Gateway Skills 2007: Mathematics & Science – Intensive Occupations Key Findings • According to the most recent figures, there were 26,104 mathematics-intensive (annual mean wage $69,614) and 49,702 science-intensive jobs (annual mean wage $81,834) in Missouri, which all paid much higher salaries than the state average wage of $34,870. Workers in mathematics-intensive occupations accounted for 0.89% of all employment statewide with workers in science-intensive occupations accounting for 1.70%. • Most mathematics-intensive jobs were in Professional and Business Services (11,254 jobs), Information (4,538 jobs), Education and Health Services (2,151 jobs), Government (3,071 jobs), and Manufacturing (2,343 jobs). There is a projected need for an additional 6,400 mathematics-intensive workers through 2014 in Missouri. • Most science-intensive jobs were in Education and Health Services (13,421), Professional and Business Services (15,051), Manufacturing (8,649), Government (4,472), Information (3,537), and Self-Employed Workers (1,928). There is a projected need for an additional 9,200 science-intensive workers through 2014 in Missouri. • In general, mean annual wages per job for most mathematics-intensive occupations were below the national averages. However, mean annual wages per job for many of the science-intensive occupations in Missouri were above the national average. • Missouri institutions of higher education are producing fewer college graduates in science and mathematics-related fields than they did 20 years ago. The proportion of graduates obtaining post-secondary degrees (bachelor’s, master’s, or doctorate) in mathematics has been steadily decreasing. The proportion of graduates attaining a doctorate degree in life/physical science and engineering has increased over the years but the proportion of students gaining a bachelor’s or master’s degree in these fields is decreasing. The exception to this declining trend is in computer sciences, where the number of graduates attaining post-secondary degrees has significantly increased. • While 41% of Missouri’s 10th graders were proficient or advanced in mathematics, recent changes in testing methodology create difficulty in comparing historical levels of proficiency. Of concern is the fact that only 6% of Missouri 10th graders were proficient or advanced in science. 1 Table of Contents Key Findings 1 Overview 3 Methods 4 Mathematics-Intensive Occupations Summary 6 Science-Intensive Occupations Summary 17 References 33 2 Overview At the turn of the millennium, it became evident that our nation’s economy was in the process of transitioning from an asset-based to an intangible asset-based system.1 In this new economy, copyrights, patents, branding, innovation, and knowledge are valued over more tangible assets such as stock or equipment. These intangible assets are critical in terms of making a company competitive on both a national and international scale. Many of these assets are products of industry innovation, spearheaded by human talent. Human innovation can provide industry with technical knowledge, help create new scientific discoveries and applications, and develop new ways in which to commercialize and position new products.2 “When businesses make location decisions, they are on the lookout not for iron ore or forests, rivers, or highways, but for people with ideas. The key to success in the knowledge-based economy is what economists call high human capital – what most of us would call talent.” Florida, R. & Gates, G. Technology and Tolerance: Diversity and High Tech Growth As such, it has been argued that both state and national economic growth are directly tied to innovation.3 To remain competitive in a global market over the long-term, states must focus on educating their current and future workforce in science and mathematics to align worker skills with the needs of innovative businesses. A number of different economic development strategies over the past few years have addressed the need to build the innovative capacity of states by: (1) providing training and education to meet industry needs, (2) promoting research and development in local universities and in the private sector, (3) supporting local entrepreneurs by providing venture capital funds and incentives for job creation, and (4) developing rural areas by supporting innovations in agriculture and supporting small business development.4 This report endorses the need to provide training and education to meet the staffing requirements of innovative and high-tech industries in Missouri. High-tech industries are defined as industries that devote a high proportion of expenditures to research and development activities and employ a large amount of scientific, technical, and engineering personnel.5 However, this analysis takes a unique approach by focusing on high-tech occupations over industries, i.e. those that require a high degree of knowledge in mathematics and science – two skills that have, in the past, been linked to occupations with job security, advancement, and high wages. 3 Methods Occupations were classified as mathematics or science intensive if the combined importance and level of mathematics or science skills needed to perform a particular job were two or more standard deviations above the mean mathematics or science skill level for all occupations. Skills refer to the developed capacities that facilitate learning and/or performance within occupations. Occupational skills data was taken from O*NET to be used in the analysis. For occupations that O*NET had divided out into several different occupations, the average of the importance (IM) for each occupation was calculated by totaling the IM scores for each of the new occupations and dividing by the number of new occupations that O*NET had created. This same process was used to create an average of the level (LV) for each occupation. IM and LV scores were then summed and standardized. The scores were standardized based on a 13 point scale, which is the result of summing both the 5 point importance scale and the 7 point level scale. This inherently weights the level of a skill over the importance in the standardized score. This process generated a skills proficiency score that ranged from 0.0 (lowest skill proficiency) to 100.0 (highest skill proficiency). SKILL-PROFICIENCYoccupationi = (((SumIMLV-1) / (13-1)) *100) Where: SumIMLV = AvgIM + AvgLV AvgIM = Average Skill Importance Score AvgLV = Average Skill Level (Frequency of Use) Score The data for this analysis comes from three principal sources. Information on occupational skill requirements was taken from a national database called the Occupational Information Network (O*NET), maintained by the U.S. Department of Labor. Occupational wage data for Missouri was taken from Occupational Employment Statistics (OES), maintained by the Missouri Department of Economic Development and the U.S. Department of Labor. Occupational employment data for Missouri was taken from Employment Projections, maintained by the Missouri Department of Economic Development and the U.S. Department of Labor. 4 Occupational Information Network (O*NET) O*NET is a comprehensive database of worker attributes and job characteristics. The database contains information on knowledge, skill and ability requirements for 1,122 occupations. Although it is sometimes difficult to differentiate among knowledge, skill and ability in practice, they are distinct concepts in theory. Knowledge refers to information that has been acquired though formal education, training or specific experiences. Skills refer to developed capacities that facilitate learning or performance. Abilities are defined as underlying characteristics of individuals, which are related to effective or superior performance in a job. The knowledge and skills measures are used in this analysis. It is important to remember that knowledge and skills in this study do not measure an individual worker's knowledge and skills. Instead, the knowledge and skills are measures of the average level required by the performance of certain functions in that occupation. Consequently, the score for one worker on any knowledge or skill may differ from another worker within the same occupation. Occupational Employment Statistics (OES) The Occupational Employment Statistics (OES) program conducts a yearly mail survey designed to produce estimates of employment and wages for specific occupations. The OES program collects data on wage and salary workers in non-farm establishments in order to produce employment and wage estimates for over 700 occupations. Data from self-employed persons are not collected and are not included in the estimates. The OES program produces these occupational estimates by geographic area and by industry. Estimates based on geographic areas are available at the national, state and metropolitan area levels. Occupational employment and wage estimates for over 400 industry classifications are also available. The Missouri Department of Economic Development conducts the OES survey for the State of Missouri. Each year more than 10,000 employers will be surveyed through random selection based on their industrial classification, size and geographic location. In addition to the statewide data, there are tabulations for each of the state's six metropolitan statistical areas and thirteen Local Workforce Investment Areas. Occupational Employment Projections Occupational employment projections are developed using data from Missouri's occupational employment and wage survey along with unemployment insurance information provided by the State of Missouri and the U.S. Bureau of Labor Statistics. OES and Quarterly Census of Employment and Wages (QCEW) data are the basis for the occupational data used in the projections. The data collected reflect the Standard Occupational Classification (SOC). Many occupations are not identified separately in the SOC and are included in aggregate categories. Employment may not be sufficient to warrant the development of occupational projections in every occupation in each state, or the data may be confidential. The U.S. Employment and Training Administration provides funding for the employment projections program. 5 Mathematics-Intensive Occupations Summary According to 2004 estimates, there were 26,104 mathematics-intensive jobs in Missouri earning an annual mean wage of $69,614 per job, which is much higher than the state average wage of $34,870. The projected number of mathematics- intensive jobs for 2014 is expected to increase by more than 24% to a total of 32,533 jobs. The average level of educational attainment for individuals employed in mathematics-intensive occupations in 2004 was a bachelor’s degree. In addition, workers in mathematics-intensive occupations accounted for 0.89% of all employment statewide. Most mathematics-intensive jobs were in Professional and Business Services, Information, Government, Manufacturing, and Education and Health Services. The projected net change of mathematics-intensive occupations from 2004 to 2014 is over 6,400 jobs. Nationally, there were 1.5 million mathematics-intensive jobs. Mathmatics-Intensive Occupations - Employment by Industry in Missouri Industry 2004 Employment 2014 Employment Net Change Construction 458 540 82 Education & Health Services 2,151 2,656 505 Financial Activities 1,012 1,268 256 Government 3,071 3,422 351 Information 4,538 5,953 1,415 Manufacturing 2,343 2,505 162 Natural Resources & Mining 81 72 -9 Other Services (Except Government) 54 77 23 Professional & Business Services 11,254 14,763 3,509 Self-Employed Workers 602 651 49 Trade, Transportation, & Utilities 538 624 86 Missouri Total 26,104 32,533 6,429 Estimated annual average employment and wages for 2004. Number may not total due to rounding and survey averages. NA: Number not calculated by the U.S. Bureau of Labor Statistics Source: Analysis of Occupational Employment Statistics and O*NET by MERIC 6 In Missouri, mathematics-intensive occupations with the highest employment base were Computer Software Engineers, Applications (11,063 jobs at $73,690 per job); Civil Engineers (5,085 jobs at $65,430); Computer Software Engineers, Systems Software (3,536 jobs at $72,400 per job); Electronics Engineers (1,412 jobs at $70,110); and Surveyors (1,023 jobs at $41,020 per job). Occupations with the largest percentage of national mean wages were Aerospace Engineering Technicians (115.26% of national mean wages), Physicists (106.49% of national mean wages), Mathematical Science Teachers, Higher Education (97.02% of national mean wages), Civil Engineers (95.83% of national mean wages), and Engineering Teachers, Higher Education (95.82% of national mean wages). From 2004 to 2014, mathematics-intensive occupations with the largest projected percent increases in employment are: • Computer Software Engineers, Systems Software (1,389 jobs at 35.93% change) • Computer Software Engineers, Applications (3,794 jobs at 31.67% change) • Mathematical Science Teachers, Higher Education (176 jobs at 31.33% change) • Engineering Teachers, Higher Education (90 jobs at 29.80% change) • Agricultural Engineers (16 jobs at 14.29% change) 7 Mathematics-Intensive Occupations – Employment and Wages in Missouri and the United States Missouri United States SOC Occupation Career 2004 2014 Entry Mean Expert Mean Wage Grade Employment Employment Wage Wage Wage 15-1031 Computer Software Engineers, Applications A+ 11,063 14,857 $47,640 $73,690 $86,720 $78,570 17-2051 Civil Engineers B+ 5,085 5,583 $45,000 $65,430 $75,650 $68,280 15-1032 Computer Software Engineers, Software A- 3,536 4,925 $55,180 $72,400 $81,010 $83,460 17-2072 Electronics Engineers, Except Computer A- 1,412 1,616 $49,420 $70,110 $80,450 $78,620 17-1022 Surveyors B+ 1,023 1,127 $26,230 $41,020 $48,410 $47,280 25-1022 Mathematical Science Teachers, Higher Educ. B 953 1,129 $31,520 $56,360 $68,770 $58,090 15-2031 Operations Research Analysts D 699 724 $41,700 $61,020 $70,680 $63,760 25-1032 Engineering Teachers, Higher Educ. B 504 594 $41,790 $75,600 $92,500 $78,900 15-2011 Actuaries B 484 569 ND ND ND $89,230 15-2041 Statisticians D- 348 342 $33,130 $51,830 $61,180 $63,950 17-2061 Computer Hardware Engineers B 216 247 $49,980 $73,250 $84,890 $85,540 17-2021 Agricultural Engineers B- ND ND ND ND ND $63,030 17-2151 Mining and Geological Engineers D 140 136 $40,850 $62,420 $73,210 $74,610 19-2042 Geoscientists D- 140 144 $36,960 $52,310 $59,980 $77,890 19-2043 Hydrologists B 99 111 $41,460 $61,250 $71,140 $64,130 17-2161 Nuclear Engineers B- ND ND ND ND ND $89,320 17-3021 Aerospace Engineering Technicians B- ND ND $42,680 $62,160 $71,900 $53,930 19-2012 Physicists D 50 51 $61,840 $95,300 $112,030 $89,490 15-2091 Mathematical Technicians F+ ND ND ND ND ND $43,970 17-2171 Petroleum Engineers D 32 31 $39,130 $54,940 $62,850 $92,840 Estimated annual average employment and wages for 2004. Projected annual average employment for 2014. Source: Analysis of Occupational Employment Projections and Occupational Employment Statistics by MERIC. ND: Non-disclosed data due to confidentiality restrictions from the U.S. Bureau of Labor Statistics. 8 Mathematics-Intensive Occupations – Missouri Percent of US Wages and Projected Employment Growth Total Growth MO % of MO Employment MO Employment MO Mean US Mean SOC Occupation Openings US Mean 2004 2014 Wage Wage 2004-2014 Wage 15-1031 Computer Software Engineers, Applications 11,063 14,857 3,794 $73,690 $78,570 93.79 17-2051 Civil Engineers 5,085 5,583 498 $65,430 $68,280 95.83 15-1032 Computer Software Engineers, Software 3,536 4,925 1,389 $72,400 $83,460 86.75 17-2072 Electronics Engineers, Except Computer 1,412 1,616 204 $70,110 $78,620 89.18 17-1022 Surveyors 1,023 1,127 104 $41,020 $47,280 86.76 25-1022 Mathematical Science Teachers, Higher Educ. 953 1,129 176 $56,360 $58,090 97.02 15-2031 Operations Research Analysts 699 724 25 $61,020 $63,760 95.70 25-1032 Engineering Teachers, Higher Educ. 504 594 90 $75,600 $78,900 95.82 15-2011 Actuaries 484 569 85 ND $89,230 0.00 15-2041 Statisticians 348 342 0 $51,830 $63,950 81.05 17-2061 Computer Hardware Engineers 216 247 31 $73,250 $85,540 85.63 17-2021 Agricultural Engineers ND ND 16 ND $63,030 0.00 17-2151 Mining and Geological Engineers 140 136 0 $62,420 $74,610 83.66 19-2042 Geoscientists 140 144 4 $52,310 $77,890 67.16 19-2043 Hydrologists 99 111 12 $61,250 $64,130 95.51 17-2161 Nuclear Engineers ND ND 5 ND $89,320 0.00 17-3021 Aerospace Engineering Technicians ND ND 6 $62,160 $53,930 115.26 19-2012 Physicists 50 51 1 $95,300 $89,490 106.49 15-2091 Mathematical Technicians ND ND 0 ND $43,970 0.00 17-2171 Petroleum Engineers 32 31 0 $54,940 $92,840 59.18 Estimated annual average employment and wages for 2004. Projected annual average employment for 2014. Source: Analysis of Occupational Employment Projections and Occupational Employment Statistics by MERIC. ND: Non-disclosed data due to confidentiality restrictions from the U.S. Bureau of Labor Statistics. 9