Guess Where the Latest Highly-Paid Jobs Are Coming From? Hint: It’s Not Tech

The financial sector comes roaring back, offering big pay packages to its newest employees

Aug 31, 2014 at 10:00AM

While many Millennials face underemployment for the first few years after they graduate from college, there are some occupations in which bright young things with a year or two of experience can expect to earn $85,000 per year.

One of these is technology, of course. Another is the financial sector, where the doldrums induced by the post-crisis recession finally seem to be wearing off.

Flickr / David Paul Ohmer.

Recently, some of the biggest banks, such as Bank of America, Goldman Sachs, JPMorgan Chase & Co., and Morgan Stanley will increase the pay of junior bankers by 20% to 25%, beginning next year. Citigroup is also considering such a move.

How much is 20%?
A raise of 20% is huge for anyone, particularly for employees that have been on the job for only a short time. Using Goldman Sachs as an example, Bloomberg notes that first-year analysts can make anywhere from $70,000 to $90,000, which means that the lowest paid worker will soon be making closer to $85,000.

That raise affects only the employee's paycheck, which means that bonuses are extra. Although not as robust as they were before the financial crisis, many will receive fairly hefty bonus payouts as well, pushing total compensation well into six-figure territory. 

Change is in the air
These compensatory changes come not only as banks begin to regain their own financial footing, but in response to several years of bad press regarding the treatment of its youngest employees.

This spring, big banks began to enforce weekends off for young interns, following a rash of deaths involving overworked newcomers in the previous few months.


Flickr / michaelaston.

Around the same time, Wall Street firms began to realize that the crop of newly minted business school graduates was thinning, making recruiting more difficult. A kinder, gentler financial employment climate was created, where time off and higher pay were two enticements offered to attract the best new talent.

There is good reason to worry: only 31% of Harvard graduates sought jobs on Wall Street over the past couple of years, compared to 47% right before the crisis. As banks licked their wounds in the aftermath, recruiting young talent was put on the back burner. Many Ivy League grads, who would otherwise have flocked to the financial sector, sought work elsewhere.

The new "job of the future"?
Where did those super-achievers go, if not to Wall Street?

Very likely, many went to work for large technology firms. According to the Bureau of Labor Statistics, financial analyst jobs generally require a bachelor's degree with coursework in similar areas as tech: statistics, mathematics, and engineering. This state of affairs has not gone unnoticed by the big banks, and they are working hard to rectify the situation. 

Back in 2012, BLS reported the median pay for a financial analyst as $76,950, with the highest paid bringing home over $148,000 annually, while the lowest-paid made less than $47,000. Even two years ago, growth in this sector was predicted to be faster than average through 2022. 

Moving forward, it's a no-brainer that both pay and job growth are set to escalate. For those with the chops to dive into a career with the fabled firms of Wall Street, the future has never looked brighter.

Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here

Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Goldman Sachs. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information