Monday, April 29, 2013

IT Industry Refuses Unemployed Professionals

 

  • Employment levels in Computer-related occupations grew by 173,500 over 2011 and 2012.

  • Why did unemployment levels (comprised exclusively of experienced professionals) only decline by 6,667?

Sections:

Overview:
Less than 5% of experienced unemployed computer professionals become re-employed:
Historical employment levels in Computer-related occupations:
Sources for IT talent acquisition in Computer-related occupations:
Appendix A:
Data resources:

Overview:

Data from the Current Population Survey (CPS) indicates that unemployed computer professionals are benefiting from less than 5% of 173,500 in new jobs created in the recovery of 2011-12.  These are experienced professionals who are actively seeking employment and have not (yet) taken employment in another field to get by.

To qualify for the CPS occupational unemployment statistic, the unemployed professional must have held a position in the occupation as their last job.  Thus, these unemployment statistics do not include new college graduates or discouraged professionals who have given up looking for work. Additionally, if a computer professional takes a construction job and becomes unemployed s/he is no longer included on the Computer-related unemployment statistic.

Pro-guest worker pundits present seemingly low unemployment numbers for the Computer-related  occupations and leave the reader, or Congressman, to errantly assume the CPS occupational statistic is comparable to the “headline” unemployment statistic, which is not filtered by occupation, or the prior job function performed.

Considering the fact that the CPS unemployment levels can only include experienced professionals, we can measure the change in unemployment levels in direct comparison with the change in employment.  In simple terms, “How much do unemployment levels (comprised of only experienced professionals) go down when employment levels go up?”  

Less than 5% of experienced unemployed become re-employed

Methodology: Table 1 displays occupational averages of the employment and unemployment level (growth – loss) aggregates from two years of CPS data. (See Appendix A)

  • Quarter I 2011 is subtracted from Quarter I 2012

  • Quarter II 2011 is subtracted from Quarter II 2012

  • Quarter III 2011 is subtracted from Quarter III 2012

  • Quarter IV 2011 is subtracted from Quarter IV 2012

From 2011 forward, Computer-related occupations reflect the 2010 Standard Occupational Classification (SOC).

Instructions provided with the Current Population Survey: “Occupation data for unemployed persons refer to the experienced unemployed only, classified according to the occupation of their last job.”

Table 1 displays the averages of aggregate tables produced from the 2011 and 2012, quarterly reports. The instructions provided with the CPS data cautions that the data should be “smoothed” over four Quarters due to variations in sampling levels. Effectively, Table 1 and Table 2, represent 2 years of smoothed data -- Quarter I 2011 through Quarter IV 2012.

Table 1 (Growth – Loss Computer-related occupations 2011-12)

Employment Loss/Gain by Occupation in Computer Related Occupations Qtr I 2011 through Qtr IV 2012
Eight Quarters Smoothed Growth Loss

Employed Unemployed
Computer and information research scientists 8,750 NA
Computer systems analysts 51,750 7,250
Information security analysts 7,500 NA
Computer programmers 20,750 4,750
Software developers, applications and systems software 38,000 -12,250
Web developers 8,000 -750
Computer support specialists 14,750 -2,750
Database administrators -32,500 1,333
Network and computer systems administrators -7,250 -250
Computer network architects 29,500 NA
Computer occupations, all other 34,250 -4,000




Employment Growth vs Experienced Professionals re-employed 173,500 -6,667 3.84%

NA: Unemployment data not reported for one or more quarter (CPS quarters are calendar based)
Table 1 displays the average of eight 2011 and 2012 CPS occupational reports. 

The average employment growth for the period is 173,500, yet unemployment levels, comprised exclusively of experienced professionals, declined by only 6,667. The result, is that only 3.84% of new employment growth went to officially unemployed professionals with experience in the occupation.

Notably, unemployment increased in “Computer systems analysts” and “Computer programmers” while employment also increased.

In Table 2 (below),  employment growth and loss is removed from the three occupations where the CPS unemployment level was not reported in one or more Quarters.

Table 2 (Growth – Loss Computer-related occupations 2011-12 (Isolated occupations))

Employment Loss/Gain by Occupation in Computer Related Occupations Qtr I 2011 through Qtr IV 2012
Eight Quarters Smoothed Growth Loss

Employed Unemployed
Computer and information research scientists NA NA
Computer systems analysts 51,750 7,250
Information security analysts NA NA
Computer programmers 20,750 4,750
Software developers, applications and systems software 38,000 -12,250
Web developers 8,000 -750
Computer support specialists 14,750 -2,750
Database administrators -21,000 1,333
Network and computer systems administrators -7,250 -250
Computer network architects NA NA
Computer occupations, all other 34,250 -4,000




Employment Growth vs Experienced Professionals re-employed 139,250 -6,667 4.79%

NA: Unemployment data not reported for one or more quarter (CPS quarters are calendar based)

Table 2 produces a slightly more favorable outcome for experienced professionals, however, the data still indicates that some 95% of employment growth almost certainly went to inexperienced college graduates and/or temporary foreign-workers.   (Temporary foreign workers have first “dibs” on new employment as the necessary provision for entrance into the U.S.)

Conservatively, out of 139,250 new Computer-related jobs, only 6,667 (4.79%) were filled by experienced professionals who qualified as unemployed (actively seeking employment).

Observations from Table 2

  • Computer systems analysts employment levels increased, but unemployment levels also increased.

  • Software developer, applications and systems software professionals had a 1 in 3 probability of becoming re-employed

  • Computer programmers employment levels increased, but unemployment levels also increased

  • Web developers had a 1 in 10 probability of becoming re-employed

  • Computer support specialists had roughly a 2 in 10 probability of becoming re-employed

  • Database administrators employment levels declined and unemployment levels also increased

  • Computer occupation, all other had a little better than 1 in 10 probability of becoming re-employed

Historical employment levels in  Computer-related occupations

Historical employment growth for Computer-related occupations was only 16,545 per year from 2000 to 2010. An average of 84,160, Computer and Information Sciences and Support Services degrees awarded to citizens and permanent residents annually.

New H-1B visas in Computer-related occupations averaged 53,204 per year from 2000 to 2011. Additionally, H-1B visa holders can adjust status to become permanent residents, so temporary immigration is a solution to a problem that does not exist.

Table 3

Computer-related Employed (000s) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Computer scientists and systems analysts 835 734 682 722 700 745 715 825 837 759 784
Computer programmers 745 689 630 563 564 581 562 526 534 498 470
Computer software engineers 739 745 715 758 813 832 846 907 1034 952 1026
Computer support specialists 350 355 353 330 325 334 314 332 382 384 388
Database administrators 54 66 84 72 94 89 90 104 93 110 101
Network and computer systems administrators 154 185 179 176 190 200 180 214 227 207 229
Network systems and data communications analysts 305 353 328 359 312 322 356 383 422 401 366












Computer-related Employment Levels 3,182 3,127 2,971 2,980 2,998 3,103 3,063 3,291 3,529 3,311 3,364












Employment Level Change 2000 – 2010 182,000









Average Employment growth 2000 – 2010 16,545









Employment Level Low (2003) 2,980,000







Employment Level High (2008) 3,529,000


















High – Low Fluctuation 549,000 15.6%








Sustained Change (2000 to 2010) 182,000 5.2%








Disposable workforce 367,000 10.4%








Between 2006 and 2008 employment levels in Computer-related occupations grew by 466,000 (15.21%).  Even at this rate of  expansion, unemployment levels went from 2.3% in to 2006 to 2.8% during the peak of employment in 2008.  In 2009, employment levels dropped by 218,000, while the unemployment rate climbed to 5.5%,  2.4 times the 2006 unemployment rate.

Table 4 Unemployment rates

Unemployment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Computer scientists and systems analysts 2.3 2.8 4.4 5.2 3.9 3.1 2.7 2.2 2.3 6.1 5.9
Computer programmers 2.0 4.0 6.1 6.4 5.8 2.3 2.4 2.2 3.6 4.8 5.7
Computer software engineers 1.7 4.2 4.7 5.2 3.3 2.4 2.1 1.8 1.7 4.5 4.6
Computer support specialists 3.4 4.2 5.4 5.4 4.6 3.4 3.4 3.9 3.9 6.2 7.7
Database administrators 3.0 2.6 2.9 6.6 2.0 4.4 0.4 0.8 2.2 4.7 2.9
Network and computer systems administrators 1.3 2.1 6.0 5.3 3.4 3.9 2.5 2.3 3.0 7.0 5.4
Network systems and data communications analysts 2.8 4.6 4.3 6.5 5.8 3.8 2.6 1.6 3.0 5.1 4.4












Average Unemployment 2.4 3.5 4.8 5.8 4.1 3.3 2.3 2.1 2.8 5.5 5.2

NOTE:  Unemployment for occupations refers to the experienced unemployed (those with prior work experience), classified according to their last job.
This SOC-based occupational classification system was introduced in 2003 and comparable data are available only back to 2000.
SOURCE:  Current Population Survey (CPS), Bureau of Labor Statistics

 

Sources for IT talent acquisition in Computer-related occupations 

  • Average (Experienced) Unemployed (2012) = 142,000
  • Average US Citizen/Perm Resident CS & CIS degrees = 84,160
  • Average Temporary Resident CS & CIS degrees = 11,810
  • Average Comp-related new H-1B visa = 53,204
  • Average Comp-related new L-1 visa = Undisclosed by USCIS
Total = 291,174

 Table 5: Unemployed – actively seeking employment with experience in field as last position

2011 Unemployed by Qtr.

2012 Unemployed by Qtr.

I 159,000 I 166,000
II 128,000 II 138,000
III 151,000 III 134,000
IV 144,000 IV 130,000




Avg. 145,500 Avg. 142,000

Table 6: Computer and Information Sciences and Support Services degrees awarded to Citizens and Permanent Residents.

U.S. Citizens and Permanent Residents:Degrees/Awards Conferred by Race
Year Doctorate Degrees Master's Degrees Bachelor's Degrees Associate's Degrees Total
1999 471 7,438 28,165 18,768 54,842
2000 402 8,362 34,619 23,085 66,468
2001 395 9,091 40,192 29,396 79,074
2002 410 9,252 45,797 34,553 90,012
2003 413 10,423 53,072 45,392 109,300
2004 455 11,312 54,908 41,281 107,956
2005 500 10,975 50,597 35,766 97,838
2006 551 10,489 44,901 30,981 86,922
2007 680 10,027 40,163 27,543 78,413
2008 518 9,746 37,118 28,159 75,541
2009 456 9,641 36,677 29,751 76,525
2010 NA 10,066 38,240 32,229 80,535
2011 NA 10,786 41,558 37,356 89,700






Total 5,251 127,608 546,007 414,260 1,093,126






Average yr. 477 9,816 42,001 31,866 84,160

(NCES population of institutions)
Academic Discipline, 2-digit Classification of Instructional Program (CIP): 11 Computer and Information Sciences and Support Services

Table 7: Computer and Information Sciences and Support Services degrees awarded to Temporary Residents.

Temporary Residents: Degrees/Awards Conferred by Race
Year Doctorate Degrees Master's Degrees Bachelor's Degrees Associate's Degrees Total
1999 334 5,378 2,260 404 8,376
2000 375 6,624 2,900 491 10,390
2001 373 7,761 3,405 717 12,256
2002 340 7,713 3,909 1,025 12,987
2003 403 9,167 4,854 1,178 15,602
2004 455 8,896 5,060 1,042 15,453
2005 621 7,514 3,991 785 12,911
2006 865 6,649 3,099 550 11,163
2007 917 6,287 2,433 428 10,065
2008 820 7,405 1,804 404 10,433
2009 507 8,347 1,819 489 11,162
2010 NA 7,955 1,867 503 10,325
2011 NA 8,733 2,028 555 11,316






Total 6,010 98,429 39,429 8,571 152,439






Average yr. 546 7,571 3,033 659 11,810

(NCES population of institutions)
Academic Discipline, 2-digit Classification of Instructional Program (CIP): 11 Computer and Information Sciences and Support Services

 

Table 8: H-1B Visa Initial Employment Approvals (Avg. Comp-related 53,204 per year)

H-1B Initial Employment in Computer-related occupations (3 year visa)
Fiscal Year Initial Employment Computer-Related Occupations Percent
2000 135,362 74,551 55.1%
2001 200,116 110,713 55.3%
2002 102,667 25,637 25.0%
2003 104,458 28,879 27.6%
2004 129,703 56,559 43.6%
2005 115,662 52,352 45.3%
2006 109,408 56,393 51.5%
2007 119,813 62,268 52.0%
2008 109,228 58,074 53.2%
2009 86,062 29,793 34.6%
2010 75,825 31,661 41.8%
2011 106,445 51,570 48.4%




Totals 1,394,749 638,450 45.8%
Source: USCIS Characteristics of Specialty Occupation Workers (H-1B): Fiscal Year 20xx[23]

 

Appendix A

The following Occupational Growth – Loss tables were uses to create Table 1 and Table 2.

From Quarter I 2011 to Quarter I 2012, Current Population Survey indicates that employment increased by 220,000 unemployment decreased by 2,000

Employment Loss/Gain by Occupation in Computer Related Occupations Q1 2011 to Q1 2012

Growth Loss

Employed Unemployed
Computer and information research scientists 10,000 NA
Computer systems analysts 65,000 7,000
Information security analysts 4,000 NA
Computer programmers 59,000 -3,000
Software developers, applications and systems software -34,000 -11,000
Web developers 54,000 5,000
Computer support specialists -32,000 -5,000
Database administrators -67,000 NA
Network and computer systems administrators -3,000 2,000
Computer network architects 23,000 NA
Computer occupations, all other 141,000 3,000




Employment Growth vs Experienced Professionals re-employed 220,000 -2,000 -0.91%

From Quarter II 2011 to Quarter II 2012, Current Population Survey indicates that employment increased by 61,000 unemployment increased by 10,000

 

Employment Loss/Gain by Occupation in Computer Related Occupations Q2 2011 to Q2 2012

Growth Loss

Employed Unemployed
Computer and information research scientists 11,000 NA
Computer systems analysts 53,000 8,000
Information security analysts -3,000 NA
Computer programmers 29,000 2,000
Software developers, applications and systems software -28,000 -16,000
Web developers -12,000 -4,000
Computer support specialists 55,000 4,000
Database administrators -55,000 2,000
Network and computer systems administrators -36,000 7,000
Computer network architects 52,000 0
Computer occupations, all other -5,000 7,000




Employment Growth vs Experienced Professionals re-employed 61,000 10,000 16.39%

From Quarter III 2011 to Quarter III 2012, Current Population Survey indicates that employment increased by 83,000 unemployment decreased by 21,000

Employment Loss/Gain by Occupation in Computer Related Occupations Q3 2011 to Q3 2012

Growth Loss

Employed Unemployed
Computer and information research scientists 16,000 NA
Computer systems analysts 37,000 9,000
Information security analysts 15,000 NA
Computer programmers -4,000 15,000
Software developers, applications and systems software 52,000 -10,000
Web developers -13,000 -3,000
Computer support specialists -2,000 -5,000
Database administrators -17,000 1,000
Network and computer systems administrators -3,000 -7,000
Computer network architects 8,000 NA
Computer occupations, all other -6,000 -21,000




Employment Growth vs Experienced Professionals re-employed 83,000 -21,000 -25.30%

From Quarter IV 2011 to Quarter IV 2012, Current Population Survey indicates that employment increased by 330,000 unemployment decreased by 13,000

Employment Loss/Gain by Occupation in Computer Related Occupations Q4 2011 to Q4 2012

Growth Loss

Employed Unemployed
Computer and information research scientists -2,000 NA
Computer systems analysts 52,000 5,000
Information security analysts 14,000 NA
Computer programmers -1,000 5,000
Software developers, applications and systems software 162,000 -12,000
Web developers 3,000 -1,000
Computer support specialists 38,000 -5,000
Database administrators 9,000 1,000
Network and computer systems administrators 13,000 -3,000
Computer network architects 35,000 2,000
Computer occupations, all other 7,000 -5,000




Employment Growth vs Experienced Professionals re-employed 330,000 -13,000 -3.94%

Data resources:

Characteristics of Specialty Occupation Workers (H-1B) Link

Classes of Nonimmigrants Issued Visas (Detailed Breakdown) (Including Crewlist Visas and Border Crossing Cards) Fiscal Years 2007 – 2011 http://www.travel.state.gov/pdf/NIVClassIssued-DetailedFY2007-2011.pdf

Office of the Inspector General, “Review of Vulnerabilities and Potential Abuses of the L-1 Visa Program“ http://www.oig.dhs.gov/assets/Mgmt/OIG_06-22_Jan06.pdf

Institute of International Education. (2012). "International Students by Academic Level, 2010/11 – 2011/12."

Open Doors Report on International Educational Exchange. Retrieved from http://www.iie.org/opendoors

“Computer and Information Sciences and Support Services” degrees are specific to the occupational group 15-1xxx Computer-related occupations. http://www.cpec.ca.gov/FiscalData/StepsDetail.asp?SOC=15

California Post Secondary Education Committee http://www.cpec.ca.gov/FiscalData/StepsDetail.asp?SOC=15

Current Population Survey occupational data is available on request from the Bureau of Labor Statistics

Instructions provided with the Current Population Survey, Occupational statistics include, Occupation data for unemployed persons refer to the experienced unemployed only, classified according to the occupation of their last job.”

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