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NATION

SCIENC

SCIENCE RESOURCES STUDIES

HIGHLIGHTS

NATIONAL SCIENCE FOUNDATION WASHINGTON, D.C. 20550 SEPTEMBER 23, 1971 NSF 71-33

Unemployment Rate for Engineers, June-July 1971

In order to obtain a more complete understanding of unemployment among engineers, the National Science Foundation commissioned the Engineers Joint Council to survey about 100,000 engineers constituting a 20-percent sample of a mailing list of members of major engineering professional societies. This mailing list included about 40 percent of the engineers in the Nation. The survey secured a response rate of 65 percent. In view of the fact that only a sample of the engineering population was included, the absolute numbers should not be construed to be totals for any particular category, however, relationships between numbers are considered significant. Thus, the percentage rate of unemployment by such factors as age, field of engineering, function, and degree level are considered representative measures for engineering society members. but not necessarily representative of all engineers.

Summary

• Engineers included in this survey of engineering society members reported an unemployment rate of 3.0 percent for June-July 1971, as compared with 1.6 percent for the same individuals in spring 1970. It is estimated on the basis of previous studies that the 1971 unemployment rate for all engineers might have been as high as 3.4 percent. The national unemployment rate for all workers for the second quarter 1971 averaged 5.8 percent.1

• Master's degree holders experienced a 3.2-percent unemployment rate while bachelor's degree holders reported a 2.8-percent rate and doctorates a 1.9-percent rate. Those without any degree showed a 4.4-percent unemployment rate.

• Engineers 24 years old and under had the highest unemployment rate, 5.5 percent, while the next highest rate was for the 55 to 64 age group-4.1 percent.

• Engineers last employed in industry and business had an unemployment rate of 3.4 percent; 78 percent of the unemployed had been so employed.

• Engineers whose function in their previous position was concerned with production reported a 3.9-percent unemployment rate, while those in development showed a 3.7-percent rate and those in design a 3.5-percent rate.

involved in space activities was 6.3 percent followed by defense with 4.8 percent; the area of public works showed the lowest unemployment rate, 1.3 percent.

• Engineers previously supported to some degree with U.S. Government funds had a 3.6-percent rate of unemployment while those who reported that they had not received Federal funds showed a rate of 2.3 percent.

Over 2 percent of the currently employed engineers reported that they had received notices of job termination effective prior to July 1, 1972.

• Engineers whose highest degree was in engineering reported an unemployment rate of 2.7 percent as contrasted with 3.7 percent for those engineers whose highest degree was in a nonengineering area (such as business administration).

• About 7 percent of the employed engineers were engaged in nonengineering-related positions and almost one-third of these had accepted such positions since March 1970.

Unemployment Rates

Of the 59,200 engineers who reported their June-July 1971 employment status to the Engineers Joint Council, 94 percent were in the labor force. 85 percent were employed as engineers: 6 percent were employed in nonengineering work; 3 percent were unemployed and seeking employment: and 6 percent were not employed and not seeking employment (table 1). The 3.0 percent of the labor force unemployed compares with a spring 1970 rate of 1.6 percent for the same individuals. Prepared in the National Register Group, Division of Science Resources Studies

The unemployment rate for engineers previously

'U.S. Department of Labor. Bureau of Labor Statistics (not seasonally adjusted).

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*Rates based on labor force total-55,800.

Note: Details may not add to total because of rounding.

Source: National Science Foundation

Specialization. Nearly two-fifths of the unemployed engineers were concentrated in four fields of engineering specialization all of which had unemploy. ment rates of 4.0 percent or more. The fields of specialization were: electronic engineering and aerospace engineering each with unemployment rates of 5.3 percent, followed by manufacturing engineering, 4.5 percent; and systems engineering, 4.1 percent. Additional fields with high unemployment rates included computer/mathematics, and product engineering (table 2).

Educational level. Engineers whose formal educational background was less than a bachelor's degree were experiencing the highest unemployment rate, 4.4 percent, while doctorates were the lowest at 1.9 percent. Those engineers with a master's degree reported a rate of 3.2 percent. The bachelor's degree holders showed an intermediate rate of 2.8 percent (table 3).

Age. The younger engineers suffer the highest rates of unemployment with rates declining consistently for age groups up to 40 years, after which they increase, although not reaching the former peak even in the oldest group. The 24-years-and-under age group had the highest rate, 5.5 percent, followed by the 60 to 64-year age group with 4.2 percent. The 55 to 59-year age group reported a rate of 4.1 percent. The lowest rates, 2.2 percent, were reported by engineers in their thirties (table 4).

Employer. Private industry is traditionally the major employer of engineers, and was the last previous employer of nearly 80 percent of the unemployed. This group showed an unemployment rate of 3.4 percent. Government-Federal, State, and local-the second

Systems engineering Other engineering

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Source: National Science Foundation

largest user of engineering talent, was the employer of 15 percent of the respondents but only 7 percent of the unemployed indicated that their last previous employer was government. This type of employment shows a rate of unemployment of 1.4 percent. Rates for other major types of employers were educational institutions, 2.6 percent; and self-employed engineers, 1.6 percent.

Employment function. Engineers whose function in their previous position was concerned with producTable 3.-Number and rates of unemployed engineers, by highest degree, 1971

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tion reported the highest unemployment rate, 3.9 percent. Those engineers who had been engaged in development or design also reported high rates-3.7 percent and 3.5 percent, respectively. Over one-fourth of the unemployed, 26 percent, had been managers and this group had an unemployment rate of 2.4 percent.

Employment areas. The employment areas showing the highest rates of unemployment were those directly related to aerospace and defense. The previous employment with the highest rate of unemployment was space with 6.3 percent which is more than twice the average rate. The area of defense was second highest with 4.8 percent followed by transportation, 3.3 percent. Other areas of previous employment with low rates of unemployment were: public works, 1.3 percent; and atomic energy, 1.9 percent.

Government support. U.S. Government funds supported to some degree about 40 percent of the engineers active in the labor force. Over one-half of the unemployed engineers reported that their last previous work had been so supported. This group of unemployed had an unemployment rate of 3.6 percent contrasted with a 2.3-percent rate for those engineers who indicated that they had not been receiving Federal support. A rate of 4.2 percent was reported by the unemployed engineers who stated that the degree of Government support had been between 76 percent and 100 percent of their total work.

Geographic distribution. The States of Washington and California had the highest unemployment rates-7.3 percent and 5.3 percent, respectively. These were followed by Connecticut with 4.4 percent; Massachusetts, 4.3 percent; and Florida, 4.1 percent. Other States with higher-than-average rates were New Jersey, 3.4 percent; and New York, 3.2 percent.

The impact of differential unemployment rates appears clearly in the 14 areas designated by the U.S. Department of Labor as being severely affected by unemployment of scientists, engineers, and technicians. The unemployment rates for engineers in these areas range from 9.0 percent in Seattle, Wash. to 1.5 percent in Atlanta, Ga. Except in the case of Orange County, Calif. where the unemployment rate for engineers is the same as for all workers, the rate for engineers was lower than the unemployment rate for all workers (table 5).

Length of unemployment. Over one-half of the unemployed engineers reporting to the June 1971 survey indicated that they became unemployed during the period February-July 1971. For those engineers who were unemployed at the time of the survey, an average (weighted arithmetic mean) of 8 months had elapsed since they began this status.

Table 5.-Unemployment rates for engineers compared with U.S. Department of Labor rates for all workers in target areas

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(These future terminations cannot be added to the present unemployed since some of the presently unemployed will find reemployment by the time these terminations take place.)

Engineers Employed in Nonengineering Positions

In order to appraise the extent to which engineers are working in activities outside of engineering, em. ployed engineers were asked to indicate if their present positions were engineering-related or of a nonengineering nature. Of the employed respondents 6.9 percent reported that they were engaged in nonengineering work in June 1971. Of this number about one-third had accepted their nonengineering positions since March 1970.

Reasons given for accepting nonengineering positions included lack of available engineering positions, promotion out of engineering and preference for nonengineering work.

The curriculums of highest degree of these nonengineering-employed engineers were electrical engi neering, mechanical engineering, and management or business administration. Their specializations had been predominately in aerospace engineering, electronics engineering, industrial engineering, manufacturing engineering, and business administration. Industry and business were the previous engineering-related employer of over two-thirds of the engineers newly employed in nonengineering work since March 1970. Although all products and service areas were represented by the group, aircraft and space accounted for 15 percent of the group and electronic equipment another 11 percent. These engineers had functioned in general engineering, 14 percent; development, 11 percent; and administration, 11 percent. The remainder were fairly evenly distributed among the other work functions associated with engineering. Over one-fourth had served in the capacity of a manager of engineering functions.

Almost two-thirds had been concerned with the following areas: industrial products/processes, 26 percent; defense, 19 percent; consumer products, 8 percent; and space, 6 percent.

Explanatory Notes

These data are based upon a survey designed primarily to measure the changes in employment status of engineers which have taken place since the spring of 1970. A systematic sample of one in five selected from a mail list maintained by the Engineers Joint Council was used. This mail list consists of the memberships of the constituent societies of the Engineers Joint Council and was augmented by the membership of other societies including the American Institute of Chemical Engineers,

Institute of Electrical and Electronics Engineers. American Institute of Aeronautics and Astronautics, and the Society of Automotive Engineers. This population is about 40 percent of the total number of individuals in the Nation identified as engineers. Because of the membership qualifications of the professional societies, the engineers responding to the survey represent a more qualified, more experienced, and more professionally oriented group than the total engineer population.

Those engineers who do not hold membership in a national professional engineering society are outside the scope of this survey. Since a selected portion of the total engineering population was sampled, the absolute numbers for any variable should not be considered as national totals. The percentage relationships developed in the survey, however, are considered to be representative for the members of engineering societies. The procedures used do not permit estimation of population totals in terms of the individual variables. Using the results of a 1969 study conducted by the Bureau of the Census on the characteristics (age and degree level) of the engineering community included in the Current Population Survey, the overall rate of unemployment of 3.0 percent associated with the respondents to this survey might have been as high as 3.4 percent if the total engineering population had been sampled.

Responses were received during June and July from 61,242 individuals, or 65 percent, of the 94,720 who received the questionnaire. The survey is subject to sampling errors, response errors, nonresponse bias, and bias inherent in the mail list from which the sample was drawn. With respect to sampling errors alone, the error range depends upon both the size of the cell examined and the percentage of cases within the cell with a particular characteristic. For example, the unemployment rate for all respondents, 3.0 percent. has a sampling error range of 0.1 percent at the 90-percent confidence level. A cell with about 1,400 responses and an unem ployment rate of 2.9 percent has a sampling error range of ± 0.7 percent at the 90-percent confidence level (communications engineers, table 2). Biases introduced by response errors and nonresponse have not been measured, but respondents show characteristics similar to those reported in a 1969 survey using an Engineers Joint Council mailing list closely resembling the one used for this survey.

A similar survey of scientists was conducted and preliminary results published in Science Resources Studies Highlights, "Unemployment Rates for Scientists. Spring 1971. NSF 71-26.

A full report containing more detailed data on the respondents to these employment surveys will be available later this year from the Superintendent of Documents, U.S. Government Printing Office.

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As you know, Senator Kennedy is very much interested in achieving progress in the conversion of scientific and technical resources from defense to civilian oriented programs. To assist us in the conversion hearings we will be conducting in October, w would appreciate receiving the following information as soon as possible:

(1) Identification and brief deseription of all conversion related projects or studies which NSF is currently supporting or has supported in the past. (The identification should include the information which would normally be included in the computer print-out of grants and contracts. The description should be comparable to what would be included in the SIE report on the project.)

(2) Identification and brief description of all pending proposals for conversion related projects or studies.

(3) Identification and brief description of all conversion related proposals which have been declined or withdrawn from submission.

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