The Labor Market for STEM Skills Jonathan T. Rothwell, PhD Fellow Brookings Institution UNLV September 10, 2014
Why does STEM matter? 1. Enhanced global, national, and regional consumer welfare via enhanced innovation and entrepreneurship 2. Greater prosperity through higher incomes of STEM workers and their colleagues and spending multipliers 3. Private benefits to those who acquire the skills and the owners of companies who employ them
Defining STEM as a set of skills
What is a STEM Job? Conventional View: • Definition uses no clear standard • Professional jobs only • 5% of US workforce • 80 percent have a bachelor’s degree or higher
How Brookings defines STEM • Based on O*NET survey of worker knowledge • 21% of US workforce • 50 percent have a bachelor’s degree or higher • Higher correlation with wages and cognitive skill
Major Occupational Categories Sorted by STEM Score, with Share of Jobs that are STEM, 2011 High-STEM, Percentage of Jobs Architecture and engineering 100% Life, physical, and social science 87% Healthcare practitioner and technical 76% Computer and mathematical science 100% Installation, maintenance, and repair 53% Management 27% Construction and extraction 40% Education, training, and library 9% Business and financial operations 42% Farming, fishing, and forestry 8% Production 23% Arts, design, entertainment, sports, and media 16% Sales and related 0% Legal 0% Source: The Hidden STEM Economy (Brookings Institution, 2013)
The US STEM Labor Market
The STEM Labor Market • Long-run shortage, temporarily ameliorated by the recession Supply Demand • Weak response in supply, even as salaries have increased
Wage Premium for STEM Skills, Controlling for Experience, Education, and Sex, 1950-2012 25.0% 20.0% 15.0% Standard Deviation in Occupational STEM Skill 10.0% 5.0% 0.0% 1950 1960 1970 1980 1990 2000 2012 Analysis of data from Census Bureau via Integrated Public Use Microdata Series and O*NET. For methods, see Jonathan Rothwell, “Hidden STEM Economy,” (Brookings Institution, 2012).
Growth in real median earnings by occupation, 2000-2013 (Source: BLS Current Population Survey) 1.10 1.08 1.06 Earnings index, 2000=1 1.04 architects and engineers computer and math 1.02 scientists healthcare practitioners 1.00 all occupation 0.98 0.96 0.94 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Average salaries of software developers compared to all other workers, in 2013 dollars (Source: Analysis of Current Population Survey, via IPUMS) $90,000 $80,000 $70,000 $60,000 $50,000 Software Developers $40,000 All workers $30,000 $20,000 $10,000 $- 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
From 2009-2013, 3 out of every 10 jobs created on net have been in computer and healthcare practitioner occupations Growth rate in employment by occupation, 2009- 2013 16.0% 14.9% 14.0% 12.0% 10.2% 10.0% 8.0% 6.0% 6.0% 4.6% 4.0% 2.0% 0.0% USA labor force architects and engineers healthcare practitioner computer and math workers Source: BLS CPS
U.S. Hiring Difficulty Index, 3-month average Source: Brookings analysis of JOLTS data, 2004-2014 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 JOLTS Hiring Difficulty Index, 3-month average Index = job openings last month per hire this month
Percent of small businesses reporting few or no qualified applicants, 2009 to May 2014 Source: William C. Dunkelbery and Holly Wade, "NFIB Small Business Economic Trends," (NFIB Research Foundation, June 2014). 50 45 40 35 30 25 20 15 10 5 0
Openings per unemployed worker, April 2014 (Source: Conference Board, HWOL) Farming, fishing, and forestry 0.0 Construction and extraction 0.1 Personal care and service 0.2 Building and grounds cleaning and… 0.2 Production 0.2 Protective service 0.3 Food preparation and serving related 0.3 Transportation and material moving 0.4 Legal 0.4 Education, training, and library 0.4 Healthcare support 0.5 Office and administrative support 0.5 USA 0.5 Arts, design, entertainment, sports, and media 0.5 Sales and related 0.6 Life, physical, and social science 0.7 Management 0.9 Installation, maintenance, and repair 1.0 Business and financial operations 1.1 Community and social services 1.5 Architecture and engineering 2.5 Healthcare practitioners and technical 3.1 Computer and mathematical science 4.3 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Median Duration All STEM: 11 days All Non-STEM: 5 days Median duration of job advertisements posted in 2013-Q1 in days by STEM skill and minimum education required 30 25 25 21 18 20 14 13 15 12 11 8 10 6 5 5 5 2 STEM 0 Non-STEM Source: “Still Searching: Job Vacancies and STEM Skills” (Brookings)
Median duration of 2013-Q1 vacancy advertisement by occupation (Source: Brookings analysis of Burning Glass) 18 STEM vacancies are the hardest to fill 15 13 13 11 8 8 7 7 5 5 4 3 2 1 1 1 1 1 1 1 1
The Computer Skills Most Commonly Requested by Employers by number of advertised vacancies in 2013 (Source: Brookings analysis of Burning Glass) 250,000 200,000 150,000 100,000 50,000 0
Regional Variation in STEM Markets
Percentage of Advertised Vacancies in STEM Occupations for metro areas with at least 50,000 vacancies, 2013 (Source: Brookings analysis of Burning Glass)
Average occupational hiring difficulty by regional unemployment rate (Source: Brookings analysis of Burning Glass and 2012 Census microdata via IPUMS) 16 14.3 13.7 14 12 10 8.5 7.4 8 Median duration of opening (days) for occupational group 6 4 2 0 High Moderately high Moderately low Low unemployment unemployment (<5%, >=3%) unemployment (>10%) (<=10%, >=5%) (<3%)
How does the STEM labor market look in Nevada?
Of Nevada's 20 Most Common Occupations with Vacancies Advertised in 2013, 9 are STEM jobs Se�retaries a�d Ad�i�istrative Assista�ts, Ex�ept Legal,… Registered Nurses Sales Represe�tatives, Wholesale a�d Ma�ufa�turi�g,… Patient Representatives Bookkeeping, Accounting, and Auditing Clerks Retail Salespersons Auditors Software Developers, Applications Maintenance and Repair Workers, General Medical and Health Services Managers Information Technology Project Managers Computer User Support Specialists Office Clerks, General First-Line Supervisors of Retail Sales Workers Informatics Nurse Specialists Network and Computer Systems Administrators First-Li�e Supervisors of Offi�e a�d Ad�i�istrative… Financial Managers, Branch or Department Sales Managers Web Developers 0 2,000 4,000 6,000 8,000 10,000 12,000
In Nevada’s professional level STEM economy, relatively low demand is met with even lower supply Demand 24.4% Share of total openings Supply typically requiring �a�helor’s degree or higher in STEM occupations (2013) 16.9% Vacancies requiring versus STEM degree bachelor's degree and attainment for population 25 and older STEM (2012), Las Vegas MSA, STEM bachelor's Source: Brookings analysis of 2013Q4 degree attainment rate Burning Glass data, O*NET, and 2012 American Community Survey 8.6% 6.2% Nevada USA
STEM jobs in Nevada pay higher salaries at high and low levels of education $83,925 Wages of STEM and $57,923 $56,584 non-STEM jobs by educational requirements of STEM occupations, Nevada, 2013 Non-STEM $32,743 Source: Brookings analysis of Bureau of Labor Statistics OES data and O*NET Bachelor's or higher Sub-bachelor's level
STEM workers in Nevada experience lower unemployment at both high and mid levels of educational attainment 9.5% 2012 Unemployment 6.5% 6.3% Rate in Nevada by STEM status of Occupation and STEM occupation Level of 4.0% Education Non-STEM (Source: Analysis of 2012 American occupation Community Survey via IPUMS and O*NET) Bachelor's degree or Some college or higher associate's degree
Median duration of vacancies in Las Vegas for major occupations, 2013-Q1 (Source: Brookings analysis of Burning Glass data, 2013-Q1 Life, physical, and social science Education, training, and library Architecture and engineering Computer and mathematical science Management Sales and related Healthcare practitioner and technical Community and social services Farming, fishing, and forestry Business and financial operations Installation, maintenance, and repair Food preparation and serving related Legal Construction and extraction Transportation and material moving Building and grounds cleaning and maintenance Protective service Office and administrative support Production Arts, design, entertainment, sports, and media Personal care and service Healthcare support 0 5 10 15 20 25
Recommend
More recommend
