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L Z.lh- 20OH-05 ■  Wf  mai Outlook Handbook A  1  5  I K4* V  ft  /  ~  2004-05 Edition  U.S. Department of Labor Bureau of Labor Statistics March 2004 Bulletin 2570   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ***  Occupational Outlook Handbook U.S. Department of Labor Elaine L. Chao, Secretary Bureau of Labor Statistics Kathleen Utgoff, Commissioner March 2004 Bulletin 2570   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  2004-05 Edition  ISBN 0-16-051553-X  90000  780 60 51553  For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001  ISBN 0-16-051553-X  Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2004-05 Edition, Bulletin 2570. Superintendent of Documents, U.S. Government Printing Office, Washington, DC, 2004.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Acknowledgments The Bureau of Labor Statistics produced the Handbook under the general guidance and direction of Michael W. Horrigan, As­ sistant Commissioner for Occupational Statistics and Employ­ ment Projections, and Mike Pilot, Chief, Division of Occupa­ tional Outlook. Chester C. Levine and Jon Q. Sargent, Managers of Occupational Outlook Studies, provided planning and dayto-day direction. Supervisors overseeing the research and preparation of ma­ terial were Douglas Braddock, Theresa Cosca, Arlene K. Dohm, and Carolyn Veneri. Occupational analysts who contributed ma­ terial were Azure Albeck, Andrew D. Alpert, Jill Auyer, Hall Dillon, Tamara Dillon, Erika Heaton, Elka Jones, Henry T. Kasper, Jonathan Kelinson, T. Alan Lacey, William Lawhorn, Mark Mittelhauser, Kevin M. McCarron, Roger Moncarz, Terry Schau, Lynn Shniper, Patricia Tate, and Ian Wyatt. Editorial work was provided by Edith Baker, Monica Carpio, Monica Gabor, and Douglas Himes, under the supervision of Mary K. Rieg. Word processing support was provided by Monique Smith and Beverly A. Williams. Computer program­ ming support was provided by David S. Frank, T. Alan Lacey, and Erik A. Savisaar. Cover and other art-work were designed by Keith Tapscott.  Note Many trade associations, professional societies, unions, industrial organi­ zations, and government agencies provide career information that is valu­ able to counselors and jobseekers. For the convenience of Handbook us­ ers, some of these organizations and, in some cases, their Internet addresses are listed at the end of each occupational statement. Although these refer­ ences were carefully compiled, the Bureau of Labor Statistics has neither authority nor facilities for investigating the organizations or the informa­ tion or publications that may be sent in response to a request and cannot guarantee the accuracy of such information. The listing of an organization, therefore, does not constitute in any way an endorsement or recommenda­ tion by the Bureau either of the organization and its activities or of the information it may supply. Each organization has sole responsibility for whatever information it may issue. The Handbook describes the job outlook over a projected 10-year period for occupations across the Nation; consequently, short-term labor market fluctuations and regional differences in job outlook generally are not discussed. Similarly, the Handbook provides a general, composite de­ scription of jobs and cannot be expected to reflect work situations in spe­ cific establishments or localities. The Handbook, therefore, is not intended and should not be used as a guide for determining wages, hours of work, the right of a particular union to represent workers, appropriate bargaining units, or formal job evaluation systems. Nor should earnings data in the Handbook be used to compute future loss of earnings in adjudication pro­ ceedings involving work injuries or accidental deaths. Material in this publication is in the public domain and, with ap­ propriate credit, may be reproduced without permission. Comments about the contents of this publication and suggestions for im proving it are wel­ come. Please address them to Chief, Division of Occupational Outlook, Office of Occupational Statistics and Employment Projections, Bureau of Labor Statistics, U.S. Department of Labor, 2 Massachusetts Ave. NE., Room 2135, Washington, DC 20212. Phone:(202)691-5700. FAX: (202) 691-5745. E-mail: oohinfo@bls.gov. Additional information is available on the Internet: http://www.bls.gov/oco. Information in the Handbook is available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.  Photograph Credits The Bureau of Labor Statistics wishes to express its appreciation for the cooperation and assistance of the many government and private sources—listed below—that either contributed photographs or made their facilities available to photographers working under contract to the U.S. Department of Labor. Situations portrayed in the photographs may not be free of every possible safety or health hazard. Depiction of company or trade name in no way constitutes endorsement by the Department of Labor. Abacus Technology Corporation, Silver Spring, MD; Aggressive Construction; Black Magic Films; Burlington and Northern Railroad; Cape May—Lewes Ferry; Carlo Perlo, Dance Place; Citgo Gas, Gaithersburg, MD; Claims Administration Corporation, Rockville, MD; Craddock-Terry Inc., Farmville, VA; Cres Builders; Cynthia K. Reeser, Nutritionist, Women’s Health Initiative; D.C. Vending Company; Dana A. Brown, Women’s Exercise Research Center, George Washington University, Washington, DC; Darnestown Elementary School, Montgomery County, MD; David Hrupsa, First State Aerial Applica­ tors, Felton, DE; Delaware Electric Cooperative; Department of Anthropology, Howard University, Wash­ ington, DC; Dravo Corporation, Pittsburgh, PA; Dr. Edna Medford, Department of History, Howard University, Washington, DC; Dr. Gary Felton, Agricultural Engineering Department, University of Mary­ land, College Park, MD; Dr. Larry Brown, Dupont Circle Chiropractic, Washington, DC; Fame Food Services, Wakefield, MD; Fannie Mae Computer Department, Washington, DC; Father Everett Pearson, Holy Name School, Washington, DC; Fitzgerald Pontiac, White Flint, MD; Food Service at the Ameri­ can University, Washington, DC; Gaithersburg Middle School, Montgomery County, MD; Gaithersburg Public Library, Montgomery County, MD; George Washington University Audio Visual Department, Washington, DC; George Washington University Hospital and Ambulatory Care Center, Washington, DC; Glenn Maurer and Associates; Holland Jewelers, Inc., Rehoboth Beach, DE; Information Technol­ ogy Department, American Federation of Teachers, AFL-CIO; International Union of Bricklayers and Allied Craft Workers; Iona House and Sibley Hospital, Washington, DC; Jordana Pomeroy, Curator, National Museum of Women in the Arts; Julie Garrett, USDA Graduate School, Washington, DC; Kane County Cougars; Karen Ackoff, Smithsonian Institution, Washington, DC; Kathryn Morgan Lightcap, D.P.M., Lewes, DE; Kathy M. Perkins, At Your Fingertips, Washington, DC; Laurel Racetrack, Laurel, MD; Legal Services, Washington, DC; Legg, Mason, Wood, Walker, Inc.; Loudoun Pest Control, Leesburg, VA; Martha Tabor, Working Images Prints, Photographs, and Sculpture, Washington, DC; Maryland Applicators, Beltsville, MD; McAllister Towing, Baltimore, MD; McCutcheon’s Apple Products, Inc.; Medical Records Corporation, Vienna, VA; Melvin M. Shapiro, Capitol Process Services; Midway Slots, Harrington, DE; Monilsen Animal Clinic, Madison Heights, VA; Montgomery County Police Depart­ ment, Montgomery County, MD; National Institute of Standards and Technology, Gaithersburg, MD; National Zoo, Washington, DC; Patti Huntington, Singer; Penn Camera, Rockville, MD; Pierre L. Palian, D.D.S., and staff; Port of Seattle, Seattle, WA; Proctor S. Harvey, American Society of Landscape Archi­ tects, Lynchburg, VA; Public Production Group, Washington, DC; Rapp Funeral and Cremation Ser­ vices; Red Cross Blood Bank, Baltimore, MD; Rev. Ruth Hamilton, Westminster Presbyterian Church, Washington, DC; Robbie Murray, Connie Rogers, Brandon Donaway, Sussex County Emergency Medi­ cal Services (Delaware); Robert M. Gable, CPA, Berry, Barlow, & Warrington, LLP, Certified Public Accountants; Robert Schwartz and Keith Peoples, Architects; Roush & Averill, Interior Designers, Gaithersburg, MD; Safeway, Gaithersburg, MD; Sandy Springs Friends School, Sandy Springs, MD; Seaport Transportation, Rehoboth Beach, DE; Shady Grove Adventist Hospital, Gaithersburg, MD; Siar Daires-Vollum, Paleontologist, Smithsonian Institution, Washington, DC; Sterling Optical, Gaithersburg, MD; Suburban Dental Laboratory, Inc.; Surgery Department, Children’s National Medical Center, Wash­ ington, DC; Sussex County (Delaware) Engineering Department; Sussex County (Delaware) Finance Department; The Segal Company, Washington, DC; The Washington Times, Washington, DC; Triangle Tobacco Auction Warehouse, Upper Marlboro, MD; Trunnel Electric, Derwood, MD; Town of Rehoboth Beach, DE—Water Treatment Plant; United Air Temp, Rockville, MD; Urban Institute, Washington, DC; USDA Graduate School; Walter Reed Army Medical Hospital, Washington, DC; Washington Home, Washington, DC; Washington Metropolitan Area Transit Authority, Washington, DC; WETA Television and Radio, Washington, DC; William G. Grimm, Avorex Designs; William McGuire, Beltsville Agricul­ tural Research Station, Beltsville, MD; Worker’s Institute for Health and Safety, Washington, DC.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  iv  Contents Special Features Tomorrow’s Jobs...................................................................  1  Sources of Career Information.........................................  9  Finding a Job and Evaluating a Job Offer....................  14  Occupational Information Included in the Handbook.............................................................................  18  Data for Occupations Not Studied in Detail.................. 648 Assumptions and Methods Used in Preparing Employment Projections................................................. 663 Occupational Information Network Coverage................ 665 Index.........................................................................................  674  Occupational Coverage Management, business, and financial operations occupations Management occupations Administrative services managers............................................... Advertising, marketing, promotions, public relations, and sales managers.................................................................. Computer and information systems managers............................ Construction managers................................................................ Education administrators..... ........................................................ Engineering and natural sciences managers................................ Farmers, ranchers, and agricultural managers............................. Financial managers...................................................................... Food service managers................................................................ Funeral directors.......................................................................... Human resources, training, and labor relations managers and specialists......................................................................... Industrial production managers................................................... Lodging managers....................................................................... Medical and health services managers........................................ Property, real estate, and community association managers....... Purchasing managers, buyers, and purchasing agents................. Top executives............................................................................. Business and financial operations occupations Accountants and auditors............................................................ Budget analysts............................................................................ Claims adjusters, appraisers, examiners, and investigators........ Cost estimators............................................................................ Financial analysts and personal financial advisors..................... Insurance underwriters................................................................ Loan counselors and officers....................................................... Management analysts.................................................................. Tax examiners, collectors, and revenue agents...........................  21 23 26 28 31 34 36 39 42 45 47 51 53 55 58 61 64 68 72 75 78 80 83 85 87 90  Professional and related occupations Computer and mathematical occupations Actuaries...................................................................................... 94 Computer programmers............................................................... 96 Computer software engineers...................................................... 100 Computer support specialists and systems administrators.......... 103 Computer systems analysts, database administrators, and computer scientists................................................................ 105   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Mathematicians............................................................................ Operations research analysts....................................................... Statisticians.................................................................................. Architects, surveyors, and cartographers Architects, except landscape and naval....................................... Landscape architects.................................................................... Surveyors, cartographers, photogrammetrists, and surveying technicians...............................................................................  110 112 114  Engineers.................................................................................... Aerospace engineers.................................................................... Agricultural engineers................................................................. Biomedical engineers.................................................................. Chemical engineers..................................................................... Civil engineers............................................................................. Computer hardware engineers..................................................... Electrical and electronics engineers,except computer................. Environmental engineers............................................................. Industrial engineers, including health and safety........................ Materials engineers...................................................................... Mechanical engineers.................................................................. Mining and geological engineers, including mining safety engineers......................................................... Nuclear engineers........................................................................ Petroleum engineers.................................................................... Drafters and engineering technicians Drafters........................................................................................ Engineering technicians .............................................................. Life scientists Agricultural and food scientists................................................... Biological scientists..................................................................... Conservation scientists and foresters.......................................... Medical scientists........................................................................  125 128 129 130 131 132 133 133 134 135 137 137  Physical scientists Atmospheric scientists................................................................. Chemists and materials scientists................................................ Environmental scientists and geoscientists................................. Physicists and astronomers.......................................................... Social scientists and related occupations Economists.................................................................................. Market and survey researchers.................................................... Psychologists............................................................................... Urban and regional planners........................................................ Social scientists, other................................................................. Science technicians.................................................................... Community and social services occupations Clergy.......................................................................................... Protestant ministers................................................................. Rabbis..................................................................................... Roman Catholic priests........................................................... Counselors................................................................................... Probation officers and correctionaltreatment specialists............. Social and human service assistants............................................ Social workers............................................................................. Legal occupations Court reporters............................................................................. Judges, magistrates, and other judicial workers.......................... Lawyers....................................................................................... Paralegals and legal assistants..................................................... Education, training, library, and museum occupations Archivists, curators, and museum technicians............................ Instructional coordinators............................................................  116 119 122  138 139 140 141 143 146 149 152 155 158 161 164 167 170 173 175 178 180 183 187 188 189 190 192 195 197 199 202 204 207 211 213 217  Librarians..................................................................................... Library technicians...................................................................... Teacher assistants........................................................................ Teachers—adult literacy and remedial and self-enrichment education................................................................................ Teachers—postsecondary............................................................. Teachers—preschool, kindergarten, elementary, middle, and secondary................................................................................ Teachers—special education........................................................ Art and design occupations Artists and related workers.......................................................... Designers..................................................................................... Entertainers and performers, sports and related occupations Actors, producers, and directors.................................................. Athletes, coaches, umpires, and related workers ........................ Dancers and choreographers....................................................... Musicians, singers, and related workers...................................... Media and communication-related occupations Announcers.................................................................................. Broadcast and sound engineering technicians and radio operators................................................................................. Interpreters and translators.......................................................... News analysts, reporters, and correspondents............................. Photographers.............................................................................. Public relations specialists........................................................... Television, video, and motion picture camera operators and editors.............................................................................. Writers and editors....................................................................... Health diagnosing and treating practitioners Audiologists................................................................................. Chiropractors............................................................................... Dentists........................................................................................ Dietitians and nutritionists........................................................... Occupational therapists............................................................... Optometrists................................................................................ Pharmacists.................................................................................. Physical therapists....................................................................... Physician assistants..................................................................... Physicians and surgeons.............................................................. Podiatrists.................................................................................... Recreational therapists................................................................ Registered nurses......................................................................... Respiratory therapists.................................................................. Speech-language pathologists..................................................... Veterinarians................................................................................  277 279 281 282 284 286 288 291 292 294 297 299 301 304 306 308  Health technologists and technicians Cardiovascular technologists and technicians............................. Clinical laboratory technologists and technicians....................... Dental hygienists......................................................................... Diagnostic medical sonographers................................................ Emergency medical technicians and paramedics........................ Licensed practical and licensed vocational nurses...................... Medical records and health information technicians................... Nuclear medicine technologists................................................... Occupational health and safety specialists and technicians........ Opticians, dispensing................................................................... Pharmacy technicians.................................................................. Radiologic technologists and technicians.................................... Surgical technologists.................................................................. Veterinary technologists and technicians....................................  311 313 315 317 319 321 323 324 326 329 330 332 334 336  Occupational therapist assistants and aides................................. Pharmacy aides............................................................................. Physical therapist assistants and aides ........................................ Protective service occupations Correctional officers..................................................................... Firefighting occupations............................................................... Police and detectives.................................................................... Private detectives and investigators ............................................ Security guards and gaming surveillance officers....................... Food preparation and serving related occupations Chefs, cooks, and food preparation workers............................... Food and beverage serving and related workers......................... Building and grounds cleaning and maintenance occupations Building cleaning workers........................................................... Grounds maintenance workers.................................................... Pest control workers..................................................................... Personal care and service occupations Animal care and service workers................................................ Barbers, cosmetologists, and other personal appearance workers................................................................................... Childcare workers........................................................................ Flight attendants........................................................................... Gaming services occupations...................................................... Personal and home care aides...................................................... Recreation and fitness workers.....................................................  218 221 223 225 228 232 236 239 242 246 249 252 254 256 258 261 265 267 270 272 274   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  351 353 356 360 362 365 368 372 374 377 379 382 384 387 389 391 393  Sales and related occupations Cashiers........................................................................................ Counter and rental clerks............................................................. Demonstrators, product promoters, and models.......................... Insurance sales agents .................................................................. Real estate brokers and sales agents............................................ Retail salespersons....................................................................... Sales engineers............................................................................. Sales representatives, wholesale and manufacturing.................. Sales worker supervisors.............................................................. Securities, commodities, and financial services sales agents...... Travel agents................................................................................  396 397 399 402 405 408 410 412 414 417 420  Office and administrative support occupations Communications equipment operators........................................ Computer operators..................................................................... Customer service representatives................................................ Data entry and information processing workers......................... Desktop publishers...................................................................... Financial clerks............................................................................. Bill and account collectors...................................................... Billing and posting clerks and machine operators.................. Bookkeeping, accounting, and auditing clerks........................ Gaming cage workers............................................................... Payroll and timekeeping clerks................................................ Procurement clerks.................................................................. Tellers....................................................................................... Information and record clerks..................................................... Brokerage clerks....................................................................... Credit authorizers, checkers, and clerks.................................. File clerks................................................................................. Hotel, motel, and resort desk clerks........................................ Human resources assistants, except payroll and timekeeping........................................................................... Interviewers............................................................................. Library assistants, clerical....................................................... Order clerks............................................................................. Receptionists and information clerks...................................... Reservation and transportation ticket agents and travel clerks....................................................................................  Service occupations Healthcare support occupations Dental assistants.......................................................................... Medical assistants........................................................................ Medical transcriptionists............................................................. Nursing, psychiatric, and home health aides...............................  346 348 349  339 340 342 344 vi  422 424 426 429 431 432 435 436 437 438 439 440 441 442 445 445 446 447 448 449 451 451 452 453  Material-recording, -scheduling, -dispatching, and -distributing occupations.............................................................................. Cargo and freight agents........................................................ Couriers and messengers........................................................ Dispatchers............................................................................. Meter readers, utilities............................................................ Production, planning, and expediting clerks.......................... Shipping, receiving, and traffic clerks.................................... Stock clerks and order fillers.................................................. Weighers, measurers, checkers, and samplers, recordkeeping..................................................................... Office and administrative support worker supervisors and managers................................................................................ Office clerks, general................................................................. Postal Service workers............................................................... Secretaries and administrative assistants....................................  454 457 458 459 460 461 461 462 463 464 466 467 469  Other installation, maintenance, and repair occupations Coin, vending, and amusement machine servicers and repairers................................................................................... Heating, air-conditioning, and refrigeration mechanics and installers.................................................................................. Home appliance repairers............................................................ Industrial machinery installation, repair, and maintenance workers, except millwrights.................................................... Line installers and repairers........................................................ Maintenance and repair workers, general ................................... Millwrights.................................................................................. Precision instrument and equipment repairers............................  548 551 554 556 558 560 562 563  Production occupations Assemblers and fabricators...................................................... 567  Farming, fishing, and forestry occupations Agricultural workers.............................................................. Fishers and fishing vessel operators...................................... Forest, conservation, and logging workers............................  Food processing occupations.................................................... 569 473 475 478  Construction trades and related workers Boilermakers........................................................................ Brickmasons, blockmasons, and stonemasons.................... Carpenters............................................................................ Carpet, floor, and tile installers and finishers...................... Cement masons, concrete finishers, segmental pavers, and terrazzo workers.............................................................. Construction and building inspectors.................................. Construction equipment operators........................................ Construction laborers .......................................................... Drywall installers, ceiling tile installers, and tapers........... Electricians.......................................................................... Elevator installers and repairers.......................................... Glaziers................................................................................ Hazardous materials removal workers................................ Insulation workers............................................................... Painters and paperhangers................................................... Pipelayers, plumbers, pipefitters, and steamfitters.............. Plasterers and stucco masons.............................................. Roofers................................................................................ Sheet metal workers............................................................ Structural and reinforcing iron and metal workers..............  481 482 484 487 489 492 494 496 499 500 503 505 507 509 511 513 515 517 519 521  Installation, maintenance, and repair occupations Electrical and electronic equipment mechanics, installers, and repairers Computer, automated teller, and office machine repairers.......... Electrical and electronics installers and repairers....................... Electronic home entertainment equipment installers and repairers................................................................................... Radio and telecommunications equipment installers and repairers................................................................................... Vehicle and mobile equipment mechanics, installers, and repairers Aircraft and avionics equipment mechanics and service technicians............................................................................... Automotive body and related repairers....................................... Automotive service technicians and mechanics.......................... Diesel service technicians and mechanics................................... Heavy vehicle and mobile equipment service technicians and mechanics................................................................................ Small engine mechanics..............................................................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Metal workers and plastic workers Computer control programmers and operators............................ Machinists ................................................................................... Machine setters, operators, and tenders—metal and plastic....... Tool and die makers..................................................................... Welding, soldering, and brazing workers.................................... Printing occupations Bookbinders and bindery workers............................................... Prepress technicians and workers................................................ Printing machine operators..........................................................  573 575 577 580 582 584 586 589  Textile, apparel, and furnishings occupations........................ 591 Woodworkers............................................................................. Plant and system operators Power plant operators, distributors, and dispatchers................... Stationary engineers and boiler operators................................... Water and liquid waste treatment plant and system operators.................................................................................. Other production occupations Dental laboratory technicians...................................................... Inspectors, testers, sorters, samplers, and weighers.................... Jewelers and precious stone and metal workers.......................... Ophthalmic laboratory technicians.............................................. Painting and coating workers, except construction and maintenance............................................................................ Photographic process workers and processing machine operators.................................................................................. Semiconductor processors...........................................................  594 597 598 600 602 604 606 609 610 613 614  Transportation and material moving occupations 524 526 528 530  532 535 537 541 543 546  Air transportation occupations Aircraft pilots and flight engineers......................................... Air traffic controllers.............................................................. Motor vehicle operators Bus drivers.............................................................................. Taxi drivers and chauffeurs..................................................... Truck drivers and driver/sales workers...................................  617 620 622 625 628  Rail transportation occupations............................................... 631 Water transportation occupations........................................... 634 Material moving occupations................................................... 637 Job Opportunities in the Armed Forces.......................... 640   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Additional Information About the 2002-12 Projections Readers interested in more information about the projec­ tions; about the methods and assumptions that underlie them; or about details on economic growth, the labor force, or in­ dustry and occupational employment, should consult the Feb­ ruary 2004 Monthly Labor Review, or the Winter 2003-04 Occupational Outlook Quarterly. For more information about employment change, job open­ ings, earnings, unemployment rates, and training require­ ments by occupation, consult Occupational Projections and Training Data, 2004-05 Edition, BLS Bulletin 2572. For occupational information from an industry perspective, including discussions of some occupations and career paths that the Occupational Outlook Handbook does not cover, consult the Career Guide to Industries, 2004-05 Edition, BLS Bulletin 2571.  Tomorrow’s Jobs Making informed career decisions requires reliable information about opportunities in the future. Opportunities result from the re­ lationships between the population, labor force, and the demand for goods and services. Population ultimately limits the size of the labor force—indi­ viduals working or looking for work—which constrains how much can be produced. Demand for various goods and services deter­ mines employment in the industries providing them. Occupational employment opportunities, in turn, result from demand for skills needed within specific industries. Opportunities for medical assis­ tants and other health care occupations, for example, have surged in response to rapid growth in demand for health services. Examining the past and projecting changes in these relationships is the foundation of the Occupational Outlook Program. This chap­ ter presents highlights of Bureau of Labor Statistics projections of the labor force and occupational and industry employment that can help guide your career plans. Sources of detailed information about the projections appear on page viii. Population Population trends affect employment opportunities in a number of ways. Changes in population influence the demand for goods and services. For example, a growing and aging population has increased the demand for health services. Equally important, population changes produce corresponding changes in the size and demographic composition of the labor force. The U.S. population is expected to increase by 24 million over the 2002-12 period, at a slower rate of growth than during both the 1992-2002 and 1982-92 periods (chart 1). Continued growth will mean more consumers of goods and services, spurring demand for workers in a wide range of occupations and industries. The effects of population growth on various occupations will differ. The dif­ ferences are partially accounted for by the age distribution of the future population.  Chart 1. Percent change in the population and labor force, 1982-92,1992-2002, and projected 2002-2012  The youth population, aged 16 to 24, will grow 7 percent over the 2002-12 period. As the baby boomers continue to age, the group aged 55 to 64 will increase by 43.6 percent or 11.5 million persons, more than any other group. Those aged 35 to 44 will decrease in size, re­ flecting the birth dearth following the baby boom generation. Minorities and immigrants will constitute a larger share of the U.S. population in 2012. The number of Hispanics is projected to continue to grow much faster than those of all other racial and eth­ nic groups. Labor force Population is the single most important factor in determining the size and composition of the labor force—that is, people who are either working or looking for work. The civilian labor force is pro­ jected to increase by 17.4 million, or 12 percent, to 162.3 million over the 2002-12 period. The U.S. workforce will become more diverse by 2012. White, non-Hispanic persons will continue to make up a decreasing share of the labor force, falling from 71.3 percent in 2002 to 65.5 percent in 2012 (chart 2). However, despite relatively slow growth, white, non-Hispanics will remain the largest group in the labor force in 2012. Hispanics are projected to account for an increasing share of the labor force by 2012, growing from 12.4 to 14.7 percent. By 2012, Hispanics will constitute a larger proportion of the labor force than will blacks, whose share will grow from 11.4 percent to 12.2 percent. Asians will continue to be the fastest growing of the four labor force groups. The numbers of men and women in the labor force will grow, but the number of women will grow at a faster rate than the number of men. The male labor force is projected to grow by 10 percent from 2002 to 2012, compared with 14.3 percent for women. As a result, men’s share of the labor force is expected to decrease from 53.5 to 52.5 percent, while women’s share is expected to increase from 46.5 to 47.5 percent.  Chart 2. Percent of labor force by race and ethnic origin, 2002 and projected 2012 Percent of labor force  Percent change  l  Labor force I Civilian noni  I  l 2012  population  J 1982-1992  1992-2002  White  2002-2012  Period m   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Black  Asian  All other Other than Hipanic racial groups Hispanic origin origin Race and ethnic origin  Note: The four race groups add to the total labor force. The two Hispanic origin groups also add to the total labor force. Hispanics may be of any race.  1  2 Occupational Outlook Handbook  Chart 3. Percent of labor force by age group, 2002 and projected 2012 Percent of labor force  ■I 2002 2012  I  Chart 4. Percent change in wage and salary employment, service-providing industry divisions, 1992-2002 and projected 2002-2012 Education and health services Professional and business services Information Leisure and hospitality Other services (except government) Trade, transportation, and utilities Financial activities 1992-2002  16 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 years and . older Age group  2002-2012  Government 0  5  10  15 20  25 30 35 40 45 50  Percent change  The youth labor force, aged 16 to 24, is expected to slightly decrease its share of the labor force to 15 percent by 2012. The primary working age group, between 25 and 54 years old, is pro­ jected to decline from 70.2 percent of the labor force in 2002 to 65.9 percent by 2012. Workers 55 and older, on the other hand, are projected to increase from 14.3 percent to 19.1 percent of the labor force between 2002 and 2012, due to the aging of the baby-boom generation (chart 3). Employment Total employment is expected to increase from 144 million in 2002 to 165 million in 2012, or by 14.8 percent. The21 million jobs that will be added by 2012 will not be evenly distributed across major industrial and occupational groups. Changes in consumer demand, technology, and many other factors will contribute to the continu­ ally changing employment structure in the U.S. economy. The following two sections examine projected employment change from both industrial and occupational perspectives. The industrial profile is discussed in terms of primary wage and salary employment. Primary employment excludes secondary jobs for those who hold multiple jobs. The exception is employment in ag­ riculture, which includes self-employed and unpaid family workers in addition to wage and salary workers. The occupational profile is viewed in terms of total employ­ ment—including primary and secondary jobs for wage and salary, self-employed, and unpaid family workers. Of the nearly 144 mil­ lion jobs in the U.S. economy in 2002, wage and salary workers accounted for 132 million; self-employed workers accounted for 11.5 million; and unpaid family workers accounted for about 140,000. Secondary employment accounted for 1.7 million jobs. Self-employed workers held 9 out of 10 secondary jobs; wage and salary workers held most of the remainder. Industry Service-providing industries. The long-term shift from goodsproducing to service-providing employment is expected to continue. Service-providing industries are expected to account for approxi­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  mately 20.8 million of the 21.6 million new wage and salary jobs generated over the 2002-12 period (chart 4). Education and health services. This industry supersector is pro­ jected to grow faster, 31.8 percent, and add more jobs than any other industry supersector. About 1 out of every 4 new jobs created in the U.S. economy will be in either the healthcare and social as­ sistance or private educational services sectors. Healthcare and social assistance—including private hospitals, nursing and residential care facilities, and individual and family services—will grow by 32.4 percent and add 4.4 million new jobs. Employment growth will be driven by increasing demand for healthcare and social assistance because of an aging population and longer life expectancies. Also, as more women enter the labor force, demand for childcare services is expected to grow. Private educational services will grow by 28.7 percent and add 759,000 new jobs through 2012. Rising student enrollments at all levels of education will create demand for educational services. Professional and business services. This group will grow by 30.4 percent and add nearly 5 million new jobs. This industry supersector includes some of the fastest growing industries in the U.S. economy. Employment in administrative and support and waste manage­ ment and remediation services will grow by 37 percent and add 2.8 million new jobs to the economy by 2012. The fastest growing industry in this sector will be employment services, which will grow by 54.3 percent and will contribute almost two-thirds of all new jobs in administrative and support and waste management and remediation services. Employment services ranks among the fast­ est growing industries in the Nation and is expected to be among those that provide the most new jobs. Employment in professional, scientific, and technical services will grow by 27.8 percent and add 1.9 million new jobs by 2012. Employment in computer systems design and related services will grow by 54.6 percent and add more than one-third of all new jobs in professional, scientific, and technical services. Employment growth  Tomorrow’s Jobs 3 will be driven by the increasing reliance of businesses on informa­ tion technology and the continuing importance of maintaining sys­ tem and network security. Management, scientific, and technical consulting services also will grow very rapidly, by 55.4 percent, spurred by the increased use of new technology and computer soft­ ware and the growing complexity of business. Management of companies and enterprises will grow by 11.4 percent and add 195,000 new jobs. Information. Employment in the information supersector is ex­ pected to increase by 18.5 percent, adding 632,000 jobs by 2012. Information contains some of the fast-growing computer-related industries such as software publishers; Internet publishing and broad­ casting; and Internet service providers, Web search portals, and data processing services. Employment in these industries is expected to grow by 67.9 percent, 41.1 percent, and 48.2 percent, respectively. The information supersector also includes telecommunications, broadcasting, and newspaper, periodical, book, and directory pub­ lishers. Increased demand for residential and business land-line and wireless services, cable service, high-speed Internet connec­ tions, and software will fuel job growth among these industries. Leisure and hospitality. Overall employment will grow by 17.8 percent. Arts, entertainment, and recreation will grow by 28 per­ cent and add 497,000 new jobs by 2012. Most of these new job openings will come from the amusement, gambling, and recreation sector. Job growth will stem from public participation in arts, en­ tertainment, and recreation activities—reflecting increasing incomes, leisure time, and awareness of the health benefits of physical fit­ ness. Accommodation and food services is expected to grow by 16.1 percent and add 1.6 million new jobs through 2012. Job growth will be concentrated in food services and drinking places, reflect­ ing increases in population, dual-income families, and dining so­ phistication. Trade, transportation, and utilities. Overall employment in this industry supersector will grow by 14.1 percent between 2002 and 2012. Transportation and warehousing is expected to increase by 914,000 jobs, or by 21.7 percent through 2012. Truck transporta­ tion will grow by 20.5 percent, adding 275,000 new jobs, while rail and water transportation are both projected to decline. The ware­ housing and storage and the couriers and messengers industries are projected to grow rapidly at 28.6 percent and 41.7 percent, respec­ tively. Demand for truck transportation and warehousing services will expand as many manufacturers concentrate on their core com­ petencies and contract out their product transportation and storage functions. Employment in retail trade is expected to increase by 13.8 per­ cent, from 15 million to 17.1 million. Increases in population, per­ sonal income, and leisure time will contribute to employment growth in this industry, as consumers demand more goods. Wholesale trade is expected to increase by 11.3 percent, growing from 5.6 million to 6.3 million jobs. Employment in utilities is projected to decrease by 5.7 percent through 2012. Despite increased output, employment in electric power generation, transmission, and distribution and natural gas distribution is expected to decline through 2012 due to improved technology that increases worker productivity. However, employ­ ment in water, sewage, and other systems is expected to increase 46.4 percent by 2012. Jobs are not easily eliminated by technologi­ cal gains in this industry because water treatment and waste dis­ posal are very labor-intensive activities.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Financial activities. Employment is projected to grow 12.3 per­ cent over the 2002-12 period. Real estate and rental and leasing is expected to grow by 18.4 percent and add 374,000 jobs by 2012. Growth will be due, in part, to increased demand for housing as the population grows. The fastest growing industry in the financial activities supersector will be commercial and industrial machinery and equipment rental and leasing, which will grow by 39.8 percent. Finance and insurance is expected to increase by 590,000 jobs, or 10.2 percent, by 2012. Employment in securities, commodity contracts, and other financial investments and related activities is expected to grow 15.5 percent by 2012, reflecting the increased number of baby boomers in their peak savings years, the growth of tax-favorable retirement plans, and the globalization of the securi­ ties markets. Employment in credit intermediation and related ser­ vices, including banks, will grow by 10.9 percent and add about half of all new jobs within finance and insurance. Insurance carri­ ers and related activities is expected to grow by 7.5 percent and add 168,000 new jobs by 2012. The number of jobs within agencies, brokerages, and other insurance related activities is expected to grow about 14.5 percent, as many insurance carriers downsize their sales staffs and as agents set up their own businesses. Government. Between 2002 and 2012, government employment, including that in public education and hospitals, is expected to in­ crease by 11.8 percent, from21.5 million to 24millionjobs. Growth in government employment will be fueled by growth in State and local educational services and the shift of responsibilities from the Federal Government to the State and local governments. Local government educational services is projected to increase 17.5 per­ cent, adding over 1.3 million jobs. State government educational services also is projected to grow 17.5 percent, adding 388,000jobs. Federal Government employment, including the Postal Service, is expected to increase by less than 1 percent as the Federal Govern­ ment continues to contract out many government jobs to private companies. Other services (except government). Employment will grow by 15.7 percent. More than 4 out of 10 new jobs in this supersector will  Chart 5. Percent change in wage and salary employment, goods-producing industry divisions, 1992-2002 and projected 2002-2012 Percent change  1992-2002  FBI 2002-2012  -20 L  Construction  Manufacturing  Agriculture, forestry, and fishing  Mining  4 Occupational Outlook Handbook be in religious organizations, which is expected to grow by 24.4 per­ cent. Personal care services will be the fastest growing industry 27.6 percent. Also included among other services is private household employment, which is expected to decrease 7.2 percent. Goods-producing industries. Employment in the goods-producing industries has been relatively stagnant since the early 1980s. Overall, this sector is expected to grow 3.3 percent over the 2002­ 12 period. Although employment is expected to increase more slowly than in the service-providing industries, projected growth among goods-producing industries varies considerably (chart 5). Construction. Employment in construction is expected to in­ crease by 15.1 percent, from 6.7 million to 7.7 million. Demand for new housing and an increase in road, bridge, and tunnel construc­ tion will account for the bulk of job growth in this supersector. Manufacturing. Employment change in manufacturing will vary by individual industry, but overall employment in this supersector will decline by 1 percent or 157,000 jobs. For example, employ­ ment in plastics and rubber products manufacturing and machinery manufacturing is expected to grow by 138,000 and 120,000 jobs, respectively. Due to an aging population and increasing life ex­ pectancies, pharmaceutical and medicine manufacturing is expected to grow by 23.2 percent and add 68,000 jobs through 2012. How­ ever, productivity gains, job automation, and international compe­ tition will adversely affect employment in many other manufactur­ ing industries. Employment in textile mills and apparel manufacturing will decline by 136,000 and 245,000 jobs, respec­ tively. Employment in computer and electronic product manufac­ turing also will decline by 189,000 jobs through 2012. Agriculture, forestry, fishing, and hunting. Overall employment in agriculture, forestry, fishing, and hunting is expected to decrease by 2 percent. Employment is expected to continue to decline due to advancements in technology. The only industry within this supersector expected to grow is support activities for agriculture and forestry, which includes farm labor contractors and farm man­ agement services. This industry is expected to grow by 18.4 per­ cent and add 17,000 new jobs. Mining. Employment in mining is expected to decrease 11.8 percent, or by some 60,000 jobs, by 2012. Employment in coal mining and metal ore mining is expected to decline by 30.2 percent and 38.8 percent, respectively. Employment in oil and gas extrac­ tion also is projected to decline by 27.8 percent through 2012. Employment decreases in these industries are attributable mainly to technology gains that boost worker productivity, growing interna­ tional competition, restricted access to Federal lands, and strict en­ vironmental regulations that require cleaning of burning fuels. Occupation Expansion of service-providing industries is expected to continue, creating demand for many occupations. However, projected job growth varies among major occupational groups (chart 6). Professional and related occupations. Professional and related occupations will grow the fastest and add more new jobs than any other major occupational group. Over the 2002-12 period, a 23.3percent increase in the number of professional and related jobs is projected, a gain of 6.5 million. Professional and related workers perform a wide variety of duties, and are employed throughout pri­ vate industry and government. About three-quarters of the job growth will come from three groups of professional occupations— computer and mathematical occupations, healthcare practitioners and technical occupations, and education, training, and library oc­ cupations—which will add 4.9 million jobs combined.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Chart 6. Percent change in total employment by major occupational group, projected 2002-2012 Professional and related Service Management, business, and financial Construction and extraction Installation, maintenance, and repair Transportation and material moving Sales and related Office and administrative support Farming, fishing, and forestry Production Percent change  Service occupations. Service workers perform services for the public. Employment in service occupations is projected to increase by 5.3 million, or 20.1 percent, the second largest numerical gain and second highest rate of growth among the major occupational groups. Food preparation and serving related occupations are ex­ pected to add the most jobs among the service occupations, 1.6 mil­ lion by 2012. However, healthcare support occupations are expected to grow the fastest, 34.5 percent, adding 1.1 million new jobs. Management, business, and financial occupations. Workers in management, business, and financial occupations plan and direct the activities of business, government, and other organizations. Their employment is expected to increase by 2.4 million, or 15.4 percent, by 2012. Among managers, the numbers of computer and informa­ tion systems managers and of preschool and childcare center/pro­ gram educational administrators will grow the fastest, by 36.1 per­ cent and 32 percent, respectively. General and operations managers will add the most new jobs, 376,000, by 2012. Farmers and ranch­ ers are the only workers in this major occupational group whose numbers are expected to decline, losing 238,000jobs. Among busi­ ness and financial occupations, accountants and auditors and man­ agement analysts will add the most jobs, 381,000 combined. Man­ agement analysts also will be one of the fastest growing occupations in this group, along with personal financial advisors, with job in­ creases of 30.4 percent and 34.6 percent, respectively. Construction and extraction occupations. Construction and ex­ traction workers construct new residential and commercial build­ ings, and also work in mines, quarries, and oil and gas fields. Em­ ployment of these workers is expected to grow 15 percent, adding 1.1 million new jobs. Construction trades and related workers will account for more than three-fourths of these new jobs, 857,000, by 2012. Many extraction occupations will decline, reflecting overall employment losses in the mining and oil and gas extraction indus­ tries. Installation, maintenance, and repair occupations. Workers in installation, maintenance, and repair occupations install new equip­ ment and maintain and repair older equipment. These occupations will add 776,000 jobs by 2012, growing by 13.6 percent. Automo-  Tomorrow’s Jobs 5  Chart 7. Percent change in employment in occupations projected to grow fastest, 2002-2012 Medical assistants Network systems and data communications analysts Physician assistants Social and human service assistants Home health aides Medical records and health information technicians Physical therapist aides Computer software engineers, applications Computer software engineers, systems software Physical therapist assistants Fitness trainers and aerobics instructors Database administrators Veterinary technologists and technicians Hazardous materials removal workers Dental hygienists Occupational therapist aides Dental assistants  Personal and home care aides Self-enrichment education teachers Computer systems analysts  0  10  20  30  40  50  60  Percent change  tive service technicians and mechanics and general maintenance and repair workers will account for more than 4 in 10 new installation, maintenance, and repair jobs. The fastest growth rate will be among heating, air-conditioning, and refrigeration mechanics and install­ ers, an occupation that is expected to grow 31.8 percent over the 2002-12 period. Transportation and material moving occupations. Transporta­ tion and material-moving workers transport people and materials by land, sea, or air. The number of these workers should grow 13.1 percent, accounting for 1.3 million additional jobs by 2012. Among transportation occupations, motor vehicle operators will add the most jobs, 760,000. Rail transportation occupations are the only group in which employment is projected to decline, by 5.4 percent, through 2012. Material moving occupations will grow 8.9 percent and will add 422,000 jobs. Sales and related occupations. Sales and related workers trans­ fer goods and services among businesses and consumers. Sales and related occupations are expected to add 2 million new jobs by 2012, growing by 12.9 percent. The majority of these jobs will be among retail salespersons and cashiers, occupations that will add more than 1 million jobs combined. Office and administrative support occupations. Office and ad­ ministrative support workers perform the day-to-day activities of the office, such as preparing and filing documents, dealing with the  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  public, and distributing information. Employment in these occupa­ tions is expected to grow by 6.8 percent, adding 1.6 million new jobs by 2012. Customer service representatives will add the most new jobs, 460,000. Desktop publishers will be among the fastest growing occupations in this group, increasing by 29.2 percent over the decade. Office and administrative support occupations account for 11 of the 20 occupations with the largest employment declines. Farming, fishing, and forestry occupations. Farming, fishing, and forestry workers cultivate plants, breed and raise livestock, and catch animals. These occupations will grow 3.3 percent and add 35.000 new jobs by 2012. Agricultural workers, including farmworkers and laborers, accounted for the overwhelming major­ ity of new jobs in this group. The numbers of both fishing and logging workers are expected to decline, by 26.8 percent and 3.2 percent, respectively. Production occupations. Production workers are employed mainly in manufacturing, where they assemble goods and operate plants. Production occupations will have the slowest job growth among the major occupational groups, 3.2 percent, adding 354,000 jobs by 2012. Jobs will be created for many production occupa­ tions, including food processing workers, machinists, and welders, cutters, solderers, and brazers. Textile, apparel, and furnishings occupations, as well as assemblers and fabricators, will account for much of the job losses among production occupations. Among all occupations in the economy, computer and healthcare occupations are expected to grow the fastest over the projection period (chart 7). In fact, healthcare occupations make up 10 of the 20 fastest growing occupations, while computer occupations ac­ count for 5 out of the 20 fastest growing occupations in the economy. In addition to high growth rates, these 15 computer and healthcare occupations combined will add more than 1.5 million new jobs. High growth rates among computer and healthcare occupations re­ flect projected rapid growth in the computer and data processing and health services industries. The 20 occupations listed in chart 8 will account for more than one-third of all new jobs, 8 million combined, over the 2002-12 period. The occupations with the largest numerical increases cover a wider range of occupational categories than do those occupations with the fastest growth rates. Health occupations will account for some of these increases in employment, as well as occupations in education, sales, transportation, office and administrative support, and food service. Many of these occupations are very large, and will create more new jobs than will those with high growth rates. Only 2 out of the 20 fastest growing occupations—home health aides and personal and home care aides—also are projected to be among the 20 occupations with the largest numerical increases in employment. Declining occupational employment stems from declining in­ dustry employment, technological advancements, changes in busi­ ness practices, and other factors. For example, increased produc­ tivity and farm consolidations are expected to result in a decline of 238.000 farmers and ranchers over the 2002-12 period (chart 9). The majority of the 20 occupations with the largest numerical de­ creases are office and administrative support and production occu­ pations, which are affected by increasing plant and factory automa­ tion and the implementation of office technology that reduces the needs for these workers. For example, employment of word pro­ cessors and typists is expected to decline due to the proliferation of personal computers, which allows other workers to perform duties formerly assigned to word processors and typists.  6 Occupational Outlook Handbook  Chart 8. Occupations with the largest numerical increases in employment, projected 2002-2012  Chart 9. Job declines in occupations with the largest numerical decreases in employment, projected 2002-2012  Registered nurses  Farmers and ranchers  Postsecondary teachers  Sewing machine operators  Retail salespersons  Word processors and typists  Customer service representatives Stock clerks and order fillers Combined food preparation and serving woikers, including fast food  Secretaries, except legal, medical, and executive  Cashiers, except gaming  Electrical and electronic equipment assemblers  Janitors and cleaners, except maids and housekeeping cleaners  Computer operators  General and operations managers Telephone operators Waiters and waitresses  Postal Service mail sorters, processors, and processing-machine operators  Nursing aides, orderlies, and attendants  Loan interviewers and clerks  Truck drivers, heavy and tractor-trailer  Data-entry keyers  Receptionists and information clerks  Telemarketers  Security guards  Textile knitting and weaving machine setters, operators, and tenders  Office clerks, general  Textile winding, twisting, and drawing-out machine setters, operators, and tenders  Teacher assistants Team assemblers  Sales representatives, wholesale and manufacturing, except technical and scientific products  Order clerks  Home health aides  Door-to-door sales workers, news and street vendors, and related workers  Personal and home care aides Travel agents Truck drivers, light or delivery services Brokerage clerks Landscaping and groundskeeping workers  Eligibility interviewers, government programs  0  100  200  300  400  500  j____ i  600 700  Increase (in thousands)  Education and training Education is essential in getting a high-paying job. In fact, for all but 1 of the 50 highest paying occupations, a college degree or higher is the most significant source of education or training. Air traffic controllers is the only occupation of the 50 highest paying for which this is not the case. Among the 20 fastest growing occupations, a bachelor’s or as­ sociate degree is the most significant source of education or train­ ing for 10 of them—network systems and data communications analysts; physician assistants; medical records and health informa­ tion technicians; computer software engineers, applications; com­ puter software engineers, systems software; physical therapist as­ sistants; database administrators; veterinary technologists and technicians; dental hygienists; and computer systems analysts. Onthe-job training is the most significant source of education or train­ ing for another 8 of the 20 fastest growing occupations—medical assistants, social and human service assistants, home health aides, physical therapist aides, hazardous materials removal workers, oc­ cupational therapist aides, dental assistants, and personal and home care aides. In contrast, on-the-job training is the most significant source of education or training for 17 of the 20 occupations with the largest numerical increases; 3 of these 20 occupations—regis­ tered nurses, postsecondary teachers, and general and operations  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -250 -200 -150  ■100  -50  Decrease (in thousands)  managers—have an associate or higher degree as the most signifi­ cant source of education or training. On-the-job training also is the most significant source of education or training for 19 of the 20 occupations with the largest numerical decreases; one of these 20 occupations—travel agents—has a postsecondary vocational award as the most significant source of education or training. Table 1 lists the fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2002 and 2012, by level of education or training. Total job openings Job openings stem from both employment growth and replacement needs (chart 10). Replacement needs arise as workers leave occu­ pations. Some transfer to other occupations while others retire, re­ turn to school, or quit to assume household responsibilities. Re­ placement needs are projected to account for 60 percent of the approximately 56 million job openings between 2002 and 2012. Thus, even occupations projected to experience little or no growth or to decline in employment still may offer many job openings. Professional and related occupations are projected to grow faster and add more jobs than any other major occupational group, with 6.5 million new jobs by 2012. Three-fourths of the job growth in professional and related occupations is expected among computer  Tomorrow’s Jobs 7  Chart 10. Number of jobs due to growth and replacement needs by major occupational group, projected 2002-2012 Service  Professional and related Office and administrative support Sales and related Management, business, and financial Transportation and material moving Production  Construction and extraction Installation, maintenance, and repair  ■ Growth I  I Replacement needs  Farming, fishing, and forestry   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Millions of jobs  and mathematical occupations; healthcare practitioners and techni­ cal occupations; and education, training, and library occupations. With 5.3 million job openings due to replacement needs, profes­ sional and related occupations are the only major group projected to generate more openings from job growth than from replacement needs. Service occupations are projected to have the largest number of total job openings, 13 million, reflecting high replacement needs. A large number of replacements will be necessary as young work­ ers leave food preparation and service occupations. Replacement needs generally are greatest in the largest occupations and in those with relatively low pay or limited training requirements. Office automation will significantly affect many individual of­ fice and administrative support occupations. Overall, these occu­ pations are projected to grow more slowly than average, while some are projected to decline. Office and administrative support occupa­ tions are projected to create 7.5 million job openings over the 2002­ 12 period, ranking third behind service and professional and related occupations. Farming, fishing, and forestry occupations are projected to have the fewest job openings, approximately 335,000. Because job growth is expected to be slow, and levels of retirement and job turn­ over high, more than 85 percent of these projected job openings are due to replacement needs.  8 Occupational Outlook Handbook Table 1. Fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2002 and 2012, by level of education or training Education or training level First professional degree  Fastest growing occupations Pharmacists Veterinarians Chiropractors Physicians and surgeons Optometrists  Occupations having the largest numerical job growth  Lawyers Physicians and surgeons Pharmacists Clergy Veterinarians  Doctoral degree  Postsecondary teachers Computer and information scientists, research Medical scientists, except epidemiologists Clinical, counseling, and school psychologists Biochemists and biophysicists  Postsecondary teachers Clinical, counseling, and school psychologists Medical scientists, except epidemiologists Computer and information scientists, research Biochemists and biophysicists  Master’s degree  Physical therapists Mental health and substance abuse social workers Rehabilitation counselors Survey researchers Epidemiologists  Physical therapists Rehabilitation counselors Educational, vocational, and school counselors Mental health and substance abuse social workers Market research analysts  Bachelor’s or higher degree, plus work experience  Computer and information systems managers Education administrators, preschool and childcare center/program Sales managers Management analysts Medical and health services managers  Bachelor’s degree  Network systems and data communications analysts Physician assistants Computer software engineers, applications Computer software engineers, systems software Database administrators  Elementary school teachers, except special education Accountants and auditors Computer systems analysts Secondary school teachers, except special and vocational education Computer software engineers, applications  Associate degree  Medical records and health information technicians Physical therapist assistants Veterinary technologists and technicians Dental hygienists Occupational therapist assistants Fitness trainers and aerobics instructors Preschool teachers, except special education Respiratory therapy technicians Emergency medical technicians and paramedics Security and fire alarm systems installers  General and operations managers Management analysts Financial managers Sales managers Computer and information systems managers  Registered nurses Computer support specialists Medical records and health information technicians Dental hygienists Paralegals and legal assistants  Postsecondary vocational award Preschool teachers, except special education Licensed practical and licensed vocational nurses Automotive service technicians and mechanics Hairdressers, hairstylists, and cosmetologists Fitness trainers and aerobics instructors  Work experience in a related occupation  Self-enrichment education teachers Emergency management specialists Private detectives and investigators First-line supervisors/managers of protective service workers, except police, fire, and corrections Detectives and criminal investigators  First-line supervisors/managers of retail sales workers First-line supervisors/managers of food preparation and serving workers First-line supervisors/managers of office and administrative support workers First-line supervisors/managers of construction trades and extraction workers Self-enrichment education teachers  Long-term on-the-job training  Heating, air-conditioning, and refrigeration mechanics and installers Audio and video equipment technicians Tile and marble setters Police and sheriff’s patrol officers Electricians Medical assistants Social and human service assistants Hazardous materials removal workers Dental assistants Residential advisors Home health aides Physical therapist aides Occupational therapist aides Personal and home care aides Security guards   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Electricians Police and sheriffs patrol officers Carpenters Cooks, restaurant Plumbers, pipefitters, and steamfitters  Moderate-term on-the-job training Customer service representatives Truck drivers, heavy and tractor-trailer Sales representatives, wholesale and manufacturing, except technical and scientific products Medical assistants Maintenance and repair workers, general  Short-term on-the-job training Retail salespersons Combined food preparation and serving workers, including fast food Cashiers, except gaming Janitors and cleaners, except maids and housekeeping cleaners Waiters and waitresses  Sources of Career Information This section identifies sources of information about career plan­ ning, counseling, training, education, and financial aid. Handbook statements also include a section on sources of additional informa­ tion, which lists organizations that can be contacted for more infor­ mation about particular occupations including, in some cases, the required training and education.  Career information Listed below are several places to begin collecting information on careers and job opportunities. Personal contacts. The people close to you—your family and friends—can be extremely helpful in providing career information. They may be able to answer your questions directly or put you in touch with someone else who can. Networking can lead to meeting someone who can answer your questions about a specific career or company and provide inside information and other helpful hints. It is an effective way to leam the type of training they found neces­ sary for a certain position, how they entered the field, their pros­ pects for advancement, and what they like and dislike about the work. Public libraries, career centers, and guidance offices. These in­ stitutions maintain a great deal of up-to-date material. To begin your library search, look at the computer listings under “vocations” or “careers,” and then under specific fields. Check the periodicals section, where trade and professional magazines and journals about specific occupations and industries are located. Become familiar with the concerns and activities of potential employers by skim­ ming their annual reports and other public documents. Occupa­ tional information on video cassettes and computerized informa­ tion systems or the Internet can be valuable. Don’t forget the librarians; they can be a great source and can save you valuable time by directing you to relevant information. Check your school’s career centers for resources such as indi­ vidual counseling and testing, guest speakers, field trips, books, career magazines, and career days. Always assess career guidance materials carefully. The infor­ mation should be current and objective. Beware of materials that seem to glamorize the occupation, overstate the earnings, or exag­ gerate the demand for workers. Counselors. These professionals are trained to help you discover your strengths and weaknesses, evaluate your goals and values, and determine what you would like in a career. Counselors will not tell you what to do. However, they may administer interest inventories and aptitude tests, interpret the results, and help you explore vari­ ous options. Counselors also may discuss local job markets and the entry requirements and costs of schools, colleges, or training pro­ grams. Counselors are found in: •  High school guidance offices  •  College career planning and placement offices  •  Placement offices in private vocational or technical schools and institutions  •  Vocational rehabilitation agencies   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  • •  Counseling services offered by community organizations Private counseling agencies and private practices  •  State employment service offices  Before employing the services of a private counselor or agency, you may want to seek recommendations and check their creden­ tials. The International Association of Counseling Services (IACS) accredits counseling services throughout the country. Most of these accredited services are college and university services restricted to students of those schools. To receive a listing of accredited ser­ vices for your region, send a self-addressed, stamped, business-size envelope to: >■ IACS, 101 South Whiting St., Suite 211, Alexandria, VA 22304. Telephone: (703) 823-9840. Internet: http://www.iacsinc.org.  The Directory of Counseling Services, an IACS publication pro­ viding employment counseling and other assistance, may be avail­ able in your library or school career counseling center. A list of certified career counselors—most of whom are private, for-fee coun­ selors—by city or State is available from: >- National Board of Certified Counselors, 3 Terrace Way, Suite D, Greensboro, NC 27403-3660. Telephone: (336) 547-0607. Internet: http://www.nbcc.org.  Internet networks and resources. The growth of online listings has made countless resources instantly available at any time. Most companies, professional societies, academic institutions, and gov­ ernment agencies maintain Internet sites that highlight the organization’s latest information and activities. Listings may include information such as government documents, schedules of events, and job openings. Corporate and government Web sites often provide job application information, including links for submitting resumes. Listings for academic institutions often provide links to career counseling and placement services through career resource centers, as well as information on financing your education. Colleges and universities also offer online guides to cam­ pus facilities and admission requirements and procedures. The career information available through the Internet provides much of the same information available through libraries, career centers, and guidance offices. However, no single network or re­ source will contain all desired information, so be prepared to search in a variety of places. As in a library search, look through various lists by field or discipline, or by using keywords. Career sites can be an excellent place to obtain information about job opportunities. They provide a forum for employers to list job openings and for individuals to post their resumes. Some Internet sites also may provide an opportunity to research a particular in­ dustry or company. A major portion of the U.S. Department of Labor’s Labor Mar­ ket Information System is the CareerOneStop site, which operates as a Federal-State partnership. This site includes America’s Job Bank (AJB), America’s Career InfoNet, and America’s Service Locator. CareerOneStop, along with the National Tollfree Helpline (877-US2-JOBS) and the local One-Stop Career Centers in each State, combine to provide a wide range of workforce assistance and resources. Internet: http://www.careeronestop.org. 9  10 Occupational Outlook Handbook America’s Job Bank (AJB), administered by the U.S. Department of Labor, lists more than I million job openings on any given day. These job openings are compiled by State employment service offices throughout the Nation. AJB is accessible at: http://www.ajb.org. America’s Career InfoNet is an especially useful site. It pro­ vides data on employment growth and wages by occupation; the knowledge, skills, and abilities required by an occupation; and links to employers. Internet: http://www.acinet.org/acinet. America’s Service Locator is a partnership between the U.S. Department of Labor, State governments, and local agencies to provide a comprehensive database of service providers accessible via telephone or the Internet by the public. Use of the database is free of charge and directs customers to a range of services avail­ able in their area, including unemployment benefits, job train­ ing, youth programs, seminars, education opportunities, and disabled or older worker programs, among others. Internet: http://www.servicelocator.org. Career Voyages is the result of a collaboration between the U.S. Department of Labor and the U.S. Department of Education. It is designed to provide information on high-growth, highdemand occupations along with the skills and education needed to attain those jobs. Career Voyages is accessible at: http ://www.careervoyages.gov. Professional societies, trade associations, labor unions, business firms, and educational institutions. These organizations provide a variety of free or inexpensive career material. Many of these are listed in the sources of additional information section at the end of individual Handbook statements. For information on occupations not covered in the Handbook, consult directories in your library’s reference section for the names of potential sources. You may start with The Guide to American Directories or The Directory of Di­ rectories. Another useful resource is The Encyclopedia ofAssocia­ tions, an annual publication listing trade associations, professional societies, labor unions, and fraternal and patriotic organizations. The National Technical Information Service Audiovisual Center, a central source for audiovisual material produced by the U.S. Gov­ ernment, sells material on jobs and careers. For a catalog, contact: > NTIS Audiovisual Center, Springfield, VA 22161. Telephone: (703) 605-6000 or (800) 553-6847. Internet: http://www.ntis.gov/nac.  Federal Government. Information on employment with the Federal Government is available from the U.S. Office of Personnel Manage­ ment (OPM) through a telephone-based system. Consult your tele­ phone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site: http://www.usajobs.opm.gov. Information and resources for potential applicants and current employees pertaining to Federal employment of people with dis­ abilities is available at: http://www.opm.gov/disability. Organizations for specific groups. The organizations listed below provide information on career planning, training, or job opportuni­ ties prepared for specific groups. Consult directories in your library’s reference center or a career guidance office for information on ad­ ditional organizations associated with specific groups. Disabled workers: Counseling, training, and placement services for those with disabili­ ties are available from the State Vocational Rehabilitation  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Agency: Internet: http://bccol02.ed.gov/Programs/EROD org_list.cfm?category ID=SVR.  Information on employment opportunities for people with all types of disabilities is available from: > National Organization on Disability, 910 Sixteenth St. NW„ Suite 600, Washington, DC 20006. Telephone: (202) 293-5960. TTY: (202) 293­ 5968. Internet: http://www.nod.org/economic. >■ Half the Planet Foundation, 1875 Eye St. NW., 12th Floor, Washington, DC 20006. Internet: http://www.halftheplanet.org. ► Job Accommodation Network (JAN). Internet: http://ww.jan.wvu.edu.  A comprehensive Federal Web site of disability-related resources is accessible at: http://www.disabilityinfo.gov. Blind workers: Information on the free national reference and referral service for the blind can be obtained by contacting: >• National Federation of the Blind, Job Opportunities for the Blind (JOB), 1800 Johnson St., Baltimore, MD 21230. Telephone: (410) 659-9314. Internet: http://www.nfb.org.  Older workers: >- National Council on the Aging, 300 D St. SW„ Suite 8010, Washington, DC 20024. Telephone: (202)479-1200. Internet: http://www.ncoa.org.  >- National Caucus and Center on Black Aged, Inc., Senior Employment Programs, 1220 L St. NW., Suite 800, Washington, DC 20005. Telephone: (202) 637-8400. Fax: (202) 347-0895. Internet: http://www.ncba-aged.org.  Veterans: Contact the nearest regional office of the U.S. Department of Labor Veterans’ Employment and Training Service or: >• Credentialing Opportunities On-Line (COOL), which explains how Army soldiers can meet civilian certification and license requirements related to their Military Occupational Specialty (MOS). Internet: https://www.cool.army.mil/index.htm.  Women: >- Department of Labor, Women's Bureau, 200 Constitution Ave. NW., Washington, DC 20210. Telephone: (800) 827-5335. Internet: http://www.dol.gov/wb. >• Wider Opportunities for Women, 1001 Connecticut Ave. NW., Suite 930, Washington, DC 20036. Telephone: (202)464-1596. Internet: http://www.WOWonline.org.  Federal laws, executive orders, and selected Federal grant pro­ grams bar discrimination in employment based on race, color, reli­ gion, sex, national origin, age, and handicap. Information on how to file a charge of discrimination is available from U.S. Equal Em­ ployment Opportunity Commission offices around the country. Their addresses and telephone numbers are listed in telephone directories under U.S. Government, EEOC. Telephone: (800) 669-4000 (TTY 1-800-669-6820). Internet: http://www.eeoc.gov.  Education and training information Colleges, schools, and training institutes readily reply to requests for information about their programs. When contacting these insti­ tutions, you may want to keep in mind the following items:  Sources of Career Information 11  • • • • • •  Admission requirements Courses offered Certificates or degrees awarded Cost Available financial aid Location and size of school  •  Placement rate of graduates  Check with professional and trade associations for lists of schools that offer career preparation in a field in which you are interested. High school guidance offices and libraries usually have copies of the directories listed below, as well as college catalogs that can pro­ vide more information on specific institutions. The U.S. Department of Education’s IPEDS (Integrated Postsecondary Education Data System) program has an interactive school search system. You can search for any postsecondary school, focusing your search for a school based upon many factors: Num­ ber of students, type of school (2-year colleges, 4-year colleges, trade schools), public or privately funded institutions, instructional programs and fields of study (majors), accreditation, and geographic location. Once you’ve narrowed your choices, the site provides more detailed information on specific schools, including contact information. There also are links to other helpful sites. Internet: http://nces.ed.gov/ipeds/cool/index.asp. The Directory of Private Career Schools and Colleges of Tech­ nology, put out by the Accrediting Commission of Career Schools and Colleges of Technology, is a helpful resource. Be sure to use the latest edition because these directories and catalogs are revised periodically. Information about home or correspondence study programs ap­ pears in the Directory ofAccredited Institutions. Send requests for the Directory and a list of other publications to: >• Distance Education and Training Council, 1601 18th St. NW., Washington, DC 20009-2529. Telephone: (202) 234-5100. Intemet:http://www.detc.org.  Information about apprenticeships is available from local labor unions, school guidance counselors, and State employment offices or from: >- U.S. Department of Labor, Employment and Training Administration, 200 Constitution Ave. NW., Washington, DC 20210. Telephone: (202) 693-3812. Internet: http://www.doleta.gov.  Completing an internship is an excellent way for students and others to learn about an occupation and to make valuable contacts. Many employers offer internships that provide short-term or part­ time job experience that can lead to a permanent position. Contact your school’s career guidance center or employers directly regard­ ing internship opportunities.  administered by the U.S. Department of Education is presented in The Student Guide to Federal Financial Aid Programs, updated an­ nually. To receive a copy, write to: >■ Federal Student Aid Information Center, c/o Federal Student Aid Programs,P.O. Box 84, Washington, DC 20044-0084. Telephone: (800) 433-3243. Internet: http://www.ed.gov/offices/OSFAP/Students.  The U.S. Department of Health and Human Services offers stu­ dent loan, scholarship, and faculty loan repayment programs for health-related professions. For information, contact: ► HRSA, Bureau of Health Professions, Division of Student Assistance, Parklawn Bldg., Room 8-34, 5600 Fishers Lane, Rockville, MD 20857. Telephone: (888) 275-4772. Internet: http://www.bhpr.hrsa.gov/dsa index.htm.  College is Possible—a resource guide prepared by the Coalition of America’s Colleges and Universities and the U.S. Department of Education—lists books, pamphlets, and Internet sites that help stu­ dents prepare for, choose, and pay for college. It includes informa­ tion on scholarships and is available in English and Spanish. Tele­ phone: (800)433-3243. Internet: http://www.collegeispossible.org. The Armed Forces have several educational assistance programs. These include the Reserve Officers’ Training Corps (ROTC), the new G.I. bill, and tuition assistance. Information can be obtained from military recruiting centers, located in most cities. Internet: http://www.defenselink.mil/other_info/careers.html.  State and local information The Handbook provides information for the Nation as a whole. State or local area information is available from: State Employment Security Agencies. These agencies develop de­ tailed information about local labor markets, such as current and projected employment by occupation and industry, characteristics of the work force, and changes in State and local area economic activity. Listed below are the Internet addresses of these agencies and addresses and telephone numbers of the directors of research and analysis in these agencies. Most States have career information delivery systems (CIDS). Look for these systems in secondary schools, postsecondary insti­ tutions, libraries, job training sites, vocational rehabilitation cen­ ters, and employment service offices. The public can use the sys­ tems’ computers, printed material, microfiche, and tollfree hotlines to obtain information on occupations, educational opportunities, stu­ dent financial aid, apprenticeships, and military careers. Ask coun­ selors for specific locations. State occupational projections also are available on the Internet: http://www.projectionscentraI.com  Financial aid information Information about financial aid is available from a variety of sources. Contact your high school guidance counselor and college financial aid officer for information concerning qualifications and applica­ tions for scholarships, fellowships, grants, loans, and work-study programs. Every State administers financial aid programs; contact State Departments of Education for information. Banks and credit unions will provide information about student loans. You also may want to consult the directories and guides available in guidance of­ fices and public libraries for sources of student financial aid. The Federal Government provides grants, loans, work-study pro­ grams, and other benefits to students. Information about programs  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Alabama Chief, Labor Market Information Division, Department of Industrial Relations, 649 Monroe St., Room 427, Montgomery, AL 36131-2280. Telephone: (334) 242-8859. Internet: http://www.dir.state.al.us/lmi Alaska Chief, Research and Analysis Section, Department of Labor and Workforce De­ velopment, 1111 West 8th St., Juneau, AK 99802-5501. Telephone: (907) 465­ 6035. Internet: http://almis.labor.state.ak.us Arizona Research Administrator, Department of Economic Security, 1789 West Jefferson St., 733A, Phoenix, AZ 85007-3295. Telephone: (602) 542-3871. Internet: http://www.workforce.az.gov  12 Occupational Outlook Handbook Arkansas Director, Labor Market Information, Employment Security Department, P.O. Box 2981, Little Rock, AR 72203-2981. Telephone: (501) 682-3159. Internet: http://www.state.ar.us/esd  Louisiana Director, Research and Statistics Section, Department of Labor, 1001 North 23rd St., Baton Rouge, LA 70804-4094. Telephone: (225)342-3141. Internet: http://www.laworks.net  California Chief, Labor Market Information Division, MIC57, Employment Development Department, 7000 Franklin Blvd., Building 1100, Sacramento, CA 95823. Tele­ phone: (916) 262-2160. Internet: http://www.calmis.cahwnet.gov  Maine Director, Division of Labor Market Information Services, Maine Department of Labor, 20 Union St., Augusta, ME 04330-6826. Telephone: (207) 287-2271. Internet: http://www.state.me.us/labor/lmis/index.html  Colorodo Director, Labor Market Information, Department of Labor and Employment, 1515 Arapahoe St., Tower 2, Suite 300, Denver, CO 80202-2117. Telephone: (303) 318-8898. Internet: http://www.coworkforce.com/lmi  Maryland Director, Labor Market Analysis and Information, Department of Labor, Licensing and Regulations, 1100 North Eutaw St„ Room 316, Baltimore, Md. 21201-2206. Telephone: (410) 767-2250. Internet: http://www.dllr.state.md.us/lmi/index.htm  Connecticut Director, Employment Security Division, Research and Information, Department of Labor, 200 Folly Brook Blvd., Wethersfield, CT 06109-1114. Telephone: (860) 263-6255. Internet: http://www.ctdol.state.ct.us/lmi/index.htm  Massachusetts Assistant Director for Research, Division of Employment and Training, 19 Staniford St., Boston, MA 02114. Telephone: (617) 626-6556. Internet: http://www.detma.org/lmiinfo.htm  Delaware Chief, Office of Occupational and Labor Market Information, Department of Labor, 4425 N. Market St.-Fox Valley Annex, Wilmington, DE 19809-1307. Telephone: (302) 761-8050. Internet: http://www.oolmi.net  Michigan Director, Labor Market Information Division, Department of Career Develop­ ment, 3032 West Grand Blvd., 9th Floor, Detroit, MI 48202. Telephone: (313) 456-3090. Internet: http://www.miclilmi.org  District of Columbia Chief, Office of Labor Market Research and Information, 64 New York Ave. NE., Suite 3035, Washington, D.C. 20002. Telephone: (202)671-1633. Internet: http://does.ci.washington.dc.us/info/labor_mkt.shtm  Minnesota Labor Market Information Director, Department of Employment and Economic Development, 390 N. Robert St., 5th Floor, St. Paul, MN 55101. Telephone: (651) 296-4087. Internet: http://www.mnwfc.org/lmi.htm  Florida Process Manager, Labor Market Statistics, Agency for Workforce Innovation, MSCG-020,107 E. Madison St., Tallahassee, FL 32399-4111. Telephone: (850) 488-1048. Internet: http://www.labormarketinfo.com  Mississippi Chief, Labor Market Information Division, Employment Security Commission, 1520 West Capitol St., Jackson, MS 39215-1699. Telephone: (601) 961-7424. Internet: http://www.mesc.state.ms.us/lmi/index.html  Georgia Director, Workforce Information and Analysis, Room 300, Department of La­ bor, 223 Courtland St., CWC Building, Atlanta, GA 30303. Telephone: (404) 232-3875. Internet: http://www.dol.statc.ga.us/lmi  Missouri Research Manager, Labor Market Information, Department of Economic Devel­ opment, 301 West High St., Jefferson City, MO 65102. Telephone: (573) 751­ 3609. Internet: http://www.works.state.mo.us/lmi  Guam Director, Government of Guam, Sunny Plaza, 2nd Floor, 125 Tun Jesus Crisostomo, Tamuning, GU 96911. Telephone: (671) 647-7066.  Montana Director, Research and Analysis, Department of Labor and Industry, 1327 Lockey and Roberts Sts., Helena, MT 59601. Telephone: (406) 444-2430. Internet: http://rad.dli.state.mt.us  Hawaii Chief, Research and Statistics Office, Department of Labor and Industrial Rela­ tions, 830 Punchbowl St., Room 304, Honolulu, HI 96813. Telephone: (808) 586-8999. Internet: http://www.state.hi.us/dlir/rs/loihi Idaho Chief, Research and Analysis Bureau, Department of Labor, 317 Main St., Boise, ID 83735-0670. Telephone: (208) 334-6170. Internet: http://www.labor.state.id.us/lmi/id-lmi.htm Illinois Director, Economic Information and Analysis, Illinois Department of Employ­ ment Security, 401 South State St., 7th Floor-North, Chicago, IL 60605. Tele­ phone: (312) 793-2316. Internet: http://lmi.ides.state.il.us Indiana Director, Labor Market Information - South E211, Department of Workforce Development, 10 North Senate Ave., Indianapolis, IN 46204-2277. Telephone: (317) 232-7460. Internet: http://www.dwd.state.in.us Iowa Division Administrator, Information and Policy Division, Iowa Workforce De­ velopment, 1000 East Grand Ave., Des Moines, LA 50319-0209. Telephone: (515) 281-0255. Internet: http://www.state.ia.us/iwd Kansas Chief, Labor Market Information Services, Department of Human Resources. 401 SW Topeka Blvd., Topeka, KS 66603-3182. Telephone: (785) 296-5058. Internet: http://laborstats.hr.state.ks.us Kentucky Manager, Research and Statistics Branch, Department for Employment Services, Workforce Development Cabinet, 275 East Main St., 2 W-G, Frankfort, KY 40621. Telephone: (502) 564-7976. Internet: http://www.workforcekentucky.ky.gov   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nebraska Administrator, Labor Market Information Center, Nebraska Workforce Devel­ opment, 550 South 16th St., Lincoln, NE 68508. Telephone: (402) 471-9964. Internet: http://www.dol.state.ne.us/nelmi.htm Nevada Chief, Research and Analysis, Department of Employment Training and Reha­ bilitation, 500 East Third St., Carson City, NV 89713-0020. Telephone: (775) 684-0387. Internet: http://www.detr.state.nv.us/lmi/index.htm New Hampshire Director, Economic and Labor Market Information, Department of Employment Security, 32 South Main St., Concord, NH 03301-4587. Telephone: (603) 228­ 4123. Internet: http://www.nhworks.state.nh.us/lmipage.htm New Jersey Director, Labor Market and Demographic Research, Department of Labor, John Fitch Plaza, 5th Floor, Trenton, NJ 08625. Telephone: (609) 292-0099. Internet: http://www.state.nj.us/labor/lra New Mexico Research Chief, Economic Research and Analysis, Department of Labor, 501 Mountain Rd., Albuquerque, NM 87102. Telephone: (505)841-8645. Internet: http://www.dol.state.nm.us/dol_Imif.html New York Director, Division of Research and Statistics, New York State Department of Labor, State Campus, Building 12, Room 402, Albany, NY 12240-0020. Tele­ phone: (518) 457-6369. Internet: http://www.labor.state.ny.us North Carolina Director, Labor Market Information Division, Employment Security Commis­ sion, 700 Wade Ave., Raleigh. NC 27605. Telephone: (919) 733-2936. Internet: http://www.ncesc.com  Sources of Career Information 13 North Dakota LMI Director, Research and Statistics, Job Service North Dakota, 1000 East Divide, Bismarck, ND 58501. Telephone: (701) 328-2868.Internet: http://www.state.nd.us/jsnd warehouse.htm?bookmark=warehouse Ohio Director, Labor Market Information Division, Department of Job and Family Services, 4300 Kimberly Pkwy., 3rd Floor, Columbus, OH 43232. Telephone: (614) 752-9494. Internet: http://lmi.state.oh.us Oklahoma Director, Economic Research and Analysis, Employment Security Commission, 2401 N. Lincoln, Room 402-1, Oklahoma City, OK 73105. Telephone: (405) 557-7265. Internet: http://www.oesc.state.ok.us/lmi/default.htm Oregon Manager, Workforce and Economic Research, Oregon Employment Department, 875 Union St., NE„ Room 207, Salem, OR 97311 -9986. Telephone: (503) 947­ 1212. Internet: http://olmis.emp.state.or.us Pennsylvania Director, Center for Workforce Information and Analysis, Department of Labor and Industry, Seventh and Forster Sts., Room 220, Harrisburg, PA 17121-0001. Telephone: (717) 787-3266. Internet: www.dli.state.pa.us/workforceinfo Puerto Rico Director, Bureau of Labor Statistics, Department of Labor and Human Resources, 505 Munoz Rivera Ave., 17th Floor, Hato Rey, PR 00918. Telephone: (787) 754-5340. Rhode Island Director, Labor Market Information, Department of Employment and Training, 1511 Pontiac Ave., Cranston, RI 02920. Telephone: (401) 462-8767. Internet: http://www.dlt.ri.gov/lmi South Carolina Director, Labor Market Information Division, Employment Security Commis­ sion, 631 Hampton St., Columbia, SC 29201. Telephone: (803) 737-2660. Internet: http://www.sces.org/lmi/index.asp South Dakota Director, Labor Market Information Division, Department of Labor, 420 S. Roosevelt St., Aberdeen, SD 57401-5131. Telephone: (605)626-2314. Internet: http://www.state.sd.us/dol/lmic/index.htm Tennessee Director, Research and Statistics Division, Department of Labor and Workforce De­ velopment, 500 James Robertson Pkwy., 11th Floor, Nashville, TN 37245-1000. Telephone: (615) 741-2284. Internet: http://www.state.tn.us/labor-wfd/lmi.htm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Texas Director, Labor Market Information, Texas Workforce Commission, 9001 North IH-35, Suite 103A, Austin, TX 75753. Telephone: (512) 491-4802. Internet: http ://www.tracer2.com Utah LMI Director, Workforce Information, Department of Workforce Services, 140 East 300 South, Salt Lake City, UT 84111. Telephone: (801)526-9401. Internet: http://jobs.utah.gov/wi Vermont Chief, Research and Analysis, Department of Employment and Training, 5 Green Mountain Dr., Montpelier, VT 05602. Telephone: (802) 828-4153. Internet: http://www.vtlmi.info Virgin Islands Chief, Bureau of Labor Statistics, Department of Labor, 53-A, 54 A and B, Kronprindsens Gade, Charlotte Amalie, VI 00801. Telephone: (340) 776-3700. Virginia Director, Economic Information Services, Virginia Employment Commission, 703 East Main St., Richmond, VA 23219. Telephone: (804)786-7496. Internet: http://www.vec.state.va.us/index.cfm?loc=lbrmkt&info=lmi Washington Director, Labor Market and Economic Analysis, Employment Security Depart­ ment, 605 Woodland Square Loop, Lacey, WA 98506. Telephone: (360) 438­ 4804. Internet: http://www.wa.gov/esd/lmea West Virginia Director, Research Information and Analysis Division, Bureau of Employment Programs, 112 California Ave., Room 107, Charleston, WV 25305-0112. Tele­ phone: (304) 558-2660. Internet: http://www.state.wv.us/bep/lmi/default.htm Wisconsin Director, Bureau of Workforce Information, Department of Workforce Develop­ ment, 201 E. Washington Ave., Madison, WI 53702. Telephone: (608) 267­ 9705. Internet: http://www.dwd.state.wi.us/dwelmi Wyoming Manager, Research and Planning, Department of Employment, 246 South Cen­ ter St., 2nd floor, Casper, WY 82601. Telephone: (307) 473-3807. Internet: http://wydoe.state.wy.us  Finding a Job and Evaluating a Job Offer Finding information on available jobs It takes some people a great deal of time and effort to find a job they enjoy. Others may walk right into an ideal employment situation. Do not be discouraged if you have to pursue many leads. Friends, neighbors, teachers, and counselors may know of available jobs in your field of interest. Read the classified ads. Consult State em­ ployment service offices and consider private employment agen­ cies. You also may contact employers directly. Where to learn about job openings Personal contacts School career planning and placement offices Employers Classified ads —National and local newspapers —Professional journals —Trade magazines Internet networks and resources State employment service offices Federal Government Professional associations Labor unions Private employment agencies and career consultants Community agencies  Job search methods Personal contacts. Your family, friends, and acquaintances may offer one of the most effective ways to find a job. They may help you directly or put you in touch with someone else who can. Such networking can lead to information about specific job openings, many of which may not be publicly posted. School career planning and placement offices. High school and college placement offices help their students and alumni find jobs. They set up appointments and allow recruiters to use their facilities for interviews. Placement offices usually have a list of part-time, temporary, and summer jobs offered on campus. They also may have lists of jobs for regional, nonprofit, and government organiza­ tions. Students can receive career counseling and testing and job search advice. At career resource libraries, they may attend work­ shops on such topics as job search strategy, resume writing, letter writing, and effective interviewing; critique drafts of resumes and watch videotapes of mock interviews; explore files of resumes and references; and attend job fairs conducted by the placement office. Employers. Through your library and Internet research, develop a list of potential employers in your desired career field. Employer Web sites often contain lists of job openings. Websites and busi­ ness directories can provide you with information on how to apply for a position or whom to contact. Even if no open positions are posted, do not hesitate to contact the employer and the relevant de­ partment. Set up an interview with someone working in the same area in which you wish to work. Ask them how they got started, what they enjoy or dislike about the work, what type of qualifica­ tions are necessary for the job, and what type of personality suc­ Digitized14for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ceeds in that position. Even if they don’t have a position available, they may be able to put you in contact with other people who might hire you, and they can keep you in mind if a position opens up. Make sure to send them your resume and a cover letter. If you are able to obtain an interview, be sure to send a thank-you note. Di­ rectly contacting employers is one of the most successful means of job hunting. Classified ads. The “Help Wanted” ads in newspapers list numer­ ous jobs. You should realize, however, that many other job open­ ings are not listed, and that the classified ads sometimes do not give all of the important information. They may offer little or no de­ scription of the job, working conditions, or pay. Some ads do not identify the employer. They may simply give a post office box to which you can mail your resume, making followup inquiries very difficult. Some ads offer out-of-town jobs; others advertise em­ ployment agencies rather than actual employment opportunities. When using classified ads, keep the following in mind: •  Do not rely solely on the classifieds to find a job; follow other leads as well.  •  Answer ads promptly, because openings may be filled quickly, even before the ad stops appearing in the paper.  •  Read the ads every day, particularly the Sunday edition, which usually includes the most listings.  •  Beware of “no experience necessary” ads. These ads often signal low wages, poor working conditions, or commission work.  •  Keep a record of all ads to which you have responded, including the specific skills, educational background, and personal qualifications required for the position.  Internet networks and resources. The Internet provides a variety of information, including job listings and job search resources and techniques. However, no single Web site or resource will contain all of the information available on employment or career opportu­ nities, so be prepared to search for what you need. Remember that job listings may be posted by field or discipline, so begin your search using keywords. Some Web sites provide national or local classi­ fied listings and allow jobseekers to post their resumes online. Other sites offer advice on how to search for a job, prepare for an inter­ view, or write your resume. When searching employment data­ bases on the Internet, it usually is possible to send your resume to an employer by e-mail or to post it online. State employment service offices. The State employment service, sometimes called the Job Service, operates in coordination with the U.S. Department of Labor’s Employment and Training Adminis­ tration. Local offices, found nationwide, help jobseekers to find jobs and help employers to find qualified workers at no cost to ei­ ther. To find the office nearest you, look in the State government telephone listings under “Job Service” or “Employment.” Job matching and referral. At the State employment service office, an interviewer will determine if you are “job ready” or if you need help from counseling and testing services to assess your  Finding and Evaluating a Job Offer 15 occupational aptitudes and interests and to help you choose and prepare for a career. After you are “job ready,” you may examine available job listings and select openings that interest you. A staff member can then describe the job openings in detail and arrange for interviews with prospective employers. America’s Job Bank, sponsored by the U.S. Department of La­ bor, is an Internet site that allows you to search through a database of more than 1 million jobs nationwide, create and post your re­ sume online, and set up an automated job search. The database contains a wide range of mostly full-time private sector jobs that are available all over the country. Jobseekers can access America’s Job Bank at: http://www.ajb.org. Computers with access to the Internet are available to the public in any local public employment service office, school, library, or military installation. Using Internet Resources to Plan your Future, a U.S. Depart­ ment of Labor publication, offers advice on organizing your Internet job search. It is primarily intended to provide instruction for jobseekers on how to use the Internet to their best advantage, but recruiters and other career service industry professionals will find information here to help them also. How to Use the Internet in your Job Search; The Job Search Process; and the Career-Related Pages, other U.S. Department of Labor Internet publications, each discusses specific steps that jobseekers can follow to identify employment opportunities. Included are daily tips and hints, plus a large data­ base of links and job search engines. Many Department of Labor and other publications for jobseekers are available at: http://safetynet.doIeta.gov/netsourc.htm. Check with your State employment service office, or order a copy of these and other publications from the U.S. Government Printing Office’s Super­ intendent of Documents. Telephone: (202) 512-1800. Internet: http://bookstore.gpo.gov or http://www.doleta.gov. Services for special groups. By law, veterans are entitled to pri­ ority for job placement at State employment service centers. If you are a veteran, a veterans’ employment representative can inform you of available assistance and help you to deal with problems. State employment service offices refer people to opportunities available under the Workforce Investment Act (WIA) of 1998. WIA reforms Federal employment, adult education, and vocational reha­ bilitation programs to create an integrated, “one-stop” system of workforce investment and education activities for adults and youths. Services are provided to employers and jobseekers, including adults, dislocated workers, and youths. WIA’s primary purpose is to in­ crease the employment, retention, skills, and earnings of partici­ pants. These programs help to prepare people to participate in the State’s workforce, increase their employment and earnings poten­ tial, improve their educational and occupational skills, and reduce their dependency on welfare, which will improve the quality of the workforce and enhance the productivity and competitiveness of the Nation’s economy. Federal Government. Information on obtaining a position with the Federal Government is available from the U.S. Office of Personnel Management (OPM) through a telephone-based system. Consult your telephone directory under U.S. Government for a local num­ ber or call the Federal Relay Service for the hearing impaired (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site at: http://www.usajobs.opm.gov. Professional associations. Many professions have associations that offer employment information, including career planning, educa­ tional programs, job listings, and job placement. To use these ser­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  vices, associations usually require that you be a member; informa­ tion can be obtained directly from an association through the Internet, by telephone, or by mail. Labor unions. Labor unions provide various employment services to members, including apprenticeship programs that teach a spe­ cific trade or skill. Contact the appropriate labor union or State apprenticeship council for more information. Private employment agencies and career consultants. These agen­ cies can be helpful, but they are in business to make money. Most operate on a commission basis, with the fee dependent upon a per­ centage of the salary paid to a successful applicant. You or the hiring company will pay the fee. Find out the exact cost and who is responsible for paying associated fees before using the service. Although employment agencies can help you save time and con­ tact employers who otherwise might be difficult to locate, the costs may outweigh the benefits if you are responsible for the fee. Con­ tacting employers directly often will generate the same type of leads that a private employment agency will provide. Consider any guar­ antees that the agency offers when determining if the service is worth the cost. Community agencies. Many nonprofit organizations, including re­ ligious institutions and vocational rehabilitation agencies, offer coun­ seling, career development, and job placement services, generally targeted to a particular group, such as women, youths, minorities, ex-offenders, or older workers.  Applying for a job Resumes and application forms. Resumes and application forms are two ways to provide employers with written evidence of your qualifications and skills. Generally, the same information appears on both the resume and the application form, but the way in which it is presented differs. Some employers prefer a resume and others require an application form. The accompanying box presents the basic information you should include in your resume. There are many ways of organizing a resume. Depending on the job, you should choose the format that best highlights your skills, training, and experience. It may be helpful to look in a variety of books and publications at your local library or bookstore for differ­ ent examples. What Usually Goes Into a Resume • Name, address, e-mail address, and telephone number. • Employment objective. State the type of work or specific job you are seeking. • Education, including school name and address, dates of attendance, curriculum, and highest grade completed or degree awarded. Consider including any courses or areas of focus that might be relevant to the position. • Experience, paid and volunteer. For each job, include the job title, name and location of employer, and dates of employment. Briefly describe your job duties. • Special skills, computer skills, proficiency in foreign languages, achievements, and membership in organizations. • Keep it short; only one page for less experienced applicants. • Avoid long paragraphs; use bullets to highlight key skills and accomplishments. • Have a friend review your resume for any spelling or grammatical errors. • Print it on high quality paper.  16 Occupational Outlook Handbook When you fill out an application form, make sure you fill it out completely and follow all instructions. Do not omit any requested in­ formation and make sure that the information you provide is correct. Cover letters. A cover letter is sent with a resume or application form, as a way of introducing yourself to prospective employers. It should capture the employer’s attention, follow a business letter format, and usually should include the following information: • The name and address of the specific person to whom the letter is addressed. • Your main qualifications for the position. • Request for an interview. • Your home and work telephone numbers. Interviewing. An interview gives you the opportunity to showcase your qualifications to an employer, so it pays to be well prepared. The information in the accompanying box provides some helpful hints. Job interview tips Preparation: Learn about the organization. Have a specific job or jobs in mind. Review your qualifications for the job. Prepare answers to broad questions about yourself. Review your resume. Practice an interview with a friend or relative. Arrive before the scheduled time of your interview. Personal appearance: Be well groomed. Dress appropriately. Do not chew gum or smoke. The interview: Relax and answer each question concisely. Respond promptly. Use good manners. Learn the name of your interviewer and shake hands as you meet. Use proper English—avoid slang. Be cooperative and enthusiastic. Ask questions about the position and the organization. Thank the interviewer when you leave and, as a followup, in writing. Test (if employer gives one): Listen closely to instructions. Read each question carefully. Write legibly and clearly. Budget your time wisely and don’t dwell on one question. Information to bring to an interview: Social Security card. Government-issued identification (driver’s license). Resume. Although not all employers require applicants to bring a resume, you should be able to furnish the interviewer information about your education, training, and previous employment. References. Employers typically require three references. Get permission before using anyone as a reference. Make sure that they will give you a good reference. Try to avoid using relatives as references.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Evaluating a job offer Once you receive a job offer, you are faced with a difficult decision and must evaluate the offer carefully. Fortunately, most organiza­ tions will not expect you to accept or reject an offer immediately. There are many issues to consider when assessing a job offer. Will the organization be a good place to work? Will the job be interesting? Are there opportunities for advancement? Is the sal­ ary fair? Does the employer offer good benefits? If you have not already figured out exactly what you want, the following discus­ sion may help you to develop a set of criteria for judging job offers, whether you are starting a career, reentering the labor force after a long absence, or planning a career change. The organization. Background information on an organization can help you to decide whether it is a good place for you to work. Fac­ tors to consider include the organization’s business or activity, fi­ nancial condition, age, size, and location. You generally can get background information on an organiza­ tion, particularly a large organization, on its Internet site or by tele­ phoning its public relations office. A public company’s annual re­ port to the stockholders tells about its corporate philosophy, history, products or services, goals, and financial status. Most government agencies can furnish reports that describe their programs and mis­ sions. Press releases, company newsletters or magazines, and re­ cruitment brochures also can be useful. Ask the organization for any other items that might interest a prospective employee. If pos­ sible, speak to current or former employees of the organization. Background information on the organization may be available at your public or school library. If you cannot get an annual report, check the library for reference directories that may provide basic facts about the company, such as earnings, products and services, and number of employees. Some directories widely available in libraries include: •  Dun & Bradstreet’s Million Dollar Directory  •  Standard and Poor’s Register of Corporations  •  Moody’s Industrial Manual  •  Thomas Register of American Manufacturers  •  Wards Business Directory  Stories about an organization in magazines and newspapers can tell a great deal about its successes, failures, and plans for the fu­ ture. You can identify articles on a company by looking under its name in periodical or computerized indexes in libraries. However, it probably will not be useful to look back more than 2 or 3 years. The library also may have government publications that present projections of growth for the industry in which the organization is classified. Long-term projections of employment and output for detailed industries, covering the entire U.S. economy, are devel­ oped by the Bureau of Labor Statistics and revised every 2 years— see the February 2004 Monthly Labor Review for the most recent projections, covering the 2002-12 period, on the Internet at: http://www.bls.gov/opub/mlr/mlrhome.htm. Trade magazines also may include articles on the trends for specific industries. Career centers at colleges and universities often have informa­ tion on employers that is not available in libraries. Ask a careercenter representative how to find out about a particular organization. Does the organization’s business or activity match your own interests and beliefs? It is easier to apply yourself to the work if you are enthusiastic about what the organization does.  Finding and Evaluating a Job Offer 17 How will the size of the organization affect you? Large firms generally offer a greater variety of training programs and career paths, more managerial levels for advancement, and bet­ ter employee benefits than do small firms. Large employers also may have more advanced technologies. However, many jobs in large firms tend to be highly specialized. Jobs in small firms may offer broader authority and responsibil­ ity, a closer working relationship with top management, and a chance to clearly see your contribution to the success of the organization. Should you work for a relatively new organization or one that is well established? New businesses have a high failure rate, but for many people, the excitement of helping to create a company and the potential for sharing in its success more than offset the risk of job loss. How­ ever, it may be just as exciting and rewarding to work for a young firm that already has a foothold on success. Does it make a difference if the company is private or public? An individual or a family may control a privately owned company and key jobs may be reserved for relatives and friends. A board of directors responsible to the stockholders controls a publicly owned company and key jobs usually are open to anyone. Is the organization in an industry with favorable long-term prospects? The most successful firms tend to be in industries that are growing rapidly. Nature of the job. Even if everything else about the job is attrac­ tive, you will be unhappy if you dislike the day-to-day work. De­ termining in advance whether you will like the work may be diffi­ cult. However, the more you find out about the job before accepting or rejecting the offer, the more likely you are to make the right choice. Actually working in the industry and, if possible, for the company would provide considerable insight. You can gain work experience through part-time, temporary, or summer jobs, or through internship or work-study programs while in school, all of which can lead to permanent job offers. Where is the job located? If the job is in another section of the country, you need to consider the cost of living, the availability of housing and transportation, and the quality of educational and recreational facilities in that sec­ tion of the country. Even if the job location is in your area, you should consider the time and expense of commuting. Does the work match your interests and make good use of your skills? The duties and responsibilities of the job should be explained in enough detail to answer this question. How important is the job in this company? An explanation of where you fit in the organization and how you are supposed to contribute to its overall objectives should give you an idea of the job’s importance. Are you comfortable with the hours? Most jobs involve regular hours—for example, 40 hours a week, during the day, Monday through Friday. Other jobs require night, weekend, or holiday work. In addition, some jobs routinely require overtime to meet deadlines or sales or production goals, or to better serve customers. Consider the effect that the work hours will have on your personal life.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  How long do most people who enter this job stay with the company? High turnover can mean dissatisfaction with the nature of the work or something else about the job. Opportunities offered by employers. A good job offers you oppor­ tunities to learn new skills, increase your earnings, and rise to posi­ tions of greater authority, responsibility, and prestige. A lack of opportunities can dampen interest in the work and result in frustra­ tion and boredom. The company should have a training plan for you. What valu­ able new skills does the company plan to teach you? The employer should give you some idea of promotion possi­ bilities within the organization. What is the next step on the career ladder? If you have to wait for a job to become vacant before you can be promoted, how long does this usually take? When opportu­ nities for advancement do arise, will you compete with applicants from outside the company? Can you apply for jobs for which you qualify elsewhere within the organization, or is mobility within the firm limited? Salaries and benefits. Wait for the employer to introduce these sub­ jects. Some companies will not talk about pay until they have de­ cided to hire you. In order to know if their offer is reasonable, you need a rough estimate of what the job should pay. You may have to go to several sources for this information. Try to find family, friends, or acquaintances who recently were hired in similar jobs. Ask your teachers and the staff in placement offices about starting pay for graduates with your qualifications. Help-wanted ads in newspa­ pers sometimes give salary ranges for similar positions. Check the library or your school’s career center for salary surveys such as those conducted by the National Association of Colleges and Em­ ployers or various professional associations. If you are considering the salary and benefits for a job in another geographic area, make allowances for differences in the cost of liv­ ing, which may be significantly higher in a large metropolitan area than in a smaller city, town, or rural area. You also should learn the organization’s policy regarding over­ time. Depending on the job, you may or may not be exempt from laws requiring the employer to compensate you for overtime. Find out how many hours you will be expected to work each week and whether you receive overtime pay or compensatory time off for working more than the specified number of hours in a week. Also take into account that the starting salary is just that—the start. Your salary should be reviewed on a regular basis; many or­ ganizations do it every year. How much can you expect to earn after 1, 2, or 3 or more years? An employer cannot be specific about the amount of pay if it includes commissions and bonuses. Benefits also can add a lot to your base pay, but they vary widely. Find out exactly what the benefit package includes and how much of the cost you must bear. National, State, and metropolitan area data from the Bureau’s National Compensation Survey are available from: >- Bureau of Labor Statistics, Office of Compensation Levels and Trends, 2 Massachusetts Ave. NE., Room 4175, Washington, DC 20212-0001. Telephone: (202) 691-6199. Internet: http://www.bls.gov/ncs.  Data on earnings by detailed occupation from the Occupational Employment Statistics (OES) Survey are available from: >- Bureau of Labor Statistics, Office of Occupational Statistics and Em­ ployment Projections, 2 Massachusetts Ave. NE., Room 2135, Wash­ ington, DC 20212-0001. Telephone: (202) 691-6569. Internet: http://www.bls.gov/oes.  Occupational Information Included in the Handbook The Occupational Outlook Handbook is best used as a reference; it is not meant to be read from cover to cover. Instead, start by look­ ing at the table of contents, in which related occupations are grouped in clusters, or look in the alphabetical index in the back of the Hand­ book for specific occupations that interest you. For any occupation that sounds interesting, use the Handbook to leant about the type of work that is performed in the occupation, the working conditions, the education and training requirements, the possibilities for ad­ vancement, earnings in the occupation, the job outlook, and related occupations. Each occupational statement, or description, in the Handbook follows a standard format, making it easier for you to compare occupations. Two previous sections—“Tomorrow’s Jobs” and “Sources of Career Information”—highlight the forces that are likely to deter­ mine employment opportunities in industries and occupations through the year 2012 and indicate where to obtain additional in­ formation. The current section is an overview of how the occupa­ tional statements are developed and organized. It highlights infor­ mation presented in each section of a Handbook statement and the source of the information, gives examples of specific occupations in some cases, and offers some hints on how to interpret the infor­ mation provided. Unless otherwise noted, the source of employment and earn­ ings data presented in the Handbook is the Bureau of Labor Statistics. Nearly all Handbook statements cite employment and earnings data from the Occupational Employment Statistics (OES) survey. Some statements include data from outside sources. OES data may be used to compare earnings among occupations; how­ ever, outside data may not be used in this manner, because charac­ teristics of these data vary widely.  About those numbers at the beginning of each statement The numbers in parentheses that appear just below the title of every detailed occupational statement are from the Occupational Information Network (0*NET)—a system used by State em­ ployment service offices to classify applicants and job openings, and by some career information centers and libraries to file oc­ cupational information. Occupational Information Network Coverage, a section be­ ginning on page 665, cross-references 0*NET codes to occupa­ tions covered in the Handbook. 0*NET codes are based on the 2000 Standard Occupational Classification (SOC) system. Significant Points This section highlights key occupational characteristics discussed in the statement. Nature of the Work This section discusses what workers do on the job, what tools and equipment they use, and how closely they are supervised. Indi­ vidual job duties may vary by industry or employer. For instance, workers in larger firms tend to be more specialized, whereas those in smaller firms often have a wider variety of duties. Most occupa­ tions have several levels of skills and responsibilities through which Digitized 18 for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  workers may progress. Beginners may start as trainees performing routine tasks under close supervision. Experienced workers usu­ ally undertake more difficult tasks and are expected to perform with less supervision. Some statements mention common alternative job titles or occu­ pational specialties. For example, the statement on accountants and auditors discusses a few specialties, such as public accountants, management accountants, and internal auditors. Some statements— such as that on advertising, marketing, promotions, public relations, and sales managers—discuss titles or specialties that are detailed OES survey occupations. For these occupations, such as sales man­ agers or marketing managers, separate employment projections are developed and their 0*NET codes appear at the beginning of the statement. Information in this section may be updated for several reasons. One is the emergence of occupational specialties. For instance, Webmasters—who are responsible for the technical aspects of op­ erating a Web site—constitute a specialty within computer systems analysts, database administrators, and computer scientists. Infor­ mation also may be updated due to changing technology that af­ fects the way in which a job is performed. For example, the Internet allows purchasers to acquire supplies with a click of the mouse, saving time and money. Furthermore, job duties may be affected by modifications to business practices, such as organizational re­ structuring or changes in response to government regulations. An example is paralegals and legal assistants, who are increasingly be­ ing utilized by law firms in order to lower costs and increase the efficiency and quality of legal services. Many sources are consulted in researching changes to the nature of the work section or any other section of a Handbook statement. Usual sources include articles in newspapers, magazines, and pro­ fessional journals. Useful information also appears on the Web sites of professional associations, unions, and trade groups. Information found on the Internet or in periodicals is verified through inter­ views with individuals employed in the occupation, professional associations, unions, and others with occupational knowledge, such as university professors and counselors in career assistance centers.  Working Conditions This section identifies the typical hours worked, the workplace en­ vironment, physical activities and susceptibility to injury, special equipment, and the extent of travel required. In many occupations, people work regular business hours—40 hours a week, Monday through Friday—but many do not. For example, waiters and wait­ resses often work evenings and weekends. The work setting can range from a hospital, to a mall, to an off­ shore oil rig. Truck drivers might be susceptible to injury, while paramedics have high job-related stress. Semiconductor proces­ sors may wear protective clothing or equipment, some construction laborers do physically demanding work, and top executives may travel frequently. Information on various worker characteristics, such as the aver­ age number of hours worked per week, is obtained from the Current Population Survey (CPS)—a survey of households conducted by the U.S. Census Bureau for BLS.  Occupational Information Included in the Handbook 19 Employment This section reports the number of jobs that the occupation pro­ vided in 2002, the key industries in which those jobs were found, and the number or proportion of self-employed workers in the oc­ cupation, if significant. Self-employed workers accounted for about 8 percent of the workforce in 2002; however, they were concen­ trated in a small number of occupations, such as farmers and ranch­ ers, childcare workers, lawyers, health practitioners, and the con­ struction trades. BLS develops the National Employment Matrix, which presents current and projected employment for 284 detailed industries and 725 detailed occupations over the 2002-12 period. Data in the matrix come primarily from the OES survey, which reports employment of wage and salary workers for each occupation in almost all indus­ tries. The CPS survey provides information on the total number of self-employed and unpaid family workers in each occupation. The CPS also provides employment data on agriculture and private households. The Office of Personnel Management (OPM) furnishes employment data on Federal Government workers. Because total employment in each occupation combines data from several different sources, employment numbers cited in the Hand­ book often differ from employment data provided by the OES, CPS, and other employment surveys. This may be a source of confusion for some readers. When significant, the geographic distribution of jobs and the proportion of part-time workers (those working less than 35 hours a week) are mentioned, reflecting CPS data. On the basis of OES survey data, some Handbook statements, such as those on textile, apparel, and furnishings occupations, list States that employ sub­ stantial numbers of workers in the occupation. Training, Other Qualifications, and Advancement After knowing what a job is all about, it is important to understand how to train for it. This section describes the most significant sources of education and training, including the education or training pre­ ferred by employers, the typical length of training, and the possi­ bilities for advancement. Job skills sometimes are acquired through high school, informal on-the-job training, formal training (includ­ ing apprenticeships), the U.S. Armed Forces, home study, hobbies, or previous work experience. For example, sales experience is par­ ticularly important for many sales jobs. Many professional jobs, on the other hand, require formal postsecondary education— postsecondary vocational or technical training, or college, postgradu­ ate, or professional education. In addition to training requirements, the Handbook mentions desirable skills, aptitudes, and personal characteristics. For some entry-level jobs, personal characteristics are more important than formal training. Employers generally seek people who read, write, and speak well; compute accurately; think logically; learn quickly; get along with others; and demonstrate dependability. Some occupations require certification or licensing to enter the field, to advance in the occupation, or to practice independently. Certification or licensing generally involves completing courses and passing examinations. Many occupations increasingly are requir­ ing workers to participate in continuing education or training in relevant skills, either to keep up with the changes in their job or to improve their advancement opportunities. Revisions to the training section may focus on changes in edu­ cational, certification, or licensing requirements, such as an increase in the number of hours of required training or in the number of States requiring a license. Information also is updated if new skills are needed to complete the job, such as those arising from the adop­ tion of new technology.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Information in this section comes from personal interviews with individuals employed in the occupation or from Web sites, pub­ lished training materials, and interviews with the organizations that grant the degree, certification, or license. Some occupations have numerous professional designations granted by different organiza­ tions. Generally, the most widely recognized organizations are listed in the Handbook. Some statements list the number of training programs. For ex­ ample, the statement on pharmacists indicates the number of col­ leges of pharmacy accredited by the American Council on Pharma­ ceutical Education. The minimum requirements for Federal Government employment cited in some statements are based on stan­ dards set by the U.S. Office of Personnel Management. Job Outlook In planning for the future, it is important to consider potential job opportunities. This section describes the factors that will result in employment growth or decline. Projecting occupational employ­ ment is the final step in the employment projections process. (A more detailed description of the projections process is discussed in the Handbook section entitled “Assumptions and Methods Used in Preparing Employment Projections.”) The job outlook section re­ flects the occupational projections in the National Employment Matrix. Each occupation is assigned a descriptive phrase on the basis of its projected percent change in employment over the 2002­ 12 period. (All of the phrases are listed at the end of this section.) A number of factors are examined in developing employment projections and updating the job outlook section. One factor is job growth or decline in industries that employ a significant percentage of workers in the occupation. If workers are concentrated in a rap­ idly growing industry, their employment will likely also grow quickly. For example, the growing need for business expertise is fueling demand for consulting services. Hence, management, sci­ entific, and technical consulting services is projected to be among the fastest growing industries through 2012. Projected rapid growth in this industry helps to spur faster than average growth in employ­ ment of management analysts. Demographic changes, which affect what services are required, can influence occupational growth or decline. For example, an ag­ ing population demands more healthcare workers, from registered nurses to pharmacists. Technological change is another key factor. New technology can either create new job opportunities or eliminate jobs by making workers obsolete. The Internet has increased the demand for work­ ers in the computer and information technology fields, such as com­ puter support specialists and systems administrators. However, the Internet also has adversely affected travel agents, because many people now book tickets, hotels, and rental cars online. Another factor affecting job growth or decline is changes in busi­ ness practices, such as the outsourcing of work or the restructuring of businesses. In the past few years, insurance carriers have been outsourcing sales and claims adjuster jobs to large, 24-hour call centers in order to reduce costs. Corporate restructuring also has made many organizations “flatter,” resulting in fewer middle man­ agement positions. The substitution of one product or service for another can affect employment projections. For example, consumption of plastic prod­ ucts has grown as they have been substituted for metal goods in many consumer and manufactured products in recent years. The process is likely to continue and should result in stronger demand for machine operators in plastics than in metal. Competition from foreign trade usually has a negative impact on employment. Often, foreign manufacturers can produce goods  20 Occupational Outlook Handbook U.S. manufacturers cannot compete. Increased international com­ petition is a major reason for the decline in employment among textile, apparel, and furnishings workers. In some cases, the Handbook mentions that an occupation is likely to provide numerous job openings or, in others, that an occu­ pation likely will afford relatively few openings. This information reflects the projected change in employment, as well as replace­ ment needs. Large occupations that have high turnover, such as food and beverage serving occupations, generally provide the most job openings—reflecting the need to replace workers who transfer to other occupations or who stop working. Some Handbook statements discuss the relationship between the number ofjobseekers and the number of job openings. (The phrases used to describe that relationship appear at the end of this section.) In some occupations, there is a rough balance between jobseekers and job openings, resulting in good opportunities. In other occupa­ tions, employers may report difficulty finding qualified applicants, resulting in excellent job opportunities. Still other occupations are characterized by a surplus of applicants, leading to keen competi­ tion for jobs. On the one hand, limited training facilities, salary regulations, or undesirable aspects of the work—as in the case of private household workers—can result in an insufficient number of entrants to fill all job openings. On the other hand, glamorous or potentially high-paying occupations, such as actors or musicians, generally have surpluses of jobseekers. Variation in job opportuni­ ties by industry, educational attainment, size of firm, or geographic location also may be discussed. Even in crowded fields, job open­ ings do exist. Good students or highly qualified individuals should not be deterred from undertaking training for, or seeking entry into, those occupations. Earnings This section discusses typical earnings and how workers are com­ pensated—by means of annual salaries, hourly wages, commissions, piece rates, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geo­ graphic area. Almost every statement in the Handbook contains 2002 OES-survey earnings data for wage and salary workers. In­ formation on earnings in the major industries in which the occupa­ tion is employed, also supplied by the OES survey, may be given as well. In addition to presenting earnings data from the OES survey, some statements contain additional earnings data from non-BLS sources. Starting and average salaries of Federal workers are based on 2003 data from the U.S. Office of Personnel Management. The National Association of Colleges and Employers supplies informa­ tion on average salary offers in 2003 for students graduating with a bachelor’s, master’s, or Ph.D. degree in certain fields. A few state­ ments contain additional earnings information from other sources, such as unions, professional associations, and private companies. These data sources are cited in the text. Benefits account for a significant portion of total compensation costs to employers. Benefits such as paid vacation, health insur­ ance, and sick leave may not be mentioned, because they are so widespread. Although not as common as traditional benefits, flex­ ible hours and profit-sharing plans may be offered to attract and   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Key phrases in the Handbook This box explains how to interpret the key phrases used to de­ scribe projected changes in employment. It also explains the terms used to describe the relationship between the number of job openings and the number of jobseekers. The description of this relationship in a particular occupation reflects the knowl­ edge and judgment of economists in the BLS Office of Occupa­ tional Statistics and Employment Projections. Changing employment between 2002 and 2012  If the statement reads:  Employment is projected to:  Grow much faster than average Grow faster than average Grow about as fast as average Grow more slowly than average Little or no growth Decline  increase 36 percent or more increase 21 to 35 percent increase 10 to 20 percent increase 3 to 9 percent increase 0 to 2 percent decrease 1 percent or more  Opportunities and competition for jobs If the statement reads: Very good to excellent opportunities Good or favorable opportunities May face, or can expect, keen competition  Job openings compared with jobseekers may be: More numerous In rough balance Fewer  retain highly qualified workers. Less common benefits also include childcare, tuition for dependents, housing assistance, summers off, and free or discounted merchandise or services. For certain occu­ pations, the percentage of workers affiliated with a union is listed. These data come from the CPS survey. Related Occupations Occupations involving similar duties, skills, interests, education, and training are listed. Sources of Additional Information No single publication can describe all aspects of an occupation. Thus, the Handbook lists the mailing addresses of associations, govern­ ment agencies, unions, and other organizations that can provide occupational information. In some cases, tollfree telephone num­ bers and Internet addresses also are listed. Free or relatively inex­ pensive publications offering more information may be mentioned; some of these publications also may be available in libraries, in school career centers, in guidance offices, or on the Internet. Most of the organizations listed in this section were sources of informa­ tion on the nature of the work, training, and job outlook discussed in the Handbook. For additional sources of information, also read the earlier chap­ ter, “Sources of Career Information.”  Management and Business and Financial Operations Occupations Management Occupations Administrative Services Managers (0**NET 11-3011.00)  Significant Points •  Administrative services managers work in private industry and government and have a wide range of responsibilities, experience, earnings, and education.  •  Applicants face keen competition due to the substantial supply of competent, experienced workers seeking managerial jobs.  Nature of the Work Administrative services managers perform a broad range of duties in virtually every sector of the economy. They coordinate and di­ rect support services to organizations as diverse as insurance com­ panies, computer manufacturers, and government offices. These workers manage the many services that allow organizations to op­ erate efficiently, such as secretarial and reception, administration, payroll, conference planning and travel, information and data pro­ cessing, mail, materials scheduling and distribution, printing and reproduction, records management, telecommunications manage­ ment, security, parking, and personal property procurement, sup­ ply, and disposal. Specific duties for these managers vary by degree of responsi­ bility and authority. First-line administrative services managers di­ rectly supervise a staff that performs various support services. Mid­ level managers, on the other hand, develop departmental plans, set goals and deadlines, implement procedures to improve productivity and customer service, and define the responsibilities of supervisorylevel managers. Some mid-level administrative services managers oversee first-line supervisors from various departments, including the clerical staff. Mid-level managers also may be involved in the hiring and dismissal of employees, but they generally have no role in the formulation of personnel policy. Some of these managers advance to upper level positions, such as vice president of adminis­ trative services, which are discussed in the Handbook statement on top executives. In small organizations, a single administrative services manager may oversee all support services. In larger ones, however, first-line administrative services managers often report to mid-level manag­ ers who, in turn, report to owners or top-level managers. As the size of the firm increases, administrative services managers are more likely to specialize in specific support activities. For example, some administrative services managers work primarily as office manag­ ers, contract administrators, or unclaimed property officers. In many cases, the duties of these administrative services managers are similar to those of other managers and supervisors, some of which are discussed in other Handbook statements.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Because of the range of administrative services required by or­ ganizations, the nature of these managerial jobs also varies signifi­ cantly. Administrative services managers who work as contract ad­ ministrators, for instance, oversee the preparation, analysis, negotiation, and review of contracts related to the purchase or sale of equipment, materials, supplies, products, or services. In addi­ tion, some administrative services managers acquire, distribute, and store supplies, while others dispose of surplus property or oversee the disposal of unclaimed property. Administrative services managers who work as facility manag­ ers plan, design, and manage buildings and grounds in addition to people. They are responsible for coordinating the physical work­ place with the people and work of an organization. This task re­ quires integrating the principles of business administration, archi­ tecture, and behavioral and engineering science. Although the specific tasks assigned to facility managers vary substantially de­ pending on the organization, the duties fall into several categories, relating to operations and maintenance, real estate, project planning and management, communication, finance, quality assessment, fa­ cility function, technology integration, and management of human and environmental factors. Tasks within these broad categories may include space and workplace planning, budgeting, purchase and sale of real estate, lease management, renovations, or architectural plan­ ning and design. Facility managers may suggest and oversee reno­ vation projects for a variety of reasons, ranging from improving  Administrative services managers coordinate and direct support services that allow organizations to operate efficiently.  21  22 Occupational Outlook Handbook efficiency to ensuring that facilities meet government regulations and environmental, health, and security standards. Additionally, facility managers continually monitor the facility to ensure that it remains safe, secure, and well-maintained. Often, the facility man­ ager is responsible for directing staff, including maintenance, grounds, and custodial workers. Working Conditions Administrative services managers generally work in comfortable offices. Managers involved in contract administration and personal property procurement, use, and disposal may travel between their home office, branch offices, vendors’ offices, and property sales sites. Also, facility managers who are responsible for the design of workspaces may spend time at construction sites and may travel between different facilities while monitoring the work of mainte­ nance, grounds, and custodial staffs. However, new technology has increased the number of managers who telecommute from home or other offices, and teleconferencing has reduced the need for travel. Most administrative services managers work a standard 40-hour week. However, uncompensated overtime frequently is required to resolve problems and meet deadlines. Facility managers often are “on call” to address a variety of problems that can arise in a facility during nonwork hours. Employment Administrative services managers held about 321,000jobs in 2002. About 9 out of 10 worked in service-providing industries, includ­ ing Federal, State, and local government, health services, financial services, professional, scientific, and technical services, and educa­ tion. Most of the remaining workers worked in manufacturing in­ dustries. Training, Other Qualifications, and Advancement Educational requirements for these managers vary widely, depend­ ing on the size and complexity of the organization. In small organi­ zations, experience may be the only requirement needed to enter a position as office manager. When an opening in administrative ser­ vices management occurs, the office manager may be promoted to the position based on past performance. In large organizations, how­ ever, administrative services managers normally are hired from out­ side and each position has formal education and experience require­ ments. Some administrative services managers have advanced degrees. Specific requirements vary by job responsibility. For first-line administrative services managers of secretarial, mailroom, and re­ lated support activities, many employers prefer an associate degree in business or management, although a high school diploma may suffice when combined with appropriate experience. For managers of audiovisual, graphics, and other technical activities, postsecondary technical school training is preferred. Managers of highly complex services, such as contract administration, generally need at least a bachelor’s degree in business, human resources, or finance. Re­ gardless of major, the curriculum should include courses in office technology, accounting, business mathematics, computer applica­ tions, human resources, and business law. Most facility managers have an undergraduate or graduate degree in engineering, architec­ ture, construction management, business administration, or facility management. Many have a background in real estate, construction, or interior design, in addition to managerial experience. Whatever the manager’s educational background, it must be ac­ companied by related work experience reflecting demonstrated abil­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ity. For this reason, many administrative services managers have advanced through the ranks of their organization, acquiring work experience in various administrative positions before assuming firstline supervisory duties. All managers who oversee departmental supervisors should be familiar with office procedures and equip­ ment. Managers of personal property acquisition and disposal need experience in purchasing and sales, and knowledge of a variety of supplies, machinery, and equipment. Managers concerned with sup­ ply, inventory, and distribution should be experienced in receiving, warehousing, packaging, shipping, transportation, and related op­ erations. Contract administrators may have worked as contract spe­ cialists, cost analysts, or procurement specialists. Managers of un­ claimed property often have experience in insurance claims analysis and records management. Persons interested in becoming administrative services manag­ ers should have good communication skills and be able to establish effective working relationships with many different people, rang­ ing from managers, supervisors, and professionals, to clerks and blue-collar workers. They should be analytical, detail-oriented, flex­ ible, and decisive. They must also be able to coordinate several activities at once, quickly analyze and resolve specific problems, and cope with deadlines. Most administrative services managers in small organizations advance by moving to other management positions or to a larger organization. Advancement is easier in large firms that employ several levels of administrative services managers. Attainment of the Certified Administrative Manager (CAM) designation offered by the Institute of Certified Professional Managers, through work experience and successful completion of examinations, can increase a manager’s advancement potential. In addition, a master’s degree in business administration or related field enhances a first-level manager’s opportunities to advance to a mid-level management position, such as director of administrative services, and eventu­ ally to a top-level management position, such as executive vice president for administrative services. Those with enough money and experience can establish their own management consulting firm.Advancement of facility managers is based on the practices and size of individual companies. Some facility managers transfer from other departments within the organization or work their way up from technical positions. Others advance through a progres­ sion of facility management positions that offer additional respon­ sibilities. Completion of the competency-based professional cer­ tification program offered by the International Facility Management Association can give prospective candidates an advantage. In or­ der to qualify for this Certified Facility Manager (CFM) designa­ tion, applicants must meet certain educational and experience re­ quirements. Job Outlook Employment of administrative services managers is projected to grow about as fast as the average for all occupations through 2012. Like persons seeking other managerial positions, applicants face keen competition because there are more competent, experienced workers seeking jobs than there are positions available. However, demand should be strong for facility managers because businesses increasingly are realizing the importance of maintaining, securing, and efficiently operating their facilities, which are very large in­ vestments for most organizations. Administrative services manag­ ers employed in management services and management consulting also should be in demand, as public and private organizations con­  Management and Business and Financial Operations Occupations 23 tinue to streamline and, in some cases, contract out administrative services functions in an effort to cut costs. At the same time, continuing corporate restructuring and increas­ ing utilization of office technology should result in a flatter organi­ zational structure with fewer levels of management, reducing the need for some middle management positions. This should adversely affect administrative services managers who oversee first-line man­ gers. Because many administrative services managers have a wide range of responsibilities, however, the effects of these changes on employment should be less severe than for other middle managers who specialize in only certain functions. In addition to new admin­ istrative services management jobs created over the 2002-12 pro­ jection period, many job openings will stem from the need to re­ place workers who transfer to other jobs, retire, or stop working for other reasons. Earnings Earnings of administrative services managers vary greatly depend­ ing on the employer, the specialty, and the geographic area. In gen­ eral, however, median annual earnings of administrative services managers in 2002 were $52,500. The middle 50 percent earned between $36,190 and $74,590. The lowest 10 percent earned less than $26,120, and the highest 10 percent earned more than $99,870. Median annual earnings in the industries employing the largest num­ bers of these managers in 2002 are shown below: Management of companies and enterprises............................. $66,700 Elementary and secondary schools............................................. 59,220 Colleges, universities, and professional schools........................ 56,960 State government................................................................... 55,710 Local government..................................................................... 51,570 In the Federal Government, contract specialists in nonsupervisory, supervisory, and managerial positions earned an average of $66,309 a year in 2003. Corresponding averages were $63,509 for facilities operations, $62,552 for industrial property managers, $58,880 for property disposal specialists, $62,751 for administrative officers, and $52,824 for support services administrators. Related Occupations Administrative services managers direct and coordinate support ser­ vices and oversee the purchase, use, and disposal of personal prop­ erty. Occupations with similar functions include office and admin­ istrative support worker supervisors and managers; cost estimators; property, real estate, and community association managers; purchas­ ing managers, buyers, and purchasing agents; and top executives. Sources of Additional Information For information about careers and education and degree programs in facility management, as well as the Certified Facility Manager designation, contact: >- International Facility Management Association, 1 East Greenway Plaza, Suite 1100, Houston, TX 77046-0194. Internet: http://www.ifma.org General information regarding facility management and a list of facility management education and degree programs may be ob­ tained from: ► Association of Higher Education Facilities Officers, 1643 Prince St., Alexandria, VA 22314-2818. Internet: http://www.appa.org For information about the Certified Manager or Certified Ad­ ministrative Manager designations, contact: >- Institute of Certified Professional Managers, James Madison University, College of Business, Harrisonburg, VA 22807. Internet: http://cob.jmu.edu/icpm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Advertising, Marketing, Promotions, Public Relations, and Sales Managers (0*NET 11-2011.00, 11-2021.00, 11-2022.00, 11-2031.00) Significant Points •  Keen competition for jobs is expected.  •  College graduates with related experience, a high level of creativity, and strong communication skills should have the best job opportunities.  •  High earnings, substantial travel, and long hours, including evenings and weekends, are common.  Nature of the Work The objective of any firm is to market and sell its products or ser­ vices profitably. In small firms, the owner or chief executive officer might assume all advertising, promotions, marketing, sales, and public relations responsibilities. In large firms, which may offer numerous products and services nationally or even worldwide, an executive vice president directs overall advertising, promotions, marketing, sales, and public relations policies. (Executive vice presi­ dents are included in the Handbook statement on top executives.) Advertising, marketing, promotions, public relations, and sales managers coordinate the market research, marketing strategy, sales, advertising, promotion, pricing, product development, and public relations activities. Managers oversee advertising and promotion staffs, which usu­ ally are small, except in the largest firms. In a small firm, managers may serve as a liaison between the firm and the advertising or pro­ motion agency to which many advertising or promotional functions are contracted out. In larger firms, advertising managers oversee in-house account, creative, and media services departments. The account executive manages the account services department, assesses the need for advertising, and, in advertising agencies, maintains the accounts of clients. The creative services department develops the subject matter and presentation of advertising. The creative direc­ tor oversees the copy chief, art director, and associated staff. The media director oversees planning groups that select the communi­ cation media—for example, radio, television, newspapers, maga­ zines, Internet, or outdoor signs—to disseminate the advertising. Promotions managers supervise staffs of promotion specialists. They direct promotion programs that combine advertising with pur­ chase incentives to increase sales. In an effort to establish closer contact with purchasers—dealers, distributors, or consumers—pro­ motion programs may involve direct mail, telemarketing, television or radio advertising, catalogs, exhibits, inserts in newspapers, Internet advertisements or Web sites, instore displays or product endorse­ ments, and special events. Purchase incentives may include dis­ counts, samples, gifts, rebates, coupons, sweepstakes, and contests. Marketing managers develop the firm’s detailed marketing strat­ egy. With the help of subordinates, including product development managers and market research managers, they determine the de­ mand for products and services offered by the firm and its competi­ tors. In addition, they identify potential markets—for example, business firms, wholesalers, retailers, government, or the general public. Marketing managers develop pricing strategy with an eye towards maximizing the firm’s share of the market and its profits while ensuring that the firm’s customers are satisfied. In collabora­ tion with sales, product development, and other managers, they monitor trends that indicate the need for new products and services and oversee product development. Marketing managers work with  24 Occupational Outlook Handbook advertising and promotion managers to promote the firm’s products and services and to attract potential users. Public relations managers supervise public relations specialists. (See the Handbook statement on public relations specialists.) These managers direct publicity programs to a targeted public. They of­ ten specialize in a specific area, such as crisis management—or in a specific industry, such as healthcare. They use every available com­ munication medium in their effort to maintain the support of the specific group upon whom their organization’s success depends, such as consumers, stockholders, or the general public. For ex­ ample, public relations managers may clarify or justify the firm’s point of view on health or environmental issues to community or special interest groups. Public relations managers also evaluate advertising and promo­ tion programs for compatibility with public relations efforts and serve as the eyes and ears of top management. They observe social, economic, and political trends that might ultimately affect the firm and make recommendations to enhance the firm’s image based on those trends. Public relations managers may confer with labor relations man­ agers to produce internal company communications—such as news­ letters about employee-management relations—and with financial managers to produce company reports. They assist company ex­ ecutives in drafting speeches, arranging interviews, and maintain­ ing other forms of public contact; oversee company archives; and respond to information requests. In addition, some handle special events such as sponsorship of races, parties introducing new prod­ ucts, or other activities the firm supports in order to gain public attention through the press without advertising directly. Sales managers direct the firm’s sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. (See the Handbook statement on sales repre­ sentatives, wholesale and manufacturing.) Managers advise the sales representatives on ways to improve their sales performance. In large, multiproduct firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and monitor the preferences of customers. Such information is vital to develop products and maximize profits.  m Ei  .  Advertising, marketing, promotions, public relations, and sales managers coordinate market research, marketing strategy, sales, advertising, promotion, pricing, product development, and public relations activities.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Working Conditions Advertising, marketing, promotions, public relations, and sales managers work in offices close to those of top managers. Long hours, including evenings and weekends are common. About 44 percent of advertising, marketing, and public relations managers worked more than 40 hours a week in 2002. Working under pres­ sure is unavoidable when schedules change and problems arise, but deadlines and goals must still be met. Substantial travel may be involved. For example, attendance at meetings sponsored by associations or industries often is manda­ tory. Sales managers travel to national, regional, and local offices and to various dealers and distributors. Advertising and promotions managers may travel to meet with clients or representatives of com­ munications media. At times, public relations managers travel to meet with special interest groups or government officials. Job trans­ fers between headquarters and regional offices are common, par­ ticularly among sales managers. Employment Advertising, marketing, promotions, public relations, and sales managers held about 700,000 jobs in 2002. The following tabula­ tion shows the distribution of jobs by occupational specialty: Sales managers...................................................................................... Marketing managers............................................................................. Advertising and promotions managers............................................ Public relations managers..................................................................  343,000 203,000 85,000 69,000  These managers were found in virtually every industry. Sales managers held almost half of the jobs; most were employed in manu­ facturing, wholesale and retail trade, and finance and insurance industries. Marketing managers held more one-fourth of the jobs; manufacturing, and professional, scientific, and technical services industries employed more than one-third of marketing managers. More than one-third of advertising and promotions managers worked in professional, scientific, and technical services, and in­ formation industries, including advertising and related services, and publishing industries. Most public relations managers were employed in services industries, such as other services (except gov­ ernment), professional, scientific, and technical services, finance and insurance, health care and social assistance services, and edu­ cational services. Training, Advancement, and Other Qualifications A wide range of educational backgrounds is suitable for entry into advertising, marketing, promotions, public relations, and sales mana­ gerial jobs, but many employers prefer those with experience in related occupations plus a broad liberal arts background. A bachelor’s degree in sociology, psychology, literature, journalism, or philosophy, among other subjects, is acceptable. However, re­ quirements vary, depending upon the particular job. For marketing, sales, and promotions management positions, some employers prefer a bachelor’s or master’s degree in business administration with an emphasis on marketing. Courses in business law, economics, accounting, finance, mathematics, and statistics are advantageous. In highly technical industries, such as computer and electronics manufacturing, a bachelor’s degree in engineering or science, combined with a master’s degree in business administra­ tion, is preferred. For advertising management positions, some employers prefer a bachelor’s degree in advertising or journalism. A course of study should include marketing, consumer behavior, market research, sales, communication methods and technology, and visual arts—for ex­ ample, art history and photography.  Management and Business and Financial Operations Occupations 25 For public relations management positions, some employers pre­ fer a bachelor’s or master’s degree in public relations or journalism. The applicant’s curriculum should include courses in advertising, business administration, public affairs, public speaking, political science, and creative and technical writing. For all these specialties, courses in management and completion of an internship while in school are highly recommended. Famil­ iarity with word processing and database applications also is im­ portant for many positions. Computer skills are vital because mar­ keting, product promotion, and advertising on the Internet are increasingly common. The ability to communicate in a foreign language may open up employment opportunities in many rapidly growing areas around the country, especially in cities with large Spanish-speaking populations. Most advertising, marketing, promotions, public relations, and sales management positions are filled by promoting experienced staff or related professional personnel. For example, many manag­ ers are former sales representatives, purchasing agents, buyers, or product, advertising, promotions, or public relations specialists. In small firms, where the number of positions is limited, advancement to a management position usually comes slowly. In large firms, promotion may occur more quickly. Although experience, ability, and leadership are emphasized for promotion, advancement can be accelerated by participation in management training programs conducted by many large firms. Many firms also provide their employees with continuing educa­ tion opportunities, either in-house or at local colleges and univer­ sities, and encourage employee participation in seminars and con­ ferences, often provided by professional societies. In collaboration with colleges and universities, numerous marketing and related as­ sociations sponsor national or local management training programs. Course subjects include brand and product management, interna­ tional marketing, sales management evaluation, telemarketing and direct sales, interactive marketing, promotion, marketing commu­ nication, market research, organizational communication, and data processing systems procedures and management. Many firms pay all or part of the cost for those who successfully complete courses. Some associations offer certification programs for these manag­ ers. Certification—a sign of competence and achievement in this field—is particularly important in a competitive job market. While relatively few advertising, marketing, promotions, public relations, and sales managers currently are certified, the number of managers who seek certification is expected to grow. For example, Sales and Marketing Executives International offers a management certifica­ tion program based on education and job performance. The Public Relations Society of America offers a certification program for public relations practitioners based on years of experience and performance on an examination. Persons interested in becoming advertising, marketing, promo­ tions, public relations, and sales managers should be mature, cre­ ative, highly motivated, resistant to stress, flexible, and decisive. The ability to communicate persuasively, both orally and in writ­ ing, with other managers, staff, and the public is vital. These man­ agers also need tact, good judgment, and exceptional ability to es­ tablish and maintain effective personal relationships with supervisory and professional staff members and client firms. Because of the importance and high visibility of their jobs, ad­ vertising, marketing, promotions, public relations, and sales man­ agers often are prime candidates for advancement to the highest ranks. Well-trained, experienced, successful managers may be pro­ moted to higher positions in their own, or other, firms. Some be­ come top executives. Managers with extensive experience and suf­ ficient capital may open their own businesses.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Job Outlook Advertising, marketing, promotions, public relations, and sales manager jobs are highly coveted and will be sought by other man­ agers or highly experienced professionals, resulting in keen compe­ tition. College graduates with related experience, a high level of creativity, and strong communication skills should have the best job opportunities. Employers will particularly seek those who have the computer skills to conduct advertising, marketing, promotions, public relations, and sales activities on the Internet. Employment of advertising, marketing, promotions, public rela­ tions, and sales managers is expected to increase faster than the av­ erage for all occupations through 2012, spurred by intense domes­ tic and global competition in products and services offered to consumers. However, projected employment growth varies by in­ dustry. For example, employment is projected to grow much faster than average in scientific, professional, and related services such as computer systems design and related services and advertising and related services, as businesses increasingly hire contractors for these services instead of additional full-time staff. On the other hand, little or no change in employment is expected in many manufactur­ ing industries. Earnings Median annual earnings in 2002 were $57,130 for advertising and promotions managers, $78,250 for marketing managers, $75,040 for sales managers, and $60,640 for public relations managers. Earnings ranged from less than $30,310 for the lowest 10 percent of advertising and promotions managers, to more than $145,600 for the highest 10 percent of marketing and sales managers. Median annual earnings advertising and promotions managers in 2002 in the advertising and related services industry were $72,630. Median annual earnings in the industries employing the largest numbers of marketing managers in 2002 were as follows: Computer systems design and related services....................... Management of companies and enterprises............................. Depository credit intermediation............................................  $96,440 90,750 65,960  Median annual earnings in the industries employing the largest numbers of sales managers in 2002 were as follows: Computer systems design and relatedservices..................... Automobile dealers.............................................................. Management of companies and enterprises........................... Insurance carriers................................................................ Traveler accommodation......................................................  $102,520 91,350 87,800 80,540 44,560  Median annual earnings of public relations managers in 2002 in colleges, universities, and professional schools were $55,510. According to a National Association of Colleges and Employers survey, starting salaries for marketing majors graduating in 2003 averaged $34,038; starting salaries for advertising majors averaged $29,495. Salary levels vary substantially, depending upon the level of managerial responsibility, length of service, education, firm size, location, and industry. For example, manufacturing firms usually pay these managers higher salaries than do nonmanufacturing firms. For sales managers, the size of their sales territory is another impor­ tant determinant of salary. Many managers earn bonuses equal to 10 percent or more of their salaries. Related Occupations Advertising, marketing, promotions, public relations, and sales managers direct the sale of products and services offered by their  26 Occupational Outlook Handbook firms and the communication of information about their firms’ ac­ tivities. Other workers involved with advertising, marketing, pro­ motions, public relations, and sales include actors, producers, and directors; artists and related workers; demonstrators, product pro­ moters, and models; market and survey researchers; public rela­ tions specialists; sales representatives, wholesale and manufactur­ ing; and writers and editors. Sources of Additional Information For information about careers in advertising management, contact: >- American Association of Advertising Agencies, 405 Lexington Ave., New York, NY 10174-1801. Internet: http://www.aaaa.org  Information about careers and professional certification in pub­ lic relations management is available from: >- Public Relations Society of America, 33 Irving Place, New York, NY 10003-2376. Internet: http://www.prsa.org  Computer and Information Systems Managers______________ _______ (0*NET 11-3021.00)  Significant Points •  Projected job growth stems primarily from rapid growth among computer-related occupations.  •  Employers prefer managers with formal education and advanced technical knowledge acquired through computer-related work experience.  •  Job opportunities should be best for applicants with a master’s degree in business administration or management information systems with technology as a core component.  Nature of the Work The need for organizations to incorporate existing and future tech­ nologies in order to remain competitive has become a more press­ ing issue over the last several yearsg. As electronic commerce be­ comes more common, how and when companies use technology are critical issues. Computer and information systems managers play a vital role in the technological direction of their organiza­ tions. They do everything from constructing the business plan to overseeing network security to directing Internet operations. Computer and information systems managers plan, coordinate, and direct research and design the computer-related activities of firms. They help determine both technical and business goals in consultation with top management, and make detailed plans for the accomplishment of these goals. For example, working with their staff, they may develop the overall concepts of a new product or service, or may identify how an organization’s computing capabili­ ties can effectively aid project management. Computer and information systems managers direct the work of systems analysts, computer programmers, support specialists, and other computer-related workers. These managers plan and coordi­ nate activities such as installation and upgrading of hardware and software, programming and systems design, development of com­ puter networks, and implementation of Internet and intranet sites. They are increasingly involved with the upkeep and maintenance and security of networks. They analyze the computer and informa­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tion needs of their organization, from an operational and strategic perspective, and determine immediate and long-range personnel and equipment requirements. They assign and review the work of their subordinates, and stay abreast of the latest technology in order to assure the organization does not lag behind competitors. The duties of computer and information systems managers vary with their specific titles. Chief technology officers, for example, evaluate the newest and most innovative technologies and deter­ mine how these can help their organization. The chief technology officer, who often reports to the organization’s chief information officer, manages and plans technical standards and tends to the daily information technology issues of the firm. (Chief information of­ ficers are covered in a separate Handbook statement on top execu­ tives.) Because of the rapid pace of technological change, chief tech­ nology officers must constantly be on the lookout for developments that could benefit their organization. They are responsible for dem­ onstrating to a company how information technology can be used as a competitive tool that not only cuts costs, but also increases revenue and maintains or increases competitive advantage. Management information systems (MIS) directors manage in­ formation systems and computing resources for their entire organi­ zation. They may also work under the chief information officer and plan and direct the work of subordinate information technology employees. These managers oversee a variety of user services such as an organization’s help desk, which employees can call with ques­ tions or problems. MIS directors also may make hardware and soft­ ware upgrade recommendations based on their experience with an organization’s technology. Helping to assure the availability, con­ tinuity, and security of data and information technology services are key responsibilities for these workers. Project managers develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation, working with internal and external clients, vendors, consultants, and com­ puter specialists. These managers are increasingly involved in projects that upgrade the information security of an organization. LAN/WAN (Local Area Network/Wide Area Network) manag­ ers provide a variety of services, from design to administration, of an organization’s local area network, which connects staff within an organization. These managers direct the network, and its related computing environment, including hardware, systems software, applications software, and all other computer-related configurations. Computer and information system managers need strong com­ munication skills. They coordinate the activities of their unit with those of other units or organizations. They confer with top execu­ tives; financial, production, marketing, and other managers; and contractors and equipment and materials suppliers. Working Conditions Computer and information systems managers spend most of their time in an office. Most work at least 40 hours a week and may have to work evenings and weekends to meet deadlines or solve unex­ pected problems. Some computer and information systems manag­ ers may experience considerable pressure in meeting technical goals within short timeframes or tight budgets. As networks continue to expand and more work is done remotely, computer and information system managers have to communicate with and oversee offsite employees using modems, laptops, e-mail, and the Internet. Like other workers who sit continuously in front of a keyboard, computer and information system managers are susceptible to eye­ strain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.  Management and Business and Financial Operations Occupations 27  . -i as  Computer and information systems managers supervise information systems and computing resources for their entire organization. Employment Computer and information systems managers held about 284,000 jobs in 2002. About 2 in 5 works in service-providing industries, mainly in computer systems design and related services. This in­ dustry provides services related to the commercial use of comput­ ers on a contract basis, including custom computer programming services; computer systems integration design services; computer facilities management services, including computer systems or dataprocessing facilities support services for clients; and other com­ puter-related services, such as disaster recovery services and soft­ ware installation. Other large employers include insurance and financial services firms, government agencies, and manufacturers. Training, Other Qualifications, and Advancement Strong technical knowledge is essential for computer and informa­ tion systems managers, who must understand and guide the work of their subordinates, yet also explain the work in nontechnical terms to senior management and potential customers. Therefore, these management positions usually require work experience and formal education similar to that of other computer occupations. Many computer and information systems managers have experi­ ence as systems analysts; others may have experience as computer support specialists, programmers, or other information technology professionals. A bachelor’s degree usually is required for manage­ ment positions, although employers often prefer a graduate degree, especially a master’s degree in business administration (MBA) with  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  technology as a core component. This degree differs from a tradi­ tional MBA in that there is a heavy emphasis on information tech­ nology in addition to the standard business curriculum. This is be­ coming important because more computer and information systems managers are making important technology decisions as well as business decisions for their organizations. Some universities spe­ cialize in offering degrees in management information systems, which blend technical core subjects with business, accounting, and communications courses. A few computer and information sys­ tems managers may have only an associate degree if they have suf­ ficient experience and were able to learn additional skills on the job. To aid their professional advancement, though, many manag­ ers with an associate degree eventually earn a bachelor’s or master’s degree while working. Computer and information systems managers need a broad range of skills. In addition to technical skills, employers also seek man­ agers with strong business skills. Employers want managers who have experience with the specific software or technology to be used on the job, as well as a background in either consulting or business management. The expansion of electronic commerce has elevated the importance of business insight, because many managers are called upon to make important business decisions. Managers need a keen understanding of people, management processes, and customers’ needs. Computer and information systems managers must possess strong interpersonal, communication, and leadership skills because they are required to interact not only with their staff, but also with other people inside and outside their organization. They also must pos­ sess team skills to work on group projects and other collaborative efforts. Computer and information systems managers increasingly interact with persons outside their organization, reflecting their emerging role as vital parts of their firm’s executive team. Computer and information systems managers may advance to progressively higher leadership positions in their field. Some may become managers in non-technical areas such as marketing, human resources, or sales. In high technology firms, managers in non­ technical areas often must possess the same specialized knowledge as do managers in technical areas. Job Outlook Employment of computer and information systems managers is ex­ pected to grow much faster than the average for all occupations through the year 2012. Technological advancements will boost the employment of computer-related workers; as a result, the demand for managers to direct these workers also will increase. In addition, job openings will result from the need to replace managers who retire or move into other occupations. Opportunities for obtaining a management position will be best for workers possessing an MBA with technology as a core component, or a management informa­ tion systems degree, advanced technical knowledge, and strong com­ munication and administrative skills. Despite the recent downturn in the economy, especially in tech­ nology-related sectors, the outlook for computer and information systems managers remains strong. In order to remain competitive, firms will continue to install sophisticated computer networks and set up more complex Internet and intranet sites. Keeping a com­ puter network running smoothly is essential to almost every organi­ zation. Firms will be more willing to hire managers who can ac­ complish that. The security of computer networks will continue to increase in importance as more business is conducted over the Internet. The security of the Nation’s entire electronic infrastructure has come under renewed focus in light of recent threats. Organizations need  28 Occupational Outlook Handbook to understand how their systems are vulnerable and how to protect their infrastructure and Internet sites from hackers, viruses, and other acts of cyber-terrorism. The emergence of “cyber-security” as a key issue facing most organizations should lead to strong growth for computer managers. Firms will increasingly hire cyber-security experts to fill key leadership roles in their information technology departments, because the integrity of their computing environment is of the utmost concern. As a result, there will be a high demand for managers proficient in computer security issues. Due to the explosive growth of electronic commerce and the capacity of the Internet to create new relationships with customers, the role of computer and information systems managers will con­ tinue to evolve in the future. Persons in these jobs will continue to become more vital to their companies. The expansion of the wire­ less Internet will spur the need for computer and information sys­ tems managers with both business savvy and technical proficiency. Opportunities for those who wish to become computer and in­ formation systems managers should be closely related to the growth of the occupations they supervise and the industries in which they are found. (See the statements on computer programmers; com­ puter software engineers; computer support specialists and sys­ tems administrators; and computer systems analysts, database ad­ ministrators, and computer scientists elsewhere in the Handbook.) Earnings Earnings for computer and information systems managers vary by specialty and level of responsibility. Median annual earnings of these managers in 2002 were $85,240. The middle 50 percent earned between $64,150 and $109,950. The lowest 10 percent earned less than $47,440, and the highest 10 percent earned more than $ 140,440. Median annual earnings in the industries employing the largest num­ bers of computer and information systems managers in 2002 were: Computer systems design and related services............................. Management of companies and enterprises.................................... Insurance carriers................................................................................. Depository credit intermediation...................................................... Colleges, universities, and professional schools...........................  $94,240 91,710 89,920 75,160 68,100  According to Robert Half International, average starting sala­ ries in 2003 for high-level information technology managers ranged from $82,750 to $151,500. According to a 2003 survey by the Na­ tional Association of Colleges and Employers, starting salary of­ fers for those with an MBA, a technical undergraduate degree, and 1 year or less of experience averaged $54,643; for those with a master’s degree in management information systems/business data processing, the starting salary averaged $43,750. In addition, computer and information systems managers, espe­ cially those at higher levels, often receive more employment-re­ lated benefits—such as expense accounts, stock option plans, and bonuses—than do non-managerial workers in their organizations. Related Occupations The work of computer and information systems managers is closely related to that of computer programmers; computer software engi­ neers; computer systems analysts, database administrators, and com­ puter scientists; and computer support specialists and systems ad­ ministrators. Computer and information systems managers also have some high-level responsibilities similar to those of top executives. Sources of Additional Information For information about a career as a computer and information sys­ tems manager, contact the sources of additional information for the various computer occupations discussed elsewhere in the Hand­ book.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Construction Managers (0*NET 11-9021.00)  Significant Points •  Construction managers must be available—often 24 hours a day—to deal with delays, bad weather, or emergencies at the jobsite.  •  Employers prefer individuals who combine construction industry work experience with a bachelor’s degree in construction science, construction management, or civil engineering.  •  Good employment opportunities are expected; however, employment can be sensitive to the short­ term nature of many construction projects and to cyclical fluctuations in construction activity.  Nature of the Work Construction managers plan and coordinate construction projects. They may have job titles such as constructor, construction superin­ tendent, general superintendent, project engineer, project manager, general construction manager, or executive construction manager. Construction managers may be owners or salaried employees of a construction management or contracting firm, or may work under contract or as a salaried employee of the owner, developer, contrac­ tor, or management firm overseeing the construction project. They may plan and direct a whole project or just a part of a project. The Handbook uses the term “construction manager” to describe sala­ ried or self-employed managers who oversee construction supervi­ sors and workers. In contrast with the Handbook definition, “construction man­ ager” is defined more narrowly within the construction industry to denote a management firm, or an individual employed by such a firm, involved in managerial oversight of a construction project. Under this definition, construction managers usually represent the owner or developer along with other workers throughout the project. Although they usually play no direct role in the actual construction of a structure, they typically schedule and coordinate all design and construction processes, including the selection, hiring, and over­ sight of specialty trade contractors. Managers who work in the construction industry, such as gen­ eral managers, project engineers, and others, increasingly are called constructors. Constructors manage, coordinate, and supervise the construction process from the conceptual development stage through final construction on a timely and economical basis. Given designs for buildings, roads, bridges, or other projects, constructors oversee the organization, scheduling, and implementation of the project to execute those designs. They are responsible for coordinating and managing people, materials, and equipment; budgets, schedules, and contracts; and safety of employees and the general public. On large projects, several different management systems may be used. In the general contractor system, the owner hires a general contractor to manage all activities. Working for the general con­ tractor, construction managers oversee the completion of all con­ struction in accordance with the engineer’s and architect’s draw­ ings and specifications and prevailing building codes. They arrange for trade contractors to perform specialized craftwork or other speci­ fied construction work. On small projects, such as remodeling a home, a self-employed construction manager or skilled trades worker who directs and oversees employees often is referred to as the con­  Management and Business and Financial Operations Occupations 29 struction “contractor.” In the construction management system, the owner hires a firm to oversee all aspects of the project. The man­ agement firm will then hire a general contractor to run the construc­ tion process and oversee construction of the structure. The major difference from the general contractor system is that the hired man­ agement firm, rather than the owner, works with the individual con­ struction manager. In the design-build system, the owners, archi­ tects, general contractors, and major subcontractors are brought together to cooperatively plan and design the project. The designbuild group may be from an individual firm or a conglomeration of separate entities. The construction manager participates during the design process and may be in charge of the construction project once the design is agreed upon. Large construction projects, such as an office building or indus­ trial complex, are too complicated for one person to manage. These projects are divided into many segments: Site preparation, includ­ ing land clearing and earth moving; sewage systems; landscaping and road construction; building construction, including excavation and laying of foundations, as well as erection of structural frame­ work, floors, walls, and roofs; and building systems, including fireprotection, electrical, plumbing, air-conditioning, and heating. Con­ struction managers may be in charge of one or more of these activities. Construction managers often work with engineers, ar­ chitects, and others who are involved in the construction process. Construction managers evaluate and determine appropriate con­ struction methods and the most cost-effective plan and schedule. They divide all required construction site activities into logical steps, budgeting the time required to meet established deadlines. This may require sophisticated estimating and scheduling techniques and use of computers with specialized software. (See the statement on cost estimators elsewhere in the Handbook.) They oversee the se­ lection of trade contractors to complete specific pieces of the project—which could include everything ffom structural metalwork­ ing and plumbing to painting and carpet installation. Construction managers determine the labor requirements and, in some cases, su­ pervise or monitor the hiring and dismissal of workers. They over­ see the performance of all trade contractors and are responsible for ensuring that all work is completed on schedule. Construction managers direct and monitor the progress of con­ struction activities, sometimes through construction supervisors or other construction managers. They oversee the delivery and use of materials, tools, and equipment; and the quality of construction, worker productivity, and safety. They are responsible for obtaining all necessary permits and licenses and, depending upon the contrac­ tual arrangements, direct or monitor compliance with building and safety codes and other regulations. They may have several subordi­ nates, such as assistant managers or superintendents, field engineers, or crew supervisors, reporting to them. Construction managers regularly review engineering and archi­ tectural drawings and specifications to monitor progress and ensure compliance with plans and schedules. They track and control con­ struction costs against the project budget to avoid cost overruns. Based upon direct observation and reports by subordinate supervi­ sors, managers may prepare daily reports of progress and require­ ments for labor, material, machinery, and equipment at the construc­ tion site. They meet regularly with owners, other constructors, trade contractors, vendors, architects, engineers, and others to monitor and coordinate all phases of the construction project. Working Conditions Construction managers work out of a main office from which the overall construction project is monitored, or out of a field office at  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  TBrnp  Construction managers are responsible for coordinating and managing people, materials, and equipment; budgets, schedules, and contracts; and the safety of employees and the general public.  the construction site. Advances in telecommunications and Internet access allow construction managers to be onsite without being out of contact of the office. Management decisions regarding daily con­ struction activities generally are made at the jobsite. Managers usu­ ally travel when the construction site is in another State or when they are responsible for activities at two or more sites. Manage­ ment of overseas construction projects usually entails temporary residence in another country. Construction managers may be “on call”—often 24 hours a day— to deal with delays, bad weather, or emergencies at the site. Most work more than a standard 40-hour week because construction may proceed around-the-clock. They may have to work this type of schedule for days, even weeks, to meet special project deadlines, especially if there are delays. Although the work usually is not considered inherently danger­ ous, construction managers must be careful while performing on­ site services. Employment Construction managers held 389,000 jobs in 2002. Almost half were self-employed. Most of the rest were employed in the con­ struction industry, 15 percent by specialty trade contractors—for example, plumbing, heating and air-conditioning, and electrical con­ tractors—and 21 percent by general building contractors. Architec­ tural, engineering and related services firms, as well as local gov­ ernments, employed others. Training, Other Qualifications, and Advancement Persons interested in becoming a construction manager need a solid background in building science, business, and management, as well as related work experience within the construction industry. They need to understand contracts, plans, and specifications, and to be knowledgeable about construction methods, materials, and regula­ tions. Familiarity with computers and software programs for job costing, online collaboration, scheduling, and estimating also is important. Traditionally, persons advance to construction management po­ sitions after having substantial experience as construction craftworkers—carpenters, masons, plumbers, or electricians, for example—or after having worked as construction supervisors or as owners of independent specialty contracting firms overseeing  30 Occupational Outlook Handbook workers in one or more construction trades. However, employ­ ers—particularly large construction firms—increasingly prefer in­ dividuals who combine industry work experience with a bachelor’s degree in construction science, construction management, or civil engineering. Practical industry experience also is very important, whether it is acquired through internships, cooperative education programs, or work experience in the industry. Construction managers should be flexible and work effectively in a fast-paced environment. They should be decisive and work well under pressure, particularly when faced with unexpected oc­ currences or delays. The ability to coordinate several major activi­ ties at once, while analyzing and resolving specific problems, is essential, as is an understanding of engineering, architectural, and other construction drawings. Good oral and written communica­ tion skills also are important, as are leadership skills. Managers must be able to establish a good working relationship with many different people, including owners, other managers, designers, su­ pervisors, and craftworkers. Advancement opportunities for construction managers vary de­ pending upon an individual’s performance and the size and type of company for which they work. Within large firms, managers may eventually become top-level managers or executives. Highly expe­ rienced individuals may become independent consultants; some serve as expert witnesses in court or as arbitrators in disputes. Those with the required capital may establish their own construction man­ agement services, specialty contracting, or general contracting firm. Many colleges and universities offer 4-year degree programs in construction management, construction science, and construction engineering. These programs include courses in project control and development, site planning, design, construction methods, construc­ tion materials, value analysis, cost estimating, scheduling, contract administration, accounting, business and financial management, safety, building codes and standards, inspection procedures, engi­ neering and architectural sciences, mathematics, statistics, and in­ formation technology. Graduates from 4-year degree programs usu­ ally are hired as assistants to project managers, field engineers, schedulers, or cost estimators. An increasing number of graduates in related fields—engineering or architecture, for example—also enter construction management, often after acquiring substantial experience on construction projects or after completing graduate studies in construction management or building science. Several colleges and universities offer a master’s degree pro­ gram in construction management or construction science. Master’s degree recipients, especially those with work experience in con­ struction, typically become construction managers in very large construction or construction management companies. Often, indi­ viduals who hold a bachelor’s degree in an unrelated field seek a master’s degree in order to work in the construction industry. Some construction managers obtain a master’s degree in business ad­ ministration or finance to further their career prospects. Doctoral degree recipients usually become college professors or conduct research. Many individuals also attend training and educational programs sponsored by industry associations, often in collaboration with postsecondary institutions. A number of 2-year colleges through­ out the country offer construction management or construction tech­ nology programs. There is a growing movement towards certification of construc­ tion managers to ensure that a construction manager has a certain body of knowledge, abilities, and experience. Both the American Institute of Constructors (AIC) and the Construction Management Association of America (CMAA) have established voluntary certi­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  fication programs for construction managers. Requirements com­ bine written examinations with verification of education and pro­ fessional experience. AIC awards the Associate Constructor (AC) and Certified Professional Constructor (CPC) designations to can­ didates who meet its requirements and pass appropriate construc­ tion examinations. CMAA awards the Certified Construction Man­ ager (CCM) designation to practitioners who meet its requirements through work performed in a construction management firm and by passing a technical examination. Applicants for the CMAA certifi­ cation also must complete a self-study course that covers a broad range of topics central to construction management, including the professional role of a construction manager, legal issues, and allo­ cation of risk. Although certification is not required to work in the construction industry, voluntary certification can be valuable be­ cause it provides evidence of competence and experience. Job Outlook Good employment opportunities for construction managers are ex­ pected through 2012 because the number of job openings should be sufficient to accommodate the number of qualified managers seek­ ing to enter the occupation. Because the construction industry of­ ten is seen as having dirty, strenuous, and hazardous working con­ ditions, even for managers, many potential managers choose other types of careers. Employment of construction managers is projected to increase about as fast as the average for all occupations through 2012, as the level and complexity of construction activity continues to grow. Prospects in construction management, architectural and engineer­ ing services, and construction contracting firms should be best for persons who have a bachelor’s or higher degree in construction sci­ ence, construction management, or civil engineering, as well as prac­ tical experience working in construction. Employers prefer appli­ cants with previous construction work experience who can combine a strong background in building technology with proven supervi­ sory or managerial skills. In addition to those arising from job growth, many openings should result annually from the need to re­ place workers who transfer to other occupations or leave the labor force. The increasing complexity of construction projects should boost demand for management-level personnel within the construction industry, as sophisticated technology and the proliferation of laws setting standards for buildings and construction materials, worker safety, energy efficiency, and environmental protection have fur­ ther complicated the construction process. Advances in building materials and construction methods; the need to replace much of the Nation’s infrastructure; and the growing number of multipur­ pose buildings, electronically operated “smart” buildings, and en­ ergy-efficient structures will further add to the demand for more construction managers. However, employment of construction man­ agers can be sensitive to the short-term nature of many projects and to cyclical fluctuations in construction activity. Earnings Earnings of salaried construction managers and self-employed in­ dependent construction contractors vary depending upon the size and nature of the construction project, its geographic location, and economic conditions. In addition to typical benefits, many salaried construction managers receive benefits such as bonuses and use of company motor vehicles. Median annual earnings of construction managers in 2002 were $63,500. The middle 50 percent earned between $48,720 and $84,080. The lowest 10 percent earned less than $38,130, and the  Management and Business and Financial Operations Occupations 31 highest 10 percent earned more than $112,810. Median annual earn­ ings in the industries employing the largest numbers of construc­ tion managers in 2002 were: Nonresidential building construction............................................... Foundation, structure, and building exterior contractors........... Building finishing contractors.......................................................... Residential building construction.................................................... Other specialty trade contractors......................................................  $66,280 60,020 59,950 59,900 58,860  According to a 2003 salary survey by the National Association of Colleges and Employers, candidates with a bachelor’s degree in construction science/management received job offers averaging $42,229 a year. Related Occupations Construction managers participate in the conceptual development of a construction project and oversee its organization, scheduling, and implementation. Other workers who perform similar functions include architects, except landscape and naval; civil engineers; cost estimators; landscape architects; and engineering and natural sci­ ences managers. Sources of Information For information about constructor certification, contact: >• American Institute of Constructors, 466 94th Ave. North, St. Peters­ burg, FL 33702. Internet: http://www.constructorcertification.org or http://www.aicnet.org  For information about construction management and construc­ tion manager certification, contact: >■ Construction Management Association of America, 7918 Jones Branch Dr., Suite 540, McLean, VA 22102-3307. Internet: http://www.cmaanet.org  Information on accredited construction science and management educational programs and accreditation requirements is available from: >- American Council for Construction Education, 1300 Hudson Lane, Suite 3, Monroe, LA 71201. Internet: http://www.acce-hq.org  Education Administrators (0*NET 11-9031.00, 11-9032.00, 11-9033.00, 11-9039.99)  Significant Points •  Many jobs require a master’s or doctoral degree and experience in a related occupation, such as a teacher or admissions counselor.  •  Strong interpersonal and communication skills are essential because much of an administrator’s job involves working and collaborating with others.  •  Job outlook is expected to be excellent because a large proportion of education administrators are expected to retire over the next 10 years.  Nature of the Work Smooth operation of an educational institution requires competent administrators. Education administrators provide instructional lead­ ership as well as manage the day-to-day activities in schools, pre­ schools, daycare centers, and colleges and universities. They also direct the educational programs of businesses, correctional institu­ tions, museums, and job training and community service organiza­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tions. (College presidents and school superintendents are covered in the Handbook statement on general managers and top executives.) Education administrators set educational standards and goals and establish the policies and procedures to carry them out. They also supervise managers, support staff, teachers, counselors, librarians, coaches, and others. They develop academic programs; monitor students’ educational progress; train and motivate teachers and other staff; manage guidance and other student services; administer recordkeeping; prepare budgets; handle relations with parents, pro­ spective and current students, employers, and the community; and perform many other duties. In an organization such as a small daycare center, one administrator may handle all these functions. In universities or large school systems, responsibilities are divided among many administrators, each with a specific function. Those who manage elementary, middle, and secondary schools are called principals. They set the academic tone and hire, evalu­ ate, and help improve the skills of teachers and other staff. Princi­ pals confer with staff to advise, explain, or answer procedural ques­ tions. They visit classrooms, observe teaching methods, review instructional objectives, and examine learning materials. They ac­ tively work with teachers to develop and maintain high curriculum standards, develop mission statements, and set performance goals and objectives. Principals must use clear, objective guidelines for teacher appraisals, because pay often is based on performance rat­ ings. Principals also meet and interact with other administrators, stu­ dents, parents, and representatives of community organizations. Decisionmaking authority has increasingly shifted from school dis­ trict central offices to individual schools. Thus, parents, teachers, and other members of the community play an important role in set­ ting school policies and goals. Principals must pay attention to the concerns of these groups when making administrative decisions. Principals prepare budgets and reports on various subjects, in­ cluding finances and attendance, and oversee the requisition and allocation of supplies. As school budgets become tighter, many principals have become more involved in public relations and fundraising to secure financial support for their schools from local businesses and the community. Principals must take an active role to ensure that students meet national, State, and local academic standards. Many principals de­ velop school/business partnerships and school-to-work transition programs for students. Increasingly, principals must be sensitive to the needs of the rising number of non-English speaking and cultur­ ally diverse students. Growing enrollments, which are leading to overcrowding at many existing schools, also are a cause for con­ cern. When addressing problems of inadequate resources, adminis­ trators serve as advocates for the building of new schools or the repair of existing ones. During summer months, principals are re­ sponsible for planning for the upcoming year, overseeing summer school, participating in workshops for teachers and administrators, supervising building repairs and improvements, and working to be sure the school has adequate staff for the school year. Schools continue to be involved with students’ emotional wel­ fare as well as their academic achievement. As a result, principals face responsibilities outside the academic realm. For example, in response to the growing numbers of dual-income and single-parent families and teenage parents, schools have established before- and after-school childcare programs or family resource centers, which also may offer parenting classes and social service referrals. With the help of community organizations, some principals have estab­ lished programs to combat increases in crime, drug and alcohol abuse, and sexually transmitted diseases among students.  32 Occupational Outlook Handbook Assistant principals aid the principal in the overall administra­ tion of the school. Some assistant principals hold this position for several years to prepare for advancement to principal jobs; others are career assistant principals. They are primarily responsible for scheduling student classes, ordering textbooks and supplies, and coordinating transportation, custodial, cafeteria, and other support services. They usually handle student discipline and attendance problems, social and recreational programs, and health and safety matters. They also may counsel students on personal, educational, or vocational matters. With the advent of site-based management, assistant principals are playing a greater role in ensuring the aca­ demic success of students by helping to develop new curriculums, evaluating teachers, and dealing with school-community relations— responsibilities previously assumed solely by the principal. The number of assistant principals that a school employs may vary, de­ pending on the number of students. In preschools and childcare centers, education administrators are the director or supervisor of the school or center. Their job is simi­ lar to that of other school administrators in that they oversee daily activities and operation of the schools, hire and develop staff, and make sure that the school meets required regulations. Administrators in school district central offices oversee public schools under their jurisdiction. This group includes those who di­ rect subject-area programs such as English, music, vocational edu­ cation, special education, and mathematics. They supervise instruc­ tional coordinators and curriculum specialists, and work with them to evaluate curriculums and teaching techniques and improve them. (Instructional coordinators are covered elsewhere in the Handbook.) Administrators also may oversee career counseling programs and testing that measures students’ abilities and helps to place them in appropriate classes. Others may also direct programs such as school psychology, athletics, curriculum and instruction, and professional development. With site-based management, administrators have transferred primary responsibility for many of these programs to the principals, assistant principals, teachers, instructional coordina­ tors, and other staff in the schools. In colleges and universities, academic deans, deans offaculty, provosts, and university deans assist presidents, make faculty ap­ pointments, develop budgets, and establish academic policies and programs. They also direct and coordinate the activities of deans of individual colleges and chairpersons of academic departments. Fundraising also is becoming an essential part of their job. College or university department heads or chairpersons are in charge of departments that specialize in particular fields of study, such as English, biological science, or mathematics. In addition to teaching, they coordinate schedules of classes and teaching assign­ ments; propose budgets; recruit, interview, and hire applicants for teaching positions; evaluate faculty members; encourage faculty development; serve on committees; and perform other administra­ tive duties. In overseeing their departments, chairpersons must consider and balance the concerns of faculty, administrators, and students. Higher education administrators also direct and coordinate the provision of student services. Vice presidents of student affairs or student life, deans ofstudents, and directors ofstudent services may direct and coordinate admissions, foreign student services, health and counseling services, career services, financial aid, and housing and residential life, as well as social, recreational, and related pro­ grams. In small colleges, they may counsel students. In larger col­ leges and universities, separate administrators may handle each of these services. Registrars are custodians of students’ records. They register students, record grades, prepare student transcripts, evalu­ ate academic records, assess and collect tuition and fees, plan and  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  implement commencement, oversee the preparation of college cata­ logs and schedules of classes, and analyze enrollment and demo­ graphic statistics. Directors of admissions manage the process of recruiting, evaluating, and admitting students, and work closely with financial aid directors, who oversee scholarship, fellowship, and loan programs. Registrars and admissions officers at most institu­ tions need computer skills because they use electronic student in­ formation systems. For example, for those whose institutions present information—such as college catalogs and schedules—on the Internet, knowledge of online resources, imaging, and other com­ puter skills is important. Athletic directors plan and direct intramu­ ral and intercollegiate athletic activities, seeing to publicity for ath­ letic events, preparation of budgets, and supervision of coaches. Other increasingly important administrators direct fundraising, pub­ lic relations, distance learning, and technology. Working Conditions Education administrators hold leadership positions with significant responsibility. Most find working with students extremely reward­ ing, but as the responsibilities of administrators have increased in recent years, so has the stress. Coordinating and interacting with faculty, parents, students, community members, business leaders, and State and local policymakers can be fast-paced and stimulating, but also stressful and demanding. Principals and assistant princi­ pals, whose varied duties include discipline, may find working with difficult students challenging. The pressures associated with edu­ cation administrator jobs have multiplied in recent years, as work­ ers in these positions are increasingly being held accountable for ensuring that their schools meet recently imposed State and Federal guidelines for student performance and teacher qualifications, and as they must cope with the additional challenges presented by cur­ rent budget shortfalls,. Many education administrators work more than 40 hours a week, often including school activities at night and on weekends. Most administrators work 11 or 12 months out of the year. Some jobs include travel. Employment Education administrators held about 427,000jobs in 2002. About 2 in 10 worked for private education institutions, and 6 in 10 worked for State and local governments, mainly in schools, colleges and universities, and departments of education. Less than 5 percent were self-employed. The rest worked in child daycare centers, religious  ----. -  *  7, *  L ■  Strong interpersonal and communication skills are essential for education administrators.  Management and Business and Financial Operations Occupations 33 organizations, job training centers, and businesses and other orga­ nizations that provided training for their employees.  Training, Other Qualifications, and Advancement Most education administrators begin their careers in related occu­ pations, and prepare for a job in education administration by com­ pleting a master’s or doctoral degree. Because of the diversity of duties and levels of responsibility, their educational backgrounds and experience vary considerably. Principals, assistant principals, central office administrators, academic deans, and preschool direc­ tors usually have held teaching positions before moving into ad­ ministration. Some teachers move directly into principal positions; others first become assistant principals, or gain experience in other central office administrative jobs at either the school or district level in positions such as department head, curriculum specialist, or sub­ ject matter advisor. In some cases, administrators move up from related staff jobs such as recruiter, guidance counselor, librarian, residence hall director, or financial aid or admissions counselor. To be considered for education administrator positions, workers must first prove themselves in their current jobs. In evaluating can­ didates, supervisors look for leadership, determination, confidence, innovativeness, and motivation. The ability to make sound deci­ sions and to organize and coordinate work efficiently is essential. Because much of an administrator’s job involves interacting with others—such as students, parents, teachers, and the community—a person in such a position must have strong interpersonal skills and be an effective communicator and motivator. Knowledge of leader­ ship principles and practices, gained through work experience and formal education, is important. A familiarity with computer tech­ nology is a necessity for principals, who are required to gather in­ formation and coordinate technical resources for their students, teachers, and classrooms. In most public schools, principals, assistant principals, and school administrators in central offices need a master’s degree in education administration or educational supervision. Some principals and central office administrators have a doctorate or specialized degree in education administration. In private schools, which are not sub­ ject to State licensure requirements, some principals and assistant principals hold only a bachelor’s degree; however, the majority have a master’s or doctoral degree. Most States require principals to be licensed as school administrators. License requirements vary by State. National standards for school leaders, including principals and supervisors, have been developed by the Interstate School Lead­ ers Licensure Consortium. Many States use these national stan­ dards as guidelines to assess beginning principals for licensure. Increasingly, on-the-job training, often with a mentor, is required for new school leaders. Some States require administrators to take continuing education courses to keep their license, thus ensuring that administrators have the most up-to-date skills. The number and types of courses required to maintain licensure vary by State. Educational requirements for administrators of preschools and childcare centers vary depending on the setting of the program and the State of employment. Administrators who oversee school-based preschool programs are often required to have at least a bachelor’s degree. Child care directors are generally not required to have a degree; however, most States require a credential such as the Child Development Associate credential (CDA) sponsored by the Coun­ cil for Professional Recognition or other credential specifically de­ signed for administrators. The National Child Care Association, offers a National Administration Credential, which some recent col­ lege graduates voluntarily earn to better qualify for positions as childcare center directors.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Academic deans and chairpersons usually have a doctorate in their specialty. Most have held a professorship in their department before advancing. Admissions, student affairs, and financial aid directors and registrars sometimes start in related staff jobs with bachelor’s degrees—any field usually is acceptable—and obtain advanced degrees in college student affairs, counseling, or higher education administration. A Ph.D. or Ed.D. usually is necessary for top student affairs positions. Computer literacy and a background in accounting or statistics may be assets in admissions, records, and financial work. Advanced degrees in higher education administration, educational supervision, and college student affairs are offered in many col­ leges and universities. The National Council for Accreditation of Teacher Education and the Educational Leadership Constituent Council accredit these programs. Education administration degree programs include courses in school leadership, school law, school finance and budgeting, curriculum development and evaluation, re­ search design and data analysis, community relations, politics in education, and counseling. Educational supervision degree programs include courses in supervision of instruction and curriculum, hu­ man relations, curriculum development, research, and advanced teaching courses. Education administrators advance through promotion to more responsible administrative positions or by transferring to more re­ sponsible positions at larger schools or systems. They also may become superintendents of school systems or presidents of educa­ tional institutions. Job Outlook Employment of education administrators is projected to grow faster than the average for all occupations through 2012. As education and training take on greater importance in everyone’s lives, the need for people to administer education programs will grow. Job opportunities for many of these positions should also be excellent because a large proportion of education administrators are expected to retire over the next 10 years. A significant portion of growth will stem from growth in the private and for-profit segments of education. Many of these schools cater to working adults, many of whom might not ordinarily partici­ pate in postsecondary education. These schools allow students to earn a degree, receive job-specific training or update their skills, in a convenient manner, such as through part-time programs or dis­ tance learning. As the number of these schools continues to grow, more administrators will be needed to oversee them. Enrollments of school-age children will also have an impact on the demand for education administrators. The U.S. Department of Education projects enrollment of elementary and secondary school students to grow between 5 and 7 percent over the next decade. Preschool and childcare center administrators are expected to expe­ rience substantially more growth as enrollments in formal child care programs continues to expand as fewer private households care for young children. Additionally, if mandatory preschool becomes more widespread more preschool directors will be needed. The number of postsecondary school students is projected to grow more rapidly than other student populations, creating significant demand for ad­ ministrators at that level. In addition, enrollments are expected to increase the fastest in the West and South, where the population is growing, and to decline or remain stable in the Northeast and the Midwest School administrators also are in greater demand in rural and urban areas, where pay is generally lower than in the suburbs. Principals and assistant principals should have favorable job pros­ pects. A sharp increase in responsibilities in recent years has made the job more stressful, and has discouraged teachers from taking  34 Occupational Outlook Handbook positions in administration. Principals are now being held more accountable for the performance of students and teachers, while at the same time they are required to adhere to a growing number of government regulations. In addition, overcrowded classrooms, safety issues, budgetary concerns, and teacher shortages in some areas all are creating additional stress for administrators. The increase in pay is often not high enough to entice people into the field. Job prospects also are expected to be favorable for college and university administrators, particularly those seeking nonacademic positions. Colleges and universities may be subject to funding short­ falls during economic downturns, but increasing enrollments over the projection period will require that institutions replace the large numbers of administrators who retire, and even hire additional ad­ ministrators. While competition among faculty for prestigious po­ sitions as academic deans and department heads is likely to remain keen, fewer applicants are expected for nonacademic administra­ tive jobs, such as director of admissions or student affairs. Further­ more, many people are discouraged from seeking administrator jobs by the requirement that they have a master’s or doctoral degree in education administration—as well as by the opportunity to earn higher salaries in other occupations.  and pension packages. Many colleges and universities offer free tuition to employees and their families. Related Occupations Education administrators apply organizational and leadership skills to provide services to individuals. Workers in related occupations include administrative services managers; office and administrative support worker supervisors and managers; human resource, train­ ing, and labor relations managers and specialists; and archivists, curators, and museum technicians. Education administrators also work with students and have backgrounds similar to those of coun­ selors; librarians; instructional coordinators; teachers—preschool, kindergarten, elementary, middle, and secondary; and teachers— postsecondary. Sources of Additional Information For information on principals and other management staff in public schools, contact: >- Educational Research Service, 2000 Clarendon Boulevard, Arlington, VA 22201-2908. Internet: http://www.ers.org  For information on principals, contact: ► The National Association of Elementary School Principals, 1615 Duke St., Alexandria, VA 22314-3483. Internet: http://www.naesp.org  Earnings In 2002, elementary and secondary school administrators had me­ dian annual earnings of $71,490; postsecondary school administra­ tors had median annual earnings of $64,640, while preschool and childcare center administrators earned a median of $33,340 per year. Salaries of education administrators depend on several factors, in­ cluding the location and enrollment level in the school or school district. According to a survey of public schools, conducted by the Educational Research Service, average salaries for principals and assistant principals in the 2002-03 school year were as follows: Directors, managers, coordinators, and supervisors, finance and business....................................................................................... Principals: Elementary school............................................................................. Jr. high/middle school....................................................................... Senior high school............................................................................. Assistant principals: Elementary school................................................................................ Jr. high/middle school....................................................................... Senior high school.............................................................................  $81,451 75,291 80,708 86,452 $62,230 67,288 70,874  According to the College and University Professional Associa­ tion for Human Resources, median annual salaries for selected ad­ ministrators in higher education in 2001-02 were as follows: Academic deans: Business............................................................................................. Graduate programs.......................................................................... Education.......................................................................................... Arts and sciences............................................................................. Health-related professions............................................................ Nursing.............................................................................................. Continuing education..................................................................... Occupational or vocational education........................................ Other administrators: Dean of students.............................................................................. Director, admissions and registrar............................................... Director, student financial aid....................................................... Director, annual giving.................................................................. Director, student activities............................................................  $107,414 100,391 100,227 98,780 89,234 88,386 84,457 73,595 $70,012 61,519 57,036 49,121 41,050  Benefits for education administrators are generally very good. Many get 4 or 5 weeks vacation every year and have generous health  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  >- The National Association of Secondary School Principals, 1904 Asso­ ciation Drive, Reston, VA 20191-1537. Internet: http://www.nassp.org  For information on collegiate registrars and admissions officers, contact: >- American Association of Collegiate Registrars and Admissions Offic­ ers, One Dupont Circle NW., Suite 520, Washington, DC 20036-1171. Internet: http://www.aacrao.org  For information on professional development and graduate pro­ grams for college student affairs administrators, contact: ► NASPA, Student Affairs Administrators in Higher Education, 1875 Con­ necticut Ave. NW., Suite 418, Washington, DC 20009. Internet: http://www.naspa.org  Engineering and Natural Sciences Managers (0*NET 11-9041.00, 11-9121.00)  Significant Points •  Most engineering and natural sciences managers have previous experience as engineers, scientists, or mathematicians.  •  Projected employment growth for engineering and natural sciences managers should be closely related to those for the engineers and scientists they supervise and the industries in which they are found.  •  Opportunities will be best for workers with advanced technical knowledge and strong communication and business management skills.  Nature of the Work Engineering and natural sciences managers plan, coordinate, and direct research, design, and production activities. They may super­ vise engineers, scientists, and technicians, along with support per­ sonnel. These managers use advanced technical knowledge of en­ gineering and science to oversee a variety of activities. They  Management and Business and Financial Operations Occupations 35 determine scientific and technical goals within broad outlines pro­ vided by top executives, who are discussed elsewhere in the Hand­ book. These goals may include improving manufacturing processes, advancing scientific research, or developing new products. Man­ agers make detailed plans to accomplish these goals—for example, they may develop the overall concepts of a new product or identify technical problems preventing the completion of a project. To perform effectively, they also must possess knowledge of administrative procedures, such as budgeting, hiring, and supervi­ sion. These managers propose budgets for projects and programs and determine staff, training, and equipment needs. They hire and assign scientists, engineers, and support personnel to carry out spe­ cific parts of each project. They also supervise the work of these employees, review their output, and establish administrative pro­ cedures and policies—including environmental standards, for ex­ ample. In addition, these managers use communication skills extensively. They spend a great deal of time coordinating the activities of their unit with those of other units or organizations. They confer with higher levels of management; with financial, production, market­ ing, and other managers; and with contractors and equipment and materials suppliers. Engineering managers supervise people who design and develop machinery, products, systems, and processes; or direct and coordi­ nate production, operations, quality assurance, testing, or mainte­ nance in industrial plants. Many are plant engineers, who direct and coordinate the design, installation, operation, and maintenance of equipment and machinery in industrial plants. Others manage research and development teams that produce new products and pro­ cesses or improve existing ones. Natural sciences managers oversee the work of life and physical scientists, including agricultural scientists, chemists, biologists, ge­ ologists, medical scientists, and physicists. These managers direct research and development projects and coordinate activities such as testing, quality control, and production. They may work on basic research projects or on commercial activities. Science managers sometimes conduct their own research in addition to managing the work of others. Working Conditions Engineering and natural sciences managers spend most of their time in an office. Some managers, however, also may work in laborato­ ries, where they may be exposed to the same conditions as research scientists, or in industrial plants, where they may be exposed to the same conditions as production workers. Most managers work at least 40 hours a week and may work much longer on occasion to meet project deadlines. Some may experience considerable pres­ sure to meet technical or scientific goals on a short deadline or within a tight budget. Employment Engineering and natural sciences managers held about 257,000jobs in 2002. About 26 percent worked in professional, scientific, and technical services industries, primarily for firms providing archi­ tectural, engineering, and related services; computer systems de­ sign and related services; and scientific research and development services. Manufacturing industries employed 35 percent of engi­ neering and natural sciences managers. Manufacturing industries with the largest employment include those producing computer and electronic equipment, machinery, transportation equipment, includ­ ing aerospace products and parts, and chemicals, including phar­ maceuticals. Other large employers include government agencies and telecommunications and utilities companies.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  m  fr'te1  I fill  Engineering and natural sciences managers provide guidance to employees and oversee day-to-day operations of the organization.  Training, Other Qualifications, and Advancement Strong technical knowledge is essential for engineering and natural sciences managers, who must understand and guide the work of their subordinates and explain the work in nontechnical terms to senior management and potential customers. Therefore, these man­ agement positions usually require work experience and formal edu­ cation similar to those of engineers, scientists, or mathematicians. Most engineering managers begin their careers as engineers, af­ ter completing a bachelor’s degree in the field. To advance to higher level positions, engineers generally must assume management re­ sponsibility. To fill management positions, employers seek engi­ neers who possess administrative and communications skills in ad­ dition to technical knowledge in their specialty. Many engineers gain these skills by obtaining a master’s degree in engineering man­ agement or a master’s degree in business administration (MBA). Employers often pay for such training. In large firms, some courses required in these degree programs may be offered on site. Engi­ neers who prefer to manage in technical areas should get a master’s degree in engineering management, while those interested in non­ technical management should get an MBA. Many science managers begin their careers as scientists, such as chemists, biologists, geologists, or mathematicians. Most scientists or mathematicians engaged in basic research have a Ph.D.; some in applied research and other activities may have a bachelor’s or master’s degree. Science managers must be specialists in the work they supervise. In addition, employers prefer managers with good communication and administrative skills. Graduate programs allow scientists to augment their undergraduate training with instruction in other fields, such as management or computer technology. Given the rapid pace of scientific developments, science managers must continuously upgrade their knowledge. Engineering and natural sciences managers may advance to pro­ gressively higher leadership positions within their discipline. Some may become managers in nontechnical areas such as marketing, human resources, or sales. In high technology firms, managers in nontechnical areas often must possess the same specialized knowl­ edge as do managers in technical areas. For example, employers in an engineering firm may prefer to hire experienced engineers as sales workers because the complex services offered by the firm can be marketed only by someone with specialized engineering knowl­ edge. Such sales workers could eventually advance to jobs as sales managers.  36 Occupational Outlook Handbook Job Outlook Employment of engineering and natural sciences managers is ex­ pected to have average growth through the year 2012—in line with projected employment growth in engineering and most sciences. However, many additional jobs will result from the need to replace managers who retire or move into other occupations. Opportunities for obtaining a management position will be best for workers with advanced technical knowledge and strong communication skills. In addition, business management skills are important because engi­ neering and natural sciences managers are involved in their firm’s financial, production, and marketing activities. Projected employment growth for engineering and natural sci­ ences managers should be closely related to the growth of the occu­ pations they supervise and the industries in which they are found. For example, opportunities for managers should be better in rapidly growing areas of engineering—such as electrical, computer, and biomedical engineering—than in more slowly growing areas of en­ gineering or physical science, such as aerospace and petroleum en­ gineering. (See the statements on engineers and on life and physi­ cal scientists, elsewhere in the Handbook.) In addition, many employers are finding it more efficient to contract engineering and science management services to outside companies and consultants, creating good opportunities for managers in management services and management, scientific, and technical consulting firms. Earnings Earnings for engineering and natural sciences managers vary by specialty and level of responsibility. Median annual earnings of engineering managers were $90,930 in 2002. The middle 50 per­ cent earned between $72,480 and $114,050. The lowest 10 percent earned less than $57,840, and the highest 10 percent earned more than $141,380. Median annual earnings in the industries employ­ ing the largest numbers of engineering managers in 2002 were: Navigational, measuring, electromedical, and control instruments manufacturing......................................................... Management of companies and enterprises................................. Aerospace product and parts manufacturing............................... Federal Government.......................................................................... Architectural, engineering, and related services........................  $101,290 98,000 97,420 90,030 89,520  Median annual earnings of natural sciences managers were $82,250 in 2002. The middle 50 percent earned between $60,000 and $111,070. The lowest 10 percent earned less than $45,640, and the highest 10 percent earned more than $144,590. Median annual earnings in the industries employing the largest numbers of natural sciences managers in 2002 were: Scientific research and development services............................. Federal Government.................. .......................................................  $101,690 77,020  A survey of manufacturing firms, conducted by Abbot, Langer & Associates, found that engineering department managers and su­ perintendents earned a median annual income of $89,271 in 2003, while research and development managers earned $86,412. In addition, engineering and natural sciences managers, espe­ cially those at higher levels, often receive more benefits—such as expense accounts, stock option plans, and bonuses—than do nonmanagerial workers in their organizations. Related Occupations The work of engineering and natural sciences managers is closely related to that of engineers; mathematicians; and physical and life scientists, including agricultural and food scientists, biological and medical scientists, conservation scientists and foresters, atmospheric scientists, chemists and materials scientists, environmental scien­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tists and geoscientists, and physicists and astronomers. It also is related to the work of other managers, especially top executives. Sources of Additional Information For information about a career as an engineering and natural sci­ ences manager, contact the sources of additional information for engineers, life scientists, and physical scientists that are listed at the end of statements on these occupations elsewhere in the Handbook.  Farmers, Ranchers, and Agricultural Managers __ (0*NET 11-9011.01, 11-9011.02,11-9011.03, 11-9012.00)  Significant Points •  •  Modern farming requires knowledge of new developments in agriculture, and work experience acquired through growing up on a farm or through a small number of internships now available. Overall employment is projected to decline because of increasing productivity and consolidation of farms.  •  Aquaculture and horticulture should provide better employment opportunities.  •  Developments in value-added marketing and organic farming are making small-scale farming economically viable again.  Nature of the Work American farmers, ranchers, and agricultural managers direct the activities of one of the world’s largest and most productive agricul­ tural sectors. They produce enough food and fiber to meet the needs of the United States and produce a surplus for export. Farmers and ranchers own and operate mainly family-owned farms. They may also lease land from a landowner and operate it as a working farm. The type of farm they operate determines their specific tasks. On crop farms—farms growing grain, cotton, and other fibers, fruit, and vegetables—farmers are responsible for pre­ paring, tilling, planting, fertilizing, cultivating, spraying, and har­ vesting. After the harvest, they make sure the crops are properly packaged, stored, or marketed. Livestock, dairy, and poultry farm­ ers must feed, and care for the animals and keep bams, pens, coops, and other farm buildings clean and in good condition. They also plan and oversee breeding and marketing activities. Horticultural specialty farmers oversee the production of ornamental plants, nurs­ ery products—such as flowers, bulbs, shrubbery, and sod—and fruits and vegetables grown in greenhouses. Aquaculture farmers raise fish and shellfish in marine, brackish, or fresh water, usually in ponds, floating net pens, raceways, or recirculating systems. They stock, feed, protect, and otherwise manage aquatic life sold for consump­ tion or used for recreational fishing. Responsibilities of farmers and ranchers range from caring for livestock, to operating machinery, to maintaining equipment and facilities. The size of the farm or ranch often determines which of these tasks farmers and ranchers will handle themselves. Operators of small farms usually perform all tasks, physical and administra­ tive. They keep records for management and tax purposes, service machinery, maintain buildings, and grow vegetables and raise ani­ mals. Operators of large farms, on the other hand, have employees who help with the physical work that small-farm operators do them­  Management and Business and Financial Operations Occupations 37 selves. Although employment on most farms is limited to the farmer and one or two family workers or hired employees, some large farms have 100 or more full-time and seasonal workers. Some of these employees are in nonfarm occupations, working as truck drivers, sales representatives, bookkeepers, and computer specialists. Agricultural managers manage the day-to-day activities of one or more farms, ranches, nurseries, timber tracts, greenhouses, and other agricultural establishments for farmers, absentee landowners, or corporations. Their duties and responsibilities vary widely, but are concentrated on the business aspects of running a farm. On small farms, they may oversee the entire operation, while on large farms they may oversee a single activity, such as marketing. Agri­ cultural managers usually do not perform production activities; in­ stead they hire and supervise farm and livestock workers, who per­ form most of the daily production tasks. In these cases, managers may establish output goals; determine financial constraints; moni­ tor production and marketing; hire, assign, and supervise workers; determine crop transportation and storage requirements; and over­ see maintenance of the property and equipment. Farmers, ranchers, and agricultural managers make many mana­ gerial decisions. Farm output is strongly influenced by the weather, disease, fluctuations in prices of domestic and foreign farm prod­ ucts, and Federal farm programs. In crop production operations, farmers and managers usually determine the best time to plant seed, apply fertilizer and chemicals, harvest, and market. They use dif­ ferent strategies to protect themselves from unpredictable changes in the markets for agricultural products. Many farmers and manag­ ers carefully plan the combination of crops they grow so that if the price of one crop drops, they will have sufficient income from an­ other to make up for the loss. While most farm output is sold to middlemen—primarily food processing companies—some farmers, particularly operators of smaller farms, may choose to sell their goods directly through farmers’ markets, or use cooperatives to reduce their financial risk and to gain a larger share of consumers’ expenditures on food. For example, in Community Supported Agriculture (CSA), cooperatives sell to consumers shares of a harvest prior to the plant­ ing season, thus freeing the farmer from having to bear all the finan­ cial risks and ensuring the farmer a market for the produce of the coming season. Farmers, ranchers, and agricultural managers also negotiate with banks and other credit lenders to get the best financing deals for their equipment as well as their livestock and seed. They must also keep abreast of constantly changing prices for their products and be able to manage the risk of fluctuating prices. Those who plan ahead may be able to store their crops or keep their livestock to take ad­ vantage of better prices later in the year. Those who participate in the risky futures market, where contracts on agricultural goods are bought and sold at specified prices in the future, can minimize the risk of sudden price changes by buying futures contracts that guar­ antee they will get at least a certain price for their agricultural goods when they are ready to sell. Like other businesses, farming operations have become more complex in recent years, so many farmers use computers to keep financial and inventory records. They also use computer databases and spreadsheets to manage breeding, dairy, and other farm opera­ tions. Working Conditions The work of farmers, ranchers, and agricultural managers is often strenuous; work hours are frequently long; and they rarely have days off during the planting, growing, and harvesting seasons. Neverthe­ less, for those who enter farming or ranching, the disadvantages are outweighed by the quality of life in a rural area, working outdoors,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  being self-employed, and making a living working the land. Farm­ ers and farm managers on crop farms usually work from sunrise to sunset during the planting and harvesting seasons. During the rest of the year they plan next season’s crops, market their output, and repair machinery; some may earn additional income by working a second job off the farm. On livestock producing farms and ranches, work goes on through­ out the year. Animals, unless they are grazing, must be fed and watered every day, and dairy cows must be milked two or three times a day. Many livestock and dairy farmers monitor and attend to the health of their herds, which may include assisting in the birthing of animals. Such farmers rarely get the chance to get away unless they hire an assistant or arrange for a temporary substitute. Farmers who grow produce and perishables have different de­ mands on their time. For example, organic farmers must maintain cover crops during the cold months, which keep them occupied with farming beyond the typical growing season. Farm work also can be hazardous. Tractors and other farm ma­ chinery can cause serious injury, and workers must be constantly alert on the job. The proper operation of equipment and handling of chemicals is necessary to avoid accidents and protect the environ­ ment. On very large farms, farmers spend substantial time meeting with farm managers or farm supervisors in charge of various activities. Professional farm managers overseeing several farms may divide their time between traveling to meet farmers or landowners and plan­ ning the farm operations in their offices. As farming practices and agricultural technology become more sophisticated, farmers and farm managers are spending more time in offices and at computers, where they electronically manage many aspects of their businesses. Some farmers also spend time at conferences, particularly during the win­ ter months, exchanging information. Employment Farmers, ranchers, and agricultural managers held nearly 1.4 mil­ lion jobs in 2002. About 84 percent were self-employed. Most farm­ ers, ranchers, and agricultural managers oversee crop production activities, while others manage livestock and dairy production. A smaller number are involved in agricultural services, such as con­ tract harvesting and farm labor contracting. The soil, topography of the land, and climate determine the type of farming and ranching done in a particular area. For example, California, Wisconsin, New York, and Pennsylvania lead the country in milk production, while Iowa, Ohio, Pennsylvania, and California  G25E w..4k  ^  Getting a crop to market is a prime responsibility offarmers and agricultural managers.  38 Occupational Outlook Handbook lead in egg production. Texas, California, Mississippi, Georgia, and Arizona are the biggest cotton producers; and Kansas, North Dakota, Washington, and Montana are the biggest wheat producers. Training, Other Qualifications, and Advancement Growing up on a family farm and participating in agricultural pro­ grams for young people (sponsored by the National FFA Organiza­ tion, formerly known as the Future Farmers of America, or the 4-H youth educational programs, or other educational opportunities of­ fered by the Extension Service) are important sources of training for those interested in pursuing agriculture as a career. However, modem farming requires increasingly complex scientific, business, and financial decisions. Therefore, even people who were raised on farms must acquire the appropriate education. Not all agricultural managers grew up on farms or ranches. For these people, a bachelor’s degree in business with a concentration in agriculture is important. In addition to formal education, they need several years of work experience in the different aspects of farm and ranch operations in order to qualify for an agricultural manager position. Students should select the college most appropriate to their spe­ cific interests and location. In the United States, all State univer­ sity systems have one land-grant university with a school of agri­ culture. Common programs of study include agronomy, dairy science, agricultural economics and business, horticulture, crop and fruit science, and animal science. For students interested in aquac­ ulture, formal programs are available, and include coursework in fisheries biology, fish culture, hatchery management and mainte­ nance, and hydrology. Whatever one’s interest, the college cur­ riculum should include courses in agricultural production, market­ ing, and economics. Professional status can be enhanced through voluntary certifica­ tion as an Accredited Farm Manager (AFM) by the American Soci­ ety of Farm Managers and Rural Appraisers. Certification requires several years of farm management experience, the appropriate aca­ demic background—a bachelor’s degree or, preferably, a master’s degree in a field of agricultural science—and the passing of courses and examinations relating to business, financial, and legal aspects of farm and ranch management. Farmers, ranchers, and agricultural managers need to keep abreast of continuing advances in agricultural methods both in the United States and abroad, as well as changes in governmental regulations that may impact methods or markets for particular crops. Besides print journals that inform the agricultural community, the spread of the Internet allows quick access to the latest developments in areas such as agricultural marketing, legal arrangements, or growing crops, vegetables, and livestock. Electronic mail, on-line journals, and newsletters from agricultural organizations also speed the exchange of information directly between farming associations and individual farmers. Farmers, ranchers, and agricultural managers also must have enough technical knowledge of crops, growing conditions, and plant diseases to make decisions ensuring the successful operation of their farms. A rudimentary knowledge of veterinary science, as well as animal husbandry, is important for livestock and dairy farmers. Knowledge of the relationship between farm operations—for ex­ ample, the use of pesticides—and environmental conditions is es­ sential. Mechanical aptitude and the ability to work with tools of all kinds are also valuable skills for the operator of a small farm, who often maintains and repairs machinery or farm structures. Farmers, ranchers, and agricultural managers need the manage­ rial skills necessary to organize and operate a business. A basic knowledge of accounting and bookkeeping is essential in keeping  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  financial records, while knowledge of credit sources is vital for buy­ ing seed, fertilizer, and other inputs necessary for planting. It is also necessary to be familiar with complex safety regulations and re­ quirements of governmental agricultural support programs. Com­ puter skills are increasingly important, especially on large farms, where computers are widely used for recordkeeping and business analysis. For example, some farmers, ranchers, and agricultural managers use personal computers to access the Internet to get the latest information on prices of farm products and other agricultural news. Additionally, skills in personnel management, communica­ tion, and conflict resolution are equally important in the operation of a farm or ranch business. High school training should include courses in mathematics and in biology and other life sciences. Completion of a 2-year degree, and preferably a 4-year bachelor’s degree program in a college of agriculture, is becoming increasingly important. But even after obtaining formal education, novices may need to spend time work­ ing under an experienced farmer to learn how to put into practice the skills learned through academic training. A small number of farms offer, on a formal basis, apprenticeships to help young people acquire such practical skills. Job Outlook Market pressures and low prices for many agricultural goods, will cause more farms to go out of business over the 2002-2012 period. The complexity of modem farming and keen competition among farmers leaves little room for the marginally successful farmer. Therefore, the long-term trend toward consolidation of farms into fewer and larger farms is expected to continue over the 2002-12 period, and result in the continued decline in employment of selfemployed farmers and ranchers and slower than average growth in employment of salaried agricultural managers. As land, machin­ ery, seed, and chemicals become more expensive, only well capital­ ized farmers and corporations are able to acquire many of the farms that become available. It is the larger, more productive farms that are better able to withstand the adverse effects of climate and price fluctuations upon farm output and income and to cover operating costs for livestock, feed, seed, and fuel, for example. Larger farms also have advantages in competing for government subsidies and payments. In addition, the agriculture sector continues to produce more with fewer workers. Increasing productivity in the U.S. agricultural pro­ duction industry is expected to allow greater domestic consumption needs and export requirements to be met with fewer farmers, ranch­ ers, and agricultural managers overall. The overwhelming major­ ity of job openings for self-employed farmers and ranchers will re­ sult from the need to replace farmers who retire or leave the occupation for economic or other reasons. Despite the expected continued consolidation of farm land and the projected decline in overall employment of farmers, ranchers, and agricultural managers, an increasing number of small-scale farm­ ers have developed successful market niches that involve personal­ ized, direct contact with their customers. Many are finding oppor­ tunities in organic food production, as more consumers demand food grown without pesticides or chemicals. Others use farmers’ mar­ kets that cater directly to urban and suburban consumers, allowing the farmers to capture a greater share of consumers’ food dollars. Some small-scale farmers, such as some dairy farmers, belong to collectively owned marketing cooperatives that process and sell their product. Other farmers participate in community-supported agri­ culture cooperatives that allow consumers to directly buy a share of the farmer’s harvest.  Management and Business and Financial Operations Occupations 39 Aquaculture also should continue to provide some new employ­ ment opportunities over the 2002-12 period. Overfishing has re­ sulted in declining ocean catches even as public demand for the consumption of seafood continues to grow. This has spurred the growth of aquaculture farms that raise selected aquatic species— such as shrimp, salmon, trout and catfish—in pens or ponds. Aquaculture’s presence in even landlocked States has increased as farmers attempt to diversify and cater to the growing demand for fish by consumers. Additionally, growing consumer demand for horticulture products, such as flowers and ornamentals, trees, shrubs, and other non-edibles, is expected to produce better employment opportunities for greenhouse and nursery farmers and managers. Earnings Incomes of fanners and ranchers vary greatly from year to year because prices of farm products fluctuate depending upon weather conditions and other factors that influence the quantity and quality of farm output and the demand for those products. A farm that shows a large profit in one year may show a loss in the following year. Farmers, however, often receive government subsidies or other payments that supplement their incomes and reduce some of the risk of farming. Price supports for dairy farmers, though, are being phased out and may result in lower incomes for these farmers. Many farmers—primarily operators of small farms—have income from off-farm business activities or careers, often greater than that of their farm income. Full-time, salaried farm managers had median annual earnings of $43,740 in 2002. The middle half earned between $32,620 and $59,330. The highest paid 10 percent earned more than $81,100, and the lowest paid 10 percent earned less than $24,410. Farmers and self-employed farm managers make their own pro­ visions for benefits. As members of farm organizations, they may derive benefits such as group discounts on health and life insurance premiums. Related Occupations Farmers, ranchers, and agricultural managers strive to improve the quality of agricultural products and the efficiency of farms. Others whose work is related to agricultural products include agricultural engineers, agricultural and food scientists, agricultural workers, and purchasing agents and buyers of farm products. Sources of Additional Information For general information about farming and agricultural occupations, contact: >- Center for Rural Affairs, P.O. Box 406, Walthill, NE 68067. Internet: http ://www.cfra.org >- National FFA Organization, The National FFA Center, Attention Career Information Requests, P.O. Box 68690, Indianapolis, IN 46268-0960. Internet: http://www.ffa.org  For information about certification as an accredited farm man­ ager, contact: >- American Society of Farm Managers and Rural Appraisers, 950 Cherry St., Suite 508, Denver, CO 80222. Internet: http://www.asfmra.org  For information on the USDA’s program to help small farmers get started, contact: > Small Farm Program, U.S. Department of Agriculture, Cooperative State, Research, Education, and Extension Service, Stop 2220, Washington, DC 20250-2220. Internet: http://www.reeusda.gov/smallfarm/  For information on aquaculture, education, training, or Commu­ nity Supported Agriculture, contact: >• Alternative Farming System Information Center (AFSIC), National Agricultural Library USDA, 10301 Baltimore Ave., Room 132, Beltsville, MD 20705-2351. Internet: http://www.nal.usda.gov/afsic >■ Appropriate Technology Transfer for Rural Areas, P.O. Box 3657, Fayetteville, AR 72702. Internet: http://www.attra.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Financial Managers (0*NET 11-3031.01, 11-3031.02)  Significant Points •  A bachelor’s degree in finance, accounting, or a related field is the minimum academic preparation, but many employers increasingly seek graduates with a master’s degree.  •  Employment will grow as the economy expands and increases the need for workers with financial expertise.  Nature of the Work Almost every firm, government agency, and organization has one or more financial managers who oversee the preparation of finan­ cial reports, direct investment activities, and implement cash man­ agement strategies. As computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization. The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit man­ ager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and fore­ cast the organization’s financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Con­ trollers also are in charge of preparing special reports required by regulatory authorities. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers di­ rect the organization’s financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, su­ pervise cash management activities, execute capital-raising strate­ gies to support a firm’s expansion, and deal with mergers and ac­ quisitions. Credit managers oversee the firm’s issuance of credit. They establish credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts. Managers specializ­ ing in international finance develop financial and accounting sys­ tems for the banking transactions of multinational organizations. Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example, cashflow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in interest-bearing instruments. Risk and insurance managers oversee programs to minimize risks and losses that might arise from financial transactions and business op­ erations undertaken by the institution. They also manage the organization’s insurance budget. Financial institutions, such as commercial banks, savings and loan associations, credit unions, and mortgage and finance compa­ nies, employ additional financial managers who oversee various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or electronic financial ser­ vices. These managers may be required to solicit business, autho­ rize loans, and direct the investment of funds, always adhering to Federal and State laws and regulations. (Chief financial officers and other executives are included with top executives elsewhere in the Handbook.) Branch managers of financial institutions administer and man­ age all of the functions of a branch office, which may include hir­  40 Occupational Outlook Handbook ing personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting cus­ tomers with account problems. Financial managers who work for financial institutions must keep abreast of the rapidly growing ar­ ray of financial services and products. In addition to the general duties described above, all financial managers perform tasks unique to their organization or industry. For example, government financial managers must be experts on the government appropriations and budgeting processes, whereas healthcare financial managers must be knowledgeable about issues surrounding healthcare financing. Moreover, financial managers must be aware of special tax laws and regulations that affect their industry. Financial managers play an increasingly important role in merg­ ers and consolidations, and in global expansion and related financ­ ing. These areas require extensive, specialized knowledge on the part of the financial manager to reduce risks and maximize profit. Financial managers increasingly are hired on a temporary basis to advise senior managers on these and other matters. In fact, some small firms contract out all accounting and financial functions to companies that provide these services. The role of the financial manager, particularly in business, is changing in response to technological advances that have signifi­ cantly reduced the amount of time it takes to produce financial re­ ports. Financial managers now perform more data analysis and use it to offer senior managers ideas on how to maximize profits. They often work on teams, acting as business advisors to top manage­ ment. Financial managers need to keep abreast of the latest com­ puter technology in order to increase the efficiency of their firm’s financial operations. Working Conditions Financial managers work in comfortable offices, often close to top managers and to departments that develop the financial data these managers need. They typically have direct access to state-of-theart computer systems and information services. Financial managers commonly work long hours, often up to 50 or 60 per week. They generally are required to attend meetings of financial and economic associations and may travel to visit subsidiary firms or to meet cus­ tomers. Employment Financial managers held about 599,000 jobs in 2002. While the vast majority is employed in private industry, nearly 1 in 10 work for the different branches of government. In addition, although they can be found in every industry, approximately 1 out of 4 are em­ ployed by insurance and finance establishments, such as banks, sav­ ings institutions, finance companies, credit unions, and securities dealers. Training, Other Qualifications, and Advancement A bachelor’s degree in finance, accounting, economics, or business administration is the minimum academic preparation for financial managers. However, many employers now seek graduates with a master’s degree, preferably in business administration, economics, finance, or risk management. These academic programs develop analytical skills and provide knowledge of the latest financial analy­ sis methods and technology. Experience may be more important than formal education for some financial manager positions—notably, branch managers in banks. Banks typically fill branch manager positions by promoting   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  :TK''  *  . i \ ;■■■. ”>* ’ “ ' J  —  Financial managers develop strategies and implement the long-term goals of an organization. experienced loan officers and other professionals who excel at their jobs. Other financial managers may enter the profession through formal management training programs offered by the company. Continuing education is vital for financial managers, who must cope with the growing complexity of global trade, changes in Fed­ eral and State laws and regulations, and the proliferation of new and complex financial instruments. Firms often provide opportuni­ ties for workers to broaden their knowledge and skills by encourag­ ing employees to take graduate courses at colleges and universities or attend conferences related to their specialty. Financial manage­ ment, banking, and credit union associations, often in cooperation with colleges and universities, sponsor numerous national and local training programs. Persons enrolled prepare extensively at home and then attend sessions on subjects such as accounting manage­ ment, budget management, corporate cash management, financial analysis, international banking, and information systems. Many firms pay all or part of the costs for employees who successfully com­ plete courses. Although experience, ability, and leadership are em­ phasized for promotion, advancement may be accelerated by this type of special study. In some cases, financial managers also may broaden their skills and exhibit their competency by attaining professional certifica­ tion. There are many different associations that offer professional certification programs. For example, the Association for Invest­ ment Management and Research confers the Chartered Financial Analyst designation on investment professionals who have a bachelor’s degree, pass three sequential examinations, and meet work experience requirements. The Association for Financial Profession­ als (AFP) confers the Certified Cash Manager credential to those who pass a computer-based exam and have a minimum of 2 years of relevant experience. The Institute of Management Accountants offers a Certified in Financial Management designation to mem­ bers with a BA and at least 2 years of work experience who pass the institute’s four-part examination and fulfill continuing education requirements. Also, financial managers who specialize in account­ ing may earn the Certified Public Accountant (CPA) or Certified Management Accountant (CMA) designations. (See accountants and auditors elsewhere in the Handbook.) Candidates for financial management positions need a broad range of skills. Interpersonal skills are important because these jobs involve managing people and working as part of a team to solve problems. Financial managers must have excellent communication  Management and Business and Financial Operations Occupations 41 skills to explain complex financial data. Because financial manag­ ers work extensively with various departments in their firm, a broad overview of the business is essential. Financial managers should be creative thinkers and problemsolvers, applying their analytical skills to business. They must be comfortable with the latest computer technology. As financial op­ erations increasingly are affected by the global economy, financial managers must have knowledge of international finance. Proficiency in a foreign language also may be important. Because financial management is critical for efficient business operations, well-trained, experienced financial managers who dis­ play a strong grasp of the operations of various departments within their organization are prime candidates for promotion to top man­ agement positions. Some financial managers transfer to closely re­ lated positions in other industries. Those with extensive experi­ ence and access to sufficient capital may start their own consulting firms. Job Outlook Employment of financial managers is expected to grow about as fast as the average for all occupations through 2012. Growth is expected to be steady and will increase in line with the growth of the economy as a whole. However, jobseekers are likely to face keen competition for jobs, as the number of job openings is ex­ pected to be less than the number of applicants. Candidates with expertise in accounting and finance, particularly those with a master’s degree, should enjoy the best job prospects. Strong computer skills and knowledge of international finance are important; so are excel­ lent communication skills, because financial management jobs in­ volve working on strategic planning teams. As the economy expands, job growth for financial managers will stem from both the expansion of established companies and from the creation of new businesses. Over the short term, employment in this occupation is negatively impacted by economic downturns, during which companies are more likely to close departments, or even go out of business—decreasing the need for financial manag­ ers. Mergers, acquisitions, and corporate downsizing also are likely to adversely affect employment of financial managers. However, the growing need for financial expertise as the economy expands will ensure job growth over the next decade. The banking industry, which employs more than 1 out of 10 fi­ nancial managers, will continue to consolidate, although at a slower rate than in previous years. In spite of this trend, employment of bank branch managers is expected to increase as banks begin to refocus on the importance of their existing branches and as new branches are created to service a growing population. As banks expand the range of products and services they offer to include in­ surance and investment products, branch managers with knowledge in these areas will be needed. As a result, candidates who are li­ censed to sell insurance or securities will have the most favorable prospects. Despite the current downturn in the securities and commodities industry, the long-mn prospects for financial managers in that in­ dustry should be favorable, as more will be needed to handle in­ creasingly complex financial transactions and manage a growing amount of investments. Financial managers also will be needed to handle mergers and acquisitions, raise capital, and assess global fi­ nancial transactions. Risk managers, who assess risks for insurance and investment purposes, also will be in demand. Some companies may hire financial managers on a temporary basis, to see the organization through a short-term crisis or to offer  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  suggestions for boosting profits. Other companies may contract out all accounting and financial operations. Even in these cases, however, financial managers may be needed to oversee the con­ tracts. Computer technology has reduced the time and staff required to produce financial reports. As a result, forecasting earnings, profits, and costs, and generating ideas and creative ways to increase prof­ itability will become a major role of corporate financial managers over the next decade. Financial managers who are familiar with computer software that can assist them in this role will be needed. Earnings Median annual earnings of financial managers were $73,340 in 2002. The middle 50 percent earned between $52,490 and $ 100,660. The lowest 10 percent had earnings of less than $39,120, while the top 10 percent earned over $142,260. Median annual earnings in the industries employing the largest numbers of financial managers in 2002 were as follows: Securities and commodity contracts intermediation and brokerage........................................................................................ Management of companies and enterprises................................. Nondepository credit intermediation............................................ Local government............................................................................. Depository credit intermediation...................................................  $125,220 88,310 78,400 63,090 58,790  According to a 2002 survey by Robert Half International, a staff­ ing services firm specializing in accounting and finance profession­ als, directors of finance earned between $75,000 and $204,500, and corporate controllers earned between $54,000 and $138,750. The Association for Financial Professionals’ 14th annual com­ pensation survey showed that financial officers’ average total com­ pensation in 2002, including bonuses and deferred compensation, was $130,900. Selected financial manager positions had average total compensation as follows: Vice president of finance................................................................. Treasurer.............................................................................................. Assistant vice president-finance.................................................... Controller/comptroller..................................................................... Director................................................................................................. Assistant treasurer............................................................................. Assistant controller/comptroller.................................................... Manager................................................................................................ Cash manager.....................................................................................  $183,500 150,600 141,300 134,300 113,600 111,900 115,500 84,500 64,700  Large organizations often pay more than small ones, and salary levels also can depend on the type of industry and location. Many financial managers in both public and private industry receive addi­ tional compensation in the form of bonuses, which also vary sub­ stantially by size of firm. Deferred compensation in the form of stock options is becoming more common, especially for senior level executives. Related Occupations Financial managers combine formal education with experience in one or more areas of finance, such as asset management, lending, credit operations, securities investment, or insurance risk and loss control. Workers in other occupations requiring similar training and skills include accountants and auditors; budget analysts; fi­ nancial analysts and personal financial advisors; insurance under­ writers; loan counselors and officers; securities, commodities, and financial services sales agents; and real estate brokers and sales agents.  42 Occupational Outlook Handbook Sources of Additional Information For information about careers and certification in financial man­ agement, contact: >- Financial Management Association International, College of Business Administration, University of South Florida, Tampa, FL 33620-5500. Internet: http://www.fma.org  For information about careers in financial and treasury manage­ ment and the Certified Cash Manager program, contact: >- Association for Financial Professionals, 7315 Wisconsin Ave., Suite 600 West, Bethesda, MD 20814. Internet: http://www.afponline.org  For information about the Chartered Financial Analyst program, contact: >- Association for Investment Management and Research, P.O. Box 3668, 560 Ray Hunt Dr., Charlottesville, VA 22903-0668. Internet: http://www.aimr.org  For information about the Certified in Financial Management designation, contact: >- Institute of Management Accountants, 10 Paragon Drive, Montvale, NJ, 07645-1759. Internet: http://www.imanet.org/  Food Service Managers (0*NET 11-9051.00)  Significant Points •  Many experienced food and beverage preparation and service workers are promoted into managerial positions; however, applicants with a bachelor’s or an associate degree in restaurant and institutional food service management should have the best job opportunities.  •  Most new jobs will arise in food services and drinking places as the number of establishments increases along with the population.  •  Job opportunities for salaried food service managers should be better than for self-employed managers, because more restaurant managers will be employed by larger companies to run multi-outlet establishments.  Nature of the Work Food service managers are responsible for the daily operations of restaurants and other establishments that prepare and serve meals and beverages to customers. Besides coordinating activities among various departments, such as kitchen, dining room, and banquet operations, food service managers ensure that customers are satis­ fied with their dining experience. In addition, they oversee the in­ ventory and ordering of food, equipment, and supplies and arrange for the routine maintenance and upkeep of the restaurant, its equip­ ment, and facilities. Managers generally are responsible for all of the administrative and human-resource functions of running the business, including recruiting new employees and monitoring em­ ployee performance and training. In most full-service restaurants and institutional food service facilities, the management team consists of a general manager, one or more assistant managers, and an executive chef. The executive chef is responsible for all food preparation activities, including run­ ning kitchen operations, planning menus, and maintaining quality standards for food service. In limited-service eating places, such as sandwich shops, coffee bars, or fast-food establishments, manag­ ers, not executive chefs, are responsible for supervising routine food  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  preparation operations. Assistant managers in full-service facilities generally oversee service in the dining rooms and banquet areas. In larger restaurants and fast-food or other food service facilities that serve meals daily and maintain longer hours, individual assistant managers may supervise different shifts of workers. In smaller res­ taurants, formal titles may be less important, and one person may undertake the work of one or more food service positions. For ex­ ample, the executive chef also may be the general manager or even sometimes an owner. (For additional information on these other workers, see the Handbook statements on top executives and chefs, cooks, and food preparation workers.) One of the most important tasks of food service managers is assisting executive chefs as they select successful menu items. This task varies by establishment depending on the seasonality of menu items, the frequency with which restaurants change their menus, and the introduction of daily or weekly specials. Many restaurants rarely change their menus while others make frequent alterations. Managers or executive chefs select menu items, taking into account the likely number of customers and the past popularity of dishes. Other issues considered when planning a menu include whether there was any unserved food left over from prior meals that should not be wasted, the need for variety, and the seasonal availability of foods. Managers or executive chefs analyze the recipes of the dishes to determine food, labor, and overhead costs and to assign prices to various dishes. Menus must be developed far enough in advance that supplies can be ordered and received in time. Managers or executive chefs estimate food needs, place orders with distributors, and schedule the delivery of fresh food and sup­ plies. They plan for routine services or deliveries, such as linen services or the heavy cleaning of dining rooms or kitchen equip­ ment, to occur during slow times or when the dining room is closed. Managers also arrange for equipment maintenance and repairs, and coordinate a variety of services such as waste removal and pest con­ trol. Managers or executive chefs receive deliveries and check the contents against order records. They inspect the quality of fresh meats, poultry, fish, fruits, vegetables, and baked goods to ensure that expectations are met. They meet with representatives from restaurant supply companies and place orders to replenish stocks of tableware, linens, paper products, cleaning supplies, cooking uten­ sils, and furniture and fixtures. Managers must be good communicators. They need to speak well, often in several languages, with a diverse clientele and staff. They must motivate employees to work as a team, to ensure that food and service meet appropriate standards. Managers also must ensure that written supply orders are clear and unambiguous. Managers interview, hire, train, and, when necessary, fire em­ ployees. Retaining good employees is a major challenge facing food service managers. Managers recruit employees at career fairs, contact schools that offer academic programs in hospitality or culi­ nary arts, and arrange for newspaper advertising to attract addi­ tional applicants. Managers oversee the training of new employees and explain the establishment’s policies and practices. They sched­ ule work hours, making sure that enough workers are present to cover each shift. If employees are unable to work, managers may have to call in alternates to cover for them or fill in themselves when needed. Some managers may help with cooking, clearing tables, or other tasks when the restaurant becomes extremely busy. Food service managers ensure that diners are served properly and in a timely manner. They investigate and resolve customers’ complaints about food quality or service. They monitor orders in the kitchen to determine where backups may occur, and they work with the chef to remedy any delays in service. Managers direct the  Management and Business and Financial Operations Occupations 43 cleaning of the dining areas and the washing of tableware, kitchen utensils, and equipment to comply with company and government sanitation standards. Managers also monitor the actions of their employees and patrons on a continual basis to ensure the personal safety of everyone. They make sure that health and safety stan­ dards and local liquor regulations are obeyed. In addition to their regular duties, food service managers per­ form a variety of administrative assignments, such as keeping em­ ployee work records, preparing the payroll, and completing paper­ work to comply with licensing laws and reporting requirements of tax, wage and hour, unemployment compensation, and Social Se­ curity laws. Some of this work may be delegated to an assistant manager or bookkeeper, or it may be contracted out, but most gen­ eral managers retain responsibility for the accuracy of business records. Managers also maintain records of supply and equipment purchases and ensure that accounts with suppliers are paid. Technology influences the jobs of food service managers in many ways, enhancing efficiency and productivity. Many restaurants use computers to track orders, inventory, and the seating of patrons. Point-of-service (POS) systems allow servers to key in a customer’s order, either at the table, using a hand-held device, or from a com­ puter terminal in the dining room, and send the order to the kitchen instantaneously so preparation can begin. The same system totals and prints checks, functions as a cash register, connects to credit card authorizers, and tracks sales. To minimize food costs and spoil­ age, many managers use inventory-tracking software to compare the record of sales from the POS with a record of the current inven­ tory. Some establishments enter an inventory of standard ingredi­ ents and suppliers into their POS system. When supplies of par­ ticular ingredients run low, they can be ordered directly from the supplier using preprogrammed information. Computers also allow restaurant and food service managers to keep track of employee schedules and paychecks more efficiently. Food service managers use the Internet to track industry news, find recipes, conduct market research, purchase supplies or equip­ ment, recruit employees, and train staff. Internet access also makes service to customers more efficient. Many restaurants maintain Web sites that include menus and online promotions, provide informa­ tion about the restaurant’s location, and offer patrons the option to make a reservation. Managers tally the cash and charge receipts received and bal­ ance them against the record of sales. They are responsible for depositing the day’s receipts at the bank or securing them in a safe place. Finally, managers are responsible for locking up the estab­ lishment, checking that ovens, grills, and lights are off, and switch­ ing on alarm systems. Working Conditions Food service managers are among the first to arrive in the morning and the last to leave at night. Long hours—12 to 15 per day, 50 or more per week, and sometimes 7 days a week—are common. Man­ agers of institutional food service facilities, such as school, factory, or office cafeterias, work more regular hours because the operating hours of these establishments usually conform to the operating hours of the business or facility they serve. However, hours for many managers are unpredictable. Managers should be calm, flexible, and able to work through emergencies, such as a fire or flood, in order to ensure everyone’s safety. Managers also should be able to fill in for absent workers on short notice. Managers often experience the pressures of simulta­ neously coordinating a wide range of activities. When problems  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  occur, it is the manager’s responsibility to resolve them with mini­ mal disruption to customers. The job can be hectic, and dealing with irate customers or uncooperative employees can be stressful. Managers also may experience the typical minor injuries of other restaurant workers, such as muscle aches, cuts, or bums. They might endure physical discomfort from moving tables or chairs to accom­ modate large parties, receiving and storing daily supplies from ven­ dors, or making minor repairs to furniture or equipment. Employment Food service managers held about 386,000 jobs in 2002. Most managers were salaried, but about one-third were self-employed in independent restaurants or other small food service establishments. Almost three-fourths of all salaried jobs for food service managers were in full-service restaurants or limited-service eating places, such as fast-food restaurants and cafeterias. Other salaried jobs were in drinking places (alcoholic beverages) and in special food services— an industry that includes food service contractors who supply food services at institutional, governmental, commercial, or industrial locations. A small number of salaried jobs were in traveler accom­ modation (hotels); educational services; amusement, gambling, and recreation industries; nursing care facilities; and hospitals. Jobs are located throughout the country, with large cities and tourist areas providing more opportunities for full-service dining positions.  _...  ..  Food service managers check orders to ensure adequate inventories offood and other supplies.  44 Occupational Outlook Handbook Training, Other Qualifications, and Advancement Most food service management companies and national or regional restaurant chains recruit management trainees from 2- and 4-year college hospitality management programs. Restaurant chains pre­ fer to hire people with degrees in restaurant and institutional food service management, but they often hire graduates with degrees in other fields who have demonstrated interest and aptitude. Some restaurant and food service manager positions—particularly self­ service and fast-food—are filled by promoting experienced food and beverage preparation and service workers. Waiters, waitresses, chefs, and fast-food workers demonstrating potential for handling increased responsibility sometimes advance to assistant manager or management trainee jobs. Executive chefs need extensive experi­ ence working as chefs, and general managers need prior restaurant experience, usually as assistant managers. A bachelor’s degree in restaurant and food service management provides particularly strong preparation for a career in this occu­ pation. A number of colleges and universities offer 4-year pro­ grams in restaurant and hotel management or institutional food service management. For those not interested in pursuing a 4-year degree, community and junior colleges, technical institutes, and other institutions offer programs in the field leading to an associ­ ate degree or other formal certification. Both 2- and 4-year pro­ grams provide instruction in subjects such as nutrition, sanitation, and food planning and preparation, as well as accounting, business law and management, and computer science. Some programs com­ bine classroom and laboratory study with internships providing onthe-job experience. In addition, many educational institutions of­ fer culinary programs in food preparation. Such training can lead to a career as a cook or chef and provide a foundation for advance­ ment to an executive chef position. Most restaurant chains and food service management compa­ nies have rigorous training programs for management positions. Through a combination of classroom and on-the-job training, train­ ees receive instruction and gain work experience in all aspects of the operation of a restaurant or institutional food service facility. Areas include food preparation, nutrition, sanitation, security, com­ pany policies and procedures, personnel management, record­ keeping, and preparation of reports. Training on use of the restaurant’s computer system is increasingly important as well. Usually, after 6 months or a year, trainees receive their first perma­ nent assignment as an assistant manager. Most employers emphasize personal qualities when hiring man­ agers. For example, self-discipline, initiative, and leadership abil­ ity are essential. Managers must be able to solve problems and concentrate on details. They need good communication skills to deal with customers and suppliers, as well as to motivate and direct their staff. A neat and clean appearance is important, because man­ agers must convey self-confidence and show respect in dealing with the public. Food service management can be physically demand­ ing, so good health and stamina also are important. The certified Foodservice Management Professional (FMP) des­ ignation is a measure of professional achievement for food service managers. Although not a requirement for employment or advance­ ment in the occupation, voluntary certification provides recogni­ tion of professional competence, particularly for managers who ac­ quired their skills largely on the job. The National Restaurant Association Educational Foundation awards the FMP designation to managers who achieve a qualifying score on a written examina­ tion, complete a series of courses that cover a range of food service management topics, and meet standards of work experience in the field.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Willingness to relocate often is essential for advancement to po­ sitions with greater responsibility. Managers typically advance to larger establishments or regional management positions within res­ taurant chains. Some eventually open their own food service estab­ lishments. Job Outlook Employment of food service managers is expected to grow about as fast as the average for all occupations through 2012. In addition to job openings arising out of employment growth, the need to replace managers who transfer to other occupations or stop working will create many job opportunities. Applicants with a bachelor’s or an associate degree in restaurant and institutional food service man­ agement should have the best job opportunities. Projected employment growth varies by industry. Most new jobs will arise in full-service restaurants and limited-service eating places as the number of these establishments increases along with the popu­ lation. Manager jobs in special food services, an industry that in­ cludes food service contractors, will increase as hotels, schools, healthcare facilities, and other businesses contract out their food services to firms in this industry. Food service manager jobs still are expected to increase in hotels, schools, and health-care facili­ ties, but growth will be slowed as contracting out becomes more common. Job opportunities should be better for salaried managers than for self-employed managers. More new restaurants are affiliated with national chains than are independently owned and operated. As this trend continues, fewer owners will manage restaurants themselves, and more restaurant managers will be employed by larger compa­ nies to run individual establishments. Earnings Median annual earnings of salaried food service managers were $35,790 in 2002. The middle 50 percent earned between $27,910 and $47,120. The lowest 10 percent earned less than $21,760, and the highest 10 percent earned more than $67,490. Median annual earnings in the industries employing the largest numbers of food service managers in 2002 were as follows: Special food services............................................................................ Traveler accommodation..................................................................... Full-service restaurants....................................................................... Nursing care facilities......................................................................... Limited-service eating places............................................................ Elementary and secondary schools..................................................  $40,720 39,210 37,280 33,910 33,590 31,210  In addition to receiving typical benefits, most salaried food ser­ vice managers are provided free meals and the opportunity for ad­ ditional training, depending on their length of service. Related Occupations Food service managers direct the activities of a hospitality-industry business and provide a service to customers. Other managers and supervisors in hospitality-oriented businesses include gaming man­ agers, lodging managers, sales worker supervisors, and first-line supervisors or managers of food preparation and serving workers. Sources of Additional Information Information about a career as a food service manager, 2- and 4-year college programs in restaurant and food service management, and certification as a Foodservice Management Professional is avail­ able from:  Management and Business and Financial Operations Occupations 45 > National Restaurant Association Educational Foundation, 175 West Jackson Blvd., Suite 1500, Chicago, IL 60604-2702. Internet: http://www.nraef.org General information on hospitality careers may be obtained from: >- The International Council on Hotel, Restaurant, and Institutional Edu­ cation, 2613 North Parham Rd., 2nd Floor, Richmond, VA 23294. Internet: http://www.chrie.org  Additional information about job opportunities in food service management may be obtained from local employers and from local offices of State employment services agencies.  Funeral Directors (0*NET 11-9061.00)  Significant Points •  Funeral directors must be licensed by their State.  •  Job opportunities should be good, particularly for those who also embalm; however, mortuary science graduates may have to relocate to find jobs.  Nature of the Work Funeral practices and rites vary greatly among cultures and reli­ gions. Among the many diverse groups in the United States, fu­ neral practices usually share some common elements—removing the deceased to a mortuary, preparing the remains, performing a ceremony that honors the deceased and addresses the spiritual needs of the family, and final disposition of the remains. Funeral direc­ tors arrange and direct these tasks for grieving families. Funeral directors also are called morticians or undertakers. This career may not appeal to everyone, but those who work as funeral directors take great pride in their ability to provide efficient and appropriate services. They also comfort the family and friends of the deceased. Funeral directors arrange the details and handle the logistics of funerals. They interview the family to learn what family members desire with regard to the nature of the funeral, the clergy members or other persons who will officiate, and the final disposition of the remains. Sometimes, the deceased leaves detailed instructions for his or her own funeral. Together with the family, funeral directors establish the location, dates, and times of wakes, memorial services, and burials. They arrange for a hearse to carry the body to the funeral home or mortuary. Funeral directors also prepare obituary notices and have them placed in newspapers, arrange for pallbearers and clergy, schedule the opening and closing of a grave with a representative of the cem­ etery, decorate and prepare the sites of all services, and provide transportation for the remains, mourners, and flowers between sites. They also direct preparation and shipment of remains for out-of­ State burial. Most funeral directors also are trained, licensed, and practicing embalmers. Embalming is a sanitary, cosmetic, and preservative process through which the body is prepared for interment. If more than 24 hours elapses between death and interment, State laws usu­ ally require that the remains be refrigerated or embalmed. When embalming a body, funeral directors wash the body with germicidal soap and replace the blood with embalming fluid to pre­ serve the tissues. They may reshape and reconstruct disfigured or maimed bodies using materials, such as clay, cotton, plaster of paris,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and wax. They also may apply cosmetics to provide a natural ap­ pearance, and then dress the body and place it in a casket. Funeral directors maintain records such as embalming reports, and itemized lists of clothing or valuables delivered with the body. In large fu­ neral homes, an embalming staff of two or more, plus several ap­ prentices may be employed. Funeral services may take place in a home, house of worship, or funeral home, or at the gravesite or crematory. Services may be nonreligious, but often they reflect the religion of the family, so funeral directors must be familiar with the funeral and burial cus­ toms of many faiths, ethnic groups, and fraternal organizations. For example, members of some religions seldom have the bodies of the deceased embalmed or cremated. Burial in a casket is the most common method of disposing of remains in this country, although entombment also occurs. Crema­ tion, which is the burning of the body in a special furnace, is in­ creasingly selected because it can be less expensive, and is becom­ ing more appealing. Memorial services can be held anywhere, and at any time, sometimes months later when all relatives and friends can get together. Even when the remains are cremated, many people still want a funeral service. A funeral service followed by cremation need not be any differ­ ent from a funeral service followed by a burial. Usually cremated remains are placed in some type of permanent receptacle, or um, before being committed to a final resting place. The um may be buried, placed in an indoor or outdoor mausoleum or columbarium, or interred in a special um garden that many cemeteries provide for cremated remains. Funeral directors handle the paperwork involved with the person’s death, such as submitting papers to State authorities so that a formal certificate of death may be issued and copies distributed to the heirs. They may help family members apply for veterans’ burial benefits, and notify the Social Security Administration of the death. Also, funeral directors may apply for the transfer of any pensions, insur­ ance policies, or annuities on behalf of survivors. Funeral directors also prearrange funerals. Increasingly, they ar­ range funerals in advance of need to provide peace of mind by en­ suring that the client’s wishes will be taken care of in a way that is satisfying to the person and to those who will survive. Most funeral homes are small, family-run businesses, and the funeral directors are either owner-operators or employees of the operation. Funeral directors, therefore, are responsible for the suc­ cess and the profitability of their businesses. Directors keep records of expenses, purchases, and services rendered; prepare and send invoices for services; prepare and submit reports for unemployment insurance; prepare Federal, State, and local tax forms; and prepare itemized bills for customers. Funeral directors increasingly are us­ ing computers for billing, bookkeeping, and marketing. Some are beginning to use the Internet to communicate with clients who are preplanning their funerals, or to assist clients by developing elec­ tronic obituaries and guestbooks. Directors strive to foster a coop­ erative spirit and friendly attitude among employees and a compas­ sionate demeanor towards the families. A growing number of funeral directors also are involved in helping individuals adapt to changes in their lives following a death through aftercare services or sup­ port group activities. Most funeral homes have a chapel, one or more viewing rooms, a casket-selection room, and a preparation room. An increasing number also have a crematory on the premises. Equipment may include a hearse, a flower car, limousines, and, sometimes, an am­ bulance. Funeral homes usually stock a selection of caskets and urns for families to purchase or rent.  46 Occupational Outlook Handbook Working Conditions Funeral directors often work long, irregular hours, and the occupa­ tion can be highly stressful. Many work on an on-call basis, be­ cause they may be needed to remove remains in the middle of the night. Shiftwork sometimes is necessary because funeral home hours include evenings and weekends. In smaller funeral homes, working hours vary, but in larger homes employees usually work 8 hours a day, 5 or 6 days a week. Funeral directors occasionally come into contact with the remains of persons who had contagious diseases, but the possibility of in­ fection is remote if strict health regulations are followed. To show proper respect and consideration for the families and the dead, funeral directors must dress appropriately. The profes­ sion usually requires short, neat haircuts and trim beards, if any, for men. Suits, ties, and dresses are customary for a conservative look. Employment Funeral directors held about 24,000 jobs in 2002. Eleven percent were self-employed. Nearly all worked in the death care services industry. Training, Other Qualifications, and Advancement Funeral directors must be licensed in all States. Licensing laws vary from State to State, but most require applicants to be 21 years old, have 2 years of formal education that includes studies in mortu­ ary science, serve a 1-year apprenticeship, and pass a qualifying examination. After becoming licensed, new funeral directors may join the staff of a funeral home. Funeral directors who embalm must be licensed in all States, and some States issue a single license for funeral directors who embalm. In States that have separate li­ censing requirements, most people in the field obtain both licenses. Persons interested in a career as a funeral director should contact their State licensing board for specific requirements. College programs in mortuary science usually last from 2 to 4 years; the American Board of Funeral Service Education accredits about 50 mortuary science programs. A small number of commu­ nity and junior colleges offer 2-year programs, and a few colleges and universities offer both 2-year and 4-year programs. Mortuary science programs include courses in anatomy, physiology, pathol­ ogy, embalming techniques, restorative art, business management, accounting and use of computers in funeral home management, and client services. They also include courses in the social sciences and legal, ethical, and regulatory subjects, such as psychology, grief  Funeral directors explain, arrange, and handle the details offunerals with clients.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  counseling, oral and written communication, funeral service law, business law, and ethics. Many State and national associations offer continuing education programs designed for licensed funeral directors. These programs address issues in communications, counseling, and management. More than 30 States have requirements that funeral directors re­ ceive continuing education credits in order to maintain their licenses. Apprenticeships must be completed under the direction of an experienced and licensed funeral director. Depending on State regu­ lations, apprenticeships last from 1 to 3 years and may be served before, during, or after mortuary school. Apprenticeships provide practical experience in all facets of the funeral service, from em­ balming to transporting remains. State board licensing examinations vary, but they usually consist of written and oral parts and include a demonstration of practical skills. Persons who want to work in another State may have to pass the examination for that State; however, some States have reciproc­ ity arrangements and will grant licenses to funeral directors from another State without further examination. High school students can start preparing for a career as a funeral director by taking courses in biology and chemistry and participat­ ing in public speaking or debate clubs. Part-time or summer jobs in funeral homes consist mostly of maintenance and cleanup tasks, such as washing and polishing limousines and hearses, but these tasks can help students to become familiar with the operation of funeral homes. Important personal traits for funeral directors are composure, tact, and the ability to communicate easily with the public. They also should have the desire and ability to comfort people in a time of sorrow. Advancement opportunities are best in larger funeral homes— funeral directors may earn promotions to higher paying positions such as branch manager or general manager. Some directors even­ tually acquire enough money and experience to establish their own funeral home businesses. Job Outlook Employment opportunities for funeral directors are expected to be good, particularly for those who also embalm. However, mortuary science graduates may have to relocate to find jobs. Employment of funeral directors is projected to increase more slowly than the average for all occupations through the year 2012, as the population and the number of deaths increase. The need to replace funeral directors who retire or leave the occupation for other reasons will account for more job openings than will employment growth. Typically, a number of mortuary science graduates leave the profession shortly after becoming licensed funeral directors to pursue other career interests, and this trend is expected to continue. Also, funeral directors are older, on average, than workers in most other occupations, and should be retiring in greater numbers be­ tween 2002 and 2012. Earnings Median annual earnings for funeral directors were $43,380 in 2002. The middle 50 percent earned between $33,540 and $58,140. The lowest 10 percent earned less than $24,950, and the top 10 percent more than $84,060. Salaries of funeral directors depend on the number of years of experience in funeral service, the number of services performed, the number of facilities operated, the area of the country, the size of the community, and the level of formal education. Funeral direc­ tors in large cities earn more than their counterparts in small towns and rural areas.  Management and Business and Financial Operations Occupations 47 Related Occupations The job of a funeral director requires tact, discretion, and compas­ sion when dealing with grieving people. Others who need these qualities include members of the clergy, social workers, psycholo­ gists, physicians and surgeons, and other health-diagnosing and -treating practitioners. Sources of Additional Information For a list of accredited mortuary science programs and information on the funeral service profession, write to: >- The National Funeral Directors Association, 13625 Bishop’s Dr., Brookfield, WI 53005. Internet: http://www.nfda.org  For information about college programs in mortuary science, scholarships, and funeral service as a career, contact: >■ The American Board of Funeral Service Education, 38 Florida Ave., Portland, ME 04103. Internet: http://www.abfse.org/index.html  Human Resources, Training, and Labor Relations Managers and Specialists (0*NET 11-3040.00, 11-3041.00, 11-3042.00, 11-3049.99, 13-1071.01, 13-1071.02, 13-1072.00, 13-1073.00, 13-1079.99)  Significant Points •  Entry-level jobs are filled by college graduates who have majored in a wide range of fields.  •  For many specialized jobs, previous experience is an asset; for more advanced positions, including those of managers, arbitrators, and mediators, it is essential.  •  Keen competition for jobs is expected due to the abundant supply of qualified college graduates and experienced workers.  Nature of the Work Attracting the most qualified employees and matching them to the jobs for which they are best suited is important for the success of any organization. However, many enterprises are too large to per­ mit close contact between top management and employees. Human resources, training, and labor relations managers and specialists pro­ vide this link. In the past, these workers have been associated with performing the administrative function of an organization, such as handling employee benefits questions or recruiting, interviewing, and hiring new personnel in accordance with policies and require­ ments that have been established in conjunction with top manage­ ment. Today’s human resources workers juggle these tasks and, increasingly, consult top executives regarding strategic planning. They have moved from behind-the-scenes staff work to leading the company in suggesting and changing policies. Senior management is recognizing the importance of the human resources department to their financial success. In an effort to improve morale and productivity and to limit job turnover, they also help their firms effectively use employee skills, provide training opportunities to enhance those skills, and boost employees’ satisfaction with their jobs and working conditions. Although some jobs in the human resources field require only lim­ ited contact with people outside the office, dealing with people is an essential part of the job.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  In a small organization, a human resources generalist may handle all aspects of human resources work, and thus require a broad range of knowledge. The responsibilities of human resources generalists can vary widely, depending on their employer’s needs. In a large corporation, the top human resources executive usually develops and coordinates personnel programs and policies. (Executives are included in the Handbook statement on top executives.) These poli­ cies usually are implemented by a director or manager of human resources and, in some cases, a director of industrial relations. The director of human resources may oversee several depart­ ments, each headed by an experienced manager who most likely specializes in one personnel activity, such as employment, com­ pensation, benefits, training and development, or employee rela­ tions. Employment and placement managers oversee the hiring and separation of employees and supervise various workers, including equal employment opportunity specialists and recruitment special­ ists. Employment, recruitment, and placement specialists recruit and place workers. Recruiters maintain contacts within the community and may travel extensively, often to college campuses, to search for promis­ ing job applicants. Recruiters screen, interview, and sometimes test applicants. They also may check references and extend job offers. These workers must be thoroughly familiar with the organization and its personnel policies in order to discuss wages, working condi­ tions, and promotional opportunities with prospective employees. They also must keep informed about equal employment opportu­ nity (EEO) and affirmative action guidelines and laws, such as the Americans with Disabilities Act. EEO officers, representatives, or affirmative action coordinators handle EEO matters in large organizations. They investigate and resolve EEO grievances, examine corporate practices for possible violations, and compile and submit EEO statistical reports. Employer relations representatives, who usually work in gov­ ernment agencies, maintain working relationships with local em­ ployers and promote the use of public employment programs and services. Similarly, employment interviewers—whose many job titles include personnel consultants, personnel development special­ ists, and human resources coordinators—help to match employers with qualified jobseekers. Compensation, benefits, and job analysis specialists conduct programs for employers and may specialize in specific areas such as position classifications or pensions. Job analysts, sometimes called position classifiers, collect and examine detailed informa­ tion about job duties in order to prepare job descriptions. These descriptions explain the duties, training, and skills that each job requires. Whenever a large organization introduces a new job or reviews existing jobs, it calls upon the expert knowledge of the job analyst. Occupational analysts conduct research, usually in large firms. They are concerned with occupational classification systems and study the effects of industry and occupational trends upon worker relationships. They may serve as technical liaison between the firm and other firms, government, and labor unions. Establishing and maintaining a firm’s pay system is the princi­ pal job of the compensation manager. Assisted by staff specialists, compensation managers devise ways to ensure fair and equitable pay rates. They may conduct surveys to see how their firm’s rates compare with others and to see that the firm’s pay scale complies with changing laws and regulations. In addition, compensation managers often oversee their firm’s performance evaluation system, and they may design reward systems such as pay-for-performance plans.  48 Occupational Outlook Handbook Employee benefits managers and specialists handle the company’s employee benefits program, notably its health insurance and pension plans. Expertise in designing and administering ben­ efits programs continues to take on importance as employer-pro­ vided benefits account for a growing proportion of overall compen­ sation costs, and as benefit plans increase in number and complexity. For example, pension benefits might include savings and thrift, profit-sharing, and stock ownership plans; health benefits might in­ clude long-term catastrophic illness insurance and dental insurance. Familiarity with health benefits is a top priority for employee ben­ efits managers and specialists, as more firms struggle to cope with the rising cost of healthcare for employees and retirees. In addition to health insurance and pension coverage, some firms offer em­ ployees life and accidental death and dismemberment insurance, disability insurance, and relatively new benefits designed to meet the needs of a changing workforce, such as parental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Ben­ efits managers must keep abreast of changing Federal and State regu­ lations and legislation that may affect employee benefits. Employee assistance plan managers, also called employee wel­ fare managers, are responsible for a wide array of programs cover­ ing occupational safety and health standards and practices; health promotion and physical fitness, medical examinations, and minor health treatment, such as first aid; plant security; publications; food service and recreation activities; carpooling and transportation pro­ grams, such as transit subsidies; employee suggestion systems; childcare and elder care; and counseling services. Childcare and elder care are increasingly important due to growth in the number of dual-income households and the elderly population. Counseling may help employees deal with emotional disorders, alcoholism, or marital, family, consumer, legal, and financial problems. Some employers offer career counseling as well. In large firms, certain programs, such as those dealing with security and safety, may be in separate departments headed by other managers. Training and development managers and specialists conduct and supervise training and development programs for employees. In­ creasingly, management recognizes that training offers a way of developing skills, enhancing productivity and quality of work, and building worker loyalty to the firm. Training is widely accepted as a method of improving employee morale, but this is only one of the reasons for its growing importance. Other factors include the com­ plexity of the work environment, the rapid pace of organizational and technological change, and the growing number of jobs in fields that constantly generate new knowledge. In addition, advances in learning theory have provided insights into how adults learn, and how training can be organized most effectively for them. Training managers provide worker training either in the class­ room or onsite. This includes setting up teaching materials prior to the class, involving the class, and issuing completion certificates at the end of the class. Training specialists plan, organize, and direct a wide range of training activities. Trainers respond to corporate and worker ser­ vice requests. They consult with onsite supervisors regarding avail­ able performance improvement services and conduct orientation sessions and arrange on-the-job training for new employees. They help rank-and-file workers maintain and improve their job skills, and possibly prepare for jobs requiring greater skill. They help supervisors improve their interpersonal skills in order to deal effec­ tively with employees. They may set up individualized training plans to strengthen an employee’s existing skills or teach new ones.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training specialists in some companies set up leadership or execu­ tive development programs among employees in lower level posi­ tions. These programs are designed to develop potential executives to replace those leaving the organization. Trainers also lead pro­ grams to assist employees with transitions due to mergers and ac­ quisitions, as well as technological changes. In government-sup­ ported training programs, training specialists function as case managers. They first assess the training needs of clients, then guide them through the most appropriate training method. After training, clients may either be referred to employer relations representatives or receive job placement assistance. Planning and program development is an important part of the training specialist’s job. In order to identify and assess training needs within the firm, trainers may confer with managers and su­ pervisors or conduct surveys. They also periodically evaluate train­ ing effectiveness. Depending on the size, goals, and nature of the organization, trainers may differ considerably in their responsibilities and in the methods they use. Training methods include on-the-job training; operating schools that duplicate shop conditions for trainees prior to putting them on the shop floor; apprenticeship training; class­ room training; and electronic learning, which may involve interac­ tive Internet-based training, multimedia programs, distance learn­ ing, satellite training, other computer-aided instructional technologies, videos, simulators, conferences, and workshops. An organization’s director of industrial relations forms labor policy, oversees industrial labor relations, negotiates collective bar­ gaining agreements, and coordinates grievance procedures to handle complaints resulting from management disputes with unionized employees. The director of industrial relations also advises and col­ laborates with the director of human resources, other managers, and members of their staff, because all aspects of personnel policy— such as wages, benefits, pensions, and work practices—may be in­ volved in drawing up a new or revised union contract. Labor relations managers and their staffs implement industrial labor relations programs. When a collective bargaining agreement is up for negotiation, labor relations specialists prepare information for management to use during negotiation, a process that requires the specialist to be familiar with economic and wage data and to have extensive knowledge of labor law and collective bargaining trends. The labor relations staff interprets and administers the con­ tract with respect to grievances, wages and salaries, employee wel­ fare, healthcare, pensions, union and management practices, and other contractual stipulations. As union membership continues to decline in most industries, industrial relations personnel are work­ ing more often with employees who are not members of a labor union. Dispute resolution—attaining tacit or contractual agreements— has become increasingly important as parties to a dispute attempt to avoid costly litigation, strikes, or other disruptions. Dispute resolu­ tion also has become more complex, involving employees, man­ agement, unions, other firms, and government agencies. Specialists involved in dispute resolution must be highly knowledgeable and experienced, and often report to the director of industrial relations. Conciliators, or mediators, advise and counsel labor and manage­ ment to prevent and, when necessary, resolve disputes over labor agreements or other labor relations issues. Arbitrators, sometimes called umpires or referees, decide disputes that bind both labor and management to specific terms and conditions of labor contracts. Labor relations specialists who work for unions perform many of the same functions on behalf of the union and its members.  Management and Business and Financial Operations Occupations 49 Other emerging specialties include those of international hu­ man resources managers, who handle human resources issues re­ lated to a company’s foreign operations, and human resources in­ formation system specialists, who develop and apply computer programs to process personnel information, match jobseekers with job openings, and handle other personnel matters. Working Conditions Personnel work usually takes place in clean, pleasant, and comfort­ able office settings. Arbitrators and mediators may work out of their homes. Many human resources, training, and labor relations managers and specialists work a standard 35- to 40-hour week. However, longer hours might be necessary for some workers—for example, labor relations managers and specialists, arbitrators, and mediators—when contract agreements are being prepared and ne­ gotiated. Although most human resources, training, and labor relations managers and specialists work in the office, some travel extensively. For example, recruiters regularly attend professional meetings and visit college campuses to interview prospective employees; arbitra­ tors and mediators often must travel to the site chosen for negotia­ tions. Employment Human resources, training, and labor relations managers and spe­ cialists held about 677,000 jobs in 2002. The following tabulation shows the distribution of jobs by occupational specialty: Training and development specialists.............................................. Human resources managers............................................................... Employment, recruitment, and placement specialists................. Compensation, benefits, and job analysis specialists..................  209,000 202,000 175,000 91,000  Human resources, training, and labor relations managers and specialists were employed in virtually every industry. About 3,800 specialists were self-employed, working as consultants to public and private employers. The private sector accounted for almost 8 out of 10 salaried jobs, including 11 percent in professional, scientific, and technical ser­ vices and 10 percent each in manufacturing industries; health care and social assistance; finance and insurance firms; and administra­ tive and support services.  HHH  Keen competition for jobs as human resources workers is expected due to the abundant supply of qualified college graduates and experienced workers.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Government employed about 18 percent of human resources managers and specialists. They handled the recruitment, interview­ ing, job classification, training, salary administration, benefits, em­ ployee relations, and other matters related to the Nation’s public employees. Training, Other Qualifications, and Advancement Because of the diversity of duties and levels of responsibility, the educational backgrounds of human resources, training, and labor relations managers and specialists vary considerably. In filling en­ try-level jobs, many employers seek college graduates who have majored in human resources, personnel administration, or indus­ trial and labor relations. Other employers look for college gradu­ ates with a technical or business background or a well-rounded lib­ eral arts education. Many colleges and universities have programs leading to a de­ gree in personnel, human resources, or labor relations. Some offer degree programs in personnel administration or human resources management, training and development, or compensation and ben­ efits. Depending on the school, courses leading to a career in hu­ man resources management may be found in departments of busi­ ness administration, education, instructional technology, organizational development, human services, communication, or public administration, or within a separate human resources insti­ tution or department. Because an interdisciplinary background is appropriate in this field, a combination of courses in the social sciences, business, and behavioral sciences is useful. Some jobs may require a more tech­ nical or specialized background in engineering, science, finance, or law, for example. Most prospective human resources specialists should take courses in compensation, recruitment, training and de­ velopment, and performance appraisal, as well as courses in prin­ ciples of management, organizational structure, and industrial psy­ chology. Other relevant courses include business administration, public administration, psychology, sociology, political science, eco­ nomics, and statistics. Courses in labor law, collective bargaining, labor economics, labor history, and industrial psychology also pro­ vide a valuable background for the prospective labor relations spe­ cialist. As in many other fields, knowledge of computers and infor­ mation systems also is useful. An advanced degree is increasingly important for some jobs. Many labor relations jobs require graduate study in industrial or labor relations. A strong background in industrial relations and law is highly desirable for contract negotiators, mediators, and arbitra­ tors; in fact, many people in these specialties are lawyers. A back­ ground in law also is desirable for employee benefits managers and others who must interpret the growing number of laws and regula­ tions. A master’s degree in human resources, labor relations, or in business administration with a concentration in human resources management is highly recommended for those seeking general and top management positions. For many specialized jobs in the human resources field, previ­ ous experience is an asset; for more advanced positions, including those of managers as well as arbitrators and mediators, it is essen­ tial. Many employers prefer entry-level workers who have gained some experience through an internship or work-study program while in school. Personnel administration and human resources develop­ ment require the ability to work with individuals as well as a com­ mitment to organizational goals. This field also demands other skills that people may develop elsewhere—using computers, selling, teach­ ing, supervising, and volunteering, among others. The field offers clerical workers opportunities for advancement to professional po­  50 Occupational Outlook Handbook sitions. Responsible positions sometimes are filled by experienced individuals from other fields, including business, government, edu­ cation, social services administration, and the military. The human resources field demands a range of personal quali­ ties and skills. Human resources, training, and labor relations man­ agers and specialists must speak and write effectively. The growing diversity of the workforce requires that they work with or supervise people with various cultural backgrounds, levels of education, and experience. They must be able to cope with conflicting points of view, function under pressure, and demonstrate discretion, integ­ rity, fair-mindedness, and a persuasive, congenial personality. The duties given to entry-level workers will vary, depending on whether the new workers have a degree in human resource manage­ ment, have completed an internship, or have some other type of human resources-related experience. Entry-level employees com­ monly learn the profession by performing administrative duties— helping to enter data into computer systems, compiling employee handbooks, researching information for a supervisor, or answering the phone and handling routine questions. Entry-level workers of­ ten enter formal or on-the-job training programs in which they learn how to classify jobs, interview applicants, or administer employee benefits. They then are assigned to specific areas in the personnel department to gain experience. Later, they may advance to a mana­ gerial position, overseeing a major element of the personnel pro­ gram—compensation or training, for example. Exceptional human resources workers may be promoted to di­ rector of personnel or industrial relations, which can eventually lead to a top managerial or executive position. Others may join a con­ sulting firm or open their own business. A Ph.D. is an asset for teaching, writing, or consulting work. Most organizations specializing in human resources offer classes intended to enhance the marketable skills of their members. Some organizations offer certification programs, which are signs of com­ petence and can enhance one’s advancement opportunities. For example, the International Foundation of Employee Benefit Plans confers a designation to persons who complete a series of collegelevel courses and pass exams covering employee benefit plans. The Society for Human Resources Management has two levels of certi­ fication; both require experience and a passing score on a compre­ hensive exam. Job Outlook The abundant supply of qualified college graduates and experienced workers should create keen competition for jobs. Overall employ­ ment of human resources, training, and labor relations managers and specialists is expected to grow faster than the average for all occupations through 2012. In addition to openings due to growth, many job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. Legislation and court rulings setting standards in various areas— occupational safety and health, equal employment opportunity, wages, health, pensions, and family leave, among others—will in­ crease demand for human resources, training, and labor relations experts. Rising healthcare costs should continue to spur demand for specialists to develop creative compensation and benefits pack­ ages that firms can offer prospective employees. Employment of labor relations staff, including arbitrators and mediators, should grow as firms become more involved in labor relations, and attempt to resolve potentially costly labor-management disputes out of court. Additional job growth may stem from increasing demand for spe­ cialists in international human resources management and human resources information systems.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Demand may be particularly strong for certain specialists. For example, employers are expected to devote greater resources to jobspecific training programs in response to the increasing complexity of many jobs, the aging of the workforce, and technological ad­ vances that can leave employees with obsolete skills. This should result in particularly strong demand for training and development specialists. In addition, increasing efforts throughout industry to recruit and retain quality employees should create many jobs for employment, recruitment, and placement specialists. Among industries, firms involved in management, consulting, and employment services should offer many job opportunities, as businesses increasingly contract out personnel functions or hire per­ sonnel specialists on a temporary basis in order to deal with the increasing cost and complexity of training and development pro­ grams. Demand also should increase in firms that develop and ad­ minister complex employee benefits and compensation packages for other organizations. Demand for human resources, training, and labor relations manag­ ers and specialists also are governed by the staffing needs of the firms for which they work. A rapidly expanding business is likely to hire additional human resources workers—either as permanent employees or consultants—while a business that has experienced a merger or a reduction in its workforce will require fewer human resources workers. Also, as human resources management becomes increasingly important to the success of an organization, some small and medium-size businesses that do not have a human resources department may assign employees various human resources duties together with other unrelated responsibilities. In any particular firm, the size and the job duties of the human resources staff are deter­ mined by the firm’s organizational philosophy and goals, skills of its workforce, pace of technological change, government regula­ tions, collective bargaining agreements, standards of professional practice, and labor market conditions. Job growth could be limited by the widespread use of computer­ ized human resources information systems that make workers more productive. Like that of other workers, employment of human re­ sources, training, and labor relations managers and specialists, par­ ticularly in larger firms, may be adversely affected by corporate downsizing, restructuring, and mergers. Earnings Annual salary rates for human resources workers vary according to occupation, level of experience, training, location, and size of the firm, and whether they are union members. Median annual earn­ ings of human resources managers were $64,710 in 2002. The middle 50 percent earned between $47,420 and $88,100. The low­ est 10 percent earned less than $36,280, and the highest 10 percent earned more than $114,300. Median annual earnings in the indus­ tries employing the largest numbers of human resources managers in 2002 were: Management of companies and enterprises.................................... Local government................................................................................ General medical and surgical hospitals.......................................... Depository credit intermediation......................................................  $77,690 65,590 61,720 60,030  Median annual earnings of training and development specialists were $42,800 in 2002. The middle 50 percent earned between $32,050 and $56,890. The lowest 10 percent earned less than $24,760, and the highest 10 percent earned more than $72,530. Median annual earnings in the industries employing the largest num­ bers of training and development specialists in 2002 were:  Management and Business and Financial Operations Occupations 51 Management of companies and enterprises................................... Insurance carriers................................................................................. Local government................................................................................ State government.................................................................................. Federal Government............................................................................  $49,660 45,830 43,740 40,960 37,560  Median annual earnings of employment, recruitment, and place­ ment specialists were $39,410 in 2002. The middle 50 percent earned between $30,390 and $54,130. The lowest 10 percent earned less than $24,440, and the highest 10 percent earned more than $73,940. Median annual earnings in 2002 were $34,850 in employment ser­ vices, the industry employing the largest numbers of these special­ ists. Median annual earnings of compensation, benefits, and job analysis specialists were $45,100 in 2002. The middle 50 percent earned between $35,000 and $57,230. The lowest 10 percent earned less than $28,160, and the highest 10 percent earned more than $72,250. Median annual earnings in 2002 were $48,870 in local government, the industry employing the largest numbers of these specialists. According to a 2003 salary survey conducted by the National Association of Colleges and Employers, bachelor’s degree candi­ dates majoring in human resources, including labor relations, re­ ceived starting offers averaging $35,400 a year. The average salary for human resources managers employed by the Federal Government was $66,886 in 2003; for employee relations specialists, $63,345; for labor relations specialists, $72,915; and for employee development specialists, $68,735. Salaries were slightly higher in areas where the prevailing local pay level was higher. There are no formal entry-level require­ ments for managerial positions. Applicants must possess a suit­ able combination of educational attainment, experience, and record of accomplishment. Related Occupations All human resources occupations are closely related. Other work­ ers with skills and expertise in interpersonal relations include coun­ selors, education administrators, public relations specialists, law­ yers, psychologists, social and human service assistants, and social workers. Sources of Additional Information For information about human resource management careers and certification, contact: >■ Society for Human Resource Management, 1800 Duke St., Alexandria, VA 22314. Internet: http://www.shrm.org  For information about careers in employee training and devel­ opment and certification, contact: >- American Society for Training and Development, 1640 King St., Box 1443, Alexandria, VA 22313. Internet: http://www.astd.org  For information about careers and certification in employee com­ pensation and benefits, contact: >• International Foundation of Employee Benefit Plans, 18700 W. Bluemound Rd., P.O. Box 69, Brookfield, WI 53008-0069. Internet: http://www.ifebp.org  For information about academic programs in industrial relations, write to: >• Industrial Relations Research Association, 121 Labor and Industrial Relations, University of Illinois, 504 E. Armory, Champaign, IL 61820. Internet: http://www.irra.uiuc.edu  Information about personnel careers in the healthcare industry is available from: >• American Society for Healthcare Human Resources Administration, One North Franklin, 31st Floor, Chicago, IL 60606. Internet: http://www.ashhra.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Industrial Production Managers (0*NET 11-3051.00)  Significant Points •  While there is no standard preparation, a college degree is required.  •  Applicants with a college degree in industrial engineering, management, or business administration, and particularly those with an undergraduate engineering degree and a master’s degree in business administration or industrial management, enjoy the best job prospects.  •  Projected slower-than-average growth in employment reflects increasing productivity.  Nature of the Work Industrial production managers coordinate the resources and activi­ ties required to produce millions of goods every year in the United States. Although their duties vary from plant to plant, industrial production managers share many of the same major responsibili­ ties. These responsibilities include production scheduling, staff­ ing, procurement and maintenance of equipment, quality control, inventory control, and the coordination of production activities with those of other departments. The primary mission of industrial production managers is plan­ ning the production schedule within budgetary limitations and time constraints. They do this by analyzing the plant’s personnel and capital resources to select the best way of meeting the production quota. Industrial production managers determine, often using math­ ematical formulas, which machines will be used, whether new ma­ chines need to be purchased, whether overtime or extra shifts are necessary, and what the sequence of production will be. They moni­ tor the production run to make sure that it stays on schedule and correct any problems that may arise. As production techniques have evolved beyond traditional mass assembly lines, industrial production managers have adapted to “lean” production techniques. Many manufacturers have adopted lean production techniques, while some others use a combination of lean and mass production techniques. In a traditional assembly line, each worker is responsible for only a small portion of the as­ sembly, repeating that task on every product. Lean production em­ ploys teams to build and assemble products in stations or cells. When companies use stations, one worker may work alone with handtools and various parts to complete a large portion of the assembly pro­ cess. Rather than specializing in a specific task, workers are ca­ pable of performing all jobs within a team. Without the constraints of the traditional assembly line, companies can be more flexible in their production process, more easily changing production levels on different product lines. The increased flexibility of lean manufacturing enables indus­ trial production managers to experiment with ways of improving the assembly and manufacturing process. As companies strive to minimize inventory, they want to maintain only a limited stock of finished products. Employing manufacturing cells and stations, companies can more quickly react to changes in customer demand so that limited inventories will not get too low. Industrial production managers also must monitor product stan­ dards. Inspecting samples of finished goods and recording defects enables managers to statistically analyze quality control problems.  52 Occupational Outlook Handbook While traditional quality control programs reacted only to problems that reached a certain significant level, newer management tech­ niques and programs, such as ISO 9000, Total Quality Manage­ ment (TQM), or Six Sigma, emphasize continuous quality improve­ ment. If the problem relates to the quality of work performed in the plant, the manager may implement better training programs or reorganize the manufacturing process, often based upon the sug­ gestions of employee teams. If the cause is substandard materials or parts from outside suppliers, companies may work with their suppliers to improve their quality. Because the work of many departments is related, managers work closely with heads of other departments such as sales, pro­ curement, and logistics to plan and implement company goals, policies, and procedures. For example, the production manager works with the procurement department to ensure that plant inven­ tories are maintained at their optimal level. This is vital to a firm’s operation because maintaining the inventory of materials neces­ sary for production ties up the firm’s financial resources, yet in­ sufficient quantities cause delays in production. A breakdown in communications between the production manager and the purchas­ ing department can cause slowdowns and a failure to meet produc­ tion schedules. Just-in-time production techniques have reduced inventory levels, making constant communication among the man­ ager, suppliers, and purchasing departments even more important. Computers play an integral part in this coordination. They also are used to provide up-to-date information on inventory, the status of work in progress, and quality standards. Production managers usually report to the plant manager or the vice president for manufacturing, and may act as liaison between executives and first-line supervisors. (Information about top ex­ ecutives may be found elsewhere in the Handbook.) In many plants, one production manager is responsible for all aspects of produc­ tion. In large plants with several operations—aircraft assembly, for example—there are managers in charge of each operation, such as machining, assembly, or finishing. Working Conditions Most industrial production managers divide their time between pro­ duction areas and their offices. While in the production area, they must follow established health and safety practices and wear the required protective clothing and equipment. The time in the office, which often is located near production areas, usually is spent meet­ ing with subordinates or other department managers, analyzing pro­ duction data, and writing and reviewing reports. Most industrial production managers work more than 40 hours a week, especially when production deadlines must be met. In facilities that operate around-the-clock, managers often work late shifts and may be called at any hour to deal with emergencies. This could mean going to the plant to resolve the problem, regard­ less of the hour, and staying until the situation is under control. Dealing with production workers as well as superiors when work­ ing under the pressure of production deadlines or emergency situ­ ations can be stressful. Corporate restructuring has eliminated levels of management and support staff, thus shifting more responsibili­ ties to production managers and compounding this stress. Employment Industrial production managers held about 182,000 jobs in 2002. Almost all are employed in manufacturing industries, including the plastics product manufacturing, printing and related support activi­ ties, motor vehicle parts manufacturing, and semiconductor and other  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  jf-i  Industrial production managers often work near the factory floor. electronic component manufacturing industries. Production man­ agers work in all parts of the country, but jobs are most plentiful in areas where manufacturing is concentrated. Training, Other Qualifications, and Advancement Because of the diversity of manufacturing operations and job re­ quirements, there is no standard preparation for this occupation. However, a college degree is required, even for those who have worked their way up through the ranks. Many industrial produc­ tion managers have a college degree in business administration, man­ agement, industrial technology, or industrial engineering. Others have a master’s degree in industrial management or business ad­ ministration (MBA). Some are former production-line supervisors who have been promoted. Although many employers prefer candi­ dates with a business or engineering background, some companies hire well-rounded liberal arts graduates. As production operations become more sophisticated, increas­ ing numbers of employers are looking for candidates with graduate degrees in industrial management or business administration. Com­ bined with an undergraduate degree in engineering, either of these graduate degrees is considered particularly good preparation. Man­ agers who do not have graduate degrees often take courses in deci­ sion sciences, which provide them with techniques and mathemati­ cal formulas that can be used to maximize efficiency and improve quality. Companies also are placing greater importance on a candidate’s interpersonal skills. Because the job requires the abil­ ity to compromise, persuade, and negotiate, successful production managers must be well-rounded and have excellent communication skills. Those who enter the field directly from college or graduate school often are unfamiliar with the firm’s production process. As a result, they may spend their first few months in the company’s training program. These programs familiarize trainees with the production process, company policies, and the requirements of the job. In larger companies, they also may include assignments to other departments, such as purchasing and accounting. A number of companies hire college graduates as first-line supervisors and later promote them. Some industrial production managers have worked their way up through the ranks, perhaps after having worked as first-line super­ visors. These workers already have an intimate knowledge of the production process and the firm’s organization. To be selected for promotion, however, they must obtain a college degree, must dem­ onstrate leadership qualities, and usually must take company-spon­ sored courses in management skills and communication techniques.  Management and Business and Financial Operations Occupations 53 In addition to formal training, industrial production managers must keep informed of new production technologies and manage­ ment practices. Many belong to professional organizations and at­ tend trade shows at which new equipment is displayed; they also attend industry conferences and conventions at which changes in production methods and technological advances are discussed. Some take courses to become certified in various quality and manage­ ment systems. Industrial production managers with a proven record of superior performance may advance to plant manager or vice president for manufacturing. Others transfer to jobs with more responsibilities at larger firms. Opportunities also exist for consultants. (For more information, see the statement on management analysts elsewhere in the Handbook.) Job Outlook Employment of industrial production managers is expected to grow more slowly than the average for all occupations through 2012. However, a number of job openings will stem from the need to re­ place workers who transfer to other occupations or leave the labor force. Applicants with a college degree in industrial engineering, management, or business administration, and particularly those with an undergraduate engineering degree and a master’s degree in busi­ ness administration or industrial management, enjoy the best job prospects. Employers also are likely to seek candidates who have excellent communication skills and who are personable, flexible, and eager to enhance their knowledge and skills through ongoing training. Although manufacturing output is projected to rise, increases in productivity among industrial production managers and the work­ ers they supervise will limit growth in employment of these manag­ ers. Productivity gains among managers will stem from the increas­ ing use of computers for scheduling, planning, and coordination. Productivity gains among workers will limit both the number of employees in factories and the need for supervision. In addition, more emphasis on quality in the production process has redistrib­ uted some of the production manager’s oversight responsibilities to supervisors and workers on the production line. Because produc­ tion managers are so essential to the efficient operation of a plant, they have not been greatly affected by recent efforts to flatten man­ agement structures. Nevertheless, this trend has led production managers to assume more responsibilities and has limited the cre­ ation of more employment opportunities. Earnings Median annual earnings for industrial production managers were $67,320 in 2002. The middle 50 percent earned between $50,710 and $88,880. The lowest 10 percent earned less than $38,980, and the highest 10 percent earned more than $114,750. Median annual earnings in the manufacturing industries employing the largest num­ bers of industrial production managers in 2002 were: Management of companies and enterprises................................... Semiconductor and other electronic component manufacturing.................................................................................. Motor vehicle parts manufacturing.................................................. Plastics products manufacturing....................................................... Printing and related support activities.............................................  $89,570 78,070 73,570 60,720 59,270  Related Occupations Industrial production managers oversee production staff and equip­ ment, ensure that production goals and quality standards are being met, and implement company policies. Occupations requiring simi­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  lar training and skills are engineers, management analysts, opera­ tions research analysts, top executives, and industrial engineers, in­ cluding health and safety. Sources of Additional Information For more information on industrial production management, con­ tact local manufacturers or schools with programs in industrial man­ agement.  Lodging Managers (0*NET 11-9081.00)  Significant Points •  As in other hotel occupations, night and weekend work is common.  •  Employment is projected to grow more slowly than  •  average. College graduates with degrees in hotel or restaurant management should have the best job opportunities.  Nature of the Work A comfortable room, good food, and a helpful staff can make being away from home an enjoyable experience for both vacationing fami­ lies and business travelers. While most lodging managers work in traditional hotels and motels, some work in other lodging establish­ ments, such as camps, inns, boardinghouses, dude ranches, and rec­ reational resorts. In full-service hotels, lodging managers help thenguests have a pleasant stay by providing many of the comforts of home, including cable television, fitness equipment, and voice mail, as well as specialized services such as health spas. For business travelers, lodging managers often schedule available meeting rooms and electronic equipment, including slide projectors and fax ma­ chines. Lodging managers are responsible for keeping their establish­ ments efficient and profitable. In a small establishment with a lim­ ited staff, the manager may oversee all aspects of operations. How­ ever, large hotels may employ hundreds of workers, and the general manager usually is aided by a number of assistant managers as­ signed to the various departments of the operation. In hotels of every size, managerial duties vary significantly by job title. General managers, for example, have overall responsibility for the operation of the hotel. Within guidelines established by the owners of the hotel or executives of the hotel chain, the general manager sets room rates, allocates funds to departments, approves expenditures, and establishes expected standards for guest service, decor, housekeeping, food quality, and banquet operations. Man­ agers who work for chains also may organize and staff a newly built hotel, refurbish an older hotel, or reorganize a hotel or motel that is not operating successfully. In order to fill entry-level service and clerical jobs in hotels, some managers attend career fairs. Resident managers live in hotels and are on call 24 hours a day to resolve problems or emergencies. In general, though, they typi­ cally work an 8- to 10 hour day and oversee the day-to-day opera­ tions of the hotel. In many hotels, the general manager also is the resident manager. Executive housekeepers ensure that guest rooms, meeting and banquet rooms, and public areas are clean, orderly, and well main­ tained. They also train, schedule, and supervise the work of house­ keepers, inspect rooms, and order cleaning supplies.  54 Occupational Outlook Handbook Front office managers coordinate reservations and room assign­ ments, as well as train and direct the hotel’s front desk staff. They ensure that guests are treated courteously, complaints and problems are resolved, and requests for special services are carried out. Front office managers may adjust charges posted on a customer’s bill. Convention services managers coordinate the activities of vari­ ous departments in larger hotels to accommodate meetings, con­ ventions, and special events. They meet with representatives of groups or organizations to plan the number of rooms to reserve, the desired configuration of the meeting space, and the banquet ser­ vices. During the meeting or event, they resolve unexpected prob­ lems and monitor activities to ensure that hotel operations conform to the expectations of the group. Assistant managers help run the day-to-day operations of the hotel. In large hotels, they may be responsible for activities such as personnel, accounting, office administration, marketing and sales, purchasing, security, maintenance, and pool, spa, or recreational facilities. In smaller hotels, these duties may be combined into one position. Assistant managers may adjust charges on a hotel guest’s bill when a manager is unavailable. Computers are used extensively by lodging managers and their assistants to keep track of guests’ bills, reservations, room assign­ ments, meetings, and special events. In addition, computers are used to order food, beverages, and supplies, as well as to prepare reports for hotel owners and top-level managers. Managers work with computer specialists to ensure that the hotel’s computer sys­ tem functions properly. Should the hotel’s computer system fail, managers must continue to meet the needs of hotel guests and staff. Working Conditions Because hotels are open around the clock, night and weekend work is common. Many lodging managers work more than 40 hours per week. Managers who live in the hotel usually have regular work schedules, but they may be called to work at any time. Some em­ ployees of resort hotels are managers during the busy season and have other duties during the rest of the year. Lodging managers sometimes experience the pressures of coor­ dinating a wide range of functions. Conventions and large groups of tourists may present unusual problems. Moreover, dealing with irate guests can be stressful. The job can be particularly hectic for front office managers during check-in and check-out time. Com­ puter failures can further complicate an already busy time. Employment Lodging managers held about 69,000 jobs in 2002. Self-employed managers—primarily owners of small hotels and motels—held about 50 percent of these jobs. Companies that manage hotels and motels under contract employed some managers. TVaining, Other Qualifications, and Advancement Hotels increasingly emphasize specialized training. Postsecondary training in hotel or restaurant management is preferred for most hotel management positions, although a college liberal arts degree may be sufficient when coupled with related hotel experience. In­ ternships or part-time or summer work are an asset to students seek­ ing a career in hotel management. The experience gained and the contacts made with employers can greatly benefit students after graduation. Most bachelor’s degree programs include work-study opportunities. Community colleges, junior colleges, and some universities of­ fer associate’s, bachelor’s, and graduate degree programs in hotel   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Lodging managers establish standards for guest services. or restaurant management. Combined with technical institutes, vo­ cational and trade schools, and other academic institutions, over 800 educational facilities have programs leading to formal recogni­ tion in hotel or restaurant management. Hotel management pro­ grams include instruction in hotel administration, accounting, eco­ nomics, marketing, housekeeping, food service management and catering, and hotel maintenance engineering. Computer training also is an integral part of hotel management training, due to the wide­ spread use of computers in reservations, billing, and housekeeping management. Additionally, over 450 high schools in 45 States offer the Lodg­ ing Management Program created by the Educational Institute of the American Hotel and Lodging Association. This is a two-year program offered to high school juniors and seniors, which teaches management principles and leads to a professional certification called the “Certified Rooms Division Specialist”. Many colleges and uni­ versities grant participants credit towards a post-secondary degree in hotel management. Lodging managers must be able to get along with many differ­ ent people, even in stressful situations. They must be able to solve problems and concentrate on details. Initiative, self-discipline, ef­ fective communication skills, and the ability to organize and direct the work of others also are essential for managers at all levels. In the past, many managers were promoted from the ranks of front desk clerks, housekeepers, waiters, chefs, and hotel sales work­ ers. Although some employees still advance to hotel management positions without education beyond high school, postsecondary edu­ cation is preferred. Restaurant management training or experience also is a good background for entering hotel management, because the success of a hotel’s food service and beverage operations often is important to the profitability of the entire establishment. Graduates of hotel or restaurant management programs usually start as trainee assistant managers. Some large hotels sponsor spe­ cialized on-the-job management training programs that allow train­ ees to rotate among various departments and gain a thorough knowl­ edge of the hotel’s operation. Other hotels may help finance formal training in hotel management for outstanding employees. Newly built hotels, particularly those without established on-the-job train­ ing programs, often prefer to hire applicants who have hotel man­ agement experience. Large hotel and motel chains may offer better opportunities for advancement than small, independently owned establishments, but relocation every several years often is necessary for advancement.  Management and Business and Financial Operations Occupations 55 The large chains have more extensive career ladder programs and offer managers the opportunity to transfer to another hotel or motel in the chain or to the central office. Career advancement can be accelerated by the completion of certification programs offered by various associations. These programs usually require a combina­ tion of course work, examinations, and experience. For example, outstanding lodging managers may advance to higher level man­ ager positions. (For more information, see the statement on top executives elsewhere in the Handbook.) Job Outlook Employment of lodging managers is expected to grow more slowly than the average for all occupations through 2012. Additional job openings are expected to occur as experienced managers transfer to other occupations or leave the labor force, in part because of the long hours and stressful working conditions. Job opportunities are expected to be best for persons with college degrees in hotel or restaurant management. Increasing business travel and domestic and foreign tourism will drive employment growth of lodging managers. Managerial jobs are not expected to grow as rapidly as the hotel industry overall, however. As the industry consolidates, many chains and franchises will acquire independently owned establishments and increase the numbers of economy-class rooms to accommodate bargain-con­ scious guests. Economy hotels offer clean, comfortable rooms and front desk services without costly extras such as restaurants and room service. Because there are not as many departments in these hotels, fewer managers will be needed. Similarly, the increasing number of extended-stay hotels will temper demand for managers because, in these establishments, management is not required to be available 24 hours a day. In addition, front desk clerks increasingly are assuming some responsibilities previously reserved for manag­ ers, further limiting the employment growth of managers and their assistants. Additional demand for managers is expected in suite hotels, be­ cause some guests—especially business customers—are willing to pay higher prices for rooms with kitchens and suites that provide the space needed to conduct meetings. In addition, large full-ser­ vice hotels—offering restaurants, fitness centers, large meeting rooms, and play areas for children, among other amenities—will continue to provide many trainee and managerial opportunities. Earnings Median annual earnings of lodging managers were $33,970 in 2002. The middle 50 percent earned between $26,110 and $44,670. The lowest 10 percent earned less than $20,400, while the highest 10 percent earned more than $59,420. Salaries of lodging managers vary greatly according to their re­ sponsibilities and the segment of the hotel industry in which they are employed, as well as the location and region where the hotel is located. Managers may earn bonuses of up to 25 percent of their basic salary in some hotels and also may be furnished with lodging, meals, parking, laundry, and other services. In addition to provid­ ing typical benefits, some hotels offer profit-sharing plans and edu­ cational assistance to their employees. Related Occupations Other occupations concerned with organizing and directing a busi­ ness in which customer service is the cornerstone of their success include food service managers, gaming managers, sales worker su­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  pervisors, and property, real estate, and community association managers. Sources of Additional Information For information on careers and scholarships in hotel management, contact >- American Hotel and Lodging Association, 1201 New York Ave. NW., #600, Washington, DC 20005-3931.  Information on careers in the lodging industry and on profes­ sional development and training programs may be obtained from: >- Educational Institute of the American Hotel and Lodging Association, 800 N. Magnolia Ave., Suite 1800, Orlando, FL 32853-1126. Internet: http://www.ei-ahla.org  For information on educational programs, including correspon­ dence courses, in hotel and restaurant management, write to: >- International Council on Hotel, Restaurant, and Institutional Education, 2613 North Parham Rd., 2nd Floor, Richmond, VA 23294-4442. Internet: http://www.chrie.org  Information on careers in housekeeping management may be obtained from: >- International Executive Housekeepers Association, Inc., 1001 Eastwind Dr., Suite 301, Westerville, OH 43081. Internet: http://www.ieha.org  Medical and Health Services Managers (0*NET 11-9111.00)  Significant Points •  Earnings of medical and health services managers are high, but long work hours are common.  •  A master’s degree is the standard credential for most positions, although a bachelor’s degree is adequate for some entry-level positions in smaller facilities.  •  Employment will grow fastest in practitioners’ offices and in home healthcare services.  •  Applicants with work experience in healthcare and strong business and management skills should have the best opportunities.  Nature of the Work Healthcare is a business and, like every other business, it needs good management to keep it running smoothly. The occupation, medical and health services manager, encompasses all individuals who plan, direct, coordinate, and supervise the delivery of healthcare. Medical and health services managers include specialists and gen­ eralists. Specialists are in charge of specific clinical departments or services, while generalists manage or help to manage an entire fa­ cility or system. The structure and financing of healthcare is changing rapidly. Future medical and health services managers must be prepared to deal with evolving integrated healthcare delivery systems, techno­ logical innovations, an increasingly complex regulatory environ­ ment, restructuring of work, and an increased focus on preventive care. They will be called upon to improve efficiency in healthcare facilities and the quality of the healthcare provided. Increasingly, medical and health services managers will work in organizations in which they must optimize efficiency of a variety of interrelated ser­ vices—for example, those ranging from inpatient care to outpatient followup care.  56 Occupational Outlook Handbook Large facilities usually have several assistant administrators to aid the top administrator and to handle daily decisions. Assistant administrators may direct activities in clinical areas such as nurs­ ing, surgery, therapy, medical records, or health information. (Man­ agers in nonhealth areas, such as administrative services, computer and information systems, finance, and human resources, are not in­ cluded in this statement. For information about them, see the state­ ments on management occupations elsewhere in the Handbook.) In smaller facilities, top administrators handle more of the de­ tails of daily operations. For example, many nursing home admin­ istrators manage personnel, finance, facility operations, and admis­ sions, and have a larger role in resident care. Clinical managers have more specific responsibilities than do generalists, and have training or experience in a specific clinical area. For example, directors of physical therapy are experienced physical therapists, and most health information and medical record administrators have a bachelor’s degree in health information or medical record administration. Clinical managers establish and implement policies, objectives, and procedures for their departments; evaluate personnel and work; develop reports and budgets; and co­ ordinate activities with other managers. In group medical practices, managers work closely with physi­ cians. Whereas an office manager may handle business affairs in small medical groups, leaving policy decisions to the physicians themselves, larger groups usually employ a full-time administrator to help formulate business strategies and coordinate day-to-day busi­ ness. A small group of 10 to 15 physicians might employ 1 adminis­ trator to oversee personnel matters, billing and collection, budget­ ing, planning, equipment outlays, and patient flow. A large prac­ tice of 40 to 50 physicians may have a chief administrator and several assistants, each responsible for different areas. Medical and health services managers in managed care settings perform functions similar to those of their counterparts in large group practices, except that they may have larger staffs to manage. In addition, they may do more work in the areas of community out­ reach and preventive care than do managers of a group practice. Some medical and health services managers oversee the activi­ ties of a number of facilities in health systems. Such systems may contain both inpatient and outpatient facilities and offer a wide range of patient services. Working Conditions Most medical and health services managers work long hours. Fa­ cilities such as nursing care facilities and hospitals operate around the clock, and administrators and managers may be called at all hours to deal with problems. They also may travel to attend meet­ ings or inspect satellite facilities. Some managers work in comfortable, private offices; others share space with other managers or staff. They may spend considerable time walking, to consult with coworkers. Employment Medical and health services managers held about 244,000 jobs in 2002. About 37 percent worked in hospitals, and another 17 per­ cent worked in offices of physicians or nursing care facilities. The remainder worked mostly in home healthcare services, Federal gov­ ernment healthcare facilities, ambulatory facilities run by State and local governments, outpatient care centers, insurance carriers, and community care facilities for the elderly.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  '  ...  . .  Medical and health services managers plan, direct, coordinate, and supervise the delivery of healthcare. Training, Other Qualifications, and Advancement Medical and health services managers must be familiar with man­ agement principles and practices. A master’s degree in health ser­ vices administration, long-term care administration, health sciences, public health, public administration, or business administration is the standard credential for most generalist positions in this field. However, a bachelor’s degree is adequate for some entry-level po­ sitions in smaller facilities and at the departmental level within healthcare organizations. Physicians’ offices and some other fa­ cilities may substitute on-the-job experience for formal education. For clinical department heads, a degree in the appropriate field and work experience may be sufficient for entry. However, a master’s degree in health services administration or a related field may be required to advance. For example, nursing service administrators usually are chosen from among supervisory registered nurses with administrative abilities and a graduate degree in nursing or health services administration. Bachelor’s, master’s, and doctoral degree programs in health administration are offered by colleges, universities, and schools of public health, medicine, allied health, public administration, and business administration. In 2003, 67 schools had accredited pro­ grams leading to the master’s degree in health services administra­ tion, according to the Accrediting Commission on Education for Health Services Administration. Some graduate programs seek students with undergraduate de­ grees in business or health administration; however, many graduate programs prefer students with a liberal arts or health profession back­ ground. Candidates with previous work experience in healthcare also may have an advantage. Competition for entry to these pro­ grams is keen, and applicants need above-average grades to gain admission. Graduate programs usually last between 2 and 3 years. They may include up to 1 year of supervised administrative experi­ ence, and course work in areas such as hospital organization and management, marketing, accounting and budgeting, human resources administration, strategic planning, health economics, and health in­ formation systems. Some programs allow students to specialize in one type of facility—hospitals, nursing care facilities, mental health facilities, or medical groups. Other programs encourage a general­ ist approach to health administration education. New graduates with master’s degrees in health services admin­ istration may start as department managers or as staff employees. The level of the starting position varies with the experience of the  Management and Business and Financial Operations Occupations 57 applicant and the size of the organization. Hospitals and other health facilities offer postgraduate residencies and fellowships, which usu­ ally are staff positions. Graduates from master’s degree programs also take jobs in large group medical practices, clinics, mental health facilities, nursing care corporations, and consulting firms. Graduates with bachelor’s degrees in health administration usu­ ally begin as administrative assistants or assistant department heads in larger hospitals. They also may begin as department heads or assistant administrators in small hospitals or nursing care facilities. All States and the District of Columbia require nursing care fa­ cility administrators to have a bachelor’s degree, pass a licensing examination, complete a State-approved training program, and pur­ sue continuing education. A license is not required in other areas of medical and health services management. Medical and health services managers often are responsible for millions of dollars’ worth of facilities and equipment and hundreds of employees. To make effective decisions, they need to be open to different opinions and good at analyzing contradictory informa­ tion. They must understand finance and information systems, and be able to interpret data. Motivating others to implement their decisions requires strong leadership abilities. Tact, diplomacy, flex­ ibility, and communication skills are essential because medical and health services managers spend most of their time interacting with others. Medical and health services managers advance by moving into more responsible and higher paying positions, such as assistant or associate administrator, or by moving to larger facilities. Job Outlook Employment of medical and health services managers is expected to grow faster than the average for all occupations through 2012, as the health services industry continues to expand and diversify. Op­ portunities will be especially good in offices of physicians and other health practitioners, home healthcare services, and outpatient care centers. Applicants with work experience in the healthcare field and strong business and management skills should have the best opportunities. Hospitals will continue to employ the most medical and health services managers over the projection period. However, the num­ ber of new jobs created in hospitals is expected to increase at a slower rate than in many other industries, as hospitals focus on con­ trolling costs and increasing the utilization of clinics and other al­ ternate care sites. Medical and health services managers with expe­ rience in large facilities will enjoy the best job opportunities, as hospitals become larger and more complex. Employment will grow the fastest in practitioners’ offices and in home healthcare agencies. Many services previously provided in hospitals will continue to shift to these sectors, especially as medical technologies improve. Demand in medical group practice management will grow as medical group practices become larger and more complex. Medical and health services managers will need to deal with the pressures of cost containment and financial accountability, as well as with the increased focus on preventive care. They also will become more involved in trying to improve the health of their communities. Managers with specialized expe­ rience in a particular field, such as reimbursement, should have good opportunities. Medical and health services managers also will be employed by healthcare management companies who provide management services to hospitals and other organizations, as well as to specific  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  departments such as emergency, information management systems, managed care contract negotiations, and physician recruiting. Earnings Median annual earnings of medical and health services managers were $61,370 in 2002. The middle 50 percent earned between $47,910 and $80,150.The lowest 10 percent earned less than $37,460, and the highest 10 percent earned more than $109,080. Median annual earnings in the industries employing the largest num­ bers of medical and health services managers in 2002 were as fol­ lows: General medical and surgical hospitals.......................................... Home health care services................................................................. Outpatient care centers........................................................................ Offices of physicians........................................................................... Nursing care facilities.........................................................................  $65,950 56,320 55,650 55,600 55,320  Earnings of medical and health services managers vary by type and size of the facility, as well as by level of responsibility. For example, the Medical Group Management Association reported that, in 2002, median salaries for administrators were $78,258 in practices with fewer than 7 physicians; $92,727 in practices with 7 to 25 physicians; and $125,988 in practices with more than 26 phy­ sicians. According to a survey by Modern Healthcare magazine, median annual compensation in 2003 for managers of selected clinical de­ partments was $71,800 in respiratory care, $79,000 in physical therapy, $84,500 in home healthcare, $85,100 in laboratory services, $89,100 in rehabilitation services, $89,500 in medical imaging/di­ agnostic radiology, and $98,400 in nursing services. Salaries also varied according to size of facility and geographic region. Related Occupations Medical and health services managers have training or experience in both health and management. Other occupations requiring knowl­ edge of both fields are insurance underwriters and social and com­ munity service managers. Sources of Additional Information Information about undergraduate and graduate academic programs in this field is available from: >• Association of University Programs in Health Administration, 730 11 th St. NW., Washington, DC 20001-4510. Internet: http://www.aupha.org  For a list of accredited graduate programs in medical and health services administration, contact: >- Accrediting Commission on Education for Health Services Administra­ tion, 730 11th St. NW., Washington, DC 20001-4510. Internet: http://www.acehsa.org  For information about career opportunities in long-term care administration, contact: > American College of Health Care Administrators, 300 N. Lee St., Suite 301, Alexandria, VA 22314. Internet: http://www.achca.org  For information about career opportunities in medical group prac­ tices and ambulatory care management, contact: >• Medical Group Management Association, 104 Inverness Terrace East, Englewood, CO 80112-5306.  For information about medical and healthcare office managers, contact: ► Professional Association of Health Care Office Management, 461 East Ten Mile Rd., Pensacola, FL 32534-9712.  58 Occupational Outlook Handbook  Property, Real Estate, and Community Association Managers (0*NET 11-9141.00)  Significant Points •  • •  Many enter the occupation as onsite managers of apartment buildings, office complexes, or community associations, or as employees of property management firms or community association management companies. Forty-six percent of property, real estate, and community association managers are self-employed. Opportunities should be best for those with college degrees in business administration or related fields, as well as professional designations.  Nature of the Work Buildings can be homes, stores, or offices to those who use them. To businesses and investors, properly managed real estate is a po­ tential source of income and profits, and, to homeowners, it is a way to preserve and enhance resale values. Property, real estate, and community association managers maintain and increase the value of real estate investments. Property and real estate managers over­ see the performance of income-producing commercial or residen­ tial properties, and ensure that real estate investments achieve their expected revenues. Community association managers manage the common property and services of condominiums, cooperatives, and planned communities through their homeowners’ or community as­ sociations. When owners of apartments, office buildings, or retail or indus­ trial properties lack the time or expertise needed for day-to-day management of their real estate investments or homeowners’ asso­ ciations, they often hire a property or real estate manager, or com­ munity association manager. The manager is employed either di­ rectly by the owner or indirectly through a contract with a property management firm. Generally, property and real estate managers handle the finan­ cial operations of the property, ensuring that rent is collected and that mortgages, taxes, insurance premiums, payroll, and maintenance bills are paid on time. In community associations, although homeowners pay no rent and pay their own real estate taxes and mortgages, community association managers must collect associa­ tion dues. Some property managers, called asset property manag­ ers, supervise the preparation of financial statements and periodi­ cally report to the owners on the status of the property, occupancy rates, dates of lease expirations, and other matters. Often, property managers negotiate contracts for janitorial, se­ curity, groundskeeping, trash removal, and other services. When contracts are awarded competitively, managers solicit bids from sev­ eral contractors and recommend to the owners which bid to accept. They monitor the performance of contractors and investigate and resolve complaints from residents and tenants when services are not properly provided. Managers also purchase supplies and equip­ ment for the property and make arrangements with specialists for repairs that cannot be handled by regular property maintenance staff. In addition to these duties, property managers must understand and comply with provisions of legislation, such as the Americans with Disabilities Act and the Federal Fair Housing Amendment Act,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  as well as local fair housing laws. They must ensure that their rent­ ing and advertising practices are not discriminatory and that the property itself complies with all of the local. State, and Federal regu­ lations and building codes. Onsite property managers are responsible for day-to-day opera­ tions for one piece of property, such as an office building, shopping center, community association, or apartment complex. To ensure that the property is safe and properly maintained, onsite managers routinely inspect the grounds, facilities, and equipment to deter­ mine if repairs or maintenance are needed. They meet not only with current residents when handling requests for repairs or trying to resolve complaints, but also with prospective residents or tenants to show vacant apartments or office space. Onsite managers also are responsible for enforcing the terms of rental or lease agreements, such as rent collection, parking and pet restrictions, and termination-of-lease procedures. Other important duties of onsite manag­ ers include keeping accurate, up-to-date records of income and ex­ penditures from property operations and submitting regular expense reports to the asset property manager or owners. Property managers who do not work onsite act as a liaison be­ tween the onsite manager and the owner. They also market vacant space to prospective tenants through the use of a leasing agent or by advertising or other means, and establish rental rates in accordance with prevailing local economic conditions. Some property and real estate managers, often called real estate asset managers, act as the property owners’ agent and adviser for the property. They plan and direct the purchase, development, and disposition of real estate on behalf of the business and investors. These managers focus on long-term strategic financial planning rather than on day-to-day operations of the property. When deciding to acquire property, real estate asset managers take several factors into consideration, such as property values, taxes, zoning, population growth, transportation, and traffic volume and patterns. Once a site is selected, they negotiate contracts for the purchase or lease of the property, securing the most beneficial terms. Real estate asset managers periodically review their company’s real estate holdings and identify properties that are no longer financially profitable. They then negotiate the sale of or terminate the lease on such properties. Property and real estate managers who work for homebuilders, real estate developers, and land development companies acquire land and plan construction of shopping centers, houses, apartments, of­ fice buildings, or industrial parks. They negotiate with representa­ tives of local governments, other businesses, community and pub­ lic interest groups, and public utilities to eliminate obstacles to the development of land and to gain support for a planned project. It sometimes takes years to win approval for a project and, in the pro­ cess, managers may have to modify plans for the project many times. Once cleared to proceed with a project, managers may help to ne­ gotiate short-term loans to finance the construction of the project, and later negotiate long-term permanent mortgage loans. They then help to choose, assist, and advise the architectural firms that draw up detailed plans and the construction companies that build the project. In many respects, the work of community association managers parallels that of property managers. They collect monthly assess­ ments, prepare financial statements and budgets, negotiate with con­ tractors, and help to resolve complaints. In other respects, how­ ever, the work of these managers differs from that of other residential property and real estate managers. Community association manag­ ers interact on a daily basis with homeowners and other residents,  Management and Business and Financial Operations Occupations 59 rather than with renters. Hired by the volunteer board of directors of the association, they administer the daily affairs, and oversee the maintenance of property and facilities that the homeowners own and use jointly through the association. They also assist the board and owners in complying with association and government rules and regulations. Some associations encompass thousands of homes and employ their own onsite staff and managers. In addition to administering the associations’ financial records and budget, managers may be responsible for the operation of community pools, golf courses, and community centers, and for the maintenance of landscaping and parking areas. Community association managers also may meet with the elected boards of directors to discuss and resolve legal issues or disputes that may affect the owners, as well as to review any proposed changes or improvements by homeowners to their properties, to make sure that they comply with community guide­ lines.  investigating problems reported by tenants. Property and real es­ tate managers frequently visit the properties they oversee, some­ times on a daily basis when contractors are doing major repair or renovation work. Real estate asset managers may spend time away from home while traveling to company real estate holdings or search­ ing for properties to acquire. Property, real estate, and community association managers of­ ten must attend evening meetings with residents, property owners, community association boards of directors, or civic groups. Not surprisingly, many managers put in long workweeks, especially before financial and tax reports are due. Some apartment managers are required to live in the apartment complexes where they work so that they are available to handle any emergency that occurs, even when they are off duty. They usually receive compensatory time off for working nights or weekends. Many apartment managers receive time off during the week so that they are available on week­ ends to show apartments to prospective residents.  Working Conditions Offices of most property, real estate, and community association managers are clean, modern, and well lighted. However, many managers spend a major portion of their time away from their desks. Onsite managers, in particular, may spend a large portion of their workday away from their office, visiting the building engineer, show­ ing apartments, checking on the janitorial and maintenance staff, or  Employment Property, real estate, and community association managers held about 293,000 jobs in 2002. Forty percent worked for real estate agents and brokers, lessors of real estate, or property management firms. Others worked for real estate development companies, gov­ ernment agencies that manage public buildings, and corporations with extensive holdings of commercial properties. Forty-six per­ cent of property, real estate, and community association managers were self-employed.  The perfect site.  '  >  Property, real estate, and community association managers manage, maintain, and increase the value of real estate investments.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement Most employers prefer to hire college graduates for property man­ agement positions. Entrants with degrees in business administra­ tion, accounting, finance, real estate, public administration, or re­ lated fields are preferred, but those with degrees in the liberal arts also may qualify. Good speaking, writing, computer, and financial skills, as well as an ability to tactfully deal with people, are essen­ tial in all areas of property management. Many people enter property management as onsite managers of apartment buildings, office complexes, or community associations, or as employees of property management firms or community asso­ ciation management companies. As they acquire experience work­ ing under the direction of a property manager, they may advance to positions with greater responsibility at larger properties. Those who excel as onsite managers often transfer to assistant property man­ ager positions in which they can acquire experience handling a broad range of property management responsibilities. Previous employment as a real estate sales agent may be an asset to onsite managers because it provides experience useful in show­ ing apartments or office space. In the past, those with backgrounds in building maintenance have advanced to onsite manager positions on the strength of their knowledge of building mechanical systems, but this is becoming less common as employers place greater em­ phasis on administrative, financial, and communication abilities for managerial jobs. Although many people entering jobs such as assistant property manager do so by having previously gained onsite management experience, employers increasingly hire inexperienced college graduates with bachelor’s or master’s degrees in business admin­ istration, accounting, finance, or real estate for these positions. As­ sistants work closely with a property manager and learn how to prepare budgets, analyze insurance coverage and risk options, mar­ ket property to prospective tenants, and collect overdue rent  60 Occupational Outlook Handbook payments. In time, many assistants advance to property manager positions. The responsibilities and compensation of property, real estate, and community association managers increase as they manage more and larger properties. Most property managers are responsible for several properties at a time. As their careers advance, they gradu­ ally are entrusted with larger properties that are more complex to manage. Many specialize in the management of one type of prop­ erty, such as apartments, office buildings, condominiums, coopera­ tives, homeowner associations, or retail properties. Managers who excel at marketing properties to tenants may specialize in managing new properties, while those who are particularly knowledgeable about buildings and their mechanical systems might specialize in the management of older properties requiring renovation or more frequent repairs. Some experienced managers open their own prop­ erty management firms. Persons most commonly enter real estate asset manager jobs by transferring from positions as property managers or real estate bro­ kers. Real estate asset managers must be good negotiators, adept at persuading and handling people, and good at analyzing data in or­ der to assess the fair market value of property or its development potential. Resourcefulness and creativity in arranging financing are essential for managers who specialize in land development. Many employers encourage attendance at short-term formal train­ ing programs conducted by various professional and trade associa­ tions active in the real estate field. Employers send managers to these programs to improve their management skills and expand their knowledge of specialized subjects, such as the operation and main­ tenance of building mechanical systems, enhancement of property values, insurance and risk management, personnel management, business and real estate law, community association risks and li­ abilities, tenant relations, communications, and accounting and fi­ nancial concepts. Managers also participate in these programs to prepare themselves for positions of greater responsibility in prop­ erty management. Completion of these programs, related job expe­ rience, and a satisfactory score on a written examination lead to certification, or the formal award of a professional designation, by the sponsoring association. (Some organizations offering such pro­ grams are listed as sources of additional information at the end of this statement.) In addition to these qualifications, some associa­ tions require their members to adhere to a specific code of ethics. In some States, community association managers must be licensed. Managers of public housing subsidized by the Federal Govern­ ment are required to be certified, but many property, real estate, and community association managers, who work with all types of prop­ erty, choose to earn a professional designation voluntarily because it represents formal recognition of their achievements and status in the occupation. Real estate asset managers who buy or sell prop­ erty are required to be licensed by the State in which they practice. Job Outlook Employment of property, real estate, and community association managers is projected to increase about as fast as the average for all occupations through the year 2012. Additional job openings are expected to occur as managers transfer to other occupations or leave the labor force. Opportunities should be best for those with a col­ lege degree in business administration, real estate, or a related field, and for those who attain a professional designation. Job growth among onsite property managers in commercial real estate is expected to accompany the projected expansion of the real estate and rental and leasing industry. An increase in the Nation’s  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  stock of apartments, houses, and offices also should require more property managers. Developments of new homes increasingly are being organized with community or homeowner associations that provide community services and oversee jointly owned common areas, requiring professional management. To help properties be­ come more profitable or to enhance the resale values of homes, more commercial and residential property owners are expected to place their investments in the hands of professional managers. The changing demographic composition of the population also should create more jobs for property, real estate, and community association managers. The number of older people will grow dur­ ing the 2000-12 projection period, increasing the need for various types of suitable housing, such as assisted-living facilities and re­ tirement communities. Accordingly, there will be demand for prop­ erty and real estate managers to operate these facilities, and espe­ cially for those who have a background in the operation and administrative aspects of running a health unit. Earnings Median annual earnings of salaried property, real estate, and com­ munity association managers were $36,880 in 2002. The middle 50 percent earned between $25,470 and $56,000 a year. The lowest 10 percent earned less than $17,450, and the highest 10 percent earned more than $86,650 a year. Median annual earnings of salaried prop­ erty, real estate, and community association managers in the largest employing industries in 2002 were as follows: Local government................................................................................ Offices of real estate agents and brokers........................................ Activities related to real estate........................................................... Lessors of real estate............................................................................  $50,340 37,820 35,750 31,190  Many resident apartment managers and onsite association man­ agers receive the use of an apartment as part of their compensation package. Managers often are reimbursed for the use of their per­ sonal vehicles, and managers employed in land development often receive a small percentage of ownership in the projects that they develop. Related Occupations Property, real estate, and community association managers plan, organize, staff, and manage the real estate operations of businesses. Workers who perform similar functions in other fields include ad­ ministrative services managers, education administrators, food ser­ vice managers, lodging managers, medical and health services man­ agers, real estate brokers and sales agents, and urban and regional planners. Sources of Additional Information General information about education and careers in property man­ agement is available from: >- Institute of Real Estate Management, 430 N. Michigan Ave., Chicago, 1L 60611. Internet: http://www.irem.org  For information on careers and certification programs in com­ mercial property management, contact: >■ Building Owners and Managers Institute, 1521 Ritchie Hwy., Arnold, MD 21012.  For information on careers and professional designation and cer­ tification programs in residential property management and com­ munity association management, contact: >- Community Associations Institute, 225 Reinekers Ln., Suite 300, Alex­ andria, VA 22314. Internet: http://www.caionline.org >■ National Board of Certification for Community Association Managers, P.O. Box 25037, Alexandria, VA 22313. Internet: http://www.nbccam.org  Management and Business and Financial Operations Occupations 61  Purchasing Managers, Buyers, and Purchasing Agents (0*NET 11-3061.00, 13-1021.00, 13-1022.00, 13-1023.00)  Significant Points • •  •  •  Forty-two percent are employed in wholesale trade or manufacturing establishments. Some firms promote qualified employees to these positions, while other employers recruit college graduates; regardless of academic preparation, new employees need 1 to 5 years to learn the specifics of their employer’s business. Overall employment is expected to be slower than the average, but the projected change in employment varies significantly by occupational specialty. Opportunities should be best for those with a college degree.  Nature of the Work Purchasing managers, buyers, and purchasing agents seek to obtain the highest quality merchandise at the lowest possible purchase cost for their employers. In general, purchasers buy goods and services for use by their company or organization, whereas buyers typically buy items for resale. Purchasers and buyers determine which com­ modities or services are best, choose the suppliers of the product or service, negotiate the lowest price, and award contracts that ensure that the correct amount of the product or service is received at the appropriate time. In order to accomplish these tasks successfully, purchasing managers, buyers, and purchasing agents study sales records and inventory levels of current stock, identify foreign and domestic suppliers, and keep abreast of changes affecting both the supply of, and demand for, needed products and materials. Purchasing managers, buyers, and purchasing agents evaluate suppliers on the basis of price, quality, service support, availability, reliability, and selection. To assist them in their search for the right suppliers, they review catalogs, industry and company publications, directories, and trade journals. Much of this information is now available on the Internet. They research the reputation and history of the suppliers and may advertise anticipated purchase actions in order to solicit bids. At meetings, trade shows, conferences, and suppliers’ plants and distribution centers, they examine products and services, assess a supplier’s production and distribution capabili­ ties, and discuss other technical and business considerations that influence the purchasing decision. Once all of the necessary infor­ mation on suppliers is gathered, orders are placed and contracts are awarded to those suppliers who meet the purchaser’s needs. Con­ tracts often are for several years and may stipulate the price or a narrow range of prices, allowing purchasers to reorder as neces­ sary. Other specific job duties and responsibilities of purchasing managers, buyers, and purchasing agents vary by employer and by the type of commodities or services to be purchased. Purchasing specialists employed by government agencies or manufacturing firms usually are called purchasing directors, man­ agers, or agents; buyers or industrial buyers; or contract specialists. These workers acquire materials, parts, machines, supplies, services, and other inputs to the production of a final product. Some pur­ chasing managers specialize in negotiating and supervising supply contracts, and are called contract or supply managers. Purchasing agents and managers obtain items ranging from raw materials, fab­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ricated parts, machinery, and office supplies to construction ser­ vices and airline tickets. The flow of work—or even the entire production process—can be slowed or halted if the right materials, supplies, or equipment are not on hand when needed. To be effec­ tive, purchasing specialists must have a working technical knowl­ edge of the goods or services to be purchased. In large industrial organizations, a distinction often is drawn be­ tween the work of a buyer or purchasing agent and that of a pur­ chasing manager. Purchasing agents and buyers commonly focus on routine purchasing tasks, often specializing in a commodity or group of related commodities, such as steel, lumber, cotton, grains, fabricated metal products, or petroleum products. Purchasing agents usually track market conditions, price trends, or futures markets. Purchasing managers usually handle the more complex or critical purchases and may supervise a group of purchasing agents han­ dling other goods and services. Whether a person is titled purchas­ ing manager, buyer, or purchasing agent depends more on specific industry and employer practices than on specific job duties. Changing business practices have altered the traditional roles of purchasing or supply management specialists in many industries. For example, manufacturing companies increasingly involve work­ ers in this occupation at most stages of product development be­ cause of their ability to forecast a part’s or material’s cost, availabil­ ity, and suitability for its intended purpose. Furthermore, potential problems with the supply of materials may be avoided by consult­ ing the purchasing department in the early stages of product design. Businesses also might enter into integrated supply contracts. These contracts increase the importance of selecting the right sup­ plier, because agreements are larger in scope and longer in dura­ tion. Integrated supply incorporates all members of the supply chain, including the supplier, transportation companies, and the retailer. A major responsibility of most purchasers is to work out problems that may occur with a supplier, because the success of the relation­ ship affects the buying firm’s performance. Purchasing specialists often work closely with other employees in their own organization when deciding on purchases, an arrange­ ment sometimes called team buying. For example, before submit­ ting an order, they may discuss the design of custom-made products with company design engineers, talk about problems involving the quality of purchased goods with quality assurance engineers and production supervisors, or mention shipment problems to managers in the receiving department. Contract specialists and managers at various levels of govern­ ment award contracts for an array of items, including office and building supplies, services for the public, and construction projects. For example, they may oversee the contract for cleaning services of a government office building to verify that the work is being done on schedule and on budget, even though the cleaners are not gov­ ernment employees. They may use sealed bids to award contracts, but usually establish negotiated agreements for complex items. Often, purchasing specialists in government place solicitations for services and accept bids and offers through the Internet. Govern­ ment purchasing agents and managers must follow strict laws and regulations in their work, in order to avoid any appearance of im­ propriety. These legal requirements are occasionally changed, so agents and contract specialists must keep abreast of the latest regu­ lations. Purchasing specialists who buy finished goods for resale are employed by wholesale and retail establishments, where they com­ monly are known as buyers or merchandise managers. Wholesale and retail buyers are an integral part of a complex system of distri­ bution and merchandising that caters to the vast array of consumer needs and desires. Wholesale buyers purchase goods directly from  62 Occupational Outlook Handbook manufacturers or from other wholesale firms for resale to retail firms, commercial establishments, institutions, and other organi­ zations. In retail firms, buyers purchase goods from wholesale firms or directly from manufacturers for resale to the public. Buy­ ers largely determine which products their establishment will sell. Therefore, it is essential that they have the ability to predict what will appeal to consumers. They must constantly stay informed of the latest trends, because failure to do so could jeopardize profits and the reputation of their company. Buyers also follow ads in newspapers and other media to check competitors’ sales activities, and they watch general economic conditions to anticipate consumer buying patterns. Buyers working for large and medium-sized firms usually specialize in acquiring one or two lines of merchandise, whereas buyers working for small stores may purchase the establishment’s complete inventory. The use of private-label merchandise and the consolidation of buying departments have increased the responsibilities of retail buyers. Private-label merchandise, produced for a particular retailer, requires buyers to work closely with vendors to develop and obtain the desired product. The downsizing and consolidation of buying departments increases the demands placed on buyers because, although the amount of work remains unchanged, there are fewer people to accomplish it. The result is an increase in the workloads and levels of responsibility for all. Many merchandise managers assist in the planning and imple­ mentation of sales promotion programs. Working with merchan­ dise executives, they determine the nature of the sale and purchase items accordingly. Merchandise managers may work with adver­ tising personnel to create an ad campaign. For example, they may determine in which media the advertisement will be placed—news­ papers, direct mail, television, or some combination of all three. In addition, merchandise managers often visit the selling floor to ensure that goods are properly displayed. Often, assistant buyers are responsible for placing orders and checking shipments. Computers continue to have a major effect on the jobs of pur­ chasing managers, buyers, and purchasing agents. In manufactur­ ing and service industries, computers handle most of the routine tasks, enabling purchasing workers to concentrate mainly on the analytical and qualitative aspects of the job. Computers are used to obtain instant and accurate product and price listings, to track inventory levels, to process orders, and to help determine when to make purchases. Computers also maintain lists of bids and offers, record the history of supplier performance, and issue purchase orders. Computerized systems have dramatically simplified many of the acquisition functions and improved the efficiency of determin­ ing which products are selling. For example, cash registers connected to computers, known as point-of-sale terminals, allow organizations to maintain instant access to current sales and inventory records. The information contained therein can then be used to produce sales reports that reflect customer buying habits. The ability to find out quickly which products or combinations of products are selling well enables buyers and supply managers to increase sales and reduce costs. Buyers can gain instant access to the specifications for thousands of commodities, inventory records, and their customers’ purchase records to avoid overpaying for goods and to avoid shortages of popular goods or surpluses of goods that do not sell as well. Firms are linked with manufacturers and whole­ salers by electronic purchasing systems, the Internet, or Extranets. These systems permit faster selection, customization, and ordering of products, and they allow buyers to concentrate better on select­ ing goods and suppliers.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Working Conditions Most purchasing managers, buyers, and purchasing agents work in comfortable offices. They frequently work more than the standard 40-hour week, because of special sales, conferences, or production deadlines. Evening and weekend work also is common, before holi­ day and back-to-school seasons for those working in retail trade. Consequently, many retail firms discourage the use of vacation time during peak periods. Buyers and merchandise managers often work under great pres­ sure. Because wholesale and retail stores are so competitive, buyers need physical stamina to keep up with the fast-paced nature of their work. Many purchasing managers, buyers, and purchasing agents travel at least several days a month. Purchasers for worldwide manufac­ turing companies and large retailers, as well as buyers of high fash­ ion, may travel outside the United States. Employment Purchasing managers, buyers, and purchasing agents held about 527,000 jobs in 2002. Forty-two percent worked in the wholesale trade and manufacturing industries, and another 15 percent worked in retail trade. The remainder worked mostly in service establish­ ments, such as hospitals, or different levels of government. A small number were self-employed. The following tabulation shows the distribution of employment by occupational specialty: Purchasing agents, except wholesale, retail, and farm products............................................................................................. Wholesale and retail buyers, except farm products...................... Purchasing managers........................................................................... Purchasing agents and buyers, farm products...............................  245,000 155,000 108,000 19,000  Training, Other Qualifications, and Advancement Qualified persons may begin as trainees, purchasing clerks, expe­ diters, junior buyers, or assistant buyers. Retail and wholesale firms prefer to hire applicants who have a college degree and who are familiar with the merchandise they sell and with wholesaling and retailing practices. Some retail firms promote qualified employees to assistant buyer positions; others recruit and train college gradu­ ates as assistant buyers. Most employers use a combination of methods.  Purchasing managers, buyers, and purchasing agents work to get the best merchandise at the lowest cost.  Management and Business and Financial Operations Occupations 63 Educational requirements tend to vary with the size of the orga­ nization. Large stores and distributors, especially those in whole­ sale and retail trade, prefer applicants who have completed a bachelor’s degree program with a business emphasis. Many manu­ facturing firms put yet a greater emphasis on formal training, pre­ ferring applicants with a bachelor’s or master’s degree in engineer­ ing, business, economics, or one of the applied sciences. A master’s degree is essential for advancement to many top-level purchasing manager jobs. Regardless of academic preparation, new employees must learn the specifics of their employers’ business. Training periods vary in length, with most lasting 1 to 5 years. In wholesale and retail estab­ lishments, most trainees begin by selling merchandise, supervising sales workers, checking invoices on material received, and keeping track of stock. As they progress, retail trainees are given increased buying-related responsibilities. In manufacturing, new purchasing employees often are enrolled in company training programs and spend a considerable amount of time learning about their firm’s operations and purchasing prac­ tices. They work with experienced purchasers to learn about com­ modities, prices, suppliers, and markets. In addition, they may be assigned to the production planning department to learn about the material requirements system and the inventory system the com­ pany uses to keep production and replenishment functions working smoothly. Purchasing managers, buyers, and purchasing agents must know how to use both word processing and spreadsheet software, as well as the Internet. Other important qualities include the ability to ana­ lyze technical data in suppliers’ proposals; good communication, negotiation, and mathematical skills; knowledge of supply-chain management; and the ability to perform financial analyses. Persons who wish to become wholesale or retail buyers should be good at planning and decisionmaking and have an interest in merchandising. Anticipating consumer preferences and ensuring that goods are in stock when they are needed requires resourceful­ ness, good judgment, and self-confidence. Buyers must be able to make decisions quickly and to take risks. Marketing skills and the ability to identify products that will sell also are very important. Employers often look for leadership ability, too, because buyers spend a large portion of their time supervising assistant buyers and dealing with manufacturers’ representatives and store executives. Experienced buyers may advance by moving to a department that manages a larger volume or by becoming a merchandise man­ ager. Others may go to work in sales for a manufacturer or whole­ saler. An experienced purchasing agent or buyer may become an as­ sistant purchasing manager in charge of a group of purchasing pro­ fessionals before advancing to purchasing manager, supply man­ ager, or director of materials management. At the top levels, duties may overlap with other management functions, such as production, planning, logistics, and marketing. Regardless of industry, continuing education is essential for ad­ vancement. Many purchasers participate in seminars offered by professional societies and take college courses in supply manage­ ment. Professional certification is becoming increasingly impor­ tant, especially for those just entering the occupation. In private industry, recognized marks of experience and profes­ sional competence are the Accredited Purchasing Practitioner (APP) and Certified Purchasing Manager (CPM) designations, conferred  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  by the Institute for Supply Management, and the Certified Purchas­ ing Professional (CPP) and Certified Professional Purchasing Man­ ager (CPPM) designations, conferred by the American Purchasing Society. In Federal, State, and local government, the indications of professional competence are Certified Professional Public Buyer (CPPB) and Certified Public Purchasing Officer, (CPPO), conferred by the National Institute of Governmental Purchasing. Most of these certifications are awarded only after work-related experience and education requirements are met, and written or oral exams are suc­ cessfully completed. Job Outlook Overall employment of purchasing managers, buyers, and purchas­ ing agents is expected to be slower than the average through the year 2012. Offsetting some declines for purchasing workers in the manufacturing sector will be increases in the services sector. Com­ panies in the services sector, which have typically made purchases on an ad hoc basis, are beginning to realize that centralized pur­ chasing offices may be more efficient. Demand for purchasing workers will be limited by improving software, which has elimi­ nated much of the paperwork involved in ordering and procuring supplies, the increased use of credit cards by some employees to purchase supplies without using the services of the procurement or purchasing office, and the growing number of purchases being made electronically. Despite slower-than-average growth, some job open­ ings will result from the need to replace workers who transfer to other occupations or leave the labor force. The projected change in employment varies significantly by oc­ cupational specialty. Employment of purchasing managers is ex­ pected to grow more slowly than the average through 2012. The use of the Internet to conduct electronic commerce has made infor­ mation easier to obtain, thus increasing the productivity of purchas­ ing managers. The Internet also allows both large and small com­ panies to bid on contracts. Exclusive supply contracts and long-term contracting have allowed companies to negotiate with fewer sup­ pliers less frequently. Employment of wholesale and retail buyers, except farm prod­ ucts, also is projected to grow more slowly than the average. In the retail industry, mergers and acquisitions have forced buying depart­ ments to consolidate. In addition, larger retail stores are removing their buying departments from regional markets and centralizing them at their headquarters In contrast, employment of purchasing agents, except whole­ sale, retail, and farm products, is expected to increase about as fast as the average for all occupations through 2012. Despite the greater use of electronic transactions, purchases of complex equipment are more difficult both to automate and to transact electronically. Em­ ployment of purchasing agents and buyers, farm products, also is projected to increase about as fast as the average for all occupa­ tions, as the need to evaluate the quality and freshness of farm prod­ ucts limits the ease of making purchases electronically. Persons who have a bachelor’s degree in business should have the best chance of obtaining a buyer position in wholesale or retail trade or within government. A bachelor’s degree, combined with industry experience and knowledge of a technical field, will be an advantage for those interested in working for a manufacturing or industrial company. Government agencies and larger companies usually require a master’s degree in business or public administra­ tion for top-level purchasing positions.  64 Occupational Outlook Handbook Earnings Median annual earnings of purchasing managers were $59,890 in 2002. The middle 50 percent earned between $43,670 and $81,950 a year. The lowest 10 percent earned less than $32,330, and the highest 10 percent earned more than $108,140 a year. Median annual earnings for purchasing agents and buyers, farm products were $40,900 in 2002. The middle 50 percent earned be­ tween $31,390 and $55,440 a year. The lowest 10 percent earned less than $23,850, and the highest 10 percent earned more than $76,740 a year. Median annual earnings for wholesale and retail buyers, except farm products, were $40,780 in 2002. The middle 50 percent earned between $30,040 and $55,670 a year. The lowest 10 percent earned less than $23,270, and the highest 10 percent earned more than $76,070 a year. Median annual earnings in the industries employ­ ing the largest numbers of wholesale and retail buyers, except farm products, in 2002 were as follows: Management of companies and enterprises................................... Grocery and related product wholesalers....................................... Machinery, equipment, and supplies merchant wholesalers...... Building material and supplies dealers...........................................  $49,150 42,850 37,920 35,910  Median annual earnings for purchasing agents, except whole­ sale, retail, and farm products, were $45,090 in 2002. The middle 50 percent earned between $34,820 and $58,780 a year. The lowest 10 percent earned less than $27,950, and the highest 10 percent earned more than $73,990 a year. Median annual earnings in the industries employing the largest numbers of purchasing agents, ex­ cept of wholesale, retail, and farm products, in 2002 were as fol­ lows: Federal Government............................................................................ Aerospace product and parts manufacturing................................. Management of companies and enterprises.................................... Local government................................................................................ General medical and surgical hospitals..........................................  $58,410 52,900 50,790 42,450 34,420  Purchasing managers, buyers, and purchasing agents receive the same benefits package as other workers, including vacations, sick leave, life and health insurance, and pension plans. In addition to receiving standard benefits, retail buyers often earn cash bonuses based on their performance and may receive discounts on merchan­ dise bought from their employer. Related Occupations Workers in other occupations who need a knowledge of marketing and the ability to assess consumer demand include those in adver­ tising, marketing, promotions, and public relations, as well as sales managers; food service managers: insurance sales agents; lodging managers; sales engineers; and sales representatives, wholesale and manufacturing. Sources of Additional Information Further information about education, training, employment, and certification for purchasing careers is available from any of the fol­ lowing sources: ► American Purchasing Society, North Island Center, Suite 203, 8 East Galena Blvd., Aurora, IL 60506. Internet: http://www.american-purchasing.com > Institute for Supply Management, P.O. Box 22160, Tempe, AZ 85285­ 2160. Internet: http://www.ism.ws >- National Institute of Governmental Purchasing, Inc., 151 Spring St., Suite 300, Herndon, VA 20170-5223. Internet: http://www.nigp.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Top Executives (0*NET 11-1011.01, 11-1011.02, 11-1021.00, 11-1031.00)  Significant Points •  • • •  Top executives are among the highest paid workers; however, long hours, considerable travel, and intense pressure to succeed are common. The formal education and experience of top executives varies as widely as the nature of their responsibilities. Keen competition is expected because the prestige and high pay attract a large number of qualified applicants. Most government chief executives and legislators are elected; local government managers are appointed.  Nature of the Work All organizations have specific goals and objectives that they strive to meet. Top executives devise strategies and formulate policies to ensure that these objectives are met. Although they have a wide range of titles—such as chief executive officer, chief operating of­ ficer, board chair, president, vice president, school superintendent, county administrator, or tax commissioner—all formulate policies and direct the operations of businesses and corporations, nonprofit institutions, governments, and other organizations. A corporation’s goals and policies are established by the chief executive officer in collaboration with other top executives, who are overseen by a board of directors. In a large corporation, the chief executive officer meets frequently with subordinate executives to ensure that operations are conducted in accordance with these poli­ cies. The chief executive officer of a corporation retains overall accountability; however, a chief operating officer may be delegated several responsibilities, including the authority to oversee execu­ tives who direct the activities of various departments and imple­ ment the organization’s policies on a day-to-day basis. In publicly held and nonprofit corporations, the board of directors ultimately is accountable for the success or failure of the enterprise, and the chief executive officer reports to the board. The nature of other high-level executives’ responsibilities de­ pends upon the size of the organization. In large organizations, the duties of such executives are highly specialized. Some managers, for instance, are responsible for the overall performance of one as­ pect of the organization, such as manufacturing, marketing, sales, purchasing, finance, personnel, training, administrative services, computer and information systems, property management, trans­ portation, or the legal services department. (Some of these and other management occupations are discussed elsewhere in this sec­ tion of the Handbook.) In smaller organizations, such as independent retail stores or small manufacturers, a partner, owner, or general manager often is re­ sponsible for purchasing, hiring, training, quality control, and dayto-day supervisory duties. Chieffinancial officers direct the organization’s financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, ex­ ecute capital-raising strategies to support a firm’s expansion, and deal with mergers and acquisitions. Chief information officers are responsible for the overall tech­ nological direction of their organizations. They are increasingly in­ volved in the strategic business plan of a firm as part of the execu­ tive team. To perform effectively, they also need knowledge of  Management and Business and Financial Operations Occupations 65 administrative procedures, such as budgeting, hiring, and supervi­ sion. These managers propose budgets for projects and programs, and make decisions on staff training and equipment purchases. They hire and assign computer specialists, information technology work­ ers, and support personnel to carry out specific parts of the projects. They supervise the work of these employees, review their output, and establish administrative procedures and policies. Chief infor­ mation officers also provide organizations with the vision to master information technology as a competitive tool. Chief executives and legislators at the Federal, State, and local levels direct government activities and pass laws that affect us daily. These officials consist of the President and Vice President of the United States; members of Congress; State governors and lieuten­ ant governors; members of the State legislators; county chief executives and commissioners; city, town, and township council members; mayors; and city, county, town, and township managers. (Many small communities have top government officials who are volunteers and receive no salary. These individuals are not included in the employment or salary data cited in this Handbook statement.) Most chief executives are elected by their constituents, but many managers are hired by a local government executive, council, or commission, to whom they are directly responsible. These officials formulate and establish government policy and develop Federal, State, or local laws and regulations. Chiefexecutives, government—like their counterparts in the pri­ vate sector—have overall responsibility for the operation of their organizations. Working with legislators, they set goals and arrange programs to attain them. These executives also appoint department heads, who oversee the civil servants who carry out programs en­ acted by legislative bodies. As in the private sector, government chief executives oversee budgets and ensure that resources are used properly and that programs are carried out as planned. Chief executive officers carry out a number of other important functions, such as meeting with legislators and constituents to de­ termine the level of support for proposed programs. In addition, they often nominate citizens to boards and commissions, encourage business investment, and promote economic development in their communities. To do all of these varied tasks effectively, chief ex­ ecutives of large governments rely on a staff of highly skilled aides to research issues that concern the public. Executives who control small governmental bodies, however, often do this work by them­ selves. Legislators are elected officials who develop, enact, or amend laws. They include U.S. Senators and Representatives, State sena­ tors and representatives, and county, city, and town commissioners and council members. Legislators introduce, examine, and vote on bills to pass official legislation. In preparing such legislation, they study staff reports and hear testimony from constituents, represen­ tatives of interest groups, board and commission members, and oth­ ers with an interest in the issue under consideration. They usually must approve budgets and the appointments of nominees for leader­ ship posts whose names are submitted by the chief executive. In some bodies, the legislative council appoints the city, town, or county manager. General and operations managers plan, direct, or coordinate the operations of companies or public and private sector organizations. Their duties include formulating policies, managing daily opera­ tions, and planning the use of materials and human resources, but are too diverse and general in nature to be classified in any one area of management or administration, such as personnel, purchasing, or administrative services. In some organizations, the duties of gen­ eral and operations managers may overlap the duties of chief ex­ ecutive officers.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Working Conditions Top executives typically have spacious offices and numerous sup­ port staff. General managers in large firms or nonprofit organiza­ tions usually have comfortable offices close to those of the top ex­ ecutives to whom they report. Long hours, including evenings and weekends, are standard for most top executives and general manag­ ers, although their schedules may be flexible. Substantial travel between international, national, regional, and local offices to monitor operations and meet with customers, staff, and other executives often is required of managers and executives. Many managers and executives also attend meetings and confer­ ences sponsored by various associations. The conferences provide an opportunity to meet with prospective donors, customers, con­ tractors, or government officials and allow managers and execu­ tives to keep abreast of technological and managerial innovations. In large organizations, job transfers between local offices or sub­ sidiaries are common for persons on the executive career track. Top executives are under intense pressure to succeed; depending on the organization, this may mean earning higher profits, providing bet­ ter service, or attaining fundraising and charitable goals. Execu­ tives in charge of poorly performing organizations or departments usually find their jobs in jeopardy. The working conditions of legislators and government chief ex­ ecutives vary with the size and budget of the governmental unit. Time spent at work ranges from a few hours a week for some local  ilS'Ilil  ;L  i; j. .  Ss/'  Top executives devise strategies, formulate policies, and direct operations to ensure that an organization’s objectives are met.  66 Occupational Outlook Handbook leaders to stressful weeks of 60 or more hours for members of the U.S. Congress. Similarly, some jobs require only occasional outof-town travel, while others involve long periods away from home, such as when attending sessions of the legislature. U.S. Senators and Representatives, governors and lieutenant gov­ ernors, and chief executives and legislators in municipalities work full time, year-round, as do most county and city managers. Many State legislators work full time on government business while the legislature is in session (usually for 2 to 6 months a year or every other year) and work only part time when the legislature is not in session. Some local elected officials work a schedule that is offi­ cially designated as part time, but actually is the equivalent of a full-time schedule when unpaid duties are taken into account. In addition to their regular schedules, most chief executives are on call to handle emergencies. Employment Top executives held about 2.7 million jobs in 2002. Employment by detailed occupation was distributed as follows: General and operations managers................................................. Chief executives................................................................................ Legislators..........................................................................................  2,049,000 553,000 67,000  Top executives are found in every industry, but service-provid­ ing industries, including government, employ almost 8 out of 10. Chief executives and legislators in the Federal Government con­ sist of the 100 Senators, 435 Representatives, and the President and Vice President. State governors, lieutenant governors, legislators, chief executives, professional managers, and council and commis­ sion members of local governments make up the remainder. Government chief executives and legislators who do not hold full-time, year-round positions often continue to work in the occu­ pation that they held before being elected. Training, Other Qualifications, and Advancement The formal education and experience of top executives varies as widely as the nature of their responsibilities. Many top executives have a bachelor’s or higher degree in business administration or liberal arts. College presidents typically have a doctorate in the field in which they originally taught, and school superintendents often have a master’s degree in education administration. (For in­ formation on lower level managers in educational services, see the Handbook statement on education administrators.) A brokerage office manager needs a strong background in securities and finance, and department store executives generally have extensive experi­ ence in retail trade. Some top executives in the public sector have a background in public administration or liberal arts. Others might have a back­ ground related to their jobs. For example, a health commissioner might have a graduate degree in health services administration or business administration. (For information on lower level managers in health services, see the Handbook statement on medical and health services managers.) Because many top executive positions are filled by promoting experienced, lower level managers when an opening occurs, many top managers have been promoted from within the organization. In industries such as retail trade or transportation, for instance, it is possible for individuals without a college degree to work their way up within the company and become managers. However, many com­ panies prefer that their top executives have specialized backgrounds and, therefore, hire individuals who have been managers in other organizations.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Top executives must have highly developed personal skills. An analytical mind able to quickly assess large amounts of information and data is very important, as is the ability to consider and evaluate the interrelationships of numerous factors. Top executives also must be able to communicate clearly and persuasively. Other qualities critical for managerial success include leadership, self-confidence, motivation, decisiveness, flexibility, sound business judgment, and determination. Advancement may be accelerated by participation in company training programs that impart a broader knowledge of company policy and operations. Managers also can help their careers by be­ coming familiar with the latest developments in management tech­ niques at national or local training programs sponsored by various industry and trade associations. Managers who have experience in a particular field, such as accounting or engineering, may attend executive development programs to facilitate their promotion to an even higher level. Participation in conferences and seminars can expand knowledge of national and international issues influencing the organization and can help the participants to develop a network of useful contacts. General managers may advance to top executive positions, such as executive vice president, in their own firm or they may take a corresponding position in another firm. They may even advance to peak corporate positions such as chief operating officer or chief executive officer. Chief executive officers often become members of the board of directors of one or more firms, typically as a director of their own firm and often as chair of its board of directors. Some top executives establish their own firms or become independent con­ sultants. Apart from meeting minimum age, residency, and citizenship requirements, candidates for a legislative position have no estab­ lished training or qualifications. Candidates come from a wide va­ riety of occupations—such as lawyer, private sector manager or executive, or business owner—but many do have some political ex­ perience as staffers or members of government bureaus, boards, or commissions. Successful candidates usually become well known through their political campaigns and some have built voter name recognition through their work with community religious, frater­ nal, or social organizations. Increasingly, candidates target information to voters through advertising paid for by their respective campaigns, so fundraising skills are essential for candidates. Management-level work experi­ ence and public service help to develop the fundraising, budgeting, public speaking, and problem-solving skills that are needed to run an effective political campaign. Candidates must make decisions quickly, sometimes on the basis of limited or contradictory infor­ mation. They also should be able to inspire and motivate their con­ stituents and staff. Additionally, they must know how to reach com­ promises and satisfy conflicting demands of constituents. National, State, and some local campaigns require massive amounts of en­ ergy and stamina, traits vital to successful candidates. Virtually all town, city, and county managers have at least a bachelor’s degree, and many hold a higher degree. A master’s de­ gree in public administration is recommended, including courses in public financial management and legal issues in public adminis­ tration. Working in management support positions in government is a prime source of the experience and personal contacts required to eventually secure a manager position. For example, applicants often gain experience as management analysts or assistants in gov­ ernment departments, working for committees, councils, or chief executives. In this capacity, they learn about planning, budgeting, civil engineering, and other aspects of running a government. With  Management and Business and Financial Operations Occupations 67 sufficient experience, they may be hired to manage a small gov­ ernment. Generally, a town, city, or county manager is first hired by a smaller community. Advancement often takes the form of securing positions with progressively larger towns, cities, or counties. A broad knowledge of local issues, combined with communication skills and the ability to compromise, are essential for advancement in this field. Advancement opportunities for elected officials are not clearly defined. Because elected positions normally require a period of residency and because local public support is critical, officials usu­ ally advance to other offices only in the jurisdictions where they live. For example, council members may run for mayor or for a position in the State government, and State legislators may run for governor or for the U.S. Congress. Many officials are not politi­ cally ambitious, however, and do not seek advancement. Others lose their bids for reelection or voluntarily leave the occupation. A lifetime career as a government chief executive or legislator is rare.  the level of managerial responsibility, length of service, and type, size, and location of the firm. For example, a top manager in a very large corporation can earn significantly more than a counterpart in a small firm. Median annual earnings of general and operations managers in 2002 were $68,210. The middle 50 percent earned between $45,720 and $104,970. Because the specific responsibilities of general and operations managers vary significantly within industries, earnings also tend to vary considerably. Median annual earnings in the in­ dustries employing the largest numbers of general and operations managers in 2002 were:  Job Outlook Keen competition is expected for top executive positions, with the prestige and high pay attracting a large number of qualified appli­ cants. Because this is a large occupation, numerous openings will occur each year as executives transfer to other positions, start their own businesses, or retire. However, many executives who leave their jobs transfer to other executive positions, which tend to limit the number of job openings for new entrants. Experienced managers whose accomplishments reflect strong leadership qualities and the ability to improve the efficiency or com­ petitive position of an organization will have the best opportunities. In an increasingly global economy, experience in international eco­ nomics, marketing, information systems, and knowledge of several languages also may be beneficial. Employment of top executives—including chief executives, gen­ eral and operations managers, and legislators—is expected to grow about as fast as the average for all occupations through 2012. Be­ cause top managers are essential to the success of any organization, they should be more immune to automation and corporate restruc­ turing—factors that are expected to adversely affect employment of lower level managers. Projected employment growth of top execu­ tives varies by industry, reflecting the projected change in industry employment over the 2002-12 period. For example, employment growth is expected to be faster than average in professional, scien­ tific, and technical services and administrative and support services. However, employment is projected to decline in some manufactur­ ing industries. Few new governments at any level are likely to be formed, and the number of chief executives and legislators in existing govern­ ments rarely changes. However, some increase will occur at the local level as counties, cities, and towns take on professional managers or move from volunteer to paid career executives to deal with population growth, Federal regulations, and long-range plan­ ning. Elections give newcomers the chance to unseat incumbents or to fill vacated positions. The level of competition in elections varies from place to place. There tends to be less competition in small communities that offer part-time positions with low or no salaries and little or no staff, compared with large municipalities with pres­ tigious full-time positions offering high salaries, staff, and greater exposure.  Median annual earnings of chief executives in 2002 were $126,260. Median annual earnings in the industries employing the largest numbers of chief executives in 2002 were:  Earnings Top executives are among the highest paid workers in the U.S. economy. However, salary levels vary substantially depending upon  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management of companies and enterprises................................... Building equipment contractors........................................................ Depository credit intermediation.................................................... Local government................................................................................ Grocery stores......................................................................................  Management of companies and enterprises................................. Architectural, engineering, and related services ........................ Depository credit intermediation................................................... Colleges, universities, and professional schools........................ Local government.............................................................................  $94,600 74,550 68,110 60,470 44,980  $145,600 133,880 123,220 103,120 73,990  Salaries vary substantially by type and level of responsibilities and by industry. According to a survey by Abbott, Langer & Asso­ ciates, the median income of chief executive officers in the non­ profit sector was $81,000 in 2003, but some of the highest paid made $600,000. In addition to salaries, total compensation often includes stock options, dividends, and other performance bonuses. The use of ex­ ecutive dining rooms and company aircraft and cars, expense al­ lowances, and company-paid insurance premiums and physical ex­ aminations also are among benefits commonly enjoyed by top executives in private industry. A number of chief executive offic­ ers also are provided with company-paid club memberships, a lim­ ousine with chauffeur, and other amenities. Median annual earnings of legislators were $15,220 in 2002. The middle 50 percent earned between $13,180 and $38,540. The lowest 10 percent earned less than $12,130, and the highest 10 per­ cent earned more than $69,380. Earnings of public administrators vary widely, depending on the size of the governmental unit and on whether the job is part time, full time and year round, or full time for only a few months a year. Salaries range from little or nothing for a small-town council mem­ ber to $400,000 a year for the President of the United States. The National Conference of State Legislatures reports that the annual salary for rank-and-file legislators in the 40 States that paid an annual salary ranged from $ 10,000 to more than $99,000 in 2003. In eight States, legislators received a daily salary plus an additional allowance for living expenses while legislatures were in session. The Council of State Governments reports in its Book of the States, 2002-2003 that gubernatorial annual salaries ranged from $50,000 in American Samoa to $179,000 in New York. In addition to a salary, most governors received benefits such as transportation and an official residence. In 2003, U.S. Senators and Representa­ tives earned $154,700, the Senate and House Majority and Minor­ ity leaders earned $171,900, and the Vice President was paid $198,600.  68 Occupational Outlook Handbook Related Occupations Top executives plan, organize, direct, control, and coordinate the operations of an organization and its major departments or programs. The members of the board of directors and lower-level managers also are involved in these activities. Many other management occu­ pations have similar responsibilities; however, they are concentrated in specific industries or are responsible for a specific department within an organization. A few examples are administrative services managers, education administrators, financial managers, food ser­ vice managers, and advertising, marketing, promotions, public re­ lations, and sales managers.  >- International Public Management Association for Human Resources, 1617 Duke St., Alexandria, VA 22314. Internet: http://www.ipma-hr.org >• National Management Association, 2210 Arbor Blvd., Dayton, OH 45439. Internet: http://www.nmal.org  Sources of Additional Information For a variety of information on top executives, including educa­ tional programs and job listings, contact;  For information on executive financial management careers and certification, contact:  >• American Management Association, 1601 Broadway, 6th Floor, New York, NY 10019. Internet: http://www.amanet.org >- Institute of Certified Professional Managers, James Madison University, MSC 5504, Harrisonburg, VA 22807. Internet: http://cob.jmu.edu/icpm/  Information on appointed officials in local government can be obtained from: > Council of State Governments, P.O. Box 11910, 2760 Research Park Dr., Lexington, KY 40578-1910. Internet: http://www.statesnews.org >• National Association of Counties, 440 First St. NW., 8th Floor, Wash­ ington, DC 20001. Internet: http://www.naco.org >- National Conference of State Legislatures, 7700 East First Place, Den­ ver, CO 80230. Internet: http://www.ncsl.org >- National League of Cities, 1301 Pennsylvania Ave. NW., Washington, DC 20004. Internet: http://www.nlc.org  >- Financial Executives International, 200 Campus Dr., P.O. Box 674, Florham Park, NJ 07932-0674. Internet: http://www.fei.org >■ Financial Management Association International, College of Business Administration, University of South Florida, 4202 East Fowler Ave., BSN 3331, Tampa, FL 33620-5500. Internet: http://www.fma.org  Business and Financial Operations Occupations Accountants and Auditors (0*NET 13-2011.01, 13-2011.02)  Significant Points • •  •  Most jobs require at least a bachelor’s degree in accounting or a related field. Overall job opportunities should be favorable, although jobseekers who obtain professional recognition through certification or licensure, a master’s degree, proficiency in accounting and auditing computer software, or specialized expertise will have an advantage. An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth of accountants and auditors.  Nature of the Work Accountants and auditors help to ensure that the Nation’s firms are run efficiently, its public records kept accurately, and its taxes paid properly and on time. They perform these vital functions by offer­ ing an increasingly wide array of business and accounting services to their clients. These services include public, management, and government accounting, as well as internal auditing. Beyond the fundamental tasks of the occupation—preparing, analyzing, and verifying financial documents in order to provide information to clients—many accountants now are required to possess a wide range of knowledge and skills. Accountants and auditors are broadening the services they offer to include budget analysis, financial and in­ vestment planning, information technology consulting, and limited legal services. Specific job duties vary widely among the four major fields of accounting: public, management, government, and internal.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Public accountants perform a broad range of accounting, audit­ ing, tax, and consulting activities for their clients, who may be cor­ porations, governments, nonprofit organizations, or individuals. For example, some public accountants concentrate on tax matters, such as advising companies of the tax advantages and disadvantages of certain business decisions and preparing individual income tax re­ turns. Others offer advice in areas such as compensation or em­ ployee healthcare benefits, the design of accounting and data-processing systems, and the selection of controls to safeguard assets. Still others audit clients’ financial statements and report to investors and authorities that the statements have been correctly prepared and reported. Public accountants, many of whom are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms. Some public accountants specialize in forensic accounting—in­ vestigating and interpreting white collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and possibly criminal financial transactions, such as money laundering by organized criminals. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques in order to determine if illegal activity is going on. Many forensic accountants work closely with law enforce­ ment personnel and lawyers during investigations and often appear as expert witnesses during trials. In response to the recent accounting scandals, new Federal leg­ islation restricts the nonauditing services that public accountants can provide to clients. If an accounting firm audits a client’s finan­ cial statements, that same firm cannot provide advice in the areas of human resources, technology, investment banking, or legal matters, although accountants may still advise on tax issues, such as estab­ lishing a tax shelter. Accountants may still advise other clients in these areas, or may provide advice within their own firm. Management accountants—also called cost, managerial, indus­ trial, corporate, or private accountants—record and analyze the fi­ nancial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, and asset management. Usually, management accoun­  Management and Business and Financial Operations Occupations 69 tants are part of executive teams involved in strategic planning or new-product development. They analyze and interpret the financial information that corporate executives need to make sound business decisions. They also prepare financial reports for nonmanagement groups, including stockholders, creditors, regulatory agencies, and tax authorities. Within accounting departments, they may work in various areas, including financial analysis, planning and budgeting, and cost accounting. Government accountants and auditors work in the public sector, maintaining and examining the records of government agencies and auditing private businesses and individuals whose activities are sub­ ject to government regulations or taxation. Accountants employed by Federal, State, and local governments guarantee that revenues are received and expenditures are made in accordance with laws and regulations. Those who are employed by the Federal Govern­ ment may work as Internal Revenue Service agents or in financial management, financial institution examination, or budget analysis and administration. Internal auditors verify the accuracy of their organization’s in­ ternal records and check for mismanagement, waste, or fraud. In­ ternal auditing is an increasingly important area of accounting and auditing. Internal auditors examine and evaluate their firms’ finan­ cial and information systems, management procedures, and inter­ nal controls to ensure that records are accurate and controls are ad­ equate to protect against fraud and waste. They also review company operations—evaluating their efficiency, effectiveness, and compli­ ance with corporate policies and procedures, laws, and government  Working Conditions Most accountants and auditors work in a typical office setting. Selfemployed accountants may be able to do part of their work at home. Accountants and auditors employed by public accounting firms and government agencies may travel frequently to perform audits at branches of their firm, clients’ places of business, or government facilities. Most accountants and auditors generally work a standard 40hour week, but many work longer hours, particularly if they are self-employed and have numerous clients. Tax specialists often work long hours during the tax season.  i  ---»>. JP.  ■ i.~  Accountants and auditors carefully analyze financial data and prepare financial reports and tax returns for clients.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  regulations. There are many types of highly specialized auditors, such as electronic data-processing, environmental, engineering, le­ gal, insurance premium, bank, and healthcare auditors. As com­ puter systems make information timelier, internal auditors help managers to base their decisions on actual data, rather than personal observation. Internal auditors also may recommend controls for their organization’s computer system to ensure the reliability of the sys­ tem and the integrity of the data. Computers are rapidly changing the nature of the work for most accountants and auditors. With the aid of special software pack­ ages, accountants summarize transactions in standard formats for financial records and organize data in special formats for financial analysis. These accounting packages greatly reduce the amount of tedious manual work associated with data management and recordkeeping. Computers enable accountants and auditors to be more mobile and to use their clients’ computer systems to extract information from databases and the Internet. As a result, a growing number of accountants and auditors with extensive computer skills specialize in correcting problems with software or in developing software to meet unique data management and analytical needs. Accountants also are beginning to perform more technical duties, such as implementing, controlling, and auditing systems and net­ works, and developing technology plans and budgets. Increasingly, accountants also are assuming the role of a per­ sonal financial advisor. They not only provide clients with account­ ing and tax help, but also help them develop personal budgets, man­ age assets and investments, plan for retirement, and recognize and reduce exposure to risks. This role is a response to client demands for a single trustworthy individual or firm to meet all of their finan­ cial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare. (See financial analysts and personal financial advisors elsewhere in the Handbook.)  Employment Accountants and auditors held about 1.1 million jobs in 2002. They worked throughout private industry and government, but 1 out of 5 wage and salary accountants worked for accounting, tax prepara­ tion, bookkeeping, and payroll services firms. Approximately 1 out of 10 accountants or auditors were self-employed. Many accountants and auditors are unlicensed management ac­ countants, internal auditors, or government accountants and audi­ tors; however, a large number are licensed Certified Public Accoun­ tants. Most accountants and auditors work in urban areas, where public accounting firms and central or regional offices of businesses are concentrated. Some individuals with backgrounds in accounting and auditing are full-time college and university faculty; others teach part time while working as self-employed accountants or employed as ac­ countants for private industry or government. (Elsewhere in the Handbook see teachers—postsecondary.)  70 Occupational Outlook Handbook Training, Other Qualifications, and Advancement Most accountant and auditor positions require at least a bachelor’s degree in accounting or a related field. Beginning accounting and auditing positions in the Federal Government, for example, usually require 4 years of college (including 24 semester hours in account­ ing or auditing) or an equivalent combination of education and ex­ perience. Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a concentration in accounting. Previous experience in accounting or auditing can help an appli­ cant get a job. Many colleges offer students an opportunity to gain experience through summer or part-time internship programs con­ ducted by public accounting or business firms. In addition, practi­ cal knowledge of computers and their applications in accounting and internal auditing is a great asset for jobseekers in the account­ ing field. Professional recognition through certification or licensure pro­ vides a distinct advantage in the job market. CPAs are licensed by a State Board of Accountancy. The vast majority of States require CPA candidates to be college graduates, but a few States substitute a number of years of public accounting experience for a college degree. As of early 2003, based on recommendations made by the American Institute of Certified Public Accountants (AICPA), 42 States and the District of Columbia required CPA candidates to com­ plete 150 semester hours of college coursework—an additional 30 hours beyond the usual 4-year bachelor’s degree. Another five States—Arizona, Minnesota, New Mexico, New York, and Vir­ ginia—have adopted similar legislation that will become effective between 2004 and 2009. Colorado, Delaware, New Hampshire, and Vermont are the only States that do not require 150 semester hours. Many schools have altered their curricula accordingly with most programs offering masters degrees as part of the 150 hours, and prospective accounting majors should carefully research account­ ing curricula and the requirements of any States in which they hope to become licensed. All States use the four-part Uniform CPA Examination prepared by the AICPA. The 2-day CPA examination is rigorous, and only about one-quarter of those who take it each year passes every part they attempt. Candidates are not required to pass all four parts at once, but most States require candidates to pass at least two parts for partial credit and to complete all four sections within a certain period. Most States also require applicants for a CPA certificate to have some accounting experience. In May 2004, the CPA exam will become computerized and offered quarterly at various testing centers throughout the United States. The AICPA also offers members with valid CPA certificates the option to receive the Accredited in Business Valuation (AB V), Cer­ tified Information Technology Professional (CITP), or Personal Fi­ nancial Specialist (PFS) designations. The addition of these desig­ nations to the CPA distinguishes those accountants with a certain level of expertise in the nontraditional areas in which accountants are practicing more frequently. The ABV designation requires a written exam, as well as completion of a minimum of 10 business valuation projects that demonstrate a candidate’s experience and competence. The CITP requires payment of a fee, a written state­ ment of intent, and the achievement of a set number of points awarded for business experience and education. Those who do not meet the required number of points may substitute a written exam. Candi­ dates for the PFS designation also must achieve a certain level of points, based on experience and education, and must pass a written exam and submit references. Nearly all States require CPAs and other public accountants to complete a certain number of hours of continuing professional edu­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  cation before their licenses can be renewed. The professional as­ sociations representing accountants sponsor numerous courses, seminars, group study programs, and other forms of continuing education. Accountants and auditors also can seek to obtain other forms of credentials from professional societies on a voluntary basis. Volun­ tary certification can attest to professional competence in a special­ ized field of accounting and auditing. It also can certify that a rec­ ognized level of professional competence has been achieved by accountants and auditors who have acquired some skills on the job, without the formal education or public accounting work experience needed to meet the rigorous standards required to take the CPA ex­ amination. The Institute of Management Accountants (IMA) confers the Certified Management Accountant (CM A) designation upon appli­ cants who complete a bachelor’s degree or attain a minimum score on specified graduate school entrance exams. Applicants, who must have worked at least 2 years in management accounting, also must pass a four-part examination, agree to meet continuing education requirements, and comply with standards of professional conduct. The CMA program is administered by the Institute of Certified Management Accountants, an affiliate of the IMA. Graduates from accredited colleges and universities who have worked for 2 years as internal auditors and have passed a four-part examination may earn the Certified Internal Auditor (CIA) desig­ nation from the Institute of Internal Auditors (IIA). The IIA re­ cently implemented three new specialty designations—Certification in Control Self—Assessment (CCSA), Certified Government Au­ diting Professional (CGAP), and Certified Financial Services Audi­ tor (CFSA). Requirements are similar to those of the CIA. The Information Systems Audit and Control Association confers the Certified Information Systems Auditor (CISA) designation upon candidates who pass an examination and have 5 years of experience in auditing information systems. Auditing or data-processing expe­ rience and a college education may be substituted for up to 2 years of work experience in this program. For instance, an internal audi­ tor might be a CPA, CIA, and CISA. The Accreditation Council for Accountancy and Taxation, a sat­ ellite organization of the National Society of Public Accountants, confers three designations—Accredited Business Accountant (ABA), Accredited Tax Advisor (ATA), and Accredited Tax Preparer (ATP)—on accountants specializing in tax preparation for smalland medium-sized businesses. Candidates for the ABA must pass an exam, while candidates for the ATA and ATP must complete the required coursework and pass an exam. Often, a practitioner will hold multiple licenses and designations. The Association of Government Accountants grants the Certi­ fied Government Financial Manager (CGFM) designation for ac­ countants, auditors, and other government financial personnel at the Federal, State, and local levels. Candidates must have a minimum of a bachelor’s degree, 24 hours of study in financial management, and 2 years’ experience in government, and must pass a series of three exams. The exams cover topics in governmental environment; governmental accounting, financial reporting, and budgeting; and financial management and control. Persons planning a career in accounting should have an aptitude for mathematics and be able to analyze, compare, and interpret facts and figures quickly. They must be able to clearly communicate both written and verbally the results of their work to clients and managers. Accountants and auditors must be good at working with people, as well as with business systems and computers. At a mini­ mum, accountants should be familiar with basic accounting soft­ ware packages. Because financial decisions are made based on their  Management and Business and Financial Operations Occupations 71 statements and services, accountants and auditors should have high standards of integrity. Capable accountants and auditors may advance rapidly; those having inadequate academic preparation may be assigned routine jobs and find promotion difficult. Many graduates of junior col­ leges and business and correspondence schools, as well as book­ keepers and accounting clerks who meet the education and experi­ ence requirements set by their employers, can obtain junior accounting positions and advance to positions with more responsi­ bilities by demonstrating their accounting skills on the job. Beginning public accountants usually start by assisting with work for several clients. They may advance to positions with more re­ sponsibility in 1 or 2 years, and to senior positions within another few years. Those who excel may become supervisors, managers, or partners; open their own public accounting firm; or transfer to ex­ ecutive positions in management accounting or internal auditing in private firms. Management accountants often start as cost accountants, junior internal auditors, or trainees for other accounting positions. As they rise through the organization, they may advance to accounting man­ ager, chief cost accountant, budget director, or manager of internal auditing. Some become controllers, treasurers, financial vice presi­ dents, chief financial officers, or corporation presidents. Many se­ nior corporation executives have a background in accounting, inter­ nal auditing, or finance. In general, public accountants, management accountants, and internal auditors have much occupational mobility. Practitioners often shift into management accounting or internal auditing from public accounting, or between internal auditing and management accounting. However, it is less common for accountants and audi­ tors to move from either management accounting or internal audit­ ing into public accounting. Job Outlook Employment of accountants and auditors is expected to grow about as fast as the average for all occupations through the year 2012. An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other oc­ cupations will produce numerous job openings in this large occupa­ tion. As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information devel­ oped by accountants and auditors regarding costs, expenditures, and taxes will increase as well. Increased need for accountants and au­ ditors will arise from changes in legislation related to taxes, finan­ cial reporting standards, business investments, mergers, and other financial matters. The growth of international business also has led to more demand for accounting expertise and services related to international trade and accounting rules, as well as to international mergers and acquisitions. These trends should create more jobs for accountants and auditors. As a result of the recent accounting scandals, Federal legislation was enacted to increase penalties, and make company executives personally responsible for falsely reporting financial information. These changes should lead to increased scrutiny of company finances and accounting procedures, and should create opportunities for ac­ countants and auditors, particularly Certified Public Accountants, to more thoroughly audit financial records. In order to ensure fi­ nances comply with the law before public accountants conduct au­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  dits, management accountants and internal auditors will increas­ ingly be needed to discover and eliminate fraud. And, in an effort to make government agencies more efficient and accountable, demand for government accountants should increase. Increased awareness of financial crimes such as embezzlement, bribery, and securities fraud will also increase the demand for fo­ rensic accountants to detect illegal financial activity by individuals, companies, and organized crime rings. Computer technology has made these crimes easier to commit, and it is on the rise. But, de­ velopment of new computer software and electronic surveillance technology has also made tracking down financial criminals easier, thus increasing the ease and likelihood that forensic accountants will discover their crimes. As success rates of investigations grow, demand will also grow for forensic accountants. The changing role of accountants and auditors also will spur job growth, although this growth will be limited as a result of financial scandals. In response to demand, some accountants were offering more financial management and consulting services as they assumed a greater advisory role and developed more sophisticated account­ ing systems. Since Federal legislation now prohibits accountants from providing nontraditional services to clients whose books they audit, opportunities for accountants to do non-audit work could be limited. However, accountants will still be able to advise on other financial matters for clients that are not publicly traded companies, and for nonaudit clients, but growth in these areas will be slower than in the past. Also, due to the increasing popularity of tax prepa­ ration firms and computer software, accountants will shift away from tax preparation. As computer programs continue to simplify some accounting-related tasks, clerical staff will increasingly handle many routine calculations. Overall, job opportunities for accountants and auditors should be favorable. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs declined; however, enrollment is slowly beginning to grow again as more students are attracted to the profession because of the attention from the accounting scan­ dals. Those who pursue a CPA should have excellent job prospects. However, many accounting graduates are instead pursuing other certifications such as the CMA and CIA, so competition could be greater in management accounting and internal auditing than in public accounting. Regardless of specialty, accountants and audi­ tors who have earned professional recognition through certification or licensure should have the best job prospects. Applicants with a master’s degree in accounting, or a master’s degree in business ad­ ministration with a concentration in accounting, also will have an advantage. In the aftermath of the accounting scandals, professional certification is even more important in order to ensure that accoun­ tants’ credentials and ethics are sound. Proficiency in accounting and auditing computer software, or expertise in specialized areas such as international business, spe­ cific industries, or current legislation, may be helpful in landing certain accounting and auditing jobs. In addition, employers in­ creasingly seek applicants with strong interpersonal and communi­ cation skills. Because many accountants work on teams with others from different backgrounds, they must be able to communicate ac­ counting and financial information clearly and concisely. Regard­ less of one’s qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms. Earnings In 2002, the median wage and salary annual earnings of accoun­ tants and auditors were $47,000. The middle half of the occupation earned between $37,210 and $61,630. The top 10 percent of ac­ countants and auditors earned more than $82,730, and the bottom  72 Occupational Outlook Handbook 10 percent earned less than $30,320. In 2002, median annual earn­ ings in the industries employing the largest numbers of accountants and auditors were: Federal Government............................................................................. $51,070 Accounting, tax preparation, bookkeeping, and payroll services................................................................................................. 49,520 Management of companies and enterprises................................... 49,110 Local government..................................................................................... 44,690 State government...................................................................................... 42,680  According to a salary survey conducted by the National Asso­ ciation of Colleges and Employers, bachelor’s degree candidates in accounting received starting offers averaging $40,647 a year in 2003; master’s degree candidates in accounting were initially offered $42,241. According to a 2003 salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, accountants and auditors with up to 1 year of experience earned between $29,500 and $40,500. Those with 1 to 3 years of experience earned between $34,000 and $49,500. Senior accoun­ tants and auditors earned between $41,000 and $61,500; managers earned between $47,500 and $78,750; and directors of accounting and auditing earned between $66,750 and $197,500 a year. The varia­ tion in salaries reflects differences in size of firm, location, level of education, and professional credentials. In the Federal Government, the starting annual salary for junior accountants and auditors was $23,442 in 2003. Candidates who had a superior academic record might start at $29,037, while applicants with a master’s degree or 2 years of professional experience usually began at $35,519. Beginning salaries were slightly higher in se­ lected areas where the prevailing local pay level was higher. Ac­ countants employed by the Federal Government in nonsupervisory, supervisory, and managerial positions averaged $69,370 a year in 2003; auditors averaged $73,247. Related Occupations Accountants and auditors design internal control systems and ana­ lyze financial data. Others for whom training in accounting is valu­ able include budget analysts; cost estimators; loan officers; finan­ cial analysts and personal financial advisors; tax examiners, collectors, and revenue agents; bill and account collectors; and book­ keeping, accounting, and auditing clerks. Recently, accountants have assumed the role of management analysts and are involved in the design, implementation, and maintenance of accounting software systems. Others who perform similar work include computer pro­ grammers, computer software engineers, and computer support spe­ cialists and systems administrators. Sources of Additional Information Information on accredited accounting programs can be obtained from: ► AACSB International—Association to Advance Collegiate Schools of Business, 600 Emerson Rd., Suite 300, St. Louis, MO 63141. Internet: http://www.aacsb.edu/accreditation/AccreditedMembers.asp  Information about careers in certified public accounting and CPA standards and examinations may be obtained from: >• American Institute of Certified Public Accountants, 1211 Avenue of the Americas, New York, NY 10036. Internet: http://www.aicpa.org  Information on CPA licensure requirements by State may be obtained from: >• National Association of State Boards of Accountancy, 150 Fourth Ave. North, Suite 700, Nashville, TN 37219-2417. Internet: http://www.nasba.org  Information on careers in management accounting and the CMA designation may be obtained from:  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  >- Institute of Management Accountants, 10 Paragon Dr., Montvale, NJ 07645-1760. Internet: http://www.imanet.org  Information on the Accredited in Accountancy, Accredited Busi­ ness Accountant, Accredited Tax Advisor, or Accredited Tax Preparer designations may be obtained from: >- Accreditation Council for Accountancy and Taxation, 1010 North Fairfax St., Alexandria, VA 22314. Internet: http://www.acatcredentials.org  Information on careers in internal auditing and the CIA designa­ tion may be obtained from: ► The Institute of Internal Auditors, 247 Maitland Ave., Altamonte Springs, FL 32701-4201. Internet: http://www.theiia.org  Information on careers in information systems auditing and the CISA designation may be obtained from: ► Information Systems Audit and Control Association, 3701 Algonquin Rd., Suite 1010, Rolling Meadows, IL 60008. Internet: http ://www.isaca.org  Information on careers in government accounting and the CGFM designation may be obtained from: >- Association of Government Accountants, 2208 Mount Vernon Ave., Al­ exandria, VA 22301. Internet: http://www.agacgfm.org  Information on obtaining an accounting or auditing position with the Federal Government is available from the U.S. Office of Per­ sonnel Management (OPM) through a telephone-based system. Consult your telephone directory under U.S. Government for a lo­ cal number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site: http://www.usajobs.opm.gov.  Budget Analysts (0*NET 13-2031.00)  Significant Points • •  •  Almost half of all budget analysts work in Federal, State, and local governments. While a bachelor’s degree generally is the minimum educational requirement, many employers prefer or require a master’s degree. Competition for jobs is expected.  Nature of the Work Deciding how to efficiently distribute limited financial resources is an important challenge in all organizations. In most large and com­ plex organizations, this task would be nearly impossible without budget analysts. These workers play the primary role in the devel­ opment, analysis, and execution of budgets, which are used to allo­ cate current resources and estimate future financial requirements. Without effective budget analysis and feedback about budgetary problems, many private and public organizations could become bank­ rupt. Budget analysts can be found in private industry, nonprofit orga­ nizations, and the public sector. In private sector firms, a budget analyst examines, analyzes, and seeks new ways to improve effi­ ciency and increase profits. Although analysts working in nonprofit and governmental organizations usually are not concerned with prof­ its, they still try to find the most efficient distribution of funds and other resources among various departments and programs. Budget analysts have many responsibilities in these organiza­ tions, but their primary task is providing advice and technical assis­ tance in the preparation of annual budgets. At the beginning of each budget cycle, managers and department heads submit proposed op­  Management and Business and Financial Operations Occupations 73 erational and financial plans to budget analysts for review. These plans outline prospective programs, including proposed funding increases and new initiatives, estimated costs and expenses, and capi­ tal expenditures needed to finance these programs. Analysts examine the budget estimates or proposals for com­ pleteness, accuracy, and conformance with established procedures, regulations, and organizational objectives. Sometimes, they em­ ploy cost-benefit analysis to review financial requests, assess pro­ gram tradeoffs, and explore alternative funding methods. They also examine past and current budgets and research economic and finan­ cial developments that affect the organization’s spending. This pro­ cess enables analysts to evaluate proposals in terms of the organization’s priorities and financial resources. After this initial review process, budget analysts consolidate the individual departmental budgets into operating and capital budget summaries. These summaries contain comments and statements that support or argue against funding requests. Budget summaries then are submitted to senior management or, as is often the case in local and State governments, to appointed or elected officials. Bud­ get analysts then help the chief operating officer, agency head, or other top managers analyze the proposed plan and devise possible alternatives if the projected results are unsatisfactory. The final de­ cision to approve the budget, however, usually is made by the orga­ nization head in a private firm or by elected officials, such as the State legislative body, in government. Throughout the remainder of the year, analysts periodically moni­ tor the budget by reviewing reports and accounting records to deter­ mine if allocated funds have been spent as specified. If deviations appear between the approved budget and actual performance, bud­ get analysts may write a report providing reasons for the variations, along with recommendations for new or revised budget procedures. In order to avoid or alleviate deficits, they may recommend pro­ gram cuts or reallocation of excess funds. They also inform pro­ gram managers and others within their organization of the status and availability of funds in different budget accounts. Before any changes are made to an existing program or a new one is imple­ mented, a budget analyst assesses the program’s efficiency and ef­ fectiveness. Analysts also may be involved in long-range planning activities such as projecting future budget needs. The amount of data and information that budget analysts are able to analyze has greatly increased through the use of computerized financial software programs. The analysts also make extensive use of spreadsheet, database, and word processing software.  Almost half of all budget analysts work in Federal, State, and local governments.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Budget analysts have seen their role broadened as limited fund­ ing has led to downsizing and restructuring throughout private in­ dustry and government. Not only do they develop guidelines and policies governing the formulation and maintenance of the budget, but they also measure organizational performance, assess the ef­ fects of various programs and policies on the budget, and help to draft budget-related legislation. In addition, budget analysts some­ times conduct training sessions for company or government agency personnel regarding new budget procedures. Working Conditions Budget analysts usually work in a comfortable office setting. Long hours are common among these workers, especially during the ini­ tial development and midyear and final reviews of budgets. The pressure of deadlines and tight work schedules during these periods can be stressful, and analysts usually are required to work more than the routine 40 hours a week. Budget analysts spend the majority of their time working inde­ pendently, compiling and analyzing data, and preparing budget pro­ posals. Nevertheless, their schedule sometimes is interrupted by special budget requests, meetings, and training sessions. Some budget analysts travel to obtain budget details and explanations of various programs from coworkers, or to personally observe fund­ ing allocation. Employment Budget analysts held 62,000 jobs throughout private industry and government in 2002. Federal, State, and local governments are major employers, accounting for 46 percent of budget analyst jobs. About 1 in 5 worked for the Federal government. Many other budget ana­ lysts worked in manufacturing, financial services, or management services. Other major employers include schools and hospitals. Training, Other Qualifications, and Advancement Private firms and government agencies generally require candidates for budget analyst positions to have at least a bachelor’s degree, but many prefer or require a master’s degree. Within the Federal Gov­ ernment, a bachelor’s degree in any field is sufficient for an entrylevel budget analyst position, but, again, those with master’s de­ grees are preferred. State and local governments have varying requirements, but a bachelor’s degree in one of many areas—ac­ counting, finance, business or public administration, economics, political science, statistics, or a social science such as sociology— may qualify one for entry into the occupation. Many States, espe­ cially larger, more urban States, require a master’s degree. Some­ times, a degree in a field closely related to that of the employing industry or organization, such as engineering, may be preferred. Some firms prefer candidates with a degree in business because business courses emphasize quantitative and analytical skills. Many government employers prefer candidates with strong analytic and policy analysis backgrounds that may be obtained through such majors as political science, economics, public administration, or public finance. Occasionally, budget-related or finance-related work experience can be substituted for formal education. Because developing a budget involves manipulating numbers and requires strong analytical skills, courses in statistics or account­ ing are helpful, regardless of the prospective budget analyst’s ma­ jor field of study. Financial analysis is automated in almost every organization and, therefore, familiarity with word processing and the financial software packages used in budget analysis often is required. Software packages commonly used by budget analysts include electronic spreadsheet, database, and graphics software.  74 Occupational Outlook Handbook Employers usually prefer job candidates who already possess these computer skills. In addition to analytical and computer skills, those seeking a career as a budget analyst must be able to work under strict time constraints. Strong oral and written communication skills are es­ sential for analysts because they must prepare, present, and defend budget proposals to decision makers. Entry-level budget analysts may receive some formal training when they begin their jobs, but most employers feel that the best training is obtained by working through one complete budget cycle. During the cycle, which typically is 1 year, analysts become famil­ iar with the various steps involved in the budgeting process. The Federal Government, on the other hand, offers extensive on-the-job and classroom training for entry-level trainees. In addition to onthe-job training, budget analysts are encouraged to participate in the various classes offered throughout their careers. Some government budget analysts employed at the Federal, State, or local level may earn the Certified Government Financial Man­ ager (CGFM) designation granted by the Association of Govern­ ment Accountants. Other government financial officers also may earn this designation. Candidates must have a minimum of a bachelor’s degree, 24 hours of study in financial management, and 2 years of experience in government, and must pass a series of three exams. The exams cover topics on the organization and structure of government; governmental accounting, financial reporting and bud­ geting; and financial management and control. Budget analysts start their careers with limited responsibilities. In the Federal Government, for example, beginning budget analysts compare projected costs with prior expenditures, consolidate and enter data prepared by others, and assist higher grade analysts by doing research. As analysts progress in their careers, they begin to develop and formulate budget estimates and justification statements, perform indepth analyses of budget requests, write statements sup­ porting funding requests, advise program managers and others on the status and availability of funds for different budget activities, and present and defend budget proposals to senior managers. Beginning analysts usually work under close supervision. Ca­ pable entry-level analysts can be promoted into intermediate-level positions within 1 to 2 years, and then into senior positions within a few more years. Progressing to a higher level means added budget­ ary responsibility and can lead to a supervisory role. Because of the importance and high visibility of their jobs, senior budget analysts are prime candidates for promotion to management positions in vari­ ous parts of the organization. Job Outlook Competition for budget analyst jobs is expected over the 2002-12 projection period. Candidates with a master’s degree should have the best job opportunities. Familiarity with computer financial soft­ ware packages also should enhance a jobseeker’s employment pros­ pects. Employment of budget analysts is expected to grow about as fast as the average for all occupations through 2012. Employment growth will be driven by the continuing demand for sound financial analy­ sis in both public and private sector organizations. In addition to employment growth, many job openings will result from the need to replace experienced budget analysts who transfer to other occu­ pations or leave the labor force. The expanding use of computer applications in budget analysis increases worker productivity by enabling analysts to process more data in less time. However, because budget analysts now have much more data available to them, their jobs are becoming more compli­ cated. In addition, as businesses and other organizations become  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  more complex and specialized, budget planning and financial con­ trol will demand greater attention. These factors should offset any adverse effects of computer applications on employment of budget analysts. In coming years, all types of organizations will continue to rely heavily on budget analysts to examine, analyze, and develop bud­ gets. Because of the importance of financial analysis performed by budget analysts, employment of these workers has remained rela­ tively unaffected by downsizing in the Nation’s workplaces. In ad­ dition, because financial and budget reports must be completed dur­ ing both periods of economic growth and slowdowns, budget analysts usually are less subject to layoffs than are many other work­ ers during economic downturns. Earnings Salaries of budget analysts vary widely by experience, education, and employer. Median annual earnings of budget analysts in 2002 were $52,480. The middle 50 percent earned between $42,000 and $66,180. The lowest 10 percent earned less than $34,580, and the highest 10 percent earned more than $82,720. According to a 2002 survey conducted by Robert Half Interna­ tional—a staffing services firm specializing in accounting and fi­ nance—starting salaries of financial, budget, treasury, and cost ana­ lysts in small companies ranged from $29,750 to $36,250. In large companies, starting salaries ranged from $33,500 to $41,250. In the Federal Government, budget analysts usually started as trainees earning $23,442 or $29,037 a year in 2003. Candidates with a master’s degree might begin at $35,519. Beginning salaries were slightly higher in selected areas where the prevailing local pay level was higher. The average annual salary in 2003 for budget analysts employed by the Federal Government in nonsupervisory, supervisory, and managerial positions was $62,400. Related Occupations Budget analysts review, analyze, and interpret financial data; make recommendations for the future; and assist in the implementation of new ideas and financial strategies. Other workers who have similar duties include accountants and auditors, cost estimators, economists, financial analysts and personal financial advisors, financial manag­ ers, loan counselors and officers, and management analysts. Sources of Additional Information Information about career opportunities as a budget analyst may be available from your State or local employment service. Information on careers in government financial management and the CGFM designation may be obtained from: >- Association of Government Accountants, 2208 Mount Vernon Ave., Al­ exandria, VA 22301. Internet: http://www.agacgfm.org  Information on careers in budget analysis at the State govern­ ment level may be obtained from: >- National Association of State Budget Officers, Hall of the States Build­ ing, Suite 642,444 North Capitol St. NW., Washington, DC 20001. Internet: http://www.nasbo.org  Information on obtaining a budget analyst position with the Federal Government is available from the U.S. Office of Personnel Management (OPM) through a telephone-based system. Consult your telephone directory under U.S. Government for a local num­ ber or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Informa­ tion also is available from the OPM Internet site: http://www.usajobs.opm.gov.  Management and Business and Financial Operations Occupations 75  Claims Adjusters, Appraisers, Examiners, and Investigators (0*NET 13-1031.01, 13-1031.02, 13-1032.00)  Significant Points •  • •  Adjusters and examiners investigate insurance claims, negotiate settlements, and authorize payments; investigators deal with claims where there is a question of liability and where fraud or criminal activity is suspected. Most employers prefer to hire college graduates. Competition will be keen for jobs as investigators, because this occupation attracts many qualified people.  Nature of the Work Individuals and businesses purchase insurance policies to protect against monetary losses. In the event of a loss, policyholders sub­ mit claims, or requests for payment, as compensation for their loss. Adjusters, examiners, and investigators work primarily for prop­ erty and casualty insurance companies, for whom they handle a wide variety of claims for property damage, liability, and bodily injury. Their main role is to investigate the claims, negotiate settlements, and authorize payments to claimants, but they must always be mind­ ful not to violate the claimant’s rights under Federal and State pri­ vacy laws. They must determine whether the customer’s insurance policy covers the loss and how much of the loss should be paid to the claimant. Although many adjusters, appraisers, examiners, and investigators have overlapping functions and may even perform the same job, the insurance industry generally assigns specific roles to each of these claims workers. Adjusters plan and schedule the work required to process a claim that would follow, for example, an automobile accident or damage to one’s home caused by a storm. They investigate claims by inter­ viewing the claimant and witnesses, consulting police and hospital records, and inspecting property damage to determine the extent of the company’s liability. Adjusters may also consult with other pro­ fessionals, such as accountants, architects, construction workers, engineers, lawyers, and physicians, who can offer a more expert evaluation of a claim. The information gathered, including photo­ graphs and written or taped statements, is set down in a report that is then used to evaluate a claim. When the policyholder’s claim is legitimate, the claims adjuster negotiates with the claimant and settles the claim. When claims are contested, adjusters will work with attorneys and expert witnesses to defend the insurer’s position. Many companies centralize the claims-adjusting operation in a claims center, where the cost of repair is determined and a check is issued immediately. More complex cases, usually involving bodily injury, are referred to senior adjusters. Some adjusters work with multiple types of insurance; however, most specialize in homeowner claims, business losses, automotive damage, or workers’ compen­ sation. Claimants can opt not to rely on the services of their insurance company’s adjuster and may instead choose to hire a public ad­ juster. Public adjusters assist clients in preparing and presenting claims to insurance companies and try to negotiate a fair settlement. They perform the same services as adjusters who work directly for companies; however, they work in the best interests of the client, rather than the insurance company. Claims examiners within property and casualty insurance firms may have duties similar to those of an adjuster, but often their pri­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  mary job is to review the claims submitted to ensure that proper guidelines have been followed. They may assist adjusters with com­ plex and complicated claims or when a disaster suddenly greatly increases the volume of claims. Most claims examiners work for life or health insurance companies. In health insurance companies, examiners review health-related claims to see whether costs are rea­ sonable based on the diagnosis. The examiners are provided with guides that supply information on the average period of disability, the expected treatments, and the average hospital stay, for patients with the various ailments for which a claim may be submitted. Ex­ aminers check claim applications for completeness and accuracy, interview medical specialists, and consult policy files to verify the information reported in a claim. Examiners will then either autho­ rize the appropriate payment or refer the claim to an investigator for a more thorough review. Claims examiners usually specialize in group or individual insurance plans and in hospital, dental, or pre­ scription drug claims. In life insurance, claims examiners review the causes of death, particularly in the case of an accident, because most life insurance policies pay additional benefits if a death is accidental. Claims examiners also may review new applications for life insurance to make sure that applicants have no serious illnesses that would make them a high risk to insure and thus disqualify them from obtaining insurance. Another occupation that plays an important role in the accurate settlement of claims is that of the appraiser, whose role is to assess the cost or value of an insured item. The majority of appraisers employed by insurance companies and independent adjusting firms are auto damage appraisers. These appraisers inspect damaged vehicles after an accident and estimate the cost of repairs. This in­ formation is then relayed to the adjuster, who incorporates the ap­ praisal into the settlement. Auto damage appraisers are valued by insurance companies because they can provide an unbiased judg­ ment of repair costs. Otherwise, the companies would have to rely on auto mechanics’ estimates, which might be unreasonably high. Many claims adjusters and auto damage appraisers are equipped with laptop computers from which they can download the neces­ sary forms and files from insurance company databases. Many ad­ justers and appraisers use digital cameras, which allow photographs of the damage to be sent to the company via the Internet. Many also input information about the damage directly into their computers, where software programs produce estimates of damage on standard forms. These new technologies allow for faster and more efficient processing of claims. When adjusters or examiners suspect fraud, they refer the claim to an investigator. Insurance investigators in an insurance company’s Special Investigative Unit handle claims in which a company sus­ pects fraudulent or criminal activity, such as arson cases, false work­ ers’ disability claims, staged accidents, or unnecessary medical treat­ ments. The severity of insurance fraud cases can vary greatly, from claimants simply overstating the damage to a vehicle to compli­ cated fraud rings responsible for many claimants supported by dis­ honest doctors, lawyers, and even insurance personnel. Investigators usually start with a database search to obtain back­ ground information on claimants and witnesses. Investigators can access certain personal information and identify Social Security numbers, aliases, driver’s license numbers, addresses, phone num­ bers, criminal records, and past claims histories to establish whether a claimant has ever attempted insurance fraud. Then, investigators may visit claimants and witnesses to obtain a recorded statement, take photographs, and inspect facilities, such as a doctor’s office, to determine whether they have a proper license. Investigators often consult with legal counsel and can be expert witnesses in court cases.  76 Occupational Outlook Handbook Employment Adjusters, appraisers, examiners, and investigators held about 241,000 jobs in 2002. Of these, more than 14,000 were jobs held by auto damage insurance appraisers. Insurance carriers employed nearly 60 percent of claims adjusters, appraisers, examiners, and investigators; more than 20 percent were employed by insurance agencies and brokerages, and private claims adjusting companies. Around 2 percent of adjusters, appraisers, examiners, and investi­ gators were self-employed.  Claims adjusters, appraisers, examiners, and investigators gather facts related to insurance claims. Often, investigators also perform surveillance work. For ex­ ample, in a case involving fraudulent workers’ compensation claims, an investigator may covertly observe the claimant for several days or even weeks. If the investigator observes the subject performing an activity that is ruled out by injuries stated in a workers’ compen­ sation claim, the investigator would take video or still photographs to document the activity and report it to the insurance company. Working Conditions Working environments of claims adjusters, appraisers, examiners, and investigators vary greatly. Most claims examiners employed by life and health insurance companies work a standard 5-day, 40hour week in a typical office environment. Many claims adjusters and auto damage appraisers, however, often work outside the of­ fice, inspecting damaged buildings and automobiles. Adjusters who inspect damaged buildings must be wary of potential hazards such as collapsed roofs and floors, as well as weakened structures. In general, adjusters are able to arrange their work schedules to accommodate evening and weekend appointments with clients. This accommodation sometimes results in adjusters working irregular schedules or more than 40 hours a week, especially when there are a lot of claims. Some report to the office every morning to get their assignments, while others simply call in from home and spend their days traveling to claim sites. New technology, such as laptop com­ puters and cellular telephones, is making telecommuting easier for claims adjusters and auto damage appraisers. Many adjusters work inside their office only a few hours a week, while others conduct their business entirely out of their home and automobile. Occasion­ ally, experienced adjusters must be away from home for days—for example, when they travel to the scene of a disaster such as a tor­ nado, hurricane, or flood—to work with local adjusters and govern­ ment officials. Adjusters often are called to work in the event of such emergencies and may have to work 50 or 60 hours a week until all claims are resolved. Insurance investigators often work irregular hours because of the need to conduct surveillance and contact people who are not available during normal working hours. Early morning, evening, and weekend work is common. Some days, investigators will spend all day in the office doing database searches, making telephone calls, and writing reports. Other times, they may be away performing surveillance activities or interviewing witnesses. Some of the work can involve confrontation with claimants and others involved in a case, so the job can be stressful and dangerous.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement Training and entry requirements vary widely for claims adjusters, appraisers, examiners, and investigators. Although many in these occupations do not have a college degree, most companies prefer to hire college graduates. No specific college major is recommended, but a variety of backgrounds can be an asset. A claims adjuster, for example, who has a business or an accounting background might specialize in claims of financial loss due to strikes, equipment break­ downs, or damage to merchandise. College training in architecture or engineering is helpful in adjusting industrial claims, such as those involving damage from fires or other accidents. Some claims ad­ justers and examiners apply expertise acquired through specialized professional training to adjust claims. A legal background can be beneficial to someone handling workers’ compensation and prod­ uct liability cases. A medical background is useful for those exam­ iners working on medical and life insurance claims. Because they often work closely with claimants, witnesses, and other insurance professionals, claims adjusters and examiners must be able to communicate effectively with others. Knowledge of com­ puter applications also is extremely important. In addition, a valid driver’s license and a good driving record are required for workers for whom travel is an important aspect of their job. Some compa­ nies require applicants to pass a series of written aptitude tests de­ signed to measure communication, analytical, and general math­ ematical skills. Licensing requirements for these workers vary by State. Some States have very few requirements, while others require the comple­ tion of prelicensing education or a satisfactory score on a licensing exam. Completion of the requirements to earn a voluntary profes­ sional designation may in some cases be substituted for the exam requirement. In some States, claims adjusters employed by insur­ ance companies can work under the company license and need not become licensed themselves. Separate or additional requirements may apply for public adjusters. For example, some States require public adjusters to file a surety bond. Continuing education (CE) in claims is very important for claims adjusters, appraisers, examiners, and investigators because new Fed­ eral and State laws and court decisions frequently affect how claims are handled or who is covered by insurance policies. Also, examin­ ers working on life and health claims must be familiar with new medical procedures and prescription drugs. Some States that re­ quire licensing also require a certain number of CE credits per year in order to renew the license. These credits can be obtained from a number of sources. Many companies offer training sessions to in­ form their employees of industry changes. Many schools and asso­ ciations give courses and seminars on various topics having to with claims. Correspondence courses via the Internet are making long­ distance learning possible. Workers also can earn CE credits by writing articles for claims publications or by giving lectures and presentations. In addition, many adjusters and examiners choose to earn professional certifications and designations for independent recognition of their professional expertise. Although requirements for these designations vary, many entail at least 5 to 10 years’ expe­  Management and Business and Financial Operations Occupations 77 rience in the claims field and passing examinations; in addition, a certain number of CE credits must be earned each year to retain the designation. For auto damage appraiser jobs, insurance companies and inde­ pendent adjusting firms typically prefer to hire persons with experi­ ence as an estimator or manager of an auto-body repair shop. An appraiser must know how to repair vehicles in order to identify and estimate damage, and technical skills are essential. While auto dam­ age appraisers do not require a college education, most companies prefer to hire persons with formal training. Many vocational col­ leges offer 2-year programs in auto-body repair on how to estimate and repair damaged vehicles. Some States require auto damage appraisers to be licensed, and certification also may be required or preferred. Basic computer skills are an important qualification for many auto damage appraiser positions. As with adjusters and ex­ aminers, continuing education is important because of the continual introduction of new car models and repair techniques. Most insurance companies prefer to hire former law enforce­ ment officers or private investigators as insurance investigators. Many experienced claims adjusters or examiners also become in­ vestigators. Licensing requirements vary among States. Most em­ ployers look for individuals with ingenuity who are persistent and assertive. Investigators should not be afraid of confrontation, should communicate well, and should be able to think on their feet. Good interviewing and interrogation skills also are important and usually are acquired in earlier careers in law enforcement. Beginning claims adjusters, appraisers, examiners, and investi­ gators work on small claims under the supervision of an experi­ enced worker. As they learn more about claims investigation and settlement, they are assigned larger, more complex claims. Train­ ees are promoted as they demonstrate competence in handling as­ signments and progress in their coursework. Employees who dem­ onstrate competence in claims work or administrative skills may be promoted to more responsible managerial or administrative jobs. Similarly, claims investigators may rise to supervisor or manager of the investigations department. Once they achieve a certain level of expertise, many choose to start their own independent adjusting or auto damage appraising firms. Job Outlook Employment of claims adjusters, appraisers, examiners, and inves­ tigators is expected to grow about as fast as the average for all occu­ pations over the 2002-12 period. Opportunities will be best for those with a college degree. Numerous job openings also will result from the need to replace workers who transfer to other occupations or leave the labor force. Many insurance carriers are downsizing their claims staff in an effort to contain costs. Larger companies are relying more on cus­ tomer service representatives in call centers to handle the recording of the necessary details of the claim, allowing adjusters to spend more of their time investigating claims. New technology also is reducing the amount of time it takes for an adjuster to complete a claim, thereby increasing the number of claims that one adjuster can handle. However, as long as more insurance policies are being sold to accommodate a growing population, there will be a need for adjusters, appraisers, examiners, and investigators. Further, as the elderly population increases, there will be a greater need for healthcare, resulting in more claims. Despite recent gains in productivity resulting from technologi­ cal advances, these jobs are not easily automated. Adjusters still are needed to contact policyholders, inspect damaged property, and consult with experts. Although the number of claims in litigation and the number and complexity of insurance fraud cases are ex­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  pected to increase over the next decade, demand for insurance in­ vestigators is not expected to grow significantly, because technol­ ogy such as the Internet, which reduces the amount of time it takes to perform background checks, will allow investigators to handle more cases. Competition for investigator jobs will remain keen be­ cause the occupation attracts many qualified people, including re­ tirees from law enforcement and military careers, as well as experi­ enced claims adjusters and examiners who choose to get their investigator license. As with claims adjusters, examiners, and investigators, employ­ ment of auto damage appraisers should grow about as fast as the average for all occupations. Insurance companies and agents con­ tinue to sell growing numbers of auto insurance policies, leading to more claims being filed that require the attention of an auto damage appraiser. The work of this occupation is not easily automated, be­ cause most appraisals require an on-site inspection. However, em­ ployment growth will be limited by industry downsizing and the implementation of new technology that is making auto damage ap­ praisers more efficient. In addition, some insurance companies are opening their own repair facilities, which may reduce the need for auto damage appraisers. Earnings Earnings of claims adjusters, examiners, and investigators vary sig­ nificantly. Median annual earnings were $43,020 in 2002. The middle 50 percent earned between $ 33,120 and $ 56,170. The lowest 10 percent earned less than $ 26,680, and the highest 10 percent earned more than $ 71,350. Many claims adjusters, especially those who work for insurance companies, receive additional bonuses or benefits as part of their job. Adjusters often are furnished a laptop computer, a cellular tele­ phone, and a company car or are reimbursed for the use of their own vehicle for business purposes. Median annual earnings of auto damage insurance appraisers were $42,630 in 2002. The middle 50 percent earned between $34,570 and $52,360. The lowest 10 percent earned less than $27,410, and the highest 10 percent earned more than $60,470. Related Occupations Property-casualty insurance adjusters and life and health insurance examiners must determine the validity of a claim and negotiate a settlement. They also are responsible for determining how much to reimburse the client. Occupations similar to those of claims adjust­ ers, appraisers, examiners, and investigators include cost estima­ tors; bill and account collectors; medical records and health infor­ mation technicians; billing and posting clerks; and credit authorizes, checkers, and clerks, as well as bookkeeping, accounting, and au­ diting clerks. In determining the validity of a claim, insurance adjusters must inspect the damage in order to assess the magnitude of the loss. Workers who perform similar duties include fire inspectors and in­ vestigators and construction and building inspectors. To ensure that company practices and procedures are followed, property and casualty examiners review insurance claims to which a claims adjuster has already proposed a settlement. Others in occu­ pations that review documents for accuracy and compliance with a given set of rules and regulations are tax examiners and revenue agents, as well as accountants and auditors. Insurance investigators detect and investigate fraudulent claims and criminal activity. Their work is similar to that of private detec­ tives and investigators. Like automotive body and related repairers and automotive ser­ vice technicians and mechanics, auto damage appraisers must be  78 Occupational Outlook Handbook familiar with the structure and functions of various automobiles and their parts. Sources of Additional Information General information about a career as a claims adjuster, an appraiser, an examiner, or an investigator is available from the home offices of many life, health, and property and casualty insurance companies. Information about licensing requirements for claims adjusters may be obtained from the department of insurance in each State. For information about professional designation and training pro­ grams, contact: >- Insurance Institute of America, 720 Providence Rd., P.O. Box 3016, Malvern, PA 19355-0716. Internet: http://www.aicpcu.org >- The American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010-2196. Internet: http://www.amercoll.edu >- International Claim Association, 1255 23rd St., NW., Washington, DC 20037. Internet: http://www.claim.org  Information on careers in auto damage appraising can be ob­ tained from > Independent Automotive Damage Appraisers Association, P.O. Box 12291 Columbus, GA 31917-2291. Internet: http://www.iada.org  Cost Estimators (0*NET 13-1051.00)  Significant Points •  • •  Over half work in the construction industry and another 20 percent are employed in manufacturing industries. Growth of the construction industry will be the driving force behind the demand for cost estimators. In construction and manufacturing, job prospects should be best for those with industry work experience and a bachelor’s degree in a related field.  Nature of the Work Accurately forecasting the cost of future projects is vital to the sur­ vival of any business. Cost estimators develop the cost information that business owners or managers need to make a bid for a contract or to determine if a proposed new product will be profitable. They also determine which endeavors are making a profit. Regardless of the industry in which they work, estimators com­ pile and analyze data on all of the factors that can influence costs— such as materials, labor, location, and special machinery require­ ments, including computer hardware and software. Job duties vary widely depending on the type and size of the project. The methods of and motivations for estimating costs can differ greatly by industry. On a construction project, for example, the estimating process begins with the decision to submit a bid. After reviewing various preliminary drawings and specifications, the es­ timator visits the site of the proposed project. The estimator needs to gather information on access to the site and availability of elec­ tricity, water, and other services, as well as on surface topography and drainage. The information developed during the site visit usu­ ally is recorded in a signed report that is included in the final project estimate. After the site visit is completed, the estimator determines the quantity of materials and labor the firm will need to furnish. This process, called the quantity survey or “takeoff,” involves complet­ ing standard estimating forms, filling in dimensions, number of units,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and other information. A cost estimator working for a general con­ tractor, for example, will estimate the costs of all items the contrac­ tor must provide. Although subcontractors will estimate their costs as part of their own bidding process, the general contractor’s cost estimator often analyzes bids made by subcontractors as well. Also during the takeoff process, the estimator must make decisions con­ cerning equipment needs, sequence of operations, crew size, and physical constraints at the site. Allowances for the waste of materi­ als, inclement weather, shipping delays, and other factors that may increase costs also must be incorporated in the estimate. On completion of the quantity surveys, the estimator prepares a cost summary for the entire project, including the costs of labor, equipment, materials, subcontracts, overhead, taxes, insurance, markup, and any other costs that may affect the project. The chief estimator then prepares the bid proposal for submission to the owner. Construction cost estimators also may be employed by the project’s architect or owner to estimate costs or to track actual costs relative to bid specifications as the project develops. In large con­ struction companies employing more than one estimator, it is com­ mon practice for estimators to specialize. For example, one may estimate only electrical work and another may concentrate on exca­ vation, concrete, and forms. In manufacturing and other firms, cost estimators usually are assigned to the engineering, cost, or pricing departments. The esti­ mators’ goal in manufacturing is to accurately estimate the costs associated with making products. The job may begin when man­ agement requests an estimate of the costs associated with a major redesign of an existing product or the development of a new prod­ uct or production process. When estimating the cost of developing a new product, for example, the estimator works with engineers, first reviewing blueprints or conceptual drawings to determine the machining operations, tools, gauges, and materials that would be required for the job. The estimator then prepares a parts list and determines whether it is more efficient to produce or to purchase the parts. To do this, the estimator must initiate inquiries for price information from potential suppliers. The next step is to determine the cost of manufacturing each component of the product. Some high-technology products require a tremendous amount of computer programming during the design phase. The cost of software devel­ opment is one of the fastest growing and most difficult activities to estimate. Some cost estimators now specialize in estimating only computer software development and related costs. The cost estimator then prepares time-phase charts and learning curves. Time-phase charts indicate the time required for tool de­ sign and fabrication, tool “debugging”—finding and correcting all problems—manufacturing of parts, assembly, and testing. Learn­ ing curves graphically represent the rate at which performance im­ proves with practice. These curves are commonly called “cost re­ duction” curves because many problems—such as engineering changes, rework, parts shortages, and lack of operator skills—di­ minish as the number of parts produced increases, resulting in lower unit costs. Using all of this information, the estimator then calculates the standard labor hours necessary to produce a predetermined number of units. Standard labor hours are then converted to dollar values, to which are added factors for waste, overhead, and profit to yield the unit cost in dollars. The estimator then compares the cost of purchasing parts with the firm’s cost of manufacturing them to de­ termine which is cheaper. Computers play an integral role in cost estimation because esti­ mating often involves complex mathematical calculations and re­ quires advanced mathematical techniques. For example, to under­ take a parametric analysis (a process used to estimate project costs  Management and Business and Financial Operations Occupations 79 Although estimators normally work a 40-hour week, overtime is common. Cost estimators often work under pressure and stress, especially when facing bid deadlines. Inaccurate estimating can cause a firm to lose out on a bid or to lose money on a job that was not accurately estimated.  Employment Cost estimators held about 188,000 jobs in 2002. About 53 percent were in the construction industry, and another 20 percent were in manufacturing industries. The remainder worked in a wide range of other industries. Cost estimators work throughout the country, usually in or near major industrial, commercial, and government centers, and in cities and suburban areas undergoing rapid change or development.  Vb fjK■;n"rp  Cost estimators develop and analyze data on factors that influence costs in order to determine whether a proposed new product or contract will be profitable. on a per unit basis, subject to the specific requirements of a project), cost estimators use a computer database containing information on costs and conditions of many other similar projects. Although com­ puters cannot be used for the entire estimating process, they can relieve estimators of much of the drudgery associated with routine, repetitive, and time-consuming calculations. Computers also are used to produce all of the necessary documentation with the help of word-processing and spreadsheet software, leaving estimators more time to study and analyze projects. Operations research, production control, cost, and price analysts who work for government agencies may do significant amounts of cost estimating in the course of their regular duties. In addition, the duties of construction managers also may include estimating costs. (For more information, see the statements on operations research analysts and construction managers elsewhere in the Handbook.)  Working Conditions Although estimators spend most of their time in an office, construc­ tion estimators must make visits to project worksites that can be dusty, dirty, and occasionally hazardous. Likewise, estimators in manufacturing must spend time on the factory floor where it also can be noisy and dirty. In some industries, frequent travel between a firm’s headquarters and its subsidiaries or subcontractors may be required.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement Job entry requirements for cost estimators vary by industry. In the construction industry, employers increasingly prefer individuals with a degree in building construction, construction management, con­ struction science, engineering, or architecture. However, most con­ struction estimators also have considerable construction experience, gained through work in the industry, internships, or cooperative education programs. Applicants with a thorough knowledge of con­ struction materials, costs, and procedures in areas ranging from heavy construction to electrical work, plumbing systems, or masonry work have a competitive edge. In manufacturing industries, employers prefer to hire individu­ als with a degree in engineering, physical science, operations re­ search, mathematics, or statistics; or in accounting, finance, busi­ ness, economics, or a related subject. In most industries, great emphasis is placed on experience involving quantitative techniques. Cost estimators should have an aptitude for mathematics, be able to quickly analyze, compare, and interpret detailed and some­ times poorly defined information, and be able to make sound and accurate judgments based on this knowledge. Assertiveness and self-confidence in presenting and supporting their conclusions are important, as are strong communications and interpersonal skills, because estimators may work as part of a project team alongside managers, owners, engineers, and design professionals. Cost esti­ mators also need knowledge of computers, including word-pro­ cessing and spreadsheet packages. In some instances, familiarity with special estimation software or programming skills also may be required. Regardless of their background, estimators receive much train­ ing on the job because every company has its own way of handling estimates. Working with an experienced estimator, they become familiar with each step in the process. Those with no experience reading construction specifications or blueprints first learn that as­ pect of the work. They then may accompany an experienced esti­ mator to the construction site or shop floor, where they observe the work being done, take measurements, or perform other routine tasks. As they become more knowledgeable, estimators learn how to tabu­ late quantities and dimensions from drawings and how to select the appropriate material prices. For most estimators, advancement takes the form of higher pay and prestige. Some move into management positions, such as project manager for a construction firm or manager of the indus­ trial engineering department for a manufacturer. Others may go into business for themselves as consultants, providing estimating services for a fee to government or to construction or manufactur­ ing firms.  80 Occupational Outlook Handbook Many colleges and universities include cost estimating as part of bachelor’s and associate degree curriculums in civil engineer­ ing, industrial engineering, and construction management or construction engineering technology. In addition, cost estimating is a significant part of many master’s degree programs in construc­ tion science or construction management. Organizations repre­ senting cost estimators, such as the Association for the Advance­ ment of Cost Engineering (AACE International) and the Society of Cost Estimating and Analysis (SCEA), also sponsor educational and professional development programs. These programs help stu­ dents, estimators-in-training, and experienced estimators stay abreast of changes affecting the profession. Specialized courses and programs in cost estimating techniques and procedures also are offered by many technical schools, community colleges, and universities. Voluntary certification can be valuable to cost estimators because it provides professional recognition of the estimator’s competence and experience. In some instances, individual employers may even require professional certification for employment. Both AACE In­ ternational and SCEA administer certification programs. To be­ come certified, estimators usually must have between 2 and 8 years of estimating experience and must pass an examination. In addi­ tion, certification requirements may include publication of at least one article or paper in the field.  Median annual earnings in the industries employing the largest num­ bers of cost estimators in 2002 were:  Job Outlook Overall employment of cost estimators is expected to grow about as fast as the average for all occupations through the year 2012. In addition to openings created by growth, some job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. In construction and manufacturing—the primary employers of cost estimators—job prospects should be best for those with industry work experience and a bachelor’s degree in a related field. Growth of the construction industry, in which 53 percent of all cost estimators are employed, will be the driving force behind the demand for these workers. Construction and repair of highways, streets, and bridges, as well as construction of more subway sys­ tems, airports, water and sewage systems, and electric power plants and transmission lines, will stimulate demand for many more cost estimators. The increasing population and its changing demograph­ ics that will boost the demand for residential construction and re­ modeling also will spur demand for cost estimators. As the popula­ tion ages, the demand for nursing and extended care facilities will increase. School constmction and repair also will add to the de­ mand for cost estimators. Job prospects in construction should be best for cost estimators with a degree in construction management or construction science, engineering, or architecture, and who have practical experience in various phases of construction or in a spe­ cialty craft area. Employment of cost estimators in manufacturing will also grow, but not as fast as in construction as firms continue to use their ser­ vices to identify and control operating costs. Experienced estima­ tors with degrees in engineering, science, mathematics, business administration, or economics should have the best job prospects in manufacturing.  Sources of Additional Information Information about career opportunities, certification, educational programs, and cost estimating techniques may be obtained from:  Earnings Salaries of cost estimators vary widely by experience, education, size of firm, and industry. Median annual earnings of cost estima­ tors in 2002 were $47,550. The middle 50 percent earned between $36,440 and $62,040. The lowest 10 percent earned less than $28,670, and the highest 10 percent earned more than $79,240.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nonresidential building construction............................................... Building equipment contractors........................................................ Foundation, structure, and building exterior contractors............. Residential building constmction..................................................... Building finishing contractors...........................................................  $53,820 50,240 47,630 47,180 45,630  College graduates with degrees in fields that provide a strong background in cost estimating, such as engineering or construction management, could start at a higher level. According to a 2003 salary survey by the National Association of Colleges and Employ­ ers, bachelor’s degree candidates with degrees in construction sci­ ence/management received job offers averaging $42,229 a year. Related Occupations Other workers who quantitatively analyze information include ac­ countants and auditors; budget analysts; claims adjusters, apprais­ ers, examiners, and investigators; economists; financial analysts and personal financial advisors; insurance underwriters; loan counse­ lors and officers; market and survey researchers; and operations re­ search analysts. In addition, the duties of industrial production managers and construction managers also may involve analyzing costs.  >■ Association for the Advancement of Cost Engineering (AACE Interna­ tional), 209 Prairie Ave., Suite 100, Morgantown, WV 26501. Internet: http://www.aacei.org > Society of Cost Estimating and Analysis, 101 S. Whiting St., Suite 201, Alexandria, VA 22304. Internet: http://www.sceaonline.net  Financial Analysts and Personal Financial Advisors (0*NET 13-2051.00, 13-2052.00)  Significant Points •  •  •  A college degree and good interpersonal skills are among the most important qualifications for these workers. Although both occupations will benefit from an increase in investing by individuals, personal financial advisors will benefit more. Financial analysts will face keen competition for jobs, especially at top securities firms, where pay can be lucrative.  Nature of the Work Financial analysts and personal financial advisors provide analysis and guidance to businesses and individuals to help them with their investment decisions. Both types of specialist gather financial in­ formation, analyze it, and make recommendations to their clients. However, their job duties differ because of the type of investment information they provide and the clients they work for. Financial analysts assess the economic performance of companies and indus­ tries for firms and institutions with money to invest. Personal fi­ nancial advisors generally assess the financial needs of individuals, providing them a wide range of options.  Management and Business and Financial Operations Occupations 81  \  LJ  Financial analysts and personal financial advisors gather and analyze information, and then make recommendations to businesses or individuals with money to invest. Financial analysts, also called securities analysts and investment analysts, work for banks, insurance companies, mutual and pension funds, securities firms, and other businesses, helping these compa­ nies or their clients make investment decisions. Financial analysts read company financial statements and analyze commodity prices, sales, costs, expenses, and tax rates in order to determine a company’s value and project future earnings. They often meet with company officials to gain a better insight into a company’s prospects and to determine the company’s managerial effectiveness. Usually, finan­ cial analysts study an entire industry, assessing current trends in business practices, products, and industry competition. They must keep abreast of new regulations or policies that may affect the in­ dustry, as well as monitor the economy to determine its effect on earnings. Financial analysts use spreadsheet and statistical software pack­ ages to analyze financial data, spot trends, and develop forecasts. On the basis of their results, they write reports and make presenta­ tions, usually making recommendations to buy or sell a particular investment or security. Senior analysts may actually make the de­ cision to buy or sell for the company or client if they are the ones responsible for managing the assets. Other analysts use the data to measure the financial risks associated with making a particular in­ vestment decision. Financial analysts in investment banking departments of securi­ ties or banking firms often work in teams, analyzing the future pros­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  pects of companies that want to sell shares to the public for the first time. They also ensure that the forms and written materials neces­ sary for compliance with Securities and Exchange Commission regu­ lations are accurate and complete. They may make presentations to prospective investors about the merits of investing in the new com­ pany. Financial analysts also work in mergers and acquisitions de­ partments, preparing analyses on the costs and benefits of a pro­ posed merger or takeover. Some financial analysts, called ratings analysts, evaluate the ability of companies or governments that issue bonds to repay their debt. On the basis of their evaluation, a management team assigns a rating to a company’s or government’s bonds. Other financial analysts perform budget, cost, and credit analysis as part of their responsibilities. Personal financial advisors, also called financial planners or financial consultants, use their knowledge of investments, tax laws, and insurance to recommend financial options to individuals in accordance with their short-term and long-term goals. Some of the issues that planners address are retirement and estate planning, funding for college, and general investment options. While most planners offer advice on a wide range of topics, some specialize in areas such as retirement and estate planning or risk management. An advisor’s work begins with a consultation with the client, from whom the advisor obtains information on the client’s finances and financial goals. The advisor then develops a comprehensive financial plan that identifies problem areas, makes recommenda­ tions for improvement, and selects appropriate investments com­ patible with the client’s goals, attitude toward risk, and expectation or need for a return on the investment. Sometimes this plan is writ­ ten, but, more often, it is in the form of verbal advice. Financial advisors usually meet with established clients at least once a year to update them on potential investments and to determine whether the clients have been through any life changes—such as marriage, dis­ ability, or retirement—that might affect their financial goals. Fi­ nancial advisors also answer questions from clients regarding changes in benefit plans or the consequences of a change in their job or career. Some advisors buy and sell financial products, such as mutual funds or insurance, or refer clients to other companies for products and services—for example, the preparation of taxes or wills. A number of advisors take on the responsibility of managing the cli­ ents’ investments for them. Finding clients and building a customer base is one of the most important parts of a financial advisor’s job. Referrals from satis­ fied clients are an important source of new business. Many advi­ sors also contact potential clients by giving seminars or lectures or meet clients through business and social contacts.  Working Conditions Financial analysts and personal financial advisors usually work in­ doors in safe, comfortable offices or their own homes. Many of these workers enjoy the challenge of helping firms or people make financial decisions. However, financial analysts may face long hours, frequent travel to visit companies and talk to potential investors, and the pressure of deadlines. Much of their research must be done after office hours, because their day is filled with telephone calls and meetings. Personal financial advisors usually work standard business hours, but they also schedule meetings with clients in the evenings or on weekends. Many teach evening classes or hold semi­ nars in order to bring in more clients.  82 Occupational Outlook Handbook Employment Financial analysts and personal financial advisors held 298,000 jobs in 2002; financial analysts accounted for almost 6 in 10 of the total. Many financial analysts work at the headquarters of large financial companies, several of which are based in New York City. Nineteen percent of financial analysts work for securities and commodity bro­ kers, exchanges, and investment services firms; and 17 percent work for depository and nondepository institutions, including banks, savings institutions, and mortgage bankers and brokers. The re­ mainder work primarily for insurance carriers; accounting, tax prepa­ ration, bookkeeping, and payroll services; management, scientific, and technical consulting services; and State and local government agencies. Approximately 38 percent of personal financial advisors are selfemployed, operating small investment advisory firms, usually in urban areas. About 31 percent of personal financial advisors are employed by securities and commodity brokers, exchanges, and in­ vestment services firms. Another 14 percent are employed by de­ pository and nondepository institutions, including banks, savings institutions, and credit unions. A small number work for insurance carriers and insurance agents, brokers, and services. Training, Other Qualifications, and Advancement A college education is required for financial analysts and is strongly preferred for personal financial advisors. Most companies require financial analysts to have at least a bachelor’s degree in business administration, accounting, statistics, or finance. Coursework in statistics, economics, and business is required, and knowledge of accounting policies and procedures, corporate budgeting, and fi­ nancial analysis methods is recommended. A master of business administration is desirable. Advanced courses in options pricing or bond valuation and knowledge of risk management also are suggested. Employers usually do not require a specific field of study for personal financial advisors, but a bachelor’s degree in accounting, finance, economics, business, mathematics, or law provides good preparation for the occupation. Courses in investments, taxes, es­ tate planning, and risk management also are helpful. Programs in financial planning are becoming more widely available in colleges and universities. However, many financial planners enter the field after working in a related occupation, such as accountant, auditor, insurance sales agent, lawyer, or securities, commodities, and fi­ nancial services sales agent. Mathematical, computer, analytical, and problem-solving skills are essential qualifications for financial analysts and personal fi­ nancial advisors. Good communication skills also are necessary, because these workers must present complex financial concepts and strategies in easy-to-understand language to clients and other pro­ fessionals. Self-confidence, maturity, and the ability to work inde­ pendently are important as well. Financial analysts must be detail oriented, motivated to seek out obscure information, and familiar with the workings of the economy, tax laws, and money markets. Strong interpersonal skills and sales ability are crucial to the success of both financial analysts and per­ sonal financial advisors. Although not required for financial analysts or personal finan­ cial advisors to practice, certification can enhance one’s professional standing and is strongly recommended by many financial compa­ nies. Financial analysts may receive the title Chartered Financial Analyst (CFA), sponsored by the Association of Investment Man­ agement and Research. To qualify for CFA designation, applicants must hold a bachelor’s degree, must have 3 years of work experi­ ence in a related field, and must pass a series of three examinations.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  The essay exams, administered once a year for 3 years, cover sub­ jects such as accounting, economics, securities analysis, asset valu­ ation, and portfolio management. Personal financial advisors may obtain the Certified Financial Planner credential, often referred to as CFP (R), demonstrating to potential customers that a planner has extensive training and com­ petency in the area of financial planning. The CFP (R) certifica­ tion, issued by the Certified Financial Planner Board of Standards, Inc., requires relevant experience, the completion of education re­ quirements, the passage of a comprehensive examination, and ad­ herence to an enforceable code of ethics. Personal financial advi­ sors may also obtain the Chartered Financial Consultant (ChFC) designation, issued by the American College in Bryn Mawr, Penn­ sylvania, which requires experience and the completion of an eightcourse program of study. Both designations have a continuing edu­ cation requirement. A license is not required to work as a personal financial advisor, but advisors who sell stocks, bonds, mutual funds, insurance, or real estate may need licenses to perform these additional services. Also, if legal advice is provided, a license to practice law may be required. Financial advisors who do not provide these additional services often refer clients to those qualified to provide them. Financial analysts may advance by becoming portfolio manag­ ers or financial managers, directing the investment portfolios of their companies or of clients. Personal financial advisors who work in firms also may move into managerial positions, but most advisors advance by accumulating clients and managing more assets. Job Outlook Increased investment by businesses and individuals is expected to result in faster-than-average employment growth of financial ana­ lysts and personal financial advisors through 2012. Both occupa­ tions will benefit as baby boomers save for retirement and as a gen­ erally better educated and wealthier population requires investment advice. In addition, people are living longer and must plan to fi­ nance more years of retirement. The globalization of the securities markets will increase the need for analysts and advisors to help in­ vestors make financial choices. Deregulation of the financial services industry is also expected to spur demand for financial analysts and personal financial advi­ sors. Since 1999, banks, insurance companies, and brokerage firms have been allowed to broaden their financial services. Many firms are adding investment advice to their list of services and are ex­ pected to increase their hiring of personal financial advisors. Nu­ merous banks are now entering the securities brokerage and invest­ ment banking fields and will increasingly need the skills of financial analysts in these areas. Employment of personal financial advisors is expected to grow faster than the average for all occupations through the year 2012. The rapid expansion of self-directed retirement plans, such as 401(k) plans, is expected to continue. As the number and complexity of investments rises, more individuals will look to financial advisors to help manage their money. Financial advisors who have either the CFP (R) certification or ChFC designation are expected to have the best opportunities. Employment of financial analysts is expected to grow about as fast as the average for all occupations through the year 2012. As the number of mutual funds and the amount of assets invested in the funds increase, mutual-fund companies will need increased num­ bers of financial analysts to recommend which financial products the funds should buy or sell. Financial analysts also will be needed in the investment banking field, where they help companies raise money and work on corpo­  Management and Business and Financial Operations Occupations 83 rate mergers and acquisitions. However, growth in demand for fi­ nancial analysts to do company research will be constrained by the implementation of reform proposals calling for investment firms to subsidize independent research boutiques and separate research from investment banking. Firms may try to contain the costs of reform by eliminating research jobs. Demand for financial analysts in investment banking fluctuates because investment banking is sensitive to changes in the stock market. In addition, further consolidation in the financial services industry may eliminate some financial analyst positions, dampen­ ing overall employment growth somewhat. Competition is expected to be keen for these highly lucrative positions, with many more ap­ plicants than jobs.  For information about the Chartered Financial Consultant (ChFC) designation, contact:  Earnings Median annual earnings of financial analysts were $57,100 in 2002. The middle 50 percent earned between $43,660 and $76,620. The lowest 10 percent earned less than $34,570, and the highest 10 per­ cent earned more than $108,060. Median annual earnings in the industries employing the largest numbers of financial analysts in 2002 were as follows:  (0*NET 13-2053.00)  Other financial investment activities................................................ Management of companies and enterprises................................... Securities and commodity contracts intermediation and brokerage.......................................................................................... Nondepository credit intermediation............................................... Depository credit intermediation......................................................  $74,860 60,670 58,540 51,700 51,570  Median annual earnings of personal financial advisors were $56,680 in 2002. The middle 50 percent earned between $36,180 and $100,540. Median annual earnings in the industries employing the largest number of personal financial advisors in 2002 were as follows: Other financial investment activities................................................ Securities and commodity contracts intermediation and brokerage.......................................................................................... Depository credit intermediation......................................................  $74,260 68,110 51,030  Many financial analysts receive a bonus in addition to their sal­ ary, and the bonus can add substantially to their earnings. Usually, the bonus is based on how well their predictions compare to the actual performance of a benchmark investment. Personal financial advisors who work for financial services firms are generally paid a salary plus bonus. Advisors who work for financial-planning firms or who are self-employed either charge hourly fees for their ser­ vices or charge one set fee for a comprehensive plan, based on its complexity. Advisors who manage a client’s assets usually charge a percentage of those assets. A majority of advisors receive commis­ sions for financial products they sell, in addition to charging a fee. Related Occupations Other jobs requiring expertise in finance and investment or in the sales of financial products include accountants and auditors; finan­ cial managers; insurance sales agents; real estate brokers and sales agents; and securities, commodities, and financial services sales rep­ resentatives. Sources of Additional Information For information on a career in financial planning, contact: ► The Financial Planning Association, 4100 E. Mississippi Ave., Denver, CO 80246-3053. Internet: http://www.fpanet.org  For information about the Certified Financial Planner, CFP (R), certification, contact: >- Certified Financial Planner Board of Standards, Inc., 1670 Broadway, Suite 600, Denver, CO 80202-4809. Internet: http://www.cfp.net/become   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  >• The American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010. Internet: http://www.amercoll.edu  For information on a career as a financial analyst, contact: >- American Academy of Financial Management, 102 Beverly Dr., Metairie, LA 70001. Internet: http://www.financialanalyst.org >- Association of Investment Management and Research, P.O. Box 3668, 560 Ray C. Hunt Dr., Charlottesville, VA 22903. Internet: http://www.aimr.org  Insurance Underwriters Significant Points •  •  Because insurance is considered a necessity for people and businesses, there will always be a need for underwriters. Most large insurance companies prefer college graduates who have a degree in business administration or finance with courses in accounting; however, a bachelor’s degree in any field—plus courses in business law and accounting—may be sufficient to qualify.  Nature of the Work Insurance companies protect individuals and organizations from fi­ nancial loss by assuming billions of dollars in risks each year. Un­ derwriters are needed to identify and calculate the risk of loss from policyholders, establish appropriate premium rates, and write poli­ cies that cover these risks. An insurance company may lose busi­ ness to competitors if the underwriter appraises risks too conserva­ tively, or it may have to pay excessive claims if the underwriting actions are too liberal. With the aid of computers, underwriters analyze information in insurance applications to determine if a risk is acceptable and will not result in a loss. Applications are often supplemented with re­ ports from loss-control consultants, medical reports, data vendors, and actuarial studies. Underwriters then must decide whether to issue the policy and the appropriate premium to charge. In making this determination, underwriters serve as the main link between the insurance carrier and the insurance agent. On occasion, they ac­ company sales agents to make presentations to prospective clients. Technology plays an important role in an underwriter’s job. Underwriters use computer applications called “smart systems” to manage risks more efficiently and accurately. These systems auto­ matically analyze and rate insurance applications, recommend ac­ ceptance or denial of the risk, and adjust the premium rate in accor­ dance with the risk. With these systems, underwriters are better equipped to make sound decisions and avoid excessive losses. The Internet also has affected the work of underwriters. Many insurance carriers’ computer systems are now linked to different databases on the Internet that allow immediate access to informa­ tion—such as driving records—necessary in determining a poten­ tial client’s risk. This reduces the amount of time and paperwork necessary for an underwriter to complete a risk assessment. Most underwriters specialize in one of three major categories of insurance—life, health, or property and casualty. Life and health insurance underwriters may further specialize in group or individual policies.  84 Occupational Outlook Handbook of regional branch offices of the insurance company. These under­ writers usually have the authority to underwrite most risks and de­ termine an appropriate rating without consulting the home office.  HP* Insurance underwriters review insurance applications and decide whether to issue a policy. Property and casualty underwriters usually specialize in either commercial or personal insurance, and then by type of risk insured, such as fire, homeowners, automobile, marine, liability, or workers’ compensation. In cases where casualty companies provide insur­ ance through a single “package” policy, covering various types of risks, the underwriter must be familiar with different lines of insur­ ance. For business insurance, the underwriter often must be able to evaluate the firm’s entire operation in appraising its application for insurance. An increasing proportion of insurance sales, particularly in life and health insurance, is being made through group contracts. A standard group policy insures everyone in a specified group through a single contract at a standard premium rate. The group under­ writer analyzes the overall composition of the group to assure that the total risk is not excessive. Another type of group policy pro­ vides members of a group—a labor union, for example—with indi­ vidual policies reflecting their needs. These usually are casualty policies, such as those covering automobiles. The casualty under­ writer analyzes the application of each group member and makes individual appraisals. Some group underwriters meet with union or employer representatives to discuss the types of policies available to their group. Working Conditions Underwriters have desk jobs that require no unusual physical activ­ ity. Their offices usually are comfortable and pleasant. Although underwriters typically work a standard 40-hour week, more are working longer hours due to the downsizing of many insurance com­ panies. Most underwriters are based in a home or regional branch office, but they occasionally attend meetings away from home for several days. Construction and marine underwriters frequently travel to inspect worksites and assess risks. Employment Insurance underwriters held about 102,000 jobs in 2002. The ma­ jority of underwriters—about 64 percent—work for insurance com­ panies called “carriers.” Most of the remaining underwriters work in insurance agencies or for organizations that offer insurance ser­ vices to insurance companies and policyholders. A small number of underwriters work in agencies owned and operated by banks, mortgage companies, and real estate firms. Most underwriters are based in the insurance company’s home office, but some, mostly in the property and casualty area, work out  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement For entry-level underwriting jobs, most large insurance companies prefer college graduates who have a degree in business administra­ tion or finance, with courses or experience in accounting. How­ ever, a bachelor’s degree in almost any field—plus courses in busi­ ness law and accounting—provides a good general background and may be sufficient to qualify. Because computers are an integral part of most underwriters’ jobs, computer skills are essential. New employees usually start as underwriter trainees or assistant underwriters. They may help collect information on applicants and evaluate routine applications under the supervision of an experi­ enced risk analyst. Property and casualty trainees study claims files to become familiar with factors associated with certain types of losses. Many larger insurers offer work-study training programs, lasting from a few months to a year. As trainees gain experience, they are assigned policy applications that are more complex and cover greater risks. These require the use of computers for more efficient analysis and processing. Underwriting can be a satisfying career for people who enjoy analyzing information and paying attention to detail. In addition, underwriters must possess good judgment in order to make sound decisions. Excellent communication and interpersonal skills also are essential, as much of the underwriter’s work involves dealing with agents and other insurance professionals. Continuing education is necessary for advancement. Insurance companies usually pay tuition for underwriting courses that their trainees successfully complete; some also offer salary incentives. Independent study programs for experienced property and casu­ alty underwriters also are available. The Insurance Institute of America offers a program called “Introduction to Underwriting” for beginning underwriters, and the specialty designation, Associ­ ate in Commercial Underwriting (AU), the second formal step in developing a career in underwriting business insurance policies. Those interested in developing a career underwriting personal in­ surance policies may earn the Associate in Personal Insurance (API) designation. To earn either the AU or API designation, underwrit­ ers complete a series of courses and examinations that generally lasts 1 to 2 years. The American Institute for Chartered Property Casualty Under­ writers awards the designation Chartered Property and Casualty Underwriter, or CPCU, the third and final stage of development for an underwriter. Earning the more advanced CPCU designation takes about four years, and requires passing eight examinations covering risk management; insurance operations and regulations; business and insurance law; financial management; financial institutions; and a three course concentration in either personal or commercial insur­ ance coverage. Although the CPCU may be mainly for underwrit­ ers, it is also meant for everyone working in all aspects of property and casualty insurance. The American College offers the Chartered Life Underwriter (CLU) designation and the Registered Health Underwriter (RHU) designation for all life and health insurance professionals. Experienced underwriters who complete courses of study may advance to senior underwriter or underwriting manager positions. Some underwriting managers are promoted to senior managerial jobs. Some employers require a master’s degree to achieve this level. Other underwriters are attracted to the earnings potential of sales and therefore obtain State licenses to sell insurance and re­ lated financial products as agents or brokers.  Management and Business and Financial Operations Occupations 85 Job Outlook Employment of underwriters is expected to grow as fast as the aver­ age for all occupations through 2012. Underwriting software will continue to make workers more productive; however, because com­ puter software does not do away with the need for human skills, underwriter employment will increase as economic and population growth result in increased insurance needs by businesses and indi­ viduals. In addition, job openings will be generated to replace un­ derwriters who transfer or leave the occupation. Insurance carriers are always assessing new risks and offering policies to meet changing circumstances. Underwriters are particu­ larly needed in the area of product development, where underwrit­ ers assess risks and set the premiums for new lines of insurance. One new line of insurance being offered by life insurance carriers that may provide job opportunities for underwriters is long term care insurance. Demand for underwriters is also expected to improve as insur­ ance carriers try to restore profitability to make up for an unusually large number of underwriting losses in recent years. As the carri­ ers’ returns on their investments have declined, insurers are placing more emphasis on underwriting to generate revenues. This renewed interest in underwriting will result in favorable job opportunities for underwriters in the near term. Employment of underwriters has historically been relatively steady. Overall, the best prospects for underwriter jobs will be for persons with the right skills and credentials, such as excellent com­ puter and communication skills coupled with a background in fi­ nance. Because insurance is considered a necessity for people and businesses, there will always be a need for underwriters. It is a profession that is less subject to recession and layoffs than other fields. Earnings v Median annual earnings of insurance underwriters were $45,590 in 2002. The middle 50 percent earned between $35,190 and $60,890 a year. The lowest 10 percent earned less than $28,840, while the highest 10 percent earned over $79,400. Median annual earnings in insurance carriers were $46,690, while earnings in agencies, bro­ kerages, and other insurance related activities were $43,560. Insurance companies usually provide better than average ben­ efits, including employer-financed group life and health insurance, and retirement plans. Related Occupations Underwriters make decisions on the basis of financial and statisti­ cal data. Other workers with the same type of responsibility in­ clude accountants and auditors, actuaries, budget analysts, cost es­ timators, financial analysts and personal financial advisors, financial managers, loan counselors and officers, and credit analysts. Other related jobs in the insurance industry include insurance sales agents and claims adjusters, appraisers, examiners, and investigators. Sources of Additional Information Information about a career as an insurance underwriter is available from the home offices of many life, health, and property-casualty insurance companies. Information about the property-casualty insurance field can be obtained by contacting: >- The Insurance Information Institute, 110 William St., New York, NY 10038. Internet: http://www.iii.org  Information on careers in the life insurance field can be obtained from: >• LIMRA International, P.O. Box 203, Hartford, CT 06141.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Information on the underwriting function and the CPCU and AU designations can be obtained from: > The American Institute for Chartered Property and Casualty Underwrit­ ers/Insurance Institute of America, 720 Providence Rd., P.O. Box 3016, Malvern, PA 19355-0716. Internet: http://www.aicpcu.org  Information on the CLU and RHU designations can be obtained from: >- The American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA, 19010-2196. Internet: http://www.amercoll.edu  Loan Counselors and Officers (0*NET 13-2071.00, 13-2072.00)  Significant Points •  •  •  Loan officer positions generally require a bachelor’s degree in finance, economics, or a related field; training or experience in banking, lending, or sales is advantageous. Average employment growth is expected for loan officers despite rising demand for loans, because technology is making loan processing and approval simpler and faster. Earnings often fluctuate with the number of loans generated, rising substantially when the economy is good and interest rates are low.  Nature of the Work For many individuals, taking out a loan may be the only way to afford a house, car, or college education. For businesses, loans like­ wise are essential to start many companies, purchase inventory, or invest in capital equipment. Loan officers facilitate this lending by finding potential clients and assisting them in applying for loans. Loan officers also gather personal information about clients and businesses to ensure that an informed decision is made regarding the creditworthiness of the borrower and the probability of repay­ ment Loan counselors provide guidance to prospective loan appli­ cants who have problems qualifying for traditional loans. The guid­ ance they provide may include determining the most appropriate type of loan for a particular customer, and explaining specific re­ ' quirements and restrictions associated with the loan. Some of the functions of a loan counselor also may be performed by a loan of­ ficer. Within some institutions, such as credit unions, loan counse­ lor is an alternate title for loan officer. Loan officers usually specialize in commercial, consumer, or mortgage loans. Commercial or business loans help companies pay for new equipment or expand operations; consumer loans include home equity, automobile, and personal loans; mortgage loans are made to purchase real estate or to refinance an existing mortgage. As banks and other financial institutions begin to offer new types of loans and a growing variety of financial services, loan officers will have to keep abreast of these new product lines so that they can meet their customers’ needs. In many instances, loan officers act as salespeople. Commercial loan officers, for example, contact firms to determine their needs for loans. If a firm is seeking new funds, the loan officer will try to persuade the company to obtain the loan from his or her institution. Similarly, mortgage loan officers develop relationships with com­ mercial and residential real estate agencies so that, when an indi­ vidual or firm buys a property, the real estate agent might recom­ mend contacting a specific loan officer for financing.  86 Occupational Outlook Handbook Once this initial contact has been made, loan officers guide cli­ ents through the process of applying for a loan. This process begins with a formal meeting or telephone call with a prospective client, during which the loan officer obtains basic information about the purpose of the loan and explains the different types of loans and credit terms that are available to the applicant. Loan officers an­ swer questions about the process and sometimes assist clients in filling out the application. After a client completes the application, the loan officer begins the process of analyzing and verifying the information on the appli­ cation to determine the client’s creditworthiness. Often, loan offic­ ers can quickly access the client’s credit history by computer and obtain a credit “score.” This score represents the creditworthiness of a person or business as assigned by a software program that makes the evaluation. In cases in which a credit history is not available or in which unusual financial circumstances are present, the loan of­ ficer may request additional financial information from the client or, in the case of commercial loans, copies of the company’s finan­ cial statements. With this information, loan officers who specialize in evaluating a client’s creditworthiness—often called loan under­ writers—may conduct a financial analysis or other risk assessment. Loan officers include this information and their written comments in a loan file, which is used to analyze whether the prospective loan meets the lending institution’s requirements. Loan officers then decide, in consultation with their managers, whether to grant the loan. If the loan is approved, a repayment schedule is arranged with the client. A loan may be approved that would otherwise be denied if the customer can provide the lender with appropriate collateral—prop­ erty pledged as security for the repayment of a loan. For example, when lending money for a college education, a bank may insist that borrowers offer their home as collateral. If the borrowers were ever unable to repay the loan, the home would be seized under court order and sold to raise the necessary money. Some loan officers, referred to as loan collection officers, con­ tact borrowers with delinquent loan accounts to help them find a method of repayment in order to avoid their defaulting on the loan. If a repayment plan cannot be developed, the loan collection officer initiates collateral liquidation, in which the lender seizes the collat­ eral used to secure the loan—a home or car, for example—and sells it to repay the loan.  Loan officers meet with prospective clients to discuss different types of loans and credit terms that are available.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Working Conditions Working as a loan officer usually involves considerable travel. For example, commercial and mortgage loan officers frequently work away from their offices and rely on laptop computers, cellular tele­ phones, and pagers to keep in contact with their offices and clients. Mortgage loan officers often work out of their home or car, visiting offices or homes of clients while completing loan applications. Commercial loan officers sometimes travel to other cities to pre­ pare complex loan agreements. Consumer loan officers and loan counselors, however, are likely to spend most of their time in an office. Most loan officers and counselors work a standard 40-hour week, but many work longer, depending on the number of clients and the demand for loans. Mortgage loan officers can work especially long hours because they are free to take on as many customers as they choose. Loan officers usually carry a heavy caseload and some­ times cannot accept new clients until they complete current cases. They are especially busy when interest rates are low, a condition that triggers a surge in loan applications. Employment Loan counselors and officers together held about 255,000 jobs in 2002. The majority of this employment consisted of loan offic­ ers—nearly 88 percent—with the remaining 31,000 jobs being held by loan counselors. Approximately 40 percent of loan officers and counselors were employed by commercial banks, savings institu­ tions, and credit unions. Mortgage and consumer finance compa­ nies employed an additional 33 percent. Loan officers are employed throughout the Nation, but most work in urban and suburban areas. At some banks, particularly in rural areas, the branch or assistant manager often handles the loan application process. Training, Other Qualifications, and Advancement Loan officer positions generally require a bachelor’s degree in fi­ nance, economics, or a related field. Most employers prefer appli­ cants who are familiar with computers and their applications in bank­ ing. For commercial or mortgage loan officer jobs, training or experience in sales is highly valued by potential employers. Loan officers without college degrees usually advance to these positions from other jobs in an organization after acquiring several years of work experience in various other occupations, such as teller or cus­ tomer service representative. There are currently no specific licensing requirements for loan counselors and officers working in banks or credit unions. Training and licensing requirements for loan counselors and officers who work in mortgage banks or brokerages vary by State. These criteria also may vary depending on whether workers are employed by a mortgage bank or mortgage brokerage. Various banking-related associations and private schools offer courses and programs for students interested in lending, as well as for experienced loan officers who want to keep their skills current. Completion of these courses and programs generally enhances one’s employment and advancement opportunities. Persons planning a career as a loan officer or counselor should be capable of developing effective working relationships with oth­ ers, confident in their abilities, and highly motivated. For public relations purposes, loan officers must be willing to attend commu­ nity events as representatives of their employer. Capable loan officers and counselors may advance to larger branches of the firm or to managerial positions, while less capable workers—and those having weak academic preparation—could be assigned to smaller branches and might find promotion difficult without obtaining training to upgrade their skills. Advancement  Management and Business and Financial Operations Occupations 87 beyond a loan officer position usually includes supervising other loan officers and clerical staff. Job Outlook Employment of loan counselors and officers is projected to increase as fast as the average for all occupations through 2012. College graduates and those with banking, lending, or sales experience should have the best job prospects. Employment growth stemming from economic expansion and population increases—factors that gener­ ate demand for loans—will be partially offset by increased automa­ tion that speeds lending processes and by the spread of alternative methods of applying for and obtaining loans. Job opportunities for workers in these occupations are influenced by the volume of loan applications, which is determined largely by interest rates and by the overall level of economic activity. However, besides those re­ sulting from growth, additional job openings will result from the need to replace workers who retire or otherwise leave the occupa­ tion permanently. The use of credit scoring has made the loan evaluation process much simpler than in the past, and even unnecessary in some cases. Credit scoring allows loan officers, particularly loan underwriters, to evaluate many more loans in much less time, thus increasing loan officers’ efficiency. In addition, the mortgage application process has become highly automated and standardized. This simplifica­ tion has enabled online mortgage loan vendors to offer loan shop­ ping services over the Internet. Online vendors accept loan applica­ tions from customers over the Internet and determine which lenders have the best interest rates for particular loans. With this knowl­ edge, customers can go directly to the lending institution, thereby bypassing mortgage loan brokers. Shopping for loans on the Internet—though currently not a widespread practice—is expected to become more common over the next 10 years, particularly for mortgages, thus reducing demand for loan officers. Although loans remain a major source of revenue for banks, de­ mand for new loans fluctuates and affects the income and employ­ ment opportunities of loan officers. When the economy is on the upswing or when interest rates decline dramatically, there is a surge in real estate buying and mortgage refinancing that requires loan officers to work long hours processing applications and induces lend­ ers to hire additional loan officers. Loan officers often are paid by commission on the value of the loans they place, and some have high earnings when demand for mortgages is high. When the real estate market slows, loan officers often suffer a decline in earnings and may even be subject to layoffs. The same applies to commer­ cial loan officers, whose workloads increase during good economic times as companies seek to invest more in their businesses. In diffi­ cult economic conditions, loan collection officers are likely to see an increase in the number of delinquent loans. Earnings Median annual earnings of loan counselors were $32,010 in 2002. The middle 50 percent earned between $26,330 and $41,660. The lowest 10 percent earned less than $22,800, while the top 10 per­ cent earned more than $57,400. Median annual earnings of loan officers were $43,980 in 2002. The middle 50 percent earned between $32,360 and $62,160. The lowest 10 percent earned less than $25,790, while the top 10 per­ cent earned more than $88,450. Median annual earnings in the in­ dustries employing the largest numbers of loan officers in 2002 were: Activities related to credit intermediation...................................... Management of companies and enterprises................................... Nondepository credit intermediation............................................... Depository credit intermediation......................................................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  $47,240 46,420 44,770 41,450  The form of compensation for loan officers varies. Most loan officers are paid a commission that is based on the number of loans they originate. In this way, commissions are used to motivate loan officers to bring in more loans. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the number of loans originated. Banks and other lenders sometimes offer their loan officers free checking privileges and somewhat lower interest rates on personal loans. According to a salary survey conducted by Robert Half Interna­ tional, a staffing services firm specializing in accounting and fi­ nance, mortgage loan officers earned between $36,000 and $45,750 in 2002; consumer loan officers with 1 to 3 years of experience earned between $42,250 and $56,750; and commercial loan offic­ ers with 1 to 3 years of experience made between $48,000 and $64,500. With over 3 years of experience, commercial loan officers made between $66,000 and $92,000, and consumer loan officers earned between $55,500 and $75,750. Earnings of loan officers with graduate degrees or professional certifications were approxi­ mately 10 to 15 percent higher than these figures. Loan officers who are paid on a commission basis usually earn more than those on salary only, and those who work for smaller banks generally earn less than those employed by larger institutions. Related Occupations Loan officers help the public manage financial assets and secure loans. Occupations that involve similar functions include those of securities and financial services sales representatives, personal fi­ nancial advisors, real estate brokers and sales agents, and insurance sales agents. Sources of Additional Information Information about a career as a mortgage loan officer can be ob­ tained from: > Mortgage Bankers Association of America, 1919 Pennsylvania Ave., NW, Washington, DC 20006-3438. Internet: http://www.mbaa.org  State bankers’ associations can furnish specific information about job opportunities in their State. Also, individual banks can supply information about job openings and the activities, responsibilities, and preferred qualifications of their loan officers.  Management Analysts (0*NET 13-1111.00)  Significant Points •  •  •  Thirty percent are self-employed, about one and a half times the average for other management, business, and financial occupations. Most positions in private industry require a master’s degree and additional years of specialized experience; a bachelor’s degree is sufficient for entry-level government jobs. Despite projected faster-than-average employment growth, intense competition is expected for jobs.  Nature of the Work As business becomes more complex, the Nation’s firms are con­ tinually faced with new challenges. Firms increasingly rely on management analysts to help them remain competitive amidst these changes. Management analysts, often referred to as management  88 Occupational Outlook Handbook consultants in private industry, analyze and propose ways to improve an organization’s structure, efficiency, or profits. For example, a small but rapidly growing company that needs help improving the system of control over inventories and expenses may decide to em­ ploy a consultant who is an expert in just-in-time inventory man­ agement. In another case, a large company that has recently ac­ quired a new division may hire management analysts to help reorganize the corporate structure and eliminate duplicate or nones­ sential jobs. In recent years, information technology and electronic commerce have provided new opportunities for management ana­ lysts. Companies hire consultants to develop strategies for entering and remaining competitive in the new electronic marketplace. (For information on computer specialists working in consulting, see the following statements elsewhere in the Handbook: Computer soft­ ware engineers; systems analysts, computer scientists, and database administrators; and computer programmers.) Firms providing management analysis range in size from a single practitioner to large international organizations employing thousands of consultants. Some analysts and consultants specialize in a spe­ cific industry, such as healthcare or telecommunications, while oth­ ers specialize by type of business function, such as human resources, marketing, logistics, or information systems. In government, man­ agement analysts tend to specialize by type of agency. The work of management analysts and consultants varies with each client or employer, and from project to project. Some projects require a team of consultants, each specializing in one area. In other projects, con­ sultants work independently with the organization’s managers. In all cases, analysts and consultants collect, review, and analyze in­ formation in order to make recommendations to managers. Both public and private organizations use consultants for a vari­ ety of reasons. Some lack the internal resources needed to handle a project, while others need a consultant’s expertise to determine what resources will be required and what problems may be encountered if they pursue a particular opportunity. To retain a consultant, a company first solicits proposals from a number of consulting firms specializing in the area in which it needs assistance. These propos­ als include the estimated cost and scope of the project, staffing re­ quirements, references from a number of previous clients, and a completion deadline. The company then selects the proposal that best suits its needs. After obtaining an assignment or contract, management analysts first define the nature and extent of the problem. During this phase, they analyze relevant data, which may include annual revenues, employment, or expenditures, and interview managers and employ­ ees while observing their operations. The analyst or consultant then develops solutions to the problem. In the course of preparing their recommendations, they take into account the nature of the organi­ zation, the relationship it has with others in the industry, and its internal organization and culture. Insight into the problem often is gained by building and solving mathematical models. Once they have decided on a course of action, consultants report their findings and recommendations to the client. These sugges­ tions usually are submitted in writing, but oral presentations regard­ ing findings also are common. For some projects, management ana­ lysts are retained to help implement the suggestions they have made. Management analysts in government agencies use the same skills as their private-sector colleagues to advise managers on many types of issues, most of which are similar to the problems faced by private firms. For example, if an agency is planning to purchase personal computers, it must first determine which type to buy, given its bud­ get and data processing needs. In this case, management analysts would assess the prices and characteristics of various machines and determine which best meets the agency’s needs.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ip  Management analystsfrequenty work in teams to complete projects. Working Conditions Management analysts usually divide their time between their of­ fices and the client’s site. In either situation, much of an analyst’s time is spent indoors in clean, well-lit offices. Because they must spend a significant portion of their time with clients, analysts travel frequently. Analysts and consultants generally work at least 40 hours a week. Uncompensated overtime is common, especially when project dead­ lines are approaching. Analysts may experience a great deal of stress as a result of trying to meet a client’s demands, often on a tight schedule. Self-employed consultants can set their workload and hours and work at home. On the other hand, their livelihood depends on their ability to maintain and expand their client base. Salaried consult­ ants also must impress potential clients to get and keep clients for their company. Employment Management analysts held about 577,000 jobs in 2002. Thirty per­ cent of these workers were self-employed, about one and a half times the average for other management, business, and financial occupa­ tions. Management analysts are found throughout the country, but employment is concentrated in large metropolitan areas. Most work in management, scientific, and technical consulting firms, in com­ puter systems design and related services firms, and for Federal, State, and local governments. The majority of those working for the Federal Government are in the U.S. Department of Defense.  Management and Business and Financial Operations Occupations 89 Training, Other Qualifications, and Advancement Educational requirements for entry-level jobs in this field vary widely between private industry and government. Most employers in pri­ vate industry generally seek individuals with a master’s degree in business administration or a related discipline. Some employers also require additional years of experience in the field in which the worker plans to consult, in addition to a master’s degree. Some will hire workers with a bachelor’s degree as a research analyst or asso­ ciate. Research analysts usually need to pursue a master’s degree in order to advance to a consulting position. Most government agen­ cies hire people with a bachelor’s degree and no pertinent work experience for entry-level management analyst positions. Few universities or colleges offer formal programs of study in management consulting; however, many fields of study provide a suitable educational background for this occupation because of the wide range of areas addressed by management analysts. These in­ clude most academic programs in business and management, such as accounting and marketing, as well as economics, computer and information sciences, and engineering. In addition to the appropri­ ate formal education, most entrants to this occupation have years of experience in management, human resources, information technol­ ogy, or other specialties. Analysts also routinely attend conferences to keep abreast of current developments in their field. Management analysts often work with minimal supervision, so they need to be self-motivated and disciplined. Analytical skills, the ability to get along with a wide range of people, strong oral and written communication skills, good judgment, time management skills, and creativity are other desirable qualities. The ability to work in teams also is an important attribute as consulting teams become more common. As consultants gain experience, they often become solely respon­ sible for a specific project, taking on more responsibility and man­ aging their own hours. At the senior level, consultants may super­ vise lower level workers and become more involved in seeking out new business. Those with exceptional skills may eventually be­ come a partner in the firm. Others with entrepreneurial ambition may open their own firm. A high percentage of management consultants are self-employed, partly because business startup costs are low. Self-employed con­ sultants also can share office space, administrative help, and other resources with other self-employed consultants or small consulting firms, thus reducing overhead costs. Because many small consult­ ing firms fail each year for lack of managerial expertise and clients, persons interested in opening their own firm must have good orga­ nizational and marketing skills and several years of consulting ex­ perience. The Institute of Management Consultants USA, Inc. (IMC USA) offers a wide range of professional development programs and re­ sources, such as meetings and workshops, which can be helpful for management consultants. The IMC USA also offers the Certified Management Consultant (CMC) designation to those who meet minimum levels of education and experience, submit client reviews, and pass an interview and exam covering the IMC USA’s Code of Ethics. Management consultants with a CMC designation must be recertified every 3 years. Certification is not mandatory for man­ agement consultants, but it may give a jobseeker a competitive ad­ vantage. Job Outlook Despite projected rapid employment growth, keen competition is expected for jobs as management analysts. Because analysts can come from such diverse educational backgrounds, the pool of ap­ plicants from which employers can draw is quite large. Further­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  more, the independent and challenging nature of the work, com­ bined with high earnings potential, makes this occupation attractive to many. Job opportunities are expected to be best for those with a graduate degree, industry expertise, and a talent for salesmanship and public relations. Employment of management analysts is expected to grow faster than the average for all occupations through 2012, as industry and government increasingly rely on outside expertise to improve the performance of their organizations. Job growth is projected in very large consulting firms with international expertise and in smaller consulting firms that specialize in specific areas, such as biotech­ nology, healthcare, information technology, human resources, en­ gineering, and marketing. Growth in the number of individual prac­ titioners may be hindered, however, by increasing use of consulting teams, which permits examination of a variety of different issues and problems within an organization. Employment growth of management analysts and consultants has been driven by a number of changes in the business environ­ ment that have forced firms to take a closer look at their operations. These changes include developments in information technology and the growth of electronic commerce. Traditional companies hire analysts to help design intranets or company Web sites, or establish online businesses. New Internet start-up companies hire analysts not only to design Web sites, but also to advise them in more tradi­ tional business practices, such as pricing strategies, marketing, and inventory and human resource management. In order to offer cli­ ents better quality and a wider variety of services, consulting firms are partnering with traditional computer software and technology firms. Also, many computer firms are developing consulting prac­ tices of their own in order to take advantage of this expanding mar­ ket. Although information technology consulting should remain one of the fastest growing consulting areas, the volatility of the com­ puter services industry necessitates that the most successful man­ agement analysts have knowledge of traditional business practices in addition to computer applications, systems integration, and Web design and management skills. The growth of international business also has contributed to an increase in demand for management analysts. As U.S. firms ex­ pand their business abroad, many will hire management analysts to help them form the right strategy for entering the market; advise on legal matters pertaining to specific countries; or help with organiza­ tional, administrative, and other issues, especially if the U.S. com­ pany is involved in a partnership or merger with a local firm. These trends provide management analysts with more opportunities to travel or work abroad, but also require them to have a more compre­ hensive knowledge of international business and foreign cultures and languages. Furthermore, as international and domestic markets have become more competitive, firms have needed to use resources more effi­ ciently. Management analysts increasingly are sought to help re­ duce costs, streamline operations, and develop marketing strategies. As this process continues and businesses downsize, even more op­ portunities will be created for analysts to perform duties that previ­ ously were handled internally. Finally, management analysts also will be in greater demand in the public sector, as Federal, State, and local government agencies seek ways to become more efficient. Though management consultants are continually expanding their services, employment growth could be hampered by increasing com­ petition for clients from occupations that do not traditionally per­ form consulting work, such as accountants, financial analysts, law­ yers, and computer systems analysts. Furthermore, economic downturns also can have adverse effects on employment for some management consultants. In these times, businesses look to cut costs  90 Occupational Outlook Handbook and consultants can be considered excess expense. On the other hand, some consultants might experience an increase in work dur­ ing recessions because they advise businesses on how to cut costs and remain profitable. Earnings Salaries for management analysts vary widely by years of experi­ ence and education, geographic location, sector of expertise, and size of employer. Generally, management analysts employed in large firms or in metropolitan areas have the highest salaries. Median annual wage and salary earnings of management analysts in 2002 were $60,340. The middle 50 percent earned between $46,160 and $83,590. The lowest 10 percent earned less than $35,990, and the highest 10 percent earned more than $115,670. Median annual earn­ ings in the industries employing the largest numbers of manage­ ment analysts and consultants in 2002 were: Management, scientific, and technical consulting services....... $71,790 66,120 Computer systems design and related services............................. Federal Government................................................................................ 65,480 Insurance carriers..................................................................................... 51,780 State government...................................................................................... 47,340  According to a 2002 survey by the Association of Management Consulting Firms, earnings—including bonuses and profit sharing— averaged $47,826 for research associates in member firms; $61,496 for entry-level consultants, $78,932 for management consultants, $112,716 for senior consultants, $168,998 for junior partners, and $254,817 for senior partners. Salaried management analysts usually receive common benefits such as health and life insurance, a retirement plan, vacation, and sick leave, as well as less common benefits such as profit sharing and bonuses for outstanding work. In addition, all travel expenses usually are reimbursed by the employer. Self-employed consult­ ants have to maintain their own office and provide their own ben­ efits. Related Occupations Management analysts collect, review, and analyze data; make rec­ ommendations; and implement their ideas. Occupations with simi­ lar duties include accountants and auditors; budget analysts; cost estimators; financial analysts and personal financial advisors; op­ erations research analysts; economists; and market and survey re­ searchers. Some management analysts specialize in information technology and work with computers, as do systems analysts, com­ puter scientists, and database administrators. Most management analysts also have managerial experience similar to that of adminis­ trative services managers; advertising, marketing, promotions, public relations, and sales managers; financial managers; human resources, training, and labor relations managers and specialists; and top ex­ ecutives. Sources of Additional Information Information about career opportunities in management consulting is available from: >- Association of Management Consulting Firms, 380 Lexington Ave., Suite 1700, New York, NY 10168. Internet: http://www.amcf.org ' Information about the Certified Management Consultant desig­ nation can be obtained from: ► Institute of Management Consultants USA, Inc., 2025 M St. NW., Suite 800, Washington DC 20036. Internet: http://www.imcusa.org  Information on obtaining a management analyst position with the Federal Government is available from the Office of Personnel Management (OPM) through a telephone-based system. Consult  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  your telephone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Service: (800) 877­ 8339. The first number is not tollfree, and charges may result. In­ formation also is available from the OPM Internet site: http ://www.usajobs.opm.gov.  Tax Examiners, Collectors, and Revenue Agents (0*NET 13-2081.00)  Significant Points • •  • •  Tax examiners, collectors, and revenue agents work for Federal, State, and local governments. A bachelor’s degree in accounting is becoming the standard source of training; in State and local government, an associate degree in accounting or related tax and accounting work experience may be sufficient. Employment is expected to grow more slowly than average over the 2002-12 projection period. Because of the relatively small number of openings, jobseekers can expect to face competition.  Nature of the Work Taxes are one of the certainties of life. And, as long as governments collect taxes, there will be jobs for tax examiners, collectors, and revenue agents. These workers ensure that governments obtain rev­ enues from businesses and citizens by reviewing tax returns, con­ ducting audits, identifying taxes payable, and collecting overdue tax dollars. Tax examiners do similar work, whether they are employed at the Federal, State, or local government level. They review filed tax returns for accuracy and determine whether tax credits and deduc­ tions are allowed by law. Because many States assess individual income taxes based on the taxpayer’s reported Federal adjusted gross income, tax examiners working for the Federal Government report to the States adjustments or corrections they make. State tax exam­ iners then determine whether the adjustments affect the taxpayer’s State tax liability. At the local level, tax examiners often have addi­ tional duties, but an integral part of the work still includes the need to determine the factual basis for claims for refunds. Tax examiners usually deal with the simplest tax returns—those filed by individual taxpayers with few deductions or those filed by small businesses. At the entry level, many tax examiners perform clerical duties, such as reviewing tax returns and entering them into a computer system for processing. If there is a problem, tax exam­ iners may contact the taxpayer to resolve it. Tax examiners also review returns for accuracy, checking tax­ payers’ math and making sure that the amounts that they report match those reported from other sources, such as employers and banks. In addition, the examiners verify that Social Security numbers match names and that taxpayers have correctly interpreted the instructions on the tax forms. Much of a tax examiner’s job involves making sure that tax cred­ its and deductions claimed by taxpayers are legitimate. Tax exam­ iners contact the taxpayer by mail or telephone to address discrep­ ancies and request supporting documentation. They may notify the  Management and Business and Financial Operations Occupations 91 taxpayer of any overpayment or underpayment and either issue a refund or request further payment. If a taxpayer owes additional taxes, tax examiners adjust the total amount by assessing fees, in­ terest, and penalties and notify the taxpayer of the total liability. Although most tax examiners deal with uncomplicated returns, some may work in more complex tax areas such as pensions or business net-operating losses. Revenue agents specialize in tax-related accounting work for the U.S. Internal Revenue Service (IRS) and for equivalent agencies at the State and local government levels. Like tax examiners, they audit returns for accuracy. However, revenue agents handle com­ plicated income, sales, and excise tax returns of businesses and large corporations. As a result, their work differs in a number of ways from that of tax examiners. Entry-level revenue agents at the Federal level usually audit tax returns of small businesses whose market specializations are simi­ lar. As they develop expertise in an industry, such as construction, retail sales, or finance, insurance, and real estate, revenue agents work with tax returns of larger corporations. Many experienced revenue agents specialize; for example, they may focus exclusively on multinational businesses. But all revenue agents working for the Federal Government must keep abreast of the lengthy, complex, and frequently changing tax code. Computer technology has simplified the research process, allowing revenue agents Internet access to relevant legal bulletins, IRS notices, and tax-related court decisions. At the State level, revenue agents have duties similar to those of their counterparts in the Federal Government. State revenue agents use revenue adjustment reports forwarded by the IRS to determine whether adjustments made by Federal revenue agents affect a taxpayer’s taxable income in the eyes of the States. In addition, State agents consider the sales and income taxes for their own States. At the local level, revenue agents have varying titles and duties, but they still perform field audits or office audits of financial records for business firms. In some cases, local revenue agents also exam­ ine financial records of individuals. These local agents, like their State counterparts, rely on the information contained in Federal tax returns. However, local agents also must be knowledgeable enough to apply local tax laws regarding income, utility fees, or school taxes. Collectors, also called revenue officers in the IRS, deal with de­ linquent accounts. The process of collecting a delinquent account starts with the revenue agent or tax examiner sending a report to the taxpayer. If the taxpayer makes no effort to resolve the delinquent account, the case is assigned to a collector. When a collector takes a case, he or she first sends the taxpayer a notice. The collector then works with the taxpayer on how to settle the debt. In cases in which taxpayers fail to file a tax return, Federal col­ lectors may request that the IRS prepare the return on a taxpayer’s behalf. In other instances, collectors are responsible for verifying claims that delinquent taxpayers cannot pay their taxes. They in­ vestigate these claims by researching court information for the sta­ tus of liens, mortgages, or financial statements; locating assets through third parties, such as neighbors or local departments of motor vehicles; and requesting legal summonses for other records. Ulti­ mately, collectors must decide whether the IRS should take a lien, or a claim on an asset—such as a bank account, real estate, or an automobile—to settle a debt. Collectors also have the discretion to garnish wages—that is, take a portion of earned wages—to collect owed taxes. A big part of a collector’s job at the Federal level is imposing and following up on delinquent taxpayers’ payment deadlines. For each case file, collectors also must maintain records including con­ tacts, telephone numbers, and actions taken.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  §  At the entry level, many tax examiners perform clerical duties, such as reviewing tax returns and entering them into a computer system for processing.  Like tax examiners and revenue agents, collectors use comput­ ers to maintain files. Computer technology also gives collectors data access to help them identify high-risk debtors—those who are unlikely to pay or are likely to flee. Collectors at the IRS usually work independently. However, they call on experts when tax examiners or revenue agents find fraudu­ lent returns, or when a property seizure will involve complex legal steps. At the State level, collectors decide whether to take action on the basis of their own States’ tax returns. Collection work may be handled over the telephone or be turned over to a collector who specializes in obtaining settlements. These collectors contact people directly and have authority to issue subpoenas and request seizures of property. At the local levels, collectors have less power than do their State and Federal counterparts. Although they can start the processes leading to seizure of property and garnishment of wages, they must go through the local court system. Working Conditions Tax examiners, collectors, and revenue agents generally work a 40-hour week, although some overtime might be needed during the tax season. State and local tax examiners, who also may review sales, gasoline, and cigarette taxes, may have a steadier workload year-round. Stress can result from the need to work under a deadline  92 Occupational Outlook Handbook in checking returns and evaluating taxpayer claims. Collectors also must face the unpleasant task of confronting delinquent taxpayers. Tax examiners, collectors, and revenue agents work in clean, well-lighted offices, either in cubicles or at desks. Sometimes travel is necessary. Revenue agents at both the Federal and State levels spend a significant portion of their time in the offices of private firms accessing tax-related records. Some agents may be perma­ nently stationed in the offices of large corporations with compli­ cated tax structures. Agents at the local level usually work in city halls or municipal buildings. Collectors travel to local courthouses; county and municipal seats of government; businesses; and taxpay­ ers’ homes to look up records, search for assets, and settle delin­ quent accounts. Employment In 2002, tax examiners, revenue agents, and collectors held about 75,000 jobs at all levels of government. About half worked for the Federal Government, one-third for State governments, and the re­ mainder in local governments. Among those employed by the IRS, tax examiners and revenue agents predominate because of the need to examine or audit tax returns. Collectors make up a smaller pro­ portion, because most disputed tax liabilities do not require enforced collection. Training, Other Qualifications, and Advancement Tax examiners, collectors, and revenue agents work with confiden­ tial financial and personal information; therefore, trustworthiness is crucial for maintaining the confidentiality of individuals and busi­ nesses. Applicants for Federal Government jobs must submit to a background investigation. A degree in accounting is becoming the standard source of train­ ing for tax examiners, collectors, and revenue agents. A bachelor’s degree generally is required for employment with the Federal Gov­ ernment. In State and local governments, prospective workers may be able to enter the occupation with an associate degree in account­ ing, or a combination of related tax and accounting work experi­ ence with some college-level business classes. For more advanced entry-level positions, applicants must have a bachelor’s degree; dem­ onstrate specialized experience working with tax records, tax laws and regulations, documents, financial accounts, or similar records; or have some combination of postsecondary education and special­ ized experience. Tax examiners must be able to understand fundamental tax regu­ lations and procedures, pay attention to detail, and cope well with deadlines. After they are hired, tax examiners receive some formal training. Additionally, annual employer-provided updates keep tax examiners current with changes in procedures or regulations. Revenue agents need strong analytical, organizational, and time management skills. They also must be able to work independently because they spend so much time away from their home office, and must keep current with changes in the tax code and laws. Newly hired revenue agents expand their accounting knowledge and re­ main up to date by consulting auditing manuals and other sources for detailed information about individual industries. Additionally, employers continually offer training in new auditing techniques and tax-related issues and court decisions. Collectors need good interpersonal and communication skills because they deal directly with the public and because their reports are scrutinized when the IRS must legally justify attempts to seize assets. They also must be able to act independently and to exercise good judgment in deciding when and how to collect a debt. Appli­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  cants for collector jobs need experience demonstrating knowledge and understanding of business and financial practices, or knowl­ edge of credit operations and practices related to the collection of delinquent accounts. Entry-level collectors receive formal and on-the-job training under an instructor’s guidance before working independently. Col­ lectors usually complete initial training by the end of their second year of service but may receive advanced technical instruction as they gain seniority and take on more difficult cases. Also, collec­ tors are encouraged to continue their professional education by at­ tending meetings to exchange information about how changes in tax laws affect collection methods. Advancement potential within Federal, State, and local agencies varies for tax examiners, revenue agents, and collectors. For re­ lated jobs outside government, experienced workers can take a li­ censing exam administered by the Federal Government to become enrolled agents—nongovernment tax professionals authorized to represent taxpayers before the IRS. As revenue agents gain experience, they may specialize in an industry, work with larger corporations, and cover increasingly com­ plex tax returns. Some revenue agents also specialize in assisting in criminal investigations, auditing the books of known or suspected criminals such as drug dealers or money launderers; some agents work with grand juries to help secure indictments. Others become international agents, assessing taxes on companies with subsidiar­ ies abroad. Collectors who demonstrate leadership skills and a thorough knowledge of collection activities may advance to supervisory or managerial collector positions, in which they oversee the activities of other collectors. It is only these higher supervisors and manag­ ers who may authorize the more serious actions against individuals and businesses. The more complex collection attempts, which usu­ ally are directed at larger businesses, are reserved for collectors at these higher levels. Job Outlook Employment of tax examiners, collectors, and revenue agents is projected to grow more slowly than average during the 2002-12 projection period. Job openings will stem primarily from the need to replace those workers who retire or leave the occupation for other reasons. Because of the relatively small number of openings, jobseekers can expect to face competition. The number of tax returns filed will continue to increase as the labor force grows. Dampening this effect, however, is a decrease in the proportion of tax returns selected for audit and collection. Be­ cause much of the work done by tax examiners and revenue agents is now computerized, productivity has increased, limiting the need for more tax examiners, collectors, and revenue agents. Many State and local governments, as well as the Federal Government, may increasingly contract out their tax collection functions to private sector collection agencies in order to reduce costs. Employment at the State and local levels may fluctuate with the overall state of the economy. When the economy is contracting, State and local governments are likely to freeze hiring and lay off workers in response to budgetary constraints. Employment growth is more likely to occur in Southern and Western States that are ex­ periencing large population increases. Opportunities at the Federal level could arise from the relaxing of budget constraints imposed on the IRS, the primary employer of these workers. Earnings In 2002, median annual earnings for all tax examiners, collectors, and revenue agents was $42,250. The middle 50 percent earned  Management and Business and Financial Operations Occupations 93 between $31,250 and $59,670. The bottom 10 percent earned less than $23,950, and the top 10 percent earned more than $74,600. However, median earnings vary considerably depending on the level of government. At the Federal level, 2002 median annual earnings for tax examiners, collectors, and revenue agents were $50,820; at the State level, they were $41,000; and at the local level, they were $28,710. Earnings also vary by occupational specialty. For example, in the Federal Government in 2003, tax examiners earned an average of $34,002, revenue agents earned $75,816, and tax specialists earned $53,083. Related Occupations Tax examiners, collectors, and revenue agents analyze and interpret financial data. Occupations with similar responsibilities include accountants and auditors, budget analysts, cost estimators, finan­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  cial analysts and personal financial advisors, financial managers, and loan counselors and officers. Sources of Additional Information Information on obtaining a position as a tax examiner, collector, or revenue agent with the Federal Government is available from the U.S. Office of Personnel Management (OPM) through a telephonebased system. Consult your telephone directory under U.S. Gov­ ernment for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site: http://www.usajobs.opm.gov. State or local government personnel offices can provide infor­ mation about tax examiner, collector, or revenue agent jobs at those levels of government.  Professional and Related Occupations Computer and Mathematical Occupations Actuaries (0*NET 15-2011.00)  Significant Points • • •  A strong background in mathematics is essential. About 6 out of 10 actuaries are employed in the insurance industry. Employment opportunities will be good despite the limited number of openings in this small occupation, as stringent qualifying requirements limit the number of new entrants.  Nature of the Work One of the main functions of actuaries is to help businesses assess the risk of certain events occurring and formulate poli­ cies that minimize the cost of that risk. For this reason, actuaries are essential to the insurance industry. Actuaries assemble and analyze data to estimate the probability and likely cost of the occurrence of an event such as death, sickness, injury, disabil­ ity, or loss of property. Actuaries also address financial ques­ tions, including those involving the level of pension contribu­ tions required to produce a certain retirement income level and the way in which a company should invest resources to maxi­ mize return on investments in light of potential risk. Using thenbroad knowledge of statistics, finance, and business, actuaries help design insurance policies, pension plans, and other finan­ cial strategies in a manner which will help ensure that the plans are maintained on a sound financial basis. Most actuaries are employed in the insurance industry, spe­ cializing in life and health insurance or property and casualty insurance. They produce probability tables which determine the likelihood that a potential future event will generate a claim. From these tables, they estimate the amount a company can expect to pay in claims. For example, property and casualty actuaries calculate the expected amount of claims resulting from automobile accidents, which varies depending on the insured person’s age, sex, driving history, type of car, and other factors. Actuaries ensure that the price, or premium, charged for such insurance will enable the company to cover claims and other expenses. This premium must be profitable, yet competitive with other insurance companies. Within the life and health in­ surance fields, actuaries are helping to develop long-term-care insurance and annuity policies, the latter a growing investment tool for many individuals. Actuaries in other financial services industries manage credit and help price corporate security offerings. They also devise new investment tools to help their firms compete with other financial services companies. Pension actuaries working under the provisions of the Employee Retirement Income Security Act (ERISA) of 1974 evaluate pension plans covered by that Act and report on the plans’ financial soundness to participants, sponsors, and Federal regulators. Actuaries working in govern­  Digitized94 for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ment help manage social programs such as Social Security and Medicare. Actuaries may help determine company policy and may need to explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public in general. They may testify before public agencies on pro­ posed legislation affecting their businesses or explain changes in contract provisions to customers. They also may help com­ panies develop plans to enter new lines of business or new geo­ graphic markets with existing lines of business by forecasting demand in competitive settings. Both staff actuaries employed by businesses and consulting actuaries provide advice to clients on a contract basis. The duties of most consulting actuaries are similar to those of other actuaries. For example, some may evaluate company pension plans by calculating the future value of employee and employer contributions and determining whether the amounts are suffi­ cient to meet the future needs of retirees. Others help companies reduce their insurance costs by lowering the level of risk the companies take on. For instance, they may provide advice on how to lessen the risk of injury on the job, which will lower worker’s compensation costs. Consulting actuaries sometimes testify in court regarding the value of the potential lifetime earnings of a person who is disabled or killed in an accident, the current value of future pension benefits (in divorce cases), or other values arrived at by complex calculations. Many consult­ ing actuaries work in reinsurance, a field in which one insurance company arranges to share a large prospective liability policy with another insurance company in exchange for a percentage of the premium. Working Conditions Actuaries have desk jobs, and their offices usually are comfort­ able and pleasant. They often work at least 40 hours a week. Some actuaries, particularly consulting actuaries, may travel to  Actuaries analyze the probability that an adverse event will occur.  Professional and Related Occupations meet with clients. Consulting actuaries also may experience more erratic employment and be expected to work more than 40 hours per week. Employment Actuaries held about 15,000 jobs in 2002, with more than 1 in 2 actuaries employed by insurance carriers. Others work for pen­ sion funds and insurance agents and brokers. A growing number of actuaries work for firms providing a variety of corporate ser­ vices, especially management and public relations, or for firms offering consulting services. A relatively small number of actu­ aries are employed by security and commodity brokers or by government agencies. Training, Other Qualifications, and Advancement Actuaries need a strong background in mathematics and gen­ eral business. Applicants for beginning actuarial jobs usually have a bachelor’s degree in mathematics, actuarial science, sta­ tistics, or a business-related discipline, such as economics, fi­ nance, or accounting. About 100 colleges and universities offer an actuarial science program, and most offer a degree in math­ ematics, statistics, economics, or finance. Some companies hire applicants without specifying a major, provided that the appli­ cant has a working knowledge of mathematics, including calcu­ lus, probability, and statistics, and has demonstrated this knowl­ edge by passing one or two actuarial exams required for professional designation. Courses in economics, accounting, finance, and insurance also are useful. Companies increasingly prefer well-rounded individuals who, in addition to having ac­ quired a strong technical background, have some training in liberal arts and business and possess strong communication skills. In addition to knowledge of mathematics, computer skills are becoming increasingly important. Actuaries should be able to develop and use spreadsheets and databases, as well as stan­ dard statistical analysis software. Knowledge of computer pro­ gramming languages, such as Visual Basic, also is useful. Two professional societies sponsor programs leading to full professional status in their specialty. The first, the Society of Actuaries (SOA), administers a series of actuarial examinations in the life insurance, health benefits systems, retirement sys­ tems, and finance and investment fields. The Casualty Actuarial Society (CAS), as the name indicates, gives a series of examina­ tions in the property and casualty field, which includes fire, accident, medical malpractice, worker’s compensation, and per­ sonal injury liability. The first four exams in the SOA and CAS examination series are jointly sponsored by the two societies and cover the same material. For this reason, students do not need to commit them­ selves to a specialty until they have taken the initial examina­ tions, which test an individual’s competence in probability, cal­ culus, statistics, and other branches of mathematics. The first few examinations help students evaluate their potential as actu­ aries. Many prospective actuaries begin taking the exams in college with the help of self-study guides and courses. Those who pass one or more examinations have better opportunities for employment at higher starting salaries than those who do not. After graduating from college, most prospective actuaries gain on-the job experience at an insurance company or consult­ ing firm, while at the same time working to complete the exami­ nation process. Actuaries are encouraged to finish the entire series of examinations as soon as possible, advancing first to the  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  95  Associate level (with an ASA or ACAS designation) and then to the Fellowship level (FSA or FCAS designation). Advanced topics in the casualty field include investment and assets, dy­ namic financial analysis, and valuation of insurance. Candi­ dates in the SOA examination series must choose a specialtygroup and health benefits, individual life and annuities, pensions, investments, or finance. Examinations are given twice a year, in the spring and the fall. Although many companies allot time to their employees for study, home study is required to pass the examinations, and many actuaries study for months to prepare for each examination. It is likewise common for employers to pay the hundreds of dollars for examination fees and study materials. Most actuaries reach the Associate level within 4 to 6 years and the Fellowship level a few years later. Specific requirements apply to pension actuaries, who verify the financial status of defined benefit pension plans for the Fed­ eral Government. These actuaries must be enrolled by the Joint Board for the Enrollment of Actuaries. To qualify for enroll­ ment, applicants must meet certain experience and examination requirements, as stipulated by the Board. To perform their duties effectively, actuaries must keep up with current economic and social trends and legislation, as well as with developments in health, business, finance, and econom­ ics that could affect insurance or investment practices. Good communication and interpersonal skills also are important, par­ ticularly for prospective consulting actuaries. Beginning actuaries often rotate among different jobs in an organization to learn various actuarial operations and phases of insurance work, such as marketing, underwriting, and product development. At first, they prepare data for actuarial projects or perform other simple tasks. As they gain experience, actuaries may supervise clerks, prepare correspondence, draft reports, and conduct research. They may move from one company to an­ other early in their careers as they advance to higher positions. Advancement depends largely on job performance and the number of actuarial examinations passed. Actuaries with a broad knowledge of the insurance, pension, investment, or employee benefits fields can rise to administrative and executive posi­ tions in their companies. Actuaries with supervisory ability may advance to management positions in other areas, such as under­ writing, accounting, data processing, marketing, and advertis­ ing. Some actuaries assume college and university faculty posi­ tions. (See the statement on teachers—postsecondary elsewhere in the Handbook.)  Job Outlook Employment of actuaries is expected to grow as fast as the aver­ age for all occupations through 2012. Employment opportuni­ ties should remain good for those who qualify, because the strin­ gent qualifying examination system restricts the number of candidates. Employment growth in the insurance industry is expected to continue at a stable pace, while more significant job growth is likely in some other industries. In addition, a small number of jobs will open up each year to replace actuaries who leave the occupation to retire or who find new jobs. Steady demand by the insurance industry—the largest em­ ployer of actuaries—should ensure that actuary jobs in this key industry will not decrease over the projection period. Although relatively few new jobs will be created, actuaries will continue to be needed to develop, price, and evaluate a variety of insur­ ance products and calculate the costs of new risks. Recently, employment of actuaries in life insurance had begun to decline,  96  Occupational Outlook Handbook  but the growing popularity of annuities, a financial product offered primarily by life insurance companies, has resulted in some job growth in this specialty. Also, new actuarial positions have been created in property-casualty insurance to analyze evolving risks, such as terrorism. Some new employment opportunities for actuaries should also become available in the health-care field as health-care issues and Medicare reform continue to receive growing atten­ tion. Increased regulation of managed health-care companies and the desire to contain health-care costs will continue to pro­ vide job opportunities for actuaries, who will also be needed to evaluate the risks associated with new medical issues, such as genetic testing and the impact of new diseases. Others in this field are involved in drafting health-care legislation. A significant proportion of new actuaries will find employ­ ment with consulting firms. Companies that may not find it cost effective to hire their own actuaries are increasingly hiring con­ sulting actuaries to analyze various risks. Other areas with no­ table growth prospects are information services and accounting services. Also, because actuarial skills are increasingly seen as useful to other industries that deal with risk, such as the airline and the banking industries, additional job openings may be created in these industries. The best job prospects for entry-level positions will be for those candidates who have passed at least one or two of the initial actuarial exams. Candidates with additional knowledge or experience, such as computer programming skills, will be particularly attractive to employers. Most jobs in this occupa­ tion are located in urban areas, but opportunities vary by geo­ graphic location. Opportunities should be best in Illinois, New Jersey, New York, and Connecticut—the four States in which about one-third of all actuary jobs are concentrated.  Sources of Additional Information Career information on actuaries specializing in pensions is avail­ able from >■ American Society of Pension Actuaries, 4245 N. Fairfax Dr., Suite 750, Arlington, VA 22203. Internet: http://www.aspa.org  For information about actuarial careers in life and health insurance, employee benefits and pensions, and finance and investments, contact ► Society of Actuaries (SOA), 475 N. Martingale Rd., Suite 800, Schaumburg, IL 60173-2226. Internet: http://www.soa.org  For information about actuarial careers in property and casu­ alty insurance, contact >■ Casualty Actuarial Society (CAS), 1100 N. Glebe Rd., Suite 600, Ar­ lington, VA 22201. Internet: http://www.casact.org  The SOA and CAS jointly sponsor a Web site for those interested in pursuing an actuarial career. Internet: http ://www.BeAnActuary.org For general facts about actuarial careers, contact >- American Academy of Actuaries, 1100 17th St. NW., 7th Floor, Wash­ ington, DC 20036. Internet: http://www.actuary.org/index.htm  Computer Programmers (0*NET 15-1021.00)  Significant Points •  • •  Earnings Median annual earnings of actuaries were $69,970 in 2002. The middle 50 percent earned between $50,510 and $99,820. The lowest 10 percent had earnings of less than $39,700, while the top 10 percent earned more than $137,650. According to the National Association of Colleges and Em­ ployers, annual starting salaries for graduates with a bachelor’s degree in actuarial science averaged $40,396 in 2003. Insurance companies and consulting firms give merit in­ creases to actuaries as they gain experience and pass examina­ tions. Some companies also offer cash bonuses for each profes­ sional designation achieved. A 2003 survey by Life Office Management Association, Inc., of the largest U.S. insurance and financial services companies indicated that the average base salary for an entry-level actuary was $46,991. Associate actuar­ ies, who direct and provide leadership in the design, pricing, and implementation of insurance products, received an average salary of $99,446. Actuaries at the highest technical level with­ out managerial responsibilities reportedly were paid an average of $104,235.  Related Occupations Actuaries need a strong background in mathematics, statistics, and related fields. Other workers whose jobs involve related skills include accountants and auditors, budget analysts, econo­ mists, market and survey researchers, financial analysts and per­ sonal financial advisors, insurance underwriters, mathematicians, and statisticians.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nearly half of all computer programmers held a bachelor’s degree in 2002; about 1 in 5 held a graduate degree. Employment is expected to grow much more slowly than that of other computer specialists. Prospects should be best for college graduates with knowledge of a variety of programming languages and tools; those with less formal education or its equivalent in work experience should face strong competition for programming jobs.  Nature of the Work Computer programmers write, test, and maintain the detailed instructions, called programs, that computers must follow to perform their functions. They also conceive, design, and test logical structures for solving problems by computer. Many tech­ nical innovations in programming—advanced computing tech­ nologies and sophisticated new languages and programming tools—have redefined the role of a programmer and elevated much of the programming work done today. Job titles and de­ scriptions may vary, depending on the organization. In this occupational statement, computer programmer refers to indi­ viduals whose main job function is programming; this group has a wide range of responsibilities and educational back­ grounds. Computer programs tell the computer what to do—which information to identify and access, how to process it, and what equipment to use. Programs vary widely depending upon the type of information to be accessed or generated. For example, the instructions involved in updating financial records are very different from those required to duplicate conditions on board an aircraft for pilots training in a flight simulator. Although simple programs can be written in a few hours, programs that use complex mathematical formulas, whose solutions can only be approximated, or that draw data from many existing systems  Professional and Related Occupations may require more than a year of work. In most cases, several programmers work together as a team under a senior programmer’s supervision. Programmers write programs according to the specifications determined primarily by computer software engineers and sys­ tems analysts. (Separate statements on computer software engi­ neers and on computer systems analysts, database administra­ tors, and computer scientists appear elsewhere in the Handbook.) After the design process is complete, it is the job of the program­ mer to convert that design into a logical series of instructions that the computer can follow. The programmer then codes these instructions in a conventional programming language, such as COBOL; an artificial intelligence language, such as Prolog; or one of the most advanced object-oriented languages such as Java, C++, or Smalltalk. Different programming languages are used depending on the purpose of the program. COBOL, for example, is commonly used for business applications, whereas Fortran (short for “formula translation”) is used in science and engineering. C++ is widely used for both scientific and busi­ ness applications. Many programmers at the enterprise level are also expected to know platform-specific languages used in da­ tabase programming. Programmers generally know more than one programming language and, because many languages are similar, they often can learn new languages relatively easily. In practice, programmers often are referred to by the language they know, as are Java programmers, or the type of function they perform or environment in which they work, which is the case for database programmers, mainframe programmers, or Web pro­ grammers. Many programmers update, repair, modify, and expand exist­ ing programs. When making changes to a section of code, called a routine, programmers need to make other users aware of the task that the routine is to perform. They do this by inserting comments in the coded instructions, so that others can under­ stand the program. Many programmers use computer-assisted software engineering (CASE) tools to automate much of the coding process. These tools enable a programmer to concen­ trate on writing the unique parts of the program, because the tools automate various pieces of the program being built. CASE tools generate whole sections of code automatically, rather than line by line. Programmers also utilize libraries of pre-written code, which can then be modified or customized for a specific application. This also yields more reliable and consistent pro­ grams and increases programmers’ productivity by eliminating some routine steps. Programmers test a program by running it to ensure that the instructions are correct and that the program produces the de­ sired outcome. If errors do occur, the programmer must make the appropriate change and recheck the program until it produces the correct results. This process is called testing and debug­ ging. Programmers may continue to fix these problems through­ out the life of a program. Programmers working in a mainframe environment, which involves a large centralized computer, may prepare instructions for a computer operator who will run the program. (A separate statement on computer operators appears elsewhere in the Handbook.) They also may contribute to a manual for persons who will be using the program. Programmers often are grouped into two broad types—appli­ cations programmers and systems programmers. Applications programmers write programs to handle a specific job, such as a program to track inventory within an organization. They may also revise existing packaged software or customize generic applications called middleware. Systems programmers, on the  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  97  other hand, write programs to maintain and control computer systems software, such as operating systems, networked sys­ tems, and database systems. These workers make changes in the sets of instructions that determine how the network, worksta­ tions, and central processing unit of the system handle the vari­ ous jobs they have been given, and how they communicate with peripheral equipment such as terminals, printers, and disk drives. Because of their knowledge of the entire computer system, sys­ tems programmers often help applications programmers to de­ termine the source of problems that may occur with their pro­ grams. Programmers in software development companies may work directly with experts from various fields to create software— either programs designed for specific clients or packaged soft­ ware for general use—ranging from games and educational soft­ ware to programs for desktop publishing and financial planning. Much of this type of programming takes place in the prepara­ tion of packaged software, which constitutes one of the most rapidly growing segments of the computer services industry. In some organizations, particularly small ones, workers com­ monly known as programmer-analysts are responsible for both the systems analysis and the actual programming work. (A more detailed description of the work of programmer-analysts is pre­ sented in the statement on computer systems analysts, database administrators, and computer scientists elsewhere in the Hand­ book.) Advanced programming languages and new object-ori­ ented programming capabilities are increasing the efficiency and productivity of both programmers and users. The transition from a mainframe environment to one that is based primarily on personal computers (PCs) has blurred the once rigid distinction between the programmer and the user. Increasingly, adept endusers are taking over many of the tasks previously performed by programmers. For example, the growing use of packaged soft­ ware, such as spreadsheet and database management software packages, allows users to write simple programs to access data and perform calculations. Working Conditions Programmers generally work in offices in comfortable surround­ ings. Many programmers may work long hours or weekends to meet deadlines or fix critical problems that occur during off hours. Given the technology available, telecommuting is be­ coming common for a wide range of computer professionals,  P  Computer programmers write, test, and maintain the detailed instructions that computers follow.  98  Occupational Outlook Handbook  including computer programmers. As computer networks ex­ pand, more programmers are able to make corrections or fix problems remotely by using modems, e-mail, and the Internet to connect to a customer’s computer. Like other workers who spend long periods in front of a com­ puter terminal typing at a keyboard, programmers are suscep­ tible to eyestrain, back discomfort, and hand and wrist prob­ lems, such as carpal tunnel syndrome. Employment Computer programmers held about 499,000 jobs in 2002. Pro­ grammers are employed in almost every industry, but the largest concentrations are in computer systems design and related ser­ vices and in software publishers, which includes firms that write and sell software. Large numbers of programmers also can be found in management of companies and enterprises, telecom­ munications companies, manufacturers of computer and elec­ tronic equipment, financial institutions, insurance carriers, edu­ cational institutions, and government agencies. A large number of computer programmers are employed on a temporary or contract basis or work as independent consultants, as companies demand expertise with new programming lan­ guages or specialized areas of application. Rather than hiring programmers as permanent employees and then laying them off after a job is completed, employers can contract with temporary help agencies, consulting firms, or directly with programmers themselves. A marketing firm, for example, may require the services of several programmers only to write and debug the software necessary to get a new customer resource management system running. This practice also enables companies to bring in people with a specific set of skills—usually in one of the latest technologies—as it applies to their business needs. Bring­ ing in an independent contractor or consultant with a certain level of experience in a new or advanced programming lan­ guage, for example, enables an establishment to complete a particular job without having to retrain existing workers. Such jobs may last anywhere from several weeks to a year or longer. There were 18,000 self-employed computer programmers in  2002. Training, Other Qualifications, and Advancement While there are many training paths available for programmers, mainly because employers’ needs are so varied, the level of education and experience employers seek has been rising, due to the growing number of qualified applicants and the special­ ization involved with most programming tasks. Bachelor’s de­ grees are commonly required, although some programmers may qualify for certain jobs with 2-year degrees or certificates. The associate degree is an increasingly attractive entry-level cre­ dential for prospective computer programmers. Most commu­ nity colleges and many independent technical institutes and proprietary schools offer an associate degree in computer sci­ ence or a related information technology field. Employers are primarily interested in programming knowl­ edge, and computer programmers can become certified in a programming language such as C++ or Java. College gradu­ ates who are interested in changing careers or developing an area of expertise also may return to a 2-year community col­ lege or technical school for additional training. In the absence of a degree, substantial specialized experience or expertise may be needed. Even when hiring programmers with a degree, em­ ployers appear to be placing more emphasis on previous expe­ rience.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Some computer programmers hold a college degree in com­ puter science, mathematics, or information systems, whereas others have taken special courses in computer programming to supplement their degree in a field such as accounting, inventory control, or another area of business. As the level of education and training required by employers continues to rise, the pro­ portion of programmers with a college degree should increase in the future. As indicated by the following tabulation, 65 per­ cent of computer programmers had a bachelor’s or higher degree in 2002. Percent High school graduate or equivalent or less......................................... 7.7 Some college, no degree............................................................................. 15.2 Associate degree............................................................................................. 11.6 Bachelor’s degree........................................................................................ 48.6 Graduate degree............................................................................................. 16.7  Required skills vary from job to job, but the demand for various skills generally is driven by changes in technology. Employers using computers for scientific or engineering appli­ cations usually prefer college graduates who have degrees in computer or information science, mathematics, engineering, or the physical sciences. Graduate degrees in related fields are required for some jobs. Employers who use computers for busi­ ness applications prefer to hire people who have had college courses in management information systems (MIS) and busi­ ness and who possess strong programming skills. Although knowledge of traditional languages still is important, employ­ ers are placing increasing emphasis on newer, object-oriented programming languages and tools, such as C++ and Java. Addi­ tionally, employers are seeking persons familiar with fourthand fifth-generation languages that involve graphic user inter­ face (GUI) and systems programming. Employers also prefer applicants who have general business skills and experience re­ lated to the operations of the firm. Students can improve their employment prospects by participating in a college work-study program or by undertaking an internship. Most systems programmers hold a 4-year degree in computer science. Extensive knowledge of a variety of operating systems is essential for such workers. This includes being able to con­ figure an operating system to work with different types of hard­ ware and having the skills needed to adapt the operating system to best meet the needs of a particular organization. Systems programmers also must be able to work with database systems, such as DB2, Oracle, or Sybase. When hiring programmers, employers look for people with the necessary programming skills who can think logically and pay close attention to detail. The job calls for patience, persis­ tence, and the ability to work on exacting analytical work, espe­ cially under pressure. Ingenuity, creativity, and imagination also are particularly important when programmers design solu­ tions and test their work for potential failures. The ability to work with abstract concepts and to do technical analysis is es­ pecially important for systems programmers, because they work with the software that controls the computer’s operation. Be­ cause programmers are expected to work in teams and interact directly with users, employers want programmers who are able to communicate with nontechnical personnel. Entry-level or junior programmers may work alone on simple assignments after some initial instruction, or they may be as­ signed to work on a team with more experienced programmers. Either way, beginning programmers generally must work under  Professional and Related Occupations close supervision. Because technology changes so rapidly, pro­ grammers must continuously update their knowledge and skills by taking courses sponsored by their employer or by software vendors, or offered through local community colleges and uni­ versities. For skilled workers who keep up to date with the latest technology, the prospects for advancement are good. In large organizations, programmers may be promoted to lead program­ mer and be given supervisory responsibilities. Some applica­ tions programmers may move into systems programming after they gain experience and take courses in systems software. With general business experience, programmers may become program­ mer-analysts or systems analysts or be promoted to a managerial position. Other programmers, with specialized knowledge and experience with a language or operating system, may work in research and development on multimedia or Internet technol­ ogy, for example. As employers increasingly contract out pro­ gramming jobs, more opportunities should arise for experienced programmers with expertise in a specific area to work as con­ sultants. Certification is a way to demonstrate a level of competence, and may provide a jobseeker with a competitive advantage. In addition to language-specific certificates that a programmer can obtain, product vendors or software firms also offer certification and may require professionals who work with their products to be certified. Voluntary certification also is available through other various organizations. Job Outlook Employment of programmers is expected to grow about as fast as the average for all occupations through 2012. Jobs for both systems and applications programmers should be most plentiful in data processing service firms, software houses, and computer consulting businesses. These types of establishments are part of computer systems design and related services and software pub­ lishers, which are projected to be among the fastest growing industries in the economy over the 2002-12 period. As organi­ zations attempt to control costs and keep up with changing technology, they will need programmers to assist in conversions to new computer languages and systems. In addition, numerous job openings will result from the need to replace programmers who leave the labor force or transfer to other occupations such as manager or systems analyst. Employment of programmers, however, is expected to grow much more slowly than that of other computer specialists. With the rapid gains in technology, sophisticated computer software now has the capability to write basic code, eliminating the need for more programmers to do this routine work. The consolida­ tion and centralization of systems and applications, develop­ ments in packaged software; advances in programming lan­ guages and tools, and the growing ability of users to design, write, and implement more of their own programs means that more of the programming functions can be transferred from pro­ grammers to other types of workers. Furthermore, as the level of technological innovation and sophistication increases, program­ mers are likely to face increasing competition from program­ ming businesses overseas, to which much routine work can be contracted out at a lower cost. Nevertheless, employers will continue to need programmers who have strong technical skills and who understand an employer’s business and its programming requirements. This means that programmers will have to keep abreast of changing programming languages and techniques. Given the importance  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  99  of networking and the expansion of client/server, Web-based, and wireless environments, organizations will look for program­ mers who can support data communications and help to imple­ ment electronic commerce and Intranet strategies. Demand for programmers with strong object-oriented programming capa­ bilities and technical specialization in areas such as client/server programming, wireless applications, multimedia technology, and graphic user interface (GUI) should arise from the expansion of intranets, extranets, and Internet applications. Programmers also will be needed to create and maintain expert systems and embed these technologies in more products. Finally, growing empha­ sis on cyber-security will lead to increased demand for program­ mers who are familiar with digital security issues and skilled in using appropriate security technology. As programming tasks become increasingly sophisticated and additional levels of skill and experience are demanded by employers, graduates of 2-year programs and people with less than a 2-year degree or its equivalent in work experience should face strong competition for programming jobs. Competition for entry-level positions, however, also can affect applicants with a bachelor’s degree. Prospects should be best for college gradu­ ates with knowledge of, and experience working with, a variety of programming languages and tools—including C++ and other object-oriented languages such as Java, as well as newer, do­ main-specific languages that apply to computer networking, database management, and Internet application development. Obtaining vendor-specific or language-specific certification also can provide a competitive edge. Because demand fluctuates with employers’ needs, jobseekers should keep up to date with the latest skills and technologies. Individuals who want to be­ come programmers can enhance their prospects by combining the appropriate formal training with practical work experience. Earnings Median annual earnings of computer programmers were $60,290 in 2002. The middle 50 percent earned between $45,960 and $78,140 a year. The lowest 10 percent earned less than $35,080; the highest 10 percent earned more than $96,860. Median an­ nual earnings in the industries employing the largest numbers of computer programmers in 2002 were: Professional and commercial equipment and supplies merchant wholesalers..................................................................................... $70,440 Software publishers............................................................................ 66,870 Computer systems design and related services........................... 65,640 Management of companies and enterprises................................. 59,850 Data processing, hosting, and related services........................... 59,300  According to the National Association of Colleges and Em­ ployers, starting salary offers for graduates with a bachelor’s degree in computer programming averaged $45,558 a year in 2003. According to Robert Half International, a firm providing spe­ cialized staffing services, average annual starting salaries in 2003 ranged from $51,500 to $80,500 for applications devel­ opment programmers/analysts, and from $55,000 to $87,750 for software developers. Average starting salaries for mainframe systems programmers ranged from $53,250 to $68,750 in 2003. Related Occupations Other professional workers who deal extensively with data in­ clude computer software engineers; computer systems analysts, database administrators, and computer scientists; statisticians; mathematicians; engineers; financial analysts and personal fi­  100  Occupational Outlook Handbook  nancial advisors; accountants and auditors; actuaries; and op­ erations research analysts. Sources of Additional Information State employment service offices can provide information about job openings for computer programmers. Municipal chambers of commerce are an additional source of information on an area’s largest employers. Further information about computer careers is available from: >• Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org >■ Institute of Electrical and Electronics Engineers Computer Society, Head­ quarters Office, 1730 Massachusetts Ave. NW., Washington, DC 20036­ 1992. Internet: http://www.computer.org >• National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http ://www.nwcet.org  Computer Software Engineers (0*NET 15-1031.00, 15-1032.00)  Significant Points •  •  •  Computer software engineers are projected to be one of the fastest growing occupations over the 2002-12 period. Highly favorable opportunities are expected for college graduates with at least a bachelor’s degree in computer engineering or computer science and with practical work experience. Computer software engineers must continually strive to acquire new skills in conjunction with the rapid changes in computer technology.  Nature of the Work The explosive impact of computers and information technol­ ogy on our everyday lives has generated a need to design and develop new computer software systems and to incorporate new technologies in a rapidly growing range of applications. The tasks performed by workers known as computer software engi­ neers evolve quickly, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employers. Computer software engineers apply the principles and techniques of computer science, engineering, and math­ ematical analysis to the design, development, testing, and evalu­ ation of the software and systems that enable computers to per­ form their many applications. (A separate statement on computer hardware engineers appears elsewhere in the Handbook.) Software engineers working in applications or systems de­ velopment analyze users’ needs and design, construct, test, and maintain computer applications software or systems. Software engineers can be involved in the design and development of many types of software, including software for operating sys­ tems and network distribution, and compilers, which convert programs for execution on a computer. In programming, or cod­ ing, software engineers instruct a computer, line by line, how to perform a function. They also solve technical problems that arise. Software engineers must possess strong programming skills, but are more concerned with developing algorithms and  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  analyzing and solving programming problems than with actu­ ally writing code. (A separate statement on computer program­ mers appears elsewhere in the Handbook.) Computer applications software engineers analyze users’ needs and design, construct, and maintain general computer applications software or specialized utility programs. These workers use different programming languages, depending on the purpose of the program. The programming languages most often used are C, C++, and Java, with Fortran and COBOL used less commonly. Some software engineers develop both pack­ aged systems and systems software or create customized appli­ cations. Computer systems software engineers coordinate the con­ struction and maintenance of a company’s computer systems and plan their future growth. Working with a company, they coordinate each department’s computer needs—ordering, in­ ventory, billing, and payroll recordkeeping, for example—and make suggestions about its technical direction. They also might set up the company’s intranets—networks that link computers within the organization and ease communication among the various departments. Systems software engineers work for companies that config­ ure, implement, and install complete computer systems. They may be members of the marketing or sales staff, serving as the primary technical resource for sales workers and customers. They also may be involved in product sales and in providing their customers with continuing technical support. Computer software engineers often work as part of a team that designs new hardware, software, and systems. A core team may comprise engineering, marketing, manufacturing, and de­ sign people who work together until the product is released. Working Conditions Computer software engineers normally work in well-lighted and comfortable offices or computer laboratories in which computer equipment is located. Most software engineers work at least 40 hours a week; however, due to the project-oriented nature of the work, they also may have to work evenings or weekends to meet deadlines or solve unexpected technical problems. Like other workers who sit for hours at a computer, typing on a key­ board, software engineers are susceptible to eyestrain, back  L  Computer software engineers design, create, and modify computer applications.  Professional and Related Occupations discomfort, and hand and wrist problems such as carpal tunnel syndrome. As they strive to improve software for users, many computer software engineers interact with customers and coworkers. Com­ puter software engineers who are employed by software vendors and consulting firms, for example, spend much of their time away from their offices, frequently traveling overnight to meet with customers. They call on customers in businesses ranging from manufacturing plants to financial institutions. As networks expand, software engineers may be able to use modems, laptops, e-mail, and the Internet to provide more tech­ nical support and other services from their main office, connect­ ing to a customer’s computer remotely to identify and correct developing problems. Employment Computer software engineers held about 675,000 jobs in 2002. About 394,000 were computer applications software engineers, and about 281,000 were computer systems software engineers. Although they are employed in most industries, the largest con­ centration of computer software engineers, about 30 percent, is in computer systems design and related services. Many com­ puter software engineers also work for establishments in other industries, such as government agencies, manufacturers of com­ puters and related electronic equipment, and colleges and uni­ versities. Employers of computer software engineers range from startup companies to established industry leaders. The proliferation of Internet, e-mail, and other communications systems expands electronics to engineering firms traditionally associated with unrelated disciplines. Engineering firms specializing in build­ ing bridges and power plants, for example, hire computer soft­ ware engineers to design and develop new geographic data sys­ tems and automated drafting systems. Communications firms need computer software engineers to tap into growth in the per­ sonal communications market. Major communications compa­ nies have many job openings for both computer software appli­ cations and computer systems engineers. An increasing number of computer software engineers are employed on a temporary or contract basis, with many being self-employed, working independently as consultants. Some consultants work for firms that specialize in developing and maintaining client companies’ Web sites and intranets. Con­ sulting opportunities for software engineers should grow as busi­ nesses need help managing, upgrading, and customizing in­ creasingly complex computer systems. About 21,000 computer software engineers were self-employed in 2002. Training, Other Qualifications, and Advancement Most employers prefer to hire persons who have at least a bachelor’s degree and broad knowledge of, and experience with, a variety of computer systems and technologies. Usual degree concentrations for applications software engineers are computer science or software engineering; for systems software engineers, usual concentrations are computer science or computer infor­ mation systems. Graduate degrees are preferred for some of the more complex jobs. Academic programs in software engineering emphasize soft­ ware and may be offered as a degree option or in conjunction with computer science degrees. Increasing emphasis on com­ puter security suggests that software engineers with advanced   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  101  degrees that include mathematics and systems design will be sought after by software developers, government agencies, and consulting firms specializing in information assurance and se­ curity. Students seeking software engineering jobs enhance their employment opportunities by participating in internship or co-op programs offered through their schools. These experi­ ences provide the students with broad knowledge and experi­ ence, making them more attractive candidates to employers. Inexperienced college graduates may be hired by large com­ puter and consulting firms that train new hires in intensive, company-based programs. In many firms, new employees are mentored, and their mentors have an input into the new hires’ evaluations. For systems software engineering jobs that require workers who have a college degree, a bachelor’s degree in computer science or computer information systems is typical. For systems engineering jobs that place less emphasis on workers having a computer-related degree, computer training programs leading to certification are offered by systems software vendors, includ­ ing Microsoft, Novell, and Oracle. These programs usually last from 1 to 4 weeks, but the worker is not required to attend classes in order to sit for a certification exam; several study guides also are available to help prepare for the exams. Nonetheless, many training authorities feel that program certification alone is not sufficient for most software engineering jobs. Professional certification is now offered by the Institute of Electrical and Electronics Engineers (IEEE) Computer Society. To be classified as a Certified Software Development Profes­ sional, individuals need a bachelor’s degree and work experi­ ence that demonstrates that they have mastered a relevant body of knowledge, and must pass a written exam. Persons interested in jobs as computer software engineers must have strong problem-solving and analytical skills. They also must be able to communicate effectively with team mem­ bers, other staff, and the customers they meet. Because they often deal with a number of tasks simultaneously, they must be able to concentrate and pay close attention to detail. As is the case with most occupations, advancement opportu­ nities for computer software engineers increase with experience. Entry-level computer software engineers are likely to test and verify ongoing designs. As they become more experienced, computer software engineers may be involved in designing and developing software. Eventually, they may advance to become a project manager, manager of information systems, or chief information officer. Some computer software engineers with several years of experience or expertise find lucrative opportu­ nities working as systems designers or independent consultants or starting their own computer consulting firms. As technological advances in the computer field continue, employers demand new skills. Computer software engineers must continually strive to acquire such skills if they wish to remain in this extremely dynamic field. To help them keep up with the changing technology, continuing education and pro­ fessional development seminars are offered by employers and software vendors, colleges and universities, private training in­ stitutions, and professional computing societies. Job Outlook Computer software engineers are projected to be one of the fast­ est growing occupations from 2002 to 2012. Rapid employ­ ment growth in the computer systems design and related ser­  102  Occupational Outlook Handbook  vices industry, which employs the greatest number of computer software engineers, should result in highly favorable opportu­ nities for those college graduates with at least a bachelor’s de­ gree in computer engineering or computer science and practical experience working with computers. Employers will continue to seek computer professionals with strong programming, sys­ tems analysis, interpersonal, and business skills. Despite the recent downturn among firms specializing in in­ formation technology, employment of computer software engi­ neers is expected to increase much faster than the average for all occupations, as businesses and other organizations adopt and integrate new technologies and seek to maximize the efficiency of their computer systems. Job growth will not be as rapid as during the previous decade, however, as the software industry begins to mature and as routine software engineering work is increasingly outsourced overseas. Competition among busi­ nesses will continue to create an incentive for increasingly so­ phisticated technological innovations, and organizations will need more computer software engineers to implement these changes. In addition to jobs created through employment growth, many job openings will result annually from the need to replace workers who move into managerial positions, transfer to other occupations, or leave the labor force. Demand for computer software engineers will increase as com­ puter networking continues to grow. For example, the expand­ ing integration of Internet technologies and the explosive growth in electronic commerce—doing business on the Internet—have resulted in rising demand for computer software engineers who can develop Internet, intranet, and World Wide Web applica­ tions. Likewise, expanding electronic data-processing systems in business, telecommunications, government, and other set­ tings continue to become more sophisticated and complex. Growing numbers of systems software engineers will be needed to implement, safeguard, and update systems and resolve prob­ lems. Consulting opportunities for computer software engi­ neers also should continue to grow as businesses seek help to manage, upgrade, and customize their increasingly complex computer systems. New growth areas will continue to arise from rapidly evolv­ ing technologies. The increasing uses of the Internet, the prolif­ eration of Web sites, and “mobile” technology such as the wire­ less Internet have created a demand for a wide variety of new products. As individuals and businesses rely more on hand­ held computers and wireless networks, it will be necessary to integrate current computer systems with this new, more mobile technology. Also, information security concerns have given rise to new software needs. Concerns over “cyber security” should result in businesses and government continuing to invest heavily in security software that protects their networks and vital elec­ tronic infrastructure from attack. The expansion of this technol­ ogy in the next 10 years will lead to an increased need for com­ puter engineers to design and develop the software and systems to run these new applications and that will allow them to be integrated into older systems. As with other information technology jobs, employment growth of computer software engineers may be tempered some­ what by an increase in contracting out of software development abroad. Firms may look to cut costs by shifting operations to foreign countries with highly educated workers who have strong technical skills.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Earnings Median annual earnings of computer applications software en­ gineers who worked full time in 2002 were about $70,900. The middle 50 percent earned between $55,510 and $88,660. The lowest 10 percent earned less than $44,830, and the highest 10 percent earned more than $109,800. Median annual earn­ ings in the industries employing the largest numbers of com­ puter applications software engineers in 2002 were: Software publishers............................................................................ $76,450 Navigational, measuring, electromedical, and control instruments manufacturing............................................................. 75,890 Computer systems design and related services........................... 71,890 Architectural, engineering, and relatedservices............................ 70,090 Management of companies andenterprises....................................... 67,260  Median annual earnings of computer systems software engi­ neers who worked full time in 2002 were about $74,040. The middle 50 percent earned between $58,500 and $91,160. The lowest 10 percent earned less than $45,890, and the highest 10 percent earned more than $111,600. Median annual earnings in the industries employing the largest numbers of computer sys­ tems software engineers in 2002 are shown below: Scientific research and development services ............................. $82,270 Software publishers............................................................................. 77,120 Navigational, measuring, electromedical, and control 76,200 instruments manufacturing.............................................................. Computer systems design and related services................................ 73,460 Wired telecommunications carriers.................................................... 68,510  According to the National Association of Colleges and Em­ ployers, starting salary offers for graduates with a bachelor’s degree in computer engineering averaged $51,343 in 2003, and those with a master’s degree averaged $64,200. Starting salary offers for graduates with a bachelor’s degree in computer sci­ ence averaged $47,109. According to Robert Half International, starting salaries for software engineers in software development ranged from $64,250 to $97,000 in 2003. In addition to typical benefits, computer software engineers may be provided with profit sharing, stock options, and a com­ pany car with a mileage allowance. Related Occupations Other workers who use mathematics and logic extensively in­ clude computer systems analysts, database administrators, and computer scientists; computer programmers; financial analysts and personal financial advisors; computer hardware engineers; computer support specialists and systems administrators; statis­ ticians; mathematicians; management analysts; actuaries; and operations research analysts. Sources of Additional Information Additional information on a career in computer software engi­ neering is available from any of the following sources: >• Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org >- Institute of Electronics and Electrical Engineers Computer Society, Head­ quarters Office, 1730 Massachusetts Ave. NW., Washington, DC 20036­ 1992. Internet: http://www.computer.org >- National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  Professional and Related Occupations  Computer Support Specialists and Systems Administrators (0*NET 15-1041.00, 15-1071.00)  Significant Points •  • •  Computer support specialists and systems administrators are projected to be among the fastest growing occupations over the 2002-12 period. There are many paths of entry to these occupations. Job prospects should be best for college graduates who are up to date with the latest skills and technologies; certifications and practical experience are essential for persons without degrees.  Nature of the Work In the last decade, computers have become an integral part of everyday life, used for a variety of reasons at home, in the work­ place, and at schools. And almost every computer user encoun­ ters a problem occasionally, whether it is the disaster of a crash­ ing hard drive or the annoyance of a forgotten password. The explosion of computer use has created a high demand for spe­ cialists to provide advice to users, as well as day-to-day admin­ istration, maintenance, and support of computer systems and networks. Computer support specialists provide technical assistance, support, and advice to customers and other users. This occupa­ tional group includes technical support specialists and help­ desk technicians. These troubleshooters interpret problems and provide technical support for hardware, software, and systems. They answer telephone calls, analyze problems using automated diagnostic programs, and resolve recurrent difficulties. Support specialists may work either within a company that uses com­ puter systems or directly for a computer hardware or software vendor. Increasingly, these specialists work for help-desk or support services firms, where they provide computer support to clients on a contract basis. Technical support specialists are troubleshooters, providing valuable assistance to their organization’s computer users. Be­ cause many nontechnical employees are not computer experts, they often run into computer problems that they cannot resolve on their own. Technical support specialists install, modify, clean, and repair computer hardware and software. They also may work on monitors, keyboards, printers, and mice. Technical support specialists answer telephone calls from their organizations’ computer users and may run automatic di­ agnostics programs to resolve problems. They also may write training manuals and train computer users how to properly use new computer hardware and software. In addition, technical support specialists oversee the daily performance of their company’s computer systems and evaluate software programs for usefulness. Help-desk technicians assist computer users with the inevi­ table hardware and software questions not addressed in a product’s instruction manual. Help-desk technicians field tele­ phone calls and e-mail messages from customers seeking guid­ ance on technical problems. In responding to these requests for guidance, help-desk technicians must listen carefully to the customer, ask questions to diagnose the nature of the problem, and then patiently walk the customer through the problem­ solving steps.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  103  Help-desk technicians deal directly with customer issues, and companies value them as a source of feedback on their products. These technicians are consulted for information about what gives customers the most trouble, as well as other customer concerns. Most computer support specialists start out at the help desk. Network or computer systems administrators design, install, and support an organization’s LAN (local-area network), WAN (wide-area network), network segment, Internet, or intranet sys­ tem. They provide day-to-day onsite administrative support for software users in a variety of work environments, including pro­ fessional offices, small businesses, government, and large cor­ porations. They maintain network hardware and software, ana­ lyze problems, and monitor the network to ensure its availability to system users. These workers gather data to identify customer needs and then use that information to identify, interpret, and evaluate system and network requirements. Administrators also may plan, coordinate, and implement network security mea­ sures. Systems administrators are the information technology em­ ployees responsible for the efficient use of networks by organi­ zations. They ensure that the design of an organization’s com­ puter site allows all of the components, including computers, the network, and software, to fit together and work properly. Furthermore, they monitor and adjust performance of existing networks and continually survey the current computer site to determine future network needs. Administrators also trouble­ shoot problems as reported by users and automated network monitoring systems and make recommendations for enhance­ ments in the implementation of future servers and networks. In some organizations, computer security specialists may plan, coordinate, and implement the organization’s information security. These workers may be called upon to educate users on computer security, install security software, monitor the net­ work for security breaches, respond to cyber attacks, and in some cases, gather data and evidence to be used in prosecuting cyber crime. This and other growing specialty occupations re­ flect the increasing emphasis on client-server applications, the expansion of Internet and intranet applications, and the demand for more end-user support. Working Conditions Computer support specialists and systems administrators nor­ mally work in well-lit, comfortable offices or computer labora­ tories. They usually work about 40 hours a week, but that may include being “on call” via pager or telephone for rotating evening or weekend work if the employer requires computer support over extended hours. Overtime may be necessary when unexpected technical problems arise. Like other workers who type on a keyboard for long periods, computer support special­ ists and systems administrators are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome. Due to the heavy emphasis on helping all types of computer users, computer support specialists and systems administrators constantly interact with customers and fellow employees as they answer questions and give valuable advice. Those who work as consultants are away from their offices much of the time, some­ times spending months working in a client’s office. As computer networks expand, more computer support spe­ cialists and systems administrators may be able to connect to a customer’s computer remotely, using modems, laptops, e-mail, and the Internet, to provide technical support to computer users.  104  Occupational Outlook Handbook  Computer support specialists provide technical assistance, support, and advice to computer users. This capability would reduce or eliminate travel to the customer’s workplace. Systems administrators also can administer and con­ figure networks and servers remotely, although this practice is not as common as it is with computer support specialists. Employment Computer support specialists and systems administrators held about 758,000 jobs in 2002. Of these, about 507,000 were computer support specialists and about 251,000 were network and computer systems administrators. Although they worked in a wide range of industries, 35 percent of all computer support specialists and systems administrators were employed in profes­ sional and business services industries, principally in computer systems design and related services. Other organizations that employed substantial numbers of these workers include banks, government agencies, insurance companies, educational insti­ tutions, and wholesale and retail vendors of computers, office equipment, appliances, and home electronic equipment. Many computer support specialists also worked for manufacturers of computers, semiconductors, and other electronic components. Employers of computer support specialists and systems ad­ ministrators range from startup companies to established indus­ try leaders. With the continued development of the Internet, telecommunications, and e-mail, industries not typically asso­ ciated with computers—such as construction—increasingly need computer-related workers. Small and large firms across all industries are expanding or developing computer systems, cre­ ating an immediate need for computer support specialists and systems administrators. Training, Other Qualifications, and Advancement Due to the wide range of skills required, there are many paths of entry to a job as a computer support specialist or systems admin­ istrator. While there is no universally accepted way to prepare for a job as a computer support specialist, many employers pre­ fer to hire persons with some formal college education. A bachelor’s degree in computer science or information systems is a prerequisite for some jobs; however, other jobs may require only a computer-related associate degree. For systems adminis­ trators, many employers seek applicants with bachelor’s degrees, although not necessarily in a computer-related field. Many companies are becoming more flexible about requir­ ing a college degree for support positions because of the explo­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  sive demand for specialists. However, certification and practi­ cal experience demonstrating these skills will be essential for applicants without a degree. Completion of a certification train­ ing program, offered by a variety of vendors and product mak­ ers, may help some people to qualify for entry-level positions. Relevant computer experience may substitute for formal educa­ tion. Beginning computer support specialists usually work for or­ ganizations that deal directly with customers or in-house users. Then, they may advance into more responsible positions in which they use what they have learned from customers to improve the design and efficiency of future products. Job promotions usu­ ally depend more on performance than on formal education. Eventually, some computer support specialists become applica­ tions developers, designing products rather than assisting users. Computer support specialists at hardware and software compa­ nies often enjoy great upward mobility; advancement some­ times comes within months of initial employment. Entry-level network and computer systems administrators are involved in routine maintenance and monitoring of com­ puter systems, typically working behind the scenes in an orga­ nization. After gaining experience and expertise, they often are able to advance into more senior-level positions, in which they take on more responsibilities. For example, senior network and computer systems administrators may present recommendations to management on matters related to a company’s network. They also may translate the needs of an organization into a set of technical requirements, based on the available technology. As with support specialists, administrators may become software engineers, actually involved in the designing of the system or network and not just the day-to-day administration. Persons interested in becoming a computer support special­ ist or systems administrator must have strong problem-solving, analytical, and communication skills because troubleshooting and helping others are vital parts of the job. The constant interaction with other computer personnel, customers, and em­ ployees requires computer support specialists and systems ad­ ministrators to communicate effectively on paper, via e-mail, or in person. Strong writing skills are useful when preparing manu­ als for employees and customers. As technology continues to improve, computer support spe­ cialists and systems administrators must keep their skills cur­ rent and acquire new ones. Many continuing education pro­ grams are offered by employers, hardware and software vendors, colleges and universities, and private training institutions. Professional development seminars offered by computing ser­ vices firms also can enhance one’s skills and advancement opportunities. Job Outlook Employment of computer support specialist is expected to in­ crease faster than the average for all occupations through 2012, as organizations continue to adopt and integrate increasingly sophisticated technology. Job growth will continue to be driven by the continued expansion of the computer system design and related services industry, which is projected to remain one of the fastest growing industries in the U.S. economy, despite recent job losses. Job growth will not be as explosive as during the previous decade, however, as these jobs are being increasingly outsourced overseas. Employment growth among computer support specialists re­ flects the rapid pace of improved technology. As computers and software become more complex, support specialists will be  Professional and Related Occupations  105  needed to provide technical assistance to customers and other users. New mobility technologies, such as the wireless Internet, will continue to create a demand for these workers to familiarize and educate computer users. Consulting opportunities for com­ puter support specialists also should continue to grow as busi­ nesses increasingly need help managing, upgrading, and cus­ tomizing more complex computer systems. However, growth in employment of support specialists may be tempered somewhat as firms continue to cut costs by shifting more routine work abroad to countries where workers are highly skilled but labor costs are lower. Physical location is not as important for these workers as it is for others, because computer support specialists can provide assistance remotely and support services can be provided around the clock. Employment of systems administrators is expected to increase much faster than average as firms will continue to invest heavily in securing computer networks. Companies are looking for workers knowledgeable about the function and administration of networks. Such employees have become increasingly hard to find as systems administration has moved from being a separate function within corporations to one that forms a crucial element of business in an increasingly high-technology economy. Also, demand for computer security specialists will grow as businesses and government continue to invest heavily in “cyber-security,” protecting vital computer networks and electronic infrastruc­ ture from attack. The growth of electronic commerce means that more estab­ lishments use the Internet to conduct their business online. This translates into a need for information technology specialists who can help organizations use technology to communicate with employees, clients, and consumers. Explosive growth in these areas also is expected to fuel demand for specialists knowl­ edgeable about network, data, and communications security. Job prospects should be best for college graduates who are up to date with the latest skills and technologies, particularly if they have supplemented their formal education with some rel­ evant work experience. Employers will continue to seek com­ puter specialists who possess a strong background in funda­ mental computer skills, combined with good interpersonal and communication skills. Due to the rapid growth in demand for computer support specialists and systems administrators, those who have strong computer skills but do not have a bachelor’s degree should continue to qualify for some entry-level posi­ tions. However, certifications and practical experience are es­ sential for persons without degrees.  earned between $43,290 and $69,530. The lowest 10 percent earned less than $34,460, and the highest 10 percent earned more than $86,440. Median annual earnings in the industries employing the largest numbers of network and computer sys­ tems administrators in 2002 were:  Earnings Median annual earnings of computer support specialists were $39,100 in 2002. The middle 50 percent earned between $29,760 and $51,680. The lowest 10 percent earned less than $23,060, and the highest 10 percent earned more than $67,550. Median annual earnings in the industries employing the largest num­ bers of computer support specialists in 2002 were:  Significant Points  Professional and commercial equipment and supplies merchant wholesalers..................................................................................... $46,740 Software publishers............................................................................ 42,870 Computer systems design and related services........................... 41,110 Management of companies and enterprises................................. 40,850 Elementary and secondary schools................................................ 33,480  Median annual earnings of network and computer systems administrators were $54,810 in 2002. The middle 50 percent  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Wired telecommunications carriers............................................... Computer systems design and related services........................... Management of companies and enterprises................................. Data processing, hosting, and related services........................... Elementary and secondary schools................................................  $59,710 58,790 58,610 56,140 48,350  According to Robert Half International, starting salaries in 2003 ranged from $27,500 to $56,500 for help-desk support staff, and from $51,000 to $67,250 for more senior technical support specialists. For systems administrators, starting salaries in 2003 ranged from $49,000 to $70,250. Related Occupations Other computer-related occupations include computer program­ mers; computer software engineers; and computer systems ana­ lysts, database administrators, and computer scientists. Sources of Additional Information For additional information about a career as a computer support specialist, contact: >• Association of Computer Support Specialists, 218 Huntington Rd., Bridgeport, CT 06608. Internet: http://www.acss.org > Association of Support Professionals, 122 Barnard Ave., Watertown, MA 02472.  For additional information about a career as a systems ad­ ministrator, contact: >■ System Administrators Guild, 2560 9th St., Suite 215, Berkeley, CA 94710. Internet: http://www.sage.org Further information about computer careers is available from: >■ National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  Computer Systems Analysts, Database Administrators, and Computer Scientists_________ (0*NET 15-1011.00, 15-1051.00, 15-1061.00, 15-1081.00, 15-1099.99)  • •  •  Education requirements range from a 2-year degree to a graduate degree. Employment is expected to increase much faster than the average as organizations continue to adopt increasingly sophisticated technologies. Job prospects are favorable.  Nature of the Work The rapid spread of computers and information technology has generated a need for highly trained workers to design and de­ velop new hardware and software systems and to incorporate new technologies. These workers—computer systems analysts, database administrators, and computer scientists—include a wide  106  Occupational Outlook Handbook  range of computer specialists. Job tasks and occupational titles used to describe these workers evolve rapidly, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employers. Systems analysts solve computer problems and apply com­ puter technology to meet the individual needs of an organiza­ tion. They help an organization to realize the maximum benefit from its investment in equipment, personnel, and business pro­ cesses. Systems analysts may plan and develop new computer systems or devise ways to apply existing systems’ resources to additional operations. They may design new systems, includ­ ing both hardware and software, or add a new software applica­ tion to harness more of the computer’s power. Most systems analysts work with specific types of systems—for example, busi­ ness, accounting, or financial systems, or scientific and engi­ neering systems—that vary with the kind of organization. Some systems analysts also are known as systems developers or sys­ tems architects. Systems analysts begin an assignment by discussing the sys­ tems problem with managers and users to determine its exact nature. Defining the goals of the system and dividing the solu­ tions into individual steps and separate procedures, systems analysts use techniques such as structured analysis, data model­ ing, information engineering, mathematical model building, sampling, and cost accounting to plan the system. They specify the inputs to be accessed by the system, design the processing steps, and format the output to meet users’ needs. They also may prepare cost-benefit and return-on-investment analyses to help management decide whether implementing the proposed tech­ nology will be financially feasible. When a system is accepted, systems analysts determine what computer hardware and software will be needed to set the sys­ tem up. They coordinate tests and observe the initial use of the system to ensure that it performs as planned. They prepare speci­ fications, flow charts, and process diagrams for computer pro­ grammers to follow; then, they work with programmers to “de­ bug,” or eliminate, errors from the system. Systems analysts who do more indepth testing of products may be referred to as software quality assurance analysts. In addition to running tests, these individuals diagnose problems, recommend solu­ tions, and determine whether program requirements have been met. In some organizations, programmer-analysts design and up­ date the software that runs a computer. Because they are respon­ sible for both programming and systems analysis, these workers must be proficient in both areas. (A separate statement on com­ puter programmers appears elsewhere in the Handbook.) As this dual proficiency becomes more commonplace, these analysts increasingly work with databases, object-oriented programming languages, as well as client-server applications development and multimedia and Internet technology. One obstacle associated with expanding computer use is the need for different computer systems to communicate with each other. Because of the importance of maintaining up-to-date information-accounting records, sales figures, or budget projec­ tions, for example—systems analysts work on making the com­ puter systems within an organization, or among organizations, compatible so that information can be shared among them. Many systems analysts are involved with “networking,” connecting all the computers internally—in an individual office, depart­ ment, or establishment—or externally, because many organiza­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tions now rely on e-mail or the Internet. A primary goal of networking is to allow users to retrieve data from a mainframe computer or a server and use it on their desktop computer. Sys­ tems analysts must design the hardware and software to allow the free exchange of data, custom applications, and the com­ puter power to process it all. For example, analysts are called upon to ensure the compatibility of computing systems between and among businesses to facilitate electronic commerce. Networks come in many variations, so network systems and data communications analysts are needed to design, test, and evaluate systems such as local area networks (LANs), wide area networks (WANs), the Internet, intranets, and other data commu­ nications systems. Systems can range from a connection be­ tween two offices in the same building to globally distributed networks, voice mail, and e-mail systems of a multinational organization. Network systems and data communications ana­ lysts perform network modeling, analysis, and planning; they also may research related products and make necessary hard­ ware and software recommendations. Telecommunications spe­ cialists focus on the interaction between computer and commu­ nications equipment. These workers design voice and data communication systems, supervise the installation of those sys­ tems, and provide maintenance and other services to clients after the system is installed. The growth of the Internet and the expansion of the World Wide Web (the graphical portion of the Internet) have generated a variety of occupations related to the design, development, and maintenance of Web sites and their servers. For example, webmasters are responsible for all technical aspects of a Web site, including performance issues such as speed of access, and for approving the content of the site. Internet developers or Web developers, also called Web designers, are responsible for day-to-day site design and creation. Computer scientists work as theorists, researchers, or inven­ tors. Their jobs are distinguished by the higher level of theo­ retical expertise and innovation they apply to complex prob­ lems and the creation or application of new technology. Those employed by academic institutions work in areas ranging from complexity theory, to hardware, to programming-language de­ sign. Some work on multidisciplinary projects, such as devel­ oping and advancing uses of virtual reality, extending human-  Computer systems analysts solve computer problems and use computer technology to meet the needs of an organization.  Professional and Related Occupations computer interaction, or designing robots. Their counterparts in private industry work in areas such as applying theory, devel­ oping specialized languages or information technologies, or designing programming tools, knowledge-based systems, or even computer games. With the Internet and electronic business generating large volumes of data, there is a growing need to be able to store, manage, and extract data effectively. Database administrators work with database management systems software and deter­ mine ways to organize and store data. They identify user re­ quirements, set up computer databases, and test and coordinate modifications to the systems. An organization’s database ad­ ministrator ensures the performance of the system, understands the platform on which the database runs, and adds new users to the system. Because they also may design and implement sys­ tem security, database administrators often plan and coordinate security measures. With the volume of sensitive data generated every second growing rapidly, data integrity, backup systems, and database security have become increasingly important as­ pects of the job of database administrators. Working Conditions Computer systems analysts, database administrators, and com­ puter scientists normally work in offices or laboratories in com­ fortable surroundings. They usually work about 40 hours a week—the same as many other professional or office workers do. However, evening or weekend work may be necessary to meet deadlines or solve specific problems. Given the technol­ ogy available today, telecommuting is common for computer professionals. As networks expand, more work can be done from remote locations through modems, laptops, electronic mail, and the Internet. Like other workers who spend long periods in front of a com­ puter terminal typing on a keyboard, computer systems ana­ lysts, database administrators, and computer scientists are sus­ ceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome or cumulative trauma disorder. Employment Computer systems analysts, database administrators, and com­ puter scientists held about 979,000 jobs in 2002; including about 89,000 who were self-employed. Employment was dis­ tributed among the following detailed occupations: Computer systems analysts............................................................... 468,000 Network systems and data communications analysts................ 186,000 Database administrators.................................................................... 110,000 Computer and information scientists, research........................... 23,000 All other computer specialists ............................................................ 192,000  Although they are increasingly employed in every sector of the economy, the greatest concentration of these workers is in the computer systems design and related services industry. Firms in this industry provide services related to the commercial use of computers on a contract basis, including custom computer programming services; computer systems integration design services; computer facilities management services, including computer systems or data-processing facilities support services for clients; and other computer-related services, such as disaster recovery services and software installation. Many computer  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  107  systems analysts, database administrators, and computer scien­ tists are employed by Internet service providers, web search portals, and data-processing, hosting, and related services firms. Others work for government, manufacturers of computer and electronic products, insurance companies, financial institutions, and universities. A growing number of computer specialists, such as systems analysts and network and data communications analysts, are employed on a temporary or contract basis; many of these indi­ viduals are self-employed, working independently as contrac­ tors or consultants. For example, a company installing a new computer system may need the services of several systems ana­ lysts just to get the system running. Because not all of the analysts would be needed once the system is functioning, the company might contract for such employees with a temporary help agency or a consulting firm or with the systems analysts themselves. Such jobs may last from several months up to 2 years or more. This growing practice enables companies to bring in people with the exact skills the firm needs to complete a particular project, rather than having to spend time or money training or retraining existing workers. Often, experienced consultants then train a company’s in-house staff as a project develops. Training, Other Qualifications, and Advancement Rapidly changing technology requires an increasing level of skill and education on the part of employees. Companies look for professionals with an ever-broader background and range of skills, including not only technical knowledge, but also communication and other interpersonal skills. This shift from requiring workers to possess solely sound technical knowl­ edge emphasizes workers who can handle various responsibili­ ties. While there is no universally accepted way to prepare for a job as a systems analyst, computer scientist, or database ad­ ministrator, most employers place a premium on some formal college education. A bachelor’s degree is a prerequisite for many jobs; however, some jobs may require only a 2-year de­ gree. Relevant work experience also is very important. For more technically complex jobs, persons with graduate degrees are preferred. For systems analyst, programmer-analyst, and database ad­ ministrator positions, many employers seek applicants who have a bachelor’s degree in computer science, information science, or management information systems (MIS). MIS programs usually are part of the business school or college and differ consider­ ably from computer science programs, emphasizing business and management-oriented course work and business comput­ ing courses. Employers are increasingly seeking individuals with a master’s degree in business administration (MBA), with a concentration in information systems, as more firms move their business to the Internet. For some network systems and data communication analysts, such as webmasters, an associate’s degree or certificate is sufficient, although more advanced posi­ tions might require a computer-related bachelor’s degree. For computer and information scientists, a doctoral degree gener­ ally is required due to the highly technical nature of their work. Despite employers’ preference for those with technical de­ grees, persons with degrees in a variety of majors find employ­ ment in these computer occupations. The level of education and type of training that employers require depend on their  108  Occupational Outlook Handbook  needs. One factor affecting these needs is changes in technol­ ogy. Employers often scramble to find workers capable of imple­ menting “hot” new technologies. Those workers with formal education or experience in information security, for example, are in demand because of the growing need for their skills and services. Another factor driving employers’ needs is the timeframe during which a project must be completed. Most community colleges and many independent technical institutes and proprietary schools offer an associate’s degree in computer science or a related information technology field. Many of these programs may be more geared toward meeting the needs of local businesses and are more occupation specific than are 4-year degree programs. Some jobs may be better suited to the level of training that such programs offer. Employers usually look for people who have broad knowledge and experi­ ence related to computer systems and technologies, strong prob­ lem-solving and analytical skills, and good interpersonal skills. Courses in computer science or systems design offer good prepa­ ration for a job in these computer occupations. For jobs in a business environment, employers usually want systems analysts to have business management or closely related skills, while a background in the physical sciences, applied mathematics, or engineering is preferred for work in scientifically oriented orga­ nizations. Art or graphic design skills may be desirable for webmasters or Web developers. Jobseekers can enhance their employment opportunities by participating in internship or co-op programs offered through their schools. Because many people develop advanced com­ puter skills in a non-computer-related occupation and then trans­ fer those skills to a computer occupation, a background in the industry in which the person’s job is located, such as financial services, banking, or accounting, can be important. Others have taken computer science courses to supplement their study in fields such as accounting, inventory control, or other business areas. For example, a financial analyst who is proficient in computers might become a computer support specialist in fi­ nancial systems development, while a computer programmer might move into a systems analyst job. Computer systems analysts, database administrators, and computer scientists must be able to think logically and have good communication skills. Because they often deal with a number of tasks simultaneously, the ability to concentrate and pay close attention to detail is important. Although these com­ puter specialists sometimes work independently, they frequently work in teams on large projects. They must be able to commu­ nicate effectively with computer personnel, such as program­ mers and managers, as well as with users or other staff who may have no technical computer background. Computer scientists employed in private industry may ad­ vance into managerial or project leadership positions. Those employed in academic institutions can become heads of research departments or published authorities in their field. Systems ana­ lysts may be promoted to senior or lead systems analyst. Those who show leadership ability also can become project managers or advance into management positions such as manager of in­ formation systems or chief information officer. Database ad­ ministrators may advance into managerial positions, such as chief technology officer, on the basis of their experience man­ aging data and enforcing security. Computer specialists with work experience and considerable expertise in a particular sub­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ject or a certain application may find lucrative opportunities as independent consultants or may choose to start their own com­ puter consulting firms. Technological advances come so rapidly in the computer field that continuous study is necessary to keep one’s skills up to date. Employers, hardware and software vendors, colleges and universities, and private training institutions offer continu­ ing education. Additional training may come from professional development seminars offered by professional computing societies. Certification is a way to demonstrate a level of competence in a particular field. Some product vendors or software firms offer certification and require professionals who work with their products to be certified. Many employers regard these certifica­ tions as the industry standard. For example, one method of acquiring enough knowledge to get a job as a database admin­ istrator is to become certified in a specific type of database management. Voluntary certification also is available through various organizations associated with computer specialists. Professional certification may afford a jobseeker a competitive advantage. Job Outlook Computer systems analysts, database administrators, and com­ puter scientists are expected to be among the fastest growing occupations through 2012. Employment of these computer spe­ cialists is expected to grow much faster than the average for all occupations as organizations continue to adopt and integrate increasingly sophisticated technologies. Job increases will be driven by very rapid growth in computer system design and related services, which is projected to be one of the fastestgrowing industries in the U.S. economy. In addition, many job openings will arise annually from the need to replace workers who move into managerial positions or other occupations or who leave the labor force. Job growth will not be as rapid as during the previous decade, however, as the information tech­ nology sector begins to mature and as routine work is increas­ ingly outsourced overseas. Despite the recent economic downturn among information technology firms, workers in the occupation should still enjoy favorable job prospects. The demand for networking to facili­ tate the sharing of information, the expansion of client-server environments, and the need for computer specialists to use their knowledge and skills in a problem-solving capacity will be major factors in the rising demand for computer systems ana­ lysts, database administrators, and computer scientists. More­ over, falling prices of computer hardware and software should continue to induce more businesses to expand their computer­ ized operations and integrate new technologies into them. In order to maintain a competitive edge and operate more effi­ ciently, firms will keep demanding computer specialists who are knowledgeable about the latest technologies and are able to apply them to meet the needs of businesses. Increasingly, more sophisticated and complex technology is being implemented across all organizations, which should fuel the demand for these computer occupations. There is a growing demand for system analysts to help firms maximize their effi­ ciency with available technology. Expansion of electronic com­ merce—doing business on the Internet—and the continuing need to build and maintain databases that store critical informa­  Professional and Related Occupations tion on customers, inventory, and projects are fueling demand for database administrators familiar with the latest technology. Also, the increasing importance being placed on “cybersecurity”—the protection of electronic information—will result in a need for workers skilled in information security. The development of new technologies usually leads to de­ mand for various kinds of workers. The expanding integration of Internet technologies into businesses, for example, has re­ sulted in a growing need for specialists who can develop and support Internet and intranet applications. The growth of elec­ tronic commerce means that more establishments use the Internet to conduct their business online. The introduction of the wire­ less Internet, known as WiFi, creates new systems to be analyzed and new data to be administered. The spread of such new technologies translates into a need for information technology professionals who can help organizations use technology to communicate with employees, clients, and consumers. Explo­ sive growth in these areas also is expected to fuel demand for specialists who are knowledgeable about network, data, and communications security. As technology becomes more sophisticated and complex, employers demand a higher level of skill and expertise from their employees. Individuals with an advanced degree in com­ puter science or computer engineering or with an MBA with a concentration in information systems should enjoy highly fa­ vorable employment prospects. College graduates with a bachelor’s degree in computer science, computer engineering, information science, or MIS also should enjoy favorable pros­ pects for employment, particularly if they have supplemented their formal education with practical experience. Because em­ ployers continue to seek computer specialists who can combine strong technical skills with good interpersonal and business skills, graduates with non-computer-science degrees, but who have had courses in computer programming, systems analysis, and other information technology areas, also should continue to find jobs in these computer fields. In fact, individuals with the right experience and training can work in these computer occupations regardless of their college major or level of formal education. Earnings Median annual earnings of computer systems analysts were $62,890 in 2002. The middle 50 percent earned between $49,500 and $78,350 a year. The lowest 10 percent earned less than $39,270, and the highest 10 percent earned more than $93,400. Median annual earnings in the industries employing the largest numbers of computer systems analysts in 2002 were as follows: Federal Government.......................................................................... Computer systems design and related services........................... Data processing, hosting, and related services........................... Management of companies and enterprises................................. Insurance carriers................................................................................  $68,370 67,690 64,560 63,390 59,510  Median annual earnings of database administrators were $55,480 in 2002. The middle 50 percent earned between $40,550 and $75,100. The lowest 10 percent earned less than $30,750, and the highest 10 percent earned more than $92,910. In 2002, median annual earnings of database administrators employed in computer system design and related services were $66,650,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  109  and, for those in management of companies and enterprises, earnings were $59,620. Median annual earnings of network systems and data communication analysts were $58,420 in 2002. The middle 50 percent earned between $44,850 and $74,290. The lowest 10 percent earned less than $34,880, and the highest 10 per­ cent earned more than $92,110. Median annual earnings in the industries employing the largest numbers of network systems and data communications analysts in 2002 were as follows: Computer systems design and related services................................. $65,800 Management of companies and enterprises........................................ 63,050 State government........................................................................................45,110  Median annual earnings of computer and information scien­ tists, research, were $77,760 in 2002. The middle 50 percent earned between $58,630 and $98,490. The lowest 10 percent earned less than $42,890, and the highest 10 percent earned more than $121,650. Median annual earnings of computer and information scientists employed in computer systems design and related services in 2002 were $78,730. Median annual earnings of all other computer specialists were $54,070 in 2002. Median annual earnings of all other computer specialists employed in computer system design and related services were $49,590, and, for those in scientific re­ search and development services, earnings were $70,150 in 2002. According to the National Association of Colleges and Em­ ployers, starting offers for graduates with a master’s degree in computer science averaged $62,806 in 2003. Starting offers averaged $47,109 for graduates with a bachelor’s degree in com­ puter science; $45,346 for those with a degree in computer pro­ gramming; $41,118 for those with a degree in computer systems analysis; $40,556 for those with a degree in management infor­ mation systems; and $38,282 for those with a degree in informa­ tion sciences and systems. According to Robert Half International, starting salaries in 2003 ranged from $69,750 to $101,750 for database adminis­ trators. Salaries for networking and Internet-related occupa­ tions ranged from $45,500 to $65,750 for LAN administrators and from $51,250 to $73,750 for Internet /Intranet developers. Starting salaries for security professionals ranged from $62,500 to $91,750 in 2003. Related Occupations Other workers who use logic and creativity to solve business and technical problems are computer programmers, computer software engineers, computer and information systems manag­ ers, financial analysts and personal financial advisors, urban and regional planners, engineers, mathematicians, statisticians, operations research analysts, management analysts, and actuaries. Sources of Additional Information Further information about computer careers is available from any of the following organizations: >- Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org > Institute of Electrical and Electronics Engineers Computer Society, Head­ quarters Office, 1730 Massachusetts Ave. NW., Washington, DC 20036­ 1992. Internet: http://www.computer.org >• National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  110  Occupational Outlook Handbook  Mathematicians (0*NET 15-2021.00)  it :■  Significant Points •  •  •  A Ph.D. degree in mathematics usually is the minimum education needed, except in the Federal Government. Employment is expected to contract, reflecting the decline in the number of jobs with the title mathematician; competition will be keen for the limited number of jobs. Master’s and Ph.D. degree holders with a strong background in mathematics and a related discipline, such as computer science or engineering, should have better employment opportunities in related occupations.  Nature of the Work Mathematics is one of the oldest and most fundamental sci­ ences. Mathematicians use mathematical theory, computational techniques, algorithms, and the latest computer technology to solve economic, scientific, engineering, physics, and business problems. The work of mathematicians falls into two broad classes—theoretical (pure) mathematics and applied mathemat­ ics. These classes, however, are not sharply defined, and often overlap. Theoretical mathematicians advance mathematical knowl­ edge by developing new principles and recognizing previously unknown relationships between existing principles of math­ ematics. Although these workers seek to increase basic knowl­ edge without necessarily considering its practical use, such pure and abstract knowledge has been instrumental in producing or furthering many scientific and engineering achievements. Many theoretical mathematicians are employed as university faculty, and divide their time between teaching and conducting research. (See the statement on teachers—postsecondary, elsewhere in the Handbook.) Applied mathematicians, on the other hand, use theories and techniques, such as mathematical modeling and computational methods, to formulate and solve practical problems in business, government, and engineering, and in the physical, life, and so­ cial sciences. For example, they may analyze the most efficient way to schedule airline routes between cities, the effect and safety of new drugs, the aerodynamic characteristics of an ex­ perimental automobile, or the cost-effectiveness of alternative manufacturing processes. Applied mathematicians working in industrial research and development may develop or enhance mathematical methods when solving a difficult problem. Some mathematicians, called cryptanalysts, analyze and decipher en­ cryption systems designed to transmit military, political, finan­ cial, or law enforcement-related information in code. Applied mathematicians start with a practical problem, envi­ sion the separate elements of the process under consideration, and then reduce the elements to mathematical variables. They often use computers to analyze relationships among the vari­ ables and solve complex problems by developing models with alternative solutions. Much of the work in applied mathematics is done by indi­ viduals with titles other than mathematician. In fact, because  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Mathematicians often use theory to explain mathematical relationships in the real world. mathematics is the foundation upon which so many other aca­ demic disciplines are built, the number of workers using math­ ematical techniques is much greater than the number formally designated as mathematicians. For example, engineers, com­ puter scientists, physicists, and economists are among those who use mathematics extensively. Some professionals, includ­ ing statisticians, actuaries, and operations research analysts, actually are specialists in a particular branch of mathematics. Frequently, applied mathematicians are required to collaborate with other workers in their organizations to achieve common solutions to problems. (For more information, see the state­ ments on actuaries, operations research analysts, and statisti­ cians elsewhere in the Handbook.) Working Conditions Mathematicians usually work in comfortable offices. They of­ ten are part of an interdisciplinary team that may include econo­ mists, engineers, computer scientists, physicists, technicians, and others. Deadlines, overtime work, special requests for infor­ mation or analysis, and prolonged travel to attend seminars or conferences may be part of their jobs. Mathematicians who work in academia usually have a mix of teaching and research responsibilities. These mathematicians often conduct research alone, or are aided by graduate students interested in the topic being researched. Employment Mathematicians held about 2,900 jobs in 2002. In addition, about 20,000 persons held full-time mathematics faculty posi­ tions in colleges and universities in 2002, according to the American Mathematical Society. Many nonfaculty mathematicians work for Federal or State governments. The U.S. Department of Defense is the primary Federal employer, accounting for about three-fourths of the mathematicians employed by the Federal Government. Most other mathematicians employed by the Federal Government work for the National Aeronautics and Space Administration (NASA). In the private sector, major employers include insur­ ance carriers, scientific research and development services, and management, scientific, and technical consulting services. Within manufacturing, the aerospace and pharmaceutical in­ dustries are the key employers. Some mathematicians also work for investment banks, insurance companies, and securities and commodity exchanges.  Professional and Related Occupations Training, Other Qualifications, and Advancement A Ph.D. degree in mathematics usually is the minimum educa­ tion needed for prospective mathematicians, except in the Fed­ eral Government. In the Federal Government, entry-level job candidates usually must have a 4-year degree with a major in mathematics or a 4-year degree with the equivalent of a math­ ematics major—24 semester hours of mathematics courses. In private industry, candidates for mathematician jobs typi­ cally need a master’s or Ph.D. degree. Most of the positions designated for mathematicians are in research and development laboratories, as part of technical teams. Research scientists in such positions engage either in basic research on pure math­ ematical principles or in applied research on developing or im­ proving specific products or processes. The majority of those with a bachelor’s or master’s degree in mathematics who work in private industry do so not as mathematicians, but in related fields such as computer science, where they have titles such as computer programmer, systems analyst, or systems engineer. A bachelor’s degree in mathematics is offered by most col­ leges and universities. Mathematics courses usually required for this degree include calculus, differential equations, and lin­ ear and abstract algebra. Additional courses might include prob­ ability theory and statistics, mathematical analysis, numerical analysis, topology, discrete mathematics, and mathematical logic. Many colleges and universities urge or require students majoring in mathematics to take courses in a field that is closely related to mathematics, such as computer science, engineering, life science, physical science, or economics. A double major in mathematics and another related discipline is particularly desir­ able to many employers. High school students who are prospec­ tive college mathematics majors should take as many math­ ematics courses as possible while in high school. In 2003, about 225 colleges and universities offered a master’s degree as the highest degree in either pure or applied mathemat­ ics; about 200 offered a Ph.D. degree in pure or applied math­ ematics. In graduate school, students conduct research and take advanced courses, usually specializing in a subfield of math­ ematics. For jobs in applied mathematics, training in the field in which the mathematics will be used is very important. Mathematics is used extensively in physics, actuarial science, statistics, engi­ neering, and operations research. Computer science, business and industrial management, economics, finance, chemistry, ge­ ology, life sciences, and behavioral sciences are likewise de­ pendent on applied mathematics. Mathematicians also should have substantial knowledge of computer programming, because most complex mathematical computation and much mathemati­ cal modeling are done on a computer. Mathematicians need good reasoning ability and persistence in order to identify, analyze, and apply basic principles to tech­ nical problems. Communication skills are important, as math­ ematicians must be able to interact and discuss proposed solu­ tions with people who may not have an extensive knowledge of mathematics. Job Outlook Competition is keen for the limited number of jobs as mathema­ ticians. Employment of mathematicians is expected to decline through 2012, reflecting the decline in the number of jobs with the title mathematician. However, master’s and Ph.D. degree holders with a strong background in mathematics and a related  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  111  discipline, such as engineering or computer science, should have better opportunities. Many of these workers have job titles that reflect their occupation, such as systems analyst, rather than the title mathematician, reflecting their primary educational back­ ground. Advancements in technology usually lead to expanding ap­ plications of mathematics, and more workers with knowledge of mathematics will be required in the future. However, jobs in industry and government often require advanced knowledge of related scientific disciplines in addition to mathematics. The most common fields in which mathematicians study and find work are computer science and software development, physics, engineering, and operations research. More mathematicians also are becoming involved in financial analysis. Mathemati­ cians must compete for jobs, however, with people who have degrees in these other disciplines. The most successful jobseekers will be able to apply mathematical theory to real-world prob­ lems, and possess good communication, teamwork, and com­ puter skills. Private industry jobs require at least a master’s degree in mathematics or in one of the related fields. Bachelor’s degree holders in mathematics usually are not qualified for most jobs, and many seek advanced degrees in mathematics or a related discipline. However, bachelor’s degree holders who meet State certification requirements may become primary or secondary school mathematics teachers. (For additional information, see the statement on teachers—preschool, kindergarten, elemen­ tary, middle, and secondary, elsewhere in the Handbook.) Holders of a master’s degree in mathematics will face very strong competition for jobs in theoretical research. Because the number of Ph.D. degrees awarded in mathematics continues to exceed the number of university positions available, many of these graduates will need to find employment in industry and government. Earnings  Median annual earnings of mathematicians were $76,470 in 2002. The middle 50 percent earned between $56,160 and $91,520. The lowest 10 percent had earnings of less than $38,930, while the highest 10 percent earned over $112,780. According to a 2003 survey by the National Association of Colleges and Employers, starting salary offers averaged $40,512 a year for mathematics graduates with a bachelor’s degree, and $42,348 for those with a master’s degree. Doctoral degree can­ didates averaged $55,485. In early 2003, the average annual salary for mathematicians employed by the Federal Government in supervisory, nonsupervisory, and managerial positions was $80,877; that for mathematical statisticians was $83,472; and for cryptanalysts, the average was $78,662. Related Occupations Other occupations that require extensive knowledge of math­ ematics or, in some cases, a degree in mathematics include actu­ aries; statisticians; computer programmers; computer systems analysts, database administrators, and computer scientists; com­ puter software engineers; and operations research analysts. A strong background in mathematics also facilitates employment as teachers—postsecondary; teachers—preschool, kindergarten, middle, elementary, and secondary; engineers; economists; market and survey researchers; financial analysts and personal financial advisors; and physicists and astronomers.  112  Occupational Outlook Handbook  Sources of Additional Information For more information about careers and training in mathemat­ ics, especially for doctoral-level employment, contact: >- American Mathematical Society, 201 Charles St., Providence, RI02940. Internet: http://www.ams.org  For specific information on careers in applied mathematics, contact: >■ Society for Industrial and Applied Mathematics, 3600 University City Science Center, Philadelphia, PA 19104-2688. Internet: http://www.siam.org  Information on obtaining a mathematician position with the Federal Government is available from the Office of Personnel Management (OPM) through a telephone-based system. Con­ sult your telephone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site: http://www.usajobs.opm.gov.  Operations Research Analysts (0*NET 15-2031.00)  Significant Points •  •  •  Employers generally prefer applicants with at least a master’s degree in operations research or a closely related field, such as computer science, engineering, business, mathematics, information systems, or management science. Employment growth is projected to be slower than average, reflecting slow growth in the number of jobs with the title “operations research analyst.” Individuals with a master’s or Ph.D. degree in management science or operations research should have good job opportunities as operations research analysts or in closely related occupations, such as systems analysts, computer scientists, or management analysts.  Nature of the Work Operations research and management science are terms that are used interchangeably to describe the discipline of applying ad­ vanced analytical techniques to help make better decisions and to solve problems. The procedures of operations research have given effective assistance during wartime missions, such as de­ ploying radar, searching for enemy submarines, and getting sup­ plies where they were most needed. New analytical methods have been developed and numerous peacetime applications have emerged, leading to the use of operations research in many in­ dustries and occupations. The prevalence of operations research in the Nation’s economy reflects the growing complexity of managing large organiza­ tions that require the effective use of money, materials, equip­ ment, and people. Operations research analysts help determine better ways to coordinate these elements by applying analytical methods from mathematics, science, and engineering. They solve problems in different ways and propose alternative solu­ tions to management, which then chooses the course of action that best meets the organization’s goals. In general, operations research analysts may be concerned with diverse issues such as  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  top-level strategy, planning, forecasting, resource allocation, performance measurement, scheduling, the design of produc­ tion facilities and systems, supply chain management, pricing, transportation and distribution, and the analysis of large databases. The duties of the operations research analyst vary according to the structure and management philosophy of the employer or client. Some firms centralize operations research in one depart­ ment; others use operations research in each division. Opera­ tions research analysts also may work closely with senior man­ agers to identify and solve a variety of problems. Some organizations contract operations research services with a con­ sulting firm. Economists, systems analysts, mathematicians, industrial engineers, and others may apply operations research techniques to address problems in their respective fields. (These occupations are discussed elsewhere in the Handbook.) Regardless of the type or structure of the client organization, operations research in its classical role entails a similar set of procedures in carrying out analysis to support management’s quest to improve performance. Managers begin the process by describing the symptoms of a problem to the analyst, who then formally defines the problem. For example, an operations re­ search analyst for an auto manufacturer may be asked to deter­ mine the best inventory level for each of the parts needed on a production line and to ascertain the optimal number of wind­ shields to be kept in inventory. Too many windshields would be wasteful and expensive, while too few could result in an unin­ tended halt in production. Operations research analysts study such problems, breaking them into their components. Analysts then gather information about each of the components from a variety of sources. To determine the most efficient amount of inventory to be kept on hand, for example, operations research analysts might talk with engineers about production levels, discuss purchasing arrange­ ments with buyers, and examine storage-cost data provided by the accounting department. With the relevant information in hand, the analyst is ready to select the most appropriate analytical technique. Analysts can use any of several techniques, including simulation, linear and nonlinear programming, dynamic programming, queuing and other stochastic-process models, Markov decision processes, econometric methods, data envelopment analysis, neural net­ works, expert systems, decision analysis, and the analytic hier­ archy process. Nearly all of these techniques, however, involve the construction of a mathematical model that attempts to describe the system being studied. The use of models enables the analyst to assign values to the different components and clarify the relationships among them. The values can be altered to examine what may happen to the system under different circumstances. In most cases, the computer program developed to solve the model must be modified and run repeatedly to obtain different solutions. A model for airline flight scheduling, for example, might include variables for the cities to be connected, the amount of fuel required to fly the routes, projected levels of passenger demand, varying ticket and fuel prices, pilot scheduling, and maintenance costs. By locating the right combination of values for the variable, the analyst is able to produce the best flight schedule consistent with particular assumptions. Upon concluding the analysis, the operations research ana­ lyst presents management with recommendations based on the results. Additional computer runs to consider different assump­ tions may be needed before the analyst presents the final  Professional and Related Occupations  Operations research analysts study organizational efficiency and suggest ways to improve an organization’s performance. recommendation. Once management reaches a decision, the analyst usually works with others in the organization to ensure the plan’s successful implementation. Working Conditions Operations research analysts generally work regular hours in an office environment. Because they work on projects that are of immediate interest to top management, operations research ana­ lysts often are under pressure to meet deadlines and work more than a 40-hour week. Employment Operations research analysts held about 61,700 jobs in 2002. Major employers include telecommunication companies, aero­ space manufacturers, computer systems design firms, financial institutions, insurance carriers, engineering and management services firms, and Federal and State governments. More than 4 out of 5 operations research analysts in the Federal Government work for the Department of Defense, and many in private indus­ try work directly or indirectly on national defense. About 1 out of 5 analysts works in architectural, engineering, or related ser­ vices; computer systems design and related services; manage­ ment, scientific, and technical consulting services; and scien­ tific research and development firms that offer consulting services in the field of operations research. Training, Other Qualifications, and Advancement Employers generally prefer applicants with at least a master’s degree in operations research or a closely related field, such as computer science, engineering, business, mathematics, infor­ mation systems, or management science, coupled with a bachelor’s degree in computer science or a quantitative disci­ pline, such as economics, mathematics, or statistics. Dual gradu­ ate degrees in operations research and computer science are especially attractive to employers. Operations research ana­ lysts also must be able to think logically and work well with people, and employers prefer workers with good oral and writ­ ten communication skills. In addition to supporting formal education in one manner or another, employers often sponsor training for experienced work­ ers, helping them keep up with new developments in operations  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  113  research techniques and computer science. Some analysts at­ tend advanced university classes on these subjects at their employer’s expense. Because computers are the most important tools for perform­ ing in-depth analysis, training and experience in programming are required. Operations research analysts typically need to be proficient in database collection and management, program­ ming, and the development and use of sophisticated software packages. Beginning analysts usually perform routine work under the supervision of more experienced analysts. As the novices gain knowledge and experience, they are assigned more complex tasks and given greater autonomy to design models and solve problems. Operations research analysts advance by assuming positions as technical specialists or supervisors. The skills ac­ quired by operations research analysts are useful for a variety of higher level management jobs, so experienced analysts may leave the field to assume nontechnical managerial or adminis­ trative positions. Operations research analysts with significant experience may become consultants, and some may even open their own consulting practice. Job Outlook Employment of operations research analysts is expected to grow more slowly than the average for all occupations through 2012, reflecting slow growth in the number of jobs with the title “op­ erations research analyst.” Job opportunities in operations re­ search should be good, however, because organizations through­ out the economy will strive to improve their productivity, effectiveness, and competitiveness and because of the exten­ sive availability of data, computers, and software. Many jobs in operations research have other titles, such as “operations ana­ lyst,” “management analyst,” “systems analyst,” and “policy analyst.” Individuals who hold a master’s or Ph.D. degree in operations research, management science, or a closely related field should find good job opportunities because the number of openings generated by employment growth and the need to replace those leaving the occupation are expected to exceed the number of persons graduating with those credentials. Organizations face pressure today from growing domestic and international competition and must work to make their op­ erations as effective as possible. As a result, businesses will increasingly rely on operations research analysts to optimize profits by improving productivity and reducing costs. As new technology is introduced into the marketplace, operations re­ search analysts will be needed to determine how to utilize the technology in the best way. Opportunities for operations research analysts exist in al­ most every industry because of the diversity of applications for their work. However, opportunities should be especially good in highly competitive industries, such as manufacturing, trans­ portation, telecommunications, and finance. As businesses and government agencies continue to contract out jobs to cut costs, many operations research analysts also will find opportunities as consultants, either working for a consulting firm or setting up their own practice. Opportunities in the military will exist as well, but will depend on the size of future military budgets. As the military develops new weapons systems and strategies, mili­ tary leaders will rely on operations research analysts to test and evaluate their accuracy and effectiveness. (See the Handbook statement on job opportunities in the Armed Forces.)  114  Occupational Outlook Handbook  Earnings Median annual earnings of operations research analysts were $56,920 in 2002. The middle 50 percent earned between $43,220 and $74,460. The lowest 10 percent had earnings of less than $34,140, while the highest 10 percent earned more than $92,430. The average annual salary for operations research analysts in the Federal Government in nonsupervisory, supervisory, and managerial positions was $83,740 in 2003. Related Occupations Operations research analysts apply advanced analytical meth­ ods to large, complicated problems. Workers in other occupa­ tions that stress advanced analysis include computer systems analysts, database administrators, and computer scientists; com­ puter programmers; engineers; mathematicians; statisticians; economists; and market and survey researchers. Because its goal is improved organizational effectiveness, operations re­ search also is closely allied to managerial occupations, such as computer and information systems managers, and management analysts. Sources of Additional Information Information on career opportunities for operations research ana­ lysts is available from > Institute for Operations Research and Management Science, 901 Elkridge Landing Rd., Suite 400, Linthicum, MD 21090. Internet: http://www.informs.org  For information on operations research careers in the Armed Forces and the U.S. Department of Defense, contact >■ Military Operations Research Society, 1703 N. Beauregard St., Suite 450, Alexandria, VA 22311. Internet: http://www.mors.org  Information on obtaining an operations research analyst po­ sition with the Federal Government is available from the Office of Personnel Management (OPM) through a telephone-based system. Consult your telephone directory under U.S. Govern­ ment for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site: http://www.usajobs.opm.gov.  Statisticians (0*NET 15-2041.00)  data; and interpretation of the results. Statisticians may apply their knowledge of statistical methods to a variety of subject areas, such as biology, economics, engineering, medicine, pub­ lic health, psychology, marketing, education, and sports. Many economic, social, political, and military decisions cannot be made without the use of statistical techniques, such as the de­ sign of experiments to gain Federal approval of a newly manu­ factured drug. One technique that is especially useful to statisticians is sam­ pling—obtaining information about a population of people or group of things by surveying a small portion of the total. For example, to determine the size of the audience for particular programs, television-rating services survey only a few thousand families, rather than all viewers. Statisticians decide where and how to gather the data, determine the type and size of the sample group, and develop the survey questionnaire or reporting form. They also prepare instructions for workers who will collect and tabulate the data. Finally, statisticians analyze, interpret, and summarize the data using computer software. In business and industry, statisticians play an important role in quality control and in product development and improve­ ment. In an automobile company, for example, statisticians might design experiments to determine the failure time of en­ gines exposed to extreme weather conditions by running indi­ vidual engines until failure and breakdown. Working for a phar­ maceutical company, statisticians might develop and evaluate the results of clinical trials to determine the safety and effective­ ness of new medications. And, at a computer software firm, statisticians might help construct new statistical software pack­ ages to analyze data more accurately and efficiently. In addi­ tion to product development and testing, some statisticians also are involved in deciding what products to manufacture, how much to charge for them, and to whom the products should be marketed. Statisticians also may manage assets and liabilities, determining the risks and returns of certain investments. Statisticians also are employed by nearly every government agency. Some government statisticians develop surveys that measure population growth, consumer prices, or unemployment. Other statisticians work for scientific, environmental, and agri­ cultural agencies, and may help to determine the amount of pesticides in drinking water, the number of endangered species living in a particular area, or the number of people afflicted with a particular disease. Statisticians also are employed in national  Significant Points • •  •  Many individuals with degrees in statistics enter jobs that do not have the title statistician. A master’s degree in statistics or mathematics is the minimum educational requirement for most jobs as a statistician. Although slower than average growth is expected in employment of statisticians, job opportunities should remain favorable for individuals with degrees in statistics.  Nature of the Work Statistics is the scientific application of mathematical principles to the collection, analysis, and presentation of numerical data. Statisticians contribute to scientific inquiry by applying their mathematical and statistical knowledge to the design of sur­ veys and experiments; collection, processing, and analysis of  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Statisticians work in many different fields, organizing surveys, collecting data, and analyzing the results.  Professional and Related Occupations defense agencies, determining the accuracy of new weapons and the likely effectiveness of defense strategies. Because statistical specialists are employed in so many work areas, specialists who use statistics often have different profes­ sional designations. For example, a person using statistical methods on economic data may have the title econometrician, while statisticians in public health and medicine may hold titles such as biostatistician, biometrician, or epidemiologist. Working Conditions Statisticians usually work regular hours in comfortable offices. Some statisticians travel to provide advice on research projects, supervise and set up surveys, or gather statistical data. Some may have duties that vary widely, such as designing experi­ ments or performing fieldwork in various communities. Statis­ ticians who work in academia generally have a mix of teaching and research responsibilities. Employment Statisticians held about 20,000 jobs in 2002. Eighteen percent of these jobs were in the Federal Government, where statisti­ cians were concentrated in the Departments of Commerce, Agri­ culture, and Health and Human Services. Another 16 percent were found in State and local governments, including State col­ leges and universities. Most of the remaining jobs were in private industry, especially in scientific research and develop­ ment services; office administrative services; insurance carri­ ers; management, scientific, and technical consulting services; and business, professional, labor, and political organizations; and pharmaceutical and medicine manufacturing. In addition, many professionals with a background in statistics were among the 20,000 full-time mathematics faculty in colleges and uni­ versities in 2002, according to the American Mathematical So­ ciety. (See the statement on teachers—postsecondary, elsewhere in the Handbook.) Training, Other Qualifications, and Advancement Although more employment opportunities are becoming avail­ able to individuals with a bachelor’s degree in statistics, a master’s degree in statistics or mathematics is usually the mini­ mum educational requirement for most statistician jobs. Re­ search and academic positions in institutions of higher educa­ tion, for example, require at least a master’s degree, and usually a Ph.D., in statistics. Beginning positions in industrial research often require a master’s degree combined with several years of experience. The training required for employment as an entry-level stat­ istician in the Federal Government, however, is a bachelor’s degree, including at least 15 semester hours of statistics or a combination of 15 hours of mathematics and statistics, if at least 6 semester hours are in statistics. Qualifying as a mathematical statistician in the Federal Government requires 24 semester hours of mathematics and statistics, with a minimum of 6 semester hours in statistics and 12 semester hours in an area of advanced mathematics, such as calculus, differential equations, or vector analysis. Many other schools also offered degrees in mathematics, op­ erations research, and other fields that included a sufficient num­ ber of courses in statistics to qualify graduates for some begin­ ning positions in the Federal Government. Required subjects for statistics majors include differential and integral calculus, statistical methods, mathematical modeling, and probability theory. Additional courses that undergraduates should take in­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  115  clude linear algebra, design and analysis of experiments, ap­ plied multivariate analysis, and mathematical statistics. In 2002, approximately 140 universities offered a master’s degree program in statistics or biostatistics, and about 90 of­ fered a doctoral degree program. Many other schools also of­ fered graduate-level courses in applied statistics for students majoring in biology, business, economics, education, engineer­ ing, psychology, and other fields. Acceptance into graduate statistics programs does not require an undergraduate degree in statistics, although good training in mathematics is essential. Because computers are used extensively for statistical appli­ cations, a strong background in computer science is highly rec­ ommended. For positions involving quality and productivity improvement, training in engineering or physical science is use­ ful. A background in biological, chemical, or health science is important for positions involving the preparation and testing of pharmaceutical or agricultural products. Courses in economics and business administration are helpful for many jobs in market research, business analysis, and forecasting. Good communications skills are important for prospective statisticians in industry, who often need to explain technical matters to persons without statistical expertise. An understand­ ing of business and the economy also is valuable for those who plan to work in private industry. Beginning statisticians generally are supervised by an expe­ rienced statistician. With experience, they may advance to po­ sitions with more technical responsibility and, in some cases, supervisory duties. However, opportunities for promotion are greater for persons with advanced degrees. Master’s and Ph.D. degree holders usually enjoy independence in their work and become qualified to engage in research, develop statistical meth­ ods, or, after a number of years of experience in a particular area, become statistical consultants.  Job Outlook Slower than average growth is expected in employment of stat­ isticians over the 2002-12 period. However, job opportunities should remain favorable for individuals with degrees in statis­ tics, although many of these positions will not carry the explicit job title statistician. This is especially true of jobs that involve the analysis and interpretation of data from other disciplines such as economics, biological science, psychology, or computer software engineering. Despite the limited number of jobs re­ sulting from growth, a number of openings will become avail­ able as statisticians transfer to other occupations or retire or leave the work force for other reasons. Among graduates with a master’s degree in statistics, those with a strong background in an allied field, such as finance, biology, engineering, or computer science, should have the best prospects of finding jobs related to their field of study. Federal agencies will hire statisticians in many fields, including de­ mography, agriculture, consumer and producer surveys, Social Security, healthcare, and environmental quality. Competition for entry-level positions in the Federal Government is expected to be strong for persons just meeting the minimum qualification standards for statisticians, because the Federal Government is one of the few employers that considers a bachelor’s degree to be an adequate entry-level qualification. Those who meet State certification requirements may become high school statistics teachers. (For additional information, see the statement on teach­ ers—preschool, kindergarten, elementary, middle, and second­ ary elsewhere in the Handbook.)  116  Occupational Outlook Handbook  Manufacturing firms will hire statisticians with master’s and doctoral degrees for quality control of various products, includ­ ing pharmaceuticals, motor vehicles, aircraft, chemicals, and food. For example, pharmaceutical firms employ statisticians to assess the safety and effectiveness of new drugs. To address global product competition, motor vehicle manufacturers will need statisticians to improve the quality of automobiles, trucks, and their components by developing and testing new designs. Statisticians with knowledge of engineering and the physical sciences will find jobs in research and development, working with teams of scientists and engineers to help improve design and production processes to ensure consistent quality of newly developed products. Many statisticians also will find opportu­ nities developing statistical software for computer software manufacturing firms. Business firms will rely heavily on workers with a background in statistics to forecast sales, analyze business conditions, and help to solve management problems in order to maximize prof­ its. In addition, consulting firms increasingly will offer sophis­ ticated statistical services to other businesses. Because of the widespread use of computers in this field, statisticians in all industries should have good computer programming skills and knowledge of statistical software. Earnings Median annual earnings of statisticians were $57,080 in 2002. The middle 50 percent earned between $40,510 and $76,500. The lowest 10 percent had earnings of less than $30,380, while the highest 10 percent earned more than $91,680. The average annual salary for statisticians in the Federal Gov­ ernment in nonsupervisory, supervisory, and managerial posi­  tions was $75,979 in 2003, while mathematical statisticians averaged $83,472. According to a 2003 survey by the National Association of Colleges and Employers, starting salary offers for mathematics/statistics graduates with a bachelor’s degree averaged $40,512 a year. Related Occupations People in a wide range of occupations work with statistics. Among these are actuaries; mathematicians; operations research analysts; computer systems analysts, database administrators, and computer scientists; computer programmers; computer soft­ ware engineers; engineers; economists; market and survey re­ searchers; financial analysts and personal financial advisors; and life, physical, and social scientists. Sources of Additional Information For information about career opportunities in statistics, contact: >- American Statistical Association, 1429 Duke St., Alexandria, VA 22314. Internet: http://www.amstat.org  For more information on doctoral-level careers and training in mathematics, a field closely related to statistics, contact: >• American Mathematical Society, 201 Charles St., Providence, RI02940. Internet: http://www.ams.org  Information on obtaining a statistician position with the Fed­ eral Government is available from the Office of Personnel Man­ agement (OPM) through a telephone-based system. Consult your telephone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Infor­ mation also is available from the OPM Internet site: http://www.usajobs.opm.gov.  Architects, Surveyors, and Cartographers Architects, Except Landscape and Naval _______________ (0*NET 17-1011.00)  Significant Points •  •  •  More than 1 in 5 architects was self-employed—about three times the proportion for all professional and related occupations. Licensing requirements include a professional degree in architecture, a period of practical training, and passing all divisions of the Architect Registration Examination. Architecture graduates may face competition, especially for jobs in the most prestigious firms; opportunities will be best for those with experience working for a firm while still in school and for those with knowledge of computer-aided design and drafting technology.  Nature of the Work People need places in which to live, work, play, learn, worship, meet, govern, shop, and eat. These places may be private or public; indoors or outdoors; or rooms, buildings, or complexes;  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and together, they make up neighborhoods, towns, suburbs, and cities. Architects—licensed professionals trained in the art and science of building design—transform these needs into con­ cepts and then develop the concepts into images and plans of buildings that can be constructed by others. Architects design the overall aesthetic and look of buildings and other structures, but the design of a building involves far more than its appearance. Buildings also must be functional, safe, and economical and must suit the needs of the people who use them. Architects consider all these factors when they design buildings and other structures. Architects provide professional services to individuals and organizations planning a construction project. They may be involved in all phases of development, from the initial discus­ sion with the client through the entire construction process. Their duties require specific skills—designing, engineering, managing, supervising, and communicating with clients and builders. Architects spend a great deal of time explaining their ideas to clients, construction contractors, and others. Success­ ful architects must be able to communicate their unique vision persuasively. The architect and client discuss the objectives, requirements, and budget of a project. In some cases, architects provide vari­ ous predesign services—conducting feasibility and environmen­ tal impact studies, selecting a site, or specifying the require­ ments the design must meet. For example, they may determine space requirements by researching the numbers and types of  Professional and Related Occupations  V-  \/Ca  i  .  -  Architects update plans after receiving feedback from other professionals. potential users of a building. The architect then prepares draw­ ings and a report presenting ideas for the client to review. After discussing and agreeing on the initial proposal, archi­ tects develop final construction plans that show the building’s appearance and details for its construction. Accompanying these plans are drawings of the structural system; air-conditioning, heating, and ventilating systems; electrical systems; communi­ cations systems; plumbing; and, possibly, site and landscape plans. The plans also specify the building materials and, in some cases, the interior furnishings. In developing designs, architects follow building codes, zoning laws, fire regulations, and other ordinances, such as those requiring easy access by disabled persons. Throughout the planning stage, they make necessary changes. Although they have traditionally used pen­ cil and paper to produce design and construction drawings, ar­ chitects are increasingly turning to computer-aided design and drafting (CADD) technology for these important tasks. Con­ tinual revision of plans on the basis of client needs and budget constraints is often necessary. Architects may also assist clients in obtaining construction bids, selecting contractors, and negotiating construction con­ tracts. As construction proceeds, they may visit building sites to make sure that contractors follow the design, adhere to the schedule, use the specified materials, and meet work quality standards. The job is not complete until all construction is finished, required tests are conducted, and construction costs  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  117  are paid. Sometimes, architects also provide postconstruction services, such as facilities management. They advise on en­ ergy efficiency measures, evaluate how well the building design adapts to the needs of occupants, and make necessary improvements. Architects design a wide variety of buildings, such as office and apartment buildings, schools, churches, factories, hospi­ tals, houses, and airport terminals. They also design complexes such as urban centers, college campuses, industrial parks, and entire communities. In addition, they may advise on the selec­ tion of building sites, prepare cost analysis and land-use stud­ ies, and do long-range planning for land development. Architects sometimes specialize in one phase of work. Some specialize in the design of one type of building—for example, hospitals, schools, or housing. Others focus on planning and predesign services or construction management and do mini­ mal design work. They often work with engineers, urban plan­ ners, interior designers, landscape architects, and other profes­ sionals. In fact, architects spend a great deal of their time coordinating information from, and the work of, others engaged in the same project. Many architects—particularly at larger firms—use the Internet and e-mail to update designs and com­ municate changes efficiently. Architects also use the Internet to research product specifications and government regulations. During the required training period leading up to licensing as architects, entry-level workers are called interns. This train­ ing period, which generally lasts 3 years, gives them practical work experience in preparation for the Architect Registration Examination (ARE). Typical duties may include preparing con­ struction drawings on CADD, building models, or assisting in the design of one part of a project. Working Conditions Architects usually work in a comfortable environment. Most of their time is spent in offices consulting with clients, developing reports and drawings, and working with other architects and engineers. However, they often visit construction sites to review the progress of projects. Architects may occasionally be under stress, working nights and weekends to meet deadlines. In 2002, more than half of all full-time architects worked more than 40 hours a week. Employment Architects held about 113,000 jobs in 2002. Almost 2 out of 3 jobs were in architectural, engineering, and related services— mostly in architectural firms with fewer than five workers. A small number worked for residential and nonresidential build­ ing construction firms and for government agencies respon­ sible for housing, planning, or community development, such as the U.S. Departments of Defense and Interior, and the Gen­ eral Services Administration. About 1 in 5 architects was selfemployed. Training, Other Qualifications, and Advancement All States and the District of Columbia require individuals to be licensed (registered) before they may call themselves architects or contract to provide architectural services. Nevertheless, many architecture school graduates work in the field while they are in the process of becoming licensed. However, a licensed architect is required to take legal responsibility for all work. Licensing requirements include a professional degree in architecture, a period of practical training or internship, and passage of all divisions of the ARE.  118  Occupational Outlook Handbook  In most States, the professional degree in architecture must be from one of the 113 schools of architecture that have degree programs accredited by the National Architectural Accrediting Board (NAAB). However, State architectural registration boards set their own standards, so graduation from a non-NAAB-accredited program may meet the educational requirement for li­ censing in a few States. Three types of professional degrees in architecture are available through colleges and universities. The majority of all architectural degrees are from 5-year Bachelor of Architecture programs, intended for students entering univer­ sity-level studies from high school or with no previous architec­ tural training. In addition, a number of schools offer a 2-year Master of Architecture program for students with a preprofessional undergraduate degree in architecture or a re­ lated area, or a 3- or 4-year Master of Architecture program for students with a degree in another discipline. The choice of degree depends upon each individual’s prefer­ ence and educational background. Prospective architecture stu­ dents should consider the available options before committing to a program. For example, although the 5-year Bachelor of Architecture program offers the fastest route to the professional degree, courses are specialized, and if the student does not com­ plete the program, transferring to program offered by another discipline may be difficult. A typical program includes courses in architectural history and theory, building design, structures, technology, construction methods, professional practice, math, physical sciences, and liberal arts. Central to most architectural programs is the design studio, where students put into practice the skills and concepts learned in the classroom. During the final semester of many programs, students devote their studio time to creating an architectural project from beginning to end, culminating in a three-dimensional model of their design. Many schools of architecture also offer postprofessional de­ grees for those who already have a bachelor’s or master’s degree in architecture or other areas. Although graduate education beyond the professional degree is not required for practicing architects, it may be for research, teaching, and certain special­ ties. High school students interested in a career in architecture should take courses in English, history, art, social studies, math­ ematics, physics, and computer science. Students should also visit the design studio of a school of architecture or tour the offices of a local firm. In addition, many schools of architecture offer summer programs for high school students. Architects must be able to communicate their ideas visually to their clients. Artistic and drawing ability is helpful, but not essential, to such communication. More important are a visual orientation and the ability to conceptualize and understand spa­ tial relationships. Good communication skills, the ability to work independently or as part of a team, and creativity are im­ portant qualities for anyone interested in becoming an archi­ tect. Computer literacy also is required for writing specifica­ tions, for two- and three-dimensional drafting, and for financial management. Knowledge of CADD is helpful and will become essential as architectural firms continue to adopt that technol­ ogy. Recently, the profession recognized National CAD Stan­ dards (NCS); architecture students who master NCS may have an advantage in the job market. All State architectural registration boards require a training period before candidates may sit for the ARE and become li­ censed. Most States have adopted the training standards estab­ lished by the Intern Development Program, a branch of the Ameri­ can Institute of Architects and the National Council of  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Architectural Registration Boards (NCARB). These standards stipulate broad and diversified training under the supervision of a licensed architect over a 3-year period. New graduates usually begin as interns in architectural firms, where they assist in preparing architectural documents or drawings. Some States allow some of the training to occur in the offices of related professionals, such as engineers or general contractors. Archi­ tecture students who complete internships in architectural firms while still in school can count some of that time toward the required 3-year training period. Interns may research building codes and materials or write specifications for building materials, installation criteria, the quality of finishes, and other, related details. After completing the on-the-job training period, interns are eligible to sit for the ARE. The examination tests candidates’ knowledge, skills, and ability to provide the various services required in the design and construction of buildings. Nine critical areas are covered. Candidates who pass the ARE and meet all standards estab­ lished by their State board are licensed to practice in that State. Several States require continuing education to maintain a license, and many more States are expected to adopt mandatory continuing education. Requirements vary by State, but usually involve the completion of a certain number of credits every year or two through seminars, workshops, formal university classes, conferences, self-study courses, or other sources. A growing number of architects voluntarily seek certifica­ tion by the NCARB, which can facilitate an individual’s be­ coming licensed to practice in additional States. Certification is awarded after independent verification of the candidate’s edu­ cational transcripts, employment record, and professional refer­ ences. Certification is the primary requirement for reciprocity of licensing among State Boards that are NCARB members. After becoming licensed and gaining experience, architects take on increasingly responsible duties, eventually managing entire projects. In large firms, architects may advance to super­ visory or managerial positions. Some architects become part­ ners in established firms; others set up their own practices. Gradu­ ates with degrees in architecture also enter related fields, such as graphic, interior, or industrial design; urban planning; real es­ tate development; civil engineering; and construction manage­ ment. Job Outlook Prospective architects may face competition for entry-level po­ sitions, especially if the number of architectural degrees awarded remains at current levels or increases. Employment of architects is projected to grow about as fast as the average for all occupa­ tions through 2012, and additional job openings will stem from the need to replace architects who retire, transfer to new occupa­ tions, or leave the labor force permanently for other reasons. However, many individuals are attracted to this occupation, and the number of applicants often exceeds the number of available jobs, especially in the most prestigious firms. Prospective ar­ chitects who gain career-related experience in an architectural firm while they are still in school and who know CADD technol­ ogy—especially that which conforms to the new national stan­ dards—will have a distinct advantage in obtaining an intern position after graduation. Employment of architects is strongly tied to the level of local construction, particularly nonresidential structures such as office buildings, shopping centers, schools, and healthcare facilities. Employment in nonresidential construction is ex­ pected to grow because the replacement and renovation of many  Professional and Related Occupations industrial plants and buildings has been delayed for years and a large number of structures will have to be replaced or remod­ eled, particularly in urban areas where space for new buildings is becoming limited. On the other hand, technology enhance­ ments will dampen demand for new commercial construction as nontraditional work and retail environments, such as telecon­ ferencing, home offices, telecommuting, and electronic shop­ ping, proliferate. Demographic trends and changes in healthcare delivery will influence the demand for certain institutional structures and should also provide more jobs for architects in the future. A growing and aging population will drive demand for the con­ struction of adult daycare, assisted-living, and other outpatient facilities, all of which are preferable, less costly alternatives to hospitals and nursing homes. Similarly, the construction of schools will increase to accommodate growth in the schoolaged population. Additions to existing schools (especially col­ leges and universities), as well as overall modernization, will continue to add to demand for architects through 2012. Demand for residential construction is also expected to con­ tinue to grow. As the baby boomers reach their peak earning years and can afford to spend more on housing, demand for larger homes with more amenities, as well as for second homes, will continue to rise. Some older, more affluent, members of the baby-boom generation will want townhouses and condomini­ ums in conveniently located suburban and urban settings. At the same time, as the “echo boomers” (the children of the baby boomers) start to augment the younger age groups, the demand for starter homes and rental apartments also should increase. Growth in demand for new-home construction will be tem­ pered by consumers’ preference to perform home improvements and renovations—especially in attractive, established neigh­ borhoods—rather than construct new homes. Many starter homes will be remodeled to appeal to more affluent, space- and amenity-hungry buyers. Also, as buyers trade up, some may prefer to remodel existing homes, rather than construct new homes. Because construction—particularly office and retail construc­ tion—is sensitive to cyclical changes in the economy, archi­ tects will face especially strong competition for jobs or clients during recessions, and layoffs may ensue. Those involved in the design of institutional buildings, such as schools, hospitals, nursing homes, and correctional facilities, will be less affected by fluctuations in the economy. Even in times of overall good job opportunities, however, there may be areas of the country with poor opportunities. Ar­ chitects who are licensed to practice in one State must meet the licensing requirements of other States before practicing else­ where. Obtaining licensure in other States, after initially re­ ceiving licensure in one State, is known as “reciprocity” and is much easier if an architect has received certification from the NCARB. Earnings Median annual earnings of wage and salary architects were $56,620 in 2002. The middle 50 percent earned between $44,030 and $74,460. The lowest 10 percent earned less than $36,280, and the highest 10 percent earned more than $92,350. Earnings of partners in established architectural firms may fluctuate because of changing business conditions. Some ar­ chitects may have difficulty establishing their own practices and may go through a period when their expenses are greater than their income, requiring substantial financial resources.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  119  Related Occupations Architects design buildings and related structures. Construc­ tion managers, like architects, also plan and coordinate activi­ ties concerned with the construction and maintenance of build­ ings and facilities. Others who engage in similar work are landscape architects, civil engineers, urban and regional plan­ ners, and designers, including interior designers, commercial and industrial designers, and graphic designers. Sources of Additional Information Information about education and careers in architecture can be obtained from: ► The American Institute of Architects, 1735 New York Ave. NW., Wash­ ington, DC 20006. Internet: http://www.aia.org >■ Intern Development Program, National Council of Architectural Regis­ tration Boards, Suite 1100K, 1801 K Street NW., Washington, D.C. 20006­ 1310. Internet: http://www.ncarb.org  Landscape Architects (0*NET 17-1012.00)  Significant Points • •  •  Almost 23 percent are self-employed—more than 3 times the proportion for all professionals. A bachelor’s degree in landscape architecture is the minimum requirement for entry-level jobs; many employers prefer to hire landscape architects who also have completed at least one internship. A growing demand for incorporating natural elements into man-made environments, along with the need to meet a wide array of environmental restrictions, will increase the demand for landscape architects.  Nature of the Work Everyone enjoys attractively designed residential areas, public parks and playgrounds, college campuses, shopping centers, golf courses, parkways, and industrial parks. Landscape archi­ tects design these areas so that they are not only functional, but also beautiful, and compatible with the natural environment. They plan the location of buildings, roads, and walkways, and the arrangement of flowers, shrubs, and trees. Landscape architects work for many types of organizations— from real estate development firms starting new projects to mu­ nicipalities constructing airports or parks—and they often are involved with the development of a site from its conception. Working with architects, surveyors, and engineers, landscape architects help determine the best arrangement of roads and buildings. They also collaborate with environmental scientists, foresters, and other professionals to find the best way to con­ serve or restore natural resources. Once these decisions are made, landscape architects create detailed plans indicating new to­ pography, vegetation, walkways, and other landscaping details, such as fountains and decorative features. In planning a site, landscape architects first consider the na­ ture and purpose of the project and the funds available. They analyze the natural elements of the site, such as the climate, soil, slope of the land, drainage, and vegetation; observe where sun­ light falls on the site at different times of the day and examine the site from various angles; and assess the effect of existing buildings, roads, walkways, and utilities on the project.  120  Occupational Outlook Handbook  After studying and analyzing the site, landscape architects prepare a preliminary design. To account for the needs of the client as well as the conditions at the site, they frequently make changes before a final design is approved. They also take into account any local, State, or Federal regulations, such as those protecting wetlands or historic resources. In preparing designs, computer-aided design (CAD) has become an essential tool for most landscape architects. Many landscape architects also use video simulation to help clients envision the proposed ideas and plans. For larger scale site planning, landscape architects also use geographic information systems technology, a com­ puter mapping system. Throughout all phases of the planning and design, landscape architects consult with other professionals involved in the project. Once the design is complete, they prepare a proposal for the client. They produce detailed plans of the site, including written reports, sketches, models, photographs, land-use stud­ ies, and cost estimates, and submit them for approval by the client and by regulatory agencies. When the plans are approved, landscape architects prepare working drawings showing all ex­ isting and proposed features. They also outline in detail the methods of construction and draw up a list of necessary materi­ als. Although many landscape architects monitor the installa­ tion of their design, the developer’s project general contractor or a landscape contractor usually directs the actual construction and installation of plantings. Some landscape architects work on a variety of projects. Others specialize in a particular area, such as residential devel­ opment, street and highway beautification, waterfront improve­ ment projects, parks and playgrounds, or shopping centers. Still others work in regional planning and resource management; feasibility, environmental impact, and cost studies; or site con­ struction. Increasingly, landscape architects are becoming in­ volved with projects in environmental remediation, such as pres­ ervation and restoration of wetlands. Historic landscape preservation and restoration is another important area where landscape architects are increasingly playing an important role. Most landscape architects do at least some residential work, but relatively few limit their practice to individual homeowners. Residential landscape design projects usually are too small to provide suitable income compared with larger commercial or multiunit residential projects. Some nurseries offer residential landscape design services, but these services often are performed <" ' fjj!  «» V||  i___  -----P  ■-  . v/] •  Landscape architects often visit the worksite to check that plans are implemented properly.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  by lesser qualified landscape designers, or others with training and experience in related areas. Landscape architects who work for government agencies do site and landscape design for government buildings, parks, and other public lands, as well as park and recreation planning in national parks and forests. In addition, they prepare environ­ mental impact statements and studies on environmental issues such as public land-use planning. Some restore degraded land, such as mines or landfills. Other architects use their skills in traffic-calming, the “art” of slowing traffic down through use of traffic design, enhancement of the physical environment, and greater attention to aesthetics. Working Conditions Landscape architects spend most of their time in offices creat­ ing plans and designs, preparing models and cost estimates, doing research, or attending meetings with clients and other professionals involved in a design or planning project. The remainder of their time is spent at the site. During the design and planning stage, landscape architects visit and analyze the site to verify that the design can be incorporated into the land­ scape. After the plans and specifications are completed, they may spend additional time at the site observing or supervising the construction. Those who work in large national or regional firms may spend considerably more time out of the office travel­ ing to sites away from the local area. Salaried employees in both government and landscape ar­ chitectural firms usually work regular hours; however, they may work overtime to meet a project deadline. Hours of self-em­ ployed landscape architects vary depending on the demands of the projects on which they are working. Employment Landscape architects held about 23,000 jobs in 2002. About 4 out of 10 workers were employed in firms that provide archi­ tectural, engineering, and related services. The Federal Govern­ ment also employs these workers, primarily in the U.S. Depart­ ments of Agriculture, Defense, and Interior. Almost 1 of every 4 landscape architects was self-employed. Employment of landscape architects is concentrated in ur­ ban and suburban areas throughout the country; some land­ scape architects work in rural areas, particularly those employed by the Federal Government to plan and design parks and recre­ ation areas. Training, Other Qualifications, and Advancement A bachelor’s or master’s degree in landscape architecture usu­ ally is necessary for entry into the profession. The bachelor’s degree in landscape architecture takes 4 or 5 years to complete. There also are two types of accredited master’s degree programs. The most common type of master’s degree is a 3-year first pro­ fessional degree program designed for students with an under­ graduate degree in another discipline. The second type is of master’s degree is a 2-year second professional degree program for students who have a bachelor’s degree in landscape architec­ ture and who wish to teach or specialize in some aspect of land­ scape architecture, such as regional planning or golf course design. In 2002, 58 colleges and universities offered 75 undergradu­ ate and graduate programs in landscape architecture that were accredited by the Landscape Architecture Accreditation Board of the American Society of Landscape Architects. College courses required in these programs usually include technical  Professional and Related Occupations subjects such as surveying, landscape design and construction, landscape ecology, site design, and urban and regional plan­ ning. Other courses include history of landscape architecture, plant and soil science, geology, professional practice, and gen­ eral management. Many landscape architecture programs also are adding courses that address environmental issues, a growing concern of landscape architects. The design studio is another important aspect of many landscape architecture curriculums. Whenever possible, students are assigned real projects, provid­ ing them with valuable hands-on experience. While working on these projects, students become more proficient in the use of computer-aided design, geographic information systems, and video simulation. In 2002, 46 States required landscape architects to be li­ censed or registered. Licensing is based on the Landscape Ar­ chitect Registration Examination (L.A.R.E.), sponsored by the Council of Landscape Architectural Registration Boards and administered over a 3-day period. Admission to the exam usu­ ally requires a degree from an accredited school plus 1 to 4 years of work experience under the supervision of a registered land­ scape architect, although standards vary from State to State. Currently, 15 States require the passage of a State examination in addition to the L.A.R.E. to satisfy registration requirements. State examinations, which usually are 1 hour in length and com­ pleted at the end of the L.A.R.E., focus on laws, environmental regulations, plants, soils, climate, and any other characteristics unique to the State. Because State requirements for licensure are not uniform, landscape architects may not find it easy to transfer their regis­ tration from one State to another. However, those who meet the national standards of graduating from an accredited program, serving 3 years of internship under the supervision of a regis­ tered landscape architect, and passing the L.A.R.E. can satisfy requirements in most States. Through this means, a landscape architect can obtain certification from the Council of Land­ scape Architectural Registration Boards, and so gain reciproc­ ity (the right to work) in other States. In the Federal Government, candidates for entry positions should have a bachelor’s or master’s degree in landscape archi­ tecture. The Federal Government does not require its landscape architects to be licensed. Persons planning a career in landscape architecture should appreciate nature, enjoy working with their hands, and possess strong analytical skills. Creative vision and artistic talent also are desirable qualities. Good oral communication skills are essential; landscape architects must be able to convey their ideas to other professionals and clients and to make presentations before large groups. Strong writing skills also are valuable, as is knowledge of computer applications of all kinds, including word processing, desktop publishing, and spreadsheets. Landscape architects use these tools to develop presentations, proposals, reports, and land impact studies for clients, colleagues, and su­ periors. The ability to draft and design using CAD software is essential. Many employers recommend that prospective land­ scape architects complete at least one summer internship with a landscape architecture firm in order to gain an understanding of the day-to-day operations of a small business, including how to win clients, generate fees, and work within a budget. In States where licensure is required, new hires may be called “apprentices” or “intern landscape architects” until they be­ come licensed. Their duties vary depending on the type and size of the employing firm. They may do project research or   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  121  prepare working drawings, construction documents, or base maps of the area to be landscaped. Some are allowed to participate in the actual design of a project. However, interns must perform all work under the supervision of a licensed landscape architect. Additionally, all drawings and specifications must be signed and sealed by the licensed landscape architect, who takes legal responsibility for the work. After gaining experience and be­ coming licensed, landscape architects usually can carry a de­ sign through all stages of development. After several years, they may become project managers, taking on the responsibil­ ity for meeting schedules and budgets, in addition to oversee­ ing the project design. Later, they may become associates or partners of a firm, with a proprietary interest in the business. Many landscape architects are self-employed because start­ up costs, after an initial investment in CAD software, are rela­ tively low. Self-discipline, business acumen, and good market­ ing skills are important qualities for those who choose to open their own business. Even with these qualities, however, some may struggle while building a client base. Those with landscape architecture training also qualify for jobs closely related to landscape architecture, and may, after gaining some experience, become construction supervisors, land or environmental planners, or landscape consultants. Job Outlook Employment of landscape architects is expected to increase faster than the average for all occupations through the year 2012. Their expertise will be highly sought after in the planning and development of new residential, commercial, and other types of construction, to meet the needs of a growing population. With land costs rising and the public demanding more beautiful spaces, the importance of good site planning and landscape design grows. Also, new construction is increasingly contingent upon compliance with environmental regulations, land use zoning, and water restrictions, spurring demand for landscape architects to help plan sites and integrate man-made structures with the natural environment in the least disruptive way. Landscape architects also will be increasingly involved in preserving and restoring wetlands and other environmentally sensitive sites. However, opportunities will vary from year to year, and by geo­ graphic region, depending on local economic conditions. Dur­ ing a recession, when real estate sales and construction slow down, landscape architects may face layoffs and greater compe­ tition for jobs. The need to replace landscape architects who retire or leave the labor force will produce some additional job openings. Continuation of the Transportation Equity Act for the TwentyFirst Century is expected to spur employment for landscape architects, particularly within State and local governments. This Act, known as TEA-21, provides funds for surface transporta­ tion and transit programs, such as interstate highway construc­ tion and maintenance and environment-friendly pedestrian and bicycle trails. Budget tightening in the Federal Government might restrict hiring in the U.S. Forest Service and the National Park Service, agencies that traditionally employ the most land­ scape architects in the Federal Government. Instead, such agen­ cies may increasingly contract out for landscape architecture services, providing additional employment opportunities in private landscape architecture firms. In addition to the work related to new development and con­ struction, landscape architects are expected to be involved in  122  Occupational Outlook Handbook  historic preservation, land reclamation, and refurbishment of existing sites. They are also doing more residential design work as households spend more on landscaping than in the past. Because landscape architects can work on many different types of projects, they may have an easier time than other design professionals finding employment when traditional construc­ tion slows down. New graduates can expect to face competition for jobs in the largest and most prestigious landscape architecture firms, but should face good job opportunities overall as demand increases, while the number of graduates of landscape architecture holds steady or goes up slightly. Opportunities will be best for land­ scape architects who develop strong technical skills—such as computer design—and communication skills, as well as knowl­ edge of environmental codes and regulations. Those with addi­ tional training or experience in urban planning increase their opportunities for employment in landscape architecture firms that specialize in site planning as well as landscape design. Many employers prefer to hire entry-level landscape architects who have internship experience, which significantly reduces the amount of on-the-job training required. Earnings In 2002, median annual earnings for landscape architects were $47,400. The middle 50 percent earned between $36,140 and $62,470. The lowest 10 percent earned less than $28,730 and the highest 10 percent earned over $79,620. Architectural, en­ gineering, and related services employed more landscape archi­ tects than any other group of industries, and there the median annual earnings were $46,980 in 2002. In 2003, the average annual salary for all landscape archi­ tects in the Federal Government in nonsupervisory, supervisory, and managerial positions was $68,959. Because many landscape architects work for small firms or are self-employed, benefits tend to be less generous than those provided to workers in large organizations. Related Occupations Landscape architects use their knowledge of design, construc­ tion, land-use planning, and environmental issues to develop a landscape project. Others whose work requires similar skills are architects, except landscape and naval; surveyors, cartographers, photogrammetrists, and surveying technicians; civil engineers; and urban and regional planners. Landscape architects also must know how to grow and use plants in the landscape. Some conservation scientists and foresters and biological and medi­ cal scientists study plants in general and do related work, while environmental scientists and geoscientists work in the area of environmental remediation. Sources of Additional Information Additional information, including a list of colleges and univer­ sities offering accredited programs in landscape architecture, is available from: >- American Society of Landscape Architects, Career Information, 636 Eye St. NW., Washington, DC 20001-3736. Internet: http://www.asla.org General information on registration or licensing requirements is available from: ► Council of Landscape Architectural Registration Boards, 144 Church Street NW., Suite 201, Vienna, VA 22180-4550. Internet: http://www.clarb.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Surveyors, Cartographers, Photogrammetrists, and Surveying Technicians (0*NET 17-1021.00, 17-1022.00, 17-3031.01, 17-3031.02) Significant Points  • •  •  Almost 2 out of 3 jobs were in architectural, engineering, and related services. Opportunities will be best for surveyors, cartographers, and photogrammetrists who have at least a bachelor’s degree and strong technical skills. Computer skills enhance employment opportunities.  Nature of the Work Several different types of workers are responsible for measuring and mapping the earth’s surface. Traditional land surveyors establish official land, air space, and water boundaries. They write descriptions of land for deeds, leases, and other legal docu­ ments; define airspace for airports; and measure construction and mineral sites. Other surveyors provide data relevant to the shape, contour, location, elevation, or dimension of land or land features. Cartographers compile geographic, political, and cultural information and prepare maps of large areas. Photo­ grammetrists measure and analyze aerial photographs that are subsequently used to prepare detailed maps and drawings. Sur­ veying technicians assist land surveyors by operating survey instruments and collecting information in the field and by per­ forming computations and computer-aided drafting in offices. Mapping technicians calculate mapmaking information from field notes. They also draw topographical maps and verify their accuracy. Land surveyors manage survey parties who measure dis­ tances, directions, and angles between points and elevations of points, lines, and contours on, above, and below the earth’s surface. They plan the fieldwork, select known survey refer­ ence points, and determine the precise location of important features in the survey area. Surveyors research legal records, look for evidence of previous boundaries, and analyze the data to determine the location of boundary lines. They also record the results of surveys, verify the accuracy of data, and prepare plots, maps, and reports. Surveyors who establish boundaries must be licensed by the State in which they work. Known as professional land surveyors, they are sometimes called to pro­ vide expert testimony in court cases concerning matters per­ taining to surveying. A survey party gathers the information needed by the land surveyor. A typical survey party consists of a party chief and one or more surveying technicians and helpers. The party chief, who may be either a land surveyor or a senior surveying techni­ cian, leads day-to-day work activities. Surveying technicians assist the party chief by adjusting and operating surveying instruments, such as the theodolite (used to measure horizontal and vertical angles) and electronic distance-measuring equip­ ment. Surveying technicians or assistants position and hold the vertical rods, or targets, that the theodolite operator sights on to measure angles, distances, or elevations. In addition, they may hold measuring tapes, if electronic distance-measuring equipment is not used. Surveying technicians compile notes, make sketches, and enter the data obtained from surveying  Professional and Related Occupations instruments into computers. Survey parties also may include laborers or helpers who perform less skilled duties, such as clear­ ing brush from sight lines, driving stakes, or carrying equip­ ment. New technology is changing the nature of the work of sur­ veyors and surveying technicians. On larger projects, surveyors are increasingly using the Global Positioning System (GPS), a satellite system that locates points on the earth to a high degree of precision by using radio signals transmitted via satellites. To use this system, a surveyor places a satellite signal receiver—a small instrument mounted on a tripod—on a desired point. The receiver simultaneously collects information from several satel­ lites to establish a precise position. The receiver also can be placed in a vehicle for tracing out road systems. Because re­ ceivers now come in different sizes and shapes, and because the cost of receivers has fallen, much more surveying work can be done with GPS. Surveyors then must interpret and check the results produced by the new technology. Cartographers measure, map, and chart the earth’s surface. Their work involves everything from performing geographical research and compiling data to actually producing maps. Car­ tographers collect, analyze, and interpret both spatial data— such as latitude, longitude, elevation, and distance—and nonspatial data—for example, population density, land-use pat­ terns, annual precipitation levels, and demographic characteris­ tics. They prepare maps in either digital or graphic form, using information provided by geodetic surveys, aerial photographs, and satellite data. Photogrammetrists prepare detailed maps and drawings from aerial photographs, usually of areas that are inac­ cessible, difficult, or less cost efficient to survey by other meth­ ods. Map editors develop and verify the contents of maps, using aerial photographs and other reference sources. Some States require photogrammetrists to be licensed as professional land surveyors. Some surveyors perform specialized functions closer to those of cartographers than to those of traditional surveyors. For ex­ ample, geodetic surveyors use high-accuracy techniques, in­ cluding satellite observations (remote sensing), to measure large areas of the earth’s surface. Geophysical prospecting surveyors mark sites for subsurface exploration, usually in relation to pe­ troleum. Marine or hydrographic surveyors survey harbors, riv­ ers, and other bodies of water to determine shorelines, the to­ pography of the bottom, water depth, and other features.  I m  SSiftS  mm  KSm mm mms  issHgltls gi  Surveyors select known survey reference points and determine the precise location of important features in the survey area.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  123  The work of surveyors and cartographers is changing be­ cause of advancements in technology, including not only the GPS, but also new earth resources data satellites, improved aerial photography, and geographic information systems (GIS)—com­ puterized data banks of spatial data, along with the hardware, software, and staff needed to use them. These systems are ca­ pable of assembling, integrating, analyzing, and displaying data identified according to location. A GIS typically is used to handle maps which combine information that is useful for envi­ ronmental studies, geology, engineering, planning, business marketing, and other disciplines. As more of these systems are developed, a new type of mapping scientist is emerging from the older specialties of photogrammetrist and cartographer: the geographic information specialist combines the functions of mapping science and surveying into a broader field concerned with the collection and analysis of geographic data. Working Conditions Surveyors usually work an 8-hour day, 5 days a week, and may spend a lot of time outdoors. Sometimes they work longer hours during the summer, when weather and light conditions are most suitable for fieldwork. Seasonal demands for longer hours are related to demand for specific surveying services. Home pur­ chases traditionally are related to the start and end of the school year; construction is related to the materials to be used (unlike wood framing, concrete and asphalt are restricted by outside temperatures); and aerial photography is most effective when the leaves are off the trees. Land surveyors and technicians engage in active, sometimes strenuous, work. They often stand for long periods, walk con­ siderable distances, and climb hills with heavy packs of instru­ ments and other equipment. They also can be exposed to all types of weather. Traveling often is part of the job, and land surveyors and technicians may commute long distances, stay away from home overnight, or temporarily relocate near a sur­ vey site. Although surveyors can spend considerable time indoors, planning surveys, analyzing data, and preparing reports and maps, cartographers and photogrammetrists spend virtually all of their time in offices and seldom visit the sites they are mapping. Employment Surveyors, cartographers, photogrammetrists, and surveying tech­ nicians held about 124,000 jobs in 2002. Architectural, engi­ neering, and related services firms—including firms that pro­ vided surveying and mapping services to other industries on a contract basis—provided about two-thirds of jobs for these work­ ers. Federal, State, and local governmental agencies provided almost 1 in 6 jobs. Major Federal Government employers are the U.S. Geological Survey (USGS), the Bureau of Land Man­ agement (BLM), the Army Corps of Engineers, the Forest Ser­ vice (USFS), the National Oceanic and Atmospheric Adminis­ tration (NOAA), the National Imagery and Mapping Agency (NIMA), and the Federal Emergency Management Agency (FEMA). Most surveyors in State and local government work for highway departments and urban planning and redevelop­ ment agencies. Construction firms, mining and oil and gas ex­ traction companies, and utilities also employ surveyors, cartog­ raphers, photogrammetrists, and surveying technicians. Only a small number were self-employed in 2002.  124  Occupational Outlook Handbook  Training, Other Qualifications, and Advancement Most people prepare for a career as a licensed surveyor by com­ bining postsecondary school courses in surveying with exten­ sive on-the-job training. However, as technology advances, a 4year college degree is increasingly becoming a prerequisite. About 50 universities now offer 4-year programs leading to a B.S. degree in surveying. Junior and community colleges, tech­ nical institutes, and vocational schools offer !-, 2-, and 3-year programs in both surveying and surveying technology. All 50 States and all U.S. territories (Puerto Rico, Guam, the Mariana Islands, and the Virgin Islands) license land surveyors. For licensure, most State licensing boards require that individu­ als pass a written examination given by the National Council of Examiners for Engineering and Surveying. Most States also require surveyors to pass a written examination prepared by the State licensing board. In addition, candidates must meet vary­ ing standards of formal education and work experience in the field. In the past, many with little formal training in surveying started as members of survey crews and worked their way up to become licensed surveyors. However, because of advancing technology and rising licensing standards, formal education requirements are increasing. Specific requirements vary among States. Generally, the quickest route to licensure is a combina­ tion of 4 years of college, up to 4 years of experience under the supervision of an experienced surveyor (a few States do not require any such experience), and passing the licensing exami­ nations. An increasing number of States require a bachelor’s degree in surveying or in a closely related field, such as civil engineering or forestry (with courses in surveying), regardless of the number of years of experience. Many states also have a continuing education requirement. High school students interested in surveying should take courses in algebra, geometry, trigonometry, drafting, mechani­ cal drawing, and computer science. High school graduates with no formal training in surveying usually start as apprentices. Beginners with postsecondary school training in surveying usu­ ally can start as technicians or assistants. With on-the-job expe­ rience and formal training in surveying—either in an institu­ tional program or from a correspondence school—workers may advance to senior survey technician, then to party chief, and, in some cases, to licensed surveyor (depending on State licensing requirements). The National Society of Professional Surveyors, a member organization of the American Congress on Surveying and Map­ ping, has a voluntary certification program for surveying tech­ nicians. Technicians are certified at four levels requiring pro­ gressive amounts of experience, in addition to the passing of written examinations. Although not required for State licen­ sure, many employers require certification for promotion to po­ sitions with greater responsibilities. Surveyors should have the ability to visualize objects, dis­ tances, sizes, and abstract forms. They must work with precision and accuracy, because mistakes can be costly. Members of a survey party must be in good physical condition, because they work outdoors and often carry equipment over difficult terrain. They need good eyesight, coordination, and hearing to commu­ nicate verbally and manually (using hand signals). Surveying is a cooperative operation, so good interpersonal skills and the ability to work as part of a team are important. Good office skills also are essential, because surveyors must be able to re­ search old deeds and other legal papers and prepare reports that document their work.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Cartographers and photogrammetrists usually have a bachelor’s degree in a field such as engineering, forestry, geog­ raphy, or a physical science. Although it is possible to enter these positions through previous experience as a photogrammetric or cartographic technician, nowadays most cartographic and photogrammetric technicians have had some specialized postsecondary school training. With the development of GIS, cartographers and photogrammetrists need additional educa­ tion and stronger technical skills—including more experience with computers—than in the past. The American Society for Photogrammetry and Remote Sens­ ing has a voluntary certification program for photogrammetrists. To qualify for this professional distinction, individuals must meet work experience standards and pass an oral or a written examination.  Job Outlook Overall employment of surveyors, cartographers, photogram­ metrists, and surveying technicians is expected to grow about as fast as the average for all occupations through the year 2012. The widespread availability and use of advanced technologies, such as GPS, GIS, and remote sensing, will continue to increase both the accuracy and productivity of these workers, resulting in modest overall growth in employment. However, job open­ ings will continue to result from the need to replace workers who transfer to other occupations or who leave the labor force altogether. Employment of surveying and mapping technicians is ex­ pected to grow faster than the average for all occupations through 2012. The short training period needed to learn to operate the equipment, the current lack of any formal testing or licensing, the growing demand for people to do basic GIS-related dataentry work, and relatively lower wages all encourage demand for these technicians. However, many persons possess the basic skills needed to qualify for the jobs that are available, so com­ petition for job openings may result. As technologies become more complex, opportunities will be best for surveyors, cartographers, and photogrammetrists who have at least a bachelor’s degree and strong technical skills. Increasing demand for geographic data, as opposed to tradi­ tional surveying services, will mean better opportunities for cartographers and photogrammetrists who are involved in the development and use of geographic and land information sys­ tems. New technologies, such as GPS and GIS, also may en­ hance employment opportunities for surveyors, as well as for those surveying technicians who have the educational back­ ground and who have acquired technical skills that enable them to work with the new systems. At the same time, upgraded li­ censing requirements will continue to limit opportunities for professional advancement for those without bachelor’s degrees. Opportunities for surveyors, cartographers, and photogram­ metrists should remain concentrated in architectural, engineer­ ing, and related services firms. However, nontraditional areas, such as urban planning, emergency preparedness, and natural resource exploration and mapping, also should provide employ­ ment growth, particularly with regard to producing maps for the management of emergencies and updating maps with the newly available technology. Continued growth in construction through 2012 will require surveyors to lay out streets, shopping centers, housing developments, factories, office buildings, and recre­ ation areas, while setting aside flood plains, wetlands, wildlife habitats, and environmentally sensitive areas for protection.  Professional and Related Occupations However, employment may fluctuate from year to year along with construction activity or with mapping needs for land and resource management. Earnings Median annual earnings of cartographers and photogrammetrists were $42,870 in 2002. The middle 50 percent earned between $32,580 and $55,610. The lowest 10 percent earned less than $25,810 and the highest 10 percent earned more than $69,320. Median annual earnings of surveyors were $39,970 in 2002. The middle 50 percent earned between $29,320 and $53,440. The lowest 10 percent earned less than $22,260, and the highest 10 percent earned more than $67,700. Median hourly earnings of surveyors employed in architectural, engineering, and re­ lated services were $38,370 in 2002. Median annual earnings of surveying and mapping techni­ cians were $29,230 in 2002. The middle 50 percent earned between $22,640 and $39,070 in 2002. The lowest 10 percent earned less than $18,490, and the highest 10 percent earned more than $48,970. Median annual earnings of surveying and mapping technicians employed in architectural, engineering, and related services were $27,130 in 2002, while those em­ ployed by local governments had median annual earnings of $33,680. In 2003, land surveyors in nonsupervisory, supervisory, and managerial positions in the Federal Government earned an av­ erage salary of $62,980; cartographers, $67,989; geodetic tech­ nicians, $55,374; surveying technicians, $33,316; and carto­ graphic technicians, $43,517.  125  Related Occupations Surveying is related to the work of civil engineers, architects, and landscape architects because an accurate survey is the first step in land development and construction projects. Cartogra­ phy and geodetic surveying are related to the work of environ­ mental scientists and geoscientists, who study the earth’s inter­ nal composition, surface, and atmosphere. Cartography also is related to the work of geographers and urban and regional plan­ ners, who study and decide how the earth’s surface is to be used. Sources of Additional Information For career information on surveyors, cartographers, photogrammetrists, and surveying technicians, contact: > The American Congress on Surveyong and Mapping, Suite #403, 6 Montgomery Village Ave., Gaithersburg, MD 20879. Internet: http://www.acsm.net  Information about career opportunities, licensure require­ ments, and the surveying technician certification program is available from: >• National Society of Professional Surveyors, Suite #403, 6 Montgomery Village Ave., Gaithersburg, MD 20879. Internet: http://www.acsm.net/nsps  For information on a career as a geodetic surveyor, contact: ► American Association of Geodetic Surveying (AAGS), Suite #403, 6 Montgomery Village Ave., Gaithersburg, MD 20879. Internet: http://www.acsm.net/aags  General information on careers in photogrammetry and re­ mote sensing is available from: >- ASPRS: The Imaging and Geospatial Information Society, 5410 Grosvenor Ln., Suite 210, Bethesda, MD 20814-2160. Internet: http://www.asprs.org  Engineers (0* *NET 17-2011.00, 17-2021.00, 17-2031.00, 17-2041.00, 17-2051.00, 17-2061.00, 17-2071.00, 17-2072.00, 17-2081.00, 17-2111.01, 17-2111.02, 17-2111.03, 17-2112.00, 17-2121.01, 17-2121.02, 17-2131.00, 17-2141.00, 17-2151.00, 17-2161.00, 17-2171.00, 17-2199.99) Significant Points  • • • •  Overall, job opportunities in engineering are expected to be good, but will vary by specialty. A bachelor’s degree is required for most entry-level jobs. Starting salaries are significantly higher than those of college graduates in other fields. Continuing education is critical to keep abreast of the latest technology.  Nature of the Work Engineers apply the theories and principles of science and math­ ematics to research and develop economical solutions to tech­ nical problems. Their work is the link between perceived social needs and commercial applications. Engineers design prod­ ucts, machinery to build those products, plants in which those products are made, and the systems that ensure the quality of the  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  products and the efficiency of the workforce and manufacturing process. Engineers design, plan, and supervise the construction of buildings, highways, and transit systems. They develop and implement improved ways to extract, process, and use raw mate­ rials, such as petroleum and natural gas. They develop new materials that both improve the performance of products and take advantage of advances in technology. They harness the power of the sun, the Earth, atoms, and electricity for use in supplying the Nation’s power needs, and create millions of prod­ ucts using power. They analyze the impact of the products they develop or the systems they design on the environment and on people using them. Engineering knowledge is applied to im­ proving many things, including the quality of healthcare, the safety of food products, and the operation of financial systems. Engineers consider many factors when developing a new product. For example, in developing an industrial robot, engi­ neers determine precisely what function the robot needs to per­ form; design and test the robot’s components; fit the compo­ nents together in an integrated plan; and evaluate the design’s overall effectiveness, cost, reliability, and safety. This process applies to many different products, such as chemicals, comput­ ers, gas turbines, helicopters, and toys. In addition to design and development, many engineers work in testing, production, or maintenance. These engineers super-  126  Occupational Outlook Handbook  vise production in factories, determine the causes of breakdowns, and test manufactured products to maintain quality. They also estimate the time and cost to complete projects. Some move into engineering management or into sales. In sales, an engi­ neering background enables them to discuss technical aspects and assist in product planning, installation, and use. (See the statements on engineering and natural sciences managers, and sales engineers, elsewhere in the Handbook.) Most engineers specialize. More than 25 major specialties are recognized by professional societies, and the major branches have numerous subdivisions. Some examples include struc­ tural and transportation engineering, which are subdivisions of civil engineering; and ceramic, metallurgical, and polymer en­ gineering, which are subdivisions of materials engineering. Engineers also may specialize in one industry, such as motor vehicles, or in one field of technology, such as turbines or semi­ conductor materials. This statement, which contains an overall discussion of en­ gineering, is followed by separate statements on 14 branches of engineering: Aerospace; agricultural; biomedical; chemi­ cal; civil; computer hardware; electrical and electronics, ex­ cept computer; environmental; industrial, including health and safety; materials; mechanical; mining and geological, includ­ ing mining safety; nuclear; and petroleum engineering. (Com­ puter software engineers are discussed elsewhere in the Hand­ book.) Some branches of engineering not covered in detail in the Handbook, but for which there are established college pro­ grams, include architectural engineering—the design of a building’s internal support structure; and marine engineering— the design and installation of ship machinery and propulsion systems. Engineers in each branch have a base of knowledge and train­ ing that can be applied in many fields. Electronics engineers, for example, work in the medical, computer, communications, and missile guidance fields. Because there are many separate problems to solve in a large engineering project, engineers in one field often work closely with specialists in other scientific, engineering, and business occupations. Engineers use computers to produce and analyze designs; to simulate and test how a machine, structure, or system operates; and to generate specifications for parts. Using the Internet or related communications systems, engineers can collaborate on designs with other engineers around the country or even abroad. Many engineers also use computers to monitor product quality and control process efficiency. They spend a great deal of time writing reports and consulting with other engineers, as complex projects often require an interdisciplinary team of engineers. Supervisory engineers are responsible for major components or entire projects. Working Conditions Most engineers work in office buildings, laboratories, or indus­ trial plants. Others may spend time outdoors at construction sites and oil and gas exploration and production sites, where they monitor or direct operations or solve onsite problems. Some engineers travel extensively to plants or worksites. Many engineers work a standard 40-hour week. At times, deadlines or design standards may bring extra pressure to a job, sometimes requiring engineers to work longer hours.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Employment In 2002 engineers held 1.5 million jobs. The following tabula­ tion shows the distribution of employment by engineering spe­ cialty.  Specialty Total, all engineers.................................... Electrical and electronics....................... Civil..................................................... Mechanical........................................... Industrial, including health and safety.... Aerospace............................................. Computer hardware.............................. Environmental...................................... Chemical............................................... Materials............................................... Nuclear................................................. Petroleum............................................. Biomedical............................................ Mining and geological, including mining safety ................................................ Marine engineers and naval architects .... Agricultural.......................................... All other engineers................................  Employment  Percent  1,478,000  100  292,000 228,000 215,000 194,000 78,000 74,000 47,000 33,000 24,000 16,000 14,000 7,600  19.8 15.4 14.5 13.1 5.3 5.0 3.2 2.2 1.6 1.1 0.9 0.5  5,200 4,900 2,900 243,000  0.4 0.3 0.2 16.4  Almost 4 in 10 of all engineering jobs were found in manu­ facturing industries, such as transportation and equipment manu­ facturing and computer and electronic product manufacturing. About 354,000 wage and salary jobs were in the professional, scientific, and technical service industry, primarily in architec­ tural, engineering, and related services and in scientific research and development services, where firms designed construction projects or did other engineering work on a contractual basis. Engineers also worked in the construction and transportation, telecommunications, and utilities industries. Federal, State, and local governments employed about 192,000 engineers in 2002. About 88,000 of these were in the Federal Government, mainly in the U.S. Departments of De­ fense, Transportation, Agriculture, Interior, and Energy, and in the National Aeronautics and Space Administration. Most engi­ neers in State and local government agencies worked in high­ way and public works departments. In 2002, about 55,000 en­ gineers were self-employed, many as consultants. Engineers are employed in every State, in small and large cities, and in rural areas. Some branches of engineering are concentrated in particular industries and geographic areas, as discussed later in this chapter. Training, Other Qualifications, and Advancement A bachelor’s degree in engineering is required for almost all entry-level engineering jobs. College graduates with a degree in a physical science or mathematics occasionally may qualify for some engineering jobs, especially in specialties in high de­ mand. Most engineering degrees are granted in electrical, elec­ tronics, mechanical, or civil engineering. However, engineers trained in one branch may work in related branches. For ex­ ample, many aerospace engineers have training in mechanical engineering. This flexibility allows employers to meet staffing needs in new technologies and specialties in which engineers may be in short supply. It also allows engineers to shift to fields with better employment prospects or to those that more closely match their interests. Most engineering programs involve a concentration of study in an engineering specialty, along with courses in both math­  Professional and Related Occupations ematics and science. Most programs include a design course, sometimes accompanied by a computer or laboratory class or both. In addition to the standard engineering degree, many col­ leges offer 2- or 4-year degree programs in engineering technol­ ogy. These programs, which usually include various hands-on laboratory classes that focus on current issues, prepare students for practical design and production work, rather than for jobs that require more theoretical and scientific knowledge. Gradu­ ates of 4-year technology programs may get jobs similar to those obtained by graduates with a bachelor’s degree in engineering. Engineering technology graduates, however, are not qualified to register as professional engineers under the same terms as graduates with degrees in engineering. Some employers regard technology program graduates as having skills between those of a technician and an engineer. Graduate training is essential for engineering faculty posi­ tions and many research and development programs, but is not required for the majority of entry-level engineering jobs. Many engineers obtain graduate degrees in engineering or business administration to learn new technology and broaden their edu­ cation. Many high-level executives in government and indus­ try began their careers as engineers. About 340 colleges and universities offer bachelor’s degree programs in engineering that are accredited by the Accredita­ tion Board for Engineering and Technology (ABET), and about 240 colleges offer accredited bachelor’s degree programs in en­ gineering technology. ABET accreditation is based on an ex­ amination of an engineering program’s student achievement, program improvement, faculty, curricular content, facilities, and institutional commitment. Although most institutions offer pro­ grams in the major branches of engineering, only a few offer programs in the smaller specialties. Also, programs of the same title may vary in content. For example, some programs empha­ size industrial practices, preparing students for a job in industry, whereas others are more theoretical and are designed to prepare students for graduate work. Therefore, students should investi­ gate curricula and check accreditations carefully before select­ ing a college. Admissions requirements for undergraduate engineering schools include a solid background in mathematics (algebra, geometry, trigonometry, and calculus) and science (biology, chemistry, and physics), and courses in English, social studies, humanities, and computer and information technology. Bachelor’s degree programs in engineering typically are de­ signed to last 4 years, but many students find that it takes be­ tween 4 and 5 years to complete their studies. In a typical 4-year college curriculum, the first 2 years are spent studying math­ ematics, basic sciences, introductory engineering, humanities, and social sciences. In the last 2 years, most courses are in engineering, usually with a concentration in one branch. For example, the last 2 years of an aerospace program might include courses in fluid mechanics, heat transfer, applied aerodynamics, analytical mechanics, flight vehicle design, trajectory dynam­ ics, and aerospace propulsion systems. Some programs offer a general engineering curriculum; students then specialize in graduate school or on the job. Some engineering schools and 2-year colleges have agree­ ments whereby the 2-year college provides the initial engineer­ ing education, and the engineering school automatically ad­ mits students for their last 2 years. In addition, a few engineering schools have arrangements whereby a student spends 3 years in a liberal arts college studying pre-engineering subjects and  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  127  2 years in an engineering school studying core subjects, and then receives a bachelor’s degree from each school. Some col­ leges and universities offer 5-year master’s degree programs. Some 5-year or even 6-year cooperative plans combine class­ room study and practical work, permitting students to gain valu­ able experience and to finance part of their education. All 50 States and the District of Columbia require licensure for engineers who offer their services directly to the public. Engineers who are licensed are called Professional Engineers (PE). This licensure generally requires a degree from an ABETaccredited engineering program, 4 years of relevant work expe­ rience, and successful completion of a State examination. Re­ cent graduates can start the licensing process by taking the examination in two stages. The initial Fundamentals of Engi­ neering (FE) examination can be taken upon graduation. Engi­ neers who pass this examination commonly are called Engi­ neers in Training (EIT) or Engineer Interns (El). After acquiring suitable work experience, EITs can take the second examina­ tion, the Principles and Practice of Engineering exam. Several States have imposed mandatory continuing education require­ ments for relicensure. Most States recognize licensure from other States provided that the manner in which the initial li­ cense was obtained meets or exceeds their licensure require­ ments. Many civil, electrical, mechanical, and chemical engi­ neers are licensed PEs. Engineers should be creative, inquisitive, analytical, and detail-oriented. They should be able to work as part of a team and to communicate well, both orally and in writing. Commu­ nication abilities are important because engineers often interact with specialists in a wide range of fields outside engineering. Beginning engineering graduates usually work under the supervision of experienced engineers and, in large companies, also may receive formal classroom or seminar-type training. As new engineers gain knowledge and experience, they are assigned more difficult projects with greater independence to develop designs, solve problems, and make decisions. Engineers may advance to become technical specialists or to supervise a staff or team of engineers and technicians. Some may eventually become engineering managers or enter other managerial or sales jobs. (See the statements under management and business and financial operations occupations, and sales and related occupa­ tions, elsewhere in the Handbook.) Job Outlook Overall engineering employment is expected to increase more slowly than the average for all occupations over the 2002-12 period. Engineers tend to be concentrated in slow-growing manufacturing industries, a factor which tends to hold down their employment growth. Also, many employers are increasing their use of engineering services performed in other countries. Despite this, overall job opportunities in engineering are ex­ pected to be good because the number of engineering graduates should be in rough balance with the number of job openings over this period. Expected changes in employment and, thus, job opportunities vary by specialty. Projections range from a decline in employment of mining and geological engineers, petroleum engineers, and nuclear engineers to much faster than average growth among environmental engineers. Competitive pressures and advancing technology will force companies to improve and update product designs and to opti­ mize their manufacturing processes. Employers will rely on engineers to further increase productivity, as investment in plant and equipment increases to expand output of goods and ser­  128  Occupational Outlook Handbook  vices. New computer and communications systems have im­ proved the design process, enabling engineers to produce and analyze various product designs much more rapidly than in the past and to collaborate on designs with other engineers through­ out the world. Despite these widespread applications, computer technology is not expected to limit employment opportunities. Finally, additional engineers will be needed to improve or build new roads, bridges, water and pollution control systems, and other public facilities. There is a large number of well-trained, often English-speak­ ing engineers available in many countries who are willing to work at much lower salaries than U.S. engineers. The rise of the Internet and other electronic communications systems has made it relatively easy for much of the engineering work previously done by engineers in this country to be done by engineers in other countries, a factor that will tend to hold down employ­ ment growth. Compared with most other workers, a smaller proportion of engineers leave their jobs each year. Nevertheless, many job openings will arise from replacement needs, reflecting the large size of this profession. Numerous job openings will be created by engineers who transfer to management, sales, or other profes­ sional occupations; additional openings will arise as engineers retire or leave the labor force for other reasons. Many engineers work on long-term research and develop­ ment projects or in other activities that continue even during economic slowdowns. In industries such as electronics and aero­ space, however, large cutbacks in defense expenditures and gov­ ernment research and development funds in the past, as well as the trend toward contracting out engineering work to engineer­ ing services firms, both domestic and foreign, have resulted in significant layoffs of engineers. It is important for engineers, like those working in other tech­ nical occupations, to continue their education throughout their careers because much of their value to their employer depends on their knowledge of the latest technology. Although the pace of technological change varies by engineering specialty and industry, advances in technology have significantly affected every engineering discipline. Engineers in high-technology areas, such as advanced electronics or information technology, may find that technical knowledge can become outdated rap­ idly. Even those who continue their education are vulnerable to layoffs if the particular technology or product in which they have specialized becomes obsolete. By keeping current in their field, engineers are able to deliver the best solutions and great­ est value to their employers. Engineers who have not kept cur­ rent in their field may find themselves passed over for promo­ tions or vulnerable to layoffs, should they occur. On the other hand, it often is these high-technology areas that offer the great­ est challenges, the most interesting work, and the highest sala­ ries. Therefore, the choice of engineering specialty and em­ ployer involves an assessment not only of the potential rewards but also of the risk of technological obsolescence. Related Occupations Engineers apply the principles of physical science and math­ ematics in their work. Other workers who use scientific and mathematical principles include architects, except landscape and naval; engineering and natural sciences managers; com­ puter and information systems managers; mathematicians; draft­ ers; engineering technicians; sales engineers; science techni­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  cians; and physical and life scientists, including agricultural and food scientists, biological scientists, conservation scien­ tists and foresters, atmospheric scientists, chemists and materi­ als scientists, environmental scientists and geoscientists, and physicists and astronomers. Sources of Additional Information High school students interested in obtaining information about careers in engineering should visit the JETS Web site: http ://www.jets.org, > JETS-Guidance, 1420 King St., Suite 405, Alexandria, VA 22314­ 2794. Information on ABET-accredited engineering programs is available from: >- The Accreditation Board for Engineering and Technology, Inc., Ill Market Place, Suite 1050, Baltimore, MD 21202-4012. Internet: http://www.abet.org  Those interested in information on the Professional Engi­ neer licensure should contact: > The National Society of Professional Engineers, 1420 King St., Alex­ andria, VA 22314-2794. Internet: http://www.nspe.org >- National Council of Examiners for Engineers and Surveying, P.O. Box 1686, Clemson, SC 29633-1686. Internet: http://www.ncees.org Information on general engineering education and career re­ sources is available from: > American Society for Engineering Education, 1818 N St. NW., Suite 600, Washington, DC 20036-2479. Internet: http://www.asee.org Information on obtaining an engineering position with the Federal Government is available from the Office of Personnel Management (OPM) through a telephone-based system. Con­ sult your telephone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site http://www.usajobs.opm.gov Non-high school students wanting more detailed informa­ tion on an engineering specialty should contact societies repre­ senting the individual branches of engineering. Each can pro­ vide information about careers in the particular branch. The individual statements that follow also provide other detailed information on aerospace; agricultural; biomedical; chemical; civil; computer hardware; electrical and electronics, except com­ puter; environmental; industrial, including health and safety; materials; mechanical; mining and geological, including min­ ing safety; nuclear; and petroleum engineering.  Aerospace Engineers (0*NET 17-2011.00) Nature of the Work Aerospace engineers create extraordinary machines, from air­ planes that weigh over a half a million pounds to spacecraft that travel over 17,000 miles an hour. They design, develop, and test aircraft, spacecraft, and missiles and supervise the manufac­ ture of these products. Aerospace engineers who work with aircraft are called aeronautical engineers, and those working specifically with spacecraft are astronautical engineers. Aerospace engineers develop new technologies for use in aviation, defense systems, and space exploration, often special­ izing in areas such as structural design, guidance, navigation and control, instrumentation and communication, or produc-  Professional and Related Occupations  129  Earnings Median annual earnings of aerospace engineers were $72,750 in 2002. The middle 50 percent earned between $59,520 and $88,310. The lowest 10 percent earned less than $49,640, and the highest 10 percent earned more than $105,060. Median annual earnings in the industries employing the largest num­ bers of aerospace engineers in 2002 were: Federal government.............................................................. Architectural, engineering, and related services.................... Aerospace product and parts manufacturing.........................  $81,830 74,890 70,920  According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in aerospace engineering received starting salary offers averag­ ing $48,028 a year, master’s degree candidates were offered $61,162, and Ph.D. candidates were offered $68,406. Aerospace engineers prepare a space vehicle for launch. tion methods. They often use computer-aided design (CAD) software, robotics, and lasers and advanced electronic optics. They also may specialize in a particular type of aerospace prod­ uct, such as commercial transports, military fighter jets, heli­ copters, spacecraft, or missiles and rockets. Aerospace engi­ neers may be experts in aerodynamics, thermodynamics, celestial mechanics, propulsion, acoustics, or guidance and control systems. Aerospace engineers typically are employed in the aerospace product and parts industry, although their skills are becoming increasingly valuable in other fields. For example, in the motor vehicles manufacturing industry, aerospace engineers design vehicles that have lower air resistance and, thus, increased fuel efficiency. Employment Aerospace engineers held about 78,000 jobs in 2002. Most worked in the aerospace product and parts manufacturing in­ dustries. Federal Government agencies, primarily the U.S. De­ partment of Defense and the National Aeronautics and Space Administration, provided 10 percent of jobs. Architectural, en­ gineering and related services, scientific research and develop­ ment services, and navigational, measuring, electromedical, and control instruments manufacturing industry firms accounted for most of the remaining jobs. Job Outlook Employment of aerospace engineers is expected to decline over the projection period. Foreign competition and the slowdown in air travel will limit the number of new jobs for aerospace engineers related to the design and production of commercial aircraft over the projection period. Despite the expected de­ cline in employment, favorable opportunities are expected for aerospace engineers through 2012 because the number of de­ grees granted in aerospace engineering has declined greatly over the last decade due to the perceived lack of opportunities in this occupation. The decline in degree production has reached the point that the number trained in aerospace engineering may not be adequate to replace the large numbers of aerospace engi­ neers who are expected to leave the occupation, especially due to retirement, over the 2002-12 period. Some employment op­ portunities also will occur in industries not typically associated with aerospace, such as motor vehicle manufacturing.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Sources of Additional Information For further information about careers in the aerospace industry, contact: >• Aerospace Industries Association, 1250 Eye St. NW., Suite 1200, Wash­ ington, DC 20005-3924. Internet: http://www.aia-aerospace.org ► American Institute of Aeronautics and Astronautics, Inc., 1801 Alexander Bell Dr., Suite 500, Reston, VA 20191-4344. Internet: http://www.aiaa.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Agricultural Engineers (0*NET 17-2021.00) Nature of the Work Agricultural engineers apply knowledge of engineering tech­ nology and biological science to agriculture. (See biological scientists and agricultural and food scientists elsewhere in the Handbook.) They design agricultural machinery and equip­ ment and agricultural structures. Some specialties include power systems and machinery design; structures and environment; and food and bioprocess engineering. They develop ways to con­ serve soil and water and to improve the processing of agricul­ tural products. Agricultural engineers work in research and de­ velopment, production, sales, or management. Employment About one third of the 2,900 agricultural engineers employed in 2002 worked for professional, scientific, and technical ser­ vices, supplying consultant services to farmers and farm-related industries. Others worked in a wide variety of industries, in­ cluding crops and livestock as well as manufacturing and gov­ ernment. Job Outlook Employment of agricultural engineers is expected to increase about as fast as the average for all occupations through 2012. The growing interest in worldwide standardization of agricul­ tural equipment should result in increased employment of agri­ cultural engineers. Job opportunities also should result from the increasing demand for agricultural products, the continued efforts for more efficient agricultural production, and the in­ creasing emphasis on the conservation of resources. In addition to those resulting from employment growth, job openings will  130  Occupational Outlook Handbook  Nik Jfc*  "111  Agricultural engineers apply knowledge of engineering technology and biological science to agriculture.  cal information systems, and health management and care de­ livery systems. (See biological scientists, medical scientists, and chemists and materials scientists elsewhere in the Hand­ book.) Biomedical engineers design devices used in various medical procedures, such as the computers used to analyze blood or the laser systems used in corrective eye surgery. They de­ velop artificial organs, imaging systems such as magnetic reso­ nance, ultrasound, and x-ray, and devices for automating insu­ lin injections or controlling body functions. Most engineers in this specialty require a sound background in one of the basic engineering specialties, such as mechanical or electronics engi­ neering, in addition to specialized biomedical training. Some specialties within biomedical engineering include biomaterials, biomechanics, medical imaging, rehabilitation engineering, and orthopedic engineering. Unlike many other engineering specialties, a graduate de­ gree is recommended or required for many entry-level jobs. Employment Biomedical engineers held about 7,600 jobs in 2002. Manufac­ turing industries employed 38 percent of all biomedical engi­ neers, primarily in the pharmaceutical and medicine manufac­ turing and medical instruments and supplies industries. Many others worked for hospitals. Some also worked for government agencies or as independent consultants.  be created by the need to replace agricultural engineers who transfer to other occupations or leave the labor force. Earnings Median annual earnings of agricultural engineers were $50,700 in 2002. The middle 50 percent earned between $40,320 and $70,100. The lowest 10 percent earned less than $35,590, and the highest 10 percent earned more than $87,220. According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in agricultural engineering received starting offers averaging $42,987 a year, and master’s degree candidates, on average, were offered $54,000. Sources of Additional Information Information on a career as an agricultural engineer can be ob­ tained from: >- American Society of Agricultural Engineers, 2950 Niles Rd„ St. Jo­ seph, MI 49085-9659. Internet: http://www.asae.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Biomedical Engineers (0*NET 17-2031.00) Nature of the Work By combining biology and medicine with engineering, bio­ medical engineers develop devices and procedures that solve medical and health-related problems. Many do research, along with life scientists, chemists, and medical scientists, to develop and evaluate systems and products for use in the fields of biol­ ogy and health, such as artificial organs, prostheses (artificial devices that replace missing body parts), instrumentation, medi­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Many biomedical engineers conduct research to develop and evaluate systems and products for use in the fields of biology and health.  Professional and Related Occupations  Job Outlook Employment of biomedical engineers is expected to increase faster than the average for all occupations through 2012. The aging of the population and the focus on health issues will increase the demand for better medical devices and equipment designed by biomedical engineers. For example, computerassisted surgery and molecular, cellular, and tissue engineering are being more heavily researched and are developing rapidly. In addition, the rehabilitation and orthopedic engineering spe­ cialties are growing quickly, increasing the need for biomedical engineers. Along with the demand for more sophisticated medi­ cal equipment and procedures is an increased concern for cost efficiency and effectiveness that also will boost demand for biomedical engineers. However, because of the growing inter­ est in this field, the number of degrees granted in biomedical engineering has increased greatly, leading to the potential for competition for jobs. Earnings Median annual earnings of biomedical engineers were $60,410 in 2002. The middle 50 percent earned between $58,320 and $88,830. The lowest 10 percent earned less than $48,450, and the highest 10 percent earned more than $107,520. According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in biomedical engineering received starting offers averaging $39,126 a year, and master’s degree candidates, on average, were offered $61,000. Sources of Additional Information For further information about biomedical engineering careers, contact: ► Biomedical Engineering Society, 8401 Corporate Dr., Suite 225, Landover, MD 20785-2224. Internet: http://www.bmes.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Chemical Engineers (0*NET 17-2041.00) Nature of the Work Chemical engineers build a bridge between science and manu­ facturing, applying the principles of chemistry and engineering to solve problems involving the production or use of chemicals. They design equipment and develop processes for large-scale chemical manufacturing, plan and test methods of manufactur­ ing products and treating byproducts, and supervise produc­ tion. Chemical engineers also work in a variety of manufactur­ ing industries other than chemical manufacturing, such as those producing electronics, photographic equipment, clothing, and pulp and paper. They also work in the healthcare, biotechnol­ ogy, and business services industries. The knowledge and duties of chemical engineers overlap many fields. Chemical engineers apply principles of chemistry, physics, mathematics, and mechanical and electrical engineer https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  131  In addition to working in the chemical industry, chemical engineers are employed in a variety of other manufacturing industries and professional, scienitfic, and technical services firms. ing. (See chemists and materials scientists; physicists and as­ tronomers; mechanical engineers; electrical and electronics en­ gineers, except computer; and mathematicians elsewhere in the Handbook.) They frequently specialize in a particular chemical process such as oxidation or polymerization. Others specialize in a particular field, such as materials science, or the develop­ ment of specific products such as fertilizers and pesticides, au­ tomotive plastics, or chlorine bleach. They must be aware of all aspects of chemicals manufacturing and how it affects the envi­ ronment, the safety of workers, and customers. Because chemi­ cal engineers use computer technology to optimize all phases of research and production, they need to understand how to apply computer skills to chemical process analysis, automated control systems, and statistical quality control. Employment Chemical engineers held about 33,000 jobs in 2002. Manufac­ turing industries employed 55 percent of all chemical engi­ neers, primarily in the chemicals, electronics, petroleum refin­ ing, paper, and related industries. Most others worked for professional, scientific, or technical services firms that design chemical plants or perform research and development or other services, mainly for chemical companies. Job Outlook Little or no growth in employment of chemical engineers is expected though 2012. Although overall employment in the chemical manufacturing industry is expected to decline, chemi­ cal companies will continue to research and develop new chemi­ cals and more efficient processes to increase output of existing chemicals. Among manufacturing industries, pharmaceuticals may provide the best opportunities for jobseekers. Many of the jobs for chemical engineers, however, will be in nonmanufacturing industries, especially services industries such as research and testing services. Even though no new jobs due to growth are expected to be created, many openings will result from the need to replace chemical engineers who transfer to other occupations or leave the labor force.  132  Occupational Outlook Handbook  Earnings Median annual earnings of chemical engineers were $72,490 in 2002. The middle 50 percent earned between $58,320 and $88,830. The lowest 10 percent earned less than $48,450, and the highest 10 percent earned more than $107,520. According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in chemical engineering received starting offers averaging $52,384 a year, master’s degree candidates averaged $57,857, and Ph.D. candidates averaged $70,729. Sources of Additional Information Information on careers, employment, education, training, con­ ferences, and publications on chemical engineering is available from: ► American Institute of Chemical Engineers, 3 Park Ave., New York, NY 10016-5901. Internet: http://www.aiche.org Additional information on careers in chemical engineering is available from: > American Chemical Society, Department of Career Services, 1155 16th St. NW., Washington, DC 20036. Internet: http://www.chemistry.org/portal/Chemistry  See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Civil Engineers (0*NET 17-2051.00) Nature of the Work Civil engineers design and supervise the construction of roads, buildings, airports, tunnels, dams, bridges, and water supply and sewage systems. Civil engineering, considered one of the oldest engineering disciplines, encompasses many specialties. The major specialties within civil engineering are structural, water resources, environmental, construction, transportation, and geotechnical engineering. Many civil engineers hold supervisory or administrative po­ sitions, from supervisor of a construction site to city engineer. Others may work in design, construction, research, and teaching. Employment Civil engineers held about 228,000 jobs in 2002. More than 4 in 10 were employed by firms providing architectural, engi­ neering, and related services, primarily developing designs for new construction projects. Almost one-third of the jobs were in Federal, State, and local government agencies. The construc­ tion industry accounted for most of the remaining employment. About 15,000 civil engineers were self-employed, many as con­ sultants. Civil engineers usually work near major industrial and com­ mercial centers, often at construction sites. Some projects are situated in remote areas or in foreign countries. In some jobs, civil engineers move from place to place to work on different projects. Job Outlook Employment of civil engineers is expected to increase more slowly than the average for all occupations through 2012.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Some civil engineers do research on building materials. Spurred by general population growth and an increased empha­ sis on infrastructure and security, more civil engineers will be needed to design and construct safe and higher capacity trans­ portation, water supply, and pollution control systems, and large buildings and building complexes. They also will be needed to repair or replace existing roads, bridges, and other public struc­ tures. In addition to those arising from job growth, openings will result from the need to replace civil engineers who transfer to other occupations or leave the labor force. Because construction and related industries—including those providing design services—employ many civil engineers, em­ ployment opportunities will vary by geographic area and may decrease during economic slowdowns, when construction often is curtailed. Earnings Median annual earnings of civil engineers were $60,070 in 2002. The middle 50 percent earned between $48,360 and $74,700. The lowest 10 percent earned less than $39,960, and the highest 10 percent earned more than $91,010. Median annual earnings in the industries employing the largest numbers of civil engi­ neers in 2002 were: Federal government.............................................................. $67,410 Local government.................................................................... 62,210 Architectural, engineering, andrelated services........................ 59,060 State government..................................................................... 58,350 Nonresidential building construction........................................ 54,190 According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in civil engineering received starting offers averaging $41,669 a year; master’s degree candidates received an average offer of $47,245, and Ph.D. candidates were offered $69,079, on aver­ age, as an initial salary. Sources of Additional Information General information about civil engineers, as well as career, education, and related information, can be obtained from: >• American Society of Civil Engineers, 1801 Alexander Bell Dr., Reston, VA 20191-4400. Internet: http://www.asce.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Professional and Related Occupations  Computer Hardware Engineers (0*NET 17-2061.00) Nature of the Work Computer hardware engineers research, design, develop, and test computer hardware and supervise its manufacture and in­ stallation. Hardware refers to computer chips, circuit boards, computer systems, and related equipment such as keyboards, modems, and printers. (Computer software engineers—often simply called computer engineers—design and develop the soft­ ware systems that control computers. These workers are cov­ ered elsewhere in the Handbook.) The work of computer hard­ ware engineers is very similar to that of electronics engineers, but, unlike electronics engineers, computer hardware engineers work exclusively with computers and computer-related equip­ ment. (See electrical and electronics engineers elsewhere in the Handbook.) In addition to design and development duties, com­ puter hardware engineers may supervise the manufacture and installation of computers and computer-related equipment. The rapid advances in computer technology are largely a result of the research, development, and design efforts of computer hard­ ware engineers. To keep up with technological advances, these engineers must continually update their knowledge. Employment The number of computer hardware engineers is relatively small compared with the number of computer-related workers who work with software or computer applications. Computer hard­ ware engineers held about 74,000 jobs in 2002. Almost 40 percent worked in computer and electronic product manufac­ turing. Almost one-quarter worked in professional, scientific, and technical services firms, many of which provided services to the computer industry. Many of the rest were employed in the telecommunications. Job Outlook Computer hardware engineers may face competition for jobs because the number of degrees granted in this field has increased  133  rapidly and because employment is expected to grow more slowly than average. Although the use of information technology con­ tinues to expand rapidly, the manufacture of computer hardware is expected to be adversely affected by intense foreign competi­ tion. Also, this industry is expected to continue to experience very high levels of productivity growth, which will even affect computer hardware engineers. The utilization of foreign com­ puter hardware engineering services also will serve to limit growth. In addition to job openings arising from employment growth, other vacancies will result from the need to replace workers who move into managerial positions, transfer to other occupations, or leave the labor force.  Earnings Median annual earnings of computer hardware engineers were $72,150 in 2002. The middle 50 percent earned between $56,490 and $91,730. The lowest 10 percent earned less than $46,190, and the highest 10 percent earned more than $114,880. Median annual earnings in the industries employing the largest num­ bers of computer hardware engineers in 2002 were: Semiconductor and other electronic component manufacturing $76,600 Computer and peripheral equipment manufacturing............... 75,300 Computer systems designs and related services....................... 74,320 According to the National Association of Colleges and Em­ ployers, starting salary offers in 2003 for bachelor’s degree can­ didates in computer engineering averaged $51,343 a year; master’s degree candidates averaged $64,200.  Sources of Additional Information For further information on careers, education, certification, pub­ lications, and conferences related to computer hardware engi­ neers, contact: >- IEEE Computer Society, 1730 Massachusetts Ave. NW., Washington, DC 20036-1992. Internet: http://www.computer.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Electrical and Electronics Engineers -— 1st (  The work of computer hardware engineers is similar to that of electronics engineers, but, unlike electronics engineers, computer hardware engineers work exclusively with computers and computer-related equipment.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  (0*NET 17-2071.00, 17-2072.00) Nature of the Work From the global positioning system that can continuously pro­ vide the location of a vehicle to giant electric power generators, electrical and electronics engineers are responsible for a wide range of technologies. Electrical and electronics engineers de­ sign, develop, test, and supervise the manufacture of electrical and electronic equipment. Some of this equipment includes broadcast and communications systems; electric motors, ma­ chinery controls, lighting, and wiring in buildings, automo­ biles, aircraft, and radar and navigation systems; and power gen­ erating, controlling, and transmission devices used by electric utilities. Many electrical and electronics engineers also work in areas closely related to computers. However, engineers whose work is related exclusively to computer hardware are consid­ ered computer hardware engineers, another engineering spe­ cialty covered elsewhere in the Handbook.  134  Occupational Outlook Handbook Earnings Median annual earnings of electrical engineers were $68,180 in 2002. The middle 50 percent earned between $54,550 and $84,670. The lowest 10 percent earned less than $44,780, and the highest 10 percent earned more than $100,980. Median annual earnings in the industries employing the largest num­ bers of electrical engineers in 2002 were: Scientific research and development services ............................ $77,410 Semiconductor and other electronic component manufacturing.................................................................... 72,670 Electric power generation, transmission, and distribution........ 71,640 Navigational, measuring, electromedical, and control instruments manufacturing................................................. 70,430 Architectural, engineering, and related services....................... 66,980  Electrical and electronics engineering graduates should have favorable employment opportunities. Electrical and electronics engineers specialize in different areas such as power generation, transmission, and distribution; communications; and electrical equipment manufacturing, or a specialty within one of these areas—industrial robot control systems or aviation electronics, for example. Electrical and elec­ tronics engineers design new products, write performance re­ quirements, and develop maintenance schedules. They also test equipment, solve operating problems, and estimate the time and cost of engineering projects. Employment Electrical and electronics engineers held about 292,000 jobs in 2002, making up the largest branch of engineering. Most jobs were in professional, scientific, and technical services firms, government agencies, and manufacturers of computer and elec­ tronic products and machinery. Wholesale trade, communica­ tions, and utilities firms accounted for most of the remaining jobs. Job Outlook Electrical and electronics engineering graduates should have favorable employment opportunities. The number of job open­ ings resulting from employment growth and the need to replace electrical engineers who transfer to other occupations or leave the labor force is expected to be in rough balance with the sup­ ply of graduates. Employment of electrical and electronics engineers is ex­ pected to increase more slowly than the average for all occupa­ tions through 2012. Although rising demand for electrical and electronic goods, including advanced communications equip­ ment, defense-related electronic equipment, and consumer elec­ tronics products should increase, foreign competition for elec­ tronic products and increasing use of engineering services performed in other countries will act to limit employment growth Job growth is expected to be fastest in services industries— particularly consulting firms that provide electronic engineer­ ing expertise. Continuing education is important for electrical and elec­ tronics engineers. Engineers who fail to keep up with the rapid changes in technology risk becoming more susceptible to layoffs or, at a minimum, more likely to be passed over for advancement.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Median annual earnings of electronics engineers, except com­ puter, were $69,930 in 2002. The middle 50 percent earned between $55,930 and $85,980. The lowest 10 percent earned less than $46,310, and the highest 10 percent earned more than $103,860. Median annual earnings in the industries employing the largest numbers of electronics engineers in 2002 were: Federal government................................................................ $78,830 Architectural, engineering, and related services...............................  Navigational, measuring, electromedical, and control instruments manufacturing................................................... Semiconductor and other electronic component manufacturing...................................................................... Wired telecommunications carriers............................................  72,850  70,950 70,800 62,670  According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in electrical/electronics and communications engineering re­ ceived starting offers averaging $49,794 a year; master’s degree candidates averaged $64,556; and Ph.D. candidates averaged $74,283. Sources of Additional Information Information on careers and employment, education, publica­ tions, and conferences related to electrical and electronics engi­ neers is available from: ► Institute of Electrical and Electronics Engineers, 445 Hoes Lane, Piscataway, NJ 08855-1331. Internet: http://www.ieee.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Environmental Engineers (0*NET 17-2081.00) Nature of the Work Using the principles of biology and chemistry, environmental engineers develop solutions to environmental problems. They are involved in water and air pollution control, recycling, waste disposal, and public health issues. Environmental engineers conduct hazardous-waste management studies in which they evaluate the significance of the hazard, offer analysis on treat­ ment and containment, and develop regulations to prevent mishaps. They design municipal water supply and industrial wastewater treatment systems. They conduct research on pro­ posed environmental projects, analyze scientific data, and per­ form quality control checks.  Professional and Related Occupations  mmi  135  engineering specialty rather than as an area that other engineer­ ing specialties, such as civil engineers, specialize in. More environmental engineers will be needed to comply with envi­ ronmental regulations and to develop methods of cleaning up existing hazards. A shift in emphasis toward preventing prob­ lems rather than controlling those that already exist, as well as increasing public health concerns, also will spur demand for environmental engineers. However, political factors determine the job outlook for environmental engineers more than that for other engineers. Looser environmental regulations would re­ duce job opportunities; stricter regulations would enhance op­ portunities. Even though employment of environmental engineers should be less affected by economic conditions than that of most other types of engineers, a significant economic downturn could re­ duce the emphasis on environmental protection, reducing em­ ployment opportunities. Environmental engineers need to keep abreast of a range of environmental issues to ensure their steady employment because their area of focus may change frequently— for example, from hazardous waste cleanup to the prevention of water pollution. Earnings Median annual earnings of environmental engineers were $61,410 in 2002. The middle 50 percent earned between $47,650 and $77,360. The lowest 10 percent earned less than $38,640, and the highest 10 percent earned more than $91,510. Median annual earnings in the industries employing the largest num­ bers of environmental engineers in 2002 were: Architectural, engineering, and related services.................... Management, scientific, and technical consulting services..... State government.................................................................  Many environmental engineers work as consultants, helping their clients to comply with regulations and to clean up hazardous sites.  Environmental engineers are concerned with local and world­ wide environmental issues. They study and attempt to mini­ mize the effects of acid rain, global warming, automobile emis­ sions, and ozone depletion. They also are involved in the protection of wildlife. Many environmental engineers work as consultants, helping their clients to comply with regulations and to clean up hazard­ ous sites.  $58,620 57,800 54,160  According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in environmental/environmental health engineering received starting offers averaging $44,702 a year. Sources of Additional Information Further information about environmental engineering careers, training, and certification can be obtained from: >• American Academy of Environmental Engineers, 130 Holiday Court, Suite 100, Annapolis, MD 21401. Internet: http://www.aaee.net See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Employment Environmental engineers held about 47,000 jobs in 2002. Al­ most half worked in professional, scientific, and technical ser­ vices and about 15,000 were employed in Federal, State, and local government agencies. Most of the rest worked in various manufacturing industries.  (0*NET 17-2111.01, 17-2111.02, 17-2111.03, 17-2112.00)  Job Outlook Environmental engineering graduates should have favorable job opportunities. Employment of environmental engineers is expected to increase much faster than the average for all occu­ pations through 2012. Much of the expected growth will be due to the emergence of this occupation as a widely recognized  Nature of the Work Industrial engineers determine the most effective ways to use the basic factors of production—people, machines, materials, information, and energy—to make a product or to provide a service. They are the bridge between management goals and operational performance. They are more concerned with in-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Industrial Engineers, Including Health and Safety  136  Occupational Outlook Handbook  353EK  Most industrial engineers work in manufacturing. creasing productivity through the management of people, meth­ ods of business organization, and technology than are engi­ neers in other specialties, who generally work more with prod­ ucts or processes. Although most industrial engineers work in manufacturing industries, they may also work in consulting ser­ vices, healthcare, and communications. To solve organizational, production, and related problems most efficiently, industrial engineers carefully study the prod­ uct and its requirements, use mathematical methods such as operations research to meet those requirements, and design manu­ facturing and information systems. They develop management control systems to aid in financial planning and cost analysis and design production planning and control systems to coordi­ nate activities and ensure product quality. They also design or improve systems for the physical distribution of goods and ser­ vices. Industrial engineers determine which plant location has the best combination of raw materials availability, transporta­ tion facilities, and costs. Industrial engineers use computers for simulations and to control various activities and devices, such as assembly lines and robots. They also develop wage and salary administration systems and job evaluation programs. Many industrial engineers move into management positions because the work is closely related. The work of health and safety engineers is similar to that of industrial engineers in that it deals with the entire production process. Health and safety engineers promote worksite or prod­ uct safety and health by applying knowledge of industrial pro­ cesses, as well as mechanical, chemical, and psychological prin­ ciples. They must be able to anticipate, recognize, and evaluate hazardous conditions as well as develop hazard control meth­ ods. They also must be familiar with the application of health and safety regulations. Employment Industrial engineers, including health and safety, held about 194,000 jobs in 2002. Six in 10 of these jobs were in manufac­ turing industries, and an additional 1 in 10 worked in profes­ sional, scientific, and technical services firms, many of whom provide consulting services to manufacturing firms. Because their skills can be used in almost any type of organization, in­ dustrial engineers are more widely distributed among industries than are other engineers.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Job Outlook Overall employment of industrial engineers, including health and safety, is projected to increase as fast as the average for all occupations through 2012. In addition, many openings will be created by the need to replace industrial engineers who transfer to other occupations or leave the labor force. Employment of industrial engineers is expected to increase as fast as the aver­ age while that of health and safety engineers is expected to grow more slowly than average. Because the main function of industrial and health and safety engineers is to make a higher quality product as efficiently and as safely as possible, their services should be in demand in the manufacturing sector as firms seek to reduce costs and increase productivity. The concern for health and safety within work environments should increase the need for health and safety engineers. Earnings Median annual earnings of industrial engineers were $62,150 in 2002. The middle 50 percent earned between $50,160 and $75,440. The lowest 10 percent earned less than $40,380, and the highest 10 percent earned more than $90,420. Median an­ nual earnings in the manufacturing industries employing the largest numbers of industrial engineers in 2002 were: Semiconductor and other electronic component manufacturing.................................................................. Navigational, measuring, electromedical, and control i nstruments manufacturing................................................ Architectural, engineering, and related services..................... Aerospace products and parts manufacturing....................... Motor vehicle parts manufacturing........................................  $67,460 65,470 64,020 63,630 62,610  Median annual earnings of health and safety engineers were $58,010 in 2002. The middle 50 percent earned between $46,580 and $71,980. The lowest 10 percent earned less than $37,230, and the highest 10 percent earned more than $87,250. According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in industrial/manufacturing engineering received starting of­ fers averaging about $47,051 a year and master’s degree candi­ dates averaged $54,565 a year. Sources of Additional Information For further information about industrial engineering careers, education, and training, contact: >- Institute of Industrial Engineers, 3577 Parkway Lane, Suite 200, Norcross, GA 30092. Internet: http://www.iienet.org Information on careers, education, accreditation and certifi­ cation, and salaries of safety engineers is available from: > American Society of Safety Engineers, 1800 E Oakton St., Des Plaines, IL 60018. Internet: http://www.asse.org Information on certification, accreditation, careers, and safetyrelated degree programs for safety professionals, including safety engineers, is available from: >- Board of Certified Safety Professionals, 208 Burwash Ave., Savoy, II 61874. Internet: http://www.bcsp.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Professional and Related Occupations  Materials Engineers (0*NET 17-2131.00) Nature of the Work Materials engineers are involved in the extraction, develop­ ment, processing, and testing of the materials used to create a diversity of products, from computer chips and television screens to golf clubs and snow skis. They work with metals, ceramics, plastics, semiconductors, and combinations of materials called composites to create new materials that meet certain mechani­ cal, electrical, and chemical requirements. They also are in­ volved in selecting materials for new applications. There are numerous new developments within materials en­ gineering that make it possible to manipulate and use materials in various ways. For example, materials engineers have devel­ oped the ability to create and then study materials at an atomic level using advanced processes to replicate the characteristics of materials and their components with computers. Most metallurgical engineers work in 1 of the 3 main branches of metallurgy—extractive or chemical, physical, and process. Extractive metallurgists are concerned with removing metals from ores and refining and alloying them to produce suitable inputs for a number of industrial processes. Physical metallur­ gists study the nature, structure, and physical properties of met­ als and their alloys to find the best methods of processing basic materials into final products. Process metallurgists develop and improve metalworking processes such as casting, forging, roll­ ing, and drawing. Most materials engineers specialize in a par­ ticular material. For example, metallurgical engineers special­ ize in metals, while ceramic engineers develop ceramic materials and the processes for making ceramic materials into useful prod­ ucts. Ceramics include all nonmetallic, inorganic materials that generally require high temperatures in their processing. Ce­ ramic engineers work on products as diverse as glassware, auto­ mobile and aircraft engine components, fiberoptic communica­ tion lines, tile, and electric insulators. Employment Materials engineers held about 24,000 jobs in 2002. Because materials are building blocks for other goods, materials engi­  137  neers are widely distributed among manufacturing industries. In fact, 68 percent of materials engineers worked in manufactur­ ing industries, primarily computer and electronic products, trans­ portation equipment, fabricated metal products, primary metal production, and machinery manufacturing. They also worked in services industries such as professional, scientific, and tech­ nical services. Most remaining materials engineers worked for Federal and State governments. Job Outlook Employment of materials engineers is expected to grow more slowly than the average for all occupations through 2012. Al­ though many of the manufacturing industries in which materi­ als engineers are concentrated are expected to experience de­ clines in employment, more materials engineers will be needed to develop new materials for electronics, biotechnology, and plastics products. As manufacturing firms contract for their materials engineering needs, employment growth is expected in professional, scientific, and technical services industries. In addition to those arising from employment growth, job open­ ings will result from the need to replace materials engineers who transfer to other occupations or leave the labor force. Earnings Median annual earnings of materials engineers were $62,590 in 2002. The middle 50 percent earned between $49,810 and $77,500. The lowest 10 percent earned less than $39,360, and the highest 10 percent earned more than $92,690. According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in materials engineering received starting offers averaging $44,680 a year. Sources of Additional Information For information on careers, education, accreditation, and other topics related to materials engineers, contact: >- The Minerals, Metals, & Materials Society, 184 Thorn Hill Rd., Warrendale, PA 15086. Internet: http://www.tms.org >■ ASM International, 9639 Kinsman Rd., Materials Park, OH 44073­ 0002. Internet: http://www.asm-intl.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Mechanical Engineers (0*NET 17-2141.00)  Because materials are building blocks for other goods, materials engineers are widely distributed among manufacturing industries.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Mechanical engineers research, develop, design, manufacture, and test tools, engines, machines, and other mechanical devices. They work on power-producing machines such as electric gen­ erators, internal combustion engines, and steam and gas tur­ bines. They also develop power-using machines such as refrig­ eration and air-conditioning equipment, machine tools, material handling systems, elevators and escalators, industrial produc­ tion equipment, and robots used in manufacturing. Mechanical engineers also design tools that other engineers need for their work. The field of nanotechnology, which involves the creation of high-performance materials and components by integrating atoms and molecules, is introducing entirely new principles to the design process.  138  Occupational Outlook Handbook Earnings Median annual earnings of mechanical engineers were $62,880 in 2002. The middle 50 percent earned between $50,800 and $78,040. The lowest 10 percent earned less than $41,490, and the highest 10 percent earned more than $93,430. Median an­ nual earnings in the industries employing the largest numbers of mechanical engineers in 2002 were: Federal government.............................................................. $72,500 Architectural, engineering, and related services........................ 65,610 Navigational, measuring, electromedical, and control instruments manufacturing.................................................. 65,430 Aerospace products and parts manufacturing........................... 65,160 Other general puropse machinery manufacturing.................... 55,850  Some mechanical engineers specialize in developing new energy systems. Computers assist mechanical engineers by accurately and efficiently performing computations, and by permitting the modeling and simulation of new designs as well as facilitating changes to existing designs. Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) are used for design data processing and for turning the design into a product. Mechanical engineers work in many industries, and their work varies by industry and function. Some specialize in en­ ergy systems; applied mechanics; automotive design; manufac­ turing; materials; plant engineering and maintenance; pressure vessels and piping; and heating, refrigeration, and air-condi­ tioning systems. Mechanical engineering is one of the broadest engineering disciplines. Mechanical engineers may work in production operations in manufacturing or agriculture, mainte­ nance, or technical sales; many are administrators or managers.  Employment Mechanical engineers held about 215,000 jobs in 2002. More than half of the jobs were in manufacturing—mostly in machin­ ery, transportation equipment, computer and electronic prod­ ucts, and fabricated metal products manufacturing industries. Architectural, engineering, and related services, and the Federal Government provided many of the remaining jobs.  Job Outlook Employment of mechanical engineers is projected to grow more slowly than the average for all occupations though 2012. Al­ though overall employment in manufacturing industries—where employment of mechanical engineers is concentrated—is ex­ pected to decrease slightly, employment of mechanical engi­ neers in manufacturing should increase more rapidly as the de­ mand for improved machinery and machine tools grows and as industrial machinery and processes become increasingly com­ plex. Also, emerging technologies in biotechnology, materials science, and nanotechnology will create new job opportunities for mechanical engineers. Additional opportunities for mechani­ cal engineers will arise because a degree in mechanical engi­ neering often can be applied in other engineering specialties. In addition to job openings arising from growth, many open­ ings should result from the need to replace workers who transfer to other occupations or leave the labor force.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in mechanical engineering received starting offers averaging $48,585 a year, master’s degree candidates had offers averaging $54,565, and Ph.D. candidates were initially offered $69,904.  Sources of Additional Information General information about mechanical engineers as well as in­ formation on careers, education, and training is available from: ► The American Society of Mechanical Engineers, 3 Park Ave., New York, NY 10016. Internet: http://www.asme.org Information about heating, refrigeration, and air-condition­ ing engineering, a mechanical engineering specialty, is avail­ able from: >- American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Inc., 1791 Tullie Circle NE., Atlanta, GA 30329. Internet: http://www.ashrae.org  Information about automotive engineering, a mechanical en­ gineering specialty, is available from: >- Society of Automotive Engineers, 400 Commonwealth Dr., Warrendale, PA 15096-0001. Internet: http://www.sae.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Mining and Geological Engineers, Including Mining Safety Engineers (0*NET 17-2151.00) Nature of the Work Mining and geological engineers find, extract, and prepare coal, metals, and minerals for use by manufacturing industries and utilities. They design open pit and underground mines, often using computers; supervise the construction of mine shafts and tunnels in underground operations; and devise methods for trans­ porting minerals to processing plants. Mining engineers are responsible for the safe, economical, and environmentally sound operation of mines. Some mining engineers work with geolo­ gists and metallurgical engineers to locate and appraise new ore deposits. Others develop new mining equipment or direct min­ eral processing operations to separate minerals from the dirt, rock, and other materials with which they are mixed. Mining engineers frequently specialize in the mining of one mineral or metal, such as coal or gold. With increased emphasis on protect­ ing the environment, many mining engineers work to solve prob­ lems related to land reclamation and water and air pollution.  Professional and Related Occupations  139  According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in mining and mineral engineering (including geological) re­ ceived starting offers averaging $44,326 a year. Sources of Additional Information For more information on careers, education, accreditation, and related topics for mining engineers, contact: ► The Society for Mining, Metallurgy, and Exploration, Inc., 8307 Shaffer Parkway, P.O. Box 277002, Littleton, CO 80127. Internet: http ://w ww.smenet.org  See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  -T1 Mining engineers frequently specialize in the mining of one mineral or metal, such as coal or gold. Mining safety engineers use their knowledge of mine design and practices to ensure the safety of workers and to comply with State and Federal safety regulations. They inspect walls and roof surfaces, test air samples, and examine mining equipment for compliance with safety practices. Employment Mining and geological engineers, including mining safety en­ gineers, held about 5,200 jobs in 2002. While about 4 out of 10 mining engineers worked in the mining industry, over one-third worked in professional, scientific, and technical services firms, mostly providing consulting and other services to the mining industry. Most of the rest worked in State or Federal government. Mining engineers often are employed at the location of natu­ ral deposits, often near small communities, and sometimes out­ side the United States. Those in research and development, management, consulting, or sales, however, often are located in metropolitan areas. Job Outlook Despite a projected decline in employment, very good employ­ ment opportunities are expected in this small occupation. A significant number of mining engineers currently employed are approaching retirement age, which should create some job open­ ings over the 2002-12 period. In addition, relatively few schools offer mining engineering programs, and the small number of graduates is not expected to increase. Favorable job opportunities also may be available world­ wide as mining operations around the world recruit graduates of U.S. mining engineering programs. As a result, some graduates should expect to travel frequently, or even live abroad. Employment of mining and geological engineers, including mining safety engineers, is projected to decline through 2012. Most of the industries in which mining engineers are concen­ trated—such as coal, metal, and copper mining—are expected to experience declines in employment. Earnings Median annual earnings of mining and geological engineers, including mining safety engineers, were $61,770 in 2002. The middle 50 percent earned between $48,250 and $77,160. The lowest 10 percent earned less than $36,720, and the highest 10 percent earned more than $93,660.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nuclear Engineers (0*NET 17-2161.00) Nature of the Work Nuclear engineers research and develop the processes, instru­ ments, and systems used to derive benefits from nuclear energy and radiation. They design, develop, monitor, and operate nuclear plants used to generate power. They may work on the nuclear fuel cycle—the production, handling, and use of nuclear fuel and the safe disposal of waste produced by the generation of nuclear energy—or on the production of fusion energy. Some specialize in the development of nuclear power sources for spacecraft; others find industrial and medical uses for radioac­ tive materials, such as equipment to diagnose and treat medi­ cal problems. Employment Nuclear engineers held about 16,000 jobs in 2002. Almost half were employed in utilities, one-quarter in professional, scien­ tific, and technical services firms, and 14 percent in the Federal Government. Many Federally employed nuclear engineers were civilian employees of the U.S. Navy, and most of the rest worked for the U.S. Department of Energy. Job Outlook Good opportunities should exist for nuclear engineers because the small number of nuclear engineering graduates is likely to  ■*»  Almost half of all nuclear engineers work in utilities.  140  Occupational Outlook Handbook  be in rough balance with the number of job openings. Because this is a small occupation, projected job growth will generate few openings; consequently, most openings will result from the need to replace nuclear engineers who transfer to other occupa­ tions or leave the labor force. Little or no growth in employment of nuclear engineers is expected through 2012. Due to public concerns over the cost and safety of nuclear power, no commercial nuclear powerplants have been built in the United States for many years. Neverthe­ less, nuclear engineers will be needed to operate existing plants. In addition, nuclear engineers may be needed to research and develop future nuclear power sources. They also will be needed to work in defense-related areas, to develop nuclear medical technology, and to improve and enforce waste management and safety standards. ■ - -x_-  Earnings Median annual earnings of nuclear engineers were $81,350 in 2002. The middle 50 percent earned between $67,970 and $92,930. The lowest 10 percent earned less than $58,350, and the highest 10 percent earned more than $111,260. In the Fed­ eral Government, nuclear engineers in supervisory, nonsupervisory, and management positions earned an average of $73,769 a year in 2003. According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in nuclear engineering received starting offers averaging $50,104 a year. Sources of Additional Information Information on careers and related topics for nuclear engineers is available from: ► American Nuclear Society, 555 North Kensington Ave., LaGrange Park, IL 60526. Internet: http://www.ans.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Petroleum Engineers (0*NET 17-2171.00)  Nature of the Work Petroleum engineers search the world for reservoirs containing oil or natural gas. Once these resources are discovered, petro­ leum engineers work with geologists and other specialists to understand the geologic formation and properties of the rock containing the reservoir, determine the drilling methods to be used, and monitor drilling and production operations. They design equipment and processes to achieve the maximum prof­ itable recovery of oil and gas. Petroleum engineers rely heavily on computer models to simulate reservoir performance using different recovery techniques. They also use computer models for simulations of the effects of various drilling options. Because only a small proportion of oil and gas in a reservoir will flow out under natural forces, petroleum engineers develop and use various enhanced recovery methods. These include injecting water, chemicals, gases, or steam into an oil reservoir to force out more of the oil, and computer-controlled drilling or fracturing to connect a larger area of a reservoir to a single well. Because even the best techniques in use today recover only a  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  4  ■prop™'**'  Even though employment is expected to decline, favorable opportunities are expected for petroleum engineers because the number of job openings is likely to exceed the relatively small number of graduates. portion of the oil and gas in a reservoir, petroleum engineers research and develop technology and methods to increase re­ covery and lower the cost of drilling and production operations. Employment Petroleum engineers held about 14,000 jobs in 2002, mostly in oil and gas extraction, professional, scientific and technical ser­ vices, and petroleum refining. Employers include major oil companies and hundreds of smaller, independent oil explora­ tion, production, and service companies. Most petroleum engineers work where oil and gas are found. Large numbers are employed in Texas, Louisiana, Oklahoma, Alaska, and California, including offshore sites. Many Ameri­ can petroleum engineers also work overseas in oil-producing countries. Job Outlook Employment of petroleum engineers is expected to decline through 2012 because most of the potential petroleum-produc­ ing areas in the United States already have been explored. Even so, favorable opportunities are expected for petroleum engi­ neers because the number of job openings is likely to exceed the relatively small number of graduates. All job openings should  Professional and Related Occupations result from the need to replace petroleum engineers who transfer to other occupations or leave the labor force. Petroleum engineers work around the world and, in fact, the best employment opportunities may be in other countries. Many foreign employers seek U.S.-trained petroleum engineers, and many U.S. employers maintain overseas branches where petro­ leum engineers work. Earnings Median annual earnings of petroleum engineers were $83,370 in 2002. The middle 50 percent earned between $63,390 and $105,920. The lowest 10 percent earned less than $49,010, and the highest 10 percent earned more than $127,950.  141  According to a 2003 salary survey by the National Associa­ tion of Colleges and Employers, bachelor’s degree candidates in petroleum engineering received starting offers averaging $55,987 year. Sources of Additional Information For further information on careers, education, and salaries for petroleum engineers, contact: >• Society of Petroleum Engineers, P.O. Box 833836, Richardson, TX 75083-3836. Internet: http://www.spe.org See the introduction to the section on engineers for informa­ tion on working conditions, training requirements, and other sources of additional information.  Drafters and Engineering Technicians Drafters  __  (0* *NET 17-3011.01, 17-3011.02, 17-3012.01, 17-3012.02, 17­ 3013.00) Significant Points  •  •  •  The type and quality of postsecondary drafting programs vary considerably; prospective students should be careful in selecting a program. Opportunities should be best for individuals with at least 2 years of postsecondary training in drafting and considerable skill and experience using computer-aided design and drafting (CADD) systems. Demand for particular drafting specialties varies geographically, depending on the needs of local industry.  Nature of the Work Drafters prepare technical drawings and plans used by produc­ tion and construction workers to build everything from manu­ factured products, such as toys, toasters, industrial machinery, and spacecraft, to structures, such as houses, office buildings, and oil and gas pipelines. Their drawings provide visual guide­ lines, show the technical details of the products and structures, and specify dimensions, materials, and procedures. Drafters fill in technical details, using drawings, rough sketches, specifica­ tions, codes, and calculations previously made by engineers, surveyors, architects, or scientists. For example, they use their knowledge of standardized building techniques to draw in the details of a structure. Some drafters use their knowledge of engineering and manufacturing theory and standards to draw the parts of a machine in order to determine design elements, such as the numbers and kinds of fasteners needed to assemble the machine. Drafters use technical handbooks, tables, calcula­ tors, and computers to complete their work. Traditionally, drafters sat at drawing boards and used pen­ cils, pens, compasses, protractors, triangles, and other drafting devices to prepare a drawing manually. Most drafters now use computer-aided design and drafting (CADD) systems to prepare drawings. Consequently, some drafters are referred to as CADD operators. CADD systems employ computer workstations to create a drawing on a video screen. The drawings are stored  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  electronically to facilitate revisions and create duplications eas­ ily. These systems also permit drafters to quickly prepare varia­ tions of a design. Although drafters use CADD extensively, it is only a tool: Persons who produce technical drawings with CADD still function as drafters and need the knowledge of traditional drafters, in addition to CADD skills. Despite the near-universal use of CADD systems, manual drafting and sketching still is used in certain applications. Drafting work has many specialties, and titles may denote a particular discipline of design or drafting. Aeronautical drafters prepare engineering drawings detail­ ing plans and specifications used in the manufacture of aircraft, missiles, and related parts. Architectural drafters draw architectural and structural fea­ tures of buildings and other structures. These workers may spe­ cialize in a type of structure, such as residential or commercial, or in a kind of material used, such as reinforced concrete, ma­ sonry, steel, or timber. Civil drafters prepare drawings and topographical and relief maps used in major construction or civil engineering projects, such as highways, bridges, pipelines, flood control projects, and water and sewage systems. Electrical drafters prepare wiring and layout diagrams used by workers who erect, install, and repair electrical equipment  Most drafters now use computer-aided design drafting (CADD) systems to prepare drawings.  142  Occupational Outlook Handbook  and wiring in communication centers, powerplants, electrical distribution systems, and buildings. Electronics drafters draw wiring diagrams, circuit board as­ sembly diagrams, schematics, and layout drawings used in the manufacture, installation, and repair of electronic devices and components. Mechanical drafters prepare detail and assembly drawings of a wide variety of machinery and mechanical devices, indicat­ ing dimensions, fastening methods, and other requirements. Process piping or pipeline drafters prepare drawings used in the layout, construction, and operation of oil and gas fields, refineries, chemical plants, and process piping systems. Working Conditions Most drafters work a standard 40-hour week; only a small num­ ber work part time. Drafters usually work in comfortable offices furnished to accommodate their tasks. They may sit at adjust­ able drawing boards or drafting tables when doing manual draw­ ings, although most drafters work at computer terminals much of the time. Because they spend long periods in front of com­ puter terminals doing detailed work, drafters may be suscep­ tible to eyestrain, back discomfort, and hand and wrist problems. Employment Drafters held about 216,000 jobs in 2002. Architectural and civil drafters held about half of all jobs for drafters, mechanical drafters held about a third of all jobs, and the rest of all jobs were held by electrical and electronics drafters. Almost half of all jobs for drafters were in architectural, engi­ neering, and related services firms that design construction projects or do other engineering work on a contract basis for other industries. More than a quarter of jobs were in manufac­ turing industries, such as machinery manufacturing, including metalworking and other general machinery; fabricated metal products manufacturing, including architectural and structural metals; computer and electronic products manufacturing, in­ cluding navigational, measuring, electromedical, and control instruments; and transportation equipment manufacturing, in­ cluding aerospace products and parts manufacturing, as well as ship and boat building. Most of the rest were employed in construction, government, wholesale trade, utilities, and em­ ployment services. Only a small number were self-employed in 2002. Training, Other Qualifications, and Advancement Employers prefer applicants who have completed postsecondary school training in drafting, which is offered by technical insti­ tutes, community colleges, and some 4-year colleges and uni­ versities. Employers are most interested in applicants with welldeveloped drafting and mechanical-drawing skills; knowledge of drafting standards, mathematics, science, and engineering technology; and a solid background in computer-aided design and drafting techniques. In addition, communication and prob­ lem-solving skills are important. Training and course work differ somewhat within the draft­ ing specialties. The initial training for each specialty is similar. All incorporate math and communication skills, for example, but course work relating to the specialty varies. In an electron­ ics drafting program, for example, students learn how to depict electronic components and circuits in drawings. Many types of publicly and privately operated schools pro­ vide some form of training in drafting. The kind and quality of programs vary considerably; therefore, prospective students  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  should be careful in selecting a program. They should contact prospective employers regarding their preferences and ask schools to provide information about the kinds of jobs that are obtained by the school’s graduates, the types and conditions of the instructional facilities and equipment, and the faculty’s quali­ fications. Technical institutes offer intensive technical training, but less general education than do junior and community colleges. Certificates or diplomas based on the completion of a certain number of course hours may be awarded. Many technical insti­ tutes offer 2-year associate degree programs, which are similar to, or part of, the programs offered by community colleges or State university systems. Their programs vary considerably in both length and type of courses offered. Some area vocationaltechnical schools are postsecondary public institutions that serve local students and emphasize the type of training preferred by local employers. Many offer introductory drafting instruction. Most require a high school diploma or its equivalent for admis­ sion. Other technical institutes are run by private, often forprofit, organizations, sometimes called proprietary schools. Community colleges offer curricula similar to those in tech­ nical institutes, but include more courses on theory and liberal arts. Often, there is little or no difference between technical institute and community college programs. However, courses taken at community colleges are more likely than those given at technical institutes to be accepted for credit at 4-year colleges. After completing a 2-year associate degree program, graduates may obtain jobs as drafters or continue their education in a related field at 4-year colleges. Most 4-year colleges usually do not offer training in drafting, but college courses in engineer­ ing, architecture, and mathematics are useful for obtaining a job as a drafter. Technical training obtained in the Armed Forces also can be applied in civilian drafting jobs. Some additional training may be necessary, depending on the technical area or military specialty. The American Design Drafting Association (ADDA) has es­ tablished a certification program for drafters. Although em­ ployers usually do not require drafters to be certified, certifica­ tion demonstrates an understanding of nationally recognized practices and standards of knowledge. Individuals who wish to become certified must pass the Drafter Certification Test, which is administered periodically at ADDA-authorized sites. Appli­ cants are tested on their knowledge and understanding of basic drafting concepts, such as geometric construction, working draw­ ings, and architectural terms and standards. Individuals planning careers in drafting should take courses in mathematics, science, computer technology, design, and com­ puter graphics, as well as any high school drafting courses avail­ able. Mechanical ability and visual aptitude also are important. Prospective drafters should be able to draw well and perform detailed work accurately and neatly. Artistic ability is helpful in some specialized fields, as is knowledge of manufacturing and construction methods. In addition, prospective drafters should have good interpersonal skills, because they work closely with engineers, surveyors, architects, other professionals, and, sometimes, customers. Entry-level or junior drafters usually do routine work under close supervision. After gaining experience, they may become intermediate-level drafters and progress to more difficult work with less supervision. At the intermediate level, they may need to exercise more judgment and perform calculations when pre­ paring and modifying drawings. Drafters may eventually advance  Professional and Related Occupations to senior drafter, designer, or supervisor. Many employers pay for continuing education, and, with appropriate college degrees, drafters may go on to become engineering technicians, engi­ neers, or architects. Job Outlook Employment of drafters is expected to grow more slowly than the average for all occupations through 2012. Industrial growth and increasingly complex design problems associated with new products and manufacturing processes will increase the demand for drafting services. Further, drafters are beginning to break out of the traditional drafting role and increasingly do work tradi­ tionally performed by engineers and architects, thus also in­ creasing demand for drafters. However, the greater use of CADD equipment by drafters, as well as by architects and engineers, should limit demand for lesser skilled drafters, resulting in slower-than-average overall employment growth. Most job openings are expected to arise from the need to replace drafters who transfer to other occupations, leave the labor force, or re­ tire. Opportunities should be best for individuals with at least 2 years of postsecondary training in a drafting program that pro­ vides strong technical skills, as well as considerable experience with CADD systems. CADD has increased the complexity of drafting applications while enhancing the productivity of draft­ ers. It also has enhanced the nature of drafting by creating more possibilities for design and drafting. As technology continues to advance, employers will look for drafters with a strong back­ ground in fundamental drafting principles, a higher level of technical sophistication, and an ability to apply their knowl­ edge to a broader range of responsibilities. Demand for particular drafting specialties varies throughout the country because employment usually is contingent upon the needs of local industry. Employment of drafters remains highly concentrated in industries that are sensitive to cyclical changes in the economy, such as manufacturing and architec­ tural and engineering services. During recessions, drafters may be laid off. However, a growing number of drafters should con­ tinue to find employment on a temporary or contract basis as more companies turn to the employment services industry to meet their changing needs. Earnings Earnings for drafters vary by specialty and level of responsibil­ ity. Median annual earnings of architectural and civil drafters were $37,330 in 2002. The middle 50 percent earned between $30,170 and $45,500. The lowest 10 percent earned less than $24,570, and the highest 10 percent earned more than $56,260. Median annual earnings for architectural and civil drafters in architectural, engineering, and related services were $36,780. Median annual earnings of mechanical drafters were $40,730 in 2002. The middle 50 percent earned between $32,100 and $51,950. The lowest 10 percent earned less than $25,950, and the highest 10 percent earned more than $64,780. Median an­ nual earnings for mechanical drafters in architectural, engineer­ ing, and related services were $41,170. Median annual earnings of electrical and electronics draft­ ers were $41,090 in 2002. The middle 50 percent earned be­ tween $32,060 and $53,440. The lowest 10 percent earned less than $25,710, and the highest 10 percent earned more than $68,000. In architectural, engineering, and related services, median annual earnings for electrical and electronics drafters were $39,760.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  143  Related Occupations Other workers who prepare or analyze detailed drawings and make precise calculations and measurements include architects, except landscape and naval; landscape architects; designers; engineers; engineering technicians; science technicians; and surveyors, cartographers, photogrammetrists, and surveying tech­ nicians. Sources of Additional Information Information on schools offering programs in drafting and re­ lated fields is available from: >- Accrediting Commission of Career Schools and Colleges of Technol­ ogy, 2101 Wilson Blvd., Suite 302, Arlington, VA 22201. Internet: http://www.accsct.org  Information about certification is available from: > American Design Drafting Association, 105 E. Main St., Newbem, TN 38059. Internet: http://www.adda.org  Engineering Technicians (0*NET 17-3021.00, 17-3022.00, 17-3023.01, 17-3023.02, 17­ 3023.03, 17-3024.00, 17-3025.00, 17-3026.00, 17-3027.00) Significant Points  • •  •  Electrical and electronic engineering technicians make up 42 percent of all engineering technicians. Because the type and quality of training programs vary considerably, prospective students should carefully investigate training programs before enrolling. Opportunities will be best for individuals with an associate degree or extensive job training in engineering technology.  Nature of the Work Engineering technicians use the principles and theories of sci­ ence, engineering, and mathematics to solve technical prob­ lems in research and development, manufacturing, sales, con­ struction, inspection, and maintenance. Their work is more limited in scope and more practically oriented than that of sci­ entists and engineers. Many engineering technicians assist en­ gineers and scientists, especially in research and development. Others work in quality control—inspecting products and pro­ cesses, conducting tests, or collecting data. In manufacturing, they may assist in product design, development, or production. Although many workers who repair or maintain various types of electrical, electronic, or mechanical equipment are called tech­ nicians, these workers are covered in the Handbook section on installation, maintenance, and repair occupations. Engineering technicians who work in research and develop­ ment build or set up equipment, prepare and conduct experi­ ments, collect data, calculate or record results, and help engi­ neers or scientists in other ways, such as making prototype versions of newly designed equipment. They also assist in de­ sign work, often using computer-aided design (CAD) equip­ ment. Most engineering technicians specialize in certain areas, learn­ ing skills and working in the same disciplines as engineers. Occupational titles, therefore, tend to reflect those of engineers. Aerospace engineering and operations technicians install, construct, maintain, and test systems used to test, launch, or track aircraft and space vehicles. They may calibrate test equip­  144  Occupational Outlook Handbook  ment and determine causes of equipment malfunctions. Using computer and communications systems, aerospace engineering and operations technicians often record and interpret test data. Chemical engineering technicians usually are employed in industries producing pharmaceuticals, chemicals, and petroleum products, among others. They work in laboratories as well as processing plants. They help to develop new chemical prod­ ucts and processes, test processing equipment and instrumenta­ tion, gather data, and monitor quality. Civil engineering technicians help civil engineers to plan and build highways, buildings, bridges, dams, wastewater treat­ ment systems, and other structures, and to do related research. Some estimate construction costs and specify materials to be used, and some may even prepare drawings or perform land­ surveying duties. Others may set up and monitor instruments used to study traffic conditions. (Cost estimators; drafters; and surveyors, cartographers, photogrammetrists, and surveying tech­ nicians are covered elsewhere in the Handbook.) Electrical and electronics engineering technicians help to design, develop, test, and manufacture electrical and electronic equipment such as communication equipment, radar, industrial and medical measuring or control devices, navigational equip­ ment, and computers. They may work in product evaluation and testing, using measuring and diagnostic devices to adjust, test, and repair equipment. (Workers whose jobs are limited to repairing electrical and electronic equipment, who often are referred to as electronics technicians, are included with electri­ cal and electronics installers and repairers elsewhere in the Hand­ book.) Electrical and electronic engineering technology also is ap­ plied to a wide variety of systems such as communication and process controls. Electromechanical engineering technicians combine fundamental principles of mechanical engineering tech­ nology with knowledge of electrical and electronic circuits to design, develop, test, and manufacture electrical and computercontrolled mechanical systems. Environmental engineering technicians work closely with environmental engineers and scientists in developing methods and devices used in the prevention, control, or correction of environmental hazards. They inspect and maintain equipment affecting air pollution and recycling. Some inspect water and wastewater treatment systems to ensure that pollution control requirements are met.  I  gggp  "  Many engineering technicians assist engineers and scientists, especially in research and development.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Industrial engineering technicians study the efficient use of personnel, materials, and machines in factories, stores, repair shops, and offices. They prepare layouts of machinery and equip­ ment, plan the flow of work, make statistical studies, and ana­ lyze production costs. Mechanical engineering technicians help engineers to de­ sign, develop, test, and manufacture industrial machinery, consumer products, and other equipment. They may assist in product tests—by setting up instrumentation for auto crash tests, for example. They may make sketches and rough layouts, record data, make computations, analyze results, and write reports. When planning production, mechanical engineering technicians prepare layouts and drawings of the assembly process and of parts to be manufactured. They estimate labor costs, equipment life, and plant space. Some test and inspect machines and equip­ ment or work with engineers to eliminate production problems.  Working Conditions Most engineering technicians work at least 40 hours a week in laboratories, offices, or manufacturing or industrial plants, or on construction sites. Some may be exposed to hazards from equip­ ment, chemicals, or toxic materials.  Employment Engineering technicians held 478,000 jobs in 2002. 204,000 of these were electrical and electronics engineering technicians, as indicated by the following tabulation. Electrical and electronic engineering technicians.................. Civil engineering technicians................................................ Industrial engineering technicians......................................... Mechanical engineering technicians...................................... Electro-mechanical technicians............................................. Environmental engineering technicians................................ Aerospace engineering and operations technicians................  204,000 92,000 62,000 55,000 31,000 19,000 15,000  About 39 percent of all engineering technicians worked in manufacturing, mainly in the computer and electronic equip­ ment, transportation equipment, and machinery manufactur­ ing industries. Another 20 percent worked in professional, scientific, and technical service industries, mostly in engineer­ ing or business services companies that do engineering work on contract for government, manufacturing firms, or other organizations. In 2002, the Federal Government employed 11,000 engi­ neering technicians. State governments employed 34,000, and local governments employed 24,000.  Training, Other Qualifications, and Advancement Although it may be possible to qualify for certain engineering technician jobs without formal training, most employers prefer to hire someone with at least a 2-year associate degree in engi­ neering technology. Training is available at technical insti­ tutes, community colleges, extension divisions of colleges and universities, and public and private vocational-technical schools, and in the Armed Forces. Persons with college courses in sci­ ence, engineering, and mathematics may qualify for some posi­ tions but may need additional specialized training and experi­ ence. Although employers usually do not require engineering technicians to be certified, such certification may provide jobseekers a competitive advantage.  Professional and Related Occupations Prospective engineering technicians should take as many high school science and math courses as possible to prepare for postsecondary programs in engineering technology. Most 2-year associate degree programs accredited by the Technology Accreditation Commission of the Accreditation Board for Engi­ neering and Technology (TAC/ABET) require, at a minimum, college algebra and trigonometry, and one or two basic science courses. Depending on the specialty, more math or science may be required. The type of technical courses required also depends on the specialty. For example, prospective mechanical engineering technicians may take courses in fluid mechanics, thermody­ namics, and mechanical design; electrical engineering techni­ cians may need classes in electric circuits, microprocessors, and digital electronics; and those preparing to work in environmen­ tal engineering technology need courses in environmental regu­ lations and safe handling of hazardous materials. Because many engineering technicians assist in design work, creativity is desirable. Because these workers often are part of a team of engineers and other technicians, good communica­ tion skills and the ability to work well with others also are important. Engineering technicians usually begin by performing rou­ tine duties under the close supervision of an experienced tech­ nician, technologist, engineer, or scientist. As they gain experi­ ence, they are given more difficult assignments with only general supervision. Some engineering technicians eventually become supervisors. Many publicly and privately operated schools provide tech­ nical training; the type and quality of training varies consider­ ably. Therefore, prospective students should be careful in selecting a program. They should contact prospective employ­ ers regarding their preferences and ask schools to provide information about the kinds of jobs obtained by graduates, instructional facilities and equipment, and faculty qualifica­ tions. Graduates of ABET-accredited programs usually are rec­ ognized to have achieved an acceptable level of competence in the mathematics, science, and technical courses required for this occupation. Technical institutes offer intensive technical training through application and practice, but less theory and general education than do community colleges. Many offer 2-year associate de­ gree programs, and are similar to or part of a community college or State university system. Other technical institutes are run by private, often for-profit organizations, sometimes called propri­ etary schools. Their programs vary considerably in length and types of courses offered, although some are 2-year associate degree programs. Community colleges offer curriculums that are similar to those in technical institutes, but that may include more theory and liberal arts. There may be little or no difference between programs at technical institutes and community colleges, as both offer associate degrees. After completing the 2-year pro­ gram, some graduates get jobs as engineering technicians, while others continue their education at 4-year colleges. However, there is a difference between an associate degree in pre­ engineering and one in engineering technology. Students who enroll in a 2-year pre-engineering program may find it very difficult to find work as an engineering technician should they decide not to enter a 4-year engineering program, because pre­ engineering programs usually focus less on hands-on applica­ tions and more on academic preparatory work. Conversely,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  145  graduates of 2-year engineering technology programs may not receive credit for some of the courses they have taken if they choose to transfer to a 4-year engineering program. Colleges with these 4-year programs usually do not offer engineering technician training, but college courses in science, engineer­ ing, and mathematics are useful for obtaining a job as an engi­ neering technician. Many 4-year colleges offer bachelor’s degrees in engineering technology, but graduates of these programs often are hired to work as technologists or applied engineers, not technicians. Area vocational-technical schools, another source of techni­ cal training, include postsecondary public institutions that serve local students and emphasize training needed by local employ­ ers. Most require a high school diploma or its equivalent for admission. Other training in technical areas may be obtained in the Armed Forces. Many military technical training programs are highly regarded by employers. However, skills acquired in military programs are often narrowly focused, so they may not be useful in civilian industry, which often requires broader training. There­ fore, some additional training may be needed, depending on the acquired skills and the kind of job. The National Institute for Certification in Engineering Tech­ nologies (NICET) has established a voluntary certification program for engineering technicians. Certification is available at various levels, each level combining a written examination in 1 of about 30 specialties with a certain amount of job-related experience, a supervisory evaluation, and a recommendation. Job Outlook Opportunities will be best for individuals with an associate de­ gree or extensive job training in engineering technology. As technology becomes more sophisticated, employers will con­ tinue to look for technicians who are skilled in new technology and require a minimum of additional job training. An increase in the number of jobs related to public health and safety should create job opportunities for engineering technicians with the appropriate certification. Overall employment of engineering technicians is expected to increase about as fast as the average for all occupations through 2012. Competitive pressures will force companies to improve and update manufacturing facilities and product designs, re­ sulting in more jobs for engineering technicians. However, the growing use of advanced technologies, such as computer simu­ lation and computer-aided design and drafting will continue to increase productivity and limit job growth. In addition to growth, many job openings will stem from the need to replace technicians who retire or leave the labor force. As is the case for engineers, employment of engineering tech­ nicians is influenced by local and national economic condi­ tions. As a result, the employment outlook varies with industry and specialization. Growth in the largest specialty—electrical and electronics engineering technicians—is expected to be about as fast as the average, and there will also be many jobs created by the need to replace technicians who retire or leave the labor force. Employment of environmental engineering tech­ nicians is expected to grow faster than average, partly due to increased demand for environmental protection and partly due to recognition of environmental engineering technicians as a separate occupation.  146  Occupational Outlook Handbook  Earnings Median annual earnings of engineering technicians by specialty is shown in the following tabulation. Aerospace engineering and operations technicians................ Electrical and electronic engineering technicians.................. Industrial engineering technicians.......................................... Mechanical engineering technicians...................................... Electro-mechanical technicians............................................. Civil engineering technicians................................................ Environmental engineering technicians.................................  $51,650 42,950 41,910 41,280 38,120 37,720 36,850  Median annual earnings of electrical and electronics engi­ neering technicians were $42,950 in 2002. The middle 50 per­ cent earned between $33,760 and $53,200. The lowest 10 per­ cent earned less than $26,770, and the highest 10 percent earned more than $64,070. Median annual earnings in the industries employing the largest numbers of electrical and electronics en­ gineering technicians in 2002 are shown below. Federal government............................................................... Wired telecommunications carriers....................................... Architectural, engineering, andrelated services..................... Semiconductor and other electronic component manufacturing.................................................................. Navigational, measuring, electromedical, and control instruments manufacturing...............................................  $58,520 49,610 43,670 40,110 39,760  Median annual earnings of civil engineering technicians were $37,720 in 2002. The middle 50 percent earned between $29,030 and $47,260. The lowest 10 percent earned less than $23,080, and the highest 10 percent earned more than $56,910. Median annual earnings in the industries employing the largest num­ bers of civil engineering technicians in 2002 are shown below. Local government.......................................................................42,120 Architectural, engineering, and related services..........................36,930 State government.........................................................................34,800  In 2002, the average annual salary for aerospace engineering and operations technicians in the aerospace products and parts manufacturing industry was $54,530, and the average annual salary for environmental engineering technicians in the archi­ tectural, engineering, and related services industry was $32,690. The average annual salary for industrial engineering techni­ cians in the semiconductor and other electronic component manufacturing industry was $38,230. In the architectural, engi­ neering, and related services industry, the average annual salary for mechanical engineering technicians was $42,090. Related Occupations Engineering technicians apply scientific and engineering prin­ ciples usually acquired in postsecondary programs below the baccalaureate level. Similar occupations include science tech­ nicians; drafters; surveyors, cartographers, photogrammetrists, and surveying technicians; and broadcast and sound engineer­ ing technicians and radio operators. Sources of Additional Information High school students interested in obtaining information about careers in engineering technology should visit the JETS Web site: http://www.jets.org. >- JETS-Guidance, 1420 King St., Suite 405, Alexandria, VA 22314­ 2794. Information on ABET-accredited engineering technology pro­ grams is available from: ► Accreditation Board for Engineering and Technology, Inc., Ill Mar­ ketplace, Suite 1050, Baltimore, MD 21202. Internet: http://www.abet.org Information on certification of engineering technicians as well as job and career information is available from: >- National Institute for Certification in Engineering Technologies (NICET), 1420 King St., Alexandria, VA 22314-2794. Internet: http://www.nicet.org  Life Scientists Agricultural and Food Scientists (0*NET 19-1011.00, 19-1012.00, 19-1013.01, 19-1013.02) Significant Points  • •  •  Almost 4 in 10 salaried agricultural and food scientists work for Federal, State, or local governments. A bachelor’s degree in agricultural science is sufficient for some jobs in applied research; a master’s or doctoral degree is required for basic research. Slower-than-average job growth is projected because of limited growth in the Federal Government and modest growth in State and local governments, the largest employers of these scientists.  Nature of the Work The work of agricultural and food scientists plays an important part in maintaining the Nation’s food supply by ensuring agri­ cultural productivity and the safety of the food supply. Agri­ cultural scientists study farm crops and animals, and develop ways of improving their quantity and quality. They look for  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ways to improve crop yield with less labor, control pests and weeds more safely and effectively, and conserve soil and water. They research methods of converting raw agricultural commodi­ ties into attractive and healthy food products for consumers. Agricultural science is closely related to biological science, and agricultural scientists use the principles of biology, chemis­ try, physics, mathematics, and other sciences to solve problems in agriculture. They often work with biological scientists on basic biological research and on applying to agriculture the advances in knowledge brought about by biotechnology. In the past two decades, rapid advances in basic biological knowledge related to genetics spurred growth in the field of biotechnology. Some agricultural and food scientists use this technology to manipulate the genetic material of plants and crops, attempting to make organisms more productive or resis­ tant to disease. These advances in biotechnology have opened up research opportunities in many areas of agricultural and food science, including commercial applications in agriculture, en­ vironmental remediation, and the food industry. Many agricultural scientists work in basic or applied research and development. Others manage or administer research and development programs, or manage marketing or production op­ erations in companies that produce food products or agricultural  Professional and Related Occupations chemicals, supplies, and machinery. Some agricultural scien­ tists are consultants to business firms, private clients, or govern­ ment. Depending on the agricultural or food scientist's area of spe­ cialization, the nature of the work performed varies. Food science. Food scientists and technologists usually work in the food processing industry, universities, or the Federal Gov­ ernment, and help to meet consumer demand for food products that are healthful, safe, palatable, and convenient. To do this, they use their knowledge of chemistry, physics, engineering, microbiology, biotechnology, and other sciences to develop new or better ways of preserving, processing, packaging, stor­ ing, and delivering foods. Some food scientists engage in basic research, discovering new food sources; analyzing food content to determine levels of vitamins, fat, sugar, or protein; or search­ ing for substitutes for harmful or undesirable additives, such as nitrites. They also develop ways to process, preserve, package, or store food according to industry and government regulations. Traditional food processing research into functions involving baking, blanching, canning, drying, evaporation, and pasteur­ ization will continue to be conducted and will find new appli­ cations. Other food scientists enforce government regulations, inspecting food processing areas and ensuring that sanitation, safety, quality, and waste management standards are met. Food technologists generally work in product development, apply­ ing the findings from food science research to the selection, preservation, processing, packaging, distribution, and use of safe, nutritious, and wholesome food. Plant science. Agronomy, crop science, entomology, and plant breeding are included in plant science. Scientists in these disciplines study plants and their growth in soils, helping pro­ ducers of food, feed, and fiber crops to continue to feed a grow­ ing population while conserving natural resources and main­ taining the environment. Agronomists and crop scientists not only help increase productivity, but also study ways to improve the nutritional value of crops and the quality of seed, often through biotechnology. Some crop scientists study the breed­ ing, physiology, and management of crops and use genetic en­ gineering to develop crops resistant to pests and drought. Ento­ mologists conduct research to develop new technologies to control or eliminate pests in infested areas and to prevent the spread of harmful pests to new areas, as well as technologies that are compatible with the environment. They also conduct re­ search or engage in oversight activities aimed at halting the spread of insect-borne disease. Soil science. Soil scientists study the chemical, physical, biological, and mineralogical composition of soils as they re­ late to plant or crop growth. They also study the responses of various soil types to fertilizers, tillage practices, and crop rota­ tion. Many soil scientists who work for the Federal Government conduct soil surveys, classifying and mapping soils. They pro­ vide information and recommendations to farmers and other landowners regarding the best use of land, plant growth, and methods to avoid or correct problems such as erosion. They may also consult with engineers and other technical personnel working on construction projects about the effects of, and solu­ tions to, soil problems. Because soil science is closely related to environmental science, persons trained in soil science also apply their knowledge to ensure environmental quality and ef­ fective land use. Animal science. Animal scientists work to develop better, more efficient ways of producing and processing meat, poultry, eggs, and milk. Dairy scientists, poultry scientists, animal breed https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  iFICA  147  5  The work of agricultural and food scientists plays an important part in maintaining the Nation’s food supply. ers, and other scientists in related fields study the genetics, nu­ trition, reproduction, growth, and development of domestic farm animals. Some animal scientists inspect and grade livestock food products, purchase livestock, or work in technical sales or marketing. As extension agents or consultants, animal scien­ tists advise agricultural producers on how to upgrade animal housing facilities properly, lower mortality rates, handle waste matter, or increase production of animal products, such as milk or eggs. Working Conditions Agricultural scientists involved in management or basic research tend to work regular hours in offices and laboratories. The work environment for those engaged in applied research or product development varies, depending on the discipline of agricul­ tural science and on the type of employer. For example, food scientists in private industry may work in test kitchens while investigating new processing techniques. Animal scientists working for Federal, State, or university research stations may spend part of their time at dairies, farrowing houses, feedlots, or farm animal facilities or outdoors conducting research associ­ ated with livestock. Soil and crop scientists also spend time outdoors conducting research on farms and agricultural research stations. Entomologists work in laboratories, insectories, or agricultural research stations, and also may spend time outdoors studying or collecting insects in their natural habitat.  148  Occupational Outlook Handbook  Employment Agricultural and food scientists held about 18,000 jobs in 2002. In addition, several thousand persons held agricultural science faculty positions in colleges and universities. (See the state­ ment on postsecondary teachers elsewhere in the Handbook.) Almost 4 in 10 salaried agricultural and food scientists work for Federal, State, or local governments. One out of 6 worked for the Federal Government in 2002, mostly in the U.S. Department of Agriculture. Another 1 in 6 worked for State governments at State agricultural colleges or agricultural research stations. Some worked for agricultural service companies; others worked for commercial research and development laboratories, seed com­ panies, pharmaceutical companies, wholesale distributors, and food products companies. Over 1,600 agricultural scientists were self-employed in 2002, mainly as consultants. Training, Other Qualifications, and Advancement Training requirements for agricultural scientists depend on their specialty and on the type of work they perform. A bachelor’s degree in agricultural science is sufficient for some jobs in ap­ plied research or for assisting in basic research, but a master’s or doctoral degree is required for basic research. A Ph.D. in agri­ cultural science usually is needed for college teaching and for advancement to administrative research positions. Degrees in related sciences such as biology, chemistry, or physics or in related engineering specialties also may qualify persons for some agricultural science jobs. All States have a land-grant college that offers agricultural science degrees. Many other colleges and universities also of­ fer agricultural science degrees or some agricultural science courses. However, not every school offers all specialties. A typical undergraduate agricultural science curriculum includes communications, mathematics, economics, business, and physi­ cal and life sciences courses, in addition to a wide variety of technical agricultural science courses. For prospective animal scientists, these technical agricultural science courses might include animal breeding, reproductive physiology, nutrition, and meats and muscle biology. Graduate students typically specialize in a subfield of agricultural science, such as animal breeding and genetics, crop science, or horticulture science, depending on their interest and the kind of work they wish to do. For example, those interested in doing genetic and biotech­ nological research in the food industry need to develop a strong background in life and physical sciences, such as cell and mo­ lecular biology, microbiology, and inorganic and organic chem­ istry. However, students normally need not specialize at the undergraduate level. In fact, undergraduates who are broadly trained have greater flexibility when changing jobs than if they had narrowly defined their interests. Students preparing as food scientists take courses such as food chemistry, food analysis, food microbiology, food engi­ neering, and food processing operations. Those preparing as crop or soil scientists take courses in plant pathology, soil chem­ istry, entomology, plant physiology, and biochemistry, among others. Advanced degree programs include classroom and field­ work, laboratory research, and a thesis or dissertation based on independent research. Agricultural and food scientists should be able to work inde­ pendently or as part of a team and be able to communicate clearly and concisely, both orally and in writing. Most of these scientists also need an understanding of basic business prin­ ciples, and the ability to apply basic statistical techniques. Employers increasingly prefer job applicants who are able to  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  apply computer skills to determine solutions to problems, to collect and analyze data, and to control various processes. The American Society of Agronomy offers certification pro­ grams in crop science, agronomy, crop advising, soil science, plant pathology, and weed science. To become certified, appli­ cants must pass designated examinations and have at least 2 years of experience with at least a bachelor’s degree in agriculture or 4 years of experience with no degree. To become a certified crop advisor, however, candidates do not need a degree. Agricultural scientists who have advanced degrees usually begin in research or teaching. With experience, they may ad­ vance to jobs such as supervisors of research programs or man­ agers of other agriculture-related activities. Job Outlook Employment of agricultural and food scientists is expected to grow more slowly than the average for all occupations through 2012. This projection reflects limited growth in the Federal Government and modest growth in State and local governments. The need to replace agricultural and food scientists who retire or otherwise leave the occupation permanently will account for many more job openings than will projected growth. Past agricultural research has resulted in the development of higher yielding crops, crops with better resistance to pests and plant pathogens, and chemically based fertilizers and pesticides. Research is still necessary, particularly as insects and diseases continue to adapt to pesticides and as soil fertility and water quality continue to need improvement, resulting in job oppor­ tunities in biotechnology. Agricultural scientists are using new avenues of research in biotechnology to develop plants and food crops that require less fertilizer, fewer pesticides and herbi­ cides, and even less water for growth. Biotechnological research, including studies and approaches relying on the tools of genomics, will continue to offer possi­ bilities for the development of new food products. This re­ search will allow agricultural and food scientists to develop techniques to detect and control food pathogens, and should lead to better understanding of other physiological responses of pathogens in food environments. Agricultural scientists will be needed to balance increased agricultural output with protection and preservation of soil, water, and ecosystems. They will increasingly encourage the practice of “sustainable agriculture” by developing and implementing plans to manage pests, crops, soil fertility and erosion, and ani­ mal waste in ways that reduce the use of harmful chemicals and do little damage to the natural environment. Further food research will result in more job opportunities for food scientists and technologists. This research will be stimu­ lated by a heightened public focus on diet, health, and food safety, as well as domestic and global issues such as increasing world population, availability and cost of usable water, loss of arable land, deforestation, environmental pollution, and climate change. Those with doctorates in agricultural and food science may face competition for jobs, due to an increase in the number of graduates and the limited numbers of research and teaching positions. Opportunities may be more numerous for those with a master’s degree, particularly for graduates seeking basic re­ search positions in a laboratory. Most of these positions, how­ ever, entail working under the guidance and direction of a Ph.D. scientist. Graduates with a bachelor’s degree should have opportuni­ ties, although not necessarily as an agricultural or food scientist.  Professional and Related Occupations A bachelor’s degree in agricultural science is useful for manage­ rial jobs in businesses that deal with ranchers and farmers, such as feed, fertilizer, seed, and farm equipment manufacturers; re­ tailers or wholesalers; and farm credit institutions. In some cases, persons with a 4-year degree can provide consulting services, or become a certified crop advisor, providing crop management recommendations to farmers to help them meet their objectives. Bachelor’s degree holders also can work in some applied re­ search and product development positions, but usually only in certain subfields, such as food science and technology, and the Federal Government hires bachelor’s degree holders to work as soil scientists. Four-year degrees also may help persons enter occupations such as farmer, or farm or ranch manager; coopera­ tive extension service agent; agricultural products inspector; or purchasing or sales agent for agricultural commodity or farm supply companies. Employment of agricultural and food scientists is relatively stable during periods of economic recession. Layoffs are less likely among agricultural and food scientists than in some other occupations because food is a staple item and its demand fluc­ tuates very little with economic activity. Earnings Median annual earnings of agricultural and food scientists were $48,670 in 2002. The middle 50 percent earned between $35,770 and $65,990. The lowest 10 percent earned less than $28,750, and the highest 10 percent earned more than $85,460. The average Federal salary for employees in nonsupervisoiy, supervisory, and managerial positions in 2003 was $82,729 in animal science and $68,846 in agronomy. According to the National Association of Colleges and Em­ ployers, beginning salary offers in 2003 for graduates with a bachelor’s degree in animal sciences averaged $30,026 a year; plant sciences, $28,203 a year; and in other agricultural sci­ ences, $29,971 a year. Related Occupations The work of agricultural scientists is closely related to that of other scientists, including biological scientists, chemists, and conservation scientists and foresters. It also is related to the work of managers of agricultural production, such as farmers, ranchers, and agricultural managers. Certain specialties of agri­ cultural science also are related to other occupations. For ex­ ample, the work of animal scientists is related to that of veteri­ narians, and horticulturists perform duties similar to those of landscape architects. Sources of Additional Information Information on careers in agricultural science is available from: >■ American Society of Agronomy, Crop Science Society of America, Soil Science Society of America, 677 S. Segoe Rd., Madison, WI 53711-1086. Internet: http://www.agronomy.org >- Food and Agricultural Careers for Tomorrow, Purdue University, 1140 Agricultural Administration Bldg., West Lafayette, IN 47907-1140. For information on careers in food technology, write to: > Institute of Food Technologists, Suite 300, 221 N. LaSalle St., Chicago IL 60601-1291. Internet: http://www.ift.org Information on acquiring a job as an agricultural scientist with the Federal Government is available from the Office of Personnel Management through a telephone-based system. Consult your telephone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Service: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the Internet site http://www.usajobs.opm.gov.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  149  Biological Scientists (0*NET 19-1020.01, 19-1021.01, 19-1021.02, 19-1022.00, 19­ 1023.00, 19-1029.99) Significant Points  •  •  •  A Ph.D. degree usually is required for independent research, but a master’s degree is sufficient for some jobs in applied research or product development; a bachelor’s degree is adequate for some nonresearch jobs. Doctoral degree holders face considerable competition for independent research positions, particularly in universities; holders of bachelor’s or master’s degrees in biological science can expect better opportunities in nonresearch positions. Biotechnological research and development will continue to drive employment growth.  Nature of the Work Biological scientists study living organisms and their relation­ ship to their environment. They research problems dealing with life processes. Most specialize in some area of biology such as zoology (the study of animals) or microbiology (the study of microscopic organisms). (Medical scientists, whose work is closely related to that of biological scientists, are discussed elsewhere in the Handbook.) Many biological scientists work in research and develop­ ment. Some conduct basic research to advance knowledge of living organisms, including viruses, bacteria, and other infec­ tious agents. Basic biological research continues to provide the building blocks necessary to develop solutions to human health problems, and to preserve and repair the natural environment. Biological scientists mostly work independently in private in­ dustry, university, or government laboratories, often exploring new areas of research or expanding on specialized research started in graduate school. Those who are not wage and salary workers in private industry typically submit grant proposals to obtain funding for their projects. Colleges and universities, private industry, and Federal Government agencies, such as the National Institutes of Health and the National Science Founda­ tion, contribute to the support of scientists whose research pro­ posals are determined to be financially feasible and to have the potential to advance new ideas or processes. Biological scientists who work in applied research or prod­ uct development use knowledge provided by basic research to develop new drugs and treatments, increase crop yields, and protect and clean up the environment. They usually have less autonomy than basic researchers to choose the emphasis of their research, relying instead on market-driven directions based on the firm’s products and goals. Biological scientists doing ap­ plied research and product development in private industry may be required to describe their research plans or results to nonsci­ entists who are in a position to veto or approve their ideas, and they must understand the potential cost of their work and its impact on business. Scientists increasingly are working as part of teams, interacting with engineers, scientists of other disci­ plines, business managers, and technicians. Some biological scientists also work with customers or suppliers and manage budgets.  150  Occupational Outlook Handbook  Those who conduct research usually work in laboratories and use electron microscopes, computers, thermal cyclers, or a wide variety of other equipment. Some conduct experiments using laboratory animals or greenhouse plants. This is particu­ larly true of botanists, physiologists, and zoologists. For some biological scientists, research also is performed outside of labo­ ratories. For example, a botanist might do research in tropical rain forests to see what plants grow there, or an ecologist might study how a forest area recovers after a fire. Some marine biolo­ gists also work outdoors, often on research vessels from which they study various marine organisms such as marine plankton or fish. Some biological scientists work in managerial or administra­ tive positions, usually after spending some time doing research and learning about the firm, agency, or project. They may plan and administer programs for testing foods and drugs, for ex­ ample, or direct activities at zoos or botanical gardens. Some work as consultants to business firms or to government, while others test and inspect foods, drugs, and other products. Recent advances in biotechnology and information technol­ ogy are transforming the industries in which biological scien­ tists work. In the 1980s, swift advances in basic biological knowledge related to genetics and molecules spurred growth in the field of biotechnology. Biological scientists using this tech­ nology manipulate the genetic material of animals or plants, attempting to make organisms more productive or resistant to disease. Research using biotechnology techniques, such as recombining DNA, has led to the production of important substances, including human insulin and growth hormone. Many other substances not previously available in large quan­ tities are starting to be produced by biotechnological means; some may be useful in treating cancer and other diseases. Today, many biological scientists are involved in biotechnology. Those who work on the Human Genome project continue to isolate genes and determine their functionality. This work continues to lead to the discovery of the genes associated with specific dis­ eases and inherited traits, such as certain types of cancer or obesity. These advances in biotechnology have opened up research opportunities in almost all areas of biology, including commercial applications in agriculture, environmental remediation, and the food and chemical industries.  *aM3 ■l  Many biological scientists work in research and development, often in offices and laboratories.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Most biological scientists are further classified by the type of organism they study or by the specific activity they perform, although recent advances in the understanding of basic life pro­ cesses at the molecular and cellular levels have blurred some traditional classifications. Aquatic biologists study micro-organisms, plants, and ani­ mals living in water. Marine biologists study salt water organ­ isms, and limnologists study fresh water organisms. Much of the work of marine biology centers on molecular biology, the study of the biochemical processes that take place inside liv­ ing cells. Marine biologists sometimes are mistakenly called oceanographers, but oceanography is the study of the physical characteristics of oceans and the ocean floor. (See the state­ ment on environmental scientists and geoscientists elsewhere in the Handbook.) Biochemists study the chemical composition of living things. They analyze the complex chemical combinations and reac­ tions involved in metabolism, reproduction, growth, and hered­ ity. Biochemists and molecular biologists do most of their work in the field of biotechnology, which involves understanding the complex chemistry of life. Botanists study plants and their environment. Some study all aspects of plant life, including algae, fungi, lichens, mosses, ferns, conifers, and flowering plants; others specialize in areas such as identification and classification of plants, the structure and function of plant parts, the biochemistry of plant processes, the causes and cures of plant diseases, the interaction of plants with other organisms and the environment, and the geological record of plants. Microbiologists investigate the growth and characteristics of microscopic organisms such as bacteria, algae, or fungi. Most microbiologists specialize in environmental, food, agricultural, or industrial microbiology; virology (the study of viruses); or immunology (the study of mechanisms that fight infections). Many microbiologists use biotechnology to advance knowl­ edge of cell reproduction and human disease. Physiologists study life functions of plants and animals, both in the whole organism and at the cellular or molecular level, under normal and abnormal conditions. Physiologists often spe­ cialize in functions such as growth, reproduction, photosynthe­ sis, respiration, or movement, or in the physiology of a certain area or system of the organism. Biophysicists study the application of principles of physics, such as electrical and mechanical energy and related phenom­ ena, to living cells and organisms. Zoologists and wildlife biologists study animals and wild­ life—their origin, behavior, diseases, and life processes. Some experiment with live animals in controlled or natural surround­ ings, while others dissect dead animals in order to study their structure. They also may collect and analyze biological data to determine the environmental effects of current and potential use of land and water areas. Zoologists usually are identified by the animal group studied—ornithologists (birds), mammalogists (mammals), herpetologists (reptiles), and ichthyologists (fish). Ecologists study the relationships among organisms and be­ tween organisms and their environments, and the effects of in­ fluences such as population size, pollutants, rainfall, tempera­ ture, and altitude. Utilizing knowledge of various scientific disciplines, they may collect, study, and report data on the qual­ ity of air, food, soil, and water. Agricultural and food scientists, who are sometimes referred to as biological scientists, are discussed elsewhere in the Hand­ book.  Professional and Related Occupations Working Conditions Biological scientists usually work regular hours in offices or laboratories and usually are not exposed to unsafe or unhealthy conditions. Those who work with dangerous organisms or toxic substances in the laboratory must follow strict safety proce­ dures to avoid contamination. Many biological scientists such as botanists, ecologists, and zoologists take field trips that in­ volve strenuous physical activity and primitive living condi­ tions. Biological scientists in the field may work in warm or cold climates, in all kinds of weather. In their research, they may dig, chip with a hammer, scoop with a net, and carry equipment in a backpack. They also may climb, stand, kneel, or dive. The work of a marine biologist varies dramatically, depend­ ing on the type of work involved. Some work in a laboratory, while others work on research ships. Marine biologists who work underwater must practice safe diving while working around sharp coral reefs and hazardous marine life. Although some ma­ rine biologists obtain their specimens from the sea, many still spend a good deal of their time in laboratories and offices, con­ ducting tests, running experiments, recording results, and com­ piling data. Some biological scientists depend on grant money to sup­ port their research. They may be under pressure to meet dead­ lines and to conform to rigid grant-writing specifications when preparing proposals to seek new or extended funding. Employment Biological scientists held about 75,000 jobs in 2002. Almost half of all biological scientists were employed by Federal, State, and local governments. Federal biological scientists worked mainly for the U.S. Departments of Agriculture, Interior, and Defense, and for the National Institutes of Health. Most of the rest worked in scientific research and testing laboratories, the pharmaceutical and medicine manufacturing industry, or hospitals. In addition, many biological scientists held biology faculty positions in colleges and universities. (See the statement on teachers—postsecondary elsewhere in the Handbook.) Training, Other Qualifications, and Advancement A Ph.D. degree usually is necessary for independent research, industrial research, and college teaching, and for advancement to administrative positions. A master’s degree is sufficient for some jobs in basic research, applied research or product devel­ opment, management, or inspection; it may also qualify one to work as a research technician or as a teacher in an aquarium. The bachelor’s degree is adequate for some nonresearch jobs. For example, some graduates with a bachelor’s degree start as biological scientists in testing and inspection, or get jobs re­ lated to biological science, such as technical sales or service representatives. In some cases, graduates with a bachelor’s de­ gree are able to work in a laboratory environment on their own projects, but this is unusual. Some may work as research assis­ tants, while others become biological laboratory technicians or, with courses in education, high school biology teachers. (See the statements on clinical laboratory technologists and techni­ cians; science technicians; and teachers-preschool, kindergar­ ten, elementary, middle, and secondary elsewhere in the Hand­ book.) Many with a bachelor’s degree in biology enter medical, dental, veterinary, or other health profession schools. In addition to required courses in chemistry and biology, undergraduate biological science majors usually study allied disciplines such as mathematics, physics, and computer science.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  151  Computer courses are essential, as employers prefer job appli­ cants who are able to apply computer skills to modeling and simulation tasks and to operate computerized laboratory equip­ ment. Those interested in studying the environment also should take courses in environmental studies and become familiar with current legislation and regulations. Prospective biological sci­ entists who hope to work as marine biologists should have at least a bachelor’s degree in a biological or marine science. How­ ever, students should not overspecialize in undergraduate study, as knowledge of marine biology often is acquired in graduate study. Most colleges and universities offer bachelor’s degrees in biological science, and many offer advanced degrees. Curriculums for advanced degrees often emphasize a subfield such as microbiology or botany, but not all universities offer all curriculums. Larger universities frequently have separate depart­ ments specializing in different areas of biological science. For example, a program in botany might cover agronomy, horticul­ ture, or plant pathology. Advanced degree programs include classroom and fieldwork, laboratory research, and a thesis or dissertation. Biological scientists with a Ph.D. often take temporary postdoctoral research positions that provide specialized research experience. In private industry, some may become managers or administrators within the field of biology; others leave biology for nontechnical managerial, administrative, or sales jobs. Biological scientists should be able to work independently or as part of a team and be able to communicate clearly and concisely, both orally and in writing. Those in private industry, especially those who aspire to management or administrative positions, should possess strong business and communication skills and be familiar with regulatory issues and marketing and management techniques. Those doing field research in remote areas must have physical stamina. Biological scientists also must have patience and self-discipline to conduct long and de­ tailed research projects. Job Outlook Despite projected as fast as average job growth for biological scientists over the 2002-12 period, doctoral degree holders can expect to face competition for basic research positions. The Federal Government funds much basic research and develop­ ment, including many areas of medical research that relate to biological science. Recent budget increases at the National Institutes of Health have led to large increases in Federal basic research and development expenditures, with research grants growing both in number and in dollar amount. At the same time, the number of newly trained scientists has continued to increase at least as fast as available research funds, so both new and established scientists have experienced difficulty winning and renewing research grants. Currently, about 1 in 3 grant propos­ als are approved for long-term research projects. If the number of advanced degrees awarded continues to grow, as seems likely based on enrollment trends, this competitive situation will per­ sist. Additionally, applied research positions in private indus­ try may become more difficult to obtain if increasing numbers of scientists seek jobs in private industry because of the com­ petitive job market for independent research positions in uni­ versities and for college and university faculty. Opportunities for those with a bachelor’s or master’s degree in biological science are expected to be better. The number of science-related jobs in sales, marketing, and research manage­ ment, for which non-Ph.D.s usually qualify, is expected to ex­ ceed the number of independent research positions. Non-Ph.D.s  152  Occupational Outlook Handbook  also may fill positions as science or engineering technicians or health technologists and technicians. Some may become high school biology teachers. Biological scientists enjoyed very rapid gains in employ­ ment between the mid-1980s and mid-1990s, in part reflecting increased staffing requirements in new biotechnology compa­ nies. Employment growth should slow somewhat as increases in the number of new biotechnology firms slow and existing firms merge or are absorbed into larger ones. However, much of the basic biological research done in recent years has resulted in new knowledge, including the isolation and identification of genes. Biological scientists will be needed to take this knowl­ edge to the next stage, which is the understanding of how cer­ tain genes function within an entire organism, so that gene thera­ pies can be developed to treat diseases. Even pharmaceutical and other firms not solely engaged in biotechnology use bio­ technology techniques extensively, spurring employment in­ creases for biological scientists. Expected expansion of research related to health issues, such as AIDS, cancer, and Alzheimer’s disease, also should create more jobs for these scientists. In addition, efforts to discover new and improved ways to clean up and preserve the environment will continue to add to job growth. More biological scientists, including some botanists, will be needed to determine the environmental impact of industry and government actions and to prevent or correct environmental problems, while some will find opportunities in environmental regulatory agencies. Botanists also will use their expertise to advise lawmakers on legislation for environmental protection and for ways to save environmentally sensitive areas. There will continue to be demand for biological scientists specializing in botany, zoology, and marine biology, but opportunities will be limited because of the small size of these fields. Biological scientists are less likely to lose their jobs during recessions than are those in many other occupations because many are employed on long-term research projects. However, an economic downturn could influence the amount of money allocated to new research and development efforts, particularly in areas of risky or innovative research. An economic downturn could also limit the possibility of extension or renewal of exist­ ing projects. Earnings Median annual earnings of biochemists and biophysicists were $60,390 in 2002. The middle 50 percent earned between $43,110 and $82,080. The lowest 10 percent earned less than $33,930, and the highest 10 percent earned more than $102,930. Median annual earnings of microbiologists were $51,020 in 2002. The middle 50 percent earned between $39,100 and $67,420. The lowest 10 percent earned less than $31,250, and the highest 10 percent earned more than $87,060. Median annual earnings of zoologists and wildlife biologists were $47,740 in 2002. The middle 50 percent earned between $37,100 and $58,040. The lowest 10 percent earned less than $29,260, and the highest 10 percent earned more than $71,270. Median annual earnings of biochemists and biophysicists employed in scientific research and development services were $64,390 in 2002. According to the National Association of Colleges and Em­ ployers, beginning salary offers in 2003 averaged $29,456 a year for bachelor’s degree recipients in biological and life sci­ ences; $33,600 for master’s degree recipients; and $42,244 for doctoral degree recipients. In the Federal Government in 2003, general biological sci­ entists in nonsupervisory, supervisory, and managerial positions  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  earned an average salary of $66,262; microbiologists, $73,513; ecologists, $65,207; physiologists, $85,181; geneticists, $78,652; zoologists, $90,178; and botanists, $55,727. Related Occupations Many other occupations deal with living organisms and require a level of training similar to that of biological scientists. These include medical scientists, agricultural and food scientists, and conservation scientists and foresters, as well as health occupa­ tions such as physicians and surgeons, dentists, and veterinarians. Sources of Additional Information For information on careers in the biological sciences, contact: >- American Institute of Biological Sciences, Suite 200, 1444 I St. NW., Washington, DC 20005. Internet: http://www.aibs.org For information on careers in biochemistry or biological sci­ ences, contact: >■ Federation of American Societies for Experimental Biology, 9650 Rockville Pike, Bethesda, MD 20814. Internet: http://www.faseb.org For information on careers in microbiology, contact: ► American Society for Microbiology, Office of Education and Train­ ing—Career Information, 1325 Massachusetts Ave. NW., Washington, DC 20005. Internet: http://www.asmusa.org Information on obtaining a biological scientist position with the Federal Government is available from the U.S. Office of Personnel Management (OPM) through a telephone-based sys­ tem. Consult your telephone directory under U.S. Government for a local number or call (703) 724-1850; Federal Relay Ser­ vice: (800) 877-8339. The first number is not tollfree, and charges may result. Information also is available from the OPM Internet site: http://www.usajobs.opm.gov.  Conservation Scientists and Foresters (0*NET 19-1031.01, 19-1031.02, 19-1031.03, 19-1032.00) Significant Points  •  •  •  Nearly two-thirds of salaried conservation scientists and foresters work for Federal, State, or local governments. A bachelor’s degree in forestry, range management, or a related discipline is the minimum educational requirement. Slower-than-average job growth is projected because of limited growth in government and in forestry and logging; most employment opportunities will be in private sector consulting.  Nature of the Work Forests and rangelands supply wood products, livestock forage, minerals, and water; serve as sites for recreational activities; and provide habitats for wildlife. Conservation scientists and for­ esters manage, develop, use, and help to protect these and other natural resources. Foresters manage forested lands for a variety of purposes. Those working in private industry may manage company forest land or procure timber from private landowners. Company for­ ests usually are managed to produce a sustainable supply of wood for company mills. Procurement foresters contact local  Professional and Related Occupations forest owners and gain permission to take inventory of the type, amount, and location of all standing timber on the property, a process known as timber cruising. Foresters then appraise the timber’s worth, negotiate its purchase, and draw up a contract for procurement. Next, they subcontract with loggers or pulpwood cutters for tree removal, aid in road layout, and maintain close contact with the subcontractor’s workers and the land­ owner to ensure that the work meets the landowner’s require­ ments, as well as Federal, State, and local environmental speci­ fications. Forestry consultants often act as agents for the forest owner, performing these duties and negotiating timber sales with industrial procurement foresters. Throughout the forest management and procurement pro­ cesses, foresters consider the economics as well as the environ­ mental impact on natural resources. To do this, they determine how to conserve wildlife habitats, creek beds, water quality, and soil stability, and how best to comply with environmental regu­ lations. Foresters must balance the desire to conserve forested ecosystems for future generations with the need to use forest resources for recreational or economic purposes. Through a process called regeneration, foresters also super­ vise the planting and growing of new trees. They choose and prepare the site, using controlled burning, bulldozers, or herbi­ cides to clear weeds, brush, and logging debris. They advise on the type, number, and placement of trees to be planted. Forest­ ers then monitor the seedlings to ensure healthy growth and to determine the best time for harvesting. If they detect signs of disease or harmful insects, they consult with forest pest manage­ ment specialists to decide on the best course of treatment. For­ esters who work for Federal and State governments manage pub­ lic forests and parks and work with private landowners to protect and manage forest land outside of the public domain. They may also design campgrounds and recreation areas. Foresters use a number of tools to perform their jobs. Cli­ nometers measure the height, diameter tapes measure the diam­ eter, and increment borers and bark gauges measure the growth of trees so that timber volumes can be computed and growth rates estimated. Remote sensing (aerial photographs and other imagery taken from airplanes and satellites) and Geographic Information Systems (GIS) data often are used for mapping large forest areas and for detecting widespread trends of forest and land use. Once the map is generated, the data are digitized to create a computerized inventory of information required to man­ age the forest land and its resources. Moreover, hand-held com­ puters, Global Positioning Satellite (GPS), and World Wide Webbased applications are used extensively. Range managers, also called range conservationists, range ecologists, or range scientists, study, manage, improve, and pro­ tect rangelands to maximize their use without damaging the environment. Rangelands cover about 1 billion acres of the United States, mostly in Western States and Alaska. They con­ tain many natural resources, including grass and shrubs for ani­ mal grazing, wildlife habitats, water from vast watersheds, recre­ ation facilities, and valuable mineral and energy resources. Range managers may inventory soils, plants, and animals, de­ velop resource management plans, help to restore degraded eco­ systems, or assist in managing a ranch. For example, they may help ranchers attain optimum livestock production by deter­ mining the number and kind of animals to graze, the grazing system to use, and the best season for grazing. At the same time, however, range managers maintain soil stability and vegetation for other uses such as wildlife habitats and outdoor recreation. They also plan and implement revegetation of disturbed sites.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  153  PtidSi mm  fcafSCi mm  1  mmmmBm  Conservation scientists and foresters often work outdoors, sometimes in isolated areas. Soil and water conservationists provide technical assistance to farmers, ranchers, forest managers, State and local agencies, and others concerned with the conservation of soil, water, and related natural resources. They develop programs for private landowners designed to make the most productive use of land without damaging it. Soil conservationists also assist landown­ ers by visiting areas with erosion problems, finding the source of the problem, and helping landowners and managers develop management practices to combat it. Water conservationists also assist private landowners and Federal, State, and local govern­ ments by advising on a broad range of natural resource topics— specifically, issues of water quality, preserving water supplies, groundwater contamination, and management and conserva­ tion of water resources. Foresters and conservation scientists often specialize in one area, such as wildlife management, urban forestry, wood tech­ nology, native species, or forest economics. Working Conditions Working conditions vary considerably. Although some of the work is solitary, foresters and conservation scientists also deal regularly with landowners, loggers, forestry technicians and aides, farmers, ranchers, government officials, special interest groups, and the public in general. Some foresters and conserva­ tion scientists work regular hours in offices or labs. Others may split their time between fieldwork and office work, while inde­ pendent consultants and especially new, less experienced work­ ers spend the majority of their time outdoors overseeing or par­ ticipating in hands-on work. The work can be physically demanding. Some foresters and conservation scientists work outdoors in all types of weather, sometimes in isolated areas. Other foresters may need to walk long distances through densely wooded land to carry out their work. Foresters also may work long hours fighting fires. Con­ servation scientists often are called to prevent erosion after a forest fire, and they provide emergency help after floods, mudslides, and tropical storms. Employment Conservation scientists and foresters held about 33,000 jobs in 2002. Nearly one-third of all workers were employed by the Federal Government, many in the U.S. Department of Agricul­ ture (USDA). Foresters were concentrated in the USDA’s Forest  154  Occupational Outlook Handbook  Service; soil conservationists were employed primarily in the USDA’s Natural Resource Conservation Service. Most range managers worked in the U.S. Department of the Interior’s Bu­ reau of Land Management, the Natural Resource Conservation Service, or the Forest Service. Another 20 percent of conserva­ tion scientists and foresters worked for State governments, and about 10 percent worked for local governments. The remainder worked in private industry, mainly in support activities for agri­ culture and forestry or in wood product manufacturing. Some were self-employed as consultants for private landowners, Fed­ eral and State governments, and forestry-related businesses. Although conservation scientists and foresters work in every State, employment of foresters is concentrated in the Western and Southeastern States, where many national and private for­ ests and parks, and most of the lumber and pulpwood-producing forests, are located. Range managers work almost entirely in the Western States, where most of the rangeland is located. Soil conservationists, on the other hand, are employed in al­ most every county in the country. Besides the jobs described above, some foresters and conservation scientists held faculty positions in colleges and universities. (See the statement on teachers—postsecondary elsewhere in the Handbook.) Training, Other Qualifications, and Advancement A bachelor’s degree in forestry, range management, or a related discipline is the minimum educational requirement for careers in forestry or conservation science. In the Federal Government, a combination of experience and appropriate education occa­ sionally may substitute for a 4-year forestry degree, but job competition makes this difficult. Sixteen States have mandatory licensing or voluntary regis­ tration requirements that a forester must meet in order to acquire the title “professional forester” and practice forestry in the State. Of those 16 States, 7 have mandatory licensing; 5 have manda­ tory registration, and the remaining 4 States have optional reg­ istration. Both licensing and registration requirements usually entail completing a 4-year degree in forestry and several years of forestry work experience. Candidates pursuing licensing also must pass a comprehensive written exam. Foresters who wish to perform specialized research or teach should have an advanced degree, preferably a Ph.D. Most land-grant colleges and universities offer bachelor’s or higher degrees in forestry; about 110 of these degree programs at around 50 educational institutions are accredited by the So­ ciety of American Foresters. Curriculums stress four compo­ nents: Ecology, measurement of forest resources, management of forest resources, and public policy. Students should balance general science courses such as ecology, biology, tree physiol­ ogy, taxonomy, and soil formation with technical forestry courses, such as forest inventory or wildlife habitat assessment, remote sensing, land surveying, GPS technology, integrated forest re­ source management, silviculture, and forest protection. In addi­ tion, communications skills, mathematics, statistics, and com­ puter science courses also are recommended. Many forestry curriculums include advanced computer applications such as GIS and resource assessment programs. Courses in resource policy and administration, specifically forest economics and business administration, supplement the student’s scientific and technical knowledge. Forestry curriculums increasingly include courses on best management practices, wetlands analysis, and sustainability and regulatory issues in response to the growing focus on protecting forested lands during timber harvesting operations. Prospective foresters should have a strong grasp of  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Federal, State, and local policy issues and of increasingly nu­ merous and complex environmental regulations that affect many forestry-related activities. Many colleges require students to complete a field session either in a camp operated by the col­ lege or in a cooperative work-study program with a Federal or State agency or private industry. All schools encourage stu­ dents to take summer jobs that provide experience in forestry or conservation work. A bachelor’s degree in range management or range science is the usual minimum educational requirement for range manag­ ers; graduate degrees usually are required for teaching and re­ search positions. More than 30 colleges and universities offer degrees in range management that are accredited by the Society of Range Management. A number of other schools offer degree programs in range science or in a closely related discipline with a range management or range science option. Specialized range management courses combine plant, animal, and soil sciences with principles of ecology and resource management. Desir­ able electives include economics, statistics, forestry, hydrol­ ogy, agronomy, wildlife, animal husbandry, computer science, and recreation. Selection of a minor in range management, such as wildlife ecology, watershed management, animal science, or agricultural economics, can often enhance qualifications for certain types of employment. The Society for Range Manage­ ment offers certification as a professional rangeland manager (CPRM). Candidates seeking certification must have at least a bachelor’s degree in range science or a closely related field, have a minimum of 5 years of full-time work experience, and pass a comprehensive written exam. Very few colleges and universities offer degrees in soil con­ servation. Most soil conservationists have degrees in environ­ mental studies, agronomy, general agriculture, hydrology, or crop or soil science; a few have degrees in related fields such as wildlife biology, forestry, and range management. Programs of study usually include 30 semester hours in natural resources or agriculture, including at least 3 hours in soil science. In addition to meeting the demands of forestry and conser­ vation research and analysis, foresters and conservation scien­ tists generally must enjoy working outdoors, be physically hardy, and be willing to move to where the jobs are. They also must work well with people and have good communication skills. Recent forestry and range management graduates usually work under the supervision of experienced foresters or range managers. After gaining experience, they may advance to more responsible positions. In the Federal Government, most entrylevel foresters work in forest resource management. An experi­ enced Federal forester may supervise a ranger district, and may advance to forest supervisor, to regional forester, or to a top administrative position in the national headquarters. In private industry, foresters start by learning the practical and administra­ tive aspects of the business and acquiring comprehensive tech­ nical training. They are then introduced to contract writing, timber harvesting, and decisionmaking. Some foresters work their way up to top managerial positions within their compa­ nies. Foresters in management usually leave the fieldwork be­ hind, spending more of their time in an office, working with teams to develop management plans and supervising others. After gaining several years of experience, some foresters may become consulting foresters, working alone or with one or sev­ eral partners. They contract with State or local governments, private landowners, private industry, or other forestry consult­ ing groups.  Professional and Related Occupations Soil conservationists usually begin working within one county or conservation district and, with experience, may ad­ vance to the area, State, regional, or national level. Also, soil conservationists can transfer to related occupations, such as farm or ranch management advisor or land appraiser. Job Outlook Employment of conservation scientists and foresters is expected to grow more slowly than the average for all occupations through 2012. Growth should be strongest in private sector consulting firms and in scientific research and development services. De­ mand will be spurred by a continuing emphasis on environmen­ tal protection, responsible land management, and water-related issues. Job opportunities for conservation scientists will arise because government regulations, such as those regarding the management of storm water and coastlines, have created de­ mand for persons knowledgeable about runoff and erosion on farms and in cities and suburbs. Soil and water quality experts will be needed as States design initiatives to improve water resources by preventing pollution by agricultural producers and industrial plants. Fewer opportunities for conservation scientists and foresters are expected in Federal and State Government, mostly due to budgetary constraints and the trend among governments to­ ward contracting functions out to private consulting firms. Also, Federal land management agencies, such as the USDA Forest Service, have de-emphasized their timber programs and increas­ ingly focused on wildlife, recreation, and sustaining ecosys­ tems, thereby spurring demand for other life and social scien­ tists rather than for foresters. However, departures of foresters who retire or leave the Government for other reasons will result in some job openings between 2002 and 2012. A small number of new jobs will result from the need for range and soil conserva­ tionists to provide technical assistance to owners of grazing land through the Natural Resource Conservation Service. Reductions in timber harvesting on public lands, most of which are located in the Northwest and California, also will dampen job growth for private industry foresters in these re­ gions. Opportunities will be better for foresters in the South­ east, where much forested land is privately owned. Salaried foresters working for private industry—such as paper compa­ nies, sawmills, and pulpwood mills—and consulting foresters will be needed to provide technical assistan