College to Career HIGH-DEMAND OCCUPATIONS: SCIENCE, TECHNOLOGY, ENGINEERING, & MATH. Aligning Higher Education Outcomes to Workforce Demand

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1 The Hispanic Scholarship Fund College to Career Aligning Higher Education Outcomes to Workforce Demand HIGH-DEMAND OCCUATIONS: SCIENCE, TECHNOLOGY, ENGINEERING, & MATH repared August 2012 by TI Strategies Theory Into ractice

2 Introduction In 2012, the Hispanic Scholarship Fund (HSF) commissioned research addressing a critical issue facing corporate America in the upcoming decade: a dramatic shortage of college-educated workers who are adequately trained for high-demand occupations (HDOs). Our study analyzed data and projections behind this alarming trend for five occupational groups (see box, next page) to explore ways to mitigate or reverse this future shortage of educated workers. Founded in 1975, HSF is the nation s largest not-for-profit organization supporting Hispanic higher education. We provide American families with the financial and educational resources they need to achieve a college education and help America be more competitive. The roblem Despite current economic challenges, including high unemployment rates, estimates indicate that by 2018 the nation s employers will face a shortage of 3 million workers with college degrees. 1 Why? For every 100 elementary school students, only 21 graduate from college. The U.S. is the only country where college attainment levels among those just entering the labor market (25- to 34-year-olds) are lower than those about to leave it (55- to 64-year-olds). 2 By 2018, as many as two-thirds of entry-level openings are projected to require a college degree, leading to a decline in less-skilled jobs. Clearly, we need more college graduates to fill the job demands of the future. However, our research shows that the problem isn t simply a shortage of college students; it s a failure to match those degrees that are attained with the evolving needs of business. Many corporations are currently unprepared to handle this looming issue. What the Data Tells Us This report is an excerpt from HSF s full-length College to Career analysis that profiles science, technology, engineering, and math (STEM) occupations. The analysis looked at recent college graduates chosen fields of study and how they relate to the career opportunities available in a range of STEM industries and occupations. This data was then compared to the projected number of entry-level job openings from 2012 to 2018 in the highest-demand occupations of this sector. 3 For the study s purposes, entry-level openings are those that require an associate s or bachelor s degree and less than one year of work experience in a related field. age 1

3 Key findings: STEM occupations accounted for 8.5 million jobs in 2012, with 1.9 million projected openings through These openings are far more likely than those of the other occupational groups to require a college degree: four out of every five (81%). With just under 750,000 estimated openings ( ), the top 10 STEM HDOs account for roughly two of every five jobs (39%) in the sector. Computer systems analysts will be most in demand, with more than 140,000 projected openings ( ). Computer-related occupations dominate the list of high-demand STEM occupations, taking six of the top 10 spots, followed by four engineering occupations (civil engineers, industrial engineers, mechanical engineers, and all other engineers) with 35,000 to 65,000 openings each. Computer-related HDOs primarily affect information technology dependent industries, such as computer systems design and related services; software publishers; and computer and peripheral equipment manufacturing. While engineering occupations are generally tied to manufacturing, some manufacturing industries also employ computerrelated occupations, particularly computer engineers. STEM HDOs are concentrated in the manufacturing, professional and technical services, and information technology industries. The top 10 HDOs comprise 10% or more of total employment for 12 of the top 20 STEM-related industries. FIGURE 1. ENTRY-LEVEL OENINGS BY TARGET CATEGORY, Source: EMSI Complete Employment , BLS Employment rojections Education & Training Requirements. Note: Entry-level is defined as those jobs that require an associate s or bachelor s degree and less than one year of work experience to gain entry into the occupation. age 2

4 Top 10 High-Demand STEM Occupations 1. Computer Systems Analysts 2. Computer Software Engineers, Applications 3. Computer Software Engineers, Systems Software 4. Network and Computer Systems Administrators 5. Civil Engineers 6. Computer rogrammers 7. Industrial Engineers 8. Mechanical Engineers 9. Computer Specialists, All Other 10. Engineers, All Other Top 10 Most-Impacted STEM Industries 1. Computer Systems Design and Related Services 2. Software ublishers 3. Computer and eripheral Equipment Manufacturing 4. Data rocessing, Hosting, and Related Services 5. Architectural, Engineering, and Related Services 6. Navigational, Measuring, Electromedical, and Control Instruments Manufacturing 7. Other Information Services 8. Communications Equipment Manufacturing 9. Aerospace roduce and arts Manufacturing 10. Scientific Research and Development Services Fields of Study with a Critical Shortage of Graduates for High-Demand Occupations Mechanical engineering is the most popular field of study that feeds into the high-demand STEM occupations. Average annual degree completions for this field from were 18,374, while annual openings for mechanical engineers totaled 8,318. The field of computer science encompasses the most high-demand occupations, including six of the top 10. Computer and information sciences, information technology, computer engineering, and computer programming all relate to at least three HDOs. The occupation of industrial engineer shows a wide gap between annual openings and completions, with 8,790 openings to be filled by 3,713 graduates from three different related fields of study. (See Fig. 5 on page 7.) Implications for U.S. Business Within this decade, nearly two-thirds of jobs created will require a post-secondary education. If America has any chance of remaining competitive in the global economy, then we need not only more college graduates in our workforce; we need more students to earn associate s or bachelor s degrees that correspond to high-demand occupations in all fields, particularly the five occupational categories in our report, including Science, Technology, Engineering, and Math. age 3

5 Strengthening and encouraging the link between students fields of study and the needs of business is of vital importance to: Achieve corporate recruitment goals; Ensure a pool of educated, qualified workers; Support ongoing talent development strategies for growth; Decrease the unemployment rate; Reduce offshoring of domestic jobs; Keep top American industries competitive in the global marketplace; Support the continued expansion of our nation s economy. HSF Is art of the Solution The Hispanic Scholarship Fund partners with American corporations and philanthropic organizations to align higher education outcomes with workforce demands by addressing the nation s skills gap in the highest-demand occupations that require college degrees. Via its Generation 1st Degree initiative, HSF supports first-generation Hispanic college students with the interest and ability to meet future workforce needs through: Community outreach Educational support Employer engagement To date, HSF and its growing coalition of companies and donors have awarded more than $360 million in scholarships to deserving students. For nearly 40 years, HSF has supported a broad range of outreach and education programs to help students and their families navigate collegiate life, from gaining admission and securing financial aid, to finding employment after graduation. If you are concerned about finding qualified, college-educated talent to meet your company s hiring needs in the next decade and beyond, we invite you to be a part of the solution by joining HSF s Generation 1st Degree initiative. ABOUT GENERATION 1 ST DEGREE Generation 1st Degree is the Hispanic Scholarship Fund s initiative focused on closing the degree gap between Hispanic students and their peers by helping at least one person in each Hispanic household earn a college degree. The goal of the initiative is to add more than 14 million new Hispanic college graduates by For more information, visit call HSF-INFO, or contact the Regional Development Officer who sent you the link to this report. age 4

6 Science, Technology, Engineering, & Math Occupations FIGURE 2. SECTOR DEFINITION Description Computer Specialists Mathematical Science Occupations Architects, Surveyors, and Cartographers Engineers Drafters, Engineering, and Mapping Technicians Life Scientists hysical Scientists Social Scientists and Related Workers Life, hysical, and Social Science Technicians The science, technology, engineering, and math (STEM) sector includes computer-related, mathematics, architecture, engineering, and life, physical, and social science occupations. (See Fig. 2.) This sector accounted for 8.5 million jobs in 2012 and is expected to generate 1.9 million openings between 2012 and 2018, of which 1.5 million (81%) will require either an associate s or bachelor s degree. The highest-demand entry-level STEM occupations for college graduates are computer systems analysts, with 140,017 anticipated openings ( ), averaging 23,336 annually. Others include computer and network specialists of different types and civil, industrial, mechanical, and other engineers. These top 10 occupations total 737,521 expected openings, representing 39% of the STEM sector total. All of these openings require either an associate s or bachelor s degree, less than one year of work experience in a related field, and no on-the-job training. (See Fig. 3.) FIGURE 3. TO 10 ENTRY-LEVEL OCCUATIONS FOR ASSOCIATE S AND BACHELOR S DEGREE HOLDERS Openings, Description Computer Systems Analysts Computer Software Engineers, Applications Computer Software Engineers, Systems Software Network and Computer Systems Administrators Civil Engineers Computer rogrammers Industrial Engineers Mechanical Engineers Computer Specialists, All Other Engineers, All Other Openings ( ) 140, ,153 88,011 79,103 64,751 61,111 52,741 49,911 46,154 35,569 Source: EMSI Complete Employment , BLS Employment rojections Education & Training Requirements. Industries Most Impacted by High-Demand Occupations Computer systems design and related services, and software publishers, are most impacted by these HDOs, which account for about 40% of all occupations in those industry sectors. Along with data processing, these industries employ workers from six of the top 10 entry-level occupations. The HDOs account for 25.9% to 43.3% of total occupations for computer or information services-focused industry sectors. Nine different manufacturing industries are among the top 20 HDO-impacted industries due to their employment of engineers. (See Fig. 4.) age 5

7 FIGURE 4. TO 20 INDUSTRIES EMLOYING HIGH-DEMAND OCCUATIONS = One of the Top 10 Industries for this Occupation q Most-Impacted Industries Computer Systems Design and Related Services Software ublishers Computer and eripheral Equipment Manufacturing Data rocessing, Hosting, and Related Services Architectural, Engineering, and Related Services Navigational, Measuring, Electromedical, and Control Instruments Manufacturing Other Information Services Communications Equipment Manufacturing Aerospace roduct and arts Manufacturing Scientific Research and Development Services Monetary Authorities Central Bank Industrial Machinery Manufacturing Other Telecommunications Commercial and Service Industry Machinery Manufacturing Semiconductor and Other Electronic Component Manufacturing Manufacturing and Reproducing Magnetic and Optical Media rofessional and Commercial Equipment and Supplies Merchant Wholesalers Engine, Turbine, and ower Transmission Equipment Manufacturing Motor Vehicle Manufacturing Management, Scientific, and Technical Consulting Services Source: Bureau of Labor Statistics, Occupational Employment Statistics. q 10 High-Demand Occupations Computer Systems Analysts Computer Software Engineers, Applications Computer Software Engineers, Systems Software Network and Computer Systems Administrators Civil Engineers Computer rogrammers Industrial Engineers Mechanical Engineers Computer Specialists, All Other Engineers, All Other t Share of this industry that the top 10 high-demand occupations represent as a group 42.4% 38.9% 30.4% 25.9% 20.5% 16.4% 15.5% 15.2% 13.9% 12.2% 10.4% 10.0% 9.9% 9.6% 9.4% 9.4% 9.1% 8.7% 8.5% 7.8% age 6

8 FIGURE 5. TO 20 FIELDS OF STUDY (BY NUMBER OF COMLETIONS) THAT MATCH HIGH-DEMAND OCCUATIONS = One of the Top 10 Fields of Study for this Occupation * Completions data is the three-year average from 2008 to 2010, which includes only associate s and bachelor s degrees between July 1 and June 30 of each year from institutions eligible to participate in federal financial aid programs. Note: Many of the fields of study listed here match to other occupations that are not in high demand and have completions that are not associate s and bachelor s degrees. Therefore a direct comparison of completions and openings figures on this table is not an accurate measure of the balance between supply and demand. q 10 Target Occupations Computer System Analysts Computer Software Engineers, Applications Computer Software Engineers, Systems Software Network and Computer Systems Administrators Civil Engineers Computer rogrammers Industrial Engineers Mechanical Engineers Computer Specialists, All Other Engineers, All Other q Related Fields of Study Annual Openings ( ) u Completions* q Mechanical Engineering 18,374 Computer and Information Sciences, General 16,003 Civil Engineering, General 11,138 Computer Systems Networking and Telecommunications 9,983 Computer Science 9,012 Management Information Systems, General 8,473 Information Technology 8,223 Information Science/Studies 7,422 Computer Engineering, General 3,925 Engineering, General 3,622 Industrial Engineering 3,140 Computer and Information Systems Security/Information Assurance 2,650 Computer Graphics 2,371 Network and System Administration/Administrator 2,234 Computer rogramming/rogrammer, General 2,143 Computer Systems Analysis/Analyst 1,418 Data rocessing and Data rocessing Technology/Technician 1,048 Architectural Engineering 804 Computer rogramming, Specific Applications 782 Engineering, Other 709 Source: Bureau of Labor Statistics, National Center for Education Statistics. 23,336 20,025 14,668 13,184 10,792 10,185 8,790 8,318 7,692 5,928 age 7

9 About this Study and hsf Strategy The College to Careers analysis identified five occupational categories projected to have the highest demand for associate s and bachelor s degree holders: Managerial and professional office Science, technology, engineering, and math (STEM) Health care Education Community services and arts HSF s Generation 1st Degree initiative is focusing new scholarship funds on these categories, which will generate an estimated 5.4 million openings in occupations that require an associate s or bachelor s degree and less than one year of work experience in a related field, from 2012 to These openings are spread across 122 specific occupations. Within each of the five categories, we identified which occupations will be in highest demand both nationally and in HSF s primary markets: Atlanta, Chicago, Houston, Los Angeles, Miami, New York, and San Francisco. Of the HDOs identified, six are in high demand nationally as well as across all seven major markets. Registered nurses rank number one, followed by personal financial advisors, accountants, and three education positions. Other HDOs were more likely to reflect the industry specialization of a given market, e.g., software engineers in San Francisco, financial analysts in Chicago and New York. With the exception of Houston s strong demand for petroleum engineers, these market-specific HDOs were also expected to experience strong growth nationally. Founded in 1975, the Hispanic Scholarship Fund is the nation s leading organization working to address the barriers that keep many Latinos from earning a college degree. HSF envisions a future where every Latino household will have at least one college graduate, creating an enduring impact on the college outlook of Latino families nationwide, and strengthening the American economy for generations to come. For more information about the Hispanic Scholarship Fund, please visit: This document is excerpted from College to Career: Matching Scholars rograms to Workforce Demand , prepared by TI Strategies for the Hispanic Scholarship Fund. The full report 1) profiles occupations that will demand the most college graduates over the period, 2) identifies the industries that will be most impacted by those occupations, and 3) catalogs the fields of study that most closely link to the high-demand occupations (HDOs). Sources: 1 Carnevale, Anthony. Help Wanted: rojections of Jobs and Education Requirements Through Education at a Glance 2011, OECD Indicators. 3 Supply and demand for STEM occupations were gauged using Completions data compiled by the National Center for Education Statistics from detailed information about degrees and certificates awarded for credit by institutions that participate in federal financial aid programs. Hispanic Scholarship Fund 1411 W. 190th Street, Suite 325 Gardena, CA HSF-INFO 2012 HSF. All rights reserved.

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