WHY STUDY ECONOMICS? To help you understand the world Why are some countries so rich and some so poor and why are some people so poor even in rich countries? Why do some businesses fail, and some grow so large? Why can governments borrow vast amounts of money and why isn’t this the same for individuals? Why are there long wait lists for NHS treatment but not for most products we buy in the shops? Why are music or sporting tickets often so much more expensive if we buy them second hand? Why do some people earn so much more than others even in the same companies? Studying economics can help you to: • Understand most of the important stories you see in the news • Understand the reasons why things in the news happen and the different opinions that people have • Understand the consequences of events and choices • Evaluate arguments put forward in the news and form interesting, robust opinions of your own Luxembourg is over 170 times richer than Burundi, adjusted for population size and the cost of goods and services. Apple is one of the biggest companies in the world and is bigger than all but the largest countries in the world today. In June 2021, the UK government owes over £2.8 trillion to people who have loaned it money when tax fell short of revenue. According to the BMA the numbers waiting over one year for NHS treatment in May 2021 stood at 336,733, a 326 fold increase on May 2019. In July 2021, there were reports of black-market ticket prices of £15,000 for the England, Italy Euro final. Reports suggest that the head of McDonald’s earns 1,939 times more than the company’s median worker. At Facebook it’s 94 times more. WHY STUDY ECONOMICS? To make a difference What are some of the biggest issues in the world today? Climate change and sustainable development Poverty and income inequality Social inclusion and economic opportunity Environmental and natural resource security Gender parity Economic resilience and wellbeing Studying economics can help you make a difference because: • Every one of these global problems can be explained using economic concepts • Understanding the true underlying causes of a problem is the first step in finding robust, workable solutions • Excellent analytical skills allow you to evaluate alternative possibilities • Robust data skills allow you to select a way forward with a high degree of confidence Why would a man in Morocco who doesn’t have enough to eat buy a television? Why is it so hard for children in poor areas to learn even when they attend school? Why do the poorest people in the Indian state of Maharashtra spend 7 percent of their food budget on sugar? For more than fifteen years Abhijit V. Banerjee and Esther Duflo have worked with the poor in dozens of countries spanning five continents, trying to understand the specific problems that come with poverty and to find proven solutions. They believe the battle can be won! WHY STUDY ECONOMICS? To help with your other subjects History Geography Biology Why did and why does hyperinflation happen? What are the consequences and the solutions? What determines trading patterns, why do multi-national companies exist and is migration a good thing? Why are delicate ecosystems such as the Amazon rainforest being destroyed and what role have governments played? MFL Government and politics RS How do differences in national cultures and languages affect the world we live in, how we live, and where and how we work? Go back 50 years and the economy would hardly ever be mentioned in politics. Not so now! Economics and ethics are closely related as choices need to be made based on value judgements. Studying economics can help your other subjects because: • Economics explains every choice and event in the world we live in – we can make links with every subject • It introduces you to a wide range of real-world issues and concepts and gives you the ability to understand theme • Economics provides you with alternative ways of thinking about issues and alternative viewpoints • The analytical and evaluative skills you develop as an economist allow you to think critically about any information or ideas that are put forward According to UCAS, Money makes the world go around. It plays a big part in politics, society, law, geography, and almost everything else in life. Economics doesn’t just help with your sixth form subjects. For all the reasons given here it is a very well-regarded subject that supports your application to a wide range of post-sixth form options. WHY STUDY ECONOMICS? To build transferable skills Transferable skills are a core set of skills and abilities that can be used in a wide range of different jobs, industries, and contexts. They matter because they are highly valued by employers, and they let you move into new career areas where you might have less experience. Problem solving Communication Numeracy Economists can use robust approaches to understand problems and suggest the best approaches. Economists have the skills to understand and express complex ideas simply and clearly to both specialists and generalists. Economists have the knowledge and skills to handle data in many formats to aid decision making and / or aid communication. Commercial awareness Analysis Decision making Economists have the knowledge of a broad range of financial and business concepts, behaviours and experiences and the confidence to build on this to develop robust commercial awareness. This skill lies at the very heart of economics. Economists have the skills to break down a problem in a logical and powerful way, allowing meaningful and useful discussions to be had. Economists are skilled at using all the tools at their disposal (analytical, evaluative, databased analysis) to make sound recommendations and to take firm decisions. Data analytics is a growing and important careers field. Mathematical skills need to be strong but alongside this is the need to be creative and imaginative. The term “thinking outside the box” fits perfectly. Economists are well suited to this broad range of skills, being able to think in depth about an issue but at the same time about all the possible lateral linkages. WHY STUDY ECONOMICS? To earn a good income Economists have diverse skills which can be used in many different fields. Economists are adept at applying their knowledge and skills to a variety of contexts. This means economists are well placed to move from sector to sector as opportunities present themselves. Many choose to work in sectors closely related to their specialism such as accountancy, finance, consultancy, banking, and the public sector. Salaries on average are high. The numbers vary by university but at the top end median earnings five years out from university are around £65,000. Very few subject specialisms are higher than this. Salaries are lower at the bottom end by university, demonstrating the need for careful research. Median earnings at £38,200 for economists are significantly higher than the graduate median for all degree areas apart from medicine and dentistry The most generous salaries in 2021 were offered by investment banks (median of £50,000), law firms (median of £46,000), consulting firms (median of £45,000) and oil and energy companies (median of £40,000). Economics gives you the skills to future proof your careers and maintain your ability to earn. Economists are the adaptive flexible talents most likely to suit workplaces of the future. According to PwC 37% are worried about automation putting their jobs at risk 60% think few people will have stable, long-term employment in the future. WHY STUDY ECONOMICS? To understand numbers and information To understand numbers and information: • Economics is a social science heavily based on empirical real-world evidence. • Economists have the skills and the experience to evaluate and interpret all kinds of data and to use this information to make robust, reliable, and appropriate deductions. • Economists are adept at judging when information is incomplete and making realistic estimates of the significance. • At degree level, economists have the skills to undertake sophisticated analysis and to critically evaluate the empirical work of others. • Some economists, depending on their specialisms will have the advanced mathematical skills valued in several fields. • These are all highly valued skills associated with employability and job security. In our everyday lives, media reporting increasingly uses visual images of data. Economists have the skills to spot the fake or misleading claims. Businesses and organisations have become increasingly reliant on using the mass of information available in today’s world to stay viable and thrive. Economists are especially adept at using such information along with logical analysis to make robust recommendations. Virtually all jobs require a level of numeracy. The more you have, the more options are open to you. WHY STUDY ECONOMICS? To become the “lynch pin” of a team Never have teams and teamwork been more important than they are today – whether this is at school, at university or at work. Economics gives you the knowledge and skills to be the “superhero” of a team – the person who can perform almost any role and get the job done. Brings ideas Excellent real world knowledge and skill at applying concepts from situation to another make economists brilliant idea generators. Solves problems Solving problems lies at the heart of what economists do. Most importantly economists have the skils to solve problems in the most effective and efficient way. Plans workable strategies Logical thinking, analytical skills, evaluation and a gift for using data and information effectively means that economists can plan strategies that work. Evaluates progress logically Economists are adept at evaluation and applying this to any number of situations. Is progress being made as it should and if not what can be done? Brings in-depth specialist knowledge Economists are specialists in their own right but their extensive real world knowledge and skill set lets them understand and communicate complex issues in just about any field. Completes work and to a high standard Economics is a demanding discipline that requires consistent dedication and precision. It is easy to start a task and not so easy to finish it. Economists have the skills and mind-set to get things done. WHY STUDY ECONOMICS? To set yourself apart from the competition Just about everything you apply for will be competitive. That means lots of people want the same thing as you. Employers are currently seeing the highest ever increase in graduate job applications. Economics helps you considerably in setting yourself apart from the competition in a good way. Economics is a very well-regarded subject recognised by universities as equipping you to excel at a wide variety of subjects. Economics boosts your academic profile, without question. Economics is very well-regarded by employers as it equips you with many of the transferable skills needed for today’s world, especially those in short supply such as problem solving and commercial awareness. Economics sets you apart as a candidate with a relevant interest and knowledge of the real world and intellectual ambition. It shows you as someone not afraid to try something new and as someone prepared to persevere to achieve mastery of a subject. Economics gives you the skills to excel in application processes. Economists are adept at applying knowledge and skills gained in one situation to unfamiliar situations. They are expert at communicating complex ideas concisely and accurately. Economics increases your flexibility and mobility in the job market. It makes you attractive to a wide range of organisations and most importantly allows you to adapt successfully as the world changes. Economics equips you with the skills to excel in life. From a financial awareness to an understanding of the real world, a willingness to try new things and take risks, to a structure for making good decisions in a complex world – economics offers everything you need to succeed.
