Trends in Employment

1
Trends in Employment Competencies in New England

• Ross Gittell
• James R. Carter Professor
• University of New Hampshire

2
Main Themes

• (1) New Englands Economy Higher Education
  System
• the innovation, productivity and income linkages
  and strengths ..strongly evident in the late
  1990s
• (2) Human Capital Higher Education in the
  region
• need to understand key dimensions of issues,
  challenges and problems
• often attempt to make complex problems simple
  ..this is not appropriate on human capital issues
  and higher education

3
(3) Declining Relevance of Traditional
Definitions and Categories

• Occupational Industry categories and
  definitions and categories are increasingly less
  relevant and useful in human capital development
  and higher education
• people change occupations and careers multiple
  times during their lifetime
• there are no longer traditional industries
  ..industries are constantly changing
• have to move away from thinking of educating
  students for particular industries or occupations

4
(4) Non-Traditional Students

• There are no longer many Traditional Students
• high school graduates often delay post-secondary
  matriculation
• students work and go to school at the same time
• students have significant family responsibilities
• for many students their most significant
  education will take place outside a classroom
• at a distance using technology
• at an internship
• on a team project
• studying abroad

5
(5) Keys for Students and Graduates

• Portfolio of competencies
• need for students to develop range of
  capabilities
• and add to portfolio over time
• Execution Skills
• problem solve
• work with others
• deliver a product or service that meets a
  specific (but ever changing) societal or market
  need
• Attitude and capability to change and
  continuously learn

6
Students/Graduates ...in search of an occupation,
industry and careers

• Students/Graduates in the 21st Century in many
  respects will have to create and then re-create
  their own occupations, industries and careers
• Higher educations challenge is to help give
  students the capacity and competencies to do this
  effectively

7
The Data on Employment and Higher Education in
New England

• Ending with
• What should be in the portfolio of competencies
  of students/graduates
• Strategic areas for higher education in the
  region in human capital development

8
In the last half of the last decade the regions
economy was able to buck longer term relative
decline and lagging population and labor force
growthbut what about the future??
9
Region made good use of limited labor 4 of 6 NE
states rank in top 8 in productivity increases
10
Summary New England Strengths and Weaknesses
11
High Technology employment concentration above US
average in 4 of 6 states
12
Knowledge Jobs (aggregate measure, PPI, 2002)
includes information technology jobs in non-IT
fields
13
Scientists and Engineers in the Workforce in New
England
14
PHD Scientist and Engineering percentages are
even higher...
15
Education Advantages translate into high output
per worker across industries in region
16
New England has not lost its Graduate Education
Advantage
17
Graduate Degree Advantages across different fields
18
Graduate education ties to the economy

• Graduate degree attainment is the most strongly
  statistically correlated to per capita income of
  all the higher education degrees.
• Using the most current data for the 50 US states,
  the correlation statistic of per capita personal
  income with percent of adults with a Graduate
  degree is .78
• The correlation of income to 4-year College
  degree (.54) attainment is also high but not as
  high as graduate degree
• In contrast, the correlation statistic for some
  college with per capita personal income is
  negative (-.46).

19
Current situationthe 2001 employment picture for
graduates

• Relatively strong fields included
• technology jobs in health care (from technician
  to software engineer)
• computer maintenance and services
• wireless technology
• electrical, mechanical, and computer engineering
• A complicated technology employment outlook ...
  On one hand, it is bleak, yet the numbers
  indicate there are job opportunities

20
The New England Economic Outlook
(NEEP/economy.com)
21
What about the future...BLS Projections

• Information on 2000 and projected 2010
  occupational employment developed by the Bureau
  of Labor Statistics
• Part of Occupational Employment Projections
  Program
• Data derived from 2000-10 National Employment
  Matrix
• The information presented part of 2002-2003
  edition of Occupational Projections and Training
  Data.
• Data and projections are available on the BLS
  website http//data.bls.gov/oep/noeted/empoptd.j
  sp

22
Occupations with Largest Increases Over Next
Decade in Employment for US workers with
Bachelors
23
Occupations with largest increases in employment
for workers with Masters
24
Occupations with Largest Increases in Employment
for workers with Doctorates
25
Bio-Tech concentrations only in MA and CT (47
states in US have focused on Bio-Tech)
26
Thinking beyond BioTech Industries in which
technology can be used to solve problems

• Big Problems
• National Defense and Homeland Security
• Education
• Health Care
• Energy (conservation, efficiency and alternative
  sources)
• At Intersection of Economy-Environment Public
  Health
• Transportation (e.g., the Segway)
• Air Quality (e.g., AIRMAP project at UNH)
• Small Problems
• Business applications
• Government (public policies, e-Government)
• Non-profits (management and service delivery)

27
The Defense Industry... evidence of a coming
increase in defense spending employment

• Congress has passed appropriations bills for tens
  of billions of dollars in new defense spending
• Investment analysts project that the defense
  budget will grow a staggering 200 billion, to
  500 billion by 2005
• Pentagon has asked private companies and
  universities to propose a broad array of
  technologies that can help America sniff out
  terrorists

28
Defense Homeland Security Related Opportunities

• In the short term... the main increase will be
  for established weapons systems e.g., missiles
  helicopters..
• will add jobs in weapons production but will not
  require hiring of hoards of designers and
  engineers
• Longer term, there will be need for smarter
  military systems designed for special operations
  and the war against terrorism
• There will be increased need for scientists and
  engineers developing and implementing the new
  systems and their commercial spin-offs

29
Beyond Defense Homeland Security NSF
Information Technology Research program

• The next generation Internet system ...resistant
  to failure and attack
• Software systems that can be used in a wide range
  of applications e.g., environmental sciences,
  health care.
• Optical computer (OptIPuter) focusing on problems
  in the earth sciences and neurosciences
• Using computers to monitor vast radar maps and
  create public warning systems for earthquakes
• In neurosciences ...mapping the human brain at a
  level of resolution well beyond the limits of
  today's technology

30
Issues Challenges

• Demographics
• Decline in Entry Level Workforce
• Aging Workforce
• Educational Advantages at Risk
• Declining advantage in some key fields tied to
  the regional economy

31
The decline in 25-44 more pronounced in New
England than in other regions
32
Science and Engineering Advantages at Risk
33
Engineering Masters Degrees
34
Beyond efforts in particular fields... Where to
focus efforts

• Core competencies
• Non-Traditional students
• Graduate Education

35
What students should be doing from a business
perspective...

• What's most important is to learn to think well
  and acquire basic skills and tools. I'd make sure
  today to take computer classes, and get a good
  foundation in accounting and finance as well as
  marketing. And I'd supplement the formal
  education with as much hands-on work on projects
  as I could get myself into.

36
Quotes from Businesses

• In almost all cases a strong background in
  computer applications usage would be important.
  These are today's tools for analysis and
  communications. Then, the degree of computer
  industry background would vary for finance
  positions it would be less necessary, for
  technical positions, it's obviously essential.
  For sales, it would be very helpful.

37
This is consistent with the current employment
picture for New England graduates...

• In New England.. companies such as Gillette and
  GE Capital have started IT leadership development
  programs
• Financial and insurance industries (Fidelity and
  Liberty Mutual) have need for entry level workers
  with business training and information technology
  skills
• Companies are increasingly hiring graduates with
  IT skills and grooming them for management slots.
  
• For example in 2001, Mount Holyoke's 500 computer
  science grads had no trouble finding jobs, said
  school spokesman David LaChance. "Some received a
  few job offers. Many are working for Morgan
  Stanley, IBM, Amazon.com, Raytheon, and
  Microsoft."

38
Educated Workforce and Knowledge Workers

• Technology can not and will not solve problems
  without educated workforce
• Need smart, technically competent, committed and
  caring people to make it happen

39
Competencies Skills Needed of Graduates

• Analytical with problem solving orientation
• Technological ..hands on ability to use
  technology to solve problems
• Communications
• Written
• Verbal
• Technology-based
• Integrative.. recognize and act on the
  inter-relationships among things (e.g.,
  technology and its application, the
  economy-environment-public health, work family)
• Values-based.. recognize and act on larger
  social responsibility at work and beyond

40
How to get there...

• Balance of liberal and technological education
  (for all)
• Mix of theory, applied and practical experiences
  in college
• liberal arts curriculum, emphasis on
  inter-disciplinary work
• project work in and out of class
• internships (tied to course work and career
  objectives)
• faculty-business exchanges .. business people
  in classroom..faculty externships
• Global perspective.. exposure and awareness of
  other nations and cultures and values
• foreign languages
• study of other cultures and countries
• study abroad

41
Incumbent Worker/Non-Traditional Students

• Ongoing (constant)-education of incumbent workers
  at all levels is important
• increasing share of older workers in nation and
  even more so in the region
• rapid rate of industry and occupational changes
• high percentage of incumbent workers with and w/o
  college degrees expect to go back for graduate
  degrees

42
Non-Traditional Students..NH as an example of the
opportunity and challenge

• In NH one-quarter of all adults report their
  highest level of education as some college
  (19 of those 25)
• 32 in NH with some college expect to obtain a
  college degree in next five years (or 9 of all
  adults in NH)
• Nearly one-half (45) of current college students
  in NH are non-traditional
• 3/4ths of PT students are non-traditional
• 1/5th of FT students are non-traditional
• 20 of 4-yr college graduates in the state expect
  to pursue a graduate degree in the next 5 years
• 10 of 4-yr college graduates and 14 of
  post-graduate degree holders expect to get some
  non-degree training in next 5 yearsneeds/opportun
  ities for advanced certification programs

43
Maintaining the Graduate Education Advantage

• Expanding Graduate education in states other than
  Massachusetts
• Enhancing the role of public institutions in the
  region in Graduate education
• Ensuring a continued strong pipeline of Graduate
  students into the region (with regional
  recruitment efforts and scholarship programs)
• Emphasis on quality of programs, particularly in
  areas tied to the economy (e.g., industries of
  the future)
• Engaging industry in the region more broadly and
  deeply in Graduate education.

44
The challenge.

• Need to understand, continuously track, and
  respond to key human capital opportunities and
  challenges
• Like our students and graduates ..faculty and
  higher education institutions and systems have to
  continuously engage in creation and re-creation