Recruiting Electrical and Electronics Engineers in Canada, the United States, the United Kingdom and Ireland
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1 Recruiting Electrical and Electronics Engineers in Canada, the United States, the United Kingdom and Ireland Demand for Electrical and Electronics Engineers in Calgary Electrical and electronics engineers have been identified as a high-demand occupation in Calgary, based on the Calgary Labour Demand Forecast In 2010, there were almost 2,900 electrical and electronics engineers in the Calgary labour force. Between 2010 and 2020, demand for these workers is expected to increase by just over 3 per cent annually, resulting in demand for an additional 1,000 electrical and electronics engineers by Employers will likely face difficulties recruiting qualified workers for both newly-created jobs and existing positions that become vacant. During the global economic slowdown of , nearly three quarters (74 per cent) of electrical and electronics engineering employers in Calgary recruited for electrical and electronics engineers and nearly a third (28 per cent) of those recruiting reported experiencing hiring difficulties. 2 The combination of growing demand and limited supply are likely to result in shortages of electrical engineers in Calgary over the next decade. In order to meet high demand for engineers, Calgary employers may need to access labour markets outside of Calgary, including international labour markets, to meet a portion of their hiring needs. To facilitate targeted recruiting efforts, Calgary Economic Development (CED) has created this guide to identify the best cities and regions for recruiting workers in Canada, the United States, the United Kingdom and Ireland. Top cities and regions for recruiting are recommended based on the size of the electronic labour force and the likelihood that workers will migrate out of the area. 3 Top Locations for Recruiting in Canada Canada s three largest cities, Toronto, Montreal and Vancouver, have the largest labour force of electrical and electronics engineers with 8,800 workers, 6,100 workers and 3,400 workers, respectively. Ottawa ranks fourth with about 2,500 workers. Immigrants and past interprovincial migrants have a higher probability of making an inter-provincial move in the future and between 2001 and 2006, Toronto had the highest percentage of immigrant electrical engineers of any of the top-recommended cities in Canada, at 14 per cent, followed by 1 See Calgary Labour Demand Forecast See Alberta Wage and Salary Survey An out-migration probability index of workers is estimated based on a set of factors that are indicators of future migration. Factors include historical migration patterns, demographics of the occupational labour force, local economic conditions, median income, and the presence of foreign workers in the labour force. 1
2 Vancouver (12 per cent). About 16 per cent of electrical and electronics engineers in Toronto and Vancouver have made an inter-provincial move. in these large cities could experience a significant increase in earnings when relocating to Calgary, where wages are about 25 per cent higher. 4 The Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA), Halifax, and Québec City, are all mid-sized markets with over 800 electrical and electronics engineers. The Kitchener-Cambridge-Waterloo CMA may be an attractive location for Calgary employers to recruit if changes at the region s largest high tech employer, RIM, lead to future layoffs of electrical and electronics engineers. Average hourly pay for electrical and electronic engineers in the Kitchener-Cambridge-Waterloo CMA was $32.42 in 2010, which is 25 per cent lower than that of Calgary at $43.42 in Demographics of the labour force are also favourable toward out-migration. Younger workers, foreign workers, immigrants, and previous inter-provincial migrants all have a higher-than-average probability of making an inter-provincial move in the future. Half of electrical and electronics engineers in the CMA are under age 35 and 11 per cent are past inter-provincial migrants or immigrants. Electrical and electronics engineers in Halifax have a relatively high out-migration probability index score at 104 (Average = 100 for all workers in all cities in Canada). in Halifax could experience a significant increase in income by relocating to Calgary and about a third of the electrical and electronics labour force is under age 35. St. John s NL has the highest out-migration probability index score at 108, but it is one of the smallest markets with about 300 electrical and electronics engineers. Tables 1 and 2 present additional information on the top-recommended cities for recruiting in Canada. 4 Toronto, Vancouver and Ottawa all have average wages that are lower than that of Calgary. Data is unavailable on Montreal. 2
3 Table 1 Recruiting Indicators for Electrical and Electronics Engineers in Canada, by CMA Rank Census Metro Area Employment (2010) 5 Average Wage Per Hour Emigration Probability Index* Under Age 35 (2010) Percent of Occupational Labour Force International or Non- Immigrants Inter-Provincial Permanent to Canada Migrants Residents (5 Year Period) (2006) 1 Toronto 8, % 16% 14% 1% 2 Montréal 6,100 n.a % 7% 7% 1% 3 Vancouver 3, % 16% 12% 1% 4 Ottawa 2, % 9% 6% 1% 5 Edmonton 1, % 17% 6% 0% 6 Halifax % 10% 3% 2% 7 Québec 883 n.a % 2% 2% 2% 8 Kitchener- Cambridge- Waterloo % 11% 11% 0% 9 St. John's, NL 321 n.a % 0% 0% 0% 10 Hamilton % 15% 13% 3% Calgary 2, % 23% 13% 2% *See footnote 3 for additional information about the Emigration Probability Index. Note: Data is measured for Census Metropolitan Areas unless otherwise noted. Figures for Calgary may differ from information presented earlier in this report describing labour demand for the Calgary Economic Region. Sources: Labour Force Survey, 2006 Census of Canada, RDA Global, Labour Market Information - HRSDC WorkingInCanada.gc.ca Table 2 Wages for Electrical and Electronics Engineers in Canada, by CMA Census Metro Area Provincial Wages or Salary, Recent Wage Range (CAD) Average Reference Low Wage High Wage Average Wage Year Toronto * 78,407 83,639 Montréal n.a. n.a. n.a. 80,007 80,452 Vancouver * 74,714 84,909 Ottawa ,407 83,639 Edmonton ,383 87,094 Halifax ,342 70,269 Québec n.a. n.a. n.a. 80,007 80,452 Kitchener-Cambridge- Waterloo ,407 83,639 St. John's, NL n.a. n.a. n.a. 77,348 79,179 Hamilton ,407 83,639 Calgary ,631 93,182 Note: Data is measured for Census Metropolitan Areas unless otherwise noted. *Wage data reflects provincial average. Sources: 2006 Census, Labour Market Information - HRSDC WorkingInCanada.gc.ca 5 Figures for employment in Calgary are for the Calgary Economic Region. Figures for other cities are for the census metropolitan area (CMA) 6 International and inter-provincial migration statistics are analyzed based on data collected in the 2001 and 2006 Census. The data required to analyze this migration pattern for the most recent 5 year period is not available at the time of this analysis. 7 Calgary median annual salary is calculated based on average hours worked per week and median hourly wage rate reported in the 2009 Alberta Wage and Salary Survey. The average annual salary is the actual figure from the survey. figures for other cities in Table 2 are from HRSDC. 3
4 Top Locations for Recruiting in the United States In the United States, there are two occupations that are closely aligned with NOC 2133 Electrical and Electronics Engineers. They are: SOC : Electrical Engineers, and SOC : Electronics Engineers, except Computer. Of the top ten cities recommended for recruiting, Los Angeles and San Jose have the largest number of electrical and electronics engineers, with nearly 15,000 and 12,000 workers, respectively. The demographics of workers and economic conditions in these cities are favourable toward out-migration. Non-US citizens have a higher-than-average probability of making a long-distance move and they comprise 28 per cent of the labour force in San Jose, and 14 per cent in L.A. About a quarter of workers in each city are under age 35 and unemployment is above 9 per cent in both cities which may push some families and workers to seek work elsewhere. Chicago also has high unemployment (9.6 per cent) and a younger-than-average labour force of nearly 7,000 electrical and electronics engineers. Although Chicago has a relatively low outmigration probability index score 8 (111) compared to other top recommended cities, the score is still relatively high compared to all workers in all occupations in the US (The US average = 100 for all places/occupations). Electronics engineers in Chicago have the lowest average salary of top recommended US cities at USD $86,658. The average base salary paid by Calgary employers was CAD $93,182 in and Denver, Houston and Dallas all have median annual salaries that are lower than average base salary in Calgary. See Table 4 for additional wage information in the top recommended cities. Dallas-Fort Worth and Houston both have younger workers in the labour force with above average out-migration probability index scores, but unemployment is below the US average in both cities, so workers may not experience economic push factors pressuring them to look elsewhere for employment. 8 An out-migration probability index of workers is estimated based on a set of factors that are indicators of future migration. Factors include historical migration patterns, demographics of the occupational labour force, local economic conditions, median income, and the presence of foreign workers in the labour force. The out-migration probability index in the US is based on analysis of data from the American Community Survey (ACS) which is the largest survey of workers in the United States and measures characteristics of workers as well as their migration history. 9 See Bureau of Labor Statistics Occupational Employment Database and Alberta Wage and Salary Survey
5 Table 3 Out-Migration Indicators of Electronic Engineers in Top 10 US Cities, 2010 Rank Metro Area Number of Pct. of who are Non- US Citizens Age Pct. Of Under Age 35 Out- Migration Probability Index* Unemployment Rate 1 Los Angeles-Long Beach, CA 14,690 14% 46 23% San Jose, CA 11,920 28% 43 26% Dallas-Fort Worth, TX 10,440 13% 44 23% Boston, MA-NH 11,580 10% 45 23% Phoenix, AZ 6,920 11% 45 22% Washington, DC/MD/VA 9,380 8% 47 21% Seattle-Everett, WA 6,230 12% 46 19% Chicago, IL 6,970 8% 44 23% Denver-Boulder, CO 5,000 3% 45 19% Houston-Brazoria, TX 4,720 14% 45 25% United States 282,430 9% 45 23% *The Out-Migration Probability Index gives an indication of the number of workers in the target occupation in each metropolitan area that have made an interregional move in the past 5 years. The index also reflects factors that may affect worker migration, such as historical migration patterns, demographics of the occupational labour force, local economic conditions, median income, and the presence of foreign workers in the labour force. US Average Out-Migration Probability = 100 (for all US workers in all occupations). Table 4 Wages of Electronic Engineers in Top Ranked Cities for Recruiting in the United States, 2010 Metropolitan Statistical Area Hourly Wage** (USD) Salary** (USD) Lower 10% Salary by Quartile (USD) Lower 25% Los Angeles-Long Beach, CA 14, ,321 58,087 72,024 92, , ,120 San Jose, CA 11, ,668 68,855 86, , , ,660 Dallas-Fort Worth, TX 10, ,511 56,565 70,803 89, , ,934 Boston, MA-NH 11, ,126 65,071 80, , , ,523 Phoenix, AZ 6, ,069 62,372 76,526 94, , ,249 Washington, DC/MD/VA 9, ,041 62,042 78, , , ,923 Seattle-Everett, WA 6, ,955 64,790 75,377 90, , ,525 Chicago, IL 6, ,658 51,587 67,350 85, , ,922 Denver-Boulder, CO 5, ,765 55,246 68,074 85, , ,938 Houston-Brazoria, TX 4, ,571 60,669 69,899 85, , ,045 United States 282, ,117 55,843 68,991 87, , ,672 Calgary (in $ CAD) 2,897 $43.42 $93,182 n.a. **Source for Calgary wage and salary figures is the 2009 Alberta Wage and Salary Survey. Results are updated every 2 years. At the time of this analysis 2011 figures were not yet published. US Data Sources: Bureau of Labour Statistics Occupational Employment Database, American Community Survey, US Census Analysis by RDA Global. Upper 25% Upper 10% 5
6 Top Locations for Recruiting in the United Kingdom and Ireland In the United Kingdom and Ireland, the occupations most closely related to electrical and electronics engineers are: UK/IE SOCs 2123 Electrical Engineers, and 2124 Electronics Engineers. In 2010, there were approximately 76,000 electronics engineers in the UK labour force and approximately 6,900 electronics engineers in the Irish Labour Force. Average annual income for electronics engineers in the UK was about 45,000 in 2010 (approximately CAD $72,000), which is lower than the mean annual base pay in Calgary at about CAD $93,200. Official survey data on wages of electronics engineers in Ireland is not available from government sources. Income figures presented in Table 6 come from Irish-based global professional recruitment consultancy, Morgan McKinley s 2011 Salary Guide for Irish occupations. 10 According to the salary guide, electronics engineers in Ireland are paid between 32,000 and 64,000 per year (approximately CAD $44,000 to $87,000). In the UK, the top regions for recruiting are in the South East Region (which includes Greater London, Brighton, Oxford, Portsmouth, and Southampton), the West Midlands Region (including Birmingham and Coventry) and the South West Region (including Bristol, Bournemouth, and Plymouth). These three regions combined are home to about a third of the UK electrical and electronics engineering labour force. The highest level of historical out-migration is from London, but the labour force is smaller in London (at about 2,000 workers) than in the South East Region where the level of out-migration is slightly lower. London and Scotland are the two regions with the highest percentage of non- British citizens in the labour force (19 per cent and 17 per cent, respectively). Foreign workers represent a growing share of people migrating out of the UK; as of 2010, non-british citizens represented 65 per cent of long-term migrants leaving the UK, up from 43 per cent in There are about 6,900 electronics engineers in Ireland and these workers have a high outmigration probability index score (115) relative to the average for all workers in Ireland (average = 100). Table 5 contains information on the size and characteristics of the UK labour force for electronics engineers. Regional data is not available on the labour force in Ireland but a 10 The Salary Guide is available online at: 11 Source: United Kingdom International Passenger Survey (IPS); Estimates of long-term international migration, rolling annual data to Q
7 national recruiting strategy focused in the cities of Dublin or Cork can be effective, due to the small geographic size of the country. Foreign Credential Recognition When recruiting electrical or electronic engineers in the UK and Ireland, Alberta employers are advised to consult The Association of Professional Engineers, Geologists, and Geophysicists of Alberta (APEGGA) to determine which workers are most likely to meet the requirements for licensure in Alberta. Information on foreign credential recognition for engineers in the UK and Ireland is available from the Alberta Department of Human Services at: 7
8 Table 5 Recruiting Indicators for Electronic Engineers - UK and Ireland, 2010 Rank Region/ Country 1 South East 2 West Midlands 3 South West 4 Scotland 5 Yorkshire & Humberside 6 Eastern 7 East Midlands 8 North West Major Cities Brighton, Oxford, Portsmouth, Southampton Birmingham, Coventry Bristol, Bournemouth, Plymouth Glasgow, Edinburgh, Aberdeen Leeds, Sheffield, Bradford, Wakefield, Hull Greater London, Cambridge, Norwich, Peterborough, Ipswich Nottingham-Derby, Leicester, Northampton Manchester, Liverpool, Preston, Blackpool Number of Percentage of who are Non- National Citizens Percentage of who are Non-EU Citizens Age* Pct. Of Under Age 35 Out- Migration Probability Index** Income 2010 (GBP) Income 2010 (CAD) Income 2010 (GBP) Income 2010 (CAD) 9,000 6% 2% 43 18% ,241 $76,745 48,249 $76,757 9,000 12% 6% 46 24% ,945 65,138 43,458 69,136 7,000 9% 3% 48 16% ,617 66,207 44,068 70,107 9,000 17% 6% 42 29% ,864 87,282 50,002 79,546 7,000 2% 0% 40 27% ,738 79,127 5,000 9% 4% 43 21% ,810 71,286 46,302 73,661 9,000 3% 0% 47 13% ,965 63,579 43,768 69,629 5,000 3% 3% 43 20% ,119 74,960 47,763 75,985 9 Wales Cardiff, Swansea 7,000 10% 0% 45 17% ,107 68, London Greater London 2,000 19% 10% % ,871 57,066 39,063 62,144 Total UK 76,000 9% 3% 44 20% ,373 $70,591 45,253 $71,992 Total Ireland 6,900 5% n.a % 115 See Table 6 Calgary 2,897 n.a. 26% n.a. $93,182 *British data source reports median age figures, while Irish and US data sources report mean age figures. ** Out-Migration index scores for the UK are not directly comparable with those of cities in the US or Ireland. Sources: Quarterly British Labour Force Survey, Survey of Hours and Earnings (UK, 2010), Central Statistics Office Ireland (2010), Analysis by RDA Global. 8
9 Table 6 Salary Range of Electrical Engineers in Ireland, 2011 Location, Range Euro Ireland 2011 $ CAD Calgary 2009 Regions, Low 32,000 $ 44,000 $93,182 Dublin, High 64,000 $ 87,000 Sources: Morgan McKinley s 2011 Salary Guide: Alberta Wage and Salary Survey, Calgary Economic Region. Average month-end 2010 annual exchange rate: 1=$ CAD. 9
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