According to the Bureau of Labor Statistics (BLS), the employment outlook for the finance industry is expected to grow at a .9 percent rate of change every year. While this appears insignificant, it is actually a moderate growth percentage when compared with all other industry sectors.
Why the Outlook Is Good for the Finance Industry
There have been repeated upheavals in the financial world during the recent years that have resulted in financial losses, economic hardships and loss of consumer confidence. Most of these national problems are related to poor financial controls and oversight. This means that the government, financial firms and consumers have higher expectations when it comes to financial efficiency and accountability. There are also stricter regulations that come with heftier fines and punishments.
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Many organizations are winning back the confidence of consumers and foreign investors through hiring financial professionals to help them stay on top of their own finances. The outlook is also good because an increasing number of older adults are retiring, more adults want to protect their assets and more younger people are taking their financial health more seriously. This means that personal financial advisors and financial analysts are the fastest-growing occupations in this sector.
Personal Financial Advisors
The BLS states that the job outlook for financial analysts is expected to grow at 30 percent, which is much faster than average, until the year 2024. The baby boom generation is entering retirement, so millions of people need competent advice about how to manage their investments and retirement accounts. Many young workers are also wisely investing in the futures by taking advantage of company sponsored retirement plans. However, very few companies provide investment advice to employees, so they must seek this advice from competent external professionals.
The demand for financial advisors is in high demand because people are becoming empowered through education, technology and the Internet to better manage their finances. Bear in mind that the personal financial advisor field is becoming crowded because there are potentially high earnings and the entry requirements are usually just an accredited bachelor’s degree and industry certification. A master’s degree is an excellent way to increase the individual’s competitiveness.
The recent economic meltdown motivated legislators to pass new regulations that raise the level of reporting and accountability in the financial world. This includes the Dodd–Frank Wall Street Reform and Consumer Protection Act, or Dodd-Frank act, which increases investor protections, regulatory enforcements, securities activities, corporate government and asset examination processes. Securities, trading and investment companies hire financial analysts to provide sound advice to businesses, organizations and individuals.
Financial analysts may specialize in various financial products and services, such as portfolio management, which involves making and explaining investment decisions and strategies. Portfolio financial analysts select the right mix of products and make continual readjustments after market changes. Fund financial analysts work exclusively with hedge or mutual funds and make buy or sell decisions in reaction to rapidly changing market conditions. Ratings financial analysts evaluate the ability of organizations to pay their debts and risk analysts evaluate the hazards of specific investment decisions.
The employment outlook for the finance industry is alright, but those looking for jobs in the financial services sector should bolster their education, proactively reach out to companies they want to work for and seek industry standard certification.