Employment for personal financial advisors is expected to grow faster than overall U.S. employment over the decade ending in 2028, the U.S. Bureau of Labor Statistics reported today.
The BLS reported that employment is expected to grow by 8.4 million jobs to 169.4 million jobs, or 5.2%, over the 2018–28 decade. The expansion reflects an annual growth rate of 0.5%, which is slower than the 2008–18 annual growth rate of 0.8%.
Over the same time, the number of people working as personal financial advisors will grow by 7%, to 290,800, from 271,700 in 2018, the report said.
The number of working financial analysts is expected to grow 6.2%, to 349,800 from 329,500. Meanwhile the number of insurance underwriters is expected to decline 4.9% to 105,000, from 110,400. The BLS included the three jobs in the “Financial analysts and advisors” category in its analysis.
The BLS also included a number of other projections that will likely be of interest to financial advisors. For example, it noted older workers, those 65 and older, are increasingly staying in the workforce and their participation rate will increase to 23.2% by 2028. At the same time, the participation rate of 16- to 24-years-olds will drop because they will spend more time in school and will be displaced as older workers continue to fill jobs historically held by young people, the BLS said.
In particular, the share of workers 55 and older, a group that includes baby boomers who are staying in the workforce longer, will continue to increase, from 23.1% to 25.2%, over the decade, the report said.
Of the 30 fastest-growing occupations, 18 are in health care and related occupations, the BLS said, adding that higher demand for health-care services from an aging population and people with chronic conditions will drive much of the expected employment growth. Home health aides and personal care aides are near the top of the 30 fastes-growing jobs. Other health-care occupations with rapid projected growth are nurse practitioners, physician assistants and medical assistants. Those jobs will be in greater demand as the health-care industry moves toward delivery of team-based care, the report said.
Computer and mathematical occupations account for six of the 30 fastest growing occupations. “Increasing use of mobile and connected devices will drive demand for application software developers, which is projected to experience employment growth of 25.6%,” the BLS said. “The need for robust online security will also rise as more connected devices enter homes and workplaces. This increased need for cybersecurity will drive demand for information security analysts, employment of which is projected to grow by 31.6%.”
Advances in, and implementation of, renewable energy technologies are expected to drive employment growth in the two occupations with the highest projected growth rates: solar photovoltaic installers (63.3%) and wind turbine technicians (56.9%). “Despite the rapid growth projected in these occupations, their small employment size means that the growth is projected to yield only 6,100 new jobs and 3,800 new jobs, respectively,” BLS noted.