How Much Do Economists Earn?

Economists play an important role in helping governments, businesses, and organisations understand how money works. They influence policy, markets, and the wider economy which in turn has a practical effect on our daily lives. Their insights guide major financial and strategic decisions affecting everything from international trade tariffs to the price of milk.

But what’s it like to be an economist? How much do they earn and what affects their pay?

Today we’ll explore the typical economist salary in the UK, how it compares globally, and which types of economists earn the most.

The Average Economist Salary

It’s perhaps no surprise that economists are fairly well paid. If they weren’t, then they’d be the first people to know about it.

In the UK, an economist’s salary generally starts around £28,000, rising to £60,000 for experienced economists. Compared to other analytical job roles, that’s pretty good, although on a global scale the UK actually lags behind a little.

In the US an entry level economist can expect to earn at least $48,000 (around £36,000) and usually closer to $60,000 (£45,000). Although US salaries are generally higher, the gap for economists is far larger than most jobs and only increases when you go up to the average salary.

According to the American Economic Association, in the US the median average income for an economist was $115,440 (£86,480) in 2024. That’s already outpacing the top end of what economists earn in the UK.

But what about internationally? How do the numbers hold up compared to the rest of Europe?

Generally speaking, economist salaries in the UK are above average for Europe although lower than most other central European countries like Switzerland, Denmark, and Luxembourg. 

The bottom line is that an economist can make good money in Europe but for the best income, the US is the place to be.

Which Types of Economists Earn the Most?

There are several major branches of professional economics. From academics working for universities and think-tanks to financial economists working for hedge funds and banks. Consultancy can also be an extremely lucrative path providing advice and analysis to large firms and even governments.

All of the above have the potential to see earnings in the six figures without even factoring bonuses or income earned from assets and investments.

Of course, that’s not to say high earnings are a guarantee in these fields. Academic economists, for example, generally earn between £40,000 and £50,000 with only senior lecturers ever reaching those six figure numbers.

Why Become an Economist?

Believe it or not, money isn’t the only reason to become an economist – although you’d struggle to be one if we got rid of money altogether. In academia, many apply their knowledge of economics to social aims, looking for ways to use the systems of finance to create a fairer, more just society.

And even discounting any self-less ambitions, there’s a lot the role can offer aside from money alone. Benefits to a university position include research opportunities, job stability, and the chance to meet people within the field as well as having a real influence on economic thought.

In the UK, many economists work for the government via the Government Economic Service, where pay rates are structured and far less negotiable than in the private sector. While the money may be less, these are some of the roles that provide the most direct insight into the policies that shape our economy and experience with government work can be highly valuable when moving out into the private sector.

How To Become an Economist

If you’re interested in becoming an economist, then you’ll need a strong educational background. Like almost any financial role, you’ll need a degree – usually in economics although most maths related fields will be a suitable foundation. For some of the more senior roles, you’d be expected to have a master’s degree or even a PhD.

In practice, the job is largely one of applied statistics and theory. It’s about making educated predictions to understand where the economy is going and how you, your company, or your institution can benefit from that. If you’re the kind of person who enjoys puzzling out the truth from the numbers, then this could be a perfect role for you.