Consulting

The effects of the COVID-19 pandemic on the private and public sectors dampened the employment outlook in the short term. But regardless of the state of the American economy or economies in other countries, consultants were still needed to help businesses and other organizations get back on their feet after the epidemic ebbed, as well as help clients with all types of non-epidemic-related issues. The introduction of the COVID-19 vaccination in late 2020 and increased distribution in 2021 helped stabilize the economy and help many industries, including the consulting industry, rebound. Some specialties within the consulting industry will fare best in post-pandemic times. According to a survey by McKinsey & Company, respondents indicated they would be hiring more technology and automation professionals, due to the growth of digitization in businesses since the pandemic. There may also be more immediate growth for health and safety consultants and related roles.

The consulting industry is expected to experience strong employment growth during the next decade. The U.S. Department of Labor (DOL) notes that the professional and business services industry (which includes consulting firms) is the largest major industry. It employs nearly 15 percent of the total economy (excluding the self-employed), and the industry is expected to add more than 1.5 million new jobs by 2031. Plunkett Research Ltd. reports that “in nearly all business sectors, consultancies that focus on projects that clearly reduce business costs and enhance operating profits in a reasonably short period of time will find a ripe corporate market (such as consultants who focus on cash flow enhancement, supply chain efficiency, and manufacturing efficiency).”

According to a report by ResearchAndMarkets.com, the global management consulting services industry is projected to grow from $904.73 billion in 2021 to more than $1.16 trillion in 2026, at an annual growth rate of 5.2 percent. By 2031, the industry will exceed $1.43 trillion in value. “Going forward, faster economic growth, digital consulting to drive growth, increasing investments in smart cities, increasing focus on customer satisfaction, and global collaboration for environmental protection will drive market growth,” according to ResearchAndMarkets.com. “Factors that could hinder the growth of the management consulting services market in the future include rising costs and decreasing margins, struggling to crack big technological players, and geo-political tensions.” The strategy advisory segment of the management consulting industry is expected to be its fastest-growing segment.

Major factors that are encouraging employment growth for consultants include increased government funding of major infrastructure projects (such as high-speed trains, highway and bridge construction, and the necessary repair of existing roads, bridges, etc.), health care reform (including the digitization of health records), and advances in technology [such as nanotechnology, biotechnology, renewable energy, Internet of Things, artificial intelligence (including machine learning), and data analytics software].

Growth in other industry sectors can also translate into opportunities for consultants. The DOL predicts that the following industries are expected to add the most new jobs through 2031:

1. leisure and hospitality
2. health care and social assistance
3. mining
4. educational services
5. other services
6. transportation and warehousing
7. information
8. professional and business services
9. financial activities
10. construction

On the other hand, there will be fewer consulting jobs in manufacturing, which has suffered major job losses in recent years. Employment for consultants who provide services to governments at the local, state, and federal levels will also slow as a result of declining tax revenues and shrinking government budgets. “This has been particularly hard on some consulting firms, since governmental agencies are prime clients for consultancies,” according to Plunkett Research, Ltd. Top consultants will still find many opportunities with government employers, since the sector is so large.

Employment for management consultants—one of the largest specialties in the field—is expected to increase much faster than the average (or 11 percent) than the average (5 percent) for all occupations from 2021 to 2031. Companies in many industries are expected to rely more and more on the expertise of these professionals to improve and streamline the performance of their organizations. Many job openings will result from the need to replace workers who transfer to other fields or leave the labor force. The DOL predicts that “growth will be particularly strong in smaller consulting companies that specialize in specific industries or types of business function, such as information technology or human resources. Government agencies also are expected to seek the services of management analysts as they look for ways to reduce spending and improve efficiency.”

While strong overall, the employment outlook for management consultants varies by industry. Employment growth is expected to be especially strong for management consultants in the following industries:

• insurance and employee benefit funds: +66.7 percent
• funds, trusts, and other financial vehicles: +44.9 percent
• performing arts companies: +35.8 percent
• services for the elderly and persons with disabilities: +34.7 percent
• solar electric power generation: +34.4 percent
• civic and social organizations: +34.4 percent
• support activities for mining: +33.3 percent
• performing arts, spectator sports, and related industries: +31.2 percent
• traveler accommodation: +31.0 percent
• educational support services; local: +30.5 percent

Employment is expected to decline in these industries:

• apparel manufacturing: -36.9 percent
• nuclear electric power generation: -34.2 percent
• fossil fuel electric power generation: -33.4 percent
• newspaper publishers: -28.9 percent
• printing and related support activities: -23.5 percent
• broadcasting (except Internet): -13.6 percent
• machinery manufacturing: -9.9 percent
• pharmacies and drug stores: -8.3 percent
• utilities: -2.8 percent

Experienced management consultants with strong track records in their specialty earn high salaries—a median of $95,290 in May 2022, according to the DOL, much higher than the median salary ($46,300) for all careers. Plunkett Research, Ltd. reports that top consultants at firms such as the Boston Consulting Group bill clients as much as $5,000 daily, plus expenses. Associates at top firms bill clients $1,500 a day. High earning potential attracts many people to consulting and makes for a competitive job market. The DOL advises that job opportunities will be best for “those who have a graduate degree or a certification, specialized expertise, fluency in a foreign language, or a talent for sales and public relations.”

Information technology consulting is growing as technology permeates nearly every aspect of business, and the use of social media, mobile computing, cloud computing and data storage, IT security, AI, and online employee collaboration expands. More companies (especially IT-dependent companies such as Amazon and Netflix) realize that technology is not just a subsector of their infrastructure, but a business strategy issue. Companies will need consultants to help them analyze and use this data to improve their businesses. Additionally, the DOL reports that “businesses will seek out consulting firms to help them attain a high level of cybersecurity and make sure their IT systems are efficient and up to date.”

The DOL predicts growth of 13.6 percent employment for computer systems analysts in management, scientific, and technical consulting services through 2031. Many analysts who are employed in this industry work as consultants, helping companies reorganize their IT departments, transition to cloud computing, integrate AI into existing products (or develop new AI-enabled products), or tackle other IT-related problems. Forrester Research Inc. reports that the information security consulting market is “growing explosively because security and risk professionals often lack the skill and bandwidth to accomplish their increasingly difficult mission.” Significant players—and major providers of jobs in this subspecialty—include EY, Deloitte, IBM, Accenture, PwC, and KPMG.

Employment in human resources consulting also looks bright after several years of slow growth. “Consultants who assist firms in lowering employee benefits costs are in high demand,” according to Plunkett Research Ltd., “as are those who specialize in change management, employee retention and employee productivity enhancement." Globally, the human resources consulting sector is expected to expand at a compound annual growth rate of 12.8 percent from 2022 to 2030, according to Grand View Research. The countries that are expected to drive the annual growth rate are the United States, Canada, Japan, China, and Europe.

Environmental consultants will be in demand by many industries, but especially by the construction, renewable energy, natural gas and other fossil fuel, and waste management industries. Consultants with knowledge of energy efficiency and carbon emissions will have the best job opportunities. More than 158,370 people were employed in the environmental consulting industry in 2022, according to IBISWorld. In 2022, the sector’s 65,388 businesses generated revenue of $25 billion—up from 57,610 businesses and $16 billion in 2019.