Meeting Minnesota s Workforce Needs: Engineering and Advanced Technology Occupations in Minnesota

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1 Meeting Minnesota s Workforce Needs: Engineering and Advanced Technology Occupations in Minnesota April, 2012

2 CONTENTS Introduction... 4 Executive Summary... 5 Group #1: Civil Engineering... 5 Group #2: Electrical and Computer Engineering... 5 Group #3: Mechanical and Manufacturing Engineering... 6 A Description of Supply and Demand Measures... 7 Supply Demand Description of Occupation/Program Groups... 7 Group #1: Civil Engineering... 9 Group #2: Electrical and Computer Engineering... 9 Group #3: Mechanical and Manufacturing Engineering Supply and Demand Findings Group #1: Civil Engineering Workforce Demand Workforce Supply Group #2: Electrical and Computer Engineering Workforce Demand Workforce Supply Group #3: Mechanical and Manufacturing Engineering Workforce Demand Workforce Supply Appendix: Data Sources

3 Upon request, this publication is available in alternative formats by calling one of the following: General number: (651) Toll-free: (888) TTY: (651) The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator. 3

4 ENGINEERING AND ADVANCED TECHNOLOGY OCCUPATIONS IN MINNESOTA INTRODUCTION This report provides context for conversations about alignment of Minnesota State College and University system academic programs with workforce needs. The concept of workforce alignment includes four distinct dimensions: (1) Understanding the workforce needs of business and industry. (2) Supply/Demand Alignment: Is there currently (or is there likely to be in the future) a substantial difference between the supply and demand for program graduates? Supply/demand also considers: o o Geography: Are programs offered in the appropriate locations? Educational Level: Are graduates prepared with the appropriate degree (certificate, associate, baccalaureate, or graduate)? (3) Skill/Knowledge Alignment: Does curriculum (e.g., learning outcomes, soft skills, tools and technology) meet industry needs? Are program graduates adequately prepared for jobs related to their training? (4) Market/Occupational Awareness: Are current and prospective students aware of market demand and occupational requirements? This report provides background on the supply and demand (dimension #2). Regional meetings will review supply/demand data and collect information on industry needs, as well as skill and knowledge gaps (dimensions #1 and #3). The systems office has other initiatives aimed at increasing student awareness (dimension #4). 4

5 EXECUTIVE SUMMARY GROUP #1: CIVIL ENGINEERING The new supply of Civil Engineering program completers (174) is in balance 1 with the average annual projected demand (137). The difference between supply and demand (37) is about one percent of the 3,320 estimated 2011 employment level. Graduates of these programs are being prepared with either a bachelor s (67 percent) or an advanced degree (33 percent). Minnesota s capacity to produce Civil Engineers is adequate. Two universities offer civil engineering programs. GROUP #2: ELECTRICAL AND COMPUTER ENGINEERING Electrical and Computer Engineering is a diverse group of occupations, including Biomedical Engineering, Computer-related Engineering, and Electrical Engineering specialties. o o o For Biomedical Engineering, the new supply of graduates (94) is in balance with the average annual projected demand (79). This difference between supply and demand (14) is less than two percent of the 850 estimated 2011 employment level. For Computer-Hardware/Software Engineering and related technicians, the average annual projected demand (691) greatly exceeds the new graduate supply (85). This undersupply (606) is about 2.6 percent of the 23,180 estimated 2011 employment level. Most of this shortfall is for software developers (applications and systems software). For Electrical and Electronics Engineers and Technicians, the supply of new graduates (348) moderately exceeds the annual projected demand (144). This oversupply (204) is about 2.8 percent of the 7,350 estimated 2011 employment level. Graduates of these programs are being prepared almost exclusively with either a bachelor s (65 percent) or an advanced degree (33 percent). Minnesota s capacity to produce electrical and computer engineers is adequate. For these occupations, 8 of 9 colleges and universities each graduate an average of 17 students annually and the University of Minnesota-Twin Cities graduates 391 or 75 percent of the students. 1 See the Appendix for definitions of balance, oversupply, and undersupply. 5

6 GROUP #3: MECHANICAL AND MANUFACTURING ENGINEERING Mechanical and Manufacturing Engineering is a diverse group of occupations. Their supply/demand can be summarized as follows: o o o o o For Aerospace Engineers, the new supply of graduates (108) slightly exceeds the average annual projected demand (4). This difference (104) between supply and demand is 52 percent of the 200 estimated 2011 employment level. For Agricultural Engineers, the new supply of graduates (16) is balanced with the average annual projected demand (4). The 2011 employment level is 200. For Automotive Service Technicians and Mechanics, the average annual projected demand (206) slightly exceeds the new graduate supply (42). This undersupply is about 0.5 percent of the 2011 estimated employment (8,670). For Materials Engineers, the new supply of graduates (55), is balanced with the average annual projected demand (6). The 2011 employment level is 210. For Mechanical Engineers and Technicians, the new supply of graduates (598) greatly exceeds the average annual projected demand (160). This oversupply is about 2.4 percent of the 2011 estimated employment (6,720). The majority of program completers in this category earned either a bachelor s (69.1 percent) or an advanced degree (17.7 percent). Twelve percent earned an associate degree. Minnesota s capacity to produce Mechanical and Manufacturing Engineers is moderately high. For these occupations, 10 of 11 colleges and universities each graduate an average of 41 students annually and the University of Minnesota-Twin Cities graduates 410 or 50 percent of the students. 6

7 A DESCRIPTION OF SUPPLY AND DEMAND MEASURES SUPPLY. Supply of workers for a particular occupation in a region is measured as the number of recent program graduates from related training programs in the region. This includes graduates from all private and public post-secondary institutions in the state. When applicable, graduates from neighboring states border counties are also included. This measure includes only one source of supply: recent program graduates in the region. There are other sources of supply not included here: (1) recent program graduates from other regions or states, (2) people employed in related occupations in the current region, other regions, or other states, (3) part-time employees who switch to full-time employment, (4) returning veterans, (5) apprentices, (6) high school graduates, (7) customized training students, and (8) self-employed. Using recent program graduates may underestimate the true supply of workers. In other words, if the number of recent program graduates is less than the estimated number of job openings for the same time period, it does not guarantee that there will be a job for every graduate. On the other hand, if the number of graduates exceeds the number of estimated openings, there is reasonably strong evidence that the market is being oversupplied. DEMAND. Demand for workers in a particular occupation and region can be measured as both current and future demand. Current demand is measured with the Occupations In Demand (OID) indicator (see the Appendix for a detailed description). OID ranges from 1 to 5, with 1 indicating low current demand and 5 indicating high current demand. Job vacancy rates are another way to measure current demand. The job vacancy rate is the number of openings relative to the total employment in the occupation. Future demand is measured by the occupational projections. Included are (1) growth rate for the occupation over the time period, and (2) projected number of annual openings over the same time period. For more information on these data sources, please refer to the Appendix of this report. DESCRIPTION OF OCCUPATION/PROGRAM GROUPS Industry experts have selected and grouped critical occupations (on the demand side) with related training programs (on the supply side) to represent supply and demand for targeted sets of labor market activity. These groups were developed for study during the spring 2012 regional meetings. Future work will add new occupation-training groups and build upon processes developed through these meetings. Eventually, all occupation-training groups will be analyzed to inform program planning by the Minnesota State College and University system. Tables below summarize the occupations and programs included in each group for the Engineering and Advanced Technology industry. Definitions People who are part of the technology workplace include scientists, engineers, technologists, technicians, and tradespeople. All these people have specialized education or training beyond the high 7

8 school level and often work together as a team, each with specialized roles. It is important that the following definitions be applied for most adequate interpretation of data in the following report: Engineering The application of scientific and mathematical principles to the professional discipline along with the economic, social and practical knowledge required to design structures, machines, devices, systems, materials and processes. Engineering is a four-year professional program, usually accredited by the Accreditation Board of Engineering and Technology (ABET). Graduates of engineering programs often take exams to become certified Professional Engineers. Engineering Technologist The engineering technologist has the mathematical and natural science skills gained through higher education, experience, and practice, and has the capacity to take engineering design work and put it into practice. Engineering technologists work closely with engineers in coordinating people, material, and machinery to achieve the specific goals of a particular project. The engineering technologist is often responsible for design and development. Minnesota has four-year Engineering Technology programs many with ABET accreditation as well as two-year Engineering Technology programs. Engineering Technician Normally with an associate degree, engineering technicians are specialists who are trained in the skills and techniques related to a specific branch of engineering, with relatively practical understanding of the general engineering concepts. Engineering technicians often assist engineers and engineering technologists. 8

9 GROUP #1: CIVIL ENGINEERING SOC Code Occupation Title Civil Engineers Environmental Engineers CIP Code Program Title Civil Engineering Civil Engineering, General Geotechnical and Geoenvironmental Engineering Structural Engineering Transportation and Highway Engineering Water Resources Engineering Civil Engineering, Other GROUP #2: ELECTRICAL AND COMPUTER ENGINEERING SOC Code Occupation Title Biomedical Engineers Computer Hardware Engineers Computer Software Engineers, Applications Computer Software Engineers, Systems Software Electrical and Electronics Engineering Technicians Electrical Engineers CIP Code Program Title Bioengineering and Biomedical Engineering Computer Engineering Technology/Technician Computer Engineering, General Computer Hardware Engineering Computer Software Engineering Electrical and Electronic Engineering Technologies/Technicians, Other Electrical and Electronics Engineering Integrated Circuit Design Telecommunications Engineering Telecommunications Technology/Technician 9

10 GROUP #3: MECHANICAL AND MANUFACTURING ENGINEERING SOC Code Occupation Title Aerospace Engineers Agricultural Engineers Automotive Service Technicians and Mechanics Materials Engineers Mechanical Engineering Technicians Mechanical Engineers CIP Code Program Title Aerospace, Aeronautical and Astronautical/Space Engineering Agricultural Engineering Automotive Engineering Technology/Technician Hydraulics and Fluid Power Technology/Technician Manufacturing Engineering Technology/Technician Manufacturing Engineering Materials Engineering Mechanical Engineering Mechatronics, Robotics, and Automation Engineering 10

11 SUPPLY AND DEMAND FINDINGS GROUP #1: CIVIL ENGINEERING TABLE 1A. EDUCATION AND WAGES FOR CIVIL ENGINEERING Occupation Title Education Level Median Wage Civil Engineers Bachelor s degree $37.30 Environmental Engineers Bachelor s degree $38.62 Statewide Average, All Occupations $17.73 Education and Wages. Civil Engineering occupations require a bachelor s degree and pay more than twice the statewide average wage (see Table 1A). WORKFORCE DEMAND TABLE 1B. CURRENT AND FUTURE LABOR DEMAND FOR CIVIL ENGINEERING 2011 Estimated Employment Current Current Occupations in Demand Indicator (5=high)* Job Vacancy Rate Percent Growth Future Average Annual Openings Occupation Title Civil Engineers 2, % 18.3% 117 Environmental Engineers % 17.7% 20 Statewide Total, Civil Engineering 3, % 137 Statewide Total, All Occupations 2,562, % 8.7% 88,558 Current Demand. Current demand for Environmental Engineers is quite high, with an Occupations in Demand (OID) score of 5 and a job vacancy rate of 10.8 percent, both indicating strong current hiring demand. Civil Engineers have a moderate OID score (3) and a job vacancy 11

12 rate 0.5 percent below the state average, suggesting only moderate demand (see the first three columns of Table 1B). Future Demand. Future demand is indicated by the last two columns in Table 2B. While the growth rate is similar for both occupations in this group, the projected annual openings is much higher for Civil Engineers (117) than for Environmental Engineers (20) because civil engineering is a larger occupation. There are a total of 137 projected annual openings in this group. WORKFORCE SUPPLY TABLE 1C. NUMBER OF PROGRAM COMPLETERS BY AWARD LEVEL, , FOR CIVIL ENGINEERING Program Title Certificate (< 2 Years) Associate Bachelor's Advanced Degree Civil Engineering, General Transportation and Highway Engineering 5 5 Water Resources Engineering 3 3 Statewide Total, Civil Engineering Total Number of Completers. There were 174 total completers across programs related to Civil Engineering (see Table 1C). Over 95 percent of these (166) were in Civil Engineering, General programs. TABLE 1D. PERCENTAGE OF PROGRAM COMPLETERS BY AWARD LEVEL, , FOR CIVIL ENGINEERING Program Title Certificate (< 2 Years) Associate Bachelor's Advanced Degree Civil Engineering, General 70.5% 29.5% 100.0% Transportation and Highway Engineering 100.0% 100.0% Water Resources Engineering 100.0% 100.0% Statewide Total, Civil Engineering 67.2% 32.8% 100.0% Total Percentage of Completers. All completers of Civil Engineering, General programs earned either a bachelor s or an advanced degree, while all completers of Transportation and Highway Engineering and Water Resources Engineering earned advanced degrees. Given the educational 12

13 requirements shown in Table 1A, this suggests that graduates are being prepared with the appropriate level of training. Students with an advanced degree may have a competitive advantage in the market. Program TABLE 1E. RELATED EMPLOYMENT RATE, BY PROGRAM, 2010 FOR CIVIL ENGINEERING* Number of Awards Conferred Share of Available Graduates Who Found Employment Related to Major Civil Engineering, General % Statewide Total, Civil Engineering % Statewide Total, Engineering and Advanced Technology % * Includes only graduates of Minnesota State Colleges and Universities system. ** Too few awards to report. Related Employment Rates. An estimated 35.7 percent of Civil Engineering, General graduates found employment related to their major, compared to 83.5 percent of program completers in the Engineering and Advanced Technology sector as a whole. This is consistent with the finding above (1.5 percent job vacancy rate) which suggests the market may be oversupplied with civil engineering graduates. TABLE 1F. NUMBER OF AWARDS CONFERRED BY INSTITUTION, FOR CIVIL ENGINEERING Institution Number of Awards Conferred Percentage of Awards Conferred University of Minnesota-Twin Cities % Minnesota State University, Mankato % Statewide Total - Civil Engineering % Awards by Institution. Only two institutions in Minnesota awarded degrees in civil engineering programs in The University of Minnesota-Twin Cities conferred more than 90 percent of these (157), and the remainder (17) were conferred by Minnesota State University, Mankato. 13

14 GROUP #2: ELECTRICAL AND COMPUTER ENGINEERING TABLE 2A. EDUCATION AND WAGES FOR ELECTRICAL AND COMPUTER ENGINEERING Occupation Title Education Level Median Wage Biomedical Engineers Bachelor s degree $45.64 Computer Hardware Engineers Bachelor s degree $45.53 Electrical and Electronics Engineering Technicians Associate degree $26.55 Electrical Engineers Bachelor s degree $40.23 Software Developers, Applications Bachelor s degree $43.05 Software Developers, Systems Software Bachelor s degree $45.87 Statewide Average, All Occupations $17.73 Education and Wages. With the exception of Electrical and Electronics Engineering Technicians, all occupations in the Electrical and Computer Engineering group required a bachelor s degree and paid wages more than twice the statewide average (see Table 2A). WORKFORCE DEMAND TABLE 2B. CURRENT AND FUTURE LABOR DEMAND FOR ELECTRICAL AND COMPUTER ENGINEERING 2011 Estimated Employment Current Current Occupations in Demand Indicator (5=high)* Job Vacancy Rate Percent Growth Future Average Annual Openings Occupation Title Biomedical Engineers % 76.6% 79 Computer Hardware Engineers % -13.8% 26 Electrical and Electronics Engineering Technicians 3, % -12.8% 58 Electrical Engineers 4, % -1.3% 86 Software Developers, Applications 14, % 22.8% 494 Software Developers, Systems Software 7, % 13.8% 171 Statewide Total, Electrical and Computer Engineering 31, % 914 Statewide Total, All Occupations 2,562, % 8.7% 88,558 14

15 Current Demand. Current hiring demand varies across occupational groups (see first three columns of Table 2B). Electrical Engineers, Software Developers, Applications, and Software Developers, Systems Software, have the highest current demand. These are the three largest occupations in this group. All have Occupations in Demand (OID) scores of 5, and job vacancy rates above the statewide average, indicating strong demand. There is also moderately high current demand for Computer Hardware Engineers and Biomedical Engineers. Future Demand. Future demand is indicated by the data in the last two columns of Table 2B. Future demand varies widely across these occupations. Some occupations (Computer Hardware Engineers; Electrical and Electronics Engineering Technicians; and Electrical Engineers) are all projected to lose jobs over the next decade. On the other hand, Biomedical Engineers and Software Developers, Applications and Software Developers, Systems Software are all projected to grow much faster than the statewide average. In total, the Electrical Engineering group is projected to have 914 openings annually from , with nearly three-quarters of these being generated by the two software developer occupations. WORKFORCE SUPPLY TABLE 2C. NUMBER OF PROGRAM COMPLETERS BY AWARD LEVEL, , FOR ELECTRICAL AND COMPUTER ENGINEERING Certificate (< 2 Years) Associate Bachelor's Advanced Degree Program Title Total Bioengineering and Biomedical Engineering Computer Engineering Technology/Technician Computer Engineering, General Computer Software Engineering 2 2 Electrical and Electronics Engineering Telecommunications Technology/Technician 3 3 Statewide Total, Electrical and Computer 10 Engineering Number of Completers. In all, there were 524 program completers in the Electrical and Computer Engineering group, with nearly two-thirds of them in Electrical and Electronics Engineering (see Table 2C). Because occupations and programs in this category are diverse, separate occupation-program statements can be made: o Bioengineering and Biomedical Engineering. There were 94 graduates from Bioengineering and Biomedical Engineering programs and 79 projected annual projected openings for Biomedical Engineers over the next decade. 15

16 o o Computer Engineering-related programs and occupations. These include three programs in Table 2C: Computer Engineering Technology/Technician, Computer Engineering, General, and Computer Software Engineering. These three programs combined had 82 completers in There are 667 projected annual openings across the three computer-related occupations in Table 2B (Computer Hardware Engineers; Software Developers, Applications; and Software Developers, Systems Software). Electrical and Electronics Engineering. These include Electrical and Electronics Engineering and Telecommunications Technology/Technician programs. These two programs had a total of 348 completers (the vast majority in Electrical and Electronics Engineering). There are 144 projected annual openings for Electrical Engineers and Electrical and Electronics Engineering Technicians (see Table 2B). TABLE 2D. PERCENTAGE OF PROGRAM COMPLETERS BY AWARD LEVEL, , FOR ELECTRICAL AND COMPUTER ENGINEERING Certificate (< 2 Years) Associate Bachelor's Advanced Degree Program Title Total Bioengineering and Biomedical Engineering 76.6% 23.4% 100.0% Computer Engineering Technology/Technician 87.5% 12.5% 100.0% Computer Engineering, General 68.1% 31.9% 100.0% Computer Software Engineering 100.0% 100.0% Electrical and Electronics Engineering Technologies/Technicians, Other 62.3% 37.7% 100.0% Telecommunications Technology/Technician 100.0% 100.0% Statewide Total, Electrical and Computer Engineering 1.9% 64.7% 33.4% 100.0% Percentage of Completers. Nearly two-thirds of all program completers in this category earned a Bachelor s degree in , and another third earned an advanced degree (see Table 2D). Given the educational requirements shown in Table 2A, this suggests that students are being prepared with appropriate educational credentials for these occupations. 16

17 Program TABLE 2E. RELATED EMPLOYMENT RATE, BY PROGRAM, 2010 FOR ELECTRICAL AND COMPUTER ENGINEERING* Number of Awards Conferred Share of Available Graduates Who Found Employment Related to Major Computer Engineering Technology/Technician ** ** Computer Engineering, General % Computer Software Engineering ** ** Electrical and Electronic Engineering Technologies/Technicians, Other ** ** Electrical and Electronics Engineering % Telecommunications Technology/Technician % Statewide Total, Electrical and Computer Engineering % Statewide Total, Engineering and Advanced Technology % * Includes only graduates of Minnesota State Colleges and Universities system. ** Too few awards to report. Related Employment Rates. For the programs for which data are available, Table 2E indicates that graduates of Electrical and Computer Engineering programs are successful in finding employment related to their major. In this group as a whole, 82.7 percent found employment related to their major (see Table 2E). TABLE 2F. NUMBER OF AWARDS CONFERRED BY INSTITUTION, FOR ELECTRICAL AND COMPUTER ENGINEERING Institution Number of Awards Conferred Percentage of Awards Conferred University of Minnesota-Twin Cities % University of Minnesota-Duluth % Minnesota State University, Mankato % St. Cloud State University % University of St. Thomas % Northland Community and Technical College 6 1.1% Minnesota State Community and Technical College 3 0.6% Ridgewater College 1 0.2% University of Minnesota-Crookston 1 0.2% Statewide Total, Electrical and Computer Engineering % Awards by Institution. Approximately three-quarters (391) of all program completers earned degrees at the University of Minnesota-Twin Cities. 17

18 GROUP #3: MECHANICAL AND MANUFACTURING ENGINEERING TABLE 3A. EDUCATION AND WAGES FOR MECHANICAL AND MANUFACTURING ENGINEERING Occupation Title Education Level Median Wage Aerospace Engineers Bachelor s degree $47.05 Agricultural Engineers Bachelor s degree $35.29 Automotive Service Technicians and Mechanics High school diploma or equivalent $19.15 Materials Engineers Bachelor s degree $38.98 Mechanical Engineering Technicians Associate degree $25.84 Mechanical Engineers Bachelor s degree $36.40 Statewide Average, All Occupations $17.73 Education and Wages. Occupations in the Mechanical and Manufacturing Engineering group vary in terms of educational requirements and pay. Automotive Service Technicians and Mechanics, for example, require a high school diploma or equivalent and pay $19.15 per hour. At the other end of the spectrum, Aerospace Engineers require a bachelor s degree and earn median wages of $47.05 per hour (see Table 3A). WORKFORCE DEMAND TABLE 3B. CURRENT AND FUTURE LABOR DEMAND FOR MECHANICAL AND MANUFACTURING ENGINEERING 2011 Estimated Employment Current Current Occupations in Demand Indicator (5=high)* Job Vacancy Rate Percent Growth Future Average Annual Openings Occupation Title Aerospace Engineers % 5.3% 4 Agricultural Engineers % 4 Automotive Service Technicians and Mechanics 8, % -1.6% 206 Materials Engineers % 3.7% 6 Mechanical Engineering Technicians 1, % -3.0% 30 Mechanical Engineers 5, % -0.3% 130 Statewide Total, Mechanical and Manufacturing Engineering 15, % 380 Statewide Total, All Occupations 2,562, % 8.7% 88,558 18

19 Current Demand. Current demand is moderate to high in the Mechanical and Manufacturing Engineering group (see the first three columns of Table 3B). For Mechanical Engineering Technicians demand is moderate, job vacancy rate is just slightly below the statewide average, and Occupations in Demand (OID) score is 3. Demand for Mechanical Engineers and Automotive Service Technicians and Mechanics is high, with higher-than-average job vacancy rates and an Occupations in Demand (OID) score of at least 4. Future Demand. In general, future demand for workers in Mechanical and Manufacturing Engineering is low (see last two columns of Table 3B). Most of these occupations are projected to decline in employment from 2009 to 2019, though the need to replace those who are retiring or leaving the field will drive demand for Mechanical Engineers (with 130 new workers needed annually) and Automotive Service Technicians (with 206 new workers needed annually). WORKFORCE SUPPLY TABLE 3C. NUMBER OF PROGRAM COMPLETERS BY AWARD LEVEL, , FOR MECHANICAL AND MANUFACTURING ENGINEERING Program Title Certificate (< 2 Years) Associate Bachelor's Advanced Degree Aerospace, Aeronautical and Astronautical/ Space Engineering Agricultural Engineering Automotive Engineering Technology/Technician Hydraulics and Fluid Power Technology/Technician Manufacturing Engineering Technology/Technician Manufacturing Engineering Materials Engineering Mechanical Engineering Statewide Total, Mechanical and Manufacturing Engineering Total Number of completers. In total, there were 819 program completers in this group in (see Table 3C). 19

20 TABLE 3D. PERCENTAGE OF PROGRAM COMPLETERS BY AWARD LEVEL, , FOR MECHANICAL AND MANUFACTURING ENGINEERING Program Title Certificate (< 2 Years) Associate Bachelor's Advanced Degree Total Aerospace, Aeronautical and Astronautical / Space Engineering 77.8% 22.2% 100.0% Agricultural Engineering 75.0% 25.0% 100.0% Automotive Engineering Technology/Technician 100.0% 100.0% Hydraulics and Fluid Power Technology/Technician 18.2% 81.8% 100.0% Manufacturing Engineering Technology/Technician 1.6% 54.8% 37.1% 6.5% 100.0% Manufacturing Engineering 34.0% 11.3% 54.7% 100.0% Materials Engineering 81.8% 18.2% 100.0% Mechanical Engineering 82.7% 17.3% 100.0% Statewide Total, Mechanical and Manufacturing Engineering 1.3% 11.8% 69.1% 17.7% 100.0% Percentage of Program Completers. As shown in Table 3D, the majority of program completers in this category earned either a bachelor s (69.1 percent) or an advanced degree (17.7 percent). Technician program graduates are the main exception to this pattern. This suggests that students are being prepared with the appropriate level of training. 20

21 Program TABLE 3E. RELATED EMPLOYMENT RATE, BY PROGRAM, 2010 FOR MECHANICAL AND MANUFACTURING ENGINEERING* Number of Awards Conferred Share of Available Graduates Who Found Employment Related to Major Automotive Engineering Technology/Technician % Hydraulics and Fluid Power Technology/Technician % Manufacturing Engineering Technology/Technician % Manufacturing Engineering ** ** Materials Engineering % Mechanical Engineering % Statewide Total, Mechanical and Manufacturing Engineering % Statewide Total, Engineering and Advanced Technology % * Includes only graduates of Minnesota State Colleges and Universities system. ** Too few awards to report. Related Employment Rates. Related employment rates for graduates of these programs were generally high, ranging from 85 percent for graduates of Mechanical Engineering programs to 95.1 percent for graduates of Hydraulics and Fluid Power Technology/Technician programs. It is worth noting that graduates of Minnesota State College and University Mechanical Engineering programs are successful finding related employment, even though the data suggest the market is oversupplied. TABLE 3F. NUMBER OF AWARDS CONFERRED BY INSTITUTION, FOR MECHANICAL AND MANUFACTURING ENGINEERING Institution Number of Awards Conferred Percentage of Awards Conferred University of Minnesota-Twin Cities % Minnesota State University, Mankato % University of St. Thomas % Hennepin Technical College % University of Minnesota-Duluth % St. Cloud State University % Winona State University % Dunwoody College of Technology % Alexandria Technical and Community College 8 1.0% Saint Paul College 8 1.0% 21

22 TABLE 3F, CONTINUED. NUMBER OF AWARDS CONFERRED BY INSTITUTION, FOR MECHANICAL AND MANUFACTURING ENGINEERING Institution Number of Awards Conferred Percentage of Awards Conferred Minnesota West Community and Technical College 7 0.9% Statewide Total, Mechanical Engineering % Awards by Institution. Approximately one half of all graduates in Mechanical and Manufacturing Engineering earned degrees from the University of Minnesota-Twin Cities, and another 12.1 percent from Minnesota State University, Mankato. 22

23 APPENDIX: DATA SOURCES Data Sources This report quantifies current and projected worker supply and demand. Demand data come from the Labor Market Information Office at the Minnesota Department of Employment and Economic Development (DEED). Supply data come from the Integrated Postsecondary Educational Data System (IPEDS). The Graduate Follow-Up Survey conducted by the Research and Planning unit of the Minnesota State College and Universities system (MnSCU) provides an indicator of both supply and demand. The survey s Related Employment Rate reflects employer demand for completers of a particular program who are available for employment (supply) during the year after their graduation. Occupation-Program Groups Occupation-program groups reflect the connections between occupations and instructional programs. Each group is a combination of occupations (Standard Occupational Classification codes and titles) and programs (Current Instructional Program codes and titles). Industry experts created these groups to facilitate data analysis and presentation. Each grouping is designed to reflect real-world movement of people in a defined set of occupations and instructional programs. Demand Data Demand data in this report are from the Labor Market Information Office at the Minnesota Department of Employment and Economic Development. 1. Education Level The level of education information presented in this report is a national indicator of the education that is typically needed in each occupation. This indicator is developed by the U.S. Bureau of Labor Statistics Employment Projections program. 2. Employment and Wages Occupational Employment Statistics is a federal-state program between the Bureau of Labor Statistics and state agencies. Employment and wage estimates for 800 occupation classifications come from a semiannual survey of 6,000 employers in Minnesota, drawn from the universe of nonfarm employers covered by the state s unemployment insurance program. Employment estimates are produced annually while wages are updated quarterly. Data included in this report include 2011 employment and fourth quarter 2011 wages. 3. Employment Projections Employment projections are developed based on a national trend analysis model. Minnesota's industry and occupational mix are accounted for in the development of projections using Minnesota's Current Employment Statistics data and Occupational Employment Statistics staffing pattern data. Projections compiled by both occupation and industry for the state and for six regional planning areas. These 10-year forecasts are updated every other year with state projections in even number years and regional projections in odd number years. Data included in this report cover 2009 to

24 4. Occupations in Demand These lists show current career opportunities in a region as determined by regularly updated local labor market demand. The Occupations in Demand list for a region is the group of occupations that ranks highest on a Current Demand Indicator, which measures short-term demand for jobs locally and is calculated on the basis of the Job Vacancy Survey, Occupational Employment Statistics and unemployment data. Occupations in Demand lists are updated semiannually. Data included in this report were released in November Demand Data Limitations While demand data in this report represent the best and most current information available, they have limitations: 1. Demand data are presented at the occupational level, not the job level. Occupational data rely on the Standard Occupational Classification coding structure, which may miss more detailed nuances, trends and skill needs at the level of the job. They may also omit emerging fields that are not yet captured in the classification coding structure. 2. Occupational Employment Statistics data reflect wage and salary workers on payrolls of Minnesota establishments. They do not capture self-employment or micro-businesses, which may not be subject to Minnesota s unemployment insurance system. 3. The reliability of projections for individual occupations is subject to error due to the assumptions of the trend analysis method. It should be noted that the national employment projections model for , upon which the Minnesota forecast was produced, was created at the early stages of the latest recession. 4. The reliability of projections also can vary depending on the employment size of the occupation and the geographic area. Projections for large occupations and geographic areas are generally more accurate than for small occupations and small geographic areas. 5. Projected job openings are limited to new jobs created and the replacement openings created when workers die, retire or otherwise permanently leave the occupation. They do not include openings created by employee turnover when a worker leaves a job at Company A to take a similar job at Company B. 6. A job vacancy is a position that is currently open-for-hire at the time of the survey. The Job Vacancy Survey excludes vacancies reserved for contract consultants, employees of contractors and others not considered employees of surveyed firms. Supply Data 1. Data for program completers are from the annual completion component of the National Center for Education Statistics Integrated Postsecondary Education Data System. All postsecondary institutions that have a Program Participation Agreement with the Office of Postsecondary Education in the U.S. Department of Education are required to report data using a web-based 24

25 data collection system. Unique identification numbers are assigned to postsecondary institutions surveyed. The annual completions component of IPEDS collects number of degrees and other formal awards, such as certificates, conferred. These data are reported by level (associate, bachelor s, master s, doctorate, and first professional), as well as by length of program for some, using the 2010 Classification of Instructional Programs code. Institutions report all degrees and other awards conferred during an entire academic year from July 1 of one calendar year through June 30 of the following year. In this report, data are for completers from July 1, 2009 through June 30, Supply Data Limitations The supply of labor available for job openings is rather difficult to measure because of mobility and skill transferability. The potential supply of labor includes new graduates from related training programs in the labor market or those who could relocate; experienced unemployed workers in the occupation who live in the labor market or who could relocate; employed workers in the occupation who might switch employers; and those who are qualified but currently out of the labor force who could re-enter. Some specific limitations to keep in mind include: 1. This report uses just recent completers of related academic programs in the state of Minnesota. Minnesota may not contain a college or university with the specific related programs within its boundaries, but completers may relocate from a nearby region or a bordering state. While there may appear to be a surplus of supply, only some of the completers will stay in the region while others will move to other states to seek employment. 2. The supply of workers for some occupations may be trained by apprenticeships or alternative training programs, rather than academic programs. 3. In some cases, such as registered nurses, individuals may begin working with an associate degree but then earn a bachelor s degree. The IPEDS data do not identify the supply of new entrants to the occupation. Other data, such as that compiled by the Board of Nursing, is helpful in counting the number of individuals preparing for first-time licensure. 4. An associate degree can include both those who have completed the first two years of coursework and will transfer to a university to complete a bachelor s degree, as well as those who have completed a program with technical and general education that prepares them to enter the workforce for some occupations. 5. Completer data only measure part of the quantity of the labor supply for an occupation or group of occupations. It does not measure the quality of those applying for the openings. Employers may be looking for experience or additional skills that the new entrants do not have. So what might appear to be a plentiful supply of labor is actually reduced. 6. Completions data for multi-campus institutions are reported for a single institution address. 25

26 7. The IPEDS completions data include second majors. A person who graduates with a doublemajor will be counted as a completer in both programs. Definitions of Balance, Oversupply, and Undersupply For the purposes of this report the definition of balance, oversupply, and undersupply are as follows: a. Balanced = the new graduate supply and projected average annual demand are off by 50. b. Slight oversupply/undersupply = the new graduate supply and projected average annual demand are off by c. Moderate oversupply/undersupply = the new graduate supply and projected average annual demand are off by d. Greatly oversupply/undersupply = the new graduate supply and projected average annual demand are off by Related Employment Rate The related employment rate is based on data collected annually through the Minnesota State Colleges and Universities (MnSCU) Graduate Follow-Up Survey. The related employment rate is calculated as the number of survey respondents (MnSCU graduates) who reported working either full-time or part-time in job that was related to their major, divided by the total number of program graduates who were available for employment. Available graduates includes those who were employed in a related job; available for work but unemployed; and those who were working in a field unrelated to their major and seeking a related job. It does not include those who were out of the labor force, continuing their education or whose status was unknown. The related employment rate gives an indication of the alignment of supply and demand. A low related employment rate could indicate that the market is oversupplied with graduates in a particular major. A high related employment rate could indicate that the demand for these majors is high and the market is undersupplied or balanced. 26

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