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Financial Analysts PRINTER-FRIENDLY

Summary What They Do Work Environment How to Become One Pay Job Outlook State & Area Data Similar Occupations More Info

Summary

Quick Facts: Financial Analysts

$96,220 per year
2022 Median Pay
$46.26 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation None
On-the-job Training None
Number of Jobs, 2022 376,100
Job Outlook, 2022-32 8% (Faster than average)
Employment Change, 2022-32 29,000

What Financial Analysts Do

Financial analysts guide businesses and individuals in decisions about expending money to attain profit.

Work Environment
Financial analysts work in offices. Most work full time, and some work more than 40 hours per week.

How to Become a Financial Analyst

Financial analysts typically need a bachelor’s degree to enter the occupation.

Pay
The median annual wage for financial and investment analysts was $95,080 in May 2022.

The median annual wage for financial risk specialists was $102,120 in May 2022.

Job Outlook
Overall employment of financial analysts is projected to grow 8 percent from 2022 to 2032, faster than the average for all occupations.

About 27,400 openings for financial analysts are projected each year, on average, over the decade. Many of those openings are expected to result from the need
to replace workers who transfer to different occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for financial analysts.

Similar Occupations
Compare the job duties, education, job growth, and pay of financial analysts with similar occupations.

More Information, Including Links to O*NET

Learn more about financial analysts by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What They Do ->

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What Financial Analysts Do

Financial analysts guide businesses and individuals in decisions about expending money to attain profit.
They assess the performance of stocks, bonds, and other types of investments.

Duties
Financial analysts typically do the following:

Recommend individual investments and collections of investments, known as portfolios

Evaluate current and historical financial data
Study economic and business trends
Examine a company’s financial statements to determine its value
Meet with company officials to gain better insight into the company’s prospects
Assess the strength of the management team
Financial analysts work in banks, pension funds,
Prepare written reports insurance companies, and other businesses.

Financial analysts evaluate opportunities to commit money for the purpose of generating profit.

Financial analysts can be divided into two categories: buy-side analysts and sell-side analysts.

Buy-side analysts develop investment strategies for companies that have a lot of money to invest. These companies, called institutional investors, include hedge funds,
insurance companies, independent money managers, nonprofit organizations with large endowments, private equity firms, and pension funds.
Sell-side analysts advise financial services sales agents who sell stocks, bonds, and other investments.

Analysts may work for the business media or other research houses, which are independent from the buy and sell side.

Financial analysts generally focus on trends affecting a specific geographical region, industry, or type of product. For example, they may focus on a subject area
or a foreign exchange market. They must understand how economic trends, new regulations, policies, and political situations may affect investments.

Investing has become more global, and some specialize in a particular country or world region. Companies want these specialists to understand the business
environment, culture, language, and political conditions in the country or region that they cover.

The following are examples of types of financial analysts:

Financial risk specialists, also called financial risk analysts, evaluate threats to investment decisions and determine how to manage unpredictability and limit
potential losses. They make investment decisions such as selecting dissimilar stocks or having a combination of stocks, bonds, and mutual funds in a portfolio.
They also make recommendations to limit risk.

Fund managers work exclusively with hedge funds or mutual funds. Both fund managers and portfolio managers frequently make buy or sell decisions in
reaction to quickly changing market conditions.

Investment analysts assess information involving investment programs or financial data of institutions, such as business valuation. They also respond to
queries from clients and client advisors regarding asset allocation and alternative investment topics including hedge funds, real property, and venture capital.

Portfolio managers select the mix of products, industries, and regions for their company’s investment portfolio. These managers are responsible for the overall
performance of the portfolio. They are also expected to explain investment decisions and strategies in meetings with stakeholders.

Ratings analysts evaluate the ability of companies or governments to pay their debts, including bonds. Based on these evaluations, a management team rates
the risk of a company or government not being able to repay its bonds.

Securities analysts evaluate securities markets and trends to identify high-yield assets for clients and companies. They may use resources such as bond
performance reports, daily stock quotes, market and economic forecasts, and other financial statements and publications.

<- Summary Work Environment ->

Work Environment
Financial and investment analysts held about 317,200 jobs in 2022. The largest employers of financial and investment
analysts were as follows:

Securities, commodity contracts, and other financial investments and related activities 24%
Professional, scientific, and technical services 13
Management of companies and enterprises 11
Credit intermediation and related activities 11
Insurance carriers and related activities 7

Financial risk specialists held about 58,900 jobs in 2022. The largest employers of financial risk specialists were as
follows:

Credit intermediation and related activities 31%

Securities, commodity contracts, and other financial investments and related activities 15
Insurance carriers and related activities 15
Management of companies and enterprises 13
Financial analysts may work at
Professional, scientific, and technical services 8 institutions that are based in large
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Financial analysts work primarily in offices but may travel to visit companies or clients. cities.

Work Schedules
Most financial analysts work full time and some work more than 40 hours per week.

<- What They Do How to Become One ->

How to Become a Financial Analyst

Financial analysts typically need a bachelor’s degree to enter the occupation.

Education
Most entry-level positions for financial analysts require a bachelor’s degree; a common field of
degree is business. Some employers prefer to hire job candidates who have a master’s degree.

Licenses, Certifications, and Registrations

The Financial Industry Regulatory Authority (FINRA) is the main licensing organization for the securities
industry. A license is generally required to sell financial products, which may apply to some positions.
Because most of the licenses require sponsorship by an employer, companies do not expect individuals to
have these licenses before starting a job.
Financial analysts must process a range of
Employers often recommend certification, which may improve the chances for advancement. An example information in finding profitable investments.
is the Chartered Financial Analyst (CFA) certification from the CFA Institute . Financial analysts can
become CFA certified if they have a bachelor’s degree and several years of work experience and pass multiple exams. They also may choose to become certified
in their field of specialty.

Advancement
Financial analysts typically start by specializing in an investment field. As they gain experience, they may become portfolio managers and select the mix of
investments for a company’s portfolio. They also may become fund managers of large investment portfolios for individual investors. Having a master’s degree in
finance or business administration may improve an analyst’s chances of advancing to one of these positions.

Important Qualities
Analytical skills. Financial analysts must evaluate a range of information in finding profitable investments.

Communication skills. Financial analysts must be able to clearly explain their recommendations to clients.

Computer skills. Financial analysts must be adept at using software to analyze financial data and trends, create portfolios, and make forecasts.

Decision-making skills. Financial analysts must reach conclusions so that they can recommend whether to buy, hold, or sell a security.

Detail oriented. Financial analysts must pay attention when reviewing a possible investment, as even small issues may have large implications for its health.

Math skills. Financial analysts use mathematics to estimate the value of financial securities.

<- Work Environment Pay ->

Pay
The median annual wage for financial and investment analysts was $95,080 in May Financial Analysts
2022. The median wage is the wage at which half the workers in an occupation
Median annual wages, May 2022
earned more than that amount and half earned less. The lowest 10 percent earned
less than $58,950, and the highest 10 percent earned more than $169,940.
Financial risk specialists $102,120
The median annual wage for financial risk specialists was $102,120 in May 2022. The
lowest 10 percent earned less than $59,510, and the highest 10 percent earned
Financial analysts $96,220
more than $175,720.

In May 2022, the median annual wages for financial and investment analysts in the
Financial and investment
top industries in which they worked were as follows: $95,080
analysts

Securities, commodity contracts, and other financial investments $106,390

and related activities
Financial specialists $78,180
Professional, scientific, and technical services 95,200
Management of companies and enterprises 90,000
Credit intermediation and related activities 88,100
Total, all occupations $46,310
Insurance carriers and related activities 85,910

In May 2022, the median annual wages for financial risk specialists in the top Note: All Occupations includes all occupations in the U.S. Economy.
industries in which they worked were as follows: Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics

Securities, commodity contracts, and other financial investments and related activities $128,880
Professional, scientific, and technical services 104,260
Management of companies and enterprises 103,300

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Credit intermediation and related activities 100,500

Insurance carriers and related activities 97,200

Fund managers are typically compensated by fees, usually structured as a percentage of assets under management and a percentage of the fund’s annual return.

Most financial analysts work full time, and some work more than 40 hours per week.

<- How to Become One Job Outlook ->

Job Outlook
Overall employment of financial analysts is projected to grow 8 percent from 2022 to Financial Analysts
2032, faster than the average for all occupations.
Percent change in employment, projected 2022-32

About 27,400 openings for financial analysts are projected each year, on average,
over the decade. Many of those openings are expected to result from the need to Financial analysts 8%
replace workers who transfer to different occupations or exit the labor force, such as
to retire.
Financial and investment
analysts 8%
Employment
Demand for financial analysts generally increases with overall economic activity.
These workers will be needed to evaluate investment opportunities when new Financial risk specialists 8%
businesses are established or as existing businesses expand. In addition, emerging
markets throughout the world are providing new investment opportunities, requiring
Financial specialists 5%
expertise in geographic regions where those markets are located.

Demand also is projected to increase as big data and technological improvements

allow financial analysts to conduct high-quality analysis. This analysis will help Total, all occupations 3%
businesses manage their finances, identify investment trends, and deliver new
products or services to clients.
Note: All Occupations includes all occupations in the U.S. Economy.
Source: U.S. Bureau of Labor Statistics, Employment Projections program

Employment projections data for financial analysts, 2022-32

Financial analysts

SOC Code:
—

Employment, 2022:
376,100

Projected Employment, 2032:

405,100

Change, 2022-32 (Percent):

8

Change, 2022-32 (Numeric):

29,000

Employment By Industry:
—

Financial and investment analysts

SOC Code:
13-2051

Employment, 2022:
317,200

Projected Employment, 2032:

341,400

Change, 2022-32 (Percent):

8

Change, 2022-32 (Numeric):

24,200

Employment By Industry:
Get data

Financial risk specialists

SOC Code:
13-2054

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Employment, 2022:
58,900

Projected Employment, 2032:

63,700

Change, 2022-32 (Percent):

8

Change, 2022-32 (Numeric):

4,800

Employment By Industry:
Get data

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

<- Pay State & Area Data ->

State & Area Data

Occupational Employment and Wage Statistics (OEWS)
The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These
estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps
for employment and wages by state and area.

Financial and investment analysts

Financial risk specialists

Projections Central
Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state
projections data are available at www.projectionscentral.org . Information on this site allows projected employment growth for an occupation to be compared
among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data
may be retrieved.

CareerOneStop
CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare
occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

<- Job Outlook Similar Occupations ->

Similar Occupations
This table shows a list of occupations with job duties that are similar to those of financial analysts.

Budget Analysts
Job Duties:
Budget analysts help public and private organizations plan their finances.
Entry-Level Education:
Bachelor's degree
2022 Median Pay:
$82,260

Data Scientists
Job Duties:
Data scientists use analytical tools and techniques to extract meaningful insights from data.
Entry-Level Education:
Bachelor's degree
2022 Median Pay:
$103,500

Financial Managers
Job Duties:
Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.
Entry-Level Education:
Bachelor's degree
2022 Median Pay:
$139,790

Insurance Underwriters
Job Duties:
Insurance underwriters evaluate insurance applications and decide whether to approve them.
Entry-Level Education:
Bachelor's degree
2022 Median Pay:

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$76,230

Personal Financial Advisors

Job Duties:
Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.
Entry-Level Education:
Bachelor's degree
2022 Median Pay:
$95,390

Securities, Commodities, and Financial Services Sales Agents

Job Duties:
Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets.
Entry-Level Education:
Bachelor's degree
2022 Median Pay:
$67,480

<- State & Area Data More Info ->

Contacts for More Information

For more information about licensure for financial analysts, visit

Financial Industry Regulatory Authority (FINRA)

For more information about training and certification, visit

CFA Institute

For more information about certifications in financial analysis, visit

Global Academy of Finance and Management

CareerOneStop
For a career video on financial analysts, visit

Financial Analysts

O*NET
Financial Risk Specialists

Financial and Investment Analysts

<- Similar Occupations

SUGGESTED CITATION:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Financial Analysts,
at https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm (visited February 15, 2024).

Last Modified Date: Wednesday, September 6, 2023

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Avenue NE Washington, DC 20212-0001

Telephone:1-202-691-5700 www.bls.gov/ooh Contact OOH

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