Information Technology Labor Market Profile for the Cedar Valley Region A Skills Ready Report from

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1 Information Technology Labor Market Profile for the A Skills Ready Report from P.O. Box West Des Moines, Iowa

2 - Information Technology Labor Market Page 1 Labor Market The is an 8-couty region in central Iowa. The counties in this region include: Black Hawk Bremer Buchanan Chickasaw Clayton Fayette Grundy Tama Included in this region is the Waterloo - Cedar Falls Metropolitan Statistical Area (MSA). The total Labor Market is estimated to be 369,358 workers. The Labor Market is defined as the working age population in the as well as neighboring counties that have significant commutation to work in the Cedar Valley Region. The commutation data was obtained from the U.S. Census Bureau. The majority of the Labor Market information was obtained from Economic Modeling Specialists Intl. (EMSI), a leader in economic database development and economic modeling. EMSI s primary source of employment and wage data is the U.S. Bureau of Labor Statistics, and this data is for the second quarter of Information for this report was also obtained from ACT and Smart Solutions Group. Employment in the Labor Market grew by 7.4% from 2003 to 2013 (see Exhibit 1), which is slightly above the employment growth for the State of Iowa (7.3%) over the same period but below the growth of the U.S. (9.2%). Employment 400, , , , , ,000 Exhibit 1: Employment Growth Greater Cedar Valley Labor Market Industry Sector Employment The largest Industry Sector in the Labor Market is Manufacturing, which includes over 13% of the Labor Market s employment. Government is the second largest sector in the Labor Market followed closely by Retail Trade and Health Care & Social Assistance (see Exhibit 2 leading clusters). Exhibit 2: Industry Sector Employment Industry Cluster Jobs % Manufacturing 52, % Government 47, % Retail Trade 43, % Health Care & Social Assistance 42, % Accommodation & Food Services 22, % Finance & Insurance 22, % Construction 21, % Other Services 20, % Agriculture 18, % Administrative & Support Services 17, % Transportation & Warehousing 16, % Professional, Scientific, & Tech Services 13, % Median Earnings per Worker in the is nearly $7,000 below the median earnings for the national workforce ($44,594 in the Region compared to $51,502 in the nation). The has identified four target clusters: Information Technology Advanced Manufacturing Biotechnology/Biosciences Logistics Information Technology Cluster The Information Technology cluster consists of 15 industries: Electronic Computer Manufacturing Computer Storage Device Manufacturing Computer Terminal Manufacturing Other Computer Peripheral Equipment Manufacturing Magnetic and Optical Recording Media Manufacturing

3 - Information Technology Labor Market Page 2 Software Publishers Data Processing, Hosting, and Related Services Internet Publishing and Broadcasting and Web Search Portals All Other Information Services Custom Computer Programming Services Computer Systems Design Services Computer Facilities Management Services Other Computer Related Services Document Preparation Services Computer and Office Machine Repair and Maintenance In 2013, employment in the Information Technology Cluster is over 10,00 workers or 2.7% of total Labor Market employment, which is the same percentage as the State of Iowa and slightly below the percentage for the nation (1.9%). From 2006 to 2013, Information Technology employment increased by 21.4% in the Cedar Valley Region and by 21.3% in the U.S. while Information Technology employment in the State of Iowa grew by 10.0%. Exhibit 3 shows employment growth in Information Technology for the, Iowa, and the nation since Employment Growth (2013 = 100) Exhibit 3: Information Technology Growth Information Technology Growth State of Iowa United States '06 '07 '08 '09 '10 '11 '12 '13 Custom Computer Programming Services is the largest industry group in the Information Technology cluster accounting for nearly 30% of total cluster employment. Data Processing, Hosting, and Related Services has the second largest employment (22% of the total cluster). The employment for each of the Information Technology industries are shown in Exhibit 4. Exhibit 4: Information Technology Industries NAICS Code Custom Computer Programming Services Data Processing, Hosting, and Related Services Information Technology Industries Employment Annual earnings per worker in Information Technology for the Region is nearly equal to earnings at the state level but is $40,000 less the earnings for this cluster s workers nationwide (see Exhibit 5). Exhibit 5: Information Technology Earnings 1, Computer Systems Design Services 677 Electronic Computer Manufacturing 298 Software Publishers 293 Document Preparation Services 286 Computer Facilities Management Services 134 Other Computer Related Services 129 Computer and Office Machine Repair and Maintenance Internet Publishing and Broadcasting and Web Search Portals State of Iowa United States Information Technlogy Earnings/Worker $64,544 $64,841 $103, From the nearly 800 occupations in the U.S. Department of Labor s Standard Occupational Classification (SOC) system, 20 information technology occupations have been identified. The ten largest information technology occupations in the Labor Market can be seen in Exhibit 6. 88

4 - Information Technology Labor Market Page 3 Exhibit 6: Top 10 IT Occupations Exhibit 7: Earnings per Worker Information Technology Occupation Software Developers, Applications Software Developers, Systems Software Network and Computer Systems Administrators No. of Jobs Median Wage 1,424 $ ,399 $ $29.26 Computer Systems Analysts 816 $32.36 Electrical Engineers 800 $39.41 Computer User Support Specialists 794 $19.53 Computer Programmers 640 $27.21 Computer and Information Systems Managers Computer Network Support Specialists 557 $ $22.05 Data Entry Keyers 414 $14.52 Employment and wage information for all occupations in the Information Technology cluster in the Cedar Valley Region Labor Market can be seen in Appendix A. There is also a comparison of the wages in the Labor Market with the State of Iowa and the United States. In addition, each occupation contains the number of workers in other IT occupations that have the foundational skills that are equal to or greater than the skills required for the occupation. To determine the IT occupations with Compatible Skills, the skills identified through ACT s WorkKeys/National Career Readiness Certificate (NCRC) were used. The number of workers with Compatible Skills provides an indication of the number of workers with experience in information technology that can be trained for another occupation in the cluster with some specific job training. With over 10,000 workers in Information Technology, the offers a large supply of skilled Information Technology workers with a median Earnings per Worker that is $40,000 below the national earnings and slightly below the State median earnings (see Exhibit 7). Education and Training The has excellent educational systems and institutions, and the area has a heritage of a strong work ethic. The Region s high school 4-year graduation rate was 89.6%, which was significantly grater than the national graduation rate and slightly higher than Iowa s graduation rates (see Exhibit 8). Exhibit 8: High School Graduation Rate High School Graduation Rate Greater Cedar Valley State of Iowa United States 74.7% 89.6% 89.4% 0.0%20.0%40.0%60.0%80.0%100.0% Two community colleges in the Labor Market - Hawkeye Community College and Kirkwood Community College - offer associate degree and certificate programs in Information Technology areas. Exhibit 9 shows the number of 2012 graduates by Information Technology program for these institutions.

5 - Information Technology Labor Market Page 4 Exhibit 9: 2012 Community College Completions Hawkeye Community College and Kirkwood Community College IT Programs 2012 Completions Associate Degrees Certificates Total Computer Programming Web Page, Digital/Multimedia & Information Resources Design Computer Systems Networking & Telecommunications Network & System Administration Computer/Information Technology Services Administration & Management Computer & Information Services and Support Services TOTAL COMPLETIONS The following is a list of the four-year colleges and universities in the Labor Market that offer Information Technology programs: University of Northern Iowa Upper Iowa University Kaplan University - Cedar Falls Kaplan University - Cedar Rapids Mount Mercy University Wartburg College Cornell College Coe College This following exhibit shows the information technology and computer science programs were 216 degrees were awarded in Exhibit 10: Year Degrees Information Technology Programs Digital Communication & Media/ Multimedia In addition, Iowa s two largest universities - the University of Iowa and Iowa State University - awarded 239 degrees in information technology/computer science in The Iowa New Jobs Training Program provides employee training to companies that are expanding their existing operation in Iowa or are locating a new operation to the State, with employee training. This training is customized to meet the employer s needs and is available through Iowa s community colleges. This program is financed through bonds issued by the community colleges. Summary offers: 2012 Bachelor Degrees Computer & Information Sciences 34 Information Technology 55 Computer Science 94 Computer Systems Networking & Telecommunications TOTAL COMPLETIONS 216 A highly skilled, affordable Information Technology workforce Excellent K-12 educational systems and postsecondary institutions A job training program that can be customized to meet the specific needs of your business West 4th Street, Suite 310 (319)

6 - Information Technology Labor Market Page 5 Appendix: Information Technology Occupations SOC Code Occupation Cedar Valley Region Labor Market Jobs Cedar Valley Region Labor Market IT Workers with Compatible Skills Median Hourly Wage Region Labor Market State of Iowa United States Labor Market Wage th Percentile 50th Percentile 75th Percentile Management Occupations Computer and Information Systems Managers 557 5,871 $49.92 $48.76 $55.91 $40.86 $49.92 $60.01 Computer and Mathematical Occupations Computer and Information Research Scientists 33 NA $43.96 $43.96 $48.91 $34.16 $43.96 $ Computer Systems Analysts 816 6,428 $32.36 $34.87 $36.57 $26.58 $32.36 $ Information Security Analysts 91 6,337 $31.23 $32.53 $41.36 $25.71 $31.23 $ Computer Programmers 640 7,526 $27.21 $29.18 $33.54 $21.24 $27.21 $ Software Developers, Applications 1,424 1,408 $32.68 $34.53 $42.33 $27.89 $32.68 $ Software Developers, Systems Software 1,399 1,457 $36.88 $38.59 $46.59 $30.97 $36.88 $ Web Developers 331 NA $23.68 $23.34 $24.05 $19.23 $23.68 $ Database Administrators 264 6,164 $30.99 $32.31 $37.15 $22.53 $30.99 $ Network and Computer Systems Administrators 921 5,507 $29.26 $28.96 $34.48 $24.64 $29.26 $ Computer Network Architects 253 4,065 $36.26 $38.53 $42.64 $30.11 $36.26 $ Computer User Support Specialists 794 8,955 $19.53 $19.97 $22.36 $16.89 $19.53 $ Computer Network Support Specialists 433 3,885 $22.05 $22.87 $28.44 $17.58 $22.05 $ Computer Occupations, All Other 282 6,428 $29.70 $28.02 $37.62 $20.47 $29.70 $36.64 Architecture and Engineering Occupations Computer Hardware Engineers 277 6,151 $54.17 $51.29 $47.64 $46.52 $54.17 $ Electrical Engineers 800 3,518 $39.41 $35.61 $42.15 $32.72 $39.41 $48.70 Office and Administrative Support Occupations Computer Operators 141 6,710 $15.94 $16.97 $19.88 $13.21 $15.94 $ Data Entry Keyers 414 9,335 $14.52 $14.34 $15.51 $12.83 $14.52 $ Word Processors and Typists 234 9,515 $13.61 $14.35 $15.92 $11.76 $13.61 $ Desktop Publishers 61 NA $18.51 $18.43 $22.30 $15.41 $18.51 $21.85

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