How much am I worth? Junior economist, international bank

A panel of specialist headhunters give their assessment of typical London pay packages: Junior economist, international bank - salary 45,000-50,000; bonus 10,000-25,000

The historian Thomas Carlyle called economics the 'dismal science'. Somebody less distinguished - noting economists' tendency to equivocate - said the only good ones were one-handed: they could not cover their predictions by saying 'on the other hand".

Incredible though it might seem to those who trust tea-leaves or crystal balls over an economic forecast, banks have always found a use for economists. These days of rising markets, booming deficits and inevitably, increasing interest rates, are no exception, with the traditional route often being recruitment straight from graduate school where all that theory can be put to immediate practical use.

Sitting the economist alongside traders is preferred to keeping them in a separate room, away from the action. It also prepares them for that inevitable day when they will have to market their research both within the firm and outside it, to add value to their employer's bottom line.

These days, getting into a good organisation is not as straightforward as it was. Being able to talk convincingly about GDP, inflation and unemployment or the fundamentals of a specific country or sector is no longer sufficient; you must have excellent quantitative ability.

Paul Tapp of Longbridge Associates says: 'Banks are asking for higher qualifications these days; typically they want good econometric and statistical skills as well as normal economic ones. Increasingly, PhDs are required.'

Rebecca Lea of Alexander Mann Global Markets says strong oral and written communication skills - not to mention people skills - are vital.

She says: 'There has been an upturn in demand for highly qualified economists, which includes a minimum requirement of a Masters degree in economics, strong quantitative skills and a high level of expertise in building spreadsheet models.'

Lea says pay rates have held up fairly well - for the right people. She reckons a junior economist with three to five years experience will earn on average, a basic salary of 60,000 and a bonus of 20,000 to 40,000; Tapp suggests an entry level economist - at associate level - can expect 35,000-45,000, with a bonus of around 10,000.

Once an employee has moved beyond VP level and has become a senior economist - usually three to four years down the line - they can expect significantly better pay: those with 10 - 15 years experience can command a basic salary of about 100,000 with a bonus of 200,000 to 300,000.

Tapp says: 'The real money comes late - particularly if you go on to the buy-side and have skills that appeal to the management there.'

Headhunters agree that the days of the traditional economist - who purely generates economic research and remains somehow detached from the day to day concerns of the organisation - are numbered; increasingly economists act as strategists and may even be called this rather than economist.

Being adaptable is vital, as is accepting that you may not always be doing the type of research that you want. Many economists move on to work for smaller organisations or hedge funds, finding themselves a niche that pays better - and can offer more security - than a large bank.

So what - aside from luck and good contacts - is the most important thing for sustaining a career as an economist? Tapp says it is having an over-riding enthusiasm for the subject - not hard for a profession which takes itself more seriously than most in the City.

Figures and commentary provided by Alexander Mann Global Markets and Longbridge Associates