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

FAQs

What is the job outlook for investment banking? ›

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. Compared to all industries, this is a faster-than-average growth and means that the job outlook for investment brokers' services is encouraging.

Investment Banking's Future: A Market Outlook

Growing Demand for Sustainable Solutions: As ESG considerations become paramount, the demand for sustainable investment products and services will continue to rise. Investment banks that can cater to this demand will be well-positioned for success.

The lucrative and fast-paced career of an investment banker is a highly competitive one. For instance, in a recent year, 236,000 applicants competed for roughly 3,500 internships at Goldman Sachs. This is common across the industry where acceptance rates for programs are typically less than 2%.

A career in investment banking or private equity can be incredibly rewarding , both financially and intellectually . These industries offer the opportunity to work on high - profile deals and make a significant impact on the global economy .

Revenues at investment banks are down 50%+ year over year as rising interest rates and slowing economic conditions have put a complete pause on most M&A activity around the world. It's crazy how an industry can go from having an insanely good record year like in 2021 to layoffs just one year later.

The intense competition, constant deadlines, aggressive atmosphere, high-stress environment and lack of work-life balance have been linked to mental health issues and burnout among financial services employees, with many considering leaving their jobs due to the impact on their well-being.

On the back of expectations for a recovery in M&A and ECM activity and more DCM deals, IB firms have started responding positively and expect modest growth in 2024. We expect an increase in restructuring activity, especially in sectors such as commercial real estate, technology and consumer.

Goldman Sachs, JP Morgan, Bank of America: They're global, prestigious, diverse, and influential. And they boast long histories, household names, high-profile clients, and acclaimed alumni too. They underwrite the biggest offerings and boast all the resources and advantages.

1. Goldman Sachs is the highest paying bank overall - $398k in combined salaries and bonuses, on average. Goldman Sachs, which paid average salaries of $200k and average bonuses of $199k for 2023, was the highest paying bank we polled.

Can you become a millionaire as an investment banker? It is possible to become a millionaire as an investment banker, but it is not easy. Investment bankers typically earn salaries in the $200,000 to $700,000 range, with bonuses that can bring their total income up to several million dollars per year.

Does investment banking have a good future? ›

The Investment Banking Global Market Report 2022 predicts a compound annual growth rate of 11.9% in 2022 and 10.4% in 2026, indicating a significant expansion in the global investment banking sector. The projected growth in the number is astounding.

That said, investment banking is a highly competitive field. Because the pay is so high and the job is so prestigious, particularly in cities such as New York, applicants far outnumber job openings every year.

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. In January, Charles Schwab Corp.'s Chief Financial Officer Christopher Dodds announced plans to quit in May, at age 47, to pursue greater “work-life balance.”

Generally, you can expect broader roles available for consultants vs. more specialized with higher pay roles available for bankers. Consulting is a great stepping stone into industry, and most former consultants move into strategy or operational roles at corporations ranging from startups to large firms.

The U.S. Bureau of Labor Statistics (BLS) projects that securities, commodities and financial services sales careers—which include investment bankers—will grow by 7% from 2022 to 2032. This projected growth is faster than the 3% growth projected for all occupations nationwide.

The demand for coveted positions in investment banks consistently exceeds the available supply, making it a highly selective field. Statistics indicate that acceptance rates for top investment banks, such as JP Morgan and Goldman Sachs, typically range between a mere 3% to 5%.

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.