In this article
Welcome to the world of economics
Whether you're fascinated by how economies and markets work, or you're weighing it as a career, this guide covers everything — what an economist actually does, what skills you need, what the day-to-day looks like, and the honest upsides and downsides.
General description
An economist studies the production, distribution, and consumption of resources, using data and theory to explain trends and forecast what comes next. In simple terms: they figure out why the economy behaves as it does and what decisions should follow. Think of them as the analyst and forecaster behind policy and strategy.
- Research economic questions and trends
- Build models and forecasts from data
- Analyse the impact of policies and decisions
- Advise governments, businesses, or institutions
Key skills & qualifications
Hard skills
Soft skills
- Analytical thinking — rigorous reasoning about cause and effect
- Communication — explaining complex analysis to non-economists
- Curiosity — about how the world actually works
- Critical thinking — questioning data, assumptions, and conclusions
- Writing — clear reports and briefs are central
- Objectivity — following the evidence, not the politics
Education & qualifications
An economics degree is the foundation, and many roles — especially in research, central banks, and policy — expect a master's or PhD. Strong quantitative and data skills are increasingly essential and overlap with data science.
Typical daily responsibilities
- Research — investigating economic questions and gathering data
- Modelling & forecasting — building and running quantitative models
- Analysis — interpreting trends and policy impacts
- Reports & briefs — writing up findings clearly
- Advising — informing decisions for clients or leadership
- Presenting — explaining conclusions to stakeholders
Responsibilities by seniority
Junior / Research Economist
0–3 years experience
- Data gathering and cleaning
- Supporting analysis
- Running models
- Drafting sections of reports
- Learning the domain
Economist
3–8 years experience
- Leads research projects
- Builds forecasts and models
- Writes and presents
- Advises stakeholders
- Develops a specialism
Senior / Chief Economist
8+ years experience
- Sets research direction
- Public voice of the org
- Advises senior leadership
- Shapes strategy or policy
- Leads a team
Where economists work
🏛️ Government & central banks
Policy, forecasting, and advising on the national economy.
🏦 Banks & finance
Market analysis, forecasts, and investment research.
🎓 Academia & think tanks
Research, teaching, and shaping public debate.
🏢 Consultancies
Economic analysis for clients across sectors.
🌍 International bodies
IMF, World Bank, and similar — global economic work.
💻 Tech & business
Increasingly, big firms hire economists for data-driven strategy.
A day in the life
🔬 Research / policy
- Deep analysis and modelling
- Writing papers and briefs
- Longer time horizons
- Peer review
- Shaping policy
💼 Business / finance
- Market-facing analysis
- Faster turnaround
- Forecasts for decisions
- Client and media work
- Commercial focus
Coffee and the morning data release — new inflation figures are out, and they don't match your forecast, so you dig into why.
Updating your model with the new data and re-running the forecast, checking which assumptions are driving the change.
Writing a clear, two-page brief that translates the analysis into what it actually means for decision-makers.
Presenting your read on the data to the team, fielding sharp questions and defending your reasoning.
Back to a longer research project on labour markets. Slow, careful work that might shape a real decision. That's the job.
What this job gives you
- Intellectual depth — you study how the world really works
- Real influence — your analysis can shape policy and strategy
- Strong analytical skills — that transfer widely
- Variety of sectors — government, finance, academia, tech
- Good pay and stability — especially with strong quantitative skills
Pros & cons
✅ Advantages
- Intellectually rewarding
- Real-world influence
- Transferable analytical skills
- Varied sectors and roles
- Good, stable pay
- Mostly regular hours
- Overlaps with growing data fields
❌ Disadvantages
- Advanced roles often need a PhD
- Forecasts are often wrong — and you're judged on them
- Can be abstract and report-heavy
- Politics can override analysis
- Competitive top roles
- Less hands-on "making" than some fields
Salary potential — global rating
Rated against all professions globally, where ★★★★★★★★★★ = top 1% earners. Strong, especially in finance:
Career growth paths
- Senior Economist — lead research and forecasts
- Chief Economist — the public, strategic voice of an institution
- Specialise — labour, finance, development, behavioural, or environmental
- Policy & government — shape national economic decisions
- Data science / quant — pivot into the booming data fields
- Academia — research and teaching with a PhD
Economist vs related roles
Analytical careers overlap. Here's how some compare.
| Role | Core focus | Key tools | Pay vs economist | Entry |
|---|---|---|---|---|
| Economist You are here | Studies economies and forecasts | Econometrics, R, models | Baseline | Hard |
| Financial Analyst | Analyses companies and investments | Excel, modelling | Similar | Medium |
| Data Scientist | Builds predictive models from data | Python, ML | Higher | Hard |
| Data Analyst | Explains what the data shows | SQL, BI tools | Lower–similar | Medium |
| Accountant | Records and reports financial position | Accounting standards | Similar | Medium |
Scroll the table sideways on mobile. Pay comparisons are directional and vary by sector and seniority.
Future outlook
Economics is increasingly data-driven, and that's an advantage. The line between economists and data scientists is blurring, and economists with strong quantitative skills are in growing demand — including in tech.
- Big tech firms now hire economists for data-driven strategy
- Quantitative and coding skills are increasingly essential
- Behavioural and environmental economics are growing fields
- Policy demand stays steady through every economic cycle
- Strong overlap with the booming data-science world
Fun facts 🤓
Economists are famous for forecasts that miss — there's an old joke that they've "predicted nine of the last five recessions." Humility is part of the job.
Tech giants employ teams of economists to design marketplaces and pricing — a fast-growing and well-paid niche.
Behavioural economics — blending psychology with economics — won Nobel Prizes by showing people aren't always rational.
Modern economics is increasingly indistinguishable from data science — heavy on coding, statistics, and large datasets.
A single central-bank economist's analysis can influence interest rates that affect millions of people's mortgages.
Myths about economists
"Economists just predict the stock market."
❌ False. Most study broad questions — policy, labour, growth, prices — not day-to-day market moves.
"It's all abstract theory."
❌ False. Modern economics is heavily empirical and data-driven, with real-world applications.
"Economists are always wrong."
❌ Overstated. Forecasting the future is genuinely hard, but economic analysis reliably informs better decisions.
"You need to love finance."
❌ False. Many economists work in policy, development, labour, or health — far from financial markets.
"There are no jobs for economists."
✓ Reality: Government, finance, consulting, academia, and now tech all hire economists — especially quantitative ones.
Is this job right for you?
✅ Good fit if you...
- Love understanding how the world works
- Enjoy data, maths, and reasoning
- Can write and explain clearly
- Are curious and analytical
- Like influencing decisions
- Can handle uncertainty
❌ Maybe not for you if...
- You dislike maths and statistics
- You want hands-on, tangible making
- Being judged on forecasts unsettles you
- You want to avoid further study
- Report-heavy work bores you
- You need certainty and clear answers
Freelance & consulting potential
Experienced economists consult on policy, litigation, forecasting, and analysis — often at high rates, and increasingly remotely.
✅ Freelance advantages
- High rates for expertise
- Litigation and policy demand
- Varied, interesting projects
- Remote-friendly analysis
- Reputation drives inbound work
❌ Freelance challenges
- Need strong credentials first
- You find your own clients
- Income varies between projects
- Niche demand can be cyclical
- Reputation takes years to build
Recommended path: build credentials and a track record in employment or academia first, then consult.
How to become an economist
- Study economics — a degree is the foundation; build strong maths and statistics.
- Get quantitative — econometrics plus R, Python, or Stata are increasingly essential.
- Consider a master's — many economist roles, especially research and policy, expect postgraduate study.
- Gain experience — internships at banks, government, or think tanks open doors.
- Specialise — labour, finance, development, or behavioural economics deepen your value.
💸 What it actually costs to start
A realistic look at the path. Quantitative skills are the differentiator.
What to know before you start
- Quant skills are king — coding and econometrics open the best doors.
- A master's often helps — many strong roles expect postgraduate study.
- Communication matters — analysis nobody understands is useless.
- Forecasts will be wrong — and you'll be judged on them; humility helps.
- It overlaps with data science — a growing, lucrative crossover.
- Politics can trump analysis — especially in policy roles.
What economists wish they'd known
The same lessons come up again and again from people actually doing the job. A few worth hearing before you start:
Learn to code early. The economists getting hired now look a lot like data scientists — Python and real data skills matter as much as theory.
Economist · 5 years in, central bank
Your model is only as good as your ability to explain it. The two-page brief that a busy minister actually reads beats a brilliant fifty-page paper nobody opens.
Senior economist · 11 years in, policy
Get comfortable being wrong in public. Forecasting is humbling. The good economists are honest about uncertainty rather than faking false confidence.
Chief economist · 16 years in