When speaking to youngsters who are on the verge of choosing their career path, I find there is much enthusiasm, ambition, and fresh vision. However, the moment they hear that I am an academic economist, their enthusiasm wanes: “Oh, Economics. It pays good money but there is a lot of Maths, which is difficult.”
It is high time the question of Maths as an essential skill in Economics is straightened out. First, many students choose to pursue Economics at university because of the great career opportunities it offers in terms of the broad range of professions and industries for placements as well as the financial reward of being a professional economist. So, taking for granted that an Economics graduate will pursue a career as a professional economist, I can assure you that no employer who seeks to hire a mathematician would hire an economist. Economists are sought after because of their unique mix of skills and knowledge.
Appropriate tools
What makes an Economics graduate uniquely attractive in the labour market? The answer is: They are the only university graduates who are literate and numerate. A degree in Economics teaches one to reason and analyse based on evidence (be it quantitative or qualitative) and communicate that analysis to a broad range of audiences with the aim to inform, recommend, and consult.
It is, therefore, important to understand that economists are practitioners who use the appropriate tools (of which Maths is just one) to scrutinise Business, Economics, Politics, and societal conundrums and translate these complex issues into solutions that managers, governors or, simply put, decision-makers can understand and adopt.
As economists, we approach designing the curriculum exactly in the same way: we look for relevant information on the skills and knowledge that are in demand and make sure that these are embedded in the learning opportunities. We rely on comprehensive survey data that provide us with a map of the skills that current graduates have and those that they do not have but that employers are demanding.
Skills required
Let’s look at the skills that current Economics graduates have that are important to employers. The top two categories are the ability to analyse and interpret quantitative data and to use IT/computers. Today, almost every action of ours generates data that is being collected by businesses or governments. Data is knowledge and knowledge is power. It is clear, therefore, that having the skills to analyse and interpret data would be invaluable to private and public organisations. As a discipline, Economics has a long tradition of developing the skills to do exactly that.
Coming to skills that are important but are still at a lower-than-desired level, the one that requires the most improvement is the understanding and interpreting of financial markets. This, however, is an area that is not relevant to all employers. Finance is a branch of Economics with wide applicability and, therefore, Financial Analysis must be part of the curriculum of any economist. Those looking for careers in Finance need more specialist training. Specialisation is, once again, the answer to the challenge.
Another area that requires improvement is communication (verbal and written). Remember, a message is useful only if it is understood. So, a big part of an Economist’s job is to communicate with stakeholders in order to extract information, on the one hand, and to deliver solutions, on the other. Being an effective communicator is, therefore, an essential skill economists must have. This comes with practice.
So, how can one be a successful economist? Be passionate about your career choice. Skills and knowledge are just enablers of dreams. It is the dream that matters. How does one nurture dreams? Be part of a community with a shared passion. Choose a school where you will learn from economists who want to make a difference to the world and become part of that community.
The writer is Head of School of Economics, University of East Anglia, the U.K.
