Straws in the Wind - Part 64 (update to Part 50)

Back at straw #50, we noted that the American Economic Assn. was detecting a soft market for economists. The NY Times also has noticed: ...For decades, earning a Ph.D. in economics has been a nearly foolproof path to a lucrative career. Even as bearers of advanced degrees in history, English or anthropology struggled to find gainful employment, the popularity of economics as an undergraduate major created plenty of tenure-track teaching positions, while government agencies snatched up Ph.D. economists in bulk. Those looking for even larger paychecks could turn to tech companies, Wall Street and consulting firms, which bid up the price of economists as if they were a bespoke cryptocurrency.

Last year, the average base salary for newly hired economics professors at major research universities was more than $150,000, according to the American Economic Association, and their compensation swelled to about $200,000 once bonuses and summer teaching were included. As recently as the 2023-24 academic year, the employment rate for Ph.D. economists within a few months of graduation was 100 percent, said John Cawley, the chair of the association’s Committee on the Job Market, citing the group’s surveys. Job satisfaction topped 85 percent.

Those glory days seem to be ending. Universities and nonprofits have scaled back hiring amid declining state budgets and federal funding cuts. At the same time, the Trump administration has laid off government economists and frozen hiring for new ones.

Tech companies also have grown stingier, and their need for high-level economists — once seemingly insatiable — has waned. Other firms have slowed hiring in response to the economic uncertainty introduced by President Trump’s tariffs and the possibility that artificial intelligence will replace their workers, even if those workers have a doctoral degree...

“The advent of A.I. is also impacting the market for high-skilled labor,” said Betsey Stevenson, a labor economist at the University of Michigan, in an email. “So the whole thing is kind of a mess.” ...

Full story at https://www.nytimes.com/2025/07/28/business/economics-jobs-hiring.html.