Employment is projected to about as fast as the average. Keen competition is expected as the number of applicants will continue to far exceed the number of job openings in this high-paying occupation.
Employment of securities, commodities, and financial services sales agents is expected to grow 9 percent during the 2008-18 decade, about as fast as the average for all occupations. Consolidation of the financial industry, mainly stemming from recent global financial problems, will be the largest inhibitor of employment growth. Increased levels of industry consolidation often result in duplicated tasks among workers, a scenario that is expected to result in layoffs of many broker, sales, and investment banking positions. Additionally, the deregulation of financial markets in past decades has broken down the barriers between investment activities and banking, resulting in competition between traditional banks and securities companies on all levels. However, many of the major investment banks are now owned by large banks and most major banks also have brokerages, which allow their customers to quickly and easily transfer money between their personal banking and investment accounts. The ability of customers to access accounts online, as well as manage their personal investments through the Internet, will result in fewer brokers as well.
Competition for jobs will continue to be keen with more applicants than available openings. Additionally, the recent financial crisis has resulted in mass consolidation in the financial industry, a scenario that will likely result in fewer positions as companies attempt to streamline operations by eliminating duplicate tasks.
Entry-level sales agents, particularly those with previous sales experience, should face better prospects in smaller firms, as opposed to larger firms, where many positions have recently been eliminated. Investment banking is especially known for its competitive hiring process and candidates will face particularly keen competition for the relatively few openings. Having a degree from a prestigious undergraduate institution is very helpful, as are excellent grades in finance, economics, accounting, and business courses. Certifications and graduate degrees, such as a CFA certification or a master's degree in business or finance, can also significantly improve an applicant's prospects. Competition is even greater for positions working in exchanges.
Employment in the securities industry is closely connected with market conditions and the state of the overall economy and is highly volatile during recessionary periods. Turnover is high for newcomers, who face difficult prospects no matter when they join the industry. Once established, however, securities and commodities sales agents have a very strong attachment to their profession because of their high earnings and considerable investment in training.
Securities, commodities, and financial services sales agents held about 317,200 jobs in 2008. About 49 percent of jobs were in the securities, commodity contracts, and other financial investments and related activities industry. About 15 percent of all workers were self-employed.
Because of their close relationship to stock exchanges and large banking operations, most of the major investment banks in the United States are based in New York metropolitan area. Smaller investment banks can be found in many major American cities and some major investment banks have operations in other cities, although most of their business remains in New York.
Unfortunately, no related occupation data exists for this profession.
For information on securities industry employment, contact:
- American Academy of Financial Management, 245 Glendale Dr., Suite 1, Metairie, LA 70001. Internet: http://www.financialanalyst.org
- Securities Industry and Financial Markets Association, 120 Broadway, 35th Floor, New York, NY 10271. Internet: http://www.sifma.org
For information on licensing, contact:
- Financial Industry Regulatory Authority (FINRA), 1735 K St. NW., Washington, DC 20006. Internet: http://www.finra.org
For information on CFA certification, contact:
Sources: O*Net data version 12.0
Occupational Outlook Handbook
Department of Labor
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