials provide a broader perspective that enriches traditional economic methodologies and improves decision-making in complex, regulated environments. Academics and professionals interested in integrating sector-specific expertise into their economic toolkit might consider programs like the online doctor of pharmacy degree to diversify their skill set and enhance career flexibility.

What are the best certifications for economists?

While a degree in economics is typically the foundational requirement, certain certifications can help economists enhance their skills, increase their employability, and demonstrate expertise in specific areas of the field. Here are some of the best certifications for economists:

• Certified Business Economist (CBE): Offered by the National Association for Business Economics (NABE), the CBE certification is designed for professionals who want to validate their expertise in applying economic principles to business decision-making. It covers areas like forecasting, economic analysis, and economic modeling, making it ideal for those working in the business or financial sectors.
• Chartered Financial Analyst (CFA): This certification, offered by the CFA Institute, is highly regarded in the finance industry. It’s suitable for economists working in financial analysis, investment banking, or portfolio management. The CFA program covers areas such as financial analysis, asset management, economics, and corporate finance.
• Certified Economic Development (CEcD): Offered by the International Economic Development Council (IEDC), this certification is ideal for economists interested in community and regional economic development. The CEcD focuses on economic development strategy, business retention, site selection, and economic policy.
• Certified Analytics Professional (CAP): For economists interested in data science and analytics, the CAP certification from the INFORMS organization helps demonstrate proficiency in analytics and data-driven decision-making. It’s particularly useful for economists who work with large datasets, statistical analysis, and predictive modeling.
• Financial Risk Manager (FRM): The Global Association of Risk Professionals (GARP) offers the FRM certification, which is geared toward economists interested in financial risk management. This certification is highly regarded in sectors like banking and investment, focusing on risk analysis, quantitative analysis, and portfolio management.

These certifications are also very helpful to business analysts and business intelligence developers. A BI developer transforms raw data into insights that help businesses make informed decisions. Using technical tools and analytical thinking, they work at the intersection of data and business to solve real-world problems. Know more about business intelligence developer salary, qualifications, and responsibilities.

What are the different career paths for economists?

Economists have a variety of career paths available, depending on their skills and interests. For those looking to quickly advance their careers, 1-year master's programs in economics or related fields can provide the specialized knowledge and skills needed to excel in these sectors without a lengthy commitment. Below are some of the most common careers for economists, along with their average salaries:

• Economist – Economists analyze data, research economic trends, and provide insights that help businesses, governments, and organizations make informed decisions. They work in a wide range of industries, including finance, policy, and academia. Average salary: $115,730.
• Actuary – Actuaries use mathematical models and statistical techniques to assess financial risks, particularly in the insurance and pension industries. They help companies develop policies and strategies to minimize financial losses. Average salary: $125,300.
• Budget Analyst – Budget analysts assist organizations and government agencies in managing their finances by evaluating budget proposals and monitoring spending. They ensure financial resources are allocated efficiently and align with long-term goals. Average salary: $86,200.
• Data Scientist – Data scientists use programming, statistical analysis, and machine learning to analyze large datasets and extract meaningful insights. Many economists transition into this field, as it requires strong analytical skills and an understanding of market behavior. For those interested in blending economics with a focus on social impact, pursuing a human services degree online can also open opportunities to apply data science techniques in sectors like public health, education, or social work Average salary: $126,830.
• Financial Analyst – Financial analysts evaluate investment opportunities by studying financial statements, market conditions, and economic trends. They provide recommendations to businesses, banks, and individual investors to help them make informed financial decisions. Average salary: $99,610.
• Market Research Analyst – Market research analysts study consumer behavior, market trends, and economic conditions to help businesses understand demand and develop pricing strategies. They use surveys, data analysis, and statistical models to provide insights that drive marketing and sales strategies. Average salary: $68,230.

Economists have a wide range of career opportunities across different industries, from finance and government to data science and market research. Depending on their interests and skill sets, they can specialize in risk assessment, financial planning, budget management, or economic forecasting. As such, they would make great managers and executives, such as CFO. Learn more about CFO salary in another article.

The table below provides a clear comparison of the average salaries for different career paths related to economics:

What is the job growth outlook for economists?

The job growth outlook for economists is positive but moderate. In 2023, there were approximately 17,500 economists employed in the United States, and this number is projected to grow to 18,400 by 2033, representing a 5% increase over the decade. This growth rate is on par with the average for all occupations, driven by the increasing demand for data analysis, economic forecasting, and policy evaluation in both the public and private sectors. As businesses and governments continue to rely on economic insights to make informed decisions, the need for skilled economists will remain steady.

However, job prospects can vary based on industry and specialization. Economists with strong quantitative skills, experience in data science, and expertise in sectors like finance, healthcare, and technology will have the best opportunities for employment. Additionally, the rise of big data and machine learning has increased the demand for professionals who can integrate economic modeling with advanced analytics.

What is the difference between an economist and a financial analyst?

The roles of an economist and a financial analyst both involve analyzing data to make informed decisions, but they differ significantly in their focus, responsibilities, and areas of expertise. Here's a breakdown of the key differences:

• Focus and Scope: Economists focus on analyzing broader economic trends and policies. They study issues such as inflation, unemployment, national GDP, and international trade to understand how these factors impact economies at large. On the other hand, financial analysts focus primarily on financial data, evaluating investments, assets, and financial performance of companies or markets. While economists may work alongside professionals in other fields, including a licensed clinical social worker when assessing the socioeconomic impacts of public health policies, their core expertise lies in understanding and interpreting large-scale economic factors.
• Areas of Expertise: Economists typically have expertise in economic theory, macroeconomics, microeconomics, econometrics, and statistical analysis. Financial analysts specialize in financial markets, accounting, corporate finance, and investment strategies. They are skilled in interpreting financial data, valuing companies or assets, and advising on investment opportunities, risk management, and portfolio strategies.
• Primary Responsibilities: Economists conduct research, develop economic models, and analyze data to advise governments, businesses, or think tanks. They might focus on topics like fiscal policy, inflation, or income inequality. Meanwhile, financial analysts focus on evaluating financial health, stock performance, and investment potential. They often work for investment firms, banks, or corporations, advising clients or companies

Here’s what graduates have to say about their economics degrees

Being an economist has allowed me to analyze global trends and contribute to policies that improve people's lives. The intellectual challenge and sense of purpose in making data-driven decisions has been incredibly fulfilling. I never imagined how deeply impactful my work could be on a national scale. — Jett

I chose economics because it offers the perfect balance of theory and real-world application. The career has given me opportunities to collaborate with experts from all fields, constantly expanding my knowledge while helping businesses make smarter, data-backed decisions. It's rewarding to see the direct results of my work shaping the future. — David

Working as an economist has given me the freedom to explore complex problems and find innovative solutions. I’ve been able to travel, network with global leaders, and work on projects that truly matter. There’s a unique satisfaction in knowing that the work you do influences critical economic strategies. — Esther

Key Findings

• To become an economist, a bachelor's degree in economics is required, with many pursuing a master’s or Ph.D. for advanced roles.
• The average salary for an economist in the U.S. is $115,730 annually.
• It typically takes 4 years to complete a bachelor’s degree, and an additional 1-2 years for a master’s degree or 4-6 years for a Ph.D.
• The job growth for economists is projected to be 5% from 2023 to 2033, in line with the average growth rate for all occupations.
• Economists can work in a wide range of industries, including government, finance, academia, and consulting, with varied salary ranges depending on the sector.

Other things you should know about becoming an economist

Are there professional organizations for economists?

Yes, there are several professional organizations for economists that offer valuable networking opportunities, resources, and support for career development. Some prominent ones include the American Economic Association (AEA), the National Association for Business Economics (NABE), and the European Economic Association (EEA). These organizations provide access to conferences, journals, workshops, and educational events that help economists stay updated on the latest trends, research, and policy developments in the field. Being a member of such organizations can enhance one's career prospects and professional credibility.

Can a CFA or CPA help an economics career?

While a CFA (Chartered Financial Analyst) or CPA (Certified Public Accountant) is not required to become an economist, both certifications can significantly enhance an economist’s career, particularly for those working in finance or accounting-related roles. A CFA is valuable for economists pursuing careers in investment analysis, portfolio management, or corporate finance, as it provides in-depth financial knowledge. On the other hand, a CPA can be beneficial for economists in positions involving financial reporting, auditing, or tax policy, as it demonstrates expertise in accounting principles and practices. Both certifications show a high level of professionalism and commitment, which can open doors to higher-level opportunities.

How do you land an entry-level job as an economist?

Landing an entry-level job as an economist typically requires a strong academic background in economics, often at the master’s or bachelor’s level, along with relevant internships or research experience. Employers look for candidates with solid analytical skills, proficiency in statistical software (such as Excel, SAS, or Stata), and the ability to communicate complex data clearly. Networking through professional organizations, attending industry events, and leveraging alumni connections can also be important strategies. Additionally, applying for research assistant roles or internships in government agencies, think tanks, or private firms can be an effective way to gain practical experience and build a professional portfolio.

Can an economist work as a policy analyst?

Yes, an economist can certainly work as a policy analyst. In fact, economists are highly sought after in policy analysis because their expertise in data interpretation, economic modeling, and understanding market trends provides a solid foundation for evaluating the impacts of various policies. Policy analysts often work in government agencies, research organizations, or think tanks, where they use economic theory and empirical data to inform decision-making. They may analyze issues related to fiscal policy, healthcare, labor markets, or environmental regulations, among others, making economics a perfect discipline for such roles.

References:

• Glassdoor Editorial Team. (n.d.). How to become an economist – Career guide. Glassdoor. https://www.glassdoor.com/Career/how-to-become-economist_KO14%2C23.htm
• Indeed Editorial Team. (2025). How To Become an Economist in 5 Steps (And What They Do). https://www.indeed.com
• U.S. Bureau of Labor Statistics. (2024). OOH: Economists. https://www.bls.gov