Actuaries Quick Facts: Actuaries 2012 Median Pay Entry-Level Education Work Experience in a Related Occupation On-the-job Training

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1 Math Actuaries Quick Facts: Actuaries 2012 Median Pay Entry-Level Education Work Experience in a Related Occupation On-the-job Training $93,680 per year $45.04 per hour None Long-term on-the-job training Number of Jobs, ,300 Job Outlook, % (Much faster than average) Employment Change, ,300 What Actuaries Do Explain their findings and proposals to company executives, government officials, shareholders, and clients Most actuarial work is done with computers. Actuaries use database software to compile information. They use advanced statistics and modeling software to forecast the cost and probability of an event. Actuaries typically work on teams that often include managers and professionals in other fields, such as accounting, underwriting, and finance. For example, some actuaries work with accountants and financial analysts to set the price for security offerings or with market research analysts to forecast demand for new products. With experience, actuaries are often given supervisory roles. They are responsible for delegating tasks and providing advice to senior management. They also may be called on to testify before public agencies on proposed laws that affect their business, such as state laws placing caps on auto insurance prices. Actuaries produce charts, tables, and reports to explain their calculations. Actuaries analyze the financial costs of risk and uncertainty. They use mathematics, statistics, and financial theory to assess the risk that an event will occur and help businesses and clients develop policies that minimize the cost of that risk. Actuaries work is essential to the insurance industry. Duties Actuaries typically do the following: Compile statistical data and other information for further analysis Estimate the probability and likely economic cost of an event such as death, sickness, an accident, or a natural disaster Design, test, and administer insurance policies, investments, pension plans, and other business strategies to minimize risk and maximize profitability Produce charts, tables, and reports that explain calculations and proposals Most actuaries work at insurance companies, where they help design policies and determine the premiums that should be charged for each policy. They must ensure that the premiums are profitable, yet competitive with other insurance companies. Actuaries in the insurance industry typically specialize in a specific field of insurance, such as one of the following: Health insurance actuaries help develop long-term care and health insurance policies by predicting expected costs of providing care under the terms of an insurance contract. Their predictions are based on numerous factors, including family history, geographic location, and occupation. Life insurance actuaries help develop annuity and life insurance policies for individuals and groups by estimating, on the basis of risk factors such as age, gender, and tobacco use, how long someone is expected to live. Property and casualty insurance actuaries help develop insurance policies that insure policyholders against property loss and liability resulting from accidents, natural disasters, fires, and other events. They calculate the expected number of claims resulting from automobile accidents, which varies depending on the insured person s age, sex, driving history, type of car, and other factors. Some actuaries apply their expertise to financial matters outside of the insurance industry. For example, they develop investment strategies that manage risks and maximize returns for companies or individuals. Some

2 actuaries help companies develop broad policies and strategies that assess risks across all areas of business, a practice known as enterprise risk management. Pension and retirement benefits actuaries design, test, and evaluate company pension plans to determine if the expected funds available in the future will be enough to ensure payment of future benefits. They must report the results of their evaluations to the federal government. Pension actuaries also help businesses develop other types of retirement plans, such as 401(k)s, and healthcare plans for retirees. In addition, they provide retirement planning advice to individuals. Some people with an actuarial science background may become postsecondary teachers. Work Environment Actuaries held about 24,300 jobs in Actuaries typically work in an office setting. However, actuaries who work for consulting firms may need to travel frequently to meet with clients. Actuaries typically work on teams that often include managers and professionals in other fields, such as accounting, underwriting, and finance. The industries that employed the most actuaries in 2012 were as follows: Insurance carriers and related activities 69% Professional, scientific, and technical services 17 Management of companies and enterprises 6 Funds, trusts, and other financial vehicles 3 Government 3 Some actuaries are considered consultants and provide advice to clients on a contract basis. Many consulting actuaries audit the work of internal actuaries at insurance companies or handle actuarial duties for insurance companies that are not large enough to keep their own actuaries on staff. Other consulting actuaries work for employee benefits firms. These firms design, analyze, and manage employee benefit programs such as employersponsored healthcare and retirement plans for companies. Work Schedules Most actuaries worked full time, and about 3 out of 10 worked more than 40 hours per week in How to Become an Actuary Actuaries need a bachelor s, typically in mathematics, actuarial science, statistics, or other analytical field. Students must complete coursework in economics, applied statistics, and corporate finance, and pass a series of exams to become certified professionals. Education Actuaries must have a strong background in mathematics, statistics, and business. Typically, an actuary has an undergraduate in mathematics, actuarial science, statistics, or other analytical field. Coursework in calculus and business, such as accounting and management, is essential for students as well. To become certified professionals, students must complete coursework in economics, applied statistics, and corporate finance. Students should also take classes outside of mathematics and business to prepare them for a career as an actuary. Coursework in computer science, especially programming languages, and the ability to use and develop spreadsheets, databases, and statistical analysis tools, are valuable. Classes in writing and public speaking will improve students ability to communicate in the business world. Many students gain experience through internships. In some cases, employers offer their interns permanent jobs after they graduate. Many employers expect students to have passed at least one of the initial actuary exams needed for professional certification (as described in the certification section) before graduation. Certifications Two professional societies the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA) sponsor programs leading to full professional status. The CAS and SOA offer two levels of certification: associate and fellowship. The CAS certifies actuaries who work in the property and casualty field, which includes automobile, homeowners, medical malpractice, and workers compensation insurance. The SOA certifies actuaries who work in life insurance, health insurance, retirement benefits, investments, and finance. Most actuaries in the United States are certified by the SOA. The main requirement for associate certification in each society is the successful completion of exams. The SOA requires that candidates pass five exams for associate (ASA) certification. The CAS requires that candidates pass seven exams for associate (ACAS) certification. In addition, both CAS and SOA require that candidates take seminars on professionalism. Both societies have mandatory e-learning courses for candidates. It typically takes 4 to 6 years for an actuary to get an ACAS or an ASA certification because each exam requires hundreds of hours of study and months of preparation. After becoming associates, actuaries typically take another 2 to 3 years to earn fellowship status. The SOA offers fellowship certification in five separate tracks: life and annuities, group and health benefits, retirement benefits, investments, and finance/enterprise risk management. Unlike the SOA, the CAS does not offer specialized study tracks for fellowship certification. Both the CAS and the SOA have continuing education requirements. Most actuaries meet this requirement by attending training seminars that are sponsored by their employers or the societies. Training Most entry-level actuaries start out as trainees. They are typically on teams with more experienced actuaries who serve as mentors. At first, they perform basic tasks such as compiling data, but as they gain more experience, they may conduct research and write reports. Beginning actuaries may spend time working in other departments, such as marketing, underwriting, and product development, to learn all aspects of the company s work and how actuarial work applies to them. Most employers support their actuaries throughout the certification process. For example, employers typically pay the cost of exams and study materials. Many firms provide paid time to study and encourage their employees to set up study groups. Employees usually receive raises or bonuses for each exam that they pass.

3 Licenses Pension actuaries must be enrolled by the U.S. Department of Labor and U.S. Department of the Treasury s Joint Board for the Enrollment of Actuaries. Applicants must meet certain experience requirements and pass two exams administered through the SOA to qualify for enrollment. Advancement The median annual wage for actuaries was $93,680 in May The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $55,780, and the top 10 percent earned more than $175,330. Most actuaries worked full time, and about 3 out of 10 worked more than 40 hours per week in Job Outlook Advancement depends largely on job performance and the number of actuarial exams passed. For example, actuaries who achieve fellowship status often supervise the work of other actuaries and provide advice to senior management. Actuaries with a broad knowledge of risk management and how it applies to business can rise to executive positions in their companies, such as chief risk officer or chief financial officer. Important Qualities Analytical skills. Actuaries use analytical skills to identify patterns and trends in complex sets of data to determine the factors that have an effect on certain types of events. Communication skills. Actuaries must be able to explain complex technical matters to those without an actuarial background. They must also communicate clearly through the reports and memos that describe their work and recommendations. Computer skills. Actuaries must know programming languages and be able to use and develop spreadsheets, databases, and statistical analysis tools. Interpersonal skills. Actuaries serve as leaders and members of teams, so they must be able to listen to other people s opinions and suggestions before reaching a conclusion. Math skills. Actuaries quantify risk by using the principles of calculus, statistics, and probability. Problem-solving skills. Actuaries identify risks and develop ways for businesses to manage those risks. Pay Actuaries Median annual wages, May 2012 Actuaries $93,680 Computer and mathematical occupations $76,270 Total, all occupations $34,750 Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics Actuaries Percent change in employment, projected Actuaries 26% Computer and mathematical occupations 18% Total, all occupations 11% Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections program Employment of actuaries is projected to grow 26 percent from 2012 to 2022, much faster than the average for all occupations. However, because it is a small occupation, the fast growth will result in only about 6,300 new jobs over the 10-year period. Actuaries will be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks. In the health insurance industry, more actuaries will be needed to evaluate the effects that new healthcare laws, such as changes in coverage and expansion of customer pools, pose to insurance companies and to develop new products in response. Changes in healthcare laws will also boost demand for consulting actuaries who evaluate healthcare plans for companies. More actuaries will be needed in property and casualty insurance to evaluate the risks to properties and communities vulnerable to more frequent and powerful storms. These actuaries will be needed not only to predict the likelihood of such storms, but also to calculate the costs of insuring these properties and help insurance companies create specialized policies and products. More actuaries will also be needed to help companies manage their own risk, a practice known as enterprise risk management. Actuaries will help companies avoid, manage, and respond to any potential financial risks across all areas of their business operations. This analysis helps companies adjust their business or investment strategies to achieve economic returns and respond to new financial regulations and requirements. Job Prospects Actuaries should expect strong competition for jobs. Actuaries make up a small occupation, and the relatively high pay and comfortable working conditions make being an actuary a desirable career. Students who have passed at least two actuarial exams and have had an internship while in college should have the best job prospects for entry-level positions.

4 Employment projections data for Actuaries, Change, Occupational Title SOC Code Employment, 2012 Projected Employment, 2022 Percent Numeric Actuaries ,300 30, ,300 SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program Similar Occupations This table shows a list of occupations with job duties that are similar to those of actuaries. OCCUPATION JOB DUTIES ENTRY- LEVEL EDUCATION 2012 MEDIAN PAY Accountants and Auditors Accountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants and auditors assess financial operations and work to help ensure that organizations run efficiently. $63,550 Budget Analysts Budget analysts help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending. $69,280 Cost Estimators Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to manufacture a product, construct a building, or provide a service. They generally specialize in a particular industry or type of product. $58,860 Economists Economists study the production and distribution of resources, goods, and services by collecting and analyzing data, researching trends, and evaluating economic issues. $91,860 Financial Analysts Financial analysts provide guidance to businesses and individuals making investment decisions. They assess the performance of stocks, bonds, and other types of investments. $76,950 Insurance Underwriters Insurance underwriters decide whether to provide insurance and under what terms. They evaluate insurance applications and determine coverage amounts and premiums. $62,870 Mathematicians Mathematicians use advanced mathematics to develop and understand mathematical principles, analyze data, and solve real-world problems. $101,360 Personal Financial Advisors Personal financial advisors give financial advice to people. They help with investments, taxes, and insurance decisions. $67,520 Postsecondary Teachers Postsecondary teachers instruct students in a wide variety of academic and vocational subjects beyond the high school level. They also conduct research and publish scholarly papers and books. See How to Become One $68,970 Statisticians Statisticians use statistical methods to collect and analyze data and help solve real-world problems in business, engineering, the sciences, or other fields. $75,560 Contacts for More Information For more information about actuaries, visit American Academy of Actuaries For more information about actuaries in property and casualty insurance, visit Casualty Actuarial Society For more information about actuaries in life and health insurance, retirement benefits, investments, and finance/enterprise risk management, visit

5 Society of Actuaries For more information about how to become an actuary, visit Be an Actuary For more information about pension actuaries, visit American Society of Pension Professionals and Actuaries O*NET Actuaries Mathematicians Quick Facts: Mathematicians 2012 Median Pay Entry-Level Education Work Experience in a Related Occupation On-the-job Training $101,360 per year $48.73 per hour None None Number of Jobs, ,500 Job Outlook, % (Much faster than average) Employment Change, What Mathematicians Do Interpret data and report conclusions from their analyses Use data analysis to support and improve business decisions Read professional journals, talk with other mathematicians, and attend professional conferences to maintain knowledge of current trends The following are examples of types of mathematicians: Applied mathematicians use theories and techniques, such as mathematical modeling, to solve practical problems. These mathematicians typically work with individuals in other occupations to solve these problems. For example, they may work with chemists and materials scientists and chemical engineers to analyze the effectiveness of new drugs. Other applied mathematicians may work with industrial designers to study the aerodynamic characteristics of new automobiles. Mathematicians work with formulas to help solve problems in industry, academia, and government. Mathematicians use advanced mathematics to develop and understand mathematical principles, analyze data, and solve real-world problems. Duties Mathematicians typically do the following: Expand knowledge in mathematical areas, such as algebra or geometry, by developing new rules, theories, and concepts Use mathematical formulas and models to prove or disprove theories Apply mathematical theories and techniques to solve practical problems in business, engineering, the sciences, or other fields Develop mathematical or statistical models to analyze data Theoretical mathematicians do research to identify unexplained issues in mathematics and resolve them. They are primarily concerned with exploring new areas and relationships of mathematical theories to increase knowledge and understanding about the field. Although some may not consider the practical use of their findings, the knowledge they develop can be an important part of many scientific and engineering achievements. Despite the differences, these areas of mathematics frequently overlap. Many mathematicians will use both applied and theoretical knowledge in their job duties. However, most people with a in mathematics or who develop mathematical theories and models are not formally known as mathematicians. Instead, they work in related fields and professions. In the computer systems design and related services industries, they may be known as computer programmers or systems analysts. In finance, they may be known as quantitative analysts, financial analysts, or statisticians. Computer and information research scientists, physicists and astronomers, economists, actuaries, operations research analysts, and many other occupations also use mathematics extensively. Some people with a mathematics background become middle school or high school math teachers.

6 Many people with a Ph.D. in mathematics, particularly theoretical mathematics, work as postsecondary teachers in education institutions. They usually have a mix of teaching and research responsibilities. Some may do individual research or collaborate with other professors or mathematicians. Collaborators may work together at the same institution or from different locations. Work Environment Mathematicians held about 3,500 jobs in Most mathematicians work for the federal government or for private scientific and engineering research and development companies. The industries that employed the most mathematicians in 2012 were as follows: Federal government 30% Scientific research and development services 20 Educational services; state, local, and private 18 Management of companies and enterprises 7 Manufacturing 3 Mathematicians typically work in comfortable offices. They also may work on teams with engineers, scientists, and other professionals. Work Schedules Most mathematicians work full time. Deadlines and last-minute requests for data or analysis may require overtime. In addition, mathematicians may have to travel to attend seminars and conferences. How to Become a Mathematician Mathematicians typically need a master s in mathematics. However, there are some positions available for those with a bachelor's. Education In private industry, mathematicians typically need an advanced, either a master s or a doctorate. For jobs with the federal government, candidates need at least a bachelor s in mathematics or significant coursework in mathematics. Most colleges and universities offer a bachelor s in mathematics. Courses usually include calculus, differential equations, and linear and abstract algebra. Many colleges and universities advise or require mathematics students to take courses in a related field, such as computer science, engineering, physics, or statistics. Candidates who have a double major in mathematics and a related discipline are particularly desirable to many employers. Many universities offer master s and doctoral s in theoretical or applied mathematics. Many students who get a doctoral work as professors of mathematics in a college or university, rather than work in government or private industry. Also, holders of bachelor s s who meet state certification requirements may become middle or high school mathematics teachers. Students who are interested in becoming mathematicians should take as many math courses as possible in high school. Important Qualities Analytical skills. Mathematicians use mathematical techniques and models to analyze large amounts of data. They must be precise and accurate in their analysis. Communication skills. Mathematicians must interact with and propose solutions to people who may not have extensive knowledge of mathematics. Math skills. Mathematicians use statistics, calculus, and linear algebra to develop their models and analyses. Problem-solving skills. Mathematicians must devise new solutions to problems encountered by scientists or engineers. Pay Mathematicians Median annual wages, May 2012 Mathematicians $101,360 Mathematical science occupations $76,270 Total, all occupations $34,750 Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics The median annual wage for mathematicians was $101,360 in May The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $56,040, and the top 10 percent earned more than $152,950. In May 2012, the median annual wages for mathematicians in the top five industries in which these mathematicians worked were as follows: Scientific research and development services $118,030 Manufacturing 116,860 Federal government 106,360 Management of companies and enterprises 74,980 Educational services; state, local, and private 66,590 Most mathematicians work full time. Deadlines and last-minute requests for data or analysis may require overtime. In addition, mathematicians may have to travel to attend seminars and conferences. Job Outlook Mathematicians Percent change in employment, projected Mathematical science occupations 26% Mathematicians 23%

7 Total, all occupations 11% Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections program Employment of mathematicians is projected to grow 23 percent from 2012 to 2022, much faster than the average for all occupations. However, because it is a small occupation, the fast growth will result in only about 800 new jobs over the 10-year period. The amount of digitally stored data will increase over the next decade as more people and companies conduct business online and use social media, smartphones, and other mobile devices. As a result, businesses will increasingly need mathematicians to analyze the large amount of information and data collected. Analyses will help companies improve their business processes, design and develop new products, and even advertise products to potential customers. Mathematicians will also be needed to help information security analysts create data-security systems to protect the confidentiality and personal information of individuals. Job Prospects Because the occupation is small and there are relatively few mathematician positions, strong competition for jobs is expected. Despite the strong competition for mathematician positions, many candidates with a background in advanced mathematical techniques and modeling will find positions in other closely related fields. Those with a graduate in math, very strong quantitative and data analysis skills, and a background in a related discipline, such as business, computer science, or statistics, should have the best job prospects. Computer programming skills are also important to many employers. Employment projections data for Mathematicians, Change, Occupational Title SOC Code Employment, 2012 Projected Employment, 2022 Percent Numeric Mathematicians ,500 4, SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program Similar Occupations This table shows a list of occupations with job duties that are similar to those of mathematicians. OCCUPATION JOB DUTIES ENTRY- LEVEL EDUCATION 2012 MEDIAN PAY Actuaries Actuaries analyze the financial costs of risk and uncertainty. They use mathematics, statistics, and financial theory to assess the risk that an event will occur and they help businesses and clients develop policies that minimize the cost of that risk. Actuaries work is essential to the insurance industry. $93,680 Computer Programmers Computer programmers write code to create software programs. They turn the program designs created by software developers and engineers into instructions that a computer can follow. $74,280 Computer Systems Analysts Computer systems analysts study an organization s current computer systems and procedures and design information systems solutions to help the organization operate more efficiently and effectively. They bring business and information technology (IT) together by understanding the needs and limitations of both. $79,680 Database Administrators Database administrators (DBAs) use specialized software to store and organize data, such as financial information and customer shipping records. They make sure that data are available to users and are secure from unauthorized access. $77,080 Financial Analysts Financial analysts provide guidance to businesses and individuals making investment decisions. They assess the performance of stocks, bonds, and other types of investments. $76,950 Market Research Analysts Market research analysts study market conditions to examine potential sales of a product or service. They help companies understand what products people want, who will buy them, and at what price. $60,300

8 OCCUPATION JOB DUTIES ENTRY- LEVEL EDUCATION 2012 MEDIAN PAY Nuclear Engineers Nuclear engineers research and develop the processes, instruments, and systems used to derive benefits from nuclear energy and radiation. Many of these engineers find industrial and medical uses for radioactive materials for example, in equipment used in medical diagnosis and treatment. $104,270 Operations Research Analysts Operations research analysts use advanced mathematical and analytical methods to help organizations investigate complex issues, identify and solve problems, and make better decisions. $72,100 Physicists and Astronomers Physicists and astronomers study the ways in which various forms of matter and energy interact. Theoretical physicists and astronomers may study the nature of time or the origin of the universe. Physicists and astronomers in applied fields may develop new military technologies or new sources of energy, or monitor space debris that could endanger satellites. Doctoral or professional $106,360 Postsecondary Teachers Postsecondary teachers instruct students in a wide variety of academic and vocational subjects beyond the high school level. They also conduct research and publish scholarly papers and books. See How to Become One $68,970 Statisticians Statisticians use statistical methods to collect and analyze data and help solve real-world problems in business, engineering, the sciences, or other fields. $75,560 Survey Researchers Survey researchers design surveys and analyze data. Surveys are used to collect factual data, such as employment and salary information, or to ask questions in order to understand people s opinions, preferences, beliefs, or desires. $45,050 Contacts for More Information For more information about mathematicians, including training, especially for doctoral-level employment, visit American Mathematical Society For specific information on careers in applied mathematics, visit Society for Industrial and Applied Mathematics For information on job openings as a mathematician with the federal government, visit Office of Personnel Management O*NET Mathematicians

9 Operations Research Analysts Quick Facts: Operations Research Analysts 2012 Median Pay Entry-Level Education Work Experience in a Related Occupation On-the-job Training $72,100 per year $34.66 per hour None None Number of Jobs, ,200 Job Outlook, % (Much faster than average) Employment Change, ,500 What Operations Research Analysts Do Advise managers and other decision makers on the impacts of various courses of action to take in order to address a problem Write memos, reports, and other documents, outlining their findings and recommendations for managers, executives, and other officials Operations research analysts are involved in all aspects of an organization. They help managers decide how to allocate resources, develop production schedules, manage the supply chain, and set prices. For example, they may help decide how to organize products in supermarkets or help companies figure out the most effective way to ship and distribute products. Analysts must first identify and understand the problem to be solved or the processes to be improved. Analysts typically collect relevant data from the field and interview clients or managers involved in the business processes. Analysts show the implications of pursuing different actions and may assist in achieving a consensus on how to proceed. Operations research analysts advise managers and other decision makers on the appropriate course of action to solve a problem. Operations research analysts use advanced mathematical and analytical methods to help organizations solve problems and make better decisions. Duties Operations research analysts typically do the following: Identify and define business problems, such as those in production, logistics, or sales Collect and organize information from a variety of sources, such as computer databases Gather input from workers involved in all aspects of the problem or from others who have specialized knowledge, so that they can help solve the problem Examine information to figure out what is relevant to the problem and what methods should be used to analyze it Use statistical analysis or simulations to analyze information and develop practical solutions to business problems Operations research analysts use sophisticated computer software, such as databases and statistical programs, and modeling packages, to analyze and solve problems. Analysts break down problems into their various parts and analyze the effect that different changes and circumstances would have on each of these parts. For example, to help an airline schedule flights and decide what to charge for tickets, analysts may take into account the cities that have to be connected, the amount of fuel required to fly those routes, the expected number of passengers, pilots schedules, maintenance costs, and fuel prices. There is no one way to solve a problem, and analysts must weigh the costs and benefits of alternative solutions or approaches in their recommendations to managers. Because problems are complex and often require expertise from many disciplines, most analysts work on teams. Once a manager reaches a final decision, these teams may work with others in the organization to ensure that the plan is successful. Work Environment Operations research analysts held about 73,200 jobs in The industries that employed the most operations research analysts in 2012 were as follows: Finance and insurance 25% Computer systems design and related services 10 Manufacturing 8

10 State and local government, excluding education and hospitals 8 Management of companies and enterprises 8 Most operations research analysts in the federal government work for the Department of Defense, which also employs a large number of analysts through private consulting firms. Operations research analysts spend most of their time in offices. Many also spend some time in the field, gathering information and analyzing processes through direct observation. Analysts may travel to work with clients and company executives and to attend conferences. Because problems are complex and often require expertise from many disciplines, most analysts work on teams. Once a manager reaches a final decision, these teams may work with others in the organization to ensure that the plan is successful. Because they work on projects that are of immediate interest to top managers, operations research analysts often are under pressure to meet deadlines. Work Schedules Almost all operations research analysts work full time. About 1 in 5 worked more than 40 hours per week in How to Become an Operations Research Analyst Applicants need a master s for most operations research positions, but a bachelor s is enough for many entry-level positions. Since few schools offer bachelor s and advanced programs in operations research, analysts typically have s in other related fields. Education Although some employers prefer to hire applicants with a master s, many entry-level positions are available for those with a bachelor s. Although some schools offer bachelor s and advanced programs in operations research, many analysts typically have s in other technical or quantitative fields, such as engineering, computer science, mathematics, or physics. Because operations research is based on quantitative analysis, students need extensive coursework in mathematics. Courses include statistics, calculus, and linear algebra. Coursework in computer science is important because analysts rely on advanced statistical and database software to analyze and model data. Courses in other areas, such as engineering, economics, and political science, are useful because operations research is a multidisciplinary field with a wide variety of applications. Continuing education is important for operations research analysts. Keeping up with advances in technology, software tools, and improved analytical methods is vital. Other Experience Many operations research analysts who work with the military are veterans of the U.S. Armed Forces. Important Qualities Analytical skills. Operations research analysts use a wide range of methods, such as forecasting, data mining, and statistical analysis, to examine and interpret data. Communication skills. Operations research analysts need to be able to gather information, which includes interviewing people and listening carefully to the answers. They also need to communicate technical information to people who do not have a technical background. Critical-thinking skills. Operations research analysts must be able to figure out what information is relevant to their work. They also must be able to evaluate the costs and benefits of alternative solutions before making a recommendation. Ingenuity. Solutions to operations problems are not usually obvious, and analysts need to be able to think creatively to solve problems. Interpersonal skills. Operations research analysts typically work on teams. They also need to be able to convince managers and top executives to accept their recommendations. Math skills. The models and methods used by operations research analysts are rooted in statistics, calculus, linear algebra, and other advanced mathematical disciplines. Problem-solving skills. Operations research analysts need to be able to diagnose problems on the basis of information given to them by others. They then analyze relevant information to solve the problems. Writing skills. Operations research analysts write memos, reports, and other documents outlining their findings and recommendations for managers, executives, and other officials. Pay Operations Research Analysts Median annual wages, May 2012 Computer and mathematical occupations $76,270 Operations research analysts $72,100 Total, all occupations $34,750 Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics The median annual wage for operations research analysts was $72,100 in May The median wage is the wage at which half of the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $40,550, and the top 10 percent earned more than $129,490. In May 2012, the median annual wages for operations research analysts in the top five industries in which these analysts worked were as follows: Manufacturing $79,630 Computer systems design and related services 74,490

11 Management of companies and enterprises 72,630 Finance and insurance 67,480 State and local government, excluding education and hospitals 56,670 Almost all operations research analysts work full time. About 1 in 5 worked more than 40 hours per week in Job Outlook Operations Research Analysts Percent change in employment, projected Operations research analysts 27% Computer and mathematical occupations 18% Total, all occupations 11% Employment of operations research analysts is projected to grow 27 percent from 2012 to 2022, much faster than the average for all occupations. As technology advances and companies seek efficiency and cost savings, demand for operations research analysis should continue to grow. Operations research analysts will continue to be needed to provide support for the Armed Forces and to assist in the development and implementation of policies and programs in other areas of government. Technological advances have made it faster and easier for organizations to get data. In addition, improvements in analytical software have made operations research more affordable and more applicable to a wider range of areas. More companies are expected to use operations research analysts to help them turn data into valuable information that managers can use in order to make better decisions in all aspects of their business. For example, operations research analysts will be needed to help businesses improve their manufacturing operations and logistics. Job Prospects Opportunities should be better for those who have a master s or Ph.D. in operations research, management science, or a related field. Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections program Employment projections data for Operations Research Analysts, Change, Occupational Title SOC Code Employment, 2012 Projected Employment, 2022 Percent Numeric Operations research analysts ,200 92, ,500 SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program Similar Occupations This table shows a list of occupations with job duties that are similar to those of operations research analysts. OCCUPATION JOB DUTIES ENTRY- LEVEL EDUCATION 2012 MEDIAN PAY Economists Economists study the production and distribution of resources, goods, and services by collecting and analyzing data, researching trends, and evaluating economic issues. $91,860 Industrial Engineers Industrial engineers find ways to eliminate wastefulness in production processes. They devise efficient ways to use workers, machines, materials, information, and energy to make a product or provide a service. $78,860 Logisticians Logisticians analyze and coordinate an organization s supply chain the system that moves a product from supplier to consumer. They manage the entire life cycle of a product, which includes how a product is acquired, distributed, allocated, and delivered. $72,780 Management Analysts Management analysts, often called management consultants, propose ways to improve an organization's efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues. $78,600

12 OCCUPATION JOB DUTIES ENTRY- LEVEL EDUCATION 2012 MEDIAN PAY Market Research Analysts Market research analysts study market conditions to examine potential sales of a product or service. They help companies understand what products people want, who will buy them, and at what price. $60,300 Mathematicians Mathematicians use advanced mathematics to develop and understand mathematical principles, analyze data, and solve real-world problems. $101,360 Software Developers Software developers are the creative minds behind computer programs. Some develop the applications that allow people to do specific tasks on a computer or other device. Others develop the underlying systems that run the devices or control networks. $93,350 Statisticians Statisticians use statistical methods to collect and analyze data and help solve real-world problems in business, engineering, the sciences, or other fields. $75,560 Contacts for More Information For more information about operations research analysts, visit Institute for Operations Research and the Management Sciences Military Operations Research Society O*NET Operations Research Analysts Statisticians Quick Facts: Statisticians 2012 Median Pay Entry-Level Education Work Experience in a Related Occupation On-the-job Training $75,560 per year $36.33 per hour None None Number of Jobs, ,600 Job Outlook, % (Much faster than average) Employment Change, ,400 What Statisticians Do Statisticians must develop techniques to overcome problems in data collection and analysis. Statisticians use statistical methods to collect and analyze data and help solve real-world problems in business, engineering, the sciences, or other fields. Duties Statisticians typically do the following: Apply statistical theories and methods to solve practical problems in business, engineering, the sciences, or other fields Decide what data are needed to answer specific questions or problems Determine methods for finding or collecting data Design surveys or experiments or opinion polls to collect data Collect data or train others to do so

13 Analyze and interpret data Report conclusions from their analyses Statisticians design surveys, questionnaires, experiments, and opinion polls to collect the data they need. They may also write instructions for other workers on how to collect and arrange the data. Surveys may be mailed, conducted over the phone, collected online, or gathered through some other means. Some surveys, such as the U.S. census, include data from nearly everyone. For most surveys and opinion polls, however, statisticians use sampling to collect data from some people in a particular group. Statisticians determine the type and size of the sample to be surveyed or polled. Statisticians use computers with specialized statistical software to analyze data. In their analyses, statisticians identify trends and relationships within the data. They also conduct tests to find out the data s reliability and validity. Some statisticians may help create new statistical software packages to analyze data more accurately and efficiently. Statisticians present the findings from their analyses and discuss the data s limitations to prevent inaccurate conclusions from being drawn. They may present written reports, tables, charts, and graphs to other team members and to clients. Statisticians also recommend how to improve the design of future surveys or experiments. Statisticians work in many fields, such as education, marketing, psychology, sports, or any other field that requires collection and analysis of data. In particular, government, healthcare, and research and development companies employ many statisticians. Government. Nearly every agency in the federal government employs statisticians. These workers develop advanced statistical models for several purposes, such as filling in gaps from nonresponses to surveys. Some statisticians hired by the federal government are known as mathematical statisticians. Some government statisticians develop and analyze surveys that measure unemployment, wages, or other estimates of jobs and workers. Other statisticians help to figure out the average level of pesticides in drinking water, the number of endangered species living in a particular area, or the number of people who have a certain disease. At national defense agencies, statisticians use computer programs to test the likely outcomes of different defense strategies. Healthcare. Statisticians known as biostatisticians or biometricians work in pharmaceutical companies, public health agencies, or hospitals. They may design studies to test whether drugs successfully treat diseases or conditions. They may also work for hospitals or public health agencies to help identify the sources of outbreaks of illnesses in humans and animals. Research and development. Statisticians design experiments for product testing and development. For instance, they may help design experiments to see how car engines perform when exposed to extreme weather conditions. Statisticians may also help develop marketing strategies and prices for consumer goods. Some people with a in statistics or who collect and analyze statistical data, however, may not be formally known as statisticians. Instead, they may work in related fields and professions. In some industries, for example, they may be known as quantitative analysts, financial analysts, data analysts, or data scientists. Work Environment Statisticians held about 27,600 jobs in About a quarter of statisticians worked for government, mostly at the federal level. The industries that employed the most statisticians in 2012 were as follows: Federal government 17% Finance and insurance 12 Educational services; state, local, and private 11 State and local government, excluding education and hospitals 9 Health care and social assistance 8 Federal statisticians are commonly employed at the Census Bureau, the Bureau of Economic Analysis, the National Agricultural Statistics Service, or the Bureau of Labor Statistics. Statisticians who work for private businesses often work in teams with other professionals. For example, in pharmaceutical companies, statisticians may work with scientists to test drugs for government approval. In insurance companies, they may work with actuaries to calculate the risks of insuring different events. Statisticians may travel occasionally to meet with team members, set up surveys and research projects, or oversee the collection of data. Work Schedules Statisticians typically work full time. How to Become a Statistician Statisticians typically need a master's in statistics, mathematics, or survey methodology. However, a bachelor's is sufficient for some entry-level jobs. Research and academic jobs generally require a Ph.D. Education Many colleges and universities offer undergraduate and graduate programs in statistics. A bachelor s in statistics is not needed to enter a graduate program. However, significant coursework in statistics or mathematics is essential. Required subjects for a bachelor s in statistics include differential and integral calculus, statistical methods, mathematical modeling, and probability theory. Many colleges and universities advise or require students to take courses in a related field, such as computer science, engineering, physics, or mathematics. Candidates with experience in a related discipline are particularly desirable to many employers. For example, training in engineering or physical science is useful for statisticians working in manufacturing on quality or productivity improvement. A background in biology, chemistry, or health sciences is useful for work testing pharmaceutical or agricultural products. Because statisticians use and write computer programs for many calculations, a strong background in computer science is also helpful. Advancement Opportunities for promotion are greater for people with master's s or Ph.D.s. Statisticians with a master's or a Ph.D. usually can design their own work. They may develop new statistical methods or become independent consultants.