The truth about the investment banking jobs outlook now (2024)

FAQs

What is the job outlook for investment bankers? ›

According to the US Bureau of Labor Statistics (BLS), this sector employed 466,900 people in 2021 and is expected to grow by 10% between 2021 and 2031.

Investment banking trends for 2024 show the sector at a pivotal crossroads—one that's marked by demand for digital transformation, shifting economic paradigms, and opportunities in emerging new areas like sustainable finance, blockchain, and RegTech (among others).

Investment bankers are typically the highest-paid workers in the finance industry—high salaries are most prevalent even among younger employees. The starting salary for the typical investment banker exceeds that of most other finance positions, but working in this field has its challenges.

Investment banking recruiting is an extremely competitive process, so you'll want to do whatever you can to stand out during the recruitment process. Banks value the quality of your job experience, and the quality of your schools attended, and how hard you network or “hustle” for the role.

According to the Bureau of Labour Statistics, jobs in the investment banking and securities dealing industry are growing faster than the average occupation, meaning that competition is fierce due to increased demand and a lack of skilled labor.

Ways to make a lot of money in this world

Sure, anybody can make a good living being a doctor or a lawyer or an investment banker where you can make ~$200-500K per year a few years after you finish with your studies, but you hit a ceiling very quickly unless you start your own practice (aka start your own business).

It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.

Investment bankers often work long hours, including weekends and holidays, and are expected to be available around the clock. The demanding nature of the job and the sacrifices required are reflected in the higher compensation packages. 4.

Overall employment in business and financial occupations is projected to grow faster than the average for all occupations from 2022 to 2032. About 911,400 openings are projected each year, on average, in these occupations due to employment growth and the need to replace workers who leave the occupations permanently.

Banks don't break out investment banker headcount specifically, but data released last week by research firm Coalition, suggests investment banker headcount across the industry fell only 4% year-on-year in the first half, which is when many of the cuts at Goldman and Morgan Stanley took place.

At what age do investment bankers retire? ›

Age plays a huge factor in the decision-making process. Wall Street is an up-and-out industry. Unless the goal is senior management, most people in finance are out of there by age 50. That's not at just the biggest investment banks, either.

Getting into an investment bank is, with a lot of understatement, pretty tough.

Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.

With hundreds or thousands of applicants for every job opening, getting into this company is notoriously hard. The study says that Goldman receives at least 300 applications at every job it posts while the hiring percentage remains 0.33%. But last year, the job application acceptance rates rose to 1.27%.

Getting into an investment bank is, with a lot of understatement, pretty tough.

The Bureau of Labor Statistics forecasts finance-related jobs to grow 7% from 2021 to 2031, with an expected increase of about 715,100 new jobs and about 980,200 openings from growth and replacement needs. As of May 2021, the median annual wage was $76,570, compared to those for all occupations at $45,760 (BLS, 2021).

Total compensation is often in the $150K – $250K range (as of 2022). Investment Banking Analyst Hours: You'll be in the office for 70-85 hours per week, but you won't be working for that entire time. Investment banking hours are long, but there's also significant “downtime.”

This career is often coveted because a successful investment banker can enjoy a high salary, abundant networking opportunities, and the ability to play a highly visible role in company success stories.