### Bureau of Labor Statistics U.S. Bureau of Labor Statistics

Financial Analysts Summary
                        
            
                                                        
                                                                
                        
            
            
            
                            
                                                
                                                
                                                
                                                
            						
							
				                                                
                                            




            			financial analysts imageFinancial analysts recommend individual investments and collections of investments, which are known as portfolios.							
						Quick Facts:     Financial Analysts2023     Median Pay
            						$99,890     per year
										$48.02     per hourTypical Entry-Level Education
                                    Bachelor's degreeWork Experience in a Related Occupation
                                    NoneOn-the-job Training
                                    NoneNumber of Jobs, 2022
                                    376,100Job Outlook, 2022-32
                                    8% (Faster than average)Employment Change, 2022-32
                                    29,000What 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 $99,010 in May 2023.									                                														The median annual wage for financial risk specialists was $106,090 in May 2023.									                                					
						
            
                        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 Financial Analysts Do 
            

			Financial analystsFinancial analysts work in banks, pension funds, insurance companies, and other businesses.			
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
Prepare written reportsFinancial 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.
 Work Environment
			Financial analystsFinancial analysts may work at institutions that are based in large cities.			

	    
				
	
	
	
	
	
	
	    					 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
                13Management of companies and enterprises
                11Credit intermediation and related activities
                11Insurance carriers and related activities
                7Financial 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
                15Insurance carriers and related activities
                15Management of companies and enterprises
                13Professional, scientific, and technical services
                8Financial analysts work primarily in offices but may travel to visit companies or clients.
Work Schedules
Most financial analysts work full time and some work more than 40 hours per week.
 How to Become a Financial Analyst

			Financial analystsFinancial analysts must process a range of information in finding profitable investments.			
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.
Employers often recommend certification, which may improve the chances for advancement. An example 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.
 Pay

			



	
 
                                                     
            
    
                        Financial AnalystsMedian annual wages, May 2023Financial risk specialists$106,090  Financial analysts$99,890  Financial and investment analysts$99,010  Financial specialists$80,090  Total, all occupations$48,060Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics
 

	
	



		
	
	
	
The median annual wage for financial and investment analysts was $99,010 in May 2023. 


The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $60,830, and the highest 10 percent earned more than $175,840.The median annual wage for financial risk specialists was $106,090 in May 2023. 


The lowest 10 percent earned less than $61,090, and the highest 10 percent earned more than $184,330.





		
	    					 In May 2023, the median annual wages for financial and investment analysts in the top industries in which they worked were as follows:	
        Securities, commodity contracts, and other financial investments and related activities
                $115,480Professional, scientific, and technical services
                98,840Management of companies and enterprises
                97,710Credit intermediation and related activities
                97,240Insurance carriers and related activities
                89,150In May 2023, the median annual wages for financial risk specialists in the top industries in which they worked were as follows:	
        Securities, commodity contracts, and other financial investments and related activities
                $128,660Professional, scientific, and technical services
                111,220Management of companies and enterprises
                107,780Credit intermediation and related activities
                103,240Insurance carriers and related activities
                102,980Fund 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.
 Job Outlook

   
        
    
          
        
    
                      Financial AnalystsPercent change in employment, projected 2022-32Financial analysts8%  Financial and investment analysts8%  Financial risk specialists8%  Financial specialists5%  Total, all occupations3%Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Employment Projections program
            
            
			 
	
	
	

			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.
			Employment
	
			
Demand for financial analysts generally increases with overall economic activity. These workers will be needed to evaluate investment opportunities when new businesses are established or as existing businesses expand. In addition, emerging markets throughout the world are providing new investment opportunities, requiring 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 businesses manage their finances, identify investment trends, and deliver new products or services to clients.
			

                        Employment projections data for     financial analysts, 2022-32
                Occupational Title
                        SOC Code
                        Employment, 2022
                        Projected Employment, 2032
                        Change, 2022-32
                        Employment by IndustryPercent
                        NumericSOURCE: U.S. Bureau of Labor Statistics, Employment Projections program**Financial analysts**
			—
			376,100
			405,100
			8
			29,000
			—**Financial and investment analysts**
			13-2051
			317,200
			341,400
			8
			24,200
			Get data**Financial risk specialists**
			13-2054
			58,900
			63,700
			8
			4,800
			Get 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 OES 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.com. 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.
 Similar Occupations This table shows a list of occupations with job duties that are similar to those of financial analysts. Occupation
                Job Duties
                ENTRY-LEVEL EDUCATION
                2023     MEDIAN PAY**Budget Analysts**
            Budget analysts help public and private organizations plan their finances.
            Bachelor's degree
            $84,940**Data Scientists**
            Data scientists use analytical tools and techniques to extract meaningful insights from data.
            Bachelor's degree
            $108,020**Financial Managers**
            Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.
            Bachelor's degree
            $156,100**Insurance Underwriters**
            Insurance underwriters evaluate insurance applications and decide whether to approve them.
            Bachelor's degree
            $77,860**Personal Financial Advisors**
            Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.
            Bachelor's degree
            $99,580**Securities, Commodities, and Financial Services Sales Agents**
            Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets.
            Bachelor's degree
            $76,900
 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 SpecialistsFinancial and Investment Analysts
 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 *May 21, 2024*).
 **Last Modified Date:**
                        Wednesday, April 17, 2024


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