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ECONOMICS CAREER GUIDE 2020/2021 Economics2 Success at School is a national careers website for students aged 11-19, as well as their teachers, careers advisors, parents and other influencers. Young people can learn about their future career options through no-nonsense careers advice related to their own experiences. As well as covering topics such as career paths, industries, apprenticeships, university and employability skills, we connect schools and students to employers and universities through opportunities on our site and our interactive forums. Millions of young people and their influencers have visited our site for advice and information to help them plan for the future. Go to successatschool.org for more information. Copyright Success at School Ltd 2020 AboutSuccess at School3 ECONOMICS CAREER GUIDE 05 What is economics? 06 How will economics prepare me for work? 10 Should I choose economics? 12 Contents T-levels 15 Why work experience matters 18 How to future-proof your career 14 Job roles 30 Everything you need to know about gap years 20 Spotlight job 32 University 22 Interviews 26 Apprenticeships 34 Your action plan4 I like to think of economics as a blend of psychology and mathematics. In economics, you learn about the behavioural patterns of people, institutions, governments and combine them with a formula that helps you quantify these behaviours. As a result, it is one of the most well-rounded subjects you can study. Economists are sought-after in many industries such as financial services, the public sector and even in areas you might not expect, such as advertising and media. My own knowledge of economics has helped me in my career in asset management. I need to understand the impact of changing economic variables, the mechanics around government and monetary policies – then gauge how these factors will impact interest rates, currencies, equity markets and commodities. Economics also provides you with a variety of transferable skills such as problem solving, analysis, critical thinking and communication. In the current climate, economists within policy circles are trying to understand the macroeconomic impact of Covid-19 on UK businesses and what measures policymakers can take to help us recover from this shock. This requires innovative thinking as no situation is the same as before. Decisions are made taking into account the balance of risks and appreciating the benefits and drawbacks of different approaches. Whether your aspiration is to be the CEO of a FTSE 100 company or to help improve poverty in the world, economics will provide you with a fantastic stepping stone. Wishing you the best on your journey! Amit Tanna, CFA Portfolio manager Foreword5 Economic decisions and policies shape how we live and the conditions businesses operate in today. In 2020, the UK government has spent billions on policies to support businesses and workers through the Covid-19 pandemic, such as by operating its furlough scheme. But we also make simple economic decisions every day: deciding whether you can afford to go out for lunch with your friends is a basic economic decision. We often think of economics in terms of money, but it’s also about how we share out the world’s resources. There’s a growing awareness that there is resource scarcity on our planet, which means economics is becoming increasingly important. There are 2 strands to economics: microeconomics, which looks at how individuals use their wealth, and macroeconomics, which examines economies on a national and global scale. Businesses, governments, economic consultancies and financial organisations all employ economists. The climate crisis means that there is also demand for economists who specialise in the environment and agriculture. In these sectors you will explore how climate change will impact economies and the wellbeing of societies around the world. You’ll develop many transferable skills when you study economics. Your problem-solving skills will be useful whether you become a supply chain manager or a network engineer. Strong data analysis skills are vital for cyber security analysts. Your numeracy skills could help you build a career as an investment analyst or accountant. What is economics?6 5 workplace skills you’ll learn in economics Communication In class: In addition to exploring economic factors and evaluating data and information from different sources, you’ll learn how to share your insights with others in the clearest and most impactful way. You might give a presentation to the rest of your class or produce written reports. At work: Explaining complex information and concepts in a way that’s easy to understand is a useful skill in many jobs. Politicians need to provide clear and concise descriptions of policies that they support. Management consultants need to lead teams and report to the Board of Directors at an organisation. How will economics prepare me for work? Data analysis In class: Economists use data to help them make informed decisions and predictions. In the classroom, you’ll explore the various data sources you can use and how to analyse this data. You can use qualitative and quantitative data to help you make economic decisions and recommendations. At work: Policy officers need to support their recommendations with data and evidence to encourage governments and other organisations to make positive changes. As a retail buyer, you’ll use different data sources to help you decide what products to sell and where to source them from. Numeracy In class: Strong maths skills are important when you study economics. In class, you’ll learn to calculate, use and understand ratios, fractions, percentages and percentage changes. You’ll also learn to calculate and interpret index numbers, as well as how to draw and interpret graphs and charts. You may also cover how to calculate cost, revenue and profit. At work: Entrepreneurs need to be able to complete these kinds of calculations to help them run their business efficiently and to keep track of their financial position. A statistician needs excellent maths skills to help them collect, analyse and interpret data for businesses. Problem solving In class: In economics you’ll explore various problems facing communities around the world. You’ll learn to take a creative approach to problem solving and work with your classmates to find different solutions. You’ll also learn how to assess various solutions to choose the most appropriate option in a given situation. At work: Many jobs involve problem solving, such as that of an environmental engineer. You’ll use your problem-solving abilities to come up with ideas to address issues such as climate change, urbanisation and drought. Software testers need to identify issues with programmes and make suggestions about how to solve them. Decision making In class: You’ll explore rational economic decision making from the perspective of consumers and businesses, as well as how competition plays a role in business decision making. You’ll also learn how to use data to support your decision-making process. At work: If you’re a stockbroker you’ll be making investment decisions on behalf of your clients and need to use as much information as possible to make informed choices. An energy manager will need to evaluate an organisation’s energy use and decide on the most effective ways to reduce energy consumption. 7 ECONOMICS CAREER GUIDE ...and 2 you may not have thought of Adaptability In class: In your lessons you’ll study economics from the perspective of individuals and companies, as well as from the perspective of national governments and even international organisations. You’ll learn about the different methodology to assess microeconomic and macroeconomic performance. At work: Being able to adapt at work is essential. The Covid-19 pandemic meant many businesses had to change how they operated overnight. New technology is also leading to changes in workplaces. Social media marketers need to adapt their messaging for different platforms and audiences. Critical thinking In class: Critical thinking is an important skill in the field of economics. You’ll learn to view economic issues with a critical eye and explore how these issues affect everyday life. You’ll also evaluate different economic models and understand how each has its limitations and which are present in global economic markets today. At work: A political risk analyst needs to think critically to analyse information and help them model scenarios to predict how different policy decisions could affect people and businesses. Quantity surveyors have to ensure construction projects provide value for money, while meeting the required legal standards and quality. A psychiatrist will need to adapt their approach to suit different patients.8 Learn about how economic resources are categorised into land, labour, capital and enterprise. Explore the concept of scarcity and understand that the environment is a scarce resource. Develop your understanding of what scarcity means as an economic problem and how this affects the allocation of resources. You’ll also learn how to make the distinction between renewable and non-renewable resources. If you work as a recycling officer, you’ll deliver education programmes in local schools and community settings to encourage recycling. You’ll also be involved in creating waste reduction and management policies. As a supply chain manager, you’ll manage the production process, which includes sourcing raw materials. You’ll need to carefully consider how you use and conserve resources. KnowledgeHow will it help me at work? Develop your knowledge of pricing of goods and services in a competitive market. Learn what is behind demand for certain goods or services and gain an understanding of how to calculate the price, income and across elasticities of demand. Know how changes in supply and demand can affect prices and what this means for businesses. If you’re a product manager, you need to consider what demand there will be for various products and how these will be priced in the market. You’ll also be responsible for ensuring the products are made as efficiently as possible. Logistics and distribution managers need to make sure that goods are transported to where there is demand for them. Understanding pricing will also be useful if you set up your own business. Gain an understanding of macroeconomics and government objectives like the economic cycle and how different indicators, such as GDP, the rate of inflation and unemployment, help determine government policy. Consider how government spending, interest rates and business policies can influence the national economy. Learn how to understand economic data and economic performance between countries. If you work as an economist within the Government Economic Service, an understanding of economic cycles, how to assess the state of the economy and what can impact economic growth will be essential. In this job, your analysis will help inform government policy and spending decisions. Financial risk analysts also need to understand economic cycles to help them predict future trends and identify risks to businesses. Stockbrokers also need to understand how government policies can affect the markets and predict how this may affect share prices. 5 ways your economics know-how will help you at work9 ECONOMICS CAREER GUIDE Learn about globalisation and what factors have contributed to globalisation in the last 50 years. Understand how both globalisation and multinational companies have an impact on individual countries, governments, producers, consumers, workers and the environment. Develop your understanding of the Human Development Index (HDI) and the 3 dimensions it measures: education, health and living standards. The internet has made goods and services from around the world more accessible than ever before. But it’s important to consider the negative as well as the positive impacts of a more globalised society. Production managers oversee the manufacturing production process and need to ensure goods are made efficiently and cost effectively. There’s growing consumer pressure for sustainable and ethical production practices too. A human rights researcher might research the negative impacts of globalisation on certain communities to help support a campaign for change. A human rights lawyer will campaign for the rights of those who have been exploited in the globalisation process. KnowledgeHow will it help me at work? Explore fiscal policy and taxation. Learn how government spending and taxation can have an impact on economic activity. Understand the difference between direct and indirect taxes. Look at how taxes are applied and used in the UK. The Covid-19 pandemic has forced the government to take some extraordinary measures when it comes to government spending this year. There is expected to be a lasting economic fallout as a result. Policy advisors will monitor the situation and recommend changes to government policy accordingly. Tax advisors need to stay up to date with any changes in tax rules to enable them to advise their clients on how to pay their taxes in the most efficient way. Next >