The number of jobs in investment banking is growing by a million in 2017, according to the American Council of Trustees and Alumni.
The investment banking workforce is also expanding, with more than 5,000 jobs opening in the industry in the first quarter of 2018.
Investment banks, which operate independently of investment banks, typically take on investment-related jobs, such as managing clients’ portfolios and advising investors.
While the role of investment banking in the economy is relatively new, the rise in the number of positions at investment banks suggests that the industry is still growing and that the number and complexity of the jobs in the sector are not decreasing.
A report released Thursday by the Institute for Supply Management (ISM) shows that the average salary for an investment banker in the U.S. in 2018 was $117,000, which is up 10 percent from $92,400 in 2017.
The median annual salary for a full-time investment banker was $107,600.
Investment banking also is becoming more profitable, with the average investment bank’s total revenue and profits in 2018 increasing by more than 7 percent from the previous year.
An investment bank, like any other company, requires employees to be highly trained, knowledgeable and efficient, and these characteristics are essential to success in the investment banking industry, said Michael A. Bivens, a partner at Bivenson, Peacock & Co. who oversees investment banking at BKP Financial Services in Minneapolis.
“Investment bankers are very skilled and very productive,” Bivensen said.
Bivens said that the growing demand for investment banking jobs is likely due to the economic downturn.
There has been a surge in demand for the industry as more firms look for ways to save on salaries.
With the job market improving, there has been an uptick in interest in the field, with some banks seeing an increase in applications, Bivans said.
“Investors want to know whether the job will be a good fit for them,” Biverts said.
“They want to be sure that their investments are being made in a way that provides them with the expected returns.”