What is an Economist? Where They Work and What They Do

From local community development offices and financial firms to the Federal Reserve, a wide variety of institutions rely on economists to help make data-driven decisions.

An economist is someone who studies the reasoning behind decisions people make and is interested in using data to boost profits, create better public policy or conduct research.

If becoming an economist interests you, exploring the career, the role it plays in a variety of organizations as well as its growth potential can help you gain more insight into the path.

What Does an Economist Do?

While an economist's job description can vary depending on where you work, according to the U.S. Bureau of Labor Statistics (BLS), economists are often responsible for:

• Researching economic issues
• Interpreting and forecasting market trends
• Collecting and analyzing data
• Presenting research results
• Interpreting and forecasting market trends
• Advising businesses, governments and individuals on economic topics

At its core, the job of an economist is the study of decision-making, according to Sutton Puglia, a regulatory economist and Southern New Hampshire University (SNHU) adjunct faculty member.

“It all comes back to decision-making,” she said. “Economists want to understand why things are happening and why people are making the decisions they do.”

And as an economist, you could really study anything from the cost of products or services to employment levels, business cycles, taxes and inflation, according to BLS.

Where Can an Economist Work?

Whether a small town is trying to attract new businesses or the federal government is working to find solutions to unemployment, economists can help analyze data and make more strategic decisions.

“In pretty much every field, there is going to be a place for economists,” Puglia said.

The government is the largest employer of economists, according to BLS, accounting for a sum total of 44% of employed economists in 2022:

• Federal government - 27%
• State government - 10%
• Local government - 7%

Whether you're in the local, state or federal government, you could work to inform public policy, analyzing how new legislation could impact employment rates, consumer spending and other economic drivers.

Aside from a few years spent in the private sector, Puglia has built her economics career within the government — first at the state level and now within the federal government. At the federal level, she has worked with the U.S. Bureau of Labor Statistics, the Department of Labor and now the Department of Homeland Security.

Economists are also found in consulting and research and development, according to BLS.

Are Economists Paid Well?

The salary potential in this field is strong.* BLS data shows that in 2023, the median wage for economists was $115,730.* Those working in scientific research and development earned the most on average, with an average salary of $140,940, according to BLS, while economists in state governments earned an average salary of $74,900.*

Job opportunities for economists continue to grow, particularly as the global economy becomes more complex and more businesses see the value of data analysis to boost their profits, according to BLS.* Between 2022 and 2032, jobs in this role are projected to grow by 6% — double the average for all occupations.*

How to Become an Economist

If you’re interested in becoming an economist, an advanced college degree is typically required to get your start in the field, according to BLS. The type of job you want, Puglia said, can help determine the degree you’ll need to succeed and the kind of college courses you take.

For local economic development jobs and other entry-level government jobs, Puglia said, a bachelor’s degree in economics is often enough. But for more advanced financial analysis or research work, you might consider a master's degree, such as a Master of Science in Finance. Some positions, BLS said, may require a PhD. (SNHU does not currently offer a PhD in Economics.)

Puglia said that students wondering how to become an economist should also consider their career end goal when selecting elective courses during their studies.

If you’re interested in research or policy-making, she said, then psychology and other social science courses would be beneficial. If you’re interested in financial modeling, on the other hand, you’ll need a strong knowledge of statistics, quantitative analysis and mathematics.

Completing an economics internship can give you hands-on experience you can include on your resume — even before you're done with your degree program. Internships also provide networking opportunities and help you develop important skills for the field.

BLS reported that some of the top skills for economists include:

• Analytical skills
• Communication skills
• Computer skills
• Critical thinking skills
• Math skills

“Having analytical capabilities and understanding big data analysis is a strong selling point, especially with the way our economy operates and in today’s job market,” Puglia said. “Economics gives you those skills that you can take and develop in any field.”

*Cited job growth projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Actual salaries and/or earning potential may be the result of a combination of factors including, but not limited to: years of experience, industry of employment, geographic location, and worker skill.

Danielle Gagnon is a freelance writer focused on higher education. She started her career working as an education reporter for a daily newspaper in New Hampshire, where she reported on local schools and education policy. Gagnon served as the communications manager for a private school in Boston, MA before later starting her freelance writing career. Today, she continues to share her passion for education as a writer for Southern New Hampshire University. Connect with her on LinkedIn.