The Labor Market for STEM Skills Jonathan T. Rothwell, PhD Fellow - - PowerPoint PPT Presentation
The Labor Market for STEM Skills Jonathan T. Rothwell, PhD Fellow Brookings Institution UNLV September 10, 2014 Why does STEM matter? 1. Enhanced global, national, and regional consumer welfare via enhanced innovation and entrepreneurship
Jonathan T. Rothwell, PhD Fellow Brookings Institution UNLV September 10, 2014
Conventional View:
standard
degree or higher
worker knowledge
degree or higher
wages and cognitive skill
Major Occupational Categories Sorted by STEM Score, with Share of Jobs that are STEM, 2011 High-STEM, Percentage of Jobs Architecture and engineering 100% Life, physical, and social science 87% Healthcare practitioner and technical 76% Computer and mathematical science 100% Installation, maintenance, and repair 53% Management 27% Construction and extraction 40% Education, training, and library 9% Business and financial operations 42% Farming, fishing, and forestry 8% Production 23% Arts, design, entertainment, sports, and media 16% Sales and related 0% Legal 0% Source: The Hidden STEM Economy (Brookings Institution, 2013)
Supply
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 1950 1960 1970 1980 1990 2000 2012
Wage Premium for STEM Skills, Controlling for Experience, Education, and Sex, 1950-2012
Standard Deviation in Occupational STEM Skill
Analysis of data from Census Bureau via Integrated Public Use Microdata Series and O*NET. For methods, see Jonathan Rothwell, “Hidden STEM Economy,” (Brookings Institution, 2012).
0.94 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Earnings index, 2000=1
Growth in real median earnings by occupation, 2000-2013 (Source: BLS Current Population Survey)
architects and engineers computer and math scientists healthcare practitioners all occupation
$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Average salaries of software developers compared to all
(Source: Analysis of Current Population Survey, via IPUMS)
Software Developers All workers
4.6% 6.0% 10.2% 14.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
Growth rate in employment by occupation, 2009- 2013
USA labor force architects and engineers healthcare practitioner computer and math workers
From 2009-2013, 3 out of every 10 jobs created on net have been in computer and healthcare practitioner occupations
Source: BLS CPS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Apr 2004 Oct 2004 Apr 2005 Oct 2005 Apr 2006 Oct 2006 Apr 2007 Oct 2007 Apr 2008 Oct 2008 Apr 2009 Oct 2009 Apr 2010 Oct 2010 Apr 2011 Oct 2011 Apr 2012 Oct 2012 Apr 2013 Oct 2013 Apr 2014
U.S. Hiring Difficulty Index, 3-month average Source: Brookings analysis of JOLTS data, 2004-2014
JOLTS Hiring Difficulty Index, 3-month average
Index = job openings last month per hire this month
5 10 15 20 25 30 35 40 45 50
Percent of small businesses reporting few or no qualified applicants, 2009 to May 2014
Source: William C. Dunkelbery and Holly Wade, "NFIB Small Business Economic Trends," (NFIB Research Foundation, June 2014).
4.3 3.1 2.5 1.5 1.1 1.0 0.9 0.7 0.6 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.2 0.2 0.2 0.1 0.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Computer and mathematical science Healthcare practitioners and technical Architecture and engineering Community and social services Business and financial operations Installation, maintenance, and repair Management Life, physical, and social science Sales and related Arts, design, entertainment, sports, and media USA Office and administrative support Healthcare support Education, training, and library Legal Transportation and material moving Food preparation and serving related Protective service Production Building and grounds cleaning and… Personal care and service Construction and extraction Farming, fishing, and forestry
Openings per unemployed worker, April 2014
(Source: Conference Board, HWOL)
25 21 18 12 8 5 14 11 13 5 6 2 5 10 15 20 25 30
Median duration of job advertisements posted in 2013-Q1 in days by STEM skill and minimum education required
STEM Non-STEM
Median Duration All STEM: 11 days All Non-STEM: 5 days
Source: “Still Searching: Job Vacancies and STEM Skills” (Brookings)
18 15 13 13 11 8 8 7 7 5 5 4 3 2 1 1 1 1 1 1 1 1
Median duration of 2013-Q1 vacancy advertisement by occupation
(Source: Brookings analysis of Burning Glass)
STEM vacancies are the hardest to fill
50,000 100,000 150,000 200,000 250,000
The Computer Skills Most Commonly Requested by Employers by number of advertised vacancies in 2013
(Source: Brookings analysis of Burning Glass)
Percentage of Advertised Vacancies in STEM Occupations for metro areas with at least 50,000 vacancies, 2013
(Source: Brookings analysis of Burning Glass)
7.4 8.5 13.7 14.3 2 4 6 8 10 12 14 16
High unemployment (>10%) Moderately high unemployment (<=10%, >=5%) Moderately low (<5%, >=3%) Low unemployment (<3%)
Average occupational hiring difficulty by regional unemployment rate
(Source: Brookings analysis of Burning Glass and 2012 Census microdata via IPUMS)
Median duration of opening (days) for occupational group
2,000 4,000 6,000 8,000 10,000 12,000 Web Developers Sales Managers Financial Managers, Branch or Department First-Lie Supervisors of Offie ad Adiistrative… Network and Computer Systems Administrators Informatics Nurse Specialists First-Line Supervisors of Retail Sales Workers Office Clerks, General Computer User Support Specialists Information Technology Project Managers Medical and Health Services Managers Maintenance and Repair Workers, General Software Developers, Applications Auditors Retail Salespersons Bookkeeping, Accounting, and Auditing Clerks Patient Representatives Sales Represetatives, Wholesale ad Maufaturig,… Registered Nurses Seretaries ad Adiistrative Assistats, Exept Legal,…
Of Nevada's 20 Most Common Occupations with Vacancies Advertised in 2013, 9 are STEM jobs
Share of total openings typically requiring ahelor’s degree or higher in STEM
versus STEM degree attainment for population 25 and older (2012), Las Vegas MSA,
Source: Brookings analysis of 2013Q4 Burning Glass data, O*NET, and 2012 American Community Survey
In Nevada’s professional level STEM economy, relatively low demand is met with even lower supply
16.9% 24.4% 6.2% 8.6% Nevada USA Vacancies requiring bachelor's degree and STEM STEM bachelor's degree attainment rate Demand Supply
STEM jobs in Nevada pay higher salaries at high and low levels of education
Wages of STEM and non-STEM jobs by educational requirements of
Nevada, 2013
Source: Brookings analysis of Bureau of Labor Statistics OES data and O*NET
$83,925 $57,923 $56,584 $32,743 Bachelor's or higher Sub-bachelor's level STEM Non-STEM
4.0% 6.3% 6.5% 9.5% Bachelor's degree or higher Some college or associate's degree STEM occupation Non-STEM
2012 Unemployment Rate in Nevada by STEM status
Level of Education
(Source: Analysis of 2012 American Community Survey via IPUMS and O*NET)
5 10 15 20 25 Healthcare support Personal care and service Arts, design, entertainment, sports, and media Production Office and administrative support Protective service Building and grounds cleaning and maintenance Transportation and material moving Construction and extraction Legal Food preparation and serving related Installation, maintenance, and repair Business and financial operations Farming, fishing, and forestry Community and social services Healthcare practitioner and technical Sales and related Management Computer and mathematical science Architecture and engineering Education, training, and library Life, physical, and social science
Median duration of vacancies in Las Vegas for major occupations, 2013-Q1
(Source: Brookings analysis of Burning Glass data, 2013-Q1
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Healthcare Practitioners and… Architecture and Engineering Life, Physical, and Social Science Management Building and Grounds Cleaning and… Business and Financial Operations Installation, Maintenance, and Repair Legal Computer and Mathematical Sales and Related Food Preparation and Serving… Office and Administrative Support Arts, Design, Entertainment,… Production Transportation and Material Moving Construction and Extraction Nevada USA
Computer workers have relatively high unemployment in NV, but other STEM professionals have the lowest unemployment rates in the state
2012 Unemployment by Occupation in Nevada vs the United States
Source: 2012 American Community Survey via IPUMS
0% 4% 4% 5% 8% 10% 24% 0% 5% 10% 15% 20% 25% 30%
Network and Computer Systems Administrators Software Developers, Applications and Systems Software Web Developers Computer Occupations, All Other Computer Scientists and Systems Analysts Computer Support Specialists Computer Programmers
Unemployment Rates of Computer Occupations in Nevada with at Least 1000 Workers in 2012
(Source: 2012 American Community Survey via IPUMS)
Mean advertisement duration in days of average skill requested in computer occupations advertised in 100 metropolitan areas with most vacancies, 2013
(Source: Brookings analysis of Burning Glass data)
Las Vegas, 39.8 San Jose, 44.2 Boulder CO, 41.4
Computer jobs advertised in Las Vegas require easier-to-find skills than those advertised in most metropolitan areas
Honolulu, 38.1
Science Technologies; 105; 0% Engineering technologies; 19,138; 2% Agriculture Science; 5,355; 1% Engineering; 74,423; 7% Computer sciences; 39,927; 4% Math; 16,515; 2% Biology; 39,047; 4% Physical Sciences; 20,155; 2% Health Professions; 64,399; 6%
Non-STEM; 724,468; 72% 1987: Majors by field for STEM and non-STEM (Source: NSF)
2012: Majors by field for STEM and non-STEM (Source: NSF)
Science Technologies; 568; 0% Engineering technologies; 16,040; 1% Agriculture Science; 16,365; 1% Engineering; 82,197; 5% Computer sciences; 41,745; 2% Math; 18,838; 1% Biology; 96,912; 6% Physical Sciences; 26,347; 1% Health Professions; 152,734; 9%
Non-STEM; 1,288,267; 74%
Engaging young women in STEM can help narrow the STEM gap in Nevada
Female share of ahelor’s degree holders by STEM field, ages 18 to 30, Nevada, 2010-2012
Source: Brookings analysis of 2010-2012 American Community Survey via IPUMS
21% 31% 56% 65% 80% Engineering Computer and Information Sciences Mathematics and Statistics Biology and Life Sciences Medical and Health Sciences and Services
8% 32% 18% 19% 13% 30% 9% 4% 8% 2% 0% 6% 33% 14% 10% 16% 0% 15% 45% 47% 64% 57% 87% 46%
Population share Computer and Information Sciences Engineering Biology and Life Sciences Mathematics and Statistics Medical and Health Sciences and Services
white latino black asian
STEM ahelor’s degree attainment by field versus population share, by race/ethnicity, 18-30 year-olds, Nevada, 2010- 2012
Source: Brookings analysis of 2010-2012 American Community Survey via IPUMS
Closing the STEM opportunity gap will also require elevating STEM completion rates for under-represented young populations, especially African Americans and Latinos
premiums for STEM degree holders don’t make parents and teachers better at teaching STEM subjects or children more committed to learning them
and skill, suggesting inadequate K-12 prep and higher-ed resources
pursuing a STEM degree
1) Enrich infant/toddler home life 2) Improve pre-K to 10th grade quality across the board 3) Allow students to take post-secondary level classes during last two years of high school 4) Lower cost of college and adopt best practices in retention and completion in higher-education 5) Expand access to adult training & improve curriculum alignment with demand
1) Non-profits; state & local governments 2) Non-profits; state & local governments 3) Non-profits; state & local governments 4) Governments, non-profits and Higher Ed via innovation, tuition support, tutoring, and mentoring 5) Governments; Colleges; Businesses via philanthropic investments, apprenticeships, internships, and on- the-job training
Email: Jonathan Rothwell jrothwell@brookings.edu Visit: www.brookings.edu/metro Hidden STEM Economy http://www.brookings.edu/research/reports/2013/06/10-stem-economy- rothwell Still Searching : Job Vacancies and STEM Skills http://www.brookings.edu/research/interactives/2014/job-vacancies-and- stem-skills#/M10420
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