Cedar Valley Region Labor Market Profile for Information Technology
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1 Cedar Valley Labor Market Profile for Information Technology May 2014 A Skills Ready Report from Cedar Valley al Partnership 10 West Fourth Street, Suite 310 Waterloo, IA info@cedarvalleyregion.com
2 Cedar Valley - Information Technology Labor Market Page 1 Labor Market The Cedar Valley is an 8-county region in northeast Iowa. The counties in this region include: Black Hawk Bremer Buchanan Chickasaw Clayton Fayette Grundy Tama The Waterloo - Cedar Falls Metropolitan Statistical Area (MSA) is part of this. The total Cedar Valley Labor Market is estimated to be 393,398 workers. The Labor Market is defined as total employment in the Cedar Valley as well as neighboring counties that have significant commutation to work in the. The commutation data was obtained from the U.S. Census Bureau. The majority of the Cedar Valley 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 fourth quarter of Information for this report was also obtained from ACT and Smart Solutions Group. Employment in the Cedar Valley Labor Market grew by 8.2% from 2003 to 2013 (see Exhibit 1), which is slightly above the employment growth for the State of Iowa (8.0%) over the same period but below the growth of the U.S. (10.1%). Employment 400, , , , , , ,000 Exhibit 1: Employment Growth Greater Cedar Valley Labor Market Industry Cluster Employment The largest Industry Cluster in the Cedar Valley Labor Market is Manufacturing, which includes over 13% of the Labor Market s employment. Government is the second largest cluster 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 46, % Retail Trade 42, % Health Care & Social Assistance 42, % Accommodation & Food Services 22, % Construction 22, % Finance & Insurance 22, % Other Services 19, % Administrative & Support Services 18, % Agriculture 18, % Transportation & Warehousing 16, % Professional, Scientific, & Tech Services 13, % Median Earnings per Worker in the Cedar Valley is more than $6,700 below the median earnings (or 15% below) for the national workforce ($44,818 in the compared to $51,548 in the nation). The Cedar Valley 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 Cedar Valley - 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, there were over 10,000 workers in Information Technology occupations or 2.6% of total Labor Market employment, which is above the percentage for the State of Iowa (2.2%) and slightly below the percentage for the nation (2.9%). From 2006 to 2013, Information Technology employment increased by 22.8% in the Cedar Valley and by 21.0% in the U.S. while Information Technology employment in the State of Iowa grew by 13.5%. Exhibit 3 shows employment growth in Information Technology for the Cedar Valley, Iowa, and the nation since Growth Index (2006 = 100.0) Exhibit 3: Information Technology Growth Information Technology Growth Cedar Valley 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 over 28% 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 is 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 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 State of Iowa 1, Computer Systems Design Services 726 Electronic Computer Manufacturing 320 Document Preparation Services 302 Software Publishers 280 Other Computer Related Services 129 Computer Facilities Management Ser- 128 Computer and Office Machine Repair and Maintenance Internet Publishing and Broadcasting and Web Search Portals United States Cedar Valley Information Technology Earnings per Worker $65,639 $68,592 $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 Cedar Valley Labor Market can be seen in Exhibit 6. 82
4 Cedar Valley - Information Technology Labor Market Page 3 Exhibit 6: Top 10 IT Occupations Information Technology Occupation No. of Jobs Median Wage Software Developers, Applications 1,424 $32.69 Software Developers, Systems Software 1,392 $36.90 Exhibit 7: Earnings per Worker IT Workers Median Hourly Earnings United States $35.02 Network and Computer Systems Administrators 923 $29.27 State of Iowa $30.28 Computer Systems Analysts 818 $32.35 Computer User Support Specialists 798 $19.53 Electrical Engineers 794 $39.40 Cedar Valley $31.33 Computer Programmers 642 $27.19 Computer and Information Systems Managers Computer Network Support Specialists 556 $ $22.06 Data Entry Keyers 417 $14.51 Employment and wage information for all occupations in the Information Technology cluster in the Cedar Valley Labor Market can be seen the Appendix. 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 occupations, the Cedar Valley offers a large supply of skilled Information Technology workers with a Median Earnings per Worker that is $3.69 per hour below the national earnings and slightly above the State median earnings (see Exhibit 7). Education and Training The Cedar Valley has excellent educational systems and institutions, and the area has a heritage of a strong work ethic. The 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 Cedar Valley 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 Cedar Valley - 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 Cedar Valley 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) (877) info@cedarvalleyregion.com
6 Cedar Valley - Information Technology Labor Market Page 5 Appendix: Information Technology Occupations SOC Code Occupation Cedar Valley Labor Market Jobs Cedar Valley Labor Market IT Workers with Compatible Skills Median Hourly Wage Labor Market State of Iowa United States Cedar Valley Labor Market Wage th Percentile 50th Percentile 75th Percentile Management Occupations Computer and Information Systems Managers 556 5,893 $49.93 $48.77 $55.91 $40.87 $49.93 $60.02 Computer and Mathematical Occupations Computer and Information Research Scientists $43.96 $43.96 $48.91 $34.15 $43.96 $ Computer Systems Analysts 818 6,449 $32.35 $34.88 $36.57 $26.57 $32.35 $ Information Security Analysts 92 6,357 $31.23 $32.53 $41.36 $25.72 $31.23 $ Computer Programmers 642 7,548 $27.19 $29.19 $33.54 $21.22 $27.19 $ Software Developers, Applications 1,424 1,425 $32.69 $34.54 $42.33 $27.90 $32.69 $ Software Developers, Systems Software 1,392 1,457 $36.90 $38.59 $46.59 $30.99 $36.90 $ Web Developers $23.69 $23.36 $24.05 $19.24 $23.69 $ Database Administrators 264 6,185 $30.99 $32.32 $37.15 $22.53 $30.99 $ Network and Computer Systems Administrators 923 5,526 $29.27 $28.96 $34.48 $24.65 $29.27 $ Computer Network Architects 254 4,085 $36.25 $38.53 $42.64 $30.10 $36.25 $ Computer User Support Specialists 798 8,981 $19.53 $19.97 $22.36 $16.89 $19.53 $ Computer Network Support Specialists 436 3,903 $22.06 $22.87 $28.44 $17.59 $22.06 $ Computer Occupations, All Other 281 6,449 $29.66 $28.03 $37.62 $20.45 $29.66 $36.59 Architecture and Engineering Occupations Computer Hardware Engineers 275 6,174 $54.26 $51.30 $47.64 $46.61 $54.26 $ Electrical Engineers 794 3,539 $39.40 $35.61 $42.15 $32.70 $39.40 $48.68 Office and Administrative Support Occupations Computer Operators 142 6,730 $15.93 $16.97 $19.88 $13.20 $15.93 $ Data Entry Keyers 417 9,362 $14.51 $14.34 $15.51 $12.82 $14.51 $ Word Processors and Typists 232 9,547 $13.64 $14.37 $15.92 $11.79 $13.64 $ Desktop Publishers $18.51 $18.46 $22.30 $15.41 $18.51 $21.85
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