Wage and salary employment in securities, commodities, and other investments is projected to rise 15.5 percent from 2002 to 2012, about as fast as the 16.3-percent increase expected for all industries in the economy. Employment growth will be driven primarily by increasing levels of investment in securities and commodities in the global marketplace. In addition to the many new job openings stemming from this growth, a large number of openings will arise as people retire or leave the industry for other reasons.
Baby boomers are in the middle of their peak saving years, and many are putting money into a number of tax-favorable retirement plans, such as 401(k) programs and Roth IRAs. These plans have been one of the major causes of inflows of money into the stock market and into mutual funds, and this trend towards saving for retirement is expected to continue.
Another factor contributing to projected employment growth is the “globalization” of securities and commodities markets-the extension of traditional exchange and trading boundaries into new markets in foreign countries. This extension, in turn, has provided an expanding array of investment opportunities and access to markets in which new financial products are now available to domestic investors. These new products and markets encourage trading and prompt firms to hire more workers.
Also, although online trading will grow and reduce the need for direct contact with an actual broker, the number of securities sales agents is still expected to increase, as many people will remain willing to pay for the advice that a full-service representative can offer. Competition for securities sales agent jobs, though, is expected to be keen, because the job attracts a large number of qualified applicants. Job opportunities for sales agents should be best for mature individuals with successful work experience.
Employment of personal financial advisors is expected to increase rapidly. As the number of self-directed retirement plans grows, and as the number of investments rises and their complexity increases, individuals will require more help to manage their money. Financial advisors who have either the CFP (R) or ChFC designation are expected to have the best opportunities.
Financial analysts will be needed in the investment banking field, where they help companies raise money and where they work on corporate mergers and acquisitions. However, growth in demand for financial analysts to do company research will be constrained by the implementation of reform proposals calling for investment firms to subsidize independent research boutiques and separate research from investment banking. Firms may try to contain the costs of reform by eliminating research jobs. Competition for entry-level analyst positions in investment banking typically is intense, as the number of applicants usually far exceeds the number of vacancies.
Due to advances in telecommunications and computer technology, the securities, commodities, and other investments industry has become highly automated. On the one hand, this automation is expected to cause rapid growth in employment of computer software engineers and other computer specialists. On the other hand, automation has resulted in computerized recordkeeping of transactions, more productive office and administrative support staffs, and enhanced communications with foreign firms. Accordingly, employment of brokerage clerks and secretaries will decline, and employment of bookkeeping, accounting, and auditing clerks is projected to grow more slowly than the average for the industry.
