View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Occupational Outlook Handbook 2008-09 Edition January 2008 U.S. Department of Labor Bulletin 2700 ict ~&b on nOt»**  t jf\  11/ 1 I V-- £0  a  Mgl Jfy l Sjr‘"  ■'**“  -irm  ■   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Guide to the Handbook • Highlights of the job outlook between 2006 and 2016 are presented in Tomorrow’s Jobs, page 1. • A list of occupations growing the fastest and having the largest numerical in­ creases in employment, by the most significant source of postsecondary educa­ tion or training, appears on page 9. • Additional sources of information on careers and State occupational employment projections, are described in Sources of Career Information, page 10. • Additional sources of information are described in Sources of Education, Training, and Financial Aid on page 15. • Job search methods and tips on applying for a job and evaluating a job offer are discussed in Finding and Applying for Jobs and Evaluating Offers, page 18. • Highlights and an explanation of information presented in the Handbook, how the information was acquired, and hints on how to interpret this information, appear in Occupational Information Included in the Handbook, page 23. • Brief descriptions of the nature of the work, the number of jobs in 2006, the projected employment change over the 2006-16 period, and the most signifi­ cant source of postsecondary education or training, are presented in Data for Occupations Not Studied in Detail, page 843. • The Assumptions and Methods Used in Preparing Employment Projections are described briefly on page 857. • A list of Occupational Information Network (0*NET) codes that are related to Handbook occupations are found on page 859. • An alphabetical Index of occupations found in the Handbook is on page 867. • A description of BLS employment outlook information on the Internet appears at the end of the Handbook. • Information about publications closely related to the Handbook—Career Guide to Industries, 2008-09 Edition, Bulletin 2701; Occupational Projections and Training Data, 2008-09 Edition, Bulletin 2702; and Occupational Outlook Quarterly—ap­ pears at the end of the Handbook and on the inside back cover.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Occupational Outlook Handbook  2008-09  Library Edition  U.S. Department of Labor Elaine L. Chao, Secretary U.S. Bureau of Labor Statistics Philip L. Rones, Acting Commissioner January 2008 Bulletin 2700  MSU I IRRARfPS  APR 1 1 2008 Us DEPOSITORY  Suggested citation: U.S. Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2008-09 Library Edition, Bulletin 2700. Superintendent of Documents, U.S. Government Printing Office, Washington, DC.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  U.S. GOVERNMENT OFFICIAL EDITION NOTICE  LA$(  (P. w  Legal Status and Use of Trademarks, Logos and Seals The seal of the U.S. Bureau of Labor Statistics (BLS) authenticates this publication as the Official U.S. Government edition of the BLS Occupational Outlook Handbook, a nationally recognized source of career information describing the job duties, working conditions, training requirements, earnings, and job prospects in a wide variety of occupations.  Under the provisions of 15 U.S.C § 1125 and 18 U.S.C. § 709, the unauthorized use of this seal is prohibited and subject to civil and criminal penalties including fines and imprisonment.  AUTHENTICATED U.S. GOVERNMENT INFORMATION  GPO   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Use of ISBN This is the Official U.S. Government edition of this publication and is herein identified to certify its authenticity. Use of the 978-0-16-079791-0 ISBN is for U.S. Government Printing Office Official Editions only. The Superintendent of Documents of the U.S. Government Printing Office requests that any reprinted edition be labeled clearly as a copy of the authentic work with a new ISBN.  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) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 ISBN 978-0-16-079791-0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Acknowledgments The Bureau of Labor Statistics produced the Handbook under the general guid­ ance and direction of Dixie Sommers, Associate Commissioner for Occupational Statistics and Employment Projections, and Kristina J. Shelley, Chief, Division of Occupational Outlook, Office of Occupational Statistics and Employment Pro­ jections. Chester C. Levine and Jon Sargent, Managers of Occupational Outlook Studies, provided planning and day-to-day direction. Supervisors overseeing the research and preparation of material were Douglas Braddock, Arlene Dohm, Roger J. Moncarz, and Terry Schau. Occupational analysts who contributed material were Phillip C. Bastian, Sadie Blanchard, Lauren Csomy, Tamara D. Dillon, Tom DiVincenzo, Diana Gehlhaus, Samuel L. Greenblatt, Henry T. Kasper, Jonathan W. Kelinson, William S. Lawhom, C. Brett Lockard, Kevin M. McCarron, Gregory Niemesh, Alice Ramey, Brian Roberts, Patricia Tate, Colleen D. Teixeira, Dave Terkanian, Nicholas K. Terrell, Michael Wolf, Benjamin Wright, and Ian Wyatt. Editorial work was provided by Olivia Crosby and Elka Torpey, Office of Occu­ pational Statistics and Employment Projections, and by Eugene Becker and Anna H. Hill. Editorial work also was provided by Edith Baker, Monica Gabor, and Lori Pastro under the supervision of Richard Devens, Office of Publications and Spe­ cial Studies. Word processing support was provided by Wendy Davis. Computer programming support was provided by Erik A. Savisaar, Dave Terkanian, and Lynn Shniper. The cover and other art were designed by Keith Tapscott. T. Alan Lacey also contributed art. Photographs were taken by Shawn Moore, Department of Labor Photographic Services, and Fredde Lieberman. The Bureau of Labor Statistics also wishes to express its appreciation for the cooperation and assistance of the many organiza­ tions and individuals who either contributed photographs or made their facilities available to photographers working for or under contract to the U.S. Department of Labor. Situations portrayed in the photographs may not be free of every pos­ sible safety or health hazard. Depiction of company or trade name in no way constitutes endorsement by the Department of Labor. Note Many trade associations, professional societies, unions, industrial organizations, and government agencies provide career information that is valuable to counselors and jobseekers. For the conve­ nience of Handbook users, some of these organizations and, in some cases, their Internet addresses are listed at the end of each occupational statement. Although these references were carefully compiled, the Bureau of Labor Statistics has neither authority nor facilities for investigating the organizations or the information 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 recommendation 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 description of jobs and cannot be expected to reflect work situations in specific establishments or localities. The Handbook, therefore, is not intended and should never be used for any legal purpose. For example, the Handbook 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 proceedings involving work injuries or accidental deaths. Material in this publication is in the public domain and, with appropriate credit, may be repro­ duced without permission. Comments about the contents of this publication and suggestions for im­ proving it are welcome. 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 telephone: (202) 691-5200; Federal Relay Service: (800) 877-8339.  iii   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Contents Meeting and convention planners......................................... 114 Tax examiners, collectors, and revenue agents.................... 118  Special Features  Professional and related occupations  Tomorrow’s Jobs............................................................... 1 Sources of Career Information.................................... 10 Sources of Education, Training, and Financial Aid.........................................................15 Finding and Applying for Jobs and Evaluating Offers................................................18 Occupational Information Included in the Handbook.......................................................... 23 Data for Occupations Not Studied in Detail............ 843 Assumptions and Methods Used in Preparing Employment Projections................. 857 Occupational Information Network Coverage........859 Index................................................................................ 867  Computer and mathematical occupations Actuaries..................................................................................123 Computer programmers...........................................................126 Computer scientists and database administrators ................ 129 Computer software engineers............................................... 133 Computer support specialists and systems administrators... 136 Computer systems analysts..................................................... 140 Mathematicians.........................................................................142 Operations research analysts................................................... 145 Statisticians............................................................................... 147 Architects, surveyors, and cartographers Architects, except landscape and naval.................................. 150 Landscape architects................................................................153 Surveyors, cartographers, photogrammetrists, and surveying technicians.................................................... 156  Occupational Coverage  Engineers ................................................................................ 160  Management, business, and financial occupations  Drafters and engineering technicians Drafters..................................................................................... 170 Engineering technicians...........................................................173  Management occupations Administrative services managers............................................27 Advertising, marketing, promotions, public relations, and sales managers................................................ 30 Computer and information systems managers.........................33 Construction managers............................................................... 36 Education administrators...........................................................39 Engineering and natural sciences managers............................43 Farmers, ranchers, and agricultural managers.........................46 Financial managers.....................................................................50 Food service managers............................................................... 53 Funeral directors.........................................................................56 Human resources, training, and labor relations managers and specialists.........................................59 Industrial production managers................................................. 65 Lodging managers.......................................................................67 Medical and health services managers..................................... 70 Property, real estate, and community association managers.............................................................. 73 Purchasing managers, buyers, and purchasing agents............76 Top executives............................................................................. 80  Life scientists Agricultural and food scientists..............................................177 Biological scientists................................................................. 181 Conservation scientists and foresters..................................... 185 Medical scientists..................................................................... 189 Physical scientists Atmospheric scientists.............................................................193 Chemists and materials scientists............................................196 Environmental scientists and hydrologists.............................199 Geoscientists............................................................................ 203 Physicists and astronomers.....................................................206 Social scientists and related occupations Economists...............................................................................210 Market and survey researchers................................................213 Psychologists............................................................................ 215 Urban and regional planners...................................................219 Social scientists, other..............................................................222 Science technicians................................................................226  Business and financial operations occupations Accountants and auditors...........................................................83 Appraisers and assessors of real estate.................................... 88 Budget analysts...........................................................................92 Claims adjusters, appraisers, examiners, and investigators......................................................................95 Cost estimators............................................................................ 99 Financial analysts and personal financial advisors................102 Insurance underwriters............................................................. 106 Loan officers............................................................................. 109 Management analysts............................................................... Ill  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Community and social services occupations Counselors.................................................................................231 Health educators...................................................................... 235 Probation officers and correctional treatment specialists.... 238 Social and human service assistants...................................... 240 Social workers.......................................................................... 243 Legal occupations Court reporters......................................................................... 246 Judges, magistrates, and other judicial workers.................... 250  v  Lawyers..................................................................................... 253 Paralegals and legal assistants................................................. 257  Health technologists and technicians Athletic trainers.........................................................................393 Cardiovascular technologists and technicians........................396 Clinical laboratory technologists and technicians................. 399 Dental hygienists...................................................................... 402 Diagnostic medical sonographers...........................................404 Emergency medical technicians and paramedics.................. 406 Licensed practical and licensed vocational nurses................ 409 Medical records and health information technicians............411 Nuclear medicine technologists.............................................. 413 Occupational health and safety specialists and technicians..................................................................... 416 Opticians, dispensing............................................................... 419 Pharmacy technicians............................................................... 421 Radiologic technologists and technicians..............................424 Surgical technologists.............................................................. 426 Veterinary technologists and technicians............................... 428  Education, training, library, and museum occupations Archivists, curators, and museum technicians.......................261 Instmctional coordinators........................................................264 Librarians.................................................................................. 266 Library technicians................................................................... 269 Teacher assistants......................................................................272 Teachers—adult literacy and remedial education................. 274 Teachers—postsecondary.........................................................277 Teachers—preschool, kindergarten, elementary, middle, and secondary..........................................................282 Teachers—self-enrichment education.....................................287 Teachers—special education................................................... 289 Art and design occupations Artists and related workers......................................................292 Commercial and industrial designers......................................296 Fashion designers......................................................................298 Floral designers.........................................................................301 Graphic designers......................................................................303 Interior designers......................................................................306  Service occupations Healthcare support occupations Dental assistants........................................................................431 Massage therapists................................................................... 433 Medical assistants.................................................................... 436 Medical transcriptionists..........................................................438 Nursing, psychiatric, and home health aides.........................441 Occupational therapist assistants and aides...........................444 Pharmacy aides.........................................................................446 Physical therapist assistants and aides....................................448  Entertainers and performers, sports and related occupations Actors, producers, and directors............................................. 309 Athletes, coaches, umpires, and related workers.................. 313 Dancers and choreographers....................................................317 Musicians, singers, and related workers................................ 319 Media and communication-related occupations Announcers............................................................................... 322 Broadcast and sound engineering technicians and radio operators................................................................................ 324 Interpreters and translators.......................................................327 News analysts, reporters, and correspondents.......................332 Photographers...........................................................................335 Public relations specialists.......................................................338 Television, video, and motion picture camera operators and editors.............................................................................341 Writers and editors....................................................................343  Protective service occupations Correctional officers................................................................. 450 Fire fighting occupations..........................................................453 Police and detectives................................................................ 456 Private detectives and investigators.........................................460 Security guards and gaming surveillance officers................. 464 Food preparation and serving related occupations Chefs, cooks, and food preparation workers..........................467 Food and beverage serving and related workers................... 472 Building and grounds cleaning and maintenance occupations Building cleaning workers.......................................................476 Grounds maintenance workers................................................ 479 Pest control workers................................................................. 482  Health diagnosing and treating practitioners Audiologists..............................................................................347 Chiropractors.............................................................................349 Dentists..................................................................................... 351 Dietitians and nutritionists.......................................................354 Occupational therapists............................................................ 357 Optometrists..............................................................................359 Pharmacists............................................................................... 361 Physical therapists.....................................................................364 Physician assistants.................................................................. 366 Physicians and surgeons...........................................................369 Podiatrists.................................................................................. 372 Radiation therapists.................................................................. 375 Recreational therapists............................................................. 377 Registered nurses..................................................................... 379 Respiratory therapists............................................................... 385 Speech-language pathologists................................................. 387 Veterinarians.............................................................................390  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Personal care and service occupations Animal care and service workers............................................485 Barbers, cosmetologists, and other personal appearance workers.................................................................................. 489 Child care workers................................................................... 491 Fitness workers.........................................................................494 Flight attendants........................................................................498 Gaming services occupations.................................................. 501 Personal and home care aides................................................. 504 Recreation workers.................................................................. 506  Sales and related occupations Advertising sales agents....................................................... 509 Cashiers.................................................................................... 512  vi  Counter and rental clerks.........................................................514 Demonstrators, product promoters,and models.....................516 Insurance sales agents.............................................................. 520 Real estate brokers and sales agents.......................................523 Retail salespersons................................................................... 527 Sales engineers..........................................................................529 Sales representatives, wholesaleand manufacturing............. 532 Sales worker supervisors..........................................................535 Securities, commodities, and financial services sales agents............................................................................ 538 Travel agents............................................................................. 543  Farming, fishing, and forestry occupations Agricultural workers................................................................616 Fishers and fishing vessel operators....................................... 619 Forest, conservation, and logging workers............................622  Construction trades and related workers Boilermakers.............................................................................627 Brickmasons, blockmasons, and stonemasons...................... 629 Carpenters.................................................................................632 Carpet, floor, and tile installers and finishers........................ 635 Cement masons, concrete finishers, segmental pavers, and terrazzo workers........................................................... 639 Construction and building inspectors.....................................642 Construction equipment operators......................................... 646 Construction laborers.............................................................. 649 Dry wall installers, ceiling tile installers, and tapers.............651 Electricians................................................................................654 Elevator installers and repairers............................................. 657 Glaziers..................................................................................... 660 Hazardous materials removal workers...................................662 Insulation workers.................................................................... 666 Painters and paperhangers....................................................... 668 Pipelayers, plumbers, pipefitters, and steamfitters................671 Plasterers and stucco masons..................................................675 Roofers...................................................................................... 677 Sheet metal workers.................................................................679 Structural and reinforcing iron and metal workers...............682  Office and administrative support occupations Financial clerks Bill and account collectors...................................................... 546 Billing and posting clerks and machine operators................ 548 Bookkeeping, accounting, and auditing clerks..................... 550 Gaming cage workers............................................................... 552 Payroll and timekeeping clerks............................................... 553 Procurement clerks....................................................................556 Tellers......................................................................................... 557 Information and record clerks Brokerage clerks.......................................................................560 Credit authorizers, checkers, and clerks................................ 561 Customer service representatives............................................563 File clerks.................................................................................. 566 Hotel, motel, and resort desk clerks........................................568 Human resources assistants, except payroll and timekeeping...........................................................................570 Interviewers............................................................................... 572 Library assistants, clerical........................................................574 Order clerks............................................................................... 576 Receptionists and information clerks......................................578 Reservation and transportation ticket agents and travel clerks............................................ 579  Installation, maintenance, and repair occupations Electrical and electronic equipment mechanics, installers, and repairers Computer, automated teller, and office machine repairers.................................................................................686 Electrical and electronics installers and repairers.................688 Electronic home entertainment equipment installers and repairers........................................................692 Radio and telecommunications equipment installers and repairers........................................................693  Material recording, scheduling, dispatching, and distributing occupations Cargo and freight agents..........................................................582 Couriers and messengers..........................................................583 Dispatchers................................................................................ 585 Meter readers, utilities............................................................. 587 Postal Service workers............................................................. 589 Production, planning, and expediting clerks..........................592 Shipping, receiving, and traffic clerks................................... 593 Stock clerks and order fillers................................................... 595 Weighers, measurers, checkers, and samplers, recordkeeping........................................................................597  Vehicle and mobile equipment mechanics, installers, andrepairers Aircraft and avionics equipment mechanics and service technicians........................................................ 697 Automotive body and related repairers..................................701 Automotive service technicians and mechanics.................... 704 Diesel service technicians and mechanics............................ 707 Heavy vehicle and mobile equipment service technicians and mechanics..................................................710 Small engine mechanics.......................................................... 714  Other office and administrative support occupations Communications equipment operators.................................. 598 Computer operators.................................................................. 601 Data entry and information processing workers................... 603 Desktop publishers................................................................... 605 Office and administrative support worker supervisors and managers.........................................................................608 Office clerks, general............................................................... 610 Secretaries and administrative assistants............................... 612  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Other installation, maintenance, and repair occupations Coin, vending, and amusement machine servicers and repairers..................................................... 716 Heating, air-conditioning, and refrigeration mechanics and installers...................................................... 718 Home appliance repairers....................................................... 722 Industrial machinery mechanics and maintenance workers......................................................... 725 Line installers and repairers....................................................728  vii  Maintenance and repair workers, general.............................. 731 Millwrights................................................................................733 Precision instrument and equipment repairers.......................735 Production occupations Assemblers and fabricators................................................. 740 Food processing occupations............................................... 744 Metal workers and plastic workers Computer control programmers and operators......................748 Machinists................................................................................. 751 Machine setters, operators, and tenders—metal and plastic..............................................................................754 Tool and die makers................................................................. 758 Welding, soldering, and brazing workers............................... 760 Printing occupations Bookbinders and bindery workers..........................................763 Prepress technicians and workers........................................... 765 Printing machine operators......................................................768 Textile, apparel, and furnishings occupations.................. 771 Woodworkers...........................................................................775 Plant and system operators Power plant operators, distributors, and dispatchers............. 778 Stationary engineers and boiler operators.............................. 780 Water and liquid waste treatment plant and system operators................................................................... 783   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Other production occupations Inspectors, testers, sorters, samplers, and weighers..............786 Jewelers and precious stone and metal workers.................... 789 Medical, dental, and ophthalmic laboratory technicians.... 792 Painting and coating workers, except construction and maintenance.............................................796 Photographic process workers and processing machine operators................................................................. 799 Semiconductor processors.......................................................801 Transportation and material moving occupations Air transportation occupations Aircraft pilots and flight engineers.........................................804 Air traffic controllers................................................................ 807 Motor vehicle operators Bus drivers................................................................................ 811 Taxi drivers and chauffeurs......................................................815 Truck drivers and driver/sales workers...................................818 Rail transportation occupations..........................................822 Water transportation occupations.......................................826 Material moving occupations............................................... 830 Job Opportunities in the Armed Forces..................... 834   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  L   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Additional Information About the 2006-16 Projections Readers interested in more information about the projections; about the methods and assumptions that underlie them; or about details on economic growth, the labor force, or industry and occupational employment, should consult the November 2007 Monthly Labor Review, or the Fall 2007 Occupational Outlook Quarterly. For more information about employment change, job openings, earnings, unemployment rates, and training requirements by occupation, consult Occupational Projections and Training Data, 2008-09 Edition, BLS Bulletin 2702. 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, 2008-09 Edition, BLS Bulletin 2701.  x  Tomorrow’s Jobs Making informed career decisions requires reliable information about opportunities in the future. Opportunities result from the relationships between the population, labor force, and the de­ mand for goods and services. Population ultimately limits the size of the labor force—indi­ viduals working or looking for work—which limits the goods and services that can be produced. Demand for various goods and services is largely responsible for employment in the indus­ tries providing them. Employment opportunities, in turn, result from demand for skills needed within specific industries. Op­ portunities for medical assistants and other healthcare occupa­ tions, for example, have surged in response to rapid growth in demand for health services. Examining the past and present, and projecting changes in these relationships is the foundation of the Occupational Out­ look Program. This chapter 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 additional information about the projections appear on the preceding page.  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. civilian noninstitutional population is expected to increase by 21.8 million over the 2006-2016 period (chart 1). The 2006-2016 rate of growth is slower than the growth rate  Chart 1. Numeric change in the population and labor force, 1986-96, 1996-2006, and projected 2006-16  over the 1986-1996 and 1996-2006 periods—9 percent, 11 per­ cent, and 13 percent, respectively. Continued growth, however, will mean more consumers of goods and services, spurring de­ mand for workers in a wide range of occupations and industries. The effects of population growth on various occupations will differ. The differences are partially accounted for by the age distribution of the future population. As the baby boomers continue to age, the 55 to 64 age group will increase by 30.3 percent or 9.5 million persons, more than any other group. The 35 to 44 age group will decrease by 5.5 percent, reflecting a slowed birth rate following the baby boom generation, while the youth population, aged 16 to 24, will de­ cline 1.1 percent over the 2006-2016 period. Minorities and immigrants will constitute a larger share of the U.S. population in 2016. The number of Asians and people of Hispanic origin are projected to continue to grow much faster than other racial and ethnic groups.  Labor force Population is the single most important factor in determining the size and composition of the labor force—people either working or looking for work. The civilian labor force is projected to in­ crease by 12.8 million, or 8.5 percent, to 164.2 million over the 2006-2016 period. The U.S. workforce will become more diverse by 2016. White, non-Hispanic persons will continue to make up a de­ creasing share of the labor force, falling from 69.1 percent in 2006 to 64.6 percent in 2016 (chart 2). However, despite relaChart 2. Percent of labor force by race and ethnic origin, 2006 and projected 2016 Percent of labor force 100 r  Increase (in millions) | Labor force  30 r­  □  25 “  20  Civilian noninstitutional population  “  White  Black  Asian  All other Other than Hispanic racial Hispanic origin groups origin  Race and ethnic origin 1986-96   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1996-2006 Period  2006-16  Note: The four race groups add to the total labor force. The two ethnic 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, 2006 and projected 2016 Percent of labor force  Chart 4. Numeric change in wage and salary employment, service-providing industry divisions, 1996-2006 and projected 2006-16  30 Increase (in millions) Education and health services 25 Professional and business services  20 Leisure and hospitality 1996-2006 15 Trade, transportation and utilities  10  Financial activities  5  Other services (except government)  2006-16  Government  0  16 to 24 years  25 to 34 years  35 to 44 years  45 to 54 years  55 years and older  Information  _________________________________ Age Group________________________________  tively slow growth, white non-Hispanics will remain the over­ whelming majority of the labor force. Hispanics are projected be the fastest growing ethnic group, growing by 29.9 percent. By 2016, Hispanics will continue to constitute an increasing proportion of the labor force, growing from 13.7 percent to 16.4 percent. Asians are projected to account for an increasing share of the labor force by 2016, growing from 4.4 to 5.3 percent. Blacks will also increase their share of the labor force, growing from 11.4 percent to 12.3 percent. The numbers of men and women in the labor force will grow, but the number of women will grow at a slightly faster rate than the number of men. The male labor force is projected to grow by 8.0 percent from 2006 to 2016, compared with 8.9 percent for women, down from 12.7 and 13.4 percent, respectively, from 1996 to 2006. As a result, men’s share of the labor force is expected to decrease from 53.7 to 53.4 percent, while women’s share is expected to increase from 46.3 to 46.6 percent. The youth labor force, aged 16 to 24, is expected to decrease its share of the labor force to 12.7 percent by 2016. The primary working age group, between 25 and 54 years old, is projected to decline from 68.4 percent of the labor force in 2006 to 64.6 percent by 2016. Workers 55 and older, on the other hand, are projected to leap from 16.8 percent to 22.7 percent of the labor force between 2006 and 2016 (chart 3). The aging of the baby boom generation will cause not only an increase in the percent­ age of workers in the oldest age category, but a decrease in the percentage of younger workers.  Employment Total employment is expected to increase from 150.6 million in 2006 to 166.2 million in 2016, or by 10 percent. The 15.6 mil­ lion jobs that will be added by 2016 will not be evenly distrib­ uted across major industrial and occupational groups. Changes in consumer demand, technology, and many other factors will   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  contribute to the continually changing employment structure in the U.S. economy. The following two sections examine projected employment change from industrial and occupational perspectives. The in­ dustrial 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 agriculture, 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 sal­ ary, self-employed, and unpaid family workers. Of the roughly 150 million jobs in the U.S. economy in 2006, wage and sal­ ary workers accounted for 138.3 million, self-employed work­ ers accounted for 12.2 million, and unpaid family workers ac­ counted for about 130,000. Secondary employment accounted for 1.8 million jobs. Self-employed workers held nearly 9 out of 10 secondary jobs and 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 con­ tinue. Service-providing industries are expected to account for approximately 15.7 million new wage and salary jobs generated over the 2006-2016 period (chart 4), while goods-producing in­ dustries will see overall job loss. Education and health services. This industry supersector is projected to grow by 18.8 percent, and add more jobs, nearly 5.5 million, than any other industry supersector. More than 3 out of every 10 new jobs created in the U.S. economy will be in either the healthcare and social assistance or public and private educational services sectors.  Tomorrow's Jobs 3  Healthcare and social assistance—including public and pri­ vate hospitals, nursing and residential care facilities, and indi­ vidual and family services—will grow by 25.4 percent and add 4 million new jobs. Employment growth will be driven by in­ creasing 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. Public and private educational services will grow by 10.7 percent and add 1.4 million new jobs through 2016. Rising stu­ dent enrollments at all levels of education will create demand for educational services. Professional and business services. This industry supersec­ tor, which includes some of the fastest growing industries in the U.S. economy, will grow by 23.3 percent and add 4.1 million new jobs. Employment in administrative and support and waste man­ agement and remediation services will grow by 20.3 percent and add 1.7 million new jobs to the economy by 2016. The larg­ est industry growth in this sector will be enjoyed by employ­ ment services, which will be responsible for 692,000 new jobs, or over 40 percent of all new jobs in administrative and support and waste management and remediation services. Employment services ranks second among industries with the most new em­ ployment opportunities in the Nation and is expected to have a growth rate that is faster than the average for all industries. This will be due to the need for seasonal and temporary workers and for highly specialized human resources services. Employment in professional, scientific, and technical ser­ vices will grow by 28.8 percent and add 2.1 million new jobs by 2016. Employment in computer systems design and related services will grow by 38.3 percent and add nearly one-fourth of all new jobs in professional, scientific, and technical services. Employment growth will be driven by the increasing reliance of businesses on information technology and the continuing importance of maintaining system and network security. Man­ agement, scientific, and technical consulting services also will grow at a staggering 78 percent and account for another third of growth in this supersector. Demand for these services will be spurred by the increased use of new technology and computer software and the growing complexity of business. Management of companies and enterprises will grow by 14.9 percent and add 270,000 new jobs. Information. Employment in the information supersector is expected to increase by 6.9 percent, adding 212,000 jobs by 2016. Information contains some of the fast-growing com­ puter-related industries such as software publishing, Internet publishing and broadcasting, and wireless telecommunication carriers. Employment in these industries is expected to grow by 32 percent, 44.1 percent, and 40.9 percent, respectively. The in­ formation supersector also includes motion picture production; broadcasting; and newspaper, periodical, book, and directory publishing. Increased demand for telecommunications services, cable service, high-speed Internet connections, and software will fuel job growth among these industries. Leisure and hospitality. Overall employment will grow by 14.3 percent. Arts, entertainment, and recreation will grow by 30.9 percent and add 595,000 new jobs by 2016. Most of these   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  new job openings, 79 percent, will be in the amusement, gam­ bling, and recreation sector. Job growth will stem from public participation in arts, entertainment, and recreation activities— reflecting increasing incomes, leisure time, and awareness of the health benefits of physical fitness. Accommodation and food services is expected to grow by 11.4 percent and add 1.3 million new jobs through 2016. Job growth will be concentrated in food services and drinking plac­ es, reflecting increases in population, dual-income families, and the convenience of many new food establishments. Trade, transportation, and utilities. Overall employment in this industry supersector will grow by 6 percent between 2006 and 2016. Transportation and warehousing is expected to in­ crease by 496,000 jobs, or by 11.1 percent through 2016. Truck transportation will grow by 11 percent, adding 158,000 new jobs, while rail transportation is projected to decline. The ware­ housing and storage sector is projected to grow rapidly at 23.5 percent, adding 150,000 jobs. Demand for truck transportation and warehousing services will expand as many manufacturers concentrate on their core competencies and contract out their product transportation and storage functions. Employment in retail trade is expected to increase by 4.5 per­ cent. Despite slower than average growth, this industry will add almost 700,000 new jobs over the 2006-2016 period, growing from 15.3 million employees to 16 million. While consumers will continue to demand more goods, consolidation among gro­ cery stores and department stores will temper growth. Whole­ sale trade is expected to increase by 7.3 percent, growing from 5.9 million to 6.3 million jobs. Employment in utilities is projected to decrease by 5.7 per­ cent through 2016. Despite increased output, employment in electric power generation, transmission, and distribution and natural gas distribution is expected to decline through 2016 due to improved technology that increases worker productivity. However, employment in water, sewage, and other systems is expected to increase 18.7 percent by 2016. Jobs are not eas­ ily eliminated by technological gains in this industry because water treatment and waste disposal are very labor-intensive ac­ tivities. Financial activities. Employment is projected to grow 14.4 percent over the 2006-2016 period. Real estate and rental and leasing is expected to grow by 18 percent and add 392,000 jobs by 2016. Growth will be due, in part, to increased demand for housing as the population grows. The fastest growing industry in the real estate and rental and leasing services sector will be activities related to real estate, such as property management and real estate appraisal, which will grow by 29 percent—rem­ nants of the housing boom that pervaded much of the first half of the decade. Finance and insurance are expected to add 815,000 jobs, an increase of 13.2 percent, by 2016. Employment in securities, commodity contracts, and other financial investments and re­ lated activities is expected to grow 46 percent by 2016, reflect­ ing the increased number of baby boomers in their peak sav­ ings years, the growth of tax-favorable retirement plans, and the globalization of the securities markets. Employment in credit intermediation and related services, including banks, will grow by 8.2 percent and add almost one-third of all new jobs within  4 Occupational Outlook Handbook  Chart 5. Numeric change in wage and salary employment, goods-producing industry divisions, 1996-2006 and projected 2006-16  Chart 6. Percent change in total employment by major occupational group, projected 2006-16  Professional and related  Construction  Service  1996-2006  Natural resources and mining  [] 2006-16  Management, business, and financial  Construction and extraction Agriculture, forestry, and fishin Installation, maintenance, and repair  Sales and related Manufacturing  -i------- 1------- 1------- 1--------1--------1_____ _____ iii  -3-2-10  1  Office and administrative support  i  2  Millions  finance and insurance. Insurance carriers and related activities are expected to grow by 7.4 percent and add 172,000 new jobs by 2016. The number of jobs within agencies, brokerages, and other insurance related activities is expected to grow about 15.4 percent. Growth will stem from the needs of an increasing pop­ ulation and new insurance products on the market. Government. Between 2006 and 2016, government employ­ ment, not including employment in public education and hospi­ tals, is expected to increase by 4.8 percent, from 10.8 million to 11.3 million jobs. Growth in government employment will be fueled by an increased demand for pubic safety, but dampened by budgetary constraints and outsourcing of government jobs to the private sector. State and local governments, excluding edu­ cation and hospitals, are expected to grow by 7.7 percent as a result of the continued shift of responsibilities from the Federal Government to State and local governments. Federal Govern­ ment employment, including the Postal Service, is expected to decrease by 3.8 percent.  Other services (except government and private households). Employment will grow by 14.9 percent. About 2 out of every 5 new jobs in this supersector will be in religious organizations, which are expected to grow by 18.9 percent. Other automotive repair and maintenance will be the fastest growing industry at 40.7 percent, reflecting demand for quick maintenance services for the increasing number of automobiles on the Nation’s roads. Also included among other services are business, professional, labor, political, and similar organizations, which are expected to increase by 13.6 percent and add 68,000 new jobs. This in­ dustry includes homeowner, tenant, and property owner asso­ ciations. Goods-producing industries. Employment in the goods-pro­ ducing industries has been relatively stagnant since the early 1980s. Overall, this sector is expected to decline 3.3 percent over the 2006-2016 period. Although employment is expected to decline overall, projected growth among goods-producing industries varies considerably (chart 5).  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Transportation and material moving  Farming, fishing, and forestry  Production  Percent change  Construction. Employment in construction is expected to in­ crease by 10.2 percent, from 7.7 million to 8.5 million. Demand for commercial construction and an increase in road, bridge, and tunnel construction will account for the bulk of job growth in this supersector. Manufacturing. While overall employment in this supersec­ tor will decline by 10.6 percent or 1.5 million jobs, employment in a few detailed manufacturing industries will increase. For ex­ ample, employment in pharmaceutical and medicine manufac­ turing is expected to grow by 23.8 percent and add 69,000 new jobs by 2016. However, productivity gains, job automation, and international competition will adversely affect employment in most manufacturing industries. Employment in household ap­ pliance manufacturing is expected to decline by 25.8 percent and lose 21,000 jobs over the decade. Similarly, employment in machinery manufacturing, apparel manufacturing, and com­ puter and electronic product manufacturing will decline by 146,000, 129,000, and 157,000 jobs, respectively. Agriculture, forestry, fishing, and hunting. Overall employ­ ment in agriculture, forestry, fishing, and hunting is expected to decrease by 2.8 percent. Employment is expected to continue to decline due to rising costs of production, increasing consolida­ tion, and more imports of food and lumber. The only industry within this supersector expected to grow is support activities for agriculture and forestry, which includes farm labor contrac­ tors and farm management services. This industry is expected to grow by 10.5 percent and add 12,000 new jobs. Crop produc­ tion will see the largest job loss, with 98,000 fewer jobs in 2016 than in 2006.  Tomorrow's Jobs 5  Mining. Employment in mining is expected to decrease 1.6 percent, or by some 10,000 jobs, by 2016. Employment in sup­ port activities for mining will be responsible for most of the employment decline in this industry, seeing a loss of 17,000 jobs. Other mining industries, such as coal mining and metal ore mining, are expected to see little or no change or a small increase in employment. Employment stagnation in these in­ dustries is attributable mainly to technology gains that boost worker productivity and strict environmental regulations.  Occupation Expansion of service-providing industries is expected to contin­ ue, creating demand for many occupations. However, projected job growth varies among major occupational groups (chart 6). Professional and related occupations. These occupations include a wide variety of skilled professions. Professional and related occupations will be one of the two fastest growing ma­ jor occupational groups, and will add the most new jobs. Over the 2006-2016 period, a 16.7-percent increase in the number of professional and related jobs is projected, which translates into nearly 5 million new jobs. Professional and related workers perform a wide variety of duties, and are employed throughout private industry and government. Almost three-quarters of the job growth will come from three groups of professional occu­ pations—computer and mathematical occupations, healthcare practitioners and technical occupations, and education, train­ ing, and library occupations—which together will add 3.5 mil­ lion jobs. Service occupations. Duties of service workers range from fighting fires to cooking meals. Employment in service occupa­ tions is projected to increase by 4.8 million, or 16.7 percent, the second largest numerical gain and tied with professional and related occupations for the fastest rate of growth among the major occupational groups. Food preparation and serving re­ lated occupations are expected to add the most jobs among the service occupations, 1.4 million, by 2016. However, healthcare support occupations and personal care and service occupations are expected to grow the fastest, at 26.8 percent and 22 percent, respectively. Combined, these two occupational groups will ac­ count for 2.1 million new jobs. Management, business, andfinancial occupations. Workers in management, business, and financial occupations plan and direct the activities of business, government, and other organi­ zations. Their employment is expected to increase by 1.6 mil­ lion, or 10.4 percent, by 2016. Among management occupa­ tions, the numbers of social and community service mangers and gaming managers will grow the fastest, by 24.7 percent and 24.4 percent, respectively. Construction managers will add the most new jobs—77,000—by 2016. Farmers and ranchers are the only workers whose numbers are expected to see a large decline, losing 90,000 jobs. Among business and financial oc­ cupations, accountants and auditors and all other business op­ eration specialists will add the most jobs, 444,000 combined. Financial analysts and personal financial advisors will be the fastest growing occupations in this group, with growth rates of 33.8 percent and 41 percent, respectively. Construction and extraction occupations. Construction and extraction workers build new residential and commercial build­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Chart 7. Percent change in employment in occupa­ tions projected to grow fastest, 2006-16 Network systems and data communications analysts Personal and home care aides  Home health aides Computer software engineers, applications Veterinary technologists and technicians Personal financial advisors Makeup artists, theatrical and performance Medical assistants  Veterinarians Substance abuse and behavioral disorder counselors Skin care specialists  Financial analysts  Social and human service assistants Gaming surveillance officers and gaming investigators Physical therapist assistants  Pharmacy technicians  Forensic science technicians  Dental hygienists  Mental health counselors Mental health and substance abuse social workers  0  10  20  30  40  50  Percent change  ings, and also work in mines, quarries, and oil and gas fields. Employment of these workers is expected to grow 9.5 percent, adding 785,000 new jobs. Construction trades and related workers will account for nearly 4 out of 5 of these new jobs, or 622,000, by 2016. Minor declines in extraction occupations will reflect overall employment stagnation in the mining and oil and gas extraction industries. Installation, maintenance, and repair occupations. Work­ ers in installation, maintenance, and repair occupations install new equipment and maintain and repair older equipment. These occupations will add 550,000 jobs by 2016, growing by 9.3 per­ cent. Automotive service technicians and mechanics and gen­ eral maintenance and repair workers will account for close to  6 Occupational Outlook Handbook  Chart 8. Occupations with the largest numerical increases in employment, projected 2006-16  Registered nurses  Retail salespersons Customer service representatives Combined food preparation and serving workers, including fast food Office clerks, general  Personal and home care aides  Home health aides  Postsecondary teachers Janitors and cleaners, except maids and housekeeping cleaners Nursing aides, orderlies, and attendants Bookkeeping, accounting, and auditing clerks Waiters and waitresses  Child care workers Executive secretaries and administrative assistants Computer software engineers, applications Accountants and auditors Landscaping and groundskeeping workers Business operation specialists, all other Elementary school teachers, except special education Receptionists and information clerks  Increase (in thousands)  half of all new installation, maintenance, and repair jobs. The fastest growth rate will be among locksmiths and safe repairers, an occupation that is expected to grow 22.1 percent over the 2006-2016 period. Transportation and material moving occupations. Transpor­ tation and material moving workers transport people and mate­ rials by land, sea, or air. Employment of these workers should increase by 4.5 percent, accounting for 462,000 new jobs by 2016. Among transportation occupations, motor vehicle opera­ tors will add the most jobs, 368,000. Material moving occupa­ tions will decline slightly, 0.5 percent, losing 25,000 jobs. Sales and related occupations. Sales and related workers so­ licit goods and services to businesses and consumers. Sales and  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  related occupations are expected to add 1.2 million new jobs by 2016, growing by 7.6 percent. Retail salespersons will contrib­ ute the most to this grow by adding 557,000 new jobs. Office and administrative support occupations. Office and administrative support workers perform the day-to-day activi­ ties of the office, such as preparing and filing documents, deal­ ing with the public, and distributing information. Employment in these occupations is expected to grow by 7.2 percent, adding 1.7 million new jobs by 2016. Customer service representatives will add the most new jobs, 545,000, while stock clerks and order fillers is expected to see the largest employment decline among all occupations, losing 131,000 jobs. Farming, fishing, and forestry occupations. Farming, fish­ ing, and forestry workers cultivate plants, breed and raise live­ stock, and catch animals. These occupations will decline 2.8 percent and lose 29,000 jobs by 2016. Agricultural workers, in­ cluding farmworkers and laborers, will account for nearly 3 out of 4 lost jobs in this group. The number of fishing and hunting workers is expected to decline by 16.2 percent, while the num­ ber of forest, conservation, and logging workers is expected to decline by 1.4 percent. Production occupations. Production workers are employed mainly in manufacturing, where they assemble goods and oper­ ate plants. Production occupations are expected to decline by 4.9 percent, losing 528,000 jobs by 2016. Some jobs will be created in production occupations, mostly in food processing and woodworking. Metal workers and plastic workers; assem­ blers and fabricators; textile, apparel, and furnishings occupa­ tions; and other production workers will account for most of the job loss among production occupations. Among all occupations in the economy, healthcare occupa­ tions are expected to make up 7 of the 20 fastest growing occu­ pations, the largest proportion of any occupational group (chart 7). These 7 healthcare occupations, in addition to exhibiting high growth rates, will add nearly 750,000 new jobs between 2006 and 2016. Other occupational groups that have more than one occupation in the 20 fastest growing occupations are computer occupations, personal care and service occupations, community and social services occupations, and business and financial op­ erations occupations. High growth rates among occupations in the top 20 fastest growing occupations reflect projected rapid growth in the health care and social assistance industries and the professional, scientific, and technical services industries. The 20 occupations listed in chart 8 will account for more than one-third of all new jobs, 6.6 million combined, over the 2006-2016 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 oc­ cupations will account for some of these increases in employ­ ment, as will occupations in education, sales, and food service. Occupations in office and administrative services will grow by 1.7 million jobs, one-fourth of the job growth among the 20 oc­ cupations with the largest job growth. Many of the occupations listed below are very large, and will create more new jobs than will those with high growth rates. Only 3 out of the 20 fastest growing occupations—home health aides, personal and home care aides, and computer software application engineers—also  Tomorrow's Jobs 7  Chart 9. Occupations with the largest numerical decreases in employment, projected 2006-16  Chart 10. Number of jobs due to growth and replacement needs by major occupational group, projected 2006-16  Stock clerks and order fillers Service Cashiers, except gaming  Packers and packagers, hand  File clerks  Professional and related  Office and administrative support  Farmers and ranchers Sales and related Order clerks  Sewing machine operators Electrical and electronic equipment assemblers  Management, business, and financial Transportation and material moving | Growth  Cutting, punching, and press machine setters, operators, and tenders, metal and plastic  Replacement needs Production  Telemarketers Construction and extraction Inspectors, testers, sorters, samplers, and weighers First-line supervisors/managers of production and operating workers Computer operators  Installation, maintenance, and repair Farming, fishing, and forestry  Information and record clerks, all other Millions of jobs Office and administrative support workers, all other All other assemblers and fabricators Photographic processing machine operators Driver/sales workers  Machine feeders and offbearers Packaging and filling machine operators and tenders  office and administrative occupations that are expected to ex­ perience the largest declines and those that are expected to see the largest increases is the extent to which job functions can be easily automated or performed by other workers. For instance, the duties of executive secretaries and administrative assistants involve a great deal of personal interaction that cannot be au­ tomated, while the duties of file clerks—adding, locating, and removing business records—can be automated or performed by other workers.  Education and training Decrease (in thousands)  are projected to be among the 20 occupations with the largest numerical increases in employment. Declining occupational employment stems from declining industry employment, technological advances, changes in busi­ ness practices, and other factors. For example, installation of self-checkouts and other forms of automation will increase pro­ ductivity and are expected to contribute to a decline of 118,000 cashiers over the 2006-2016 period (chart 9). Fourteen of the 20 occupations with the largest numerical decreases are either production occupations or office and administrative support oc­ cupations, which are affected by increasing plant and factory automation and the implementation of office technology that reduces the need for these workers. The difference between the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  For 12 of the 20 fastest growing occupations, an associate de­ gree or higher is the most significant level of postsecondary education or training. On-the-job training is the most signifi­ cant level of postsecondary education or training for another 6 of the 20 fastest growing occupations. In contrast, on-the-job training is the most significant level of postsecondary education or training for 12 of the 20 occupations with the largest numeri­ cal increases, while 6 of these 20 occupations have an associate degree or higher as the most significant level of postsecondary education or training. On-the-job training is the most significant level of postsecondary education or training for 19 of the 20 oc­ cupations with the largest numerical decreases. Table 1 lists the fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2006 and 2016, by level of postsecondary education or training.  8 Occupational Outlook Handbook  Total job openings Job openings stem from both employment growth and replace­ ment needs (chart 10). Replacement needs arise as workers leave occupations. Some transfer to other occupations while others retire, return to school, or quit to assume household respon­ sibilities. Replacement needs are projected to account for 68 percent of the approximately 50 million job openings between 2006 and 2016. Thus, even occupations projected to experience slower than average growth or to decline in employment still may offer many job openings. Service occupations are projected to have the largest number of total job openings, 12.2 million, and 60 percent of those will be due to replacement needs. A large number of replacements will be necessary as young workers 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. Professional and related occupations are projected to be one of the two fastest growing major occupational groups, and are   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  expected to add more jobs than any other major occupational group, about 5 million, by 2016. However, the majority of job openings are expected to come from more than 6 million re­ placements. Office automation will significantly affect many individual office and administrative support occupations. While these oc­ cupations are projected to grow about as fast as average, some are projected to decline rapidly. Office and administrative sup­ port occupations are projected to create 6.9 million total job openings over the 2006-2016 period, ranking third behind ser­ vice occupations and professional and related occupations. Farming, fishing, and forestry occupations and production occupations should offer job opportunities despite overall de­ clines in employment. These occupations will lose 29,000 and 528,000 jobs, respectively, but are expected to provide more than 2.4 million total job openings. Job openings among these groups will be solely due to the replacement needs of a work­ force that is exhibiting high levels of retirement and job turn­ over.  Tomorrow’s Jobs 9  Table 1. Fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2006 and 2016, by level of postsecondary education or training Occupations having the largest numerical job growth Fastest growing occupations  First-professional degree Physicians and surgeons Lawyers Pharmacists Veterinarians Dentists  Veterinarians Pharmacists Chiropractors Physicians and surgeons Optometrists  Doctoral degree  Postsecondary teachers Clinical, counseling, and school psychologists Medical scientists, except epidemiologists Computer and information scientists, research Biochemists and biophysicists  Postsecondary teachers Computer and information scientists, research Medical scientists, except epidemiologists Biochemists and biophysicists Clinical, counseling, and school psychologists  Master’s degree Clergy Physical therapists Mental health and substance abuse social workers Educational, vocational, and school counselors Rehabilitation counselors  Mental health counselors Mental health and substance abuse social workers Marriage and family counselors Physical therapists Physician assistants  Bachelor’s or higher degree, plus work experience  Actuaries Management analysts Education administrators, preschool and child care center/program Financial managers Management analysts Computer and information systems managers Training and development specialists Medical and health services managers Public relations managers Training and development specialists  Bachelor’s degree Computer software engineers, applications Accountants and auditors Business operations specialists, all other Elementary schoolteachers, except special education Computer systems analysts  Network systems and data communications analysts Computer software engineers, applications Personal financial advisors Substance abuse and behavioral disorder counselors Financial analysts  Associate degree  Registered nurses Computer support specialists Paralegals and legal assistants Dental hygienists Legal secretaries  Veterinary technologists and technicians Physical therapist assistant Dental hygienists Environmental science and protection technicians, including health Cardiovascular technologists and technicians  Postsecondary vocational award  Nursing aides, orderlies, and attendants Preschool teachers, except special education Automotive service technicians and mechanics Licensed practical and licensed vocational nurses Hairdressers, hairstylists, and cosmetologists  Makeup artists, theatrical and performance Skin care specialists Manicurists and pedicurists Fitness trainers and aerobics instructors Preschool teachers, except special education Sales representatives, services, all other Gaming managers Gamine supervisors Aircraft cargo handling supervisors Self-enrichment education teachers  Work experience in a related occupation  Executive secretaries and administrative assistants Sales representatives, services, all other Sales representatives, wholesale and manufacturing, except technical and scientific products First-line supervisors/managers of food preparation and serving workers First-line supervisors/managers of office and administrative support workers  Long-term on-the-job training  Carpenters Cooks, restaurant Police and sheriff’s patrol officers Plumbers, pipefitters, and steamfitters Electricians  Audio and video equipment technicians Interpreters and translators Athletes and sports competitors Motorboat mechanics Automotive glass installers and repairers  Moderate-term on-the-job training  Medical assistants Social and human service assistants Gaming surveillance officers and gaming investigators Pharmacy technicians Dental assistants Personal and home care aides Home health aides Gaming and sports book writers and runners Physical therapist aides and recreation attendants Digitized for Amusement FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Customer service representatives Bookkeeping, accounting, and auditing clerks Truck drivers, heavy and tractor-trailer Medical assistants Maintenance and repair workers, general  Short-term on-the-job training Retail salespersons Combined food preparation and serving workers, including fast food Office clerks, general Personal and home care aides Home health aides  Sources of Career Information This section identifies some major sources of information on careers. These sources are meant to be used in addition to those listed at the end of each Handbook statement, and may provide additional information. How to best use this information. The sources mentioned in this section offer different types of information. For example, people you know may provide very specific information be­ cause they have knowledge of you, your abilities and interests, and your qualifications. Other sources, such as those found in State Sources below, provide information on occupations in each State. Gathering information from a wide range of sources is the best way to determine what occupations may be appropri­ ate for you, and in what geographic regions these occupations are found. The sources of information discussed in this section are not exhaustive, and other sources could prove equally valu­ able in your career search.  Career information Like any major decision, selecting a career involves a lot of fact finding. Fortunately, some of the best informational resources are easily accessible. You should assess career guidance ma­ terials carefully. Information that seems out of date or glamor­ izes an occupation—overstates its earnings or exaggerates the demand for workers, for example—should be evaluated with skepticism. Gathering as much information as possible will help you make a more informed decision.  People you know. One of the best resources can be those you know, such as friends and family. They may answer some ques­ tions about a particular occupation or put you in touch with someone who has some experience in the field. This personal networking can be invaluable in evaluating an occupation or an employer. These people will be able to tell you about their specific duties and training, as well as what they did or did not like about a job. People who have worked in an occupation lo­ cally also may be able to recommend and get you in touch with specific employers.  Employers. This is the primary source of information on spe­ cific jobs. Employers may post lists of job openings and ap­ plication requirements, including the exact training and experi­ ence required, starting wages and benefits, and advancement opportunities and career paths.  Informational interviews. People already working in a partic­ ular field often are willing to speak with people interested in joining their field. An informational interview will allow you to get good information from experts in a specific career without the pressure of a job interview. These interviews allow you to determine how a certain career may appeal to you while helping you build a network of personal contacts. 10 for FRASER Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Professional societies, trade groups, and labor unions. These groups have information on an occupation or various related occupations with which they are associated or which they ac­ tively represent. This information may cover training require­ ments, earnings, and listings of local employers. These groups may train members or potential members themselves, or may be able to put you in contact with organizations or individuals who perform such training. Each occupational statement in the Handbook concludes with a section on sources of additional information, which lists organizations that may be contacted for more information. An­ other valuable source for finding organizations associated with occupations is The Encyclopedia of Associations, an annual publication that lists trade associations, professional societies, labor unions, and other organizations.  Guidance and career counselors. Counselors can help you make choices about which careers might suit you best. They can help you determine what occupations suit your skills by testing your aptitude for various types of work, and determining your strengths and interests. Counselors can help you evaluate your options and search for a job in your field or help you select a new field altogether. They can also help you determine which educational or training institutions best fit your goals, and find ways to finance them. Some counselors offer other services such as interview coaching, resume building, and help in filling out various forms. Counselors in secondary schools and post­ secondary institutions may arrange guest speakers, field trips, or job fairs. Common places where guidance and career counselors are employed include: • • • • • • •  High school guidance offices College career planning and placement offices Placement offices in private vocational or technical schools and institutions Vocational rehabilitation agencies Counseling services offered by community organizations Private counseling agencies and private practices State employment service offices  When using a private counselor, check to see that the coun­ selor is experienced. One way to do so is to ask people who have used their services in the past. The National Board of Cer­ tified Counselors and Affiliates is an institution which accredits career counselors. To verify the credentials of a career coun­ selor and to find a career counselor in your area, contact:  y National Board for Certified Counselor and Affiliates, 3 Terrace Way, Suite D, Greensboro, NC 27403-3660. Internet: http ://www.nbcc.org/cfind  Sources of Career Information 11  Postsecondary institutions. Colleges, universities, and other postsecondary institutions may put a lot of effort into helping place their graduates in good jobs, because the success of their graduates may indicate the quality of their institution and may affect the institution’s ability to attract new students. Postsec­ ondary institutions typically have career centers with libraries of information on different careers, listings of related jobs, and alumni contacts in various professions. Career centers frequent­ ly employ career counselors who generally provide their ser­ vices only to their students and alumni. Career centers can help you build your resume, find internships and co-ops—which can lead to full-time positions—and tailor your course selection or program to make you a more attractive job applicant.  Local libraries. Libraries can be an invaluable source of infor­ mation. Since most areas have libraries, they can be a conve­ nient place to look for information. Also, many libraries pro­ vide access to the Internet and e-mail. Libraries may have information on job openings, locally and nationally; potential contacts within occupations or industries; colleges and financial aid; vocational training; individual busi­ nesses or careers; and writing resumes. Libraries frequently have subscriptions to various trade magazines that can provide information on occupations and industries. Your local library also may have video materials. These sources often have refer­ ences to organizations which can provide additional informa­ tion about training and employment opportunities. If you need help getting started or finding a resource, ask your librarian for assistance.  Internet resources. With the growing popularity of the Internet, a wide verity of career information has become easily acces­ sible. Many online resources include job listings, resume post­ ing services, and information on job fairs, training, and local wages. Many of the resources listed elsewhere in this section have Internet sites that include valuable information on poten­ tial careers. Since no single source contains all information on an occupation, field, or employer, you will likely need to use a variety of sources. When using Internet resources, be sure that the organization is a credible, established source of information on the particular occupation. Individual companies may include job listings on their Web sites, and may include information about required credentials, wages and benefits, and the job’s location. Contact information, such as whom to call or where to send a resume, is usually included. Some sources exist primarily as a Web service. These servic­ es often have information on specific jobs, and can greatly aid in the job hunting process. Some commercial sites offer these services, as do Federal, State, and some local governments. Ca­ reer OneStop, a joint program by the Department of Labor and the States as well as local agencies, provides these services free of charge. Online Sources from the Department of Labor. A major por­ tion of the U.S. Department of Labor’s Labor Market Informa­ System is the Career OneStop site. This site includes: Digitized fortion FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  • •  •  State Job Banks allow you to search over a million job openings listed with State employment agencies. America's Career InfoNet provides data on employment growth and wages by occupation; the knowledge, skills, and abilities required by an occupation; and links to employers. America's Service Locator is a comprehensive database of career centers and information on unemployment bene­ fits, job training, youth programs, seminars, educational opportunities, and disabled or older worker programs.  Career OneStop, along with the National Toll free Helpline (877-USA-JOBS) and the local One-Stop Career Centers in each State, combine to provide a wide range of workforce as­ sistance and resources:  y  Career OneStop. Internet: http://www.careeronestop.org  Use the 0*NET numbers at the start of each Handbook state­ ment to find more information on specific occupations:  y 0*NET Online. Internet: http://www.onetcenter.org Provided in collaboration with the U.S. Department of Educa­ tion, Career Voyages has information on certain high-demand occupations:  y  Career Voyages. Internet: http://www.careervoyages.gov  The Department of Labor’s Bureau of Labor Statistics pub­ lishes a wide range of labor market information, from regional wages for specific occupations to statistics on National, State, and area employment.  y  Bureau of Labor Statistics. Internet: http://www.bls.gov  While the Handbook discusses careers from an occupational perspective, a companion publication—Career Guide to In­ dustries—discusses careers from an industry perspective. The Career Guide is also available at your local career center and library: y  Career Guide to Industries.  Internet: http://www.bls.gov/oco/cg/home.htm  For information on occupational wages:  y  Wage Data. Internet: http://www.bls.gov/bls/blswage.htm  For information on training, workers’ rights, and job listings:  y  Education and Training Administration. Internet: http://www.doleta.gov/jobseekers  Organizations for specific groups. Some organizations provide information designed to help specific groups of people. Consult directories in your library’s reference center or a career guid­ ance office for information on additional organizations associ­ ated with specific groups.  Disabled workers: State counseling, training, and placement services for those with disabilities are available from:  12 Occupational Outlook Handbook X  State  Vocational  Rehabilitation  Agency.  Internet:  http://wdcrobcolp01.ed.gov/Programs/EROD Information on employment opportunities, transportation, and other considerations for people with all types of disabilities is available from: V  from the U.S. Office of Personnel Management through USAJobs, the Federal Government’s official employment informa­ tion system. This resource for locating and applying for job op­ portunities can be accessed through the Internet or through an interactive voice response telephone system at (703) 724-1850  National Organization on Disability, 910 Sixteenth St. NW., Suite  or TDD (978) 461-8404. These numbers are not toll free, and  600, Washington, DC 20006. Telephone: (202) 293-5960. TTY: (202) 293-5968. Internet: http://www.nod.org/economic  charges may result.  y USA Jobs: http://www.usajobs.opm.gov  For information on making accommodations in the work place for people with disabilities:  Military. The military employs and has information on hun­  V  Job Accommodation Network (JAN), P.O. Box 6080, Morgantown,  dreds of occupations. Information is available on the Montgom­  WV 26506. Internet: http://www.jan.wvu.edu  ery G.I. Bill, which provides money for school and educational debt repayments. Information on military service can be pro­  A comprehensive Federal Web site of disability-related re­ sources is accessible at:  vided by your local recruiting office. Also see the Handbook  Blind workers:  statement on Job Opportunities in the Armed Forces. You will find more information on careers in the military at:  Information on the free national reference and referral service for the blind can be obtained by contacting:  y  'y  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:  y y  Today’s Military. Internet: http://www.todaysmilitary.com  State Sources. Most States have career information delivery systems (CIDS), which may be found in secondary and post­ secondary institutions, as well as libraries, job training sites, vocational-technical schools, and employment offices. A wide  National Council on the Aging, 1901 2nd St. NW., 4th Floor., Washington, DC 20036. Telephone: (202) 479-1200. Internet:  range of information is provided, from employment opportuni­  http://www.ncoa.org  ties to unemployment insurance claims.  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. Interne t: http ://www.ncba-aged.org  Whereas the Handbook provides information for occupa­ tions on a national level, each State has detailed information on occupations and labor markets within their respective ju­ risdictions. State occupational projections are available at:  Veterans: Contact the nearest regional office of the U.S. Department of Labor’s Veterans Employment and Training Service or:  y  Credentialing Opportunities Online (COOL), which explains how military personnel can meet civilian certification and license requirements related to their Military Occupational Specialty (MOS). Internet: http://www.cooI.army.mil/index.htm  Women:  y  Department of Labor, Women's Bureau, 200 Constitution Ave. NW., Washington, DC 20210. Telephone: (800) 827-5335. Internet: http://www.dol.gov/wb  Federal laws, executive orders, and selected Federal grant programs bar discrimination in employment based on race, color, religion, sex, national origin, age, and handicap. Infor­ mation on how to file a charge of discrimination is available from U.S. Equal Employment 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: (800) 669-6820). Internet: http://www.eeoc.gov Office of Personnel Management. Information on obtaining civilian positions within the Federal Government is available   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  http://www.projectionscentraI.com Alabama Labor Market Information Division, Alabama Department of Industrial Relations, 649 Monroe St., Room 422, Montgomery, AL 36131. Telephone: (334) 242-8859. Internet: http://dir.alabama.gov  Alaska Research and Analysis Section, Department of Labor and Workforce Development, P.O. Box 25501, Juneau, AK 99802-5501. Telephone: (907) 465-4500. Internet: http://www.jobs.state.ak.us  Arizona Arizona Department of Economic Security, P.O. Box 6123 SC 733A, Phoenix, AZ 85005-6123. Telephone: (602) 542-5984. Internet:  http://www.workforce.az.gov Arkansas Labor Market Information, Department of Workforce Services, #2 Capital Mall, Little Rock, AR 72201. Telephone: (501) 682-3198. Internet: http://www.arkansas.gov/esd  California State of California Employment Development Department, Labor Market Information Division, P.O. Box 826880, Sacramento, CA 94280-0001. Telephone: (916) 262-2162. Internet:  http://www.labormarketinfo.edd.ca.gov  Sources of Career Information 13  Colorado  Iowa  Labor Market Information, Colorado Department of Labor and  Policy and Information Division, Iowa Workforce Development, 1000  Employment, 63317thSt.,Suite201, Denver, C080202-3660.Telephone:  East Grand Ave., Des Moines, IA 50319-0209. Telephone: (515)  (303) 318-8000. Internet: http://www.coworkforce.com/lmi  281-5116. Internet: http://www.iowaworkforce.org/lmi  Connecticut  Kansas  Office of Research, Connecticut Department of Labor, 200 Folly Brook  Kansas Department of Labor, Labor Market Information Services, 401  Blvd., Wethersfield, CT 06109-1114.Telephone: (860) 263-6275.  SW Topeka Blvd., Topeka, KS 66603-3182. Telephone: (785) 296­  Internet: http://www.ctdol.state.ct.us/lmi  5000. Internet: http://laborstats.dol.ks.gov  Delaware  Kentucky  Office of Occupational and Labor Market Information, Department of  Research and Statistics Branch, Office of Employment and Training,  Labor, 19 West Lea Blvd., Wilmington, DE 19802-. Telephone: (302)  275 East Main St., Frankfort, KY 40621.Telephone: (502) 564-7976.  761-8069.  Internet: http ://www.workforcekentucky.ky.gov  Internet: http://www.delawareworks.com/oolmi/welcome.shtml  Louisiana District of Columbia DC Department of Employment Services, 609 H St. NE., Washington, D.C. 20002. Telephone: (202) 724-7000. Internet: http://www.does.dc.gov/does  Florida Labor Market Statistics, Agency for Workforce Innovation, MSC G-020, 107 E. Madison St., Tallahassee, FL 32399-4111.Telephone: (850) 245-7205. Internet: http://www.labormarketinfo.com  Research and Statistics Division, Department of Labor, 1001 North 23rd St., Baton Rouge, LA 70802-3338. Telephone: (225) 342-3111. Internet: http://www.laworks.net  Maine Labor Market Information Services Division, Maine Department of Labor, State House Station 54, P.O. Box 259 45 Commerce Dr., Augusta, ME 04330.Telephone: (207) 621-5182. Internet: http://www.state.me.us/labor/lmis/index.html  Georgia Workforce Information and Analysis, Room 300, Department of Labor, 223 Courtland St., CWC Building, Atlanta, GA 30303. Telephone:  Maryland Maryland Department of Labor Licensing and Regulation, Office  (404) 232-3875. Internet:  of Labor Market Analysis and Information, Room 316, 1100 N.  http://www.dol.state.ga.us/em/get_labor_marketJnformation.htm  Eutaw, Baltimore, MD 21201.Telephone: (410) 767-2250. Internet:  http://www.dllr.state.md.us/Imi/index.htm Guam Guam Department of Labor, 504 D St., Tiyan, Guam 96910.  Massachusetts  Telephone: (671) 475-0101.  Executive Office of Labor and Workforce Development, Division of Career Services, 19 Staniford St., Boston, MA 02114.Telephone: (617)  Hawaii  626-5300. Internet: http://www.detma.org/LMIdataprog.htm  Research and Statistics Office, Department of Labor and Industrial Relations, 830 Punchbowl St., Room 304, Honolulu, HI 96813.  Michigan  Telephone: (808) 586-8999. Internet: http://www.hiwi.org  Bureau of Labor Market Information and Strategic Initiatives,  Idaho Research and Analysis Bureau, Department of Commerce and Labor, 317 West Main St., Boise, ID 83735-0670. Telephone: (208) 332-3570. Internet: http://lmi.idaho.gov  Illinois  Department of Labor and Economic Growth, 3032 West Grand Blvd., Suite 9-100, Detroit, MI 48202.Telephone: (313) 456-3090. Internet: http://www.milmi.org  Minnesota Department of Employment and Economic Development, Labor  Illinois Department of Employment Security, Economic Information  Market Information Office, 1 st National Bank Building, 332 Minnesota  and Analysis Division, 33 S. State St., 9th Floor , Chicago, IL 60603.  St., Suite E200, St. Paul, MN 55101-1351. Telephone: (888) 234-1114.  Telephone: (312)793-2316. Internet: http://lmi.ides.state.il.us  Internet: http://www.deed.state.mn.us/lmi  Indiana  Mississippi  Research and Analysis—Indiana Workforce Development, Indiana  Labor Market Information Division, Mississippi Department of  Government Center South, 10 North Senate Ave., Indianapolis, IN  Employment Security , 1235 Echelon Pkwy., P.O. Box 1699, Jackson,  Telephone: (800) 891-6499. Internet: http://www.in.gov/dwd Digitized for46204. FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  MS 39215. Telephone: (601) 321-6000. Internet: http://mdes.ms.gov  14 Occupational Outlook Handbook  Missouri  Pennsylvania  Missouri Economic Research and Information Center, P.O. Box 3150, Jefferson City, MO 65102-3150. Telephone: (866) 225-8113. Internet:  Center for Workforce Information & Analysis, Pennsylvania Department of Labor and Industry, 220 Labor and Industry Building, Seventh and Forster Sts., Harrisburg, PA 17121. Telephone: (877) 493­ 3282. Internet: http://www.paworkstats.state.pa.us  http ://w ww.missourieconomy.org Montana Research and Analysis Bureau, RO. Box 1728, Helena, MT 59624. Telephone: (800) 541-3904. Internet: http://www.ourfactsyourfuture.org  Puerto Rico Labor Market Information Office, RO. Box 195540, San Juan, Puerto Rico 00919-5540.Telephone: (787) 281-5760. Internet:  http://www.dtrh.gobierno.pr/oficina procurador_del_trabajo.asp Nebraska Nebraska Workforce Development—Labor Market Information, Nebraska Department of Labor, 550 South 16tth St., RO. Box 94600, Lincoln, NE 68509. Telephone: (402) 471-2600. Internet: http://www.dol.state.ne.us/neImi.htm  Nevada Research and Analysis, Department of Employment Training and Rehabilitation, 500 East Third St., Carson City, NV 89713. Telephone: (775) 684-0450. Internet: http://www.nevadaworkforce.com  New Hampshire Economic and Labor Market Information Bureau, New Hampshire Employment Security, 32 South Main St., Concord, NH 03301-4857. Telephone: (603) 228-4124. Internet: http://www.nhes.state.nh.us/elmi  New Jersey Division of Labor Market and Demographic Research, Department of Labor and Workforce Development, RO. Box 388, Trenton, NJ 08625-0388. Telephone: (609) 984-2593. Internet: http://www.wnjpin.net  New Mexico New Mexico Department of Labor, Economic Research and Analysis, 401 Broadway NE., Albuquerque, NM 87102. Telephone: (505) 222-4683. Internet: http://www.dws.state.nm.us/dws-Imi.html  New York Research and Statistics, New York State Department of Labor, State Office Campus, Room 490, Albany, NY 12240. Telephone: (518) 457­ 2919. Internet: http://www.labor.state.ny.us/workforceindustrydata/index.asp  North Carolina Labor Market Information Division, Employment Security Commission, 700 Wade Ave., Raleigh, NC 27605. Telephone: (919) 733-4329. Internet: http://www.ncesc.com  North Dakota Labor Market Information Manager, Job Service North Dakota, 1000 East Divide Ave., Bismarck, ND 58506. Telephone: (800) 732-9787. Internet: http://www.ndworkforceintelligence.com  Ohio Bureau of Labor Market Information, Office of Workforce Development, Ohio Department of Job and Family Services, RO. Box 1618, Columbus, OH 43216-1618.Telephone: (614) 752-9494. Internet: http://www.ohioworkforceinformer.org  Oklahoma Labor Market Information, Oklahoma Employment Security Commission, 2401 N. Lincoln Blvd., Oklahoma City, OK 73105. Telephone: (405) 557-7100. Internet: http://www.oesc.state.ok.us/lmi/default.htm  Rhode Island Labor Market Information, Rhode Island Department of Labor and Training, 1511 Pontiac Ave., Cranston, RI 02920. Telephone: (401) 462-8740. Internet: http://www.dlt.ri.gov/lmi  South Carolina Labor Market Information Department, South Carolina Employment Security Commission, 631 Hampton St., Columbia, SC 29202. Telephone: (803) 737-2660. Internet: http://www.sces.org/lmi/index.asp  South Dakota Labor Market Information Center, Department of Labor, P.O. Box 4730, Aberdeen, SD 57402-4730. Telephone: (605) 626-2314. Internet: http://www.state.sd.us/dol/lmic/index.htm  Tennessee Research and Statistics Division, Department of Labor and Workforce Development, 710 James Robertson Pkwy., Nashville, TN 37243. Telephone: (615) 741-6642. Internet: http://www.state.tn.us/labor-wfd/lmi.htm  Texas Labor Market Information, Texas Workforce Commission, 9001 North IH-35, Suite 103A, Austin, TX 75753. Telephone: (866) 938-4444. Internet: http://www.tracer2.com  Utah Director of Workforce Information, Utah Department of Workforce Services, P.O. Box 45249, Salt Lake City, UT 84145-0249. Telephone: (801) 526-9675. Internet: http://jobs.utah.gov/opencms/wi  Vermont Research and Analysis, Vermont Department of Labor, P.O. Box 488, Montpelier, VT 05601-0488. Telephone: (802) 828-4000. Internet:  http://www.labor.vermont.gov Virgin Islands Bureau of Labor Statistics, Department of Labor, P.O. Box 302608, St Thomas, VI 00803-2608.Telephone: (340) 776-3700. Internet:  http://www.vidol.gov Virginia Economic Information Services, Virginia Employment Commission, P.O. Box 1358, Richmond, VA 23218-1358. Telephone: (804) 786­ 8223. Internet: http://velma.virtuallmi.com  Washington Labor Market and Economic Analysis, Washington Employment Security Department, PO Box 9046, Olympia, WA 98507-9046. Telephone: (800) 215-1617. Internet: http://www.workforceexplorer.com  West Virginia WORKFORCE West Virginia, Research, Information and Analysis Division, 112CalifomiaAve.,Charleston, WV25303-0112. Telephone: (304) 558-2660. Internet: http://www.wvbep.org/bep/lmi  Wisconsin Bureau of Workforce Information, Department of Workforce Development, P.O.Box 7944, Madison, WI 53707-7944. Telephone: (608) 266-8212. Internet: http://worknet.wisconsin.gov/worknet  Oregon  Wyoming  Oregon Employment Department, Research Division, 875 Union St. NE., Salem, OR 97311.Telephone: (503) 947-1200. Internet: http://www.qualityinfo.org/olmisj/01misZine  Research and Planning, Wyoming Department of Employment, 246 S. Center St., Casper, WY 82602. Telephone: (307) 473-3807. Internet:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  http ://doe.state. wy.us/lmi  Sources of Education, Training, and Financial Aid Education can present opportunities for those looking to start a new career or change specialty within their current occupa­ tion. This section outlines some major sources of education and training required to enter many occupations, as well as some ways to finance that education or training. For information on the specific training and educational re­ quirements for a particular occupation, and what training is typically provided by an employer, consult the Training, Other Qualifications, and Advancement section of the appropriate Handbook statement.  Sources of Education and Training Four-year colleges and universities. These institutions provide detailed information on theory and practice for a wide variety of subjects. Colleges and universities can provide students with the knowledge and background necessary to be successful in many fields. They also can help to place students in cooperative education programs—often called “co-ops”—or internships. Co-ops and internships are short-term jobs with firms related to a student’s field of study that lead to college credit. In co-ops and internships, students learn the specifics of a job while mak­ ing valuable contacts that can lead to a permanent position. For more information on colleges and universities, go to your local library, consult your high school guidance counselor, or contact individual colleges. Also check with your State’s higher education agency. A list of these agencies is available on the Internet: http://wdcrobcolp01.ed.gov/Programs/EROD.  Junior and community colleges. Junior and community col­ leges offer a mixture of programs that lead to associate degrees and training certificates. Community colleges tend to be less expensive than 4-year colleges and universities. They usually are more willing to accommodate part-time students than col­ leges and universities, and their programs are more tailored to the needs of local employers. Many community colleges have an open admissions policy, and they often offer weekend and night classes. Community colleges often form partnerships with local busi­ nesses that allow students to gain job-specific training. For stu­ dents who may not be able to enroll in a college or university because of their academic record, limited finances, or distance from such an institution, junior or community colleges are of­ ten used as a place to earn credits that can be applied toward a degree at a 4-year college. Junior and community colleges also are noted for their extensive role in continuing and adult education. For more information on junior and community colleges, go to your local library, consult your high school guidance coun­ selor, or contact individual schools. Also check with your State’s higher education agency. A list of these agencies is available on the Internet: http://wdcrobcolp01.ed.gov/Programs/EROD,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Online colleges and universities. Online colleges and universi­ ties offer classes over the Internet that cover most of the same material as their traditional classroom counterparts. Offering classes on the Internet provides a great deal of flexibility to students, allowing many who work, travel frequently, or lack the ability or means to attend a traditional university to earn a degree from an accredited institution. A prospective student should talk to a guidance coun­ selor or advisor before deciding to enroll in an online col­ lege or university. Additionally, the prospective student should check the college or university’s accreditation with the U.S. Department of Education. This can be done online at: http://www.ope.ed.gov/accreditation/Search.asp.  Vocational and trade schools. These institutions train people in specific trades. They offer courses designed to provide handson experience. Vocational and trade schools tend to concentrate on trades, services, and other types of skilled work. Vocational and trade schools frequently engage students in real-world projects, allowing them to apply field methods while learning theory in classrooms. Graduates of vocational and trade schools have an advantage over informally trained or self-trained job seekers because graduates have an independent organization certifying that they have the knowledge, skills, and abilities necessary to perform the duties of a particular occupa­ tion. These schools also help students to acquire any license or other credentials needed to enter the job market. For more information on vocational and trade schools, go to your local library, consult your high school guidance counselor, or contact individual schools. Also check with your State’s di­ rector of vocational-technical education. A list of State directors of vocational-technical education is available on the Internet: http://wdcrobcolp01.ed.gov/Programs/EROD. Apprenticeships. An apprenticeship provides work experience as well as education and training for people entering certain occupations. Apprenticeships are offered by sponsors, who em­ ploy and train the apprentice. The apprentice follows a training course under close supervision and receives some formal edu­ cation to learn the theory related to the job. Apprenticeships are a way for inexperienced people to be­ come skilled workers that generally last between 1 and 4 years. Some apprenticeships allow the apprentice to earn an associate degree. An Apprenticeship Completion Certificate is granted to those completing programs. This certificate is administered by federally approved State agencies. Information on apprenticeships is available from the Of­ fice of Apprenticeship Training, Employer, and Labor Services on the Internet: http://www.doleta.gov/ateIs_bat. For assistance finding an apprenticeship program, go to: http://www.doleta.gov/atels_bat/fndprgm.cfm. 15  16 Occupational Outlook Handbook  Professional societies, trade associations, and labor unions. These groups are made up of people with common interests, usually in related occupations or industries. The groups fre­ quently are able to provide training, access to training through their affiliates, or information on acceptable sources of training for their field. If licensing or certification is required, they also may be able to assist you in meeting those requirements. For a listing of professional societies, trade associations, and labor unions related to an occupation, check the Sources of Additional Information section at the end of that occupational statement in the Handbook.  Employers. Many employers provide on-the-job training, which can range from spending a few minutes watching another employee demonstrate a task to participating in formal train­ ing programs that may last for several months. In some jobs, employees may continually undergo training to stay up to date with new developments and technologies, or to add new skills.  Military. The United States Armed Forces trains and employs people in more than 4,100 different occupations. For more in­ formation, see the Handbook statement on “Job Opportunities in The Armed Forces.” For detailed answers to specific questions, contact your local recruiting office. Valuable resources also are available on the Internet: http://www.todaysmilitary.com.  Sources of Financial Aid Many people fund their education or training through financial aid or tuition assistance programs. Federal student aid comes in three forms: grants, work-study programs, and loans. All Federal student aid applicants must first fill out a Free Ap­ plication for Federal Student Aid (FAFSA), which provides a Student Aid Report (SAR) and eligibility rating. Forms must be submitted to desired institutions of study, which deter­ mine the amount of aid you will receive.For information on applying for Federal financial aid, visit the FAFSA Internet site: http://www.fafsa.ed.gov.A U.S. Department of Educa­ tion publication describing Federal financial aid programs, called The Student Guide, is available at: http://www.studentaid.ed.gov/students/publications/student_guide/index. html. Information on Federal programs is available from: http://www.studentaid.ed.gov and www.students.gov. In­ formation on State programs is available from your State’s higher education agency. A list of these agencies is available at: http ://wdcrobcolpO 1 .ed.gov/Programs/EROD.  for FSEOG awards is given to those who have also received the Pell Grant and have exceptional financial need. Additional information on grants is available on the Internet: http://www.studentaid.ed.gov. Information also is available fromyourStateHigherEducationagency.Alistoftheseagenciesis available at: http://wdcrobcolp01.ed.gov/Programs/EROD.  Federal Work-Study program. The Federal Work-Study pro­ gram is offered at most institutions and consists of Federal sponsorship of a student who works part time at the institution he or she is attending. The money a student earns through this program goes directly toward the cost of attending the institu­ tion. There are no set minimum or maximum amounts for this type of aid, although, on average, a student can expect to earn about $2,000 per school year. For additional information on work-study opportunities of­ fered, check with individual institutions. General information on the Federal Work-Study program is available at: http://www. studentaid.ed.gov/students/publications/student_guide/2005-2006/ english/types-fed-workstudy.htm.  Scholarships. A scholarship is a sum of money donated to a student to help pay for his or her education or training and any associated costs. Scholarships can range from small amounts up to the full cost of schooling. They are based on financial need, academic merit, athletic ability, or a wide variety of other criteria set by the organizations that provide the scholarships. Frequently, students must meet minimum academic require­ ments to be considered for a scholarship. Other qualifying re­ quirements—such as intended major field of study, heritage, or group membership—may be added by the organization provid­ ing the scholarship. Scholarships are provided by a wide variety of institutions, including educational institutions, State and local governments, private associations, social groups, and individuals. There are no federally awarded scholarships based on academic merit. Most large scholarships are awarded to students by the institution they plan to attend. Students who have received State scholar­ ships and plan to attend a school in another State should check with their State to see if the scholarship can be transferred. Information on scholarships is typically available from high school guidance counselors and local libraries. Addi­ tional scholarship information is available from State higher education agencies. A list of these agencies is available at: http://wdcrobcolp01.ed.gov/Programs/EROD. The Col­ lege Board has information on available scholarships at: http://www.collegeboard.com/pay.  Grants. A grant is money which is given to students or the in­ stitution they are attending in order to pay for their education or training and any associated expenses. Grants are usually given on the basis of financial need. Grants are considered gifts and are not paid back. Federal grants are almost exclusively for un­ dergraduate students. They include Pell Grants, which can be worth up to $4,310 annually. Pell Grants of up to $4,800 will be available beginning in July 2008, with further increases to $5,000 and $5,400 available in July 2010 and July 2012, re­ spectively. Federal Supplemental Educational Opportunity Grants (FSEOG) can be worth up to $4,000 annually. Priority   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Student loans. Many institutions, both public and private, pro­ vide low-interest loans to students and their parents or guard­ ians. The Federal Government also provides several types of student loans based on the applicant’s level of financial need. The amount of money a student can receive in loans varies by the distributing institution and depends on whether the student is claimed by a parent or guardian as a dependent. Since the process of applying for a loan may take several months, it is a good idea to start applying for Federal student loans well in advance.  Sources of Education, Training, and Financial Aid 17  The available Federal loan programs can accommodate pro­ spective undergraduate, graduate, vocational, and disabled stu­ dents. Federal loans can be distributed through the school that the student is attending, from the Federal Government directly, or from a third-party private lender or bank. Perkins loans are distributed through the school the student is attending. Loans coming from the Federal Government directly from the Wil­ liam D. Ford Federal Direct Loan Program are dispersed by the Department of Education. Third-party loans through a private lender or bank are from the Federal Family Education Loan (FEEL) program. For all federally funded loans, payments are made to the institution that originally dispersed the funds. For those with financial need. Federal Perkins loans and both Direct and FFEL-subsidized Stafford loans are available. Perkins loans have no minimum amount; they are capped at $4,000 per year for undergraduates, but will be increasing to $6,000 a year by 2012. Students should visit the Department of Education’s Web site (http://www.studentaid.ed.gov/PORTALSWebApp/ students/english/fafsa.jsp) to learn about the current level of aid available because it will vary by year and a student’s status (mar­ ried, single, dependent, or independent). Subsidized Stafford loans vary in size and can increase as a student completes more years of undergraduate, graduate, or professional education. In­ terest rates for both loans will be gradually decreasing until 2012. Information on specific interest rates is available through the school’s financial aid officer or the Department of Education’s Web site. Those with Perkins loans are not responsible for start­ ing to repay the loan until they have been out of school for 9 months. Those with subsidized Stafford loans must begin pay­ ments within 6 to 9 months of leaving school but are not charged monthly interest while in school. For those who do not demonstrate financial need, Direct and FFEL-unsubsidized Stafford Loans and Federal Parent Loans for Students (PLUS) are available. Unsubsidized Stafford loans vary in value and are capped at the cost of attendance. With   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Federal unsubsidized Stafford Loans, interest payments start almost immediately and can be paid monthly or accrued until the completion of studies. The latter option results in a larger total loan cost but may be more convenient for some students. With PLUS loans, the parent must pay interest and principal payments while the student is enrolled in school and must con­ tinue payments after completion. Check with your lender for available repayment schedules. Students usually have 10 years to repay Perkins loans and from 10 to 30 years for unsubsidized Stafford loans. Subsidized and unsubsidized Stafford loans are only avail­ able to students who are enrolled in an academic program at least half time. As with any loan, be sure to investigate different lenders, and understand what your loan contract requires of you before agreeing to any loan. Check with established financial in­ stitutions to compare the terms of available private student loans. Comparisons of the various types of loans are available on the In­ ternet: http://www.studentaid.ed.gov/students/publications/ student_guide/index.html. The College Board has informa­ tion on available loans at: http://www.collegeboard.com/pay.  Employer tuition support programs. Some employers offer tuition assistance programs as part of their employee benefits package. The terms of these programs depend on the firm and can vary by the type and amount of training subsidized, as well as by eligibility requirements. Consult your human resources department for information on tuition support programs offered by your employer.  Military tuition support programs. The United States Armed Forces offer various tuition assistance and loan repayment pro­ grams for military personnel. See the Handbook statement on “Job Opportunities in the Armed Forces” for more information. Also go to: http://www.todaysmilitary.com/app/tm/get/collegehelp/support.  Finding and Applying for Jobs and Evaluating Offers Finding—and getting—a job you want can be a challenging process, but knowing more about job search methods and ap­ plication techniques can increase your chances of success. And knowing how to judge the job offers you receive makes it more likely that you will end up with the best possible job.  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 resources Professional associations Labor unions State employment service offices Federal Government Community agencies Private employment agencies and career consultants Internships  Employers. Directly contacting employers is one of the most successful means of job hunting. Through library and Internet research, develop a list of potential employers in your desired career field. Then call these employers and check their Web sites for job openings. Web sites and business directories can tell you how to apply for a position or whom to contact. Even if no open positions are posted, do not hesitate to contact the employer: You never know when a job might become available. Consider asking for an informational interview with people working in the career you want to learn more. Ask them how they got started, what they like and dislike about the work, what type of qualifications are necessary for the job, and what type of personality succeeds in that position. In addition to giving you career information, 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.  Classified ads. The “Help Wanted” ads in newspapers and the Internet list numerous jobs, and many people find work by re­ sponding to these ads. But when using classified ads, keep the following in mind: • *  Job search methods Finding a job can take months of time and effort. But you can speed the process by using many methods to find job openings. Data from the Bureau of Labor Statistics suggest that people who use many job search methods find jobs faster than people who use only one or two. In the box above, some sources of job openings are listed. Those sources are described more fully below.  Personal contacts. Many jobs are never advertised. People get them by talking to friends, family, neighbors, acquaintances, teachers, former coworkers, and others who know of an open­ ing. Be sure to tell people that you are looking for a job because the people you know may be some of the most effective re­ sources for your search. To develop new contacts, join student, community, or professional organizations.  School career planning and placement offices. High school and college placement offices help their students and alumni find jobs. Some invite recruiters to use their facilities for in­ terviews or career fairs. They also may have lists of open jobs. Most also offer career counseling, career testing, and job search advice. Some have career resource libraries; host workshops on job search strategy, resume writing, letter writing, and effective interviewing; critique drafts of resumes; conduct mock inter­ views; and sponsor job fairs.  18 for FRASER Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  • *  Follow all leads to find a job; do not rely solely on the clas­ sifieds. 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. Keep a record of all ads to which you have responded, in­ cluding the specific skills, educational background, and personal qualifications required for the position.  Internet resources. The Internet includes many job hunting Web sites with job listings. Some job boards provide National list­ ings of all kinds; others are local. Some relate to a specific type of work; others are general. To find good prospects, begin with an Internet search using keywords related to the job you want. Also look for the sites of related professional associations. Also consider checking Internet forums, also called message boards. These are online discussion groups where anyone may post and read messages. Use forums specific to your profession or to career-related topics to post questions or messages and to read about the job searches or career experiences of other people. In online job databases, remember that job listings may be posted by field or discipline, so begin your search using key­ words. Many Web sites allow job seekers to post their resumes online for free.  Professional associations. Many professions have associations that offer employment information, including career planning, educational programs, job listings, and job placement. To use these services, associations usually require that you be a mem­  Finding and Applying for Jobs and Evaluating Offers 19  ber; information can be obtained directly from an association through the Internet, by telephone, or by mail.  Labor unions. Labor unions provide various employment ser­ vices to members and potential members, including apprentice­ ship programs that teach a specific trade or skill. Contact the ap­ propriate labor union or State apprenticeship council for more information.  State employment service offices. The State employment ser­ vice, sometimes called the Job Service, operates in coordina­ tion with the U.S. Department of Labor’s Employment and Training Administration. Local offices, found nationwide, help job seekers to find jobs and help employers to find qualified workers at no cost to either. 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 as­ sess your 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 in­ terest you. A staff member can then describe the job openings in detail and arrange for interviews with prospective employers. Services for special groups. By law, veterans are entitled to priority 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 also refer people to oppor­ tunities available under the Workforce Investment Act (WIA) of 1998. Educational and career services and referrals are pro­ vided to employers and job seekers, including adults, dislocated workers, and youth. These programs help to prepare people to participate in the State’s workforce, increase their employment and earnings potential, improve their educational and occupa­ tional skills, and reduce their dependency on welfare.  Federal Government. Information on obtaining a position with the Federal Government is available from the U.S. Office of Personnel Management (OPM) through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result.  Community agencies. Many nonprofit organizations, including religious institutions and vocational rehabilitation agencies, of­ fer counseling, career development, and job placement services, generally targeted to a particular group, such as women, youths, minorities, ex-offenders, or older workers.  basis, charging a percentage of the first-year 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. When determining if the service is worth the cost, consider any guarantees that the agency offers.  Internships. Many people find jobs with business and organiza­ tions with whom they have interned or volunteered. Look for internships and volunteer opportunities on job boards, career centers, and company and association Web sites, but also check community service organizations and volunteer opportunity databases. Some internships and long-term volunteer positions come with stipends and all provide experience and the chance to meet employers and other good networking contacts.  Applying for a job After you have found some jobs that interest you, the next step is to apply for them. You will almost always need to complete resumes or application forms and cover letters. Later, you will probably need to go on interviews to meet with employers face to face.  Resumes and application forms. Resumes and application forms give employers written evidence of your qualifications and skills. The goal of these documents is to prove—as clearly and directly as possible—how your qualifications match the job’s requirements. Do this by highlighting the experience, ac­ complishments, education, and skills that most closely fit the job you want. Gathering information. Resumes and application forms both include the same information. As a first step, gather the following facts: •  Contact information, including your name, mailing ad­ dress, e-mail address (if you have one you check often), and telephone number.  •  Type of work or specific job you are seeking or a qualifica­ tions summary, which describes your best skills and experi­ ence in just a few lines.  •  Education, including school name and its city and State, months and years of attendance, highest grade completed or diploma or degree awarded, and major subject or sub­ jects studied. Also consider listing courses and awards that might be relevant to the position. Include a grade point av­ erage if you think it would help in getting the job.  •  Experience, paid and volunteer. For eachjob, include the job title, name and location of employer, and dates of employ­ ment. Briefly describe your job duties and major accom­ plishments. In a resume, use phrases instead of sentences to describe your work; write, for example, “Supervised 10 children” instead of writing “I supervised 10 children.”  •  Special skills. You might list computer skills, proficiency  Private employment agencies and career consultants. Private agencies can save you time and they will contact employers who otherwise might be difficult to locate. But these agencies may charge for their services. Most operate on a commission   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  in foreign languages, achievements, or and membership in organizations in a separate section.  20 Occupational Outlook Handbook  *  References. Be ready to provide references if requested. Good references could be former employers, coworkers, or teachers or anyone else who can describe your abili­ ties and job-related traits. You will be asked to provide contact information for the people you choose.  Throughout the application or resume, focus on accomplish­ ments that relate most closely to the job you want. You can even use the job announcement as a guide, using some of the same words and phrases to describe your work and education. Look for concrete examples that show your skills. When de­ scribing your work experience, for instance, you might say that you increased sales by 10 percent, finished a task in half the usual time, or received three letters of appreciation from cus­ tomers. Choosing a format. After gathering the information you want to present, the next step is to put it in the proper format. In an application form, the format is set. Just fill in the blanks. But make sure you fill it out completely and follow all instruc­ tions. Do not omit any requested information. Consider making a copy of the form before filling it out, in case you make a mis­ take and have to start over. If possible, have someone else look over the form before submitting it. In a resume, there are many ways of organizing the infor­ mation you want to include, but the most important informa­ tion should usually come first. Most applicants list their past jobs in reverse chronological order, describing their most recent employment first and working backward. But some applicants use a functional format, organizing their work experience under headings that describe their major skills. They then include a brief work history section that lists only job titles, employers, and dates of employment. Still other applicants choose a format that combines these two approaches in some way. Choose the style that best showcases your skills and experience. Whatever format you choose, keep your resume short. Many experts recommend that new workers use a one-page resume. Avoid long blocks of text and italicized material. Consider us­ ing bullets to highlight duties or key accomplishments. Before submitting your resume, make sure that it is easy to read. Are the headings clear and consistently formatted with bold or some other style of type? Is the type face large enough? Then, ask at least two people to proofread the resume for spell­ ing and other errors and make sure you use your computer’s spell checker. Keep in mind that many employers scan resumes into data­ bases, which they then search for specific keywords or phrases. The keywords are usually nouns referring to experience, educa­ tion, personal characteristics, or industry buzz words. Identify keywords by reading the job description and qualifications in the job ad; use these same words in your resume. For example, if the job description includes customer service tasks, use the words “customer service” on your resume. Scanners sometimes misread paper resumes, which could mean some of your key­ words don’t get into the database. So, if you know that your resume will be scanned, and you have the option, e-mail an electronic version. If you must submit a paper resume, make it scannable by using a simple font and avoiding underlines, italics, and graphics. It is also a good idea to send a tradition­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ally formatted resume along with your scannable resume, with a note on each marking its purpose. Cover letters. When sending a resume, most people include a cover letter to introduce themselves to the prospective employ­ er. Most cover letters are no more than three short paragraphs. Your cover letter should capture the employer’s attention, fol­ low a business letter format, and usually should include the fol­ lowing information: • • • • •  Name and address of the specific person to whom the letter is addressed. Reason for your interest in the company or position. Your main qualifications for the position. Request for an interview. Your home and work telephone numbers.  If you send a scannable resume, you should also include a scannable cover letter, which avoids graphics, fancy fonts, ital­ ics, and underlines. As with your resume, it may be helpful to look for examples on the Internet or in books at your local library or bookstore, but be sure not to copy letters directly from other sources.  Interviewing. An interview gives you the opportunity to show­ case your qualifications to an employer, so it pays to be well prepared. The accompanying box provides some helpful hints.  Evaluating a job offer Once you receive a job offer, you must decide if you want the job. Fortunately, most organizations will give you a few days to accept or reject an offer. There are many issues to consider when assessing a job of­ fer. Will the organization be a good place to work? Will the job be interesting? Are there opportunities for advancement? Is the salary fair? Does the employer offer good benefits? Now is the time to ask the potential employer about these issues—and to do some checking on your own.  The organization. Background information on an organization can help you to decide whether it is a good place for you to work. Factors to consider include the organization’s business or activity, financial condition, age, size, and location. You generally can get background information on an organi­ zation, particularly a large organization, on its Internet site or by telephoning its public relations office. A public company’s annual report to the stockholders tells about its corporate phi­ losophy, history, products or services, goals, and financial sta­ tus. Most government agencies can furnish reports that describe their programs and missions. Press releases, company newslet­ ters or magazines, and recruitment brochures also can be useful. Ask the organization for any other items that might interest a prospective employee. If possible, speak to current or former employees of the organization. Background information on the organization may be avail­ able at your public or school library. If you cannot get an an­ nual report, check the library for reference directories that may provide basic facts about the company, such as earnings, prod­ ucts and services, and number of employees. Some directories  Finding and Applying for Jobs and Evaluating Offers 21  Job interview tips Preparation: Learn about the organization. Have a specific job or jobs in mind. Review your qualifications for the job. Be ready to briefly describe your experience, showing how it relates it the job. Be ready to answer broad questions, such as “Why should 1 hire you?” “Why do you want this job?” “What are your strengths and weaknesses?” Practice an interview with a friend or relative. Personal appearance: Be well groomed. Dress appropriately. Do not chew gum or smoke. The interview: Be early. Learn the name of your interviewer and greet him or her with a firm handshake. Use good manners with everyone you meet. Relax and answer each question concisely. Use proper English—avoid slang. Be cooperative and enthusiastic. Use body language to show interest—use eye contact and don’t slouch. Ask questions about the position and the organization, but avoid questions whose answers can easily be found on the company Web site. Also avoid asking questions about salary and benefits un­ less a job offer is made. Thank the interviewer when you leave and shake hands. Send a short thank you note. Information to bring to an interview: Social Security card. Government-issued identification (driver’s license). Resume or application. Although not all employers re­ quire a resume, you should be able to furnish the inter­ viewer information about your education, training, and previous employment. References. Employers typically require three referenc­ es. 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. Transcripts. Employers may require an official copy of transcripts to verify grades, coursework, dates of at­ tendance, and highest grade completed or degree awarded. widely available in libraries either in print or as online data­ bases include: * * *  Dun & Bradstreet’s Million Dollar Directory Standard and Poor’s Register of Corporations Mergent’s Industry Review (formerly  *  Industrial Manual) Thomas Register ofAmerican Manufacturers  *  Ward’s Business Directory   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Stories about an organization in magazines and newspapers can tell a great deal about its successes, failures, and plans for the future. You can identify articles on a company by looking under its name in periodical or computerized indexes in librar­ ies, or by using one of the Internet’s search engines. However, it probably will not be useful to look back more than 2 or 3 years. The library also may have government publications that pres­ ent projections of growth for the industry in which the orga­ nization is classified. Long-term projections of employment and output for detailed industries, covering the entire U.S. economy, are developed by the Bureau of Labor Statistics and revised every 2 years. (See the Career Guide to Industries, on­ line at http://www.bls.gov/oco/cg.) Trade magazines also may include articles on the trends for specific industries. Career centers at colleges and universities often have infor­ mation on employers that is not available in libraries. Ask a career center representative how to find out about a particular organization. During your research consider the following questions: 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. 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 better employee benefits than do small firms. Large employ­ ers 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 responsi­ bility, 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. However, it may be just as exciting and rewarding to work for a young firm that already has a foothold on success.  The job. Even if everything else about the job is attractive, you will be unhappy if you dislike the day-to-day work. Determin­ ing in advance whether you will like the work may be difficult. 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. Consider the following questions:  Where is the job located? Moody’s  If the job is in another section of the country, you need to con­ sider the cost of living, the availability of housing and transpor­ tation, and the quality of educational and recreational facilities in that section of the country. Even if the job location is in your area, you should consider the time and expense of commuting.  22 Occupational Outlook Handbook  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 to the company or organization? An explanation of where you fit in the organization and how you are supposed to contribute to its overall goals should give you an idea of the job’s importance.  What will the hours be? Most jobs involve regular hours—for example, 40 hours a week, during the day, Monday through Friday. Other jobs re­ quire night, weekend, or holiday work. In addition, some jobs routinely require overtime to meet deadlines or sales or produc­ tion goals, or to better serve customers. Consider the effect that the work hours will have on your personal life.  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 op­ portunities to learn new skills, increase your earnings, and rise to positions of greater authority, responsibility, and prestige. A lack of opportunities can dampen interest in the work and result in frustration 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 pos­ sibilities 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 opportunities for advancement do arise, will you com­ pete with applicants from outside the company? Can you apply for jobs for which you qualify elsewhere within the organiza­ tion, or is mobility within the firm limited?  Salaries and benefits. When an employer makes a job offer, information about earnings and benefits are usually included. You will want to research to determine if the offer is fair. If you choose to negotiate for higher pay and better benefits, objective research will help you strengthen your case. You may have to go to several sources for information. One of the best places to start is the information from the Bureau of Labor Statistics. Data on earnings by detailed occupation from the Occupational Employment Statistics (OES) Survey are available from:  y Bureau of Labor Statistics,  Office of Occupational Statistics and Employment Projections, 2 Massachusetts Ave. NE., Room 2135, Washington, DC 20212-0001. Telephone: (202) 691-6569. Internet:  http ://www.bls.gov/oes. Data from the Bureau’s National Compensation Survey are available from:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  y 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. You should also look for additional information, specifically tailored to your job offer and circumstances. Try to find fam­ ily, 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-want­ ed ads in newspapers 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 Asso­ ciation of Colleges and Employers or various professional as­ sociations. If you are considering the salary and benefits for a job in an­ other geographic area, make allowances for differences in the cost of living, which may be significantly higher in a large met­ ropolitan area than in a smaller city, town, or rural area. You also should learn the organization’s policy regarding overtime. Depending on the job, you may or may not be exempt from laws requiring the employer to compensate you for over­ time. Find out how many hours you will be expected to work each week and whether you receive overtime pay or compensa­ tory 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 organizations do it every year. How much can you expect to earn after 1, 2, or 3 or more years? An employer cannot be spe­ cific 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.  For more information To learn more about finding and applying for jobs, visit your lo­ cal library and career center. You can find career centers that are part of the U.S. Department of Labor One-Stop Career system by calling toll free (877) 348-0502. The Occupational Outlook Quarterly, a career magazine pub­ lished by the Bureau of Labor Statistics, is one of the resources available at many libraries and career centers. The magazine includes many articles about finding, applying for, and choos­ ing jobs. See, for example:  y “Employment interviewing: Seizing the opportunity and the job,” online at http://www.bls.gov/opub/ooq/2000/summer/art02.pdf. y “Getting back to work: Returning to the labor force after an absence,” online at http ://www.bls.gov/opub/ooq/2004/winter/art03.pdf. y  “How to get a job in the Federal Government,” online at  http://www.bls.gov/opub/ooq/2004/summer/art01.pdf.  y  “Internships: Previewing a profession,” online at  http://www.bls.gov/opub/ooq/2006/summer/art02.pdf.  y  “Resumes, applications, and cover letters,” online at  http://www.bls.gov/opub/ooq/1999/summer/art01.pdf.  Occupational Information Included in the Handbook The Occupational Outlook Handbook is a career guidance re­ source that provides information on hundreds of occupations that comprise 9 out of 10 jobs in the United States. Each oc­ cupation is presented in its own chapter, or “statement,” that discusses the type of work that is performed, the work environ­ ment, the education and training requirements, the possibilities for advancement, and the typical earnings. Each statement is presented in a standard format, making it easy to compare oc­ cupations. Because the Handbook covers so many occupations, it is best used as a reference, and is not meant to be read from cover to cover. Readers should begin by looking at the table of contents, in which similar occupations are grouped in clusters, or by look­ ing at the index, in which occupations are listed alphabetically.  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 employment service offices to classify ap­ plicants and job openings, and by some career information centers and libraries to file occupational information. You can use 0*NET to search for occupations that match your skills, or you may search by keyword or 0*NET code. For each occupation, 0*NET reports in­ formation about different aspects of the job, including tasks performed, knowledge, skills, abilities, and work activities. It also lists interests, work styles, such as inde­ pendence, and work values, such as achievement, that are well suited to the occupation. 0*NET ranks and scores the descriptors in each category by their importance to the occupation. Occupational Information Network Coverage, a section beginning on page 859, cross-references 0*NET codes to occupations covered in the Handbook. 0*NET codes are based on the 2000 Standard Occupational Classification (SOC) system. You can access 0*NET on the Internet at http://www.online.onetcenter.org.  Sections of Occupational Statements Significant Points This section highlights key occupational characteristics dis­ cussed in the statement.  Nature of the Work What workers do on the job, what tools and equipment they use, and how closely they are supervised is discussed in this section. The statement on fire fighting occupations, for example, gives a detailed account of the responsibilities of a firefighter, which  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  include operating the fire hose, providing emergency medical care, and cleaning and maintaining equipment. Some state­ ments mention common alternative job titles or occupational specialties. The statement on accountants and auditors, for ex­ ample, discusses several specialties, including public accoun­ tants, management accountants, and internal auditors. The Handbook is revised every 2 years. This section may be revised for several reasons. One is the emergence of occupa­ tional specialties. For instance, webmasters—who are responsi­ ble for the technical aspects of operating a Web site—constitute a specialty within computer scientists and database adminis­ trators. Another reason for revision is a change in technology that affects the way in which a job is performed. The Internet, for example, 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 restructuring or changes in response to new government regulations. An example is paralegals and legal as­ sistants, who are increasingly being used by law firms in order to lower costs and increase the efficiency of legal services. Work environment. This subsection discuses the workplace, physical activities, and typical hours of workers in the occupa­ tion. It also describes opportunities for part-time work, the ex­ tent of travel required, any special equipment that is used, and the risk of injury that workers may face. In many occupations, people work regular business hours—40 hours a week, Monday through Friday—but many do not. Wait­ ers and waitresses, for example, often work evenings and week­ ends. The work setting can range from a hospital, to a mall, to an offshore oil rig. Truck drivers might be susceptible to injury, while paramedics have high job-related stress. Semiconductor processors 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 average 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 the Bureau of Labor Statistics (BLS). Economists in BLS consult many sources before making changes to the nature of the work section, or any other sec­ tion, of a Handbook statement. Usual sources include articles from newspapers, magazines, and professional journals, as well as the Web sites of professional associations, unions, and trade groups. Information found on the Internet or in periodicals is verified through interviews with individuals employed in the occupation, professional associations, unions, and others with occupational knowledge, such as university professors and ca­ reer counselors. 23  24 Occupational Outlook Handbook  Training, Other qualifications, and Advancement After gathering your initial impressions of what a job is all about, it is important to understand how to prepare for it. The training, other qualifications, and advancement section explains all of the steps necessary to enter and advance in an occupa­ tion. Education and training. This subsection describes the most significant sources of education and training, the type education or training preferred by employers, and the typical length of training. Some common forms of training include a high school diploma, informal on-the-job training, previous work expe­ rience, and a college degree. Other types of training include, but are not limited to, formal training (including internships), the U.S. Armed Forces, and graduate or professional degrees. The type of education or training required for each occupation in the Handbook varies, and two similar occupations can have very different requirements. For example, sales experience is particularly important for many sales jobs, but other sales jobs require formal postsecondary education, such as a bachelor’s degree. Licensure. The kinds of mandatory licenses or certifications associated with an occupation are described in this subsection. To be certified or licensed, a worker usually is required to com­ plete one or more training courses and pass one or more ex­ aminations. Most occupations do not have mandatory licensure or certification requirements, but those that do, for example, include lawyers, pharmacists, and social workers. Some occu­ pations have numerous professional credentials granted by dif­ ferent organizations, in which case the most widely recognized organizations are listed in the Handbook. Other qualifications. Any additional qualifications that are not included in the previous subsections, such as the desirable skills, aptitudes, and personal characteristics that employers look for would be discussed in this section. For example, meet­ ing and convention planners must have excellent interpersonal and organizational skills, the ability to work under pressure, and must pay attention to detail. For some entry-level jobs, per­ sonal 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. This subsec­ tion also includes information about voluntary, entry-level cer­ tifications. Advancement. This subsection details possible advancement opportunities after gaining experience in an occupation. Ad­ vancement can come in several forms, including advancement within the occupation, such as promotion to a management po­ sition; advancement into other occupations, such as leaving a job as a lawyer to become a judge; and advancement to self­ employment, such as an automotive technician opening his or her own repair shop. Certain types of certification can also serve as a form of ad­ vancement. Voluntary certification often demonstrates a level of competency to employers, and can result in more responsibil­ ity, higher pay, or a new job. Accountants, for example, gener­ ally begin their careers without the Certified Public Accountant (CPA) designation. Many choose to pursue a CPA, however, because it increases their chances for advancement.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Information in the training, other qualifications, and advance­ ment section comes from personal interviews with individuals employed in the occupation, Web sites, published training ma­ terials, and interviews with the organizations that grant degrees, certifications, or licenses, or are otherwise associated with the occupation.  Employment This section reports the number of jobs that the occupation provided in 2006, the key industries in which those jobs were found, and, if significant, the number or proportion of self-em­ ployed workers in the occupation. The source of estimated employment in a particular occupa­ tion in the Handbook is the Bureau’s National Employment Matrix, which presents current and projected employment for 311 detailed industries and 754 detailed occupations over the 2006-2016 period. Data in the matrix come primarily from the establishment-based Occupational Employment Statistics (OES) Survey, which reports employment of wage and salary workers only for each occupation in every industry except ag­ riculture and private households. Matrix data also come from the household-based Current Population Survey (CPS), which provides estimates of the number of self-employed and unpaid family workers in each occupation. The matrix also incorpo­ rates CPS data on total employment—wage and salary, selfemployed, and unpaid family workers—in the agriculture and private household industries. The estimate of total employment in each Handbook occu­ pation combines data from several different sources. Further­ more, some Handbook occupations combine several matrix oc­ cupations. For these reasons, employment numbers cited in the Handbook often differ from employment data provided by the OES, CPS, and other employment surveys. When significant, the geographic distribution of jobs is men­ tioned, reflecting CPS data. On the basis of OES survey data, some Handbook statements, such as textile, apparel, and fur­ nishings occupations, list States that employ substantial num­ bers of workers in the occupation.  Job Outlook In planning for the future, it is important to consider potential job growth and job opportunities. This section describes the factors that affect employment growth or decline, and in some instances, describes the relationship between the number of job seekers and the number of job openings. Employment change. This subsection reflects the occupa­ tional projections in the National Employment Matrix. Each occupation is assigned a descriptive phrase based on its project­ ed percent change in employment over the 2006-2016 period. This phrase describes the occupation’s projected employment change relative to the projected average employment change for all occupations combined. (These phrases are listed at the end of Occupational Information Included in the Handbook.) Many factors are examined in projecting the employment change for each occupation. One such factor is changes in tech­ nology. New technology can either create new job opportunities or eliminate jobs by making workers obsolete. The Internet has increased the demand for workers in the computer and infor­ mation technology fields, such as computer support specialists  and systems administrators. However, the Internet also has ad­ versely affected travel agents, because many people now book tickets, hotels, and rental cars online. Another factor that influences employment trends is demo­ graphic change. By affecting the services demanded, demo­ graphic change can influence occupational growth or decline. For example, an aging population will demand more health care services, leading to occupational growth in health care occupa­ tions. Another factor affecting job growth or decline is changes in business practices, such as restructuring businesses or outsourc­ ing (contracting out) work. Corporate restructuring has made many organizations “flatter,” resulting in fewer middle manage­ ment positions. Also, 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. Jobs in some oc­ cupations, such as computer programmers and customer service representatives, have been “offshored”—moved to low-wage foreign countries. The substitution of one product or service for another can also affect employment projections. For example, consump­ tion of plastic products has grown as they have been substituted for metal goods in consumer and manufactured products in re­ cent 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 af­ fect on employment. Often, foreign manufacturers can produce goods more cheaply than they can be produced in the United States, and the cost savings can be passed on in the form of lower prices with which U.S. manufacturers cannot compete. Increased international competition is a major reason for the decline in employment among textile, apparel, and furnishings workers. Another factor is job growth or decline in key industries. If an occupation is concentrated in an industry that is growing rap­ idly, it is likely that that occupation will grow rapidly as well. For example, the growing need for business expertise is fueling demand for consulting services. This is expected to cause rapid growth in the management, scientific, and technical consulting services industry, which, in turn, will lead to rapid growth in the employment of management analysts. Job prospects. In some cases, the Handbook mentions that an occupation is likely to provide numerous job openings or, in others, that an occupation likely will have relatively few open­ ings. This information reflects the projected change in employ­ ment, as well as replacement needs. Large occupations in which workers frequently enter and leave, such as food and beverage serving occupations, generally provide the most job openings— reflecting the need to replace workers who transfer to other oc­ cupations or who stop working. Some Handbook statements discuss the relationship between the number of job seekers and the number of job openings. (The phrases used to describe that relationship appear at the end of Occupational Information Included in the Handbook.) Job op­ portunities are affected by several factors, including the cre­ ation of new jobs, the number of people who apply for jobs, and number of people who leave the occupation. In some oc­ Digitized forthe FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Occupational Information Included in the Handbook 25  cupations, there is a rough balance between job seekers and job openings, resulting in good opportunities. In other occupations, 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 competition for jobs. Variation in job opportunities by industry, educational attainment, size of firm, or geographic location also may be discussed. Even in crowded occupations, job openings do exist. Good students or highly qualified individuals should not be deterred from undertaking training for, or seeking entry into, those occupations. Employment projections table. The employment projections table lists employment statistics from the National Employment Matrix. It includes 2006 employment, projected 2016 employ­ ment, and the 2006-2016 change in employment in both nu­ merical and percent forms. Numbers below ten thousand are rounded to the nearest hundred, numbers above ten thousand are rounded to the nearest thousand, and percents are rounded to the nearest whole number. Numerical and percent changes are calculated using non-rounded 2006 and 2016 employment figures, and then are rounded for presentation in the employ­ ment projections table.  Earnings This section discusses typical earnings and how workers are compensated—by means of annual salaries, hourly wages, commissions, piece rates, tips, or bonuses. Within every oc­ cupation, earnings vary by experience, responsibility, perfor­ mance, tenure, and geographic area. Almost every statement in the Handbook contains 2006 OES-survey earnings data for wage and salary workers. Information on earnings in the major industries in which the occupation 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 nonBLS sources. Starting and average salaries of Federal workers are based on 2007 data from the U.S. Office of Personnel Man­ agement. The National Association of Colleges and Employ­ ers supplies information on average salary offers in 2007 for students graduating with a bachelor’s, master’s, or Ph.D. degree in certain fields. A few statements 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 compensa­ tion costs to employers. Benefits such as paid vacation, health insurance, and sick leave may not be mentioned, because they are widespread. In some occupational statements, the absence of these traditional benefits is pointed out. Although not as common as traditional benefits, flexible hours and profit-shar­ ing plans may be offered to attract and 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 occupations, the percentage of workers affiliated with a union is listed. These data come from the CPS survey. Unless otherwise noted, the source of employment and earnings data presented in the Handbook is the Bureau of  26 Occupational Outlook Handbook  Labor Statistics. Nearly all Handbook statements cite employ­ ment and wage data from the OES survey, and some include data from outside sources. OES data may be used to compare wages among occupations; outside data, however, may not be used in this manner, because characteristics of these data vary widely.  Related occupations Occupations involving similar duties, skills, interests, educa­ tion, 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, government agencies, unions, and other organizations that can provide occupational information. In some cases, toll free tele­ phone numbers and Internet addresses also are listed. Free or relatively inexpensive publications offering more information may be mentioned; some of these publications also may be available in libraries, in school career centers, in guidance of­ fices, or on the Internet. Most of the organizations listed in this section were sources of information on the nature of the work, training, and job outlook discussed in the Handbook. For additional sources of information, also read the earlier chapters, “Sources of Career Information” and “Sources of Ed­ ucation, Training, and Financial Aid.”   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 describe projected changes in employment. It also explains the terms used to describe the relationship between the number of job openings and the number of job seekers. The description of this relationship in a particular occupation reflects the knowledge and judgment of economists in the BLS Office of Occupational Statistics and Em­ ployment Projections.  Changing employment between 2006 and 2016 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 change  increase 21 percent or more increase 14 to 20 percent increase 7 to 13 percent increase 3 to 6 percent decrease 2 percent to increase 2 percent decrease 3 to 9 percent decrease 10 percent or more  Decline slowly or moderately Decline rapidly  Opportunities and competition for jobs If the statement reads:  Job openings compared with job seekers may be:  Very good to excellent opportunities Good or favorable opportunities May face, or can expect, keen competition  More numerous In rough balance Fewer  Management, Business, and Financial Occupations Management Occupations Administrative Services Managers (0*NET 11-3011.00)  Significant Points •  Applicants will face keen competition for the limited number of top-level management jobs, but competi­ tion should be less severe for lower-level management jobs; demand should be strong for facility managers.  •  Administrative services managers work throughout private industry and government and have a wide range of responsibilities, experience, earnings, and education.  •  services, which are discussed in the Handbook statement on top executives. In small organizations, a single administrative services man­ ager may oversee all support services. In larger ones, how­ ever, first-line administrative services managers often report to mid-level managers who, in turn, report to owners or top-level managers, sometimes called director of administration, or vice president of administration. The nature of managerial jobs varies as significantly as the range of administrative services required by organizations. For example, administrative services managers who work as con­ tract administrators oversee the preparation, analysis, negotia­ tion, 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,  Like other managers, administrative services manag­ ers should be analytical, detail-oriented, flexible, de­ cisive, and have good leadership and communication skills.  Nature of the Work Administrative services managers coordinate and direct the many support services that allow organizations to operate ef­ ficiently. They perform a broad range of duties. They might, for example, oversee secretarial and reception services, admin­ istration, payroll, conference planning and travel, information and data processing, mail, materials scheduling and distribu­ tion, printing and reproduction, records management, telecom­ munications management, security, parking, energy consump­ tion, and personal property procurement, supply, recycling, and disposal. They manage support services for organizations as diverse as insurance companies, computer manufacturers, and government offices. Specific duties for these managers vary by degree of responsi­ bility and authority. First-line administrative services managers directly 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 im­ prove productivity and customer service, and define the re­ sponsibilities of supervisory-level 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 formula­ tion of personnel policy. Some of these managers advance to upper level positions, such as vice president of administrative  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Administrative services managers coordinate and direct sup­ port services that allow organizations to operate efficiently. 27  28 Occupational Outlook Handbook  and store supplies, while others dispose of surplus property or oversee the disposal of unclaimed property. Administrative services managers who work as facility man­ agers plan, design, and manage buildings, grounds, equipment, and supplies, in addition to people. This task requires integrating the principles of business administration, information technolo­ gy, architecture, engineering, and behavioral science. Although the specific tasks assigned to facility managers vary substan­ tially depending on the organization, the duties fall into several categories, relating to operations and maintenance, real estate, project planning and management, leadership and communica­ tion, finance, quality assessment, facility function, technology integration, and management of human and environmental fac­ tors. 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 renovation projects for a variety of reasons, ranging from im­ proving efficiency to ensuring that facilities meet government regulations and environmental, health, and security standards. For example, they may influence a building renovation project toward a greater use of “green” energy-electricity generated from alternative and cost efficient energy sources, such as solar panels or fuel cells. Additionally, facility managers continually monitor the facility to ensure that it remains safe, secure, and well-maintained. Often, the facility manager is responsible for directing staff, including maintenance, grounds, and custodial workers. Work environment. Administrative services managers gen­ erally work in comfortable offices. Managers involved in con­ tract administration and personal property procurement, use, and disposal may travel between their home office, branch of­ fices, 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 maintenance 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. Facility managers also may spend time outdoors, supervising and handling a variety of issues related to groundskeeping, landscaping, construction, security, and parking. Most administrative services managers work a standard 40hour week. However, uncompensated overtime frequently is required to resolve problems and meet deadlines. Facility man­ agers often are “on call” to address a variety of problems that can arise in a facility during nonwork hours.  Training, Other Qualifications, and Advancement Education and experience requirements for these managers vary widely, depending on the size and complexity of the or­ ganization. In small organizations, experience may be the only requirement needed to enter a position as an office manager. When an opening in administrative services management oc­ curs, the office manager may be promoted to the position based on past performance. In large organizations, however, admin­ istrative services managers normally are hired from outside and each position has formal education and experience require­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ments. Some administrative services managers have advanced degrees. Education and training. Specific requirements vary by job responsibility. For first-line administrative services managers of secretarial, mailroom, and related support activities, many employers prefer to hire people who have 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 admin­ istration, generally need at least a bachelor’s degree in business, human resources, or finance. Regardless of major, the curricu­ lum should include courses in office technology, accounting, business mathematics, computer applications, human resourc­ es, and business law. Most facility managers have an undergraduate or graduate degree in engineering, architecture, 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 accompanied by related work experience reflecting their ability. For this reason, many administrative services managers have advanced through the ranks of their organization, acquiring work experience in various administrative positions before as­ suming first-line supervisory duties. All managers who oversee departmental supervisors should be familiar with office proce­ dures and equipment. Managers of personal property acquisi­ tion and disposal need experience in purchasing and sales, and knowledge of a variety of supplies, machinery, and equipment. Managers concerned with supply, inventory, and distribution should be experienced in receiving, warehousing, packaging, shipping, transportation, and related operations. Contract ad­ ministrators may have worked as contract specialists, cost analysts, or procurement specialists. Managers of unclaimed property often have experience in insurance claims analysis and records management. Other qualifications. Persons interested in becoming admin­ istrative services managers should have good leadership and communication skills and be able to establish effective working relationships with many different people, ranging from man­ agers, supervisors, and professionals, to clerks and blue-collar workers. They should be analytical, detail-oriented, flexible, and decisive. They must be able to coordinate several activi­ ties at once, quickly analyze and resolve specific problems, and cope with deadlines. Certification and advancement. Most administrative ser­ vices managers in small organizations advance by moving to other management positions or to a larger organization. Ad­ vancement is easier in large firms that employ several levels of administrative services managers. Attainment of the Cer­ tified Manager (CM) designation offered by the Institute of Certified Professional Managers (ICPM), through education, work experience, and successful completion of examinations, can enhance a manager’s advancement potential. In addition, a master’s degree in business administration or a related field enhances a first-level manager’s opportunities to advance to a  Management, Business, and Financial Occupations 29  mid-level management position, such as director of adminis­ trative services, and eventually to a top-level management po­ sition, such as executive vice president for administrative ser­ vices. Those with enough money and experience can establish their own management consulting firm. Advancement of facility managers is based on the practic­ es 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 progression of facility management positions that offer ad­ ditional responsibilities. Completion of the competency-based professional certification program offered by the International Facility Management Association can give prospective candi­ dates an advantage. In order to qualify for this Certified Facility Manager (CFM) designation, applicants must meet certain edu­ cational and experience requirements. People entering the pro­ fession also may obtain the Facility Management Professional (FMP) credential, a stepping stone to the CFM.  Employment Administrative services managers held about 247,000 jobs in 2006. About 65 percent worked in service-providing industries, including Federal, State, and local government; health care; finance and insurance; professional, scientific, and technical services; administrative and support services; and educational services, public and private. Most of the remaining managers worked in wholesale and retail trade, in management of compa­ nies and enterprises, or in manufacturing.  Job Outlook The number of jobs is projected to grow as fast as average for all occupations. Applicants will face keen competition for the limited number of top-level management jobs through 2016. Better opportunities are expected for lower-level management jobs. Demand should be strong for facility managers. Employment change. Employment of administrative servic­ es managers is projected to grow 12 percent over the 2006-16 decade, about as fast as the average for all occupations. De­ mand should be strong for facility managers because businesses increasingly realize the importance of maintaining, securing, and efficiently operating their facilities, which are very large investments for most organizations. Cost-cutting measures to improve profitability, streamline operations, and compete glob­ ally will continue to be addressed by many public and private organizations, resulting in more firms outsourcing facility man­ agement services or hiring qualified facility managers who are capable achieving these goals in-house. Administrative services managers employed in management services and management consulting should be in demand. The proliferation of facility management outsourcing should result in employment growth in facilities management firms as com­  panies increasingly look to outside specialists to handle the myriad of tasks that have become increasingly complex and ex­ pensive. Some of the services outsourced include food service, space planning and design, janitorial, power plant, grounds, of­ fice, safety, property, video surveillance, maintenance and re­ pairs, and parking management. Job prospects. Applicants will face keen competition for the limited number of top-level management jobs; competition should be less severe for lower-level management jobs. Despite average job growth, continuing corporate restruc­ turing and increasing use of office technology may result in a more streamlined organizational 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 managers. However, the ef­ fects of these changes on employment should be less severe for facility managers and other administrative services managers who have a wide range of responsibilities, than for other middle managers who specialize in certain functions. In addition to new administrative services management jobs created over the 2006-16 projection period, many job openings will stem from the need to replace workers who transfer to other jobs, retire, or leave the occupation for other reasons. Job opportunities may vary from year to year because the strength of the economy affects demand for administrative ser­ vices managers. Industries least likely to be affected by eco­ nomic fluctuations tend to be the most stable places for employ­ ment.  Earnings Earnings of administrative services managers vary greatly de­ pending on the employer, the specialty, and the geographic area. In general, however, median annual earnings of wage and salary administrative services managers in May 2006 were $67,690. The middle 50 percent earned between $48,200 and $90,350. The lowest 10 percent earned less than $34,970, and the highest 10 percent earned more than $117,610. Median annual earn­ ings in the industries employing the largest numbers of these managers were: Management of companies and enterprises....................... $77,040 General medical and surgical hospitals................................ 72,210 State government...................................................................68,410 Local government.................................................................67,050 Colleges, universities, and professional schools.................. 64,810 In the Federal Government, industrial specialists averaged $74,042 a year in 2007. Corresponding averages were $73,455 for facility operations services managers, $72,730 for industrial property managers, $65,351 for property disposal specialists,  Projections data from the National Employment Matrix Occupational Title Administrative services managers.......................................................  soc Code 11-3011  Employment, 2006 247,000  Projected employment, 2016 276,000  Change, 2006-16 Number Percent 29,000 12  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  30 Occupational Outlook Handbook  $71,948 for administrative officers, and $63,756 for support services administrators.  Related Occupations Administrative services managers direct and coordinate support services and oversee the purchase, use, and disposal of personal property. Occupations with similar functions include office and administrative support worker supervisors and managers; cost estimators; property, real estate, and community associa­ tion managers; purchasing managers, buyers, and purchasing agents; and top executives.  1  Sources of Additional Information For information about careers and education and degree pro­ grams in facility management, as well as the Certified Facility Manager designation, contact: V International Facility Management Association, 1 East Greenway Plaza, Suite 1100, Houston, TX 77046-0194. Internet: http://www.ifma.org For information about the Certified Manager (CM) designa­ tion, contact: y Institute of Certified Professional Managers, James Madison University, MSC 5504, Harrisonburg, VA 22807. For information on training and classes for professional of­ fice management personnel, contact: y Association of Professional Office Managers, 1 Research Court, Suite #450, Rockville, MD 20850. Internet: http://www.apomonline.org  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 is expected for these highly coveted jobs.  •  College graduates with related experience, a high level of creativity, strong communication skills, and computer skills should have the best job opportuni­ ties.  •  High earnings, substantial travel, and long hours, in­ cluding evenings and weekends, are common.  •  Because of the importance and high visibility of their jobs, these managers often are prime candidates for advancement to the highest ranks.  Nature of the Work Advertising, marketing, promotions, public relations, and sales managers coordinate their companies’ market research, market­ ing strategy, sales, advertising, promotion, pricing, product de­ velopment, and public relations activities. In small firms, the owner or chief executive officer might assume all advertising, promotions, marketing, sales, and public relations responsibili­ ties. In large firms, which may offer numerous products and   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ..nniPnf These managers have a wide range of educational back­ grounds. services nationally or even worldwide, an executive vice presi­ dent directs overall advertising, marketing, promotions, sales, and public relations policies. (Executive vice presidents are included in the Handbook statement on top executives.) Advertising managers. Advertising managers oversee ad­ vertising and promotion staffs, which usually are small, except in the largest firms. In a small firm, managers may serve as liai­ sons between the firm and the advertising or promotion agency to which many advertising or promotional functions are con­ tracted 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 depart­ ment develops the subject matter and presentation of advertis­ ing. The creative director oversees the copy chief, art direc­ tor, and associated staff. The media director oversees planning groups that select the communication media—for example, ra­ dio, television, newspapers, magazines, the Internet, or outdoor signs—to disseminate the advertising. Marketing managers. Marketing managers develop the firm’s marketing strategy in detail. With the help of subordi­ nates, including product development managers and market research managers, they estimate the demand for products and services offered by the firm and its competitors. In addition, they identify potential markets—for example, business firms, wholesalers, retailers, government, or the general public. Mar­ keting managers develop pricing strategy to help firms maxi­ mize profits and market share while ensuring that the firm’s customers are satisfied. In collaboration with sales, product development, and other managers, they monitor trends that in­ dicate the need for new products and services, and they oversee product development. Marketing managers work with advertis­ ing and promotion managers to promote the firm’s products and services and to attract potential users. Promotions managers. Promotions managers supervise staffs of promotions specialists. These managers direct promo­ tions programs that combine advertising with purchase incen­ tives to increase sales. In an effort to establish closer contact  Management, Business, and Financial Occupations 31  with purchasers—dealers, distributors, or consumers—promo­ tions programs may use direct mail, telemarketing, television or radio advertising, catalogs, exhibits, inserts in newspapers, Internet advertisements or Web sites, in-store displays or prod­ uct endorsements, and special events. Purchasing incentives may include discounts, samples, gifts, rebates, coupons, sweep­ stakes, and contests. Public relations managers. Public relations managers super­ vise public relations specialists. (See the Handbook statement on public relations specialists.) These managers direct publicity programs to a targeted audience. They often specialize in a specific area, such as crisis management, or in a specific indus­ try, such as health care. They use every available communica­ tion medium to maintain the support of the specific group upon whom their organization’s success depends, such as consumers, stockholders, or the general public. For example, public rela­ tions 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 pro­ motions programs for compatibility with public relations ef­ forts and serve as the eyes and ears of top management. They observe social, economic, and political trends that might ulti­ mately affect the firm, and they make recommendations to en­ hance the firm’s image on the basis of those trends. Public relations managers may confer with labor relations managers to produce internal company communications—such as newsletters about employee-management relations—and with financial managers to produce company reports. They as­ sist company executives in drafting speeches, arranging inter­ views, and maintaining other forms of public contact; oversee company archives; and respond to requests for information. In addition, some of these managers handle special events, such as the sponsorship of races, parties introducing new products, or other activities that the firm supports in order to gain public attention through the press without advertising directly. Sales managers. Sales managers direct the firm’s sales pro­ gram. They assign sales territories, set goals, and establish train­ ing programs for the sales representatives. (See the Handbook statement on sales representatives, wholesale and manufactur­ ing). Sales managers advise the sales representatives on ways to improve their sales performance. In large, multi-product firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and dis­ tributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and to monitor customers’ preferences. Such information is vital in the development of products and the maximization of profits. Work environment. Advertising, marketing, promotions, public relations, and sales managers work in offices close to those of top managers. Working under pressure 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 mandatory. Sales managers travel to national, regional, and lo­ cal offices and to the offices of various dealers and distributors. Advertising and promotions managers may travel to meet with   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  clients or representatives of communications media. At times, public relations managers travel to meet with special-interest groups or government officials. Job transfers between head­ quarters and regional offices are common, particularly among sales managers. Long hours, including evenings and weekends are common. In 2006, about two-thirds of advertising, marketing, and public relations managers worked more than 40 hours a week.  Training, Other Qualifications, and Advancement A wide range of educational backgrounds is suitable for entry into advertising, marketing, promotions, public relations, and sales managerial jobs, but many employers prefer those with experience in related occupations. Education and training. For marketing, sales, and promo­ tions management positions, some employers prefer a bache­ lor’s or master’s degree in business administration with an em­ phasis on marketing. Courses in business law, management, economics, accounting, finance, mathematics, and statistics are advantageous. Additionally, the completion of an internship while the candidate is in school is highly recommended. 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 administration, is preferred. For advertising management positions, some employers pre­ fer a bachelor’s degree in advertising or journalism. A course of study should include, for example, marketing, consumer behavior, market research, sales, communication methods and technology, and visual arts, and art history and photography. For public relations management positions, some employ­ ers prefer 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. Most advertising, marketing, promotions, public relations, and sales management positions are filled by promoting expe­ rienced staff or related professional personnel. For example, many managers are former sales representatives, purchasing agents, buyers, or product, advertising, promotions, or public relations specialists. In small firms, where the number of posi­ tions is limited, advancement to a management position usu­ ally comes slowly. In large firms, promotion may occur more quickly. Other qualifications. Familiarity with word-processing and database applications is important for most positions. Com­ puter skills are vital because marketing, product promotion, and advertising on the Internet are increasingly common. Also, the ability to communicate in a foreign language may open up em­ ployment opportunities in many rapidly growing areas around the country, especially cities with large Spanish-speaking popu­ lations. Persons interested in becoming advertising, marketing, pro­ motions, public relations, and sales managers should be mature, creative, highly motivated, resistant to stress, flexible, and deci­ sive. The ability to communicate persuasively, both orally and in writing, with other managers, staff, and the public is vital. These managers also need tact, good judgment, and exceptional  32 Occupational Outlook Handbook  ability to establish and maintain effective personal relationships with supervisory and professional staff members and client firms. Certification and advancement. Some associations offer certification programs for these managers. Certification—an indication of competence and achievement—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. Today, there are numer­ ous management certification programs based on education and job performance. In addition, The Public Relations Society of America offers a certification program for public relations prac­ titioners based on years of experience and performance on an examination. Although experience, ability, and leadership are emphasized for promotion, advancement can be accelerated by participation in management training programs conducted by larger firms. Many firms also provide their employees with continuing edu­ cation opportunities—either in-house or at local colleges and universities—and encourage employee participation in seminars and conferences, often held by professional societies. In col­ laboration with colleges and universities, numerous marketing and related associations sponsor national or local management training programs. Course subjects include brand and prod­ uct management, international marketing, sales management evaluation, telemarketing and direct sales, interactive market­ ing, promotion, marketing communication, market research, organizational communication, and data-processing systems procedures and management. Many firms pay all or part of the cost for employees who successfully complete courses. Because of the importance and high visibility of their jobs, advertising, marketing, promotions, public relations, and sales managers often are prime candidates for advancement to the highest ranks. Well-trained, experienced, and successful man­ agers may be promoted to higher positions in their own or an­ other firm; some become top executives. Managers with ex­ tensive experience and sufficient capital may open their own businesses.  Employment Advertising, marketing, promotions, public relations, and sales managers held about 583,000 jobs in 2006. The following tabu­ lation shows the distribution of jobs by occupational specialty:  Sales managers.................................................................... 318,000 Marketing managers.............................................................167,000 Public relations managers..................................................... 50,000 Advertising and promotions managers.................................47,000 These managers were found in virtually every industry. Sales managers held more than half of the jobs; most were employed in wholesale trade, retail trade, manufacturing, and finance and insurance industries. Marketing managers held more than a fourth of the jobs; the professional, scientific, and technical services, and the finance and insurance industries employed al­ most one-third of marketing managers. About one-fourth of ad­ vertising and promotions managers worked in the professional, scientific, and technical services industries and the wholesale trade. Most public relations managers were employed in ser­ vice-providing industries, such as professional, scientific, and technical services; educational services, public and private; fi­ nance and insurance; and health care and social assistance.  Job Outlook Average job growth is projected, but keen competition is ex­ pected for these highly coveted jobs. Employment change. Employment of advertising, market­ ing, promotions, public relations, and sales managers is expect­ ed to increase by 12 percent through 2016—about as fast as the average for all occupations. Job growth will be spurred by intense domestic and global competition in products and ser­ vices offered to consumers and increasing activity in television, radio, and outdoor advertising. Projected employment growth varies by industry. For ex­ ample, employment is projected to grow much faster than av­ erage in scientific, professional, and related services—such as computer systems design and related services, and advertising and related services—as businesses increasingly hire contrac­ tors for these services instead of additional full-time staff. By contrast, a decline in employment is expected in many manu­ facturing industries. Job prospects. Advertising, marketing, promotions, public relations, and sales manager jobs are highly coveted and will be sought by other managers or highly experienced professionals, resulting in keen competition. College graduates with related experience, a high level of creativity, and strong communica­ tion skills should have the best job opportunities. In particular, employers will seek those who have the computer skills to con-  Projections data from the National Employment Matrix Occupational Title  SOC Code  Employment, 2006  Advertising, marketing, promotions, public relations, and sales managers................................................................... 11-2000 Advertising and promotions managers................................. 11-2011 Marketing and sales managers............................................ 11-2020 Marketing managers............................................ 11-2021 Sales managers.................................... 11-2022 Public relations managers.......................................... 11-2031 NOTE: Data in this table are rounded. See the discussion of the employment projections table  tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  583,000 47,000 486,000 167,000 318,000 50,000  Projected employment, 2016 651,000 50,000 542,000 192,000 351,000 58.000  Change, 2006-16 Number Percent 68,000 3,000 57,000 24,000 33,000 8.400  12 6 12 14 10 17  in the Handbook introductory chapter on Occupational Informa-  Management, Business, and Financial Occupations 33  duct advertising, marketing, promotions, public relations, and sales activities on the Internet.  Earnings Median annual earnings in May 2006 were $73,060 for adver­ tising and promotions managers, $98,720 for marketing manag­ ers, $91,560 for sales managers, and $82,180 for public rela­ tions managers. Median annual earnings of wage and salary advertising and promotions managers in May 2006 in the advertising and re­ lated services industry were $97,540. Median annual earnings in the industries employing the larg­ est numbers of marketing managers were: Computer systems design and related services.................$119,540 Management of companies and enterprises........................ 103,070 Management, scientific, and technical consulting services............................................................................... 100,200 Architectural, engineering, and related services...................92,480 Depository credit intermediation..........................................91,420 Median annual earnings in the industries employing the larg­ est numbers of sales managers were: Professional and commercial equipment and supplies merchant wholesalers...................................................... $112,810 Wholesale electronic markets and agentsand brokers........ 107,420 Automobile dealers..............................................................101,110 Management of companies and enterprises..........................98,240 Machinery, equipment, and supplies merchant wholesalers.......................................................... 93,450 Salary levels vary substantially, depending upon the level of managerial responsibility, length of service, education, size of firm, location, and industry. For example, manufacturing firms usually pay these managers higher salaries than nonmanufactur­ ing firms. For sales managers, the size of their sales territory is another important determinant of salary. Many managers earn bonuses equal to 10 percent or more of their salaries. According to a survey by the National Association of Col­ leges and Employers, starting salaries for marketing majors graduating in 2007 averaged $40,161 and those for advertising majors averaged $33,831.  Related Occupations Advertising, marketing, promotions, public relations, and sales managers direct the sale of products and services offered by their firms and the communication of information about their firms’ activities. Other workers involved with advertising, mar­ keting, promotions, public relations, and sales include actors, producers, and directors; advertising sales agents; artists and related workers; demonstrators, product promoters, and mod­ els; market and survey researchers; public relations specialists; sales representatives, wholesale and manufacturing; and writers and editors.  Sources of Additional Information For information about careers in advertising management, con­ tact:  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  > 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 public relations management is available from: >■ Public Relations Society of America, 33 Maiden LaNE., New York, NY 10038-5150. Internet: http://www.prsa.org  Computer and Information Systems Managers (0*NET 11-3021.00)  Significant Points  •  Employment of computer and information systems managers is expected to grow faster than the average for all occupations through the year 2016.  •  Many managers possess advanced technical knowl­ edge gained from working in a computer occupation.  •  Job opportunities will be best for applicants with a strong understanding of business and good commu­ nication skills.  Nature of the Work In the modem workplace, it is imperative that technology works both effectively and reliably. Computer and informa­ tion systems managers play a vital role in the implementation of technology within their organizations. They do everything from helping to constmct a business plan to overseeing network security to directing Internet operations. Computer and information systems managers plan, coordi­ nate, and direct research and facilitate 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. This re­ quires a strong understanding of both technology and business practices. Computer and information systems managers direct the work of systems analysts, computer programmers, support special­ ists, and other computer-related workers. They plan and coor­ dinate activities such as installation and upgrading of hardware and software, programming and systems design, development of computer networks, and implementation of Internet and in­ tranet sites. They are increasingly involved with the upkeep, maintenance, and security of networks. They analyze the computer and information needs of their organizations from an operational and strategic perspective and determine imme­ diate and long-range personnel and equipment requirements. They assign and review the work of their subordinates and stay abreast of the latest technology to ensure the organization does not lag behind competitors. The duties of computer and information systems managers vary greatly. Chief technology officers (CTOs), for example, evaluate the newest and most innovative technologies and de­ termine how these can help their organizations. The chief tech­  34 Occupational Outlook Handbook  nology officer often reports to the organization’s chief informa­ tion officer, manages and plans technical standards, and tends to the daily information technology issues of the firm. (Chief information officers are covered in a separate Handbook state­ ment on top executives.) Because of the rapid pace of techno­ logical change, chief technology officers must constantly be on the lookout for developments that could benefit their organiza­ tions. Once a useful tool has been identified, the CTO must determine an implementation strategy and sell that strategy to management. Management information systems (MIS) directors or infor­ mation technology (IT) directors manage computing resources for their organizations. They often work under the chief in­ formation officer and plan and direct the work of subordinate information technology employees. These managers ensure the availability, continuity, and security of data and information technology services in their organizations. In this capacity, they oversee a variety of user services such as an organization’s help desk, which employees can call with questions or problems. MIS directors also may make hardware and software upgrade recommendations based on their experience with an organiza­ tion’s technology. Project managers develop requirements, budgets, and sched­ ules for their firms’ information technology projects. They coordinate such projects from development through implemen­ tation, working with internal and external clients, vendors, con­ sultants, and computer specialists. These managers are increas­ ingly involved in projects that upgrade the information security of an organization. Work environment. Computer and information systems managers spend most of their time in offices. Most work at least 40 hours a week and some may have to work evenings and weekends to meet deadlines or solve unexpected problems. Some computer and information systems managers may experi­ ence considerable pressure in meeting technical goals with short deadlines or tight budgets. As networks continue to expand and more work is done remotely, computer and information systems managers have to communicate with and oversee offsite em­ ployees using modems, laptops, e-mail, and the Internet.  Computer and information systems managers supervise other information technology employees.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Like other workers who spend most of their time using com­ puters, computer and information systems managers are sus­ ceptible to eyestrain, back discomfort, and hand and wrist prob­ lems such as carpal tunnel syndrome.  Training, Other Qualifications, and Advancement Computer and information systems managers are generally ex­ perienced workers who have both technical expertise and an un­ derstanding of business and management principles. A strong educational background and experience in a variety of technical fields is needed. Education and training. A bachelor’s degree usually is re­ quired for management positions, although employers often prefer a graduate degree, especially an MBA with technology as a core component. This degree differs from a traditional MBA in that there is a heavy emphasis on information technology in addition to the standard business curriculum. This preparation is becoming important because more computer and information systems managers are making important technology decisions as well as business decisions for their organizations. Some universities offer degrees in management information systems. These degrees blend technical subjects with business, accounting, and communications courses. A few computer and information systems managers attain their positions with only an associate or trade school degree, but they must have suf­ ficient experience and must have acquired additional skills on the job. To aid their professional advancement, many managers with an associate degree eventually earn a bachelor’s or mas­ ter’s degree while working. Certification and other qualifications. Computer and infor­ mation systems managers need a broad range of skills. Employ­ ers look for managers who have experience with the specific software or technology 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 and, consequently, many computer and information sys­ tems managers are called on to make important business deci­ sions. Managers need a keen understanding of people, manage­ ment processes, and customers’ needs. Advanced technical knowledge is essential for computer and information systems managers, who must understand and guide the work of their subordinates yet also explain the work in nontechnical terms to senior managers and potential custom­ ers. Therefore, many computer and information systems man­ agers have worked as a systems analyst, for example, or as a computer support specialist, programmer, or other information technology professional. Although certification is not necessarily required for most computer and information systems manager positions, there is a wide variety of certifications available that may be helpful in getting a job. These certifications are often product-specific, and are generally administered by software or hardware com­ panies rather than independent organizations. As computer systems become more closely connected with day-to-day operations of businesses, computer and information systems managers are also expected to be aware of business practices. They must possess strong interpersonal, communica­ tion, and leadership skills because they are required to interact  Management, Business, and Financial Occupations 35  not only with staff members, but also with other people inside and outside their organizations. They must possess team skills to work on group projects and other collaborative efforts. They also must have an understanding of how a business functions, how it earns revenue, and how technology relates to the core competencies of the business. As a result, many firms now pre­ fer to give these positions to people who have spent time out­ side purely technical fields. Advancement. Computer and information systems managers may advance to progressively higher leadership positions in the information technology department. A project manager might, for instance, move up to the chief technology officer position and then to chief information officer. On occasion, some may become managers in non-technical areas such as marketing, hu­ man resources, or sales because in high technology firms an understanding of technical issues is helpful in those areas.  Employment Computer and information systems managers held about 264,000 jobs in 2006. About 1 in 4 computer managers worked in ser­ vice-providing industries, mainly in computer systems design and related services. This industry provides services related to the commercial use of computers on a contract basis, including custom computer programming services; computer systems in­ tegration design services; computer facilities management ser­ vices, including computer systems or data-processing facilities support services; and other computer-related services, such as disaster recovery services and software installation. Other large employers include insurance and financial firms, government agencies, and manufacturers.  Job Outlook The increasing use of technology in the workplace is projected to lead to faster than average growth in this occupation. Due to employment increases and because of the high demand for technical workers, prospects should be excellent for qualified job candidates. Employment change. Employment of computer and infor­ mation systems managers is expected to grow 16 percent over the 2006-16 decade, which is faster than the average for all oc­ cupations. New applications of technology in the workplace will continue to drive demand for workers, fueling the need for more managers. Despite the downturn in the technology sector in the early part of the decade, the outlook for computer and information systems managers remains strong. To remain competitive, firms will continue to install sophisticated computer networks and set up more complex intranets and websites. Keeping a computer network running smoothly is essential to almost ev­ ery organization.  Because so much business is carried out over computer net­ works, security will continue to be an important issue for busi­ nesses and other organizations. Although software developers continue to improve their products to remove vulnerabilities, attackers are becoming ever more complex in their methods. Organizations need to understand how their systems are vulner­ able and how to protect their infrastructure and Internet sites from hackers, viruses, and other attacks. The emergence of security as a key concern for businesses should lead to strong growth for computer managers. Firms will increasingly hire security experts to fill key leadership roles in their information technology departments because the integrity of their comput­ ing environments is of utmost importance. As a result, there will be a high demand for managers proficient in computer se­ curity issues. With the explosive growth of electronic commerce and the capacity of the Internet to create new relationships with cus­ tomers, the role of computer and information systems managers will continue to evolve. Workers who have experience in web applications and Internet technologies will become increasingly vital to their companies. Opportunities for those who wish to become computer and information 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 pro­ grammers, computer software engineers, computer support spe­ cialists and systems administrators, computer systems analysts, and computer scientists and database administrators elsewhere in the Handbook.) Job prospects. Prospects for qualified computer and infor­ mation systems managers should be excellent. Fast-paced oc­ cupational growth and the limited supply of technical workers will lead to a wealth of opportunities for qualified individuals. While technical workers remain relatively scarce in the United States, the demand for them continues to rise. This situation was exacerbated by the economic downturn in the early 2000s, when many technical professionals lost their jobs. Since then, many workers have chosen to avoid this work since it is per­ ceived to have poor prospects. Workers with specialized technical knowledge and strong communications skills will have the best prospects. People with management skills and an understanding of business practices and principles will have excellent opportunities, as companies are increasingly looking to technology to drive their revenue.  Earnings Earnings for computer and information systems managers vary by specialty and level of responsibility. Median annual earn­ ings of these managers in May 2006 were $101,580. The mid­ dle 50 percent earned between $79,240 and $129,250. Median  Projections data from the National Employment Matrix Occupational Title  soc Code  Employment, 2006  Projected employment, 2016 307,000  Change, 2006-16 Number Percent 43,000 16  264,000 11-3021 Computer and information systems managers................................... NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informalion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  36 Occupational Outlook Handbook  annual earnings in the industries employing the largest numbers of computer and information systems managers in May 2006 were as follows: Computer systems design and related services................ $109,130 Management of companies and enterprises........................ 105,980 Data processing, hosting, and related services................... 105,200 Insurance carriers.................................................................102,180 Colleges, universities, and professional schools...................83,280 The Robert Half Technology 2007 Salary Guide lists the following annual salary ranges for various computer and in­ formation systems manager positions: Chief Technology Of­ ficer (CTO), $101,000-$ 157,750; Chief Security Officer, $97,500-$141,000; Vice President of Information Technology, $107,500-$157,750; Information Technology Manager, Techni­ cal Services Manager, $62,500-$88,250. In addition, computer and information systems managers, especially those at higher levels, often receive employment-re­ lated benefits, such as expense accounts, stock option plans, and bonuses.  Related Occupations The work of computer and information systems managers is closely related to that of computer programmers, computer software engineers, computer systems analysts, computer sci­ entists and database administrators, and computer support spe­ cialists and systems administrators. 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 systems manager, contact: > Association of Information Technology Professionals, 401 North Michigan Ave., Suite 2400, Chicago, IL 60611. Internet: http://www.aitp.org  Construction Managers  Nature of the Work Construction managers plan, direct, and coordinate a wide vari­ ety of construction projects, including the building of all types of residential, commercial, and industrial structures, roads, bridges, wastewater treatment plants, and schools and hospitals. Con­ struction managers may oversee an entire project or just part of one. They schedule and coordinate all design and construction processes, including the selection, hiring, and oversight of spe­ cialty trade contractors, but they usually do not do any actual con­ struction of the structure. Construction managers are salaried or self-employed manag­ ers who oversee construction supervisors and workers. They are often called project managers, constructors, construction super­ intendents, project engineers, program managers, construction supervisors, or general contractors. 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 property owner, developer, or contracting firm overseeing the construction project. These managers coordinate and supervise the construction process from the conceptual development stage through final construction, making sure that the project gets done on time and within budget. They often work with owners, engineers, archi­ tects, and others who are involved in the construction process. Given the designs for buildings, roads, bridges, or other projects, construction managers oversee the planning, scheduling, and implementation of those designs. Large construction projects, such as an office building or in­ dustrial complex, are often too complicated for one person to manage. These projects are divided into many segments: site preparation, including land clearing and earth moving; sewage systems; landscaping and road construction; building construc­ tion, including excavation and laying of foundations and erection of the structural framework, floors, walls, and roofs; and building systems, including fire-protection, electrical, plumbing, air-con­ ditioning, and heating. Construction managers may be in charge of one or more of these activities. Construction managers determine the best way to get materials to the building site and the most cost-effective plan and schedule for completing the project. They divide all required construc-  (0*NET 11-9021.00)  j*mm  Significant Points •  •  Construction managers must be available—often 24 hours a day—to deal with delays, bad weather, or emergencies at the jobsite.  n ft*  ..WMfflT  Employers prefer jobseekers who combine construc­ tion industry work experience with a bachelor’s de­ gree in construction science, construction manage­ ment, or civil engineering.  •  Although certification is not required, there is a grow­ ing movement toward certification of construction  •  managers. Excellent job opportunities are expected.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  :_ _ _ _ _ _ _ _ _ _ _ _  Construction managers must be available—often 24 hours a day— to deal with delays, bad weather, or emergencies at the job site.  Management, Business, and Financial Occupations 37  tion 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 section on cost estimators else­ where in the Handbook.) They also oversee the selection of general contractors and trade contractors to complete specific pieces of the project— which could include everything from structural metalworking and plumbing to painting and carpet installation. Construction managers determine the labor requirements and, in some cases, supervise or monitor the hiring and dismissal of workers. They oversee the performance of all trade contractors and are respon­ sible 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; worker productivity and safety; and the quality of construction. They are responsible for obtaining all necessary permits and licenses and, depending upon the contractual arrangements, direct or monitor compliance with building and safety codes, other regulations, and requirements set by the project’s insurers. Work environment. Working out of a main office or out of a field office at the construction site, construction managers moni­ tor the overall construction project. Decisions regarding daily construction activities generally are made at the jobsite. Manag­ ers may travel extensively when the construction site is not close to their main office or when they are responsible for activities at two or more sites. Management of overseas construction projects usually entails temporary residence in another country. Often “on call” 24 hours a day, construction managers deal with delays, the effects of bad weather, or emergencies at the site. Most work more than a standard 40-hour week because construc­ tion may proceed around-the-clock. They may need to work this type of schedule for days or weeks to meet special project dead­ lines, especially if there are delays. Although the work usually is not considered inherently dan­ gerous, construction managers must be careful while performing onsite services.  Training, Other Qualifications, and Advancement Employers increasingly prefer to hire construction managers with a bachelor’s degree in construction science, construction management, building science, or civil engineering, although it is also possible for experienced construction workers to move up to become construction managers. In addition to having education and experience, construction mangers must understand contracts, plans, specifications, and regulations. Education and training. For construction manager jobs, em­ ployers increasingly prefer to hire individuals who have a bach­ elor’s degree in construction science, construction management, building science, or civil engineering, plus work experience. Prac­ tical construction experience is very important, whether gained through an internship, a cooperative education program, a job in the construction trades, or another job in the industry. Tradition­ ally, people advanced to construction management positions after having substantial experience as construction craftworkers—car­ penters, masons, plumbers, or electricians, for example—or after   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  having worked as construction supervisors or as owners of inde­ pendent specialty contracting firms. However, as construction pro­ cesses become increasingly complex, employers are placing more importance on specialized education after high school. About 105 colleges and universities offer bachelor’s degree pro­ grams in construction science, building science, and construction engineering. These programs include courses in project control and development, site planning, design, construction methods, construction materials, value analysis, cost estimating, schedul­ ing, contract administration, accounting, business and financial management, safety, building codes and standards, inspection procedures, engineering and architectural sciences, mathematics, statistics, and information technology. Graduates from 4-year degree programs usually are hired as assistants to project manag­ ers, field engineers, schedulers, or cost estimators. An increasing number of graduates in related fields—engineering or architec­ ture, for example—also enter construction management, often after acquiring substantial experience on construction projects. About 60 colleges and universities offer a master’s degree program in construction management or construction science. Master’s degree recipients, especially those with work experi­ ence in construction, typically become construction managers in very large construction or construction management companies. Often, individuals who hold a bachelor’s degree in an unrelat­ ed field seek a master’s degree in construction management or construction science 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. A number of 2-year colleges throughout the country offer construction management or construction technology programs. Many individuals also attend training and educational programs sponsored by industry associations, often in collaboration with postsecondary institutions. Other qualifications. Construction managers should be flex­ ible and work effectively in a fast-paced environment. They should be decisive and work well under pressure, particularly when faced with unexpected occurrences or delays. The ability to coordinate several major activities at once, while analyzing and resolving specific problems, is essential, as is an understand­ ing of engineering, architectural, and other constmction draw­ ings. Familiarity with computers and software programs for job costing, online collaboration, scheduling, and estimating also is important. Good oral and written communication 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, supervisors, and craftwork­ ers. The ability to converse fluently in Spanish is increasingly an asset because Spanish is the first language of many workers in the construction industry. Certification and advancement. There is a growing move­ ment toward certification of construction managers. Although certification is not required to work in the construction industry, it can be valuable because it provides evidence of competence and experience. Both the American Institute of Constructors and the Construction Management Association of America have es-  38 Occupational Outlook Handbook  Projections data from the National Employment Matrix Occupational Title Construction managers......................................... ................................  soc Code  Employment, 2006  11-9021  487,000  Projected employment, 2016 564,000  Change, 2006-16 Number Percent 77,000 16  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  tablished voluntary certification programs for construction man­ agers. Requirements combine written examinations with verifi­ cation of education and professional experience. The American Institute of Constructors awards the Associate Constructor (AC) and Certified Professional Constructor (CPC) designations to candidates who meet its requirements and pass the appropriate construction examinations. The Construction Management As­ sociation of America awards the Certified Construction Manager (CCM) designation to workers who have the required experience and who pass a technical examination. Applicants for this desig­ nation also must complete a self-study course that covers the pro­ fessional role of a construction manager, legal issues, allocation of risk, and other topics related to construction management. Advancement opportunities for construction managers vary depending upon an individual’s performance and the size and type of company for which they work. Within large firms, man­ agers may eventually become top-level managers or executives. Highly experienced individuals may become independent con­ sultants; some serve as expert witnesses in court or as arbitrators in disputes. Those with the required capital may establish their own construction management services, specialty contracting, or general contracting firm.  Employment Construction managers held 487,000 jobs in 2006. About 57 percent were self-employed, many as owners of general or spe­ cialty trade construction firms. Most salaried constmction man­ agers were employed in the constmction industry, 13 percent by specialty trade contractor businesses—for example, plumbing, heating, air-conditioning, and electrical contractors—9 percent in residential building constmction; and 9 percent in nonresidential building constmction. Others were employed by architec­ tural, engineering, and related services firms and by local gov­ ernments.  Job Outlook Faster than average employment growth is expected. Addition­ ally, excellent job opportunities will exist as the number of job openings exceeds the number of qualified applicants. Employment change. Employment of constmction managers is projected to increase by 16 percent during the 2006-16 decade, faster than the average for all occupations. More constmction managers will be needed as the level of constmction activity con­ tinues to grow. Population and business growth will result in more constmction of residential homes, office buildings, shop­ ping malls, hospitals, schools, restaurants, and other structures that require constmction managers. The increasing complexity of constmction projects will also boost demand for specialized management-level personnel with­ in the constmction industry. Sophisticated technology and the proliferation of laws setting standards for buildings and construc­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tion materials, worker safety, energy efficiency, environmental protection, and the potential for adverse litigation have further complicated the constmction process. Advances in building ma­ terials and constmction methods; the need to replace portions of the Nation’s infrastructure; and the growing number of multipur­ pose buildings and energy-efficient stmctures will further add to the demand for more constmction managers. Job prospects. Excellent employment opportunities for con­ stmction managers are expected through 2016 because the number of job openings will exceed the number of qualified individuals seeking to enter the occupation. This situation is expected to con­ tinue even as college constmction management programs expand to meet the current high demand for graduates. The constmction industry often does not attract sufficient numbers of qualified job seekers because working conditions are considered poor. In addition to job openings arising from employment growth, many additional openings should result annually from the need to replace workers who transfer to other occupations or leave the labor force for other reasons. A substantial number of seasoned managers are also expected to retire over the next decade, likely resulting in a large number of openings. Prospects for individuals seeking constmction manager jobs in constmction management, architectural and engineering servic­ es, and constmction contracting firms should be best for people who have a bachelor’s or higher degree in constmction science, constmction management, or civil engineering plus practical ex­ perience working in constmction. Employers will increasingly prefer applicants with college degrees, internships, and a strong background in building technology. Constmction managers will also have many opportunities to start their own firms. Employment of constmction managers, like that of many other constmction workers, is sensitive to the fluctuations of the econ­ omy. Workers in these trades may experience periods of unem­ ployment when the overall level of constmction falls. On the other hand, shortages of these workers may occur in some areas during peak periods of building activity.  Earnings Earnings of salaried constmction managers and self-employed independent constmction contractors vary depending upon the size and nature of the constmction project, its geographic loca­ tion, and economic conditions. In addition to typical benefits, many salaried constmction managers receive bonuses and use of company motor vehicles. Median annual earnings of wage and salary constmction man­ agers in May 2006 were $73,700. The middle 50 percent earned between $56,090 and $98,350. The lowest paid 10 percent earned less than $43,210, and the highest paid 10 percent earned more than $135,780. Median annual earnings in the industries employing the largest numbers of constmction managers were as follows:  Management, Business, and Financial Occupations 39  Building equipment contractors..........................................$75,200 Electrical contractors............................................................ 74,380 Nonresidential building construction....................................74,080 Foundation, structure, and building exterior contractors..... 71,640 Residential building construction..........................................69,400 The earnings of self-employed workers are not included in these numbers. According to a July 2007 salary survey by the National As­ sociation of Colleges and Employers, people with a bachelor’s degree in construction science/management received job offers averaging $46,930 a year.  Related Occupations Construction managers participate in the conceptual develop­ ment of a construction project and oversee its organization, scheduling, and implementation. Other workers who perform similar functions include architects, except landscape and na­ val; civil engineers; cost estimators; landscape architects; and engineering and natural sciences managers.  Sources of Additional Information For information about constructor certification, contact: > American Institute of Constructors, 717 Princess St., Alexandria, VA 22314. Internet: http://www.aicnet.org For information about construction management and con­ struction manager certification, contact: > Construction Management Association of America, 7918 Jones Branch Dr., Suite 540, McLean, VA 22102. Internet: http://www.cmaanet.org Information on accredited construction science and manage­ ment educational programs and accreditation requirements is available from: > American Council for Construction Education, 1717 North Loop 1604 E, Suite 320, San Antonio, TX 78232. Internet: http://www.acce-hq.org y National Center for Construction Education and Research, P.O. Box 141104, Gainesville, FL 32614. Internet: http://www.nccer.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 teaching or admissions counseling.  •  Strong interpersonal and communication skills are essential because much of an administrator’s job in­ volves working and collaborating with others.  •  Excellent opportunities are expected since a large proportion of education administrators is expected to retire over the next 10 years.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Successful operation of an educational institution requires competent administrators. Education administrators provide instructional leadership and manage the day-to-day activities in schools, preschools, day care centers, and colleges and univer­ sities. They also direct the educational programs of businesses, correctional institutions, museums, and job training and com­ munity service organizations. (College presidents and school superintendents are covered in the Handbook statement on gen­ eral managers and top executives.) Education administrators set educational standards and goals and establish the policies and procedures to achieve them. They also supervise managers, support staff, teachers, counselors, librarians, coaches, and other employees. They develop aca­ demic programs, monitor students’ educational progress, train and motivate teachers and other staff, manage career counseling and other student services, administer recordkeeping, prepare budgets, and perform many other duties. They also handle rela­ tions with parents, prospective and current students, employers, and the community. In an organization such as a small day care 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. Educational administrators who manage elementary, middle, and secondary schools are called principals. They set the ac­ ademic tone and actively work with teachers to develop and maintain high curriculum standards, develop mission state­ ments, and set performance goals and objectives. Principals confer with staff to advise, explain, or answer procedural ques­ tions. They hire, evaluate, and help improve the skills of teach­ ers and other staff. They visit classrooms, observe teaching methods, review instructional objectives, and examine learning materials. Principals must use clear, objective guidelines for teacher appraisals, because pay often is based on performance ratings. Principals also meet and interact with other administrators, students, parents, and representatives of community organiza­ tions. Decision-making authority has increasingly shifted from school district central offices to individual schools. School principals have greater flexibility in setting school policies and goals, but when making administrative decisions they must pay attention to the concerns of parents, teachers, and other mem­ bers of the community. Preparing budgets and reports on various subjects, including finances and attendance, and overseeing the requisition and al­ location of supplies also is an important responsibility of prin­ cipals. 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 develop partnerships with local businesses 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 culturally diverse student body. In some areas, growing enrollments also are a cause for concern because they lead to overcrowding at many schools. When addressing prob­  40 Occupational Outlook Handbook  lems of inadequate resources, administrators serve as advocates for the building of new schools or the repair of existing ones. During summer months, principals are responsible for planning for the upcoming year, overseeing summer school, participat­ ing in workshops for teachers and administrators, supervising building repairs and improvements, and working to make sure the school has adequate staff for the school year. Schools continue to be involved with students’ emotional welfare as well as their academic achievement. As a result, principals face responsibilities outside the academic realm. For example, many schools have growing numbers of students from dual-income and single-parent families or students who are themselves teenage parents. To support these students and their families, some 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. Assistant principals aid the principal in the overall admin­ istration of the school. Some assistant principals hold this position for several years, during which time they prepare for advancement to principal; others are assistant principals throughout their careers. 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 academic success of students by helping to develop new curriculums, evaluating teachers, and dealing with school-community relations—responsibilities pre­ viously assumed solely by the principal. The number of assis-  ...  Most education administrators begin their careers as teachers.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tant principals that a school employs may vary, depending on the number of students. Administrators in school district central offices oversee public schools under their jurisdiction. This group includes those who direct subject-area programs such as English, music, vocational education, special education, and mathematics. They supervise instructional coordinators and curriculum specialists, and work with them to evaluate curriculums and teaching techniques and improve them. (Instructional coordinators are covered else­ where in the Handbook.) Administrators also may oversee ca­ reer 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, athlet­ ics, curriculum and instruction, and professional development. With site-based management, administrators have transferred primary responsibility for many of these programs to the prin­ cipals, assistant principals, teachers, instructional coordinators, and other staff in the schools. In preschools and childcare centers, which are usually much smaller than other educational institutions, the director or su­ pervisor of the school or center often serves as the sole adminis­ trator. Their job is similar 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 re­ quired regulations and educational standards. In colleges and universities, provosts, also known as chief academic officers, assist presidents, make faculty appointments and tenure decisions, develop budgets, and establish academic policies and programs. With the assistance of academic deans and deans of faculty, they also direct and coordinate the ac­ tivities of deans of individual colleges and chairpersons of aca­ demic departments. Fundraising is the chief responsibility of the director of development and also is becoming an essential part of the job for all administrators. 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 assignments; propose budgets; recruit, interview, and hire applicants for teaching positions; evaluate faculty mem­ bers; encourage faculty development; serve on committees; and perform other administrative duties. In overseeing their depart­ ments, 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 af­ fairs or student life, deans of students, and directors of student services may direct and coordinate admissions, foreign student services, health and counseling services, career services, finan­ cial aid, and housing and residential life, as well as social, rec­ reational, and related programs. In small colleges, they may counsel students. In larger colleges and universities, separate administrators may handle each of these services. Registrars are custodians of students’ records. They register students, re­ cord grades, prepare student transcripts, evaluate academic re­ cords, assess and collect tuition and fees, plan and implement commencement, oversee the preparation of college catalogs and schedules of classes, and analyze enrollment and demo­  Management, Business, and Financial Occupations 41  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 of­ ficers at most institutions need computer skills because they use electronic student information systems. For example, for those whose institutions present college catalogs, schedules, and oth­ er information on the Internet, knowledge of online resources, imaging, and other computer skills is important. Athletic di­ rectors plan and direct intramural and intercollegiate athletic activities, seeing to publicity for athletic events, preparation of budgets, and supervision of coaches. Other increasingly im­ portant administrators direct public relations, distance learning, and technology. Work environment. Education administrators hold leader­ ship positions with significant responsibility. Most find work­ ing with students extremely rewarding, but as the responsibili­ ties 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 principals, whose varied duties include discipline, may find working with difficult students to be challenging. They are also increasingly being held accountable for ensuring that their schools meet re­ cently imposed State and Federal guidelines for student perfor­ mance and teacher qualifications. About 1 in 3 education administrators work more than 40 hours a week and often supervise school activities at night and on weekends. Most administrators work year round, although some work only during the academic year.  Training, Other Qualifications, and Advancement Most education administrators begin their careers as teachers and prepare for advancement into education administration by completing a master’s or doctoral degree. Because of the di­ versity of duties and levels of responsibility, educational back­ grounds and experience vary considerably among these work­ ers.  Education and training. Principals, assistant principals, central office administrators, academic deans, and preschool directors usually have held teaching positions before moving into administration. Some teachers move directly into princi­ pal positions; others first become assistant principals, or gain experience in other administrative jobs at either the school or district level in positions such as department head, curriculum specialist, or subject matter advisor. In some cases, administra­ tors move up from related staff jobs such as recruiter, school counselor, librarian, residence hall director, or financial aid or admissions counselor. In most public schools, principals, assistant principals, and school district administrators need a master’s degree in educa­ tion administration or educational leadership. Some principals and central office administrators have a doctorate or specialized degree in education administration. In private schools, some principals and assistant principals hold only a bachelor’s de­ gree, but the majority have a master’s or doctoral degree.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Educational requirements for administrators of preschools and childcare centers vary depending on the setting of the pro­ gram and the State of employment. Administrators who oversee preschool programs in public schools are often required to have at least a bachelor’s degree. Child care directors who super­ vise private programs are usually not required to have a degree; however, most States require a preschool education credential, which often includes some postsecondary coursework. College and university academic deans and chairpersons usu­ ally advance from professorships in their departments, for which they need a master’s or doctoral degree; further education is not typically necessary. 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, educa­ tional leadership, and college student affairs are offered in many colleges and universities. Education administration degree pro­ grams include courses in school leadership, school law, school finance and budgeting, curriculum development and evaluation, research design and data analysis, community relations, politics in education, and counseling. The National Council for Ac­ creditation of Teacher Education (NCATE) and the Educational Leadership Constituent Council (ELCC) accredit programs designed for elementary and secondary school administrators. Although completion of an accredited program is not required, it may assist in fulfilling licensure requirements. Licensure and certification. Most States require principals to be licensed as school administrators. License requirements vary by State, but nearly all States require either a master’s de­ gree or some other graduate-level training. Some States also re­ quire candidates for licensure to pass a test. On-the-job training, often with a mentor, is increasingly required or recommended 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. Principals in private schools are not subject to State licensure requirements. Nearly all States require child care and preschool center di­ rectors to be licensed. Licensing usually requires a number of years of experience or hours of coursework or both. Some­ times, it requires a college degree. Often, directors are also re­ quired to earn a general preschool education credential, such as the Child Development Associate credential (CDA) sponsored by the Council for Professional Recognition, or some other cre­ dential designed specifically for directors. One credential specifically for directors is the National Ad­ ministration Credential, offered by the National Child Care As­ sociation. The credential requires experience and training in child care center management. There are usually no licensing requirements for administra­ tors at postsecondary institutions.  42 Occupational Outlook Handbook  Other qualifications. To be considered for education ad­ ministrator positions, workers must first prove themselves in their current jobs. In evaluating candidates, supervisors look for leadership, determination, confidence, innovativeness, and motivation. The ability to make sound decisions and to orga­ nize 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 comput­ er technology is a necessity for principals, who are required to gather information and coordinate technical resources for their students, teachers, and classrooms. Advancement. Education administrators advance through promotion to higher level administrative positions or by trans­ ferring to comparable positions at larger schools or systems. They also may become superintendents of school systems or presidents of educational institutions.  Employment Education administrators held about 443,000 jobs in 2006. Of these, 56,000 were preschool or child care administrators, 226,000 were elementary or secondary school administrators, and 131,000 were postsecondary administrators. The great majority—over 80 percent—worked in public or private edu­ cational institutions. Most of the remainder worked in child daycare centers, religious organizations, job training centers, and businesses and other organizations that provided training for their employees.  Job Outlook Employment of education administrators is projected to grow about as fast as average, as education and training take on great­ er importance in everyone’s lives. Job opportunities for many of these positions should be excellent because a large propor­ tion of education administrators are expected to retire over the next 10 years. Employment change. Employment of education administra­ tors is expected to grow by 12 percent between 2006 and 2016, about as fast as the average for all occupations, primarily due to growth in enrollments of school-age children. Enrollment of students in elementary and secondary schools is expected to grow slowly over the next decade, which will limit the growth of principals and other administrators in these schools. However,  the number of administrative positions will continue to increase as more administrative responsibilities are placed on individual schools, particularly related to monitoring student achievement. Preschool and childcare center administrators are expected to experience substantial growth due to increasing enrollments in formal child care programs as fewer young children are cared for in private homes. Additionally, as more States implement or expand public preschool programs, more preschool directors will be needed. The number of students at the postsecondary level is pro­ jected to grow more rapidly than other student populations, creating significant demand for administrators at that level. A significant portion of the growth will occur in the private and for-profit segments of higher education. Many of these schools cater to working adults who might not ordinarily participate 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 distance learning. As the number of these schools continues to grow, more administrators will be needed to oversee them. Job prospects. Principals and assistant principals should have very favorable job prospects. A sharp increase in respon­ sibilities in recent years has made the job more stressful and has discouraged some teachers from taking positions in administra­ tion. 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. Many teachers feel that the increase in pay for becoming an administrator is not high enough to compensate for the greater responsibilities. Opportunities may vary by region of the country. Enroll­ ments are expected to increase the fastest in the West and South, where the population is growing faster, 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. Although competition among faculty for prestigious positions as academic deans and department heads is likely to remain keen, fewer applicants are expected for nonacademic admin­ istrative jobs, such as director of admissions or student affairs. Furthermore, many people are discouraged from seeking ad­ ministrator 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.  Projections data from the National Employment Matrix  soc  Occupational Title  Employment, 2006  Code Education administrators.................... Education administrators, preschool and child care center/ program.................................................. Education administrators, elementary and secondary school.. Education administrators, postsecondary............... Education administrators, all other..................  .  11-9030  443,000  .  11-9031 11-9032 11-9033 11-9039  56,000 226,000 131,000 30,000  Projected employment, 2016 496,000 69,000 243,000 150,000 33,000  Change, 2006-16 Number Percent 53,000 12 13,000 17,000 19,000 3,700  24  8  14 13 ----------- ______________________________________u  -----— NOTE: Data in this table are rounded. See the discussion—------------of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 43  Earnings  elementary, middle, and secondary; and teachers—postsecond­  In May 2006, elementary and secondary school administrators had median annual earnings of $77,740; postsecondary school administrators had median annual earnings of $73,990, while administrators in preschool and childcare centers earned a me­ dian of $37,740 per year. Salaries of education administrators depend on several factors, including the location and enroll­ ment 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 2006-07 school year were as fol­ lows:  ary.  Principals: Senior high school............................................................ $92,965 Jr. high/middle school........................................................ 87,866 Elementary school............................................................. 82,414 Assistant principals: Senior high school............................................................ $75,121 Jr. high/middle school........................................................ 73,020 Elementary school............................................................. 67,735 According to the College and University Professional Associ­ ation for Human Resources, median annual salaries for selected administrators in higher education in 2006-07 were as follows: Chief academic officer...................................................... $140,595 Academic deans: Business..........................................................................$135,080 Arts and sciences...............................................................121,942 Graduate programs............................................................120,120 Education..........................................................................117,450 Nursing.............................................................................. 112,497 Health-related professions............................................... 110,346 Continuing education......................................................... 99,595 Occupational studies/vocational education........................83,108 Other administrators: Chief development officer.............................................. $125,000 Dean of students..................................................................80,012 Director, student financial aid............................................68,000 Registrar..............................................................................66,008 Director, student activities................................................. 50,000 Benefits for education administrators are generally very good. Many get 4 or 5 weeks of vacation every year and have gener­ ous health and pension packages. Many colleges and universi­ ties offer free tuition to employees and their families.  Sources of Additional Information For information on principals, contact: > The National Association of Elementary School Principals, 1615 Duke St., Alexandria, VA 22314-3483. Internet: http://www.naesp.org > The National Association of Secondary School Principals, 1904 Association Drive, Reston, VA 20191-1537. Internet: http://www.nassp.org For a list of nationally recognized programs in elementary and secondary educational administration, contact: y The Educational Leadership Constituent Council, 1904 Association Drive, Reston, VA 20191. Internet: http ://www.npbea.org/ELCC/index.html For information on collegiate registrars and admissions of­ ficers, contact: y AmericanAssociationofCollegiateRegistrarsandAdmissions Officers, One Dupont Circle NW., Suite 520, Washington, DC 20036-1171. Internet: http://www.aacrao.org For information on professional development and graduate programs for college student affairs administrators, contact: y NASPA, Student Affairs Administrators in Higher Education, 1875 Connecticut Ave. NW., Suite 418, Washington, DC 20009. Internet: http://www.naspa.org For information on the National Administrator Credential for child care directors, contact: y National Child Care Association, 2025 M St NW., Suite 800, Washington, DC 20036. Internet: http://www.nccanet.org For information on the Child Development Associate Cre­ dential, contact: y Council for Professional Recognition, 2460 16th St., NW., Washington, DC 20009. Internet: http://www.cdacouncil.org  Engineering and Natural Sciences Managers (Q*NET 11-9041.00, 11-9121.00)  Significant Points •  Most engineering and natural sciences managers have formal education and work experience as engineers, scientists, or mathematicians.  •  Projected employment growth for engineering and natural sciences managers is closely related to growth in employment of the engineers and scientists they su­ pervise and the industries in which they work.  •  Opportunities will be best for workers with strong communication and business management skills.  Related Occupations Education administrators apply organizational and leadership skills to provide services to individuals. Workers in related oc­ cupations include administrative services managers; office and administrative support worker supervisors and managers; and human resource, training, and labor relations managers and specialists. Education administrators also work with students and have backgrounds similar to those of counselors; librarians; instructional coordinators; teachers—preschool, kindergarten,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Engineering and natural sciences managers plan, coordinate, and direct research, design, and production activities. They  44 Occupational Outlook Handbook  may supervise engineers, scientists, and technicians, along with support personnel. These managers use their knowledge of engineering and natural sciences to oversee a variety of ac­ tivities. They determine scientific and technical goals within broad outlines provided by top executives, who are discussed elsewhere in the Handbook. These goals may include improv­ ing manufacturing processes, advancing scientific research, or developing new products. Managers make detailed plans to ac­ complish these goals. For example, they may develop the over­ all concepts of a new product or identify technical problems preventing the completion of a project. To perform effectively, these managers also must apply knowledge of administrative procedures, such as budgeting, hiring, and supervision. They propose budgets for projects and programs and determine staff, training, and equipment needs. They hire and assign scientists, engineers, and support person­ nel to carry out specific parts of each project. They also super­ vise the work of these employees, check the technical accuracy of their work and the soundness of their methods, review their output, and establish administrative procedures and policies— including environmental standards, for example. In addition, these managers use communication skills exten­ sively. They spend a great deal of time coordinating the ac­ tivities of their unit with those of other units or organizations. They confer with higher levels of management; with financial, production, marketing, and other managers; and with contrac­ tors and equipment and materials suppliers. Engineering managers may supervise people who design and develop machinery, products, systems, and processes. They might also direct and coordinate production, operations, quality assurance, testing, or maintenance in industrial plants. Many are plant engineers, who direct and coordinate the design, in­ stallation, operation, and maintenance of equipment and ma­ chinery in industrial plants. Others manage research and de­ velopment teams that produce new products and processes or improve existing ones. Natural sciences managers oversee the work of life and phys­ ical scientists, including agricultural scientists, chemists, biolo­ gists, geologists, medical scientists, and physicists. These man­ agers direct research and development projects and coordinate  ti ii M !  Engineering and science managers must have well-developed business and communication skills.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  activities such as testing, quality control, and production. They may work on basic research projects or on commercial activi­ ties. Science managers sometimes conduct their own research in addition to managing the work of others. Work environment. Engineering and natural sciences man­ agers spend most of their time in an office. Some managers, however, also may work in laboratories, where they may be ex­ posed to the same conditions as research scientists, or in indus­ trial 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 pressure to meet technical or scientific goals on a short deadline or within a tight budget.  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. There­ fore, most managers have formal education and work experi­ ence as an engineer, scientist, or mathematician. Education and training. These managers usually have edu­ cation similar to that of the workers they supervise. Most en­ gineering managers, for example, begin their careers as engi­ neers, after completing a bachelor’s degree in the field. Many engineers gain business management skills by completing a master’s degree in engineering management (MEM) or business administration (MBA). Employers often pay for such training. In large firms, some courses required in these degree programs may be offered onsite. Typically, engineers who prefer to man­ age in technical areas pursue an MEM, and those interested in less technical management earn an MBA. Similarly, many science managers begin their careers as sci­ entists, such as chemists, biologists, geologists, or mathema­ ticians. Most scientists and mathematicians engaged in basic research have a Ph.D. degree; some who work in applied re­ search and other activities may have a bachelor’s or master’s degree. Graduate programs allow scientists to augment their undergraduate training with instruction in other fields, such as management or computer technology. Natural science manag­ ers interested in more technical management may earn tradi­ tional master’s or Ph.D. degrees in natural sciences or master’s degrees in science that incorporate business management skills. Those interested in more general management may pursue an MBA. Given the rapid pace of scientific developments, science managers must continuously upgrade their knowledge. Other qualifications. Engineering and natural sciences managers must be specialists in the work they supervise. To advance to these positions, engineers and scientists generally must gain experience and assume management responsibility. To fill management positions, employers seek engineers and scientists who possess administrative and communication skills in addition to technical knowledge in their specialty. In fact, because engineering and natural sciences managers must effec­ tively lead groups and coordinate projects, they usually need excellent communication and administrative skills.  Management, Business, and Financial Occupations 45  Advancement. Engineering and natural sciences manag­ ers may advance to progressively higher leadership positions within their disciplines. Some may become managers in non­ technical areas such as marketing, human resources, or sales. In high technology firms, managers in nontechnical areas often must possess the same specialized knowledge as do managers in technical areas. For example, employers in an engineering firm may prefer to hire experienced engineers as sales work­ ers 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.  Employment Engineering and natural sciences managers held about 228,000 jobs in 2006. Manufacturing industries employed 38 percent of engineering and natural sciences managers. Manufacturing industries with the largest employment are those which produce computer and electronic equipment and those which produce transportation equipment, including aerospace products and parts. Another 31 percent worked in professional, scientific, and technical services industries, primarily for firms provid­ ing architectural, engineering, and related services and firms providing scientific research and development services. Other large employers include Federal, State, and local government agencies.  Job Outlook Employment of engineering and natural sciences managers is projected to grow about as fast as the average for all occupa­ tions, similar to the growth rate of engineers and life and physi­ cal scientists. Opportunities will be best for workers with strong communication and business management skills. Employment change. Employment of engineering and natu­ ral sciences managers is expected to grow 8 percent over the 2006-16 decade, about as fast as the average for all occupations. Projected employment growth for engineering and natural sci­ ences managers should be in line with growth of the engineers and scientists they supervise and the industries in which they work. Because many employers find it more efficient to con­ tract engineering and science work to specialty firms, there should be strong demand for engineering managers in the sci­ entific research and development services industry and for both engineering and natural science managers in the architectural, engineering, and related services industry. Job prospects. Opportunities for engineering managers should be better in rapidly growing areas of engineering—such as environmental and biomedical engineering—than in more slowly growing areas—such as electronics and materials engi­  neering. Opportunities for natural sciences managers should likewise be best in the rapidly growing medical and environ­ mental sciences. (See the statements on engineers and life and physical scientists elsewhere in the Handbook.) Engineers and scientists with advanced technical knowledge and strong com­ munication skills will be in the best position to become manag­ ers. Because engineering and natural sciences managers are involved in the financial, production, and marketing activities of their firm, business management skills are also advantageous for those seeking management positions. In addition to those openings resulting from employment growth, job openings will result from the need to replace managers who retire or move into other occupations.  Earnings Earnings for engineering and natural sciences managers vary by specialty and by level of responsibility. Median an­ nual earnings of wage and salary engineering managers were $105,430 in May 2006. The middle 50 percent earned be­ tween $84,090 and $130,170. Median annual earnings in the industries employing the largest numbers of engineering man­ agers were: Semiconductor and other electronic component manufacturing.............................................$120,740 Federal executive branch.....................................................116,140 Navigational, measuring, electromedical, and control instruments manufacturing...........................115,150 Aerospace product and parts manufacturing.......................111,020 Engineering services........................................................... 103,570 Median annual earnings of wage and salary natural sciences managers were $100,080 in May 2006. The middle 50 percent earned between $77,320 and $130,900. Median annual earn­ ings in the industries employing the largest numbers of natural sciences managers were: Research and development in the physical, engineering, and life sciences.........................................$120,780 Pharmaceutical and medicine manufacturing.....................111,070 Federal executive branch.......................................................96,100 Architectural, engineering, and related services...................88,990 State government..................................................................65,570 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.  Projections data from the National Employment Matrix Occupational Title  Engineering and natural sciences managers.................................. Engineering managers............................................................... Natural sciences managers........................................................  soc  Employment,  Projected employment,  Change,  2006-16 Number Percent 2016 — 228,000 246,000 18,000 8 11-9041 187,000 201,000 14,000 7 11-912141,00045,0004,60011 Code  2006  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  46 Occupational Outlook Handbook  Related Occupations The work of engineering and natural sciences managers is closely related to that of engineers; mathematicians; and physi­ cal and life scientists, including agricultural and food scientists, atmospheric scientists, biological scientists, conservation sci­ entists and foresters, chemists and materials scientists, environ­ mental scientists and hydrologists, geoscientists, medical sci­ entists, 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 sciences manager, contact the sources of additional informa­ tion for engineers, life scientists, and physical scientists that are listed at the end of statements on these occupations elsewhere in the Handbook. Additional information on science and engineering master’s degrees is available from: y Commission on Professionals in Science and Technology, 1200 New York Ave. NW., Suite 113, Washington, DC 20005. Internet: http://www.sciencemasters.org To learn more about managing scientists and engineers in re­ search and development, see the Occupational Outlook Quar­ terly article, “Careers for scientists—and others—in scientific research and development,” in print at many libraries and career centers, and online at: http://www.bls.gov/opub/ooq/2005/summer/art04.htm  day activities of one or more farms, ranches, nurseries, timber tracts, greenhouses, or other agricultural establishments for farmers, absentee landowners, or corporations. Their duties and responsibilities vary widely but focus on the business as­ pects of running a farm. On small farms, they may oversee the entire operation; on larger farms, they may oversee a single activity, such as marketing. Farmers, ranchers, and agricultural managers make many managerial decisions. Farm output and income are strongly influenced by the weather, disease, fluctuations in prices of domestic and foreign farm products, and Federal farm pro­ grams. In crop-production operations, farmers and managers usually determine the best time to plant seed, apply fertilizer and chemicals, and harvest and market the crops. Many care­ fully plan the combination of crops they grow, so that if the price of one crop drops, they will have sufficient income from another crop to make up the loss. Farmers, ranchers, and man­ agers monitor the constantly changing prices for their prod­ ucts. They use different strategies to protect themselves from unpredictable changes in the markets for agricultural prod­ ucts. If they plan ahead, they may be able to store their crops or keep their livestock to take advantage of higher prices later in the year. Those who participate in the risky futures mar­ ket buy contracts on future production of agricultural goods. These contracts can minimize the risk of sudden price changes by guaranteeing a certain price for farmers’ and ranchers’ ag­ ricultural goods when they are ready to sell.  Farmers, Ranchers, and Agricultural Managers (0*NET 11-9011.00 11-9011.01, 11-9011.02, 11-9011.03, 11-9012.00)  Significant Points •  Modern farming requires knowledge of new develop­ ments in agriculture, as well as work experience often gained through growing up on a farm or through post­ secondary education.  •  Overall employment is projected to decline because of increasing productivity and consolidation of farms.  •  Horticulture and organic farming will provide better  *-  ■  employment opportunities. •  Small-scale farming is a major growth area and offers the best opportunity for entering the occupation.  Nature of the Work American farmers, ranchers, and agricultural managers direct the activities of one of the world’s largest and most productive agricultural sectors. They produce enough food and fiber to meet the needs of the United States and for export. Farmers and ranchers own and operate mainly family-owned farms. They also may lease land from a landowner and operate it as a working farm. Agricultural managers manage the day-to­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  .  .  -  '• -‘..A-V.’ Farmers need in-depth knowledge of many kinds of crops.  ■  While most farm output is sold directly to food-processing companies, some farmers—particularly operators of smaller farms—may choose to sell their goods directly to consumers through farmers’ markets. Some use cooperatives to reduce their financial risk and to gain a larger share of the prices con­ sumers pay. For example, in community-supported agricul­ ture, cooperatives sell shares of a harvest to consumers prior to the planting season, thus freeing the farmer from having to bear all the financial risks and ensuring the farmer a mar­ ket 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 equip­ ment, livestock, and seed. 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 com­ puter databases and spreadsheets to manage breeding, dairy, and other farm operations. The type of farm farmers, ranchers, and agricultural manag­ ers operate determines their specific tasks. On crop farms— farms growing grain, cotton, other fibers, fruit, and vegeta­ bles—farmers are responsible for preparing, tilling, planting, fertilizing, cultivating, spraying, and harvesting. After the harvest, they make sure that the crops are properly packaged, stored, and marketed. Livestock, dairy, and poultry farmers and ranchers feed and care for animals and keep barns, pens, coops, and other farm buildings clean and in good condition. They also plan and oversee breeding and marketing activities. Both farmers and ranchers operate machinery and maintain equipment and facilities, and both track technological im­ provements in animal breeding and seeds, and choose new or existing products. The size of the farm or ranch often determines which of these tasks farmers and ranchers handle themselves. Opera­ tors of small farms usually perform all tasks, physical and administrative. They keep records for management and tax purposes, service machinery, maintain buildings, and grow vegetables and raise animals. Operators of large farms, by contrast, have employees who help with the physical work that small-farm operators do themselves. Although employment on most farms is limited to the farmer and 1 or 2 family work­ ers 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 repre­ sentatives, bookkeepers, and computer specialists. Agricultural managers usually do not plant, harvest, or perform other production activities; instead, they hire and su­ pervise farm and livestock workers, who perform most daily production tasks. Managers may establish output goals; de­ termine financial constraints; monitor production and market­ ing; hire, assign, and supervise workers; determine crop trans­ portation and storage requirements; and oversee maintenance of the property and equipment. Two types of farmers that are growing in importance are horticultural specialty farmers and aquaculture farmers. Hor­ ticultural specialty farmers oversee the production of fruits, vegetables, flowers, and ornamental plants used in landscap­ ing, including turf. They also grow nuts, berries, and grapes  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 47  for wine. Aquaculture farmers raise fish and shellfish in ma­ rine, 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. Work environment. The work of full-time farmers, ranch­ ers, and agricultural managers is often strenuous; work hours are frequently long; and these workers rarely have days off during the planting, growing, and harvesting seasons. Nev­ ertheless, for those who enter farming or ranching, the hard work is counterbalanced by their enjoyment of living in a rural area, working outdoors, being self-employed, and making a living off the land. Farmers and farm managers on crop farms usually work from sunrise to sunset during the planting and harvesting sea­ sons. The rest of the year, they plan next season’s crops, mar­ ket their output, and repair machinery. On livestock-producing farms and ranches, work goes on throughout 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 and farm managers rarely get the chance to get away, unless they hire an assistant or arrange for a temporary substitute. Farmers and farm managers who grow produce and perish­ ables have different demands on their time depending on the crop grown and the season. They may work very long hours during planting and harvesting season, but shorter hours at other times. Some farmers maintain cover crops during the cold months, which keep them busy beyond the typical grow­ ing season. On very large farms, farmers and farm managers spend substantial time meeting farm supervisors in charge of vari­ ous activities. Professional farm managers overseeing several farms may divide their time between traveling to meet farmers or landowners and planning the farm operations in their offic­ es. As farming practices and agricultural technology become more sophisticated, farmers and farm managers are spending more time in offices and at computers, where they electroni­ cally manage many aspects of their businesses. Some farmers also attend conferences exchanging information, particularly during the winter months. Farm work can be hazardous. Tractors and other farm ma­ chinery can cause serious injury, and workers must be con­ stantly alert on the job. The proper operation of equipment and handling of chemicals are necessary to avoid accidents, safeguard health, and protect the environment.  Training, Other Qualifications, and Advancement Experience gained from growing up on or working on a fam­ ily farm is the most common way farmers learn their trade. Flowever, modern farming requires increasingly complex sci­ entific, business, and financial decisions, so postsecondary ed­ ucation in agriculture is important even for people who were raised on farms. Education and training. Most farmers receive their train­ ing on the job, often by being raised on a farm. However, the  48 Occupational Outlook Handbook  completion of a 2-year associate degree or a 4-year bachelor’s degree at a college of agriculture is becoming increasingly im­ portant for farm managers and for farmers and ranchers who expect to make a living at farming. A degree in farm man­ agement or in business with a concentration in agriculture is important. Students should select the college most appropriate to their interests and location. All State university systems have at least one land-grant college or university with a school of agriculture. Common programs of study include agronomy, dairy science, agricultural economics and business, horticul­ ture, crop and fruit science, and animal science. For students interested in aquaculture, formal programs are available and include coursework in fisheries biology, fish culture, hatchery management and maintenance, and hydrology. Agricultural colleges teach technical knowledge of crops, growing conditions, and plant diseases. They also teach pro­ spective ranchers and dairy farmers the basics of veterinary science and animal husbandry. Students also study how the environment is affected by farm operations, for example, how the various pesticides affect local animals. New farmers, ranchers, and agricultural managers often spend time working under an experienced farmer to learn how to apply the skills learned through academic training. Those without academic training often take many years to learn how weather, fertilizers, seed, feeding or breeding affect the growth of crops or the raising of animals in addition to other aspects of farming. A small number of farms offer formal ap­ prenticeships to help young people learn the practical skills of farming and ranching. Other qualifications. Farmers, ranchers, and agricultural managers need managerial skills to organize and operate a business. A basic knowledge of accounting and bookkeep­ ing is essential in keeping financial records, and knowledge of credit sources is vital for buying seed, fertilizer, and other needed inputs. Workers must also be familiar with complex safety regulations and requirements of governmental agricul­ tural support programs. Computer skills are becoming increas­ ingly important, especially on large farms, where computers are widely used for recordkeeping and business analysis. In addition, skills in personnel management, communication, and conflict resolution are important in the operation of a farm or ranch business. Mechanical aptitude and the ability to work with tools of all kinds also are valuable skills for a small-farm operator, who often maintains and repairs machinery or farm structures. Certification and advancement. Because of rapid changes in the industry, farmers, ranchers, and agricultural managers need to stay informed about continuing advances in agricul­  tural methods, both in the United States and abroad. They need to monitor changes in governmental regulations that may affect production methods or markets for particular crops. Besides print journals that inform the agricultural community, farmers and managers use the Internet for quick access to the latest developments in areas such as agricultural marketing, legal arrangements, and growing crops, vegetables, and live­ stock. Agricultural managers can enhance their professional sta­ tus through voluntary certification as an Accredited Farm Manager (AFM) by the American Society of Farm Managers and Rural Appraisers. Accreditation requires several years of farm management experience, the appropriate academic back­ ground—a bachelor’s degree or, preferably, a master’s degree in a field of agricultural science—and the passing of courses and examinations related to the business, financial, and legal aspects of farm and ranch management.  Employment Farmers, ranchers, and agricultural managers held nearly 1.3 million jobs in 2006. About 80 percent are self-employed farmers and ranchers, and the remainder is agricultural man­ agers. Most farmers, ranchers, and agricultural managers oversee crop-production activities, while others manage live­ stock and dairy production. Most farmers and ranchers oper­ ate small farms on a part-time basis. The soil, topography of the land, and climate often deter­ mine the type of farming and ranching done in a particular area. California, Texas, Iowa, Nebraska, and Kansas are the leading agricultural States in terms of agricultural output mea­ sured in dollars. Texas, Missouri, Iowa, Kentucky, and Ten­ nessee are the leading agricultural States in terms of numbers of farms.  Job Outlook The long-term trend toward the consolidation of farms into fewer and larger ones is expected to continue over the 2006­ 16 decade and to result in a continued, moderate decline in employment of self-employed farmers and ranchers and little or no change in employment of salaried agricultural manag­ ers. Nevertheless, a number of jobs will be available due to the need to replace the large number of farmers expected to retire or leave the profession over the next decade. Employment change. Employment of self-employed farm­ ers is expected to decline moderately by 8 percent over the 2006-2016 decade. The continuing ability of the agriculture sector to produce more with fewer workers will cause some farmers to go out of business as market pressures leave little room for the marginally successful farmer. As land, machin-  Projections data from the National Employment Matrix Projected Change, employment, 2006-16 Code 2016 Number Percent Agricultural managers.............................................................. 11-9010 1.317.000 1,230,000 -87,000 -7 Farm, ranch, and other agricultural managers................... ............ 11-9011 258,000 261,000 2,900 1 Farmers and ranchers........................................................... ............ 11-9012 1.058.000 969,000 -90,000 -8 NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational InformaOccupational Title  lion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  soc  Employment, 2006  Management, Business, and Financial Occupations 49  ery, seed, and chemicals become more expensive, only wellcapitalized farmers and corporations will be able to buy many of the farms that become available. These larger, more pro­ ductive farms are better able to withstand the adverse effects of climate and price fluctuations on farm output and income. Larger farms also have advantages in obtaining government subsidies and payments because these payments are usually based on acreage owned and per-unit production. In contrast, agricultural managers are projected to gain jobs, growing by 1 percent—effectively little or no change in the occupation. Owners of large tracts of land, who often do not live on the property they own, increasingly will seek the ex­ pertise of agricultural managers to run their farms and ranches in a business-like manner. Despite the expected continued consolidation of farmland and the projected decline in overall employment of this oc­ cupation, an increasing number of small-scale farmers have developed successful market niches that involve personalized, direct contact with their customers. Many are finding oppor­ tunities in organic food production, which is the fastest grow­ ing segment in agriculture. Others use farmers’ markets that cater directly to urban and suburban consumers, allowing the farmers to capture a greater share of consumers’ food dollars. Some small-scale farmers belong to collectively owned mar­ keting cooperatives that process and sell their product. Other farmers participate in community-supported agriculture coop­ eratives that allow consumers to directly buy a share of the farmer’s harvest. Aquaculture may continue to provide some new employment opportunities over the 2006-16 decade. Concerns about over­ fishing and the depletion of the stock of some wild fish species will likely lead to more restrictions on deep-sea fishing, 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 has increased even in landlocked States, as farmers attempt to diversify. Job prospects. Job prospects are expected to be favorable for those who want to go into farming. With fewer people wanting to become farmers and a large number of farmers ex­ pected to retire or give up their farms in the next decade, there will be some opportunities to own or lease a farm. The market for agricultural products is projected to be good for most prod­ ucts over the next decade, and thus many farmers who retire will need to be replaced. Farmers who produce corn used to produce ethanol will be in particular demand as ethanol plays a greater role in energy production as fuel for automobiles. Farmers who grow crops used in landscaping, such as trees, shrubs, turf, and other ornamentals, also will have better job prospects, as people put more money into landscaping their homes and businesses.  Earnings Incomes of farmers and ranchers vary greatly from year to year, because prices of farm products fluctuate with weather conditions and the other factors that influence the quantity and quality of farm output and the demand for those products. A farm that shows a large profit one year may show a loss the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  following year. According to the U.S. Department of Agri­ culture, the average net cash farm business income for farm operator households in 2005 was $15,603. This figure, how­ ever, does not reflect that farmers often receive government subsidies or other payments that supplement their incomes and reduce some of the risk of farming. Additionally, most 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 weekly earn­ ings of $1,001 in May 2006. The middle half earned between $766 and $1,382. The highest paid 10 percent earned more than $1,924, and the lowest paid 10 percent earned less than $572. Self-employed farmers must procure their own health and life insurance. As members of farm organizations, they may receive group discounts on health and life insurance premi­ ums.  Related Occupations Farmers, ranchers, and agricultural managers strive to improve the quality of agricultural products and the efficiency of farms. Others whose work relates to agriculture include agricultural engineers, agricultural and food scientists, agricultural work­ ers, and purchasing agents and buyers of farm products.  Sources of Additional Information For general information about farming and agricultural occu­ pations, contact either of the following organizations: > Center for Rural Affairs, P.O. Box 406, Walthill, NE 68067. Internet: http://www.cfra.org V National FFA Organization, The National FFA Center, Attention Career Information Requests, RO. Box 68690, Indianapolis, IN 46268. Internet: http://www.ffa.org For information about certification as an accredited farm manager, contact: y 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 farm­ ers get started, contact: y Small Farm Program, U.S. Department of Agriculture, Cooperative State, Research, Education, and Extension Service, Stop 2220, Washington, DC 20250. Internet: http://www.csrees.usda.gov/smallfarms.cfm For information about organic farming, horticulture, and in­ ternships, contact: y Alternative Farming System Information Center, NAL, 10301 Baltimore Ave., Room 132, Beltsville, MD 20705. Internet: http://www.nal.usda.gov y ATTRA, National Sustainable Agriculture Information Service, P.O. Box 3657, Fayetteville, AR 72702. Internet: http ://www.attra.ncat.org To learn more about how technological and other changes are affecting agricultural careers, see the Occupational Out­ look Quarterly article “Farming in the 21st century: A modern business in the modern world,” in print at many libraries and career centers and online at: http://www.bls.gov/opub/ooq/2005/spring/art02.pdf  50 Occupational Outlook Handbook  Financial Managers (0*NET 11-3031.00, 11-3031.01, 11-3031.02)  Significant Points •  Jobseekers are likely to face competition.  •  About 3 out of 10 work in finance and insurance in­ dustries.  •  A bachelor’s degree in finance, accounting, or a re­ lated field is the minimum academic preparation, but employers increasingly seek graduates with a mas­ ter’s degree in business administration, economics, finance, or risk management.  •  Experience may be more important than formal edu­ cation for some financial manager positions—most notably, branch managers in banks.  Nature of the Work Almost every firm, government agency, and other type of orga­ nization has one or more financial managers. Financial manag­ ers oversee the preparation of financial reports, direct invest­ ment activities, and implement cash management strategies. Managers also develop strategies and implement the long-term goals of their organization. The duties of financial managers vary with their specific ti­ tles, which include controller, treasurer or finance officer, credit manager, cash manager, risk and insurance manager, and man­ ager of international banking. Controllers direct the preparation of financial reports, such as income statements, balance sheets, and analyses of future earnings or expenses, that summarize and forecast the organization’s financial position. Controllers also are in charge of preparing special reports required by regu­ latory authorities. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organization’s budgets to meet its financial goals. They oversee the investment of funds, manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm’s expansion, and deal with mergers  . 1§L JSS. '  \  V'-  *!  Financial managers develop strategies for achieving the long­ term goals of their organization.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and acquisitions. Credit managers oversee the firm’s issuance of credit, establishing credit-rating criteria, determining credit ceilings, and monitoring the collections of past-due accounts. Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash require­ ments 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 fi­ nancial transactions and business operations. They also manage the organization’s insurance budget. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations. (Chief financial officers and other executives are included with top executives elsewhere in the Handbook.) Financial institutions—such as commercial banks, savings and loan associations, credit unions, and mortgage and finance companies—employ additional financial managers who over­ see various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or elec­ tronic financial services. These managers may solicit business, authorize loans, and direct the investment of funds, always ad­ hering to Federal and State laws and regulations. Branch managers of financial institutions administer and manage all of the functions of a branch office. Job duties may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. Branch man­ gers also are becoming more oriented toward sales and market­ ing. As a result, it is important that they have substantial knowl­ edge about all types of products that the bank sells. Financial managers who work for financial institutions must keep abreast of the rapidly growing array of financial services and products. In addition to the preceding duties, all financial managers perform tasks unique to their organization or industry. For ex­ ample, government financial managers must be experts on the government appropriations and budgeting processes, whereas health care financial managers must be knowledgeable about issues surrounding health care 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 mergers and consolidations and in global expansion and related financing. These areas require extensive, specialized knowl­ edge to reduce risks and maximize profit. Financial manag­ ers increasingly are hired on a temporary basis to advise senior managers on these and other matters. In fact, some small firms contract out all their accounting and financial functions to com­ panies that provide such services. The role of the financial manager, particularly in business, is changing in response to technological advances that have signif­ icantly reduced the amount of time it takes to produce financial reports. 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 management. Financial managers need to keep abreast  Management, Business, and Financial Occupations 51  of the latest computer technology to increase the efficiency of their firm’s financial operations. Work environment. Working in comfortable offices, often close to top managers and to departments that develop the fi­ nancial data those managers need, financial managers typically have direct access to state-of-the-art computer systems and in­ formation services. They commonly work long hours, often up to 50 or 60 per week. Financial managers generally are required to attend meetings of financial and economic associations and may travel to visit subsidiary firms or to meet customers.  Training, Other Qualifications, and Advancement Most financial managers need a bachelor’s degree, and many have a master’s degree or professional certification. Bank man­ agers often have experience as loan officers. Financial manag­ ers also need strong interpersonal and business skills. Education and training. A bachelor’s degree in finance, accounting, economics, or business administration is the mini­ mum 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 analyti­ cal skills and teach the latest financial analysis methods and technology. Experience may be more important than formal education for some financial manager positions—most notably, branch man­ agers in banks. Banks typically fill branch manager positions by promoting 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. The American Institute of Banking, which is affiliated with the American Bankers Association, sponsors educational and training programs for bank officers at banking schools and educational conferences. Other qualifications. Candidates for financial management positions need many different skills. Interpersonal skills are im­ portant because these jobs involve managing people and work­ ing as part of a team to solve problems. Financial managers must have excellent communication skills to explain complex financial data. Because financial managers work extensively with various departments in their firm, a broad understanding of 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. Financial managers must have knowledge of international finance be­ cause financial operations are increasingly being affected by the global economy. Proficiency in a foreign language also may be important. In addition, a good knowledge of compliance procedures is essential because of the many recent regulatory changes.  Certification and advancement. Financial managers may broaden their skills and exhibit their competency by attaining professional certification. Many associations offer professional certification programs. For example, the CFA Institute confers the Chartered Financial Analyst designation on investment pro­ fessionals who have a bachelor’s degree, pass three sequential examinations, and meet work experience requirements. The Association for Financial Professionals confers the Certified Treasury Professional credentials to those who pass a comput­ er-based exam and have a minimum of 2 years of relevant expe­ rience. Continuing education is required to maintain these cre­ dentials. Also, financial managers who specialize in accounting sometimes earn the Certified Public Accountant (CPA) or the Certified Management Accountant (CMA) designation. The CM A is offered by the Institute of Management Accountants to its members who have a bachelor’s degree and at least 2 years of work experience and who pass the institute’s four-part ex­ amination and fulfill continuing education requirements. (See accountants and auditors elsewhere in the Handbook for addi­ tional information on CPA and CMA designations.) Continuing education is vital to financial managers, who must cope with the growing complexity of global trade, changes in Federal and State laws and regulations, and the proliferation of new and complex financial instruments. Firms often provide opportunities for workers to broaden their knowledge and skills by encouraging them to take graduate courses at colleges and universities or attend conferences related to their specialty. Fi­ nancial management, banking, and credit union associations, often in cooperation with colleges and universities, sponsor numerous national and local training programs. Trainees pre­ pare extensively at home and then attend sessions on subjects such as accounting management, budget management, corpo­ rate cash management, financial analysis, international bank­ ing, and information systems. Many firms pay all or part of the costs for employees who successfully complete the courses. Although experience, ability, and leadership are emphasized for promotion, advancement may be accelerated by this type of special study. Because financial management is so important to efficient business operations, well-trained, experienced financial man­ agers who display a strong grasp of the operations of various departments within their organization are prime candidates for promotion to top management positions. Some financial man­ agers transfer to closely related positions in other industries. Those with extensive experience and access to sufficient capital may start their own consulting firms.  Employment Financial managers held about 506,000 jobs in 2006. Although they can be found in every industry, approximately 3 out of 10 were employed by finance and insurance establishments, such  Projections data from the National Employment Matrix Occupational Title Financial managers.................................................. ..................  soc  Code  11-3031  Employment,  2006 506,000  Projected employment,  2016 570,000  Change,  2006-16  Number  Percent  64,000  13  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Information Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  52 Occupational Outlook Handbook  as banks, savings institutions, finance companies, credit unions, insurance carriers, and securities dealers. About 8 percent worked for Federal, State, or local government.  Job Outlook Employment growth for financial managers is expected is to be about as fast as the average for all occupations. However, applicants will likely face strong competition for jobs. Those with a masters’ degree and a certification will have the best op­ portunities. Employment change. Employment of financial manag­ ers over the 2006-16 decade is expected to grow by 13 per­ cent, which is about as fast as the average for all occupations. Regulatory reforms and the expansion and globalization of the economy will increase the need for financial expertise and drive job growth. As the economy expands, both the growth of estab­ lished companies and the creation of new businesses will spur demand for financial managers. Employment of bank branch managers is expected to increase because banks are refocusing on the importance of their existing branches and are creating new branches to service a growing population. However, merg­ ers, acquisitions, and corporate downsizing are likely to restrict the employment growth of financial managers to some extent. The long-run prospects for financial managers in the secu­ rities and commodities industry should be favorable, because more people will be needed to handle increasingly complex financial transactions and manage a growing amount of invest­ ments. Financial managers also will be needed to handle merg­ ers and acquisitions, raise capital, and assess global financial transactions. Risk managers, who assess risks for insurance and investment purposes, also will be in demand. Some companies may hire financial managers on a tempo­ rary basis, to see the organization through a short-term crisis or to offer 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 contracts. Job prospects. As with other managerial occupations, job­ seekers are likely to face competition because the number of job openings is expected to be less than the number of applicants. Candidates with expertise in accounting and finance—particu­ larly those with a master’s degree and or certification—should enjoy the best job prospects. Strong computer skills and knowl­ edge of international finance are important; as are excellent communication skills because financial management involves working on strategic planning teams. As banks expand the range of products and services they of­ fer to include insurance and investment products, branch man­ agers with knowledge in these areas will be needed. As a result, candidates who are licensed to sell insurance or securities will have the most favorable prospects. (See the Handbook state­ ments on insurance sales agents; and securities, commodities, and financial services sales agents.)  Earnings Median annual earnings of wage and salary financial manag­ ers were $90,970 in May 2006. The middle 50 percent earned between $66,690 and $125,180. The lowest 10 percent earned less than $50,290 while the top 10 percent earned more than   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  $145,600. Median annual earnings in the industries employing the largest numbers of financial managers were: Securities and commodity contracts intermediation........ $131,730 Management of companies and enterprises........................ 105,410 Nondepository credit intermediation.................................... 86,340 Local government................................................................. 72,790 Depository credit intermediation.......................................... 72,580 According to a survey by Robert Half International, a staffing services firm specializing in accounting and finance profession­ als, directors of finance earned between $79,000 and $184,000 in 2007, and corporate controllers earned between $61,250 and $149,250. Large organizations often pay more than small ones, and sal­ ary levels also can depend on the type of industry and location. Many financial managers in both public and private industry receive additional compensation in the form of bonuses, which, like salaries, vary substantially by size of firm. Deferred com­ pensation in the form of stock options is becoming more com­ mon, 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; financial analysts and personal financial ad­ visors; insurance sales agents; insurance underwriters; loan officers; securities, commodities, and financial services sales agents; and real estate brokers and sales agents.  Sources of Additional Information For information about careers and certification in financial management, contact: y Financial Management Association International, College of Business Administration, University of South Florida, Tampa, FL 33620. Internet: http://www.fma.org For information about careers in financial and treasury man­ agement and the Certified Treasury Professional program, con­ tact: y 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 pro­ gram, contact: y CFAInstitute,P.O.Box3668,560RayHuntDr„Charlottesville, VA 22903. Internet: http://www.cfainstitute.org For information on The American Institute of Banking and its programs, contact: y American Bankers Association, 1120 Connecticut Ave. NW., Washington, DC 20036. For information about the Certified in Management Account­ ing designation, contact: y Institute of Management Accountants, 10 Paragon Dr., Montvale, NJ,07645. Internet: http://www.imanet.org  Management, Business, and Financial Occupations 53  Food Service Managers (0*NET 11-9051.00)  Significant Points  •  •  •  Experience in food and beverage preparation and serving jobs is necessary for most food service man­ ager positions. Food service managers coordinate a wide range of ac­ tivities, but their most difficult task may be dealing with irate customers and uncooperative employees. Job opportunities for food service managers should be good as the number of outlets of restaurant chains increases to meet customer demand for convenience and value.  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 activi­ ties among various departments, such as kitchen, dining room, and banquet operations, food service managers ensure that cus­ tomers are satisfied with their dining experience. In addition, they oversee the inventory and ordering of food, equipment, and supplies and arrange for the routine maintenance and upkeep of the restaurant’s equipment and facilities. Managers generally are responsible for all of the administrative and human-resource functions of running the business, including recruiting new em­ ployees and monitoring employee performance and training. 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 hospi­ tality or culinary arts, and arrange for newspaper advertising to attract additional applicants. Managers oversee the training of new employees and explain the establishment’s policies and practices. They schedule work hours, making sure that enough workers are present to cover each shift. If employees are un­ able 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 cleaning of the dining areas and the washing of table­ ware, 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 en­ sure the personal safety of everyone. They make sure that health and safety standards 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   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  employee work records, preparing the payroll, and completing paperwork to comply with licensing laws and tax, wage and hour, unemployment compensation, and Social Security laws. Some of this work may be delegated to an assistant manager or bookkeeper, or it may be contracted out, but most general man­ agers retain responsibility for the accuracy of business records. Managers also maintain records of supply and equipment pur­ chases and ensure that accounts with suppliers are paid. 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 establishment, checking that ovens, grills, and lights are off, and switching on alarm systems. Technology influences the jobs of food service managers in many ways, enhancing efficiency and productivity. Many res­ taurants use computers to track orders, inventory, and the seat­ ing 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 computer 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 like a cash register, connects to credit card authorizers, and tracks sales. To minimize food costs and spoilage, many managers  Food service managers keep an inventory offood and supplies and perform other bookkeeping functions.  54 Occupational Outlook Handbook  use inventory-tracking software to compare sales records with a record of the current inventory. Some establishments enter an inventory of standard ingredients and suppliers into their POS system. When supplies of particular 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 equipment, recruit employees, and train staff. Internet access also makes service to customers more efficient. Many restau­ rants maintain Web sites that include menus and online promo­ tions, provide information about the restaurant’s location, and offer patrons the option of making a reservation. 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 ex­ ecutive chef is responsible for all food preparation activities, in­ cluding running kitchen operations, planning menus, and main­ taining quality standards for food service. In limited-service eating places, such as sandwich shops, coffee bars, or fast-food establishments, managers, not executive chefs, are responsible for supervising routine food 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 business hours, individual assistant manag­ ers may supervise different shifts of workers. In smaller restau­ rants, formal titles may be less important, and one person may undertake the work of one or more food service positions. For example, the executive chef also may be the general manager or even sometimes an owner. (For additional information on these other workers, see material on top executives and chefs, cooks, and food preparation workers elsewhere in the Handbook.) In restaurants where there are both food service managers and executive chefs, the managers often help the chefs select suc­ cessful menu items. This task varies by establishment depend­ ing on the seasonality of menu items, the frequency with which restaurants change their menus, and the introduction of daily, weekly, or seasonal 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 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, work out the portion size and nutritional content of each plate, and assign prices to various menu items. 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 or­ ders with distributors, and schedule the delivery of fresh food and supplies. They plan for routine services or deliveries, such as linen services or the heavy cleaning of dining rooms or kitchen equipment, to occur during slow times or when the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  dining room is closed. Managers also arrange for equipment maintenance and repairs, and coordinate a variety of services such as waste removal and pest control. 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 utensils, and furniture and fixtures. Work environment. 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. Managers 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 man­ agers are unpredictable. Managers should be calm, flexible, and able to work through emergencies, such as a fire or flood, to ensure everyone’s safety. They also should be able to fill in for absent workers on short notice. Managers often experience the pressures of simultane­ ously coordinating a wide range of activities. When problems occur, it is the manager’s responsibility to resolve them with minimal 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 accommodate large parties, receiving and storing daily supplies from vendors, or making minor repairs to furniture or equipment.  Training, Other Qualifications, and Advancement Experience in the food services industry, whether as a cook, waiter or waitress, or counter attendant, is the most common training for food service managers. Many restaurant and food service manager positions, particularly self-service and fastfood, are filled by promoting experienced food and beverage preparation and service workers. Education and training. Experience as a waiter or wait­ ress, cook, or counter help is the most common way to enter the occupation. Executive chefs, in particular, need extensive experience working as chefs. Many food service management companies and national or regional restaurant chains recruit management trainees from 2- and 4-year college hospitality management programs, which require internships and real-life experience to graduate. Some restaurant chains prefer to hire people with degrees in restaurant and institutional food ser­ vice management, but they often hire graduates with degrees in other fields who have demonstrated experience, interest, and aptitude. Postsecondary education is preferred for many food service manager positions, but it is not a significant qualification for many others: More than 40 percent of food service managers have a high school diploma or less; less than one-quarter have  Management, Business, and Financial Occupations 55  a bachelor’s or graduate degree. However, a postsecondary degree is preferred by higher end full-service restaurants and for many corporate positions, such as managing a regional or national restaurant chain or franchise or overseeing contract food service operations at sports and entertainment complexes, school campuses, and institutional facilities. A college degree also is beneficial for those who want to own or manage their own restaurant. Almost 1,000 colleges and universities offer 4-year programs in restaurant and hospitality management or institutional food service management; a growing number of university programs offer graduate degrees in hospitality management or similar fields. 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 associate degree or other formal certification. Both 2- and 4-year programs provide instruction in subjects such as nutrition, sanitation, and food planning and preparation, as well as accounting, business law and management, and com­ puter science. Some programs combine classroom and labora­ tory study with internships providing on-the-job experience. In addition, many educational institutions offer culinary programs in food preparation. Such training can lead to careers as cooks or chefs and provide a foundation for advancement to executive chef positions. Many larger food service operations will provide, or offer to pay for, technical training, such as computer or business cours­ es, so that employees can acquire the business skills necessary to read spreadsheets or understand the concepts and practices of running a business. Generally, this requires a long-term com­ mitment on the employee’s part to both the employer and to the profession. Most restaurant chains and food service management com­ panies have rigorous training programs for management po­ sitions. Through a combination of classroom and on-the-job training, trainees receive instruction and gain work experience in all aspects of the operation of a restaurant or institutional food service facility. Areas include food preparation, nutri­ tion, sanitation, security, company policies and procedures, personnel management, recordkeeping, and preparation of re­ ports. 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 permanent assignment as an as­ sistant manager. Other qualifications. Most employers emphasize personal qualities when hiring managers. Workers who are reliable, show initiative, and have leadership qualities are highly sought after for promotion. Other qualities that managers look for are good problem-solving skills and the ability to concentrate on details. A neat and clean appearance is important, because  food service managers must convey self-confidence and show respect in dealing with the public. Because food service man­ agement can be physically demanding, good health and stamina are important. Managers must be good communicators as they deal with customers, employees, and suppliers for most of the day. They must be able to motivate employees to work as a team, to ensure that food and service meet appropriate standards. Additionally, the ability to speak multiple languages is helpful to communi­ cate with staff and patrons. Certification and advancement. The certified Foodservice Management Professional (FMP) designation is a measure of professional achievement for food service managers, and although not a requirement for employment or necessary for advancement, voluntary certification can provide recognition of professional competence, particularly for managers who ac­ quired their skills largely on the job. The National Restaurant Association Educational Foundation awards the FMP designa­ tion to managers who achieve a qualifying score on a written examination, complete a series of courses that cover a range of food service management topics, and meet standards of work experience in the field. Willingness to relocate often is essential for advancement to positions with greater responsibility. Managers typically ad­ vance to larger or more prominent establishments or regional management positions within restaurant chains. Some may open their own food service establishments or franchise opera­ tion.  Employment Food service managers held about 350,000 jobs in 2006. The majority of managers are salaried, but 45 percent are self-em­ ployed as owners of independent restaurants or other small food service establishments. Thirty-eight percent of all salaried jobs for food service managers are in full-service restaurants or lim­ ited-service eating places, such as fast-food restaurants and caf­ eterias. Other salaried jobs are in special food services—an industry that includes food service contractors who supply food services at institutional, governmental, commercial, or indus­ trial locations, and educational services, primarily in elemen­ tary and secondary schools. A smaller number of salaried jobs are in hotels; amusement, gambling, and recreation industries; nursing care facilities; and hospitals. Jobs are located through­ out the country, with large cities and resort areas providing more opportunities for full-service dining positions.  Job Outlook Food service manager jobs are expected to grow 5 percent, or more slowly than the average for all occupations through 2016. However, job opportunities should be good because, in addition  Projections data from the National Employment Matrix Projected Change, employment, 2006-16 2016 Number Percent Food service managers............................................ ............................. 11-9051 350,000 368,000 18,000 5 NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa-  Occupational Title  tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  soc Code  Employment, 2006  56 Occupational Outlook Handbook  to job growth, many more openings will arise from the need to replace managers who leave the occupation. Employment change. Employment of food service manag­ ers is expected to grow 5 percent, or more slowly than the aver­ age for all occupations, during the 2006-16 decade. New eating and drinking places will open to meet the growing demand for convenience and value from a growing population, generating new employment opportunities for food service managers. Em­ ployment growth is projected to vary by industry. Most new jobs will be in full-service restaurants, but they are expected to decline among limited service restaurants. Manager jobs will also increase in special food services, an industry that includes food service contractors that provide food for schools, health care facilities, and other commercial businesses and in nursing and residential care for the elderly. Self-employment of these workers will generate nearly 30 percent of new jobs. Job prospects. In addition to job openings from employment growth, the need to replace managers who transfer to other oc­ cupations or stop working will create good job opportunities. Although practical experience is an integral part of finding a food service management position, applicants with a degree in restaurant, hospitality or institutional food service management will have an edge when competing for jobs at upscale restau­ rants and for advancement in a restaurant chain or into corpo­ rate management.  ment, and certification as a Foodservice Management Profes­ sional is available from: y National Restaurant Association Educational Foundation, 175 West Jackson Blvd., Suite 1500, Chicago, IL 60604-2702. Internet: http://www.nraef.org Career information about food service managers, as well as a directory of 2- and 4-year colleges that offer courses or pro­ grams that prepare persons for food service careers is available from: y National Restaurant Association, 1200 17th St.NW., Washington, DC 20036-3097. Internet: http://www.restaurant.org General information on hospitality careers may be obtained from: y The International Council on Hotel, Restaurant, and Institutional Education, 2810 North Parham Rd., Suite 230, Richmond, VA 23294. Internet: http://www.chrie.org Additional information about job opportunities in food ser­ vice 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  Earnings Median annual earnings of salaried food service managers were $43,020 in May 2006. The middle 50 percent earned between $34,210 and $55,100. The lowest 10 percent earned less than $27,400, and the highest 10 percent earned more than $70,810. Median annual earnings in the industries employing the largest numbers of food service managers were as follows: Traveler accommodation..................................................... $48,890 Special food services............................................................. 48,710 Full-service restaurants......................................................... 45,650 Elementary and secondary schools....................................... 39,650 Limited-service eating places............................................... 39,070  •  Job opportunities should be good, particularly for those who also embalm. • Some mortuary science graduates relocate to get a job. • Funeral directors are licensed by the State in which they practice. • Funeral directors need the ability to communicate easily and compassionately and to comfort people in a time of sorrow. Nature of the Work  In addition to receiving typical benefits, most salaried food service managers are provided free meals and the opportunity for additional training, depending on their length of service. Some food service managers, especially those in full-service restaurants, may earn bonuses depending on sales volume or revenue.  Related Occupations Food service managers direct the activities of a hospitality-in­ dustry business and provide a service to customers. Other man­ agers and supervisors in hospitality-oriented businesses include gaming managers, 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 manage­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Funeral practices and rites vary greatly among cultures and reli­ gions. However, funeral 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 carrying out fi­ nal disposition of the deceased. Funeral directors 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 comforting and appropriate services. Funeral directors arrange the details and handle the logistics of funerals. They interview the family to learn their wishes about the funeral, the clergy or other people who will offici­ ate, 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 loca­ tion, dates, and times of wakes, memorial services, and burials.  Management, Business, and Financial Occupations 57  They arrange for a hearse to carry the body to the funeral home or mortuary. They also comfort the family and friends of the deceased. Funeral directors prepare obituary notices and have them placed in newspapers, arrange for pallbearers and clergy, sched­ ule the opening and closing of a grave with a representative of the cemetery, decorate and prepare the sites of all services, and provide transportation for the deceased, mourners, and flowers between sites. They also direct preparation and shipment of the body for out-of-State burial. Most funeral directors also are trained, licensed, and prac­ ticing embalmers. Embalming is a sanitary, cosmetic, and preservative process through which the body is prepared for interment. If more than 24 hours elapse between death and in­ terment, State laws usually require that the remains be refriger­ ated or embalmed. When embalming a body, funeral directors wash the body with germicidal soap and replace the blood with embalming fluid to preserve the tissues. They may reshape and reconstruct bodies using materials such as clay, cotton, plaster of Paris, and wax. They also may apply cosmetics to provide a natural ap­ pearance, dress the body, and place it in a casket. Funeral direc­ tors maintain records such as embalming reports and itemized lists of clothing or valuables delivered with the body. In large funeral homes, an embalming staff of two or more, plus several apprentices may be employed. Funeral services may take place in a home, house of worship, funeral home, or at the gravesite or crematory. Some services are not religious, but many are, reflecting the religion of the family. Funeral directors must be familiar with the funeral and burial customs of many faiths, ethnic groups, and fraternal or­ ganizations. For example, members of some religions seldom have 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. Cre­ mation, which is the burning of the body in a special furnace, is increasingly selected because it can be less expensive and is becoming more appealing, in part because memorial services can be held anywhere, and at any time, sometimes months later when all relatives and friends can come together. A funeral service followed by cremation need not be any different from a funeral service followed by a burial. Usually, cremated remains are placed in some type of permanent receptacle, or urn, before being committed to a final resting place. The urn may be bur­ ied, placed in an indoor or outdoor mausoleum or columbarium, or interred in a special urn garden that many cemeteries provide for cremated remains. Funeral directors handle the paperwork involved with the person’s death, including submitting papers to State authori­ ties so that a formal death certificate may be issued and copies distributed to the heirs. They may help family members apply for veterans’ burial benefits, and they notify the Social Security Administration of the death. Also, funeral directors may apply for the transfer of any pensions, insurance policies, or annuities on behalf of survivors. Funeral directors also work with those who want to plan their own funerals in advance. This provides peace of mind by en-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Funeral directors explain various details of burial options and arrange funerals. suring that the client’s wishes will be taken care of in a way that is satisfying to the client and to the client’s survivors. Most funeral homes are small, family-run businesses, and many funeral directors are owner-operators or employees with managerial responsibilities. Funeral directors, therefore, are responsible for the success and the profitability of their busi­ nesses. Directors keep records of expenses, purchases, and services rendered; prepare and send invoices for services; pre­ pare and submit reports for unemployment insurance; prepare Federal, State, and local tax forms; and prepare itemized bills for customers. Funeral directors increasingly use computers for billing, bookkeeping, and marketing. Some are beginning to use the Internet to communicate with clients who are plan­ ning their funerals in advance or to assist them by developing electronic obituaries and guest books. Directors strive to foster a cooperative spirit and friendly attitude among employees and a compassionate demeanor toward the families. Increasingly, funeral directors also are helping individuals adapt to changes in their lives following a death through aftercare services and support groups. Most funeral homes have a chapel, one or more viewing rooms, a casket-selection room, and a preparation room. Many also have a crematory on the premises. Equipment may include a hearse, a flower car, limousines, and sometimes an ambulance. Funeral homes usually stock a selection of caskets and ums for families to purchase or rent. Work environment. Funeral directors occasionally come into contact with bodies that had contagious diseases, but the possi­ bility of infection is remote if health regulations are followed. Funeral directors often work long, irregular hours, and the occupation can be highly stressful. Many are on call at all hours because they may be needed to remove remains in the middle of the night. Shift work sometimes is necessary because funeral home hours include evenings and weekends. In smaller funeral homes, working hours vary, but in larger establishments, em­ ployees usually work 8 hours a day, 5 or 6 days a week.  Training, Other Qualifications, and Advancement Funeral directors are licensed in all States. State licensing laws vary, but most require applicants to be 21 years old, have 2  58 Occupational Outlook Handbook  years of formal education, serve a 1-year apprenticeship, and pass an examination. Education and training. College programs in mortuary sci­ ence usually last from 2 to 4 years. The American Board of Funeral Service Education accredits about 50 mortuary sci­ ence programs. A few community and junior colleges offer 2year programs, and a few colleges and universities offer both 2-year and 4-year programs. Mortuary science programs in­ clude courses in anatomy, physiology, pathology, 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 in legal, ethical, and regulatory subjects such as psychology, grief counseling, oral and written communication, funeral service law, business law, and ethics. Many State and national associations offer continuing educa­ tion programs designed for licensed funeral directors. These programs address issues in communications, counseling, and management. More than 30 States have requirements that fu­ neral directors receive continuing education credits to maintain their licenses. Apprenticeships must be completed under the direction of an experienced and licensed funeral director. Some States require apprenticeships. Depending on State regulations, apprentice­ ships last from 1 to 3 years and may be served before, during, or after mortuary school. Apprenticeships provide practical ex­ perience in all facets of the funeral service, from embalming to transporting remains. High school students can start preparing for a career as a fu­ neral director by taking courses in biology and chemistry and participating in public speaking or debate clubs. Part-time or summer jobs in funeral homes also provide good experience. These jobs consist mostly of maintenance and cleanup tasks, such as washing and polishing limousines and hearses, but they can help students become familiar with the operation of funeral homes. Licensure. All States require funeral directors to be licensed. Licensing laws vary by State, but most require applicants to be 21 years old, have 2 years of formal education that includes studies in mortuary 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. Some States require all funeral directors to be licensed in embalming. Others have separate licenses for directors and embalmers, but in those States funeral directors who embalm need to be licensed in embalming, and most workers obtain both licenses. State board licensing examinations vary, but they usually consist of written and oral parts and include a demonstration of practical skills. People who want to work in another State may have to pass the examination for that State; however, some  States have reciprocity arrangements and will grant licenses to funeral directors from another State without further examina­ tion. People interested in a career as a funeral director should contact their State licensing board for specific requirements. Other qualifications. Funeral directors need composure, tact, and the ability to communicate easily and compassionately with the public. Funeral directors also should have the desire and ability to comfort people in a time of sorrow. To show proper respect and consideration for the families and the dead, funeral directors must dress appropriately. The pro­ fessions usually require short, neat haircuts and trim beards, if any, for men. Suits and ties for men and dresses for women are customary. Advancement. Advancement opportunities generally are best in larger funeral homes. Funeral directors may earn promotions to higher paying positions such as branch manager or general manager. Some directors eventually acquire enough money and experience to establish their own funeral home businesses.  Employment Funeral directors held about 29,000 jobs in 2006. About 20 percent were self-employed. Nearly all worked in the death care services industry.  Job Outlook Job opportunities are expected to be good, particularly for those who also embalm. Some mortuary science graduates relocate to get a job. Employment change. Employment of funeral directors is expected to increase by 12 percent during the 2006-16 decade, about as fast as the average for all occupations. Projected job growth reflects growth in the death care services industry, where funeral directors are employed. Job prospects. In addition to employment growth, the need to replace funeral directors who retire or leave the occupation for other reasons will provide a number of job opportunities. Funeral directors are older, on average, than workers in most other occupations and are expected to retire in greater numbers over the coming decade. In addition, some funeral directors leave the profession because of the long and irregular hours. Some mortuary science graduates relocate to get a job.  Earnings Median annual earnings for wage and salary funeral directors were $49,620 in May 2006. The middle 50 percent earned between $37,200 and $65,260. The lowest 10 percent earned less than $28,410 and the top 10 percent earned more than $91,800. Salaries of funeral directors depend on the number of years of experience in funeral service, the number of services per­ formed, the number of facilities operated, the area of the coun-  Projections data from the National Employment Matrix Occupational Title Funeral directors..................................................... .............................  soc Code 11-9061  Employment, 2006 29,000  Projected employment, 2016 32,000  Change, 2006-16 Number Percent 3,600 12  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa-  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 59  try, and the director’s level of formal education. Funeral direc­ tors in large cities usually earn more than their counterparts in small towns and rural areas.  Related Occupations The job of a funeral director requires tact, discretion, and com­ passion when dealing with grieving people. Others who need these qualities include social workers, psychologists, physi­ cians and surgeons, and other health practitioners involved in diagnosis and treatment.  Sources of Additional Information For a list of accredited mortuary science programs and informa­ tion on the funeral service profession, write to: y 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: y The American Board of Funeral Service Education, 3432 Ashland Ave., Suite U, St.Joseph, MO 64506. Internet: http://www.abfse.org For information on specific State licensing requirements, contact the State’s licensing board. For more information about funeral directors and their work, see the Occupational Outlook Quarterly article, “Jobs in wed­ dings and funerals: Working with the betrothed and the be­ reaved,” available in many libraries and career centers and on­ line at: http://www.bls.gov/opub/ooq/2006/winter/art03.pdf  Human Resources, Training, and Labor Relations Managers and Specialists (0*NET 11-3041.00, 11-3042.00, 11-3049.99, 13-1071.00, 13-1071.01, 13-1071.02, 13-1072.00, 13-1073.00, 13­ 1079.99)  Significant Points  •  The educational backgrounds of these workers vary considerably, reflecting the diversity of duties and lev­ els of responsibility. • Certification and previous experience are assets for most specialties, and are essential for more advanced positions, including managers, arbitrators, and media­ tors. • College graduates who have earned certification should have the best job opportunities. Nature of the Work Every organization wants to attract the most qualified em­ ployees and match them to jobs for which they are best suited. However, many enterprises are too large to permit close contact between top management and employees. Human resources, training, and labor relations managers and specialists provide   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  this connection. In the past, these workers performed the ad­ ministrative function of an organization, such as handling em­ ployee benefits questions or recruiting, interviewing, and hir­ ing new staff in accordance with policies established by top management. Today’s human resources workers manage these tasks, but, increasingly, they also consult with top executives regarding strategic planning. They have moved from behindthe-scenes staff work to leading the company in suggesting and changing policies. In an effort to enhance morale and productivity, limit job turn­ over, and help organizations increase performance and improve business results, these workers also help their firms effectively use employee skills, provide training and development oppor­ tunities to improve those skills, and increase employees’ satis­ faction with their jobs and working conditions. Although some jobs in the human resources field require only limited contact with people outside the human resources office, dealing with people is an important part of the job. There are many types of human resources, training, and labor relations managers and specialists. In a small organization, a human resources generalist may handle all aspects of human resources work, and thus require an extensive range of knowl­ edge. The responsibilities of human resources generalists can vary widely, depending on their employer’s needs. In a large corporation, the director of human resources may supervise several departments, each headed by an experienced manager who most likely specializes in one human resources activity, such as employment and placement; compensation, and benefits; training and development; or labor relations. The director may report to a top human resources executive. (Ex­ ecutives are included in the Handbook statement on top execu­ tives.) Employment and placement. Employment and placement managers supervise the hiring and separation of employees. They also supervise employment, recruitment, and placement specialists, including recruitment specialists and employment interviewers. Employment, recruitment, and placement spe­ cialists recruit and place workers. Recruiters maintain contacts within the community and may travel considerably, often to college campuses, to search for promising job applicants. Recruiters screen, interview, and oc­ casionally test applicants. They also may check references and extend job offers. These workers must be thoroughly famil­ iar with the organization and its human resources policies in order to discuss wages, working conditions, and promotional opportunities with prospective employees. They also must stay informed about equal employment opportunity (EEO) and affir­ mative action guidelines and laws, such as the Americans with Disabilities Act. Employment interviewers—whose many job titles include human resources consultants, human resources development specialists, and human resources coordinators—help to match employers with qualified jobseekers. Similarly, employer rela­ tions representatives, who usually work in government agen­ cies, maintain working relationships with local employers and promote the use of public employment programs and services. Compensation, benefits, and job analysis. Compensation, benefits, and job analysis specialists conduct compensation  60 Occupational Outlook Handbook  s  College graduates with certification should have the best op­ portunities for jobs as human resources, training, and labor relations managers and specialists. programs for employers and may specialize in specific areas such as pensions or position classifications. For example, job analysts, occasionally called position classifiers, collect and examine detailed information about job duties in order to pre­ pare 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 on worker relationships. They may serve as techni­ cal liaison between the firm and other firms, government, and labor unions. Establishing and maintaining a firm’s pay system is the principal 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 they ensure that the firm’s pay scale complies with changing laws and regulations. In addition, compensation managers often manage their firm’s performance evaluation system, and they may design reward systems such as pay-for-performance plans. Employee benefits managers and specialists manage the company’s employee benefits program, notably its health in­ surance and pension plans. Expertise in designing and admin­ istering benefits programs continues to take on importance as employer-provided benefits account for a growing proportion of overall compensation costs, and as benefit plans increase in number and complexity. For example, pension benefits might include a 40IK or thrift savings, profit-sharing, and stock ownership plans; health benefits might include long-term catastrophic illness insurance and dental insurance. Familiar­ ity with health benefits is a top priority for employee benefits managers and specialists, as more firms struggle to cope with the rising cost of health care for employees and retirees. In addition to health insurance and pension coverage, some firms offer employees life and accidental death and dismemberment insurance, disability insurance, and relatively new benefits de­ signed to meet the needs of a changing workforce, such as pa­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  rental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Benefits managers must keep abreast of changing Federal and State regulations and legislation that may affect employee benefits. Employee assistance plan managers, also called employee welfare managers, are responsible for a wide array of pro­ grams. These include occupational safety and health stan­ dards and practices; health promotion and physical fitness, medical examinations, and minor health treatment, such as first aid; plant security; publications; food service and recre­ ation activities; carpooling and transportation programs, such as transit subsidies; employee suggestion systems; child care and elder care; and counseling services. Child care and el­ der care are increasingly significant because of growth in the number of dual-income households and the elderly popula­ tion. 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 deal­ ing with security and safety, may be in separate departments headed by other managers. Training and development. Training and development man­ agers and specialists conduct and supervise training and devel­ opment programs for employees. Increasingly, management recognizes that training offers a way of developing skills, en­ hancing productivity and quality of work, and building worker loyalty to the firm, and most importantly, increasing individu­ al and organizational performance to achieve business results. Training is widely accepted as an employee benefit and a method of improving employee morale, and enhancing em­ ployee skills has become a business imperative. Increasingly, managers and leaders realize that the key to business growth and success is through developing the skills and knowledge of its workforce. Other factors involved in determining whether training is needed include the complexity of the work environment, the rapid pace of organizational and technological change, and the growing number of jobs in fields that constantly gener­ ate new knowledge, and thus, require new skills. In addition, advances in learning theory have provided insights into how adults learn, and how training can be organized most effec­ tively for them. Training managers provide worker training either in the classroom or onsite. This includes setting up teaching materi­ als prior to the class, involving the class, and issuing comple­ tion certificates at the end of the class. They have the respon­ sibility for the entire learning process, and its environment, to ensure that the course meets its objectives and is measured and evaluated to understand how learning impacts business results. Training specialists plan, organize, and direct a wide range of training activities. Trainers respond to corporate and worker service requests. They consult with onsite supervisors regard­ ing available performance improvement services and conduct orientation sessions and arrange on-the-job training for new employees. They help all employees maintain and improve their job skills, and possibly prepare for jobs requiring greater  Management, Business, and Financial Occupations 61  skill. They help supervisors improve their interpersonal skills in order to deal effectively with employees. They may set up individualized training plans to strengthen an employee’s existing skills or teach new ones. Training specialists in some companies set up leadership or executive development pro­ grams among employees in lower level positions. These pro­ grams are designed to develop leaders, or “groom” them, to replace those leaving the organization and as part of a suc­ cession plan. Trainers also lead programs to assist employees with job transitions as a result of mergers and acquisitions, as well as technological changes. In government-supported training programs, training specialists function as case man­ agers. They first assess the training needs of clients and then guide them through the most appropriate training method. After training, clients may either be referred to employer rela­ tions representatives or receive job placement assistance. Planning and program development is an essential part of the training specialist’s job. In order to identify and assess training needs within the firm, trainers may confer with man­ agers and supervisors or conduct surveys. They also evaluate training effectiveness to ensure that the training employees re­ ceive helps the organization meet its strategic business goals and achieve results. Depending on the size, goals, and nature of the organiza­ tion, trainers may differ considerably in their responsibilities and in the methods they use. Training methods include onthe-job training; operating schools that duplicate shop con­ ditions for trainees prior to putting them on the shop floor; apprenticeship training; classroom training; and electronic learning, which may involve interactive Internet-based train­ ing, multimedia programs, distance learning, satellite train­ ing, other computer-aided instructional technologies, videos, simulators, conferences, and workshops. Employee relations. An organization’s director of industrial relations forms labor policy, oversees industrial labor rela­ tions, negotiates collective bargaining agreements, and coor­ dinates grievance procedures to handle complaints resulting from management disputes with unionized employees. The director of industrial relations also advises and collaborates with the director of human resources, other managers, and members of their staff, because all aspects of human resourc­ es policy—such as wages, benefits, pensions, and work prac­ tices—may be involved in drawing up a new or revised union contract. Labor relations managers and their staffs implement in­ dustrial labor relations programs. Labor relations specialists prepare information for management to use during collective bargaining agreement negotiations, a process that requires the specialist to be familiar with economic and wage data and to have extensive knowledge of labor law and collective bargain­ ing trends. The labor relations staff interprets and administers the contract with respect to grievances, wages and salaries, employee welfare, health care, pensions, union and manage­ ment practices, and other contractual stipulations. As union membership continues to decline in most industries, industrial relations personnel are working more often with employees who are not members of a labor union.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Dispute resolution—attaining tacit or contractual agree­ ments—has become increasingly significant as parties to a dispute attempt to avoid costly litigation, strikes, or other dis­ ruptions. Dispute resolution also has become more complex, involving employees, management, unions, other firms, and government agencies. Specialists involved in dispute reso­ lution must be highly knowledgeable and experienced, and often report to the director of industrial relations. Concilia­ tors, or mediators, advise and counsel labor and management to prevent and, when necessary, resolve disputes over labor agreements or other labor relations issues. Arbitrators, occa­ sionally 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. EEC) officers, representatives, or affirmative action coor­ dinators 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. Other emerging specialties in human resources include in­ ternational human resources managers, who handle human resources issues related to a company’s foreign operations; and human resources information system specialists, who develop and apply computer programs to process human re­ sources information, match job seekers with job openings, and handle other human resources matters. Work environment. Human resources work usually takes place in clean, pleasant, and comfortable office settings. Ar­ bitrators and mediators may work out of their homes. Although most human resources, training, and labor rela­ tions managers and specialists work in the office, some travel extensively. For example, recruiters regularly attend pro­ fessional meetings and visit college campuses to interview prospective employees; arbitrators and mediators often must travel to the site chosen for negotiations. Many human resources, training, and labor relations man­ agers and specialists work a standard 35- to 40-hour week. However, longer hours might be necessary for some work­ ers—for example, labor relations managers and specialists, arbitrators, and mediators—when contract agreements are be­ ing prepared and negotiated.  Training, Other Qualifications, and Advancement The educational backgrounds of human resources, training, and labor relations managers and specialists vary consider­ ably, reflecting the diversity of duties and levels of responsi­ bility. In filling entry-level jobs, many employers seek col­ lege graduates who have majored in human resources, human resources administration, or industrial and labor relations. Other employers look for college graduates with a technical or business background or a well-rounded liberal arts education. Education and training. Many colleges and universities have programs leading to a degree in personnel, human re­ sources, or labor relations. Some offer degree programs in human resources administration or human resources manage­ ment, training and development, or compensation and ben­  62 Occupational Outlook Handbook  efits. Depending on the school, courses leading to a career in human resources management may be found in departments of business administration, education, instructional technol­ ogy, organizational development, human services, communi­ cation, or public administration, or within a separate human resources institution or department. Because an interdisciplinary background is appropriate in this field, a combination of courses in the social sciences, busi­ ness, and behavioral sciences is useful. Some jobs may re­ quire a more technical or specialized background in engineer­ ing, science, finance, or law, for example. Most prospective human resources specialists should take courses in compensa­ tion, recruitment, training and development, and performance appraisal, as well as courses in principles of management, or­ ganizational structure, and industrial psychology. Other rel­ evant courses include business administration, public admin­ istration, psychology, sociology, political science, economics, and statistics. Courses in labor law, collective bargaining, la­ bor economics, labor history, and industrial psychology also provide a valuable background for the prospective labor rela­ tions specialist. As in many other fields, knowledge of com­ puters and information systems also is useful. An advanced degree is increasingly important for some jobs. Many labor relations jobs require graduate study in in­ dustrial or labor relations. A strong background in industrial relations and law is highly desirable for contract negotiators, mediators, and arbitrators; in fact, many people in these spe­ cialties are lawyers. A background in law also is desirable for employee benefits managers and others who must interpret the growing number of laws and regulations. A master’s degree in human resources, labor relations, or in business administra­ tion with a concentration in human resources management is highly recommended for those seeking general and top man­ agement positions. The duties given to entry-level workers will vary, depending on whether the new workers have a degree in human resource management, have completed an internship, or have some oth­ er type of human resources-related experience. Entry-level employees commonly learn the profession by performing ad­ ministrative duties—helping to enter data into computer sys­ tems, compiling employee handbooks, researching informa­ tion for a supervisor, or answering the phone and handling routine questions. Entry-level workers often enter formal or on-the-job training programs in which they learn how to clas­ sify jobs, interview applicants, or administer employee ben­ efits. They then are assigned to specific areas in the human resources department to gain experience. Later, they may ad­ vance to a managerial position, supervising a major element of the human resources program—compensation or training, for example. Other qualifications. Previous experience is an asset for many specialties in the human resources field, and is essential for more advanced positions, including managers, arbitrators, and mediators. Many employers prefer entry-level workers who have gained some experience through an internship or work-study program while in school. Human resources ad­ ministration and human resources development require the ability to work with individuals as well as a commitment to   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  organizational goals. This field also demands other skills that people may develop elsewhere—using computers, selling, teaching, supervising, and volunteering, among others. The field offers clerical workers opportunities for advancement to professional positions. Responsible positions occasionally are filled by experienced individuals from other fields, includ­ ing business, government, education, social services adminis­ tration, and the military. The human resources field demands a range of personal qualities and skills. Human resources, training, and labor relations managers and specialists must speak and write ef­ fectively. 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, integrity, fair-minded­ ness, and a persuasive, congenial personality. Certification and advancement. Most organizations spe­ cializing in human resources offer classes intended to enhance the skills of their members. Some organizations offer certi­ fication programs, which are signs of competence and cred­ ibility and can enhance one’s advancement opportunities. For example, the International Foundation of Employee Benefit Plans confers a designation in three distinct areas of special­ ization—group benefit, retirement, and compensation—to persons who complete a series of college-level courses and pass exams. Candidates can earn a designation in each of the specialty tracks and, simultaneously, receive credit toward becoming a Certified Employee Benefits Specialist (CEBP). The American Society for Training and Development (ASTD) Certification Institute offers professional certification in the learning and performance field. Addressing nine areas of ex­ pertise, it requires passing a knowledge-based exam and suc­ cessful work experience. In addition, ASTD offers 16 short­ term certificate and workshop programs covering a broad range of professional training and development topics. The Society for Human Resource Management offers two levels of certification, including the Professional in Human Resourc­ es (PHR) and the Senior Professional in Human Resources (SPHR). Additionally, the organization offers the Global Pro­ fessional in Human Resources for those with international and cross-border responsibilities and the California Certification in Human Resources for those who plan to work in the State and are unfamiliar with California’s labor and human resource laws. All designations require experience and a passing score on a comprehensive exam. World at Work Society of Cer­ tified Professionals offers four levels of designations in the areas of compensation, benefits, work life, and total rewards management practices. Through the Society, candidates can obtain the designation of Certified Compensation Professional (CCP), Certified Benefits Professional (CBP), Global Remu­ neration Professional (GRP), and Work-Life Certified Profes­ sional (WLCP). Exceptional human resources workers may be promoted to director of human resources or industrial relations, which can eventually lead to a top managerial or executive position. Others may join a consulting or outsourcing firm or open their  Management, Business, and Financial Occupations 63  own business. A Ph.D. is an asset for teaching, writing, or consulting work.  Employment Human resources, training, and labor relations managers and specialists held about 868,000 jobs in 2006. The following tabu­ lation shows the distribution of jobs by occupational specialty: Training and development specialists.................................. 210,000 Employment, recruitment, and placement specialists...........197,000 Human resources managers..................................................136,000 Compensation, benefits, and job analysis specialists............110,000 Human resources, training, and labor relations specialists, all other............................................. 214,000 Human resources, training, and labor relations managers and specialists were employed in virtually every industry. About 17,000 managers and specialists were self-employed, working as consultants to public and private employers. The private sector accounted for nearly 9 out of 10 salaried jobs, including 13 percent in administrative and support services; 10 percent in professional, scientific, and technical services; 9 percent in health care and social assistance; 9 percent in finance and insurance firms; and 7 percent in manufacturing. Government employed 13 percent of human resources manag­ ers and specialists. They handled the recruitment, interviewing, job classification, training, salary administration, benefits, em­ ployee relations, and other matters related to the Nation’s public employees.  Job Outlook Employment of human resources, training, and labor relations managers and specialists is expected to grow faster than the av­ erage for all occupations. College graduates who have earned certification should have the best job opportunities. Employment change. Overall employment is projected to grow by 17 percent between 2006 and 2016, faster than the av­ erage for all occupations. Legislation and court rulings setting standards in various areas—occupational safety and health, equal employment opportunity, wages, health care, pensions, and fam­ ily leave, among others—will increase demand for human re­ sources, training, and labor relations experts. Rising health care costs should continue to spur demand for specialists to develop  creative compensation and benefits packages 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-manage­ ment disputes out of court. Additional job growth may stem from increasing demand for specialists in international human resourc­ es management and human resources information systems. Job growth could be limited by the widespread use of com­ puterized human resources information systems that make work­ ers more productive. Like other workers, employment of human resources, training, and labor relations managers and specialists, particularly in larger firms, may be adversely affected by corpo­ rate downsizing, restructuring, and mergers and acquisitions. Demand may be particularly strong for certain special­ ists. For example, employers are expected to devote greater resources to job-specific training programs in response to the increasing complexity of many jobs and technological advances that can leave employees with obsolete skills. Additionally, as highly trained and skilled baby boomers retire, there should be strong demand for training and development specialists to im­ part needed skills to their replacements. In addition, increasing efforts throughout industry to recruit and retain quality employ­ ees 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 human resources functions or hire human resources specialists on a temporary basis in order to deal with the increasing cost and complexity of training and development programs. Demand for specialists also should in­ crease in outsourcing firms that develop and administer complex employee benefits and compensation packages for other organi­ zations. Job prospects. College graduates who have earned certifica­ tion should have the best job opportunities. Graduates with a bachelor’s degree in human resources, human resources admin­ istration, or industrial and labor relations should be in demand; those with a technical or business background or a well-rounded liberal arts education also should find opportunities. Demand for human resources, training, and labor relations managers and spe­ cialists is governed by the staffing needs of the firms for which  Projections data from the National Employment Matrix Occupational Title Human resources, training, and labor relations managers and specialists............................................................................................ Compensation and benefits managers............................................. Training and development managers.............................................. Human resources managers, all other............................................. Employment, recruitment, and placement specialists................... Compensation, benefits, and job analysis specialists.................... Training and development specialists............................................. Human resources, training, and labor relations specialists, all other................................................................................................  soc Code  Employment, 2006  Projected employment, 2016  Change, 2006-16 Number Percent  11-3041 11-3042 11-3049 13-1071 13-1072 13-1073  868,000 49,000 29,000 58,000 197,000 110,000 210,000  1,015,000 55,000 33,000 65,000 233,000 130,000 249,000  147,000 5,900 4,500 6,600 36,000 20,000 38,000  17 12 16 11 18 18 18  13-1079  214,000  250,000  35,000  16  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  64 Occupational Outlook Handbook  they work. A rapidly expanding business is likely to hire addi­ tional 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 of these work­ ers. Also, as human resources management becomes increas­ ingly important to the success of an organization, some small and medium-size businesses that do not have a human resources de­ partment may assign employees various human resources duties together with other unrelated responsibilities. In addition to human resources management and specialist jobs created over the 2006-2016 projection period, many job openings will arise from the need to replace workers who transfer to other occupations, retire, or leave the labor force for other reasons.  Earnings Annual salary rates for human resources workers vary accord­ ing to occupation, level of experience, training, location, and firm size. Median annual earnings of compensation and benefits manag­ ers were $74,750 in May 2006. The middle 50 percent earned between $55,370 and $99,690. The lowest 10 percent earned less than $42,750, and the highest 10 percent earned more than $132,820. In 2006, median annual earnings were $85,330 in the management of companies and enterprises industry. Median annual earnings of training and development manag­ ers were $80,250 in May 2006. The middle 50 percent earned between $58,770 and $107,450. The lowest 10 percent earned less than $43,530, and the highest 10 percent earned more than $141,140. Median annual earnings of human resources managers, all other were $88,510 in May 2006. The middle 50 percent earned between $67,710 and $114,860. The lowest 10 percent earned less than $51,810, and the highest 10 percent earned more than $145,600. In May 2006, median annual earnings were $98,400 in the management of companies and enterprises industry. Median annual earnings of employment, recruitment, and placement specialists were $42,420 in May 2006. The middle 50 percent earned between $32,770 and $58,320. The lowest 10 percent earned less than $26,590, and the highest 10 percent earned more than $81,680. Median annual earnings in the indus­ tries employing the largest numbers of employment, recruitment, and placement specialists were: Management, scientific, and technical consulting services.............................................................$53,060 Management of companies and enterprises............................48,360 Local government...................................................................40,660 Employment services.............................................................39,720 State government....................................................................36,320 Median annual earnings of compensation, benefits, and job analysis specialists were $50,230 in May 2006. The middle 50 percent earned between $39,400 and $63,800. The lowest 10 percent earned less than $32,180, and the highest 10 percent earned more than $80,150. Median annual earnings in the indus­ tries employing the largest numbers of compensation, benefits, and job analysis specialists were:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Local government.................................................................$53,440 Management of companies and enterprises............................52,960 Insurance carriers....................................................................50,510 Agencies, brokerages, and other insurance related activities.................................................. 49,100 State government....................................................................46,100 Median annual earnings of training and development special­ ists were $47,830 in May 2006. The middle 50 percent earned between $35,980 and $63,200. The lowest 10 percent earned less than $27,450, and the highest 10 percent earned more than $80,630. Median annual earnings in the industries employing the largest numbers of training and development specialists were: Computer systems design and relatedservices...................... $60,430 Management of companies and enterprises............................50,850 Insurance carriers....................................................................50,060 State government....................................................................49,040 Local government...................................................................47,990 The average salary for human resources managers employed by the Federal Government was $76,503 in 2007; for labormanagement relations examiners, $94,927; and for manpower development specialists, $86,071. Salaries were slightly higher in areas where the prevailing local pay level was higher. There are no formal entry-level requirements for managerial positions. Applicants must possess a suitable combination of educational attainment, experience, and record of accomplishment. According to a July 2007 salary survey conducted by the Na­ tional Association of Colleges and Employers, bachelor’s degree candidates majoring in human resources, including labor and industrial relations, received starting offers averaging $41,680 a year.  Related Occupations All human resources occupations are closely related. Other work­ ers with skills and expertise in interpersonal relations include counselors, education administrators, public relations specialists, lawyers, psychologists, social and human service assistants, and social workers.  Sources of Additional Information For information about human resource management careers and certification, contact: y 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: y American Society for Training and Development, 1640 King St., Box 1443, Alexandria, VA 22313-2043. Internet: http://www.astd.org For information about careers and certification in employee compensation and benefits, contact: y International Foundation of Employee Benefit Plans, 18700 W. Bluemound Rd., P.O. Box 69, Brookfield, WI53008-0069. Internet: http://www.ifebp.org y World at Work, 14040 N. Northsight Blvd., Scottsdale, AZ 85260. Internet: http://www.worIdatwork.org  Management, Business, and Financial Occupations 65  Industrial Production Managers (0*NET 11-3051.00)  Significant Points  •  •  •  Industrial production managers coordinate all the people and equipment involved in the manufacturing process. Most employers prefer to hire workers with a college degree; experience in some part of production opera­ tions is also usually required. Employment is expected to decline as overall employ­ ment in manufacturing declines.  Nature of the Work Industrial production managers plan, direct, and coordinate the production activities required to produce the vast array of goods manufactured every year in the United States. They make sure that production meets output and quality goals while remain­ ing within budget. Depending on the size of the manufacturing plant, industrial production managers may oversee the entire plant or just one area. Industrial production managers devise methods to use the plant’s personnel and capital resources to best meet produc­ tion goals. They may determine which machines will be used, whether new machines need to be purchased, whether overtime or extra shifts are necessary, and what the sequence of produc­ tion will be. They monitor the production run to make sure that it stays on schedule and correct any problems that may arise. Part of an industrial production manager’s job is to come up with ways to make the production process more efficient. Traditional factory methods, such as mass assembly lines, have given way to “lean” production techniques, which give manag­ ers more flexibility. While in a traditional assembly line, each worker was responsible for only a small portion of the assembly, repeating that task on every product, lean production employs teams to build and assemble products in stations or cells, so rather than specializing in a specific task, workers are capable of performing all jobs within a team. Without the constraints of the traditional assembly line, industrial production managers can more easily change production levels and staffing on differ­ ent product lines to minimize inventory levels and more quickly react to changing customer demands. Industrial production managers also monitor product stan­ dards and implement quality control programs. They make sure the finished product meets a certain level of quality, and if not, they try to find out what the problem is and find a solu­ tion. While traditional quality control programs reacted only to problems that reached a certain significant level, newer manage­ ment techniques and programs, such as ISO 9000, Total Qual­ ity Management (TQM), or Six Sigma, emphasize continuous quality improvement. If the problem relates to the quality of work performed in the plant, the manager may implement bet­ ter training programs or reorganize the manufacturing process, often based upon the suggestions of employee teams. If the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Industrial production managers monitor the quantity and qual­ ity of goods produced. cause is substandard materials or parts from outside suppliers, the industrial production manager may work with the supplier to improve their quality. Industrial production managers work closely with the other managers of the firm to implement the company’s policies and goals. They also must work with the financial departments in order to come up with a budget and spending plan. They work the closest with the heads of sales, procurement, and logistics. Sales managers relay the client’s needs and the price the cli­ ent is willing to pay to the production department, which must then fulfill the order. The logistics or distribution department handles the delivery of the goods, which often needs to be co­ ordinated with the production department. The procurement department orders the supplies that the production department needs to make its products. It is also responsible for making sure that the inventories of supplies are maintained at proper levels so production proceeds without interruption. A break­ down in communications between the production manager and the procurement department can cause slowdowns and a failure to meet production schedules. Just-in-time production tech­ niques have reduced inventory levels, making constant commu­ nication among managers, suppliers, and procurement depart­ ments even more important. Work environment. Most industrial production managers divide their time between production 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 meeting with subordinates or other department managers, analyzing produc­ tion data, and writing and reviewing reports. Many industrial production managers work extended hours, especially when production deadlines must be met. In 2006, about a third of all workers worked more than 50 hours a week, on average. In facilities that operate around-the-clock, man­ agers 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, regardless of the hour, and staying until the situation is under control. Dealing with production work­ ers as well as superiors when working under the pressure of production deadlines or emergency situations can be stressful.  66 Occupational Outlook Handbook  Corporate restructuring has eliminated levels of management and support staff, thus shifting more responsibilities to produc­ tion managers and compounding this stress.  Training, Other Qualifications, and Advancement Because of the diversity of manufacturing operations and job requirements, there is no standard preparation for this occupa­ tion. Most employers prefer to hire workers with a college de­ gree. Experience in some part of production operations is also usually required, although some college graduates are hired di­ rectly into management positions. Education and training. Many industrial production manag­ ers have a college degree in business administration, manage­ ment, industrial technology, or industrial engineering. How­ ever, although employers may prefer candidates with a business or engineering background, some companies will hire wellrounded liberal arts graduates who are willing to spend time in a production-related job. Some industrial production managers enter the occupation after working their way up through the ranks, starting as pro­ duction workers and then advancing to supervisory positions before being selected for management. These workers already have an intimate knowledge of the production process and the firm’s organization. To be selected for promotion, workers can expand their skills by obtaining a college degree, demonstrating leadership qualities, or by taking company-sponsored courses to learn the additional skills needed for management. As production operations become more sophisticated, an in­ creasing number of employers look for candidates with gradu­ ate degrees in industrial management or business administra­ tion, particularly for positions at larger plants where managers have more oversight responsibilities. Combined with an under­ graduate degree in engineering, either of these graduate degrees is considered particularly good preparation. Managers who do not have graduate degrees often take courses in decision sci­ ences, which provide them with techniques and statistical for­ mulas that can be used to maximize efficiency and improve quality. 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 to management positions. Other qualifications. Companies are placing greater impor­ tance on a candidate’s interpersonal skills. Because the job re­ quires the ability to compromise, persuade, and negotiate, suc­ cessful production managers must be well-rounded and have  excellent communication skills. Strong computer skills are also essential. Industrial production managers must continually keep in­ formed of new production technologies and management practic­ es. Many belong to professional organizations and attend trade shows or industry conferences where new equipment is displayed and new production methods and technologies discussed. Certification and advancement. Some industrial production managers earn certifications that show their competency in vari­ ous quality and management systems. Although certification is not required for industrial production manager jobs, it may improve job prospects. One credential, Certified in Production and Inventory Man­ agement (CPIM), is offered by the Association for Operations Management and requires passing a series of exams that cover supply chain management, resource planning, scheduling, pro­ duction operations, and strategic planning. Certification hold­ ers must complete a set number of professional development activities every 3 years to maintain their certification. The American Society for Quality offers the Certified Man­ ager of Quality/Organizational Excellence (CMQ/OE) creden­ tial. This certification is open to managers who pass an exam and who have at least 10 years of experience or education, 5 of which must be in a decision-making position. It is intended for managers who lead process improvement initiatives. To main­ tain certification, workers must complete a set number of pro­ fessional development units every 3 years. 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 managers to become consultants. (For more information, see the statement on management analysts elsewhere in the Hand­  book.)  Employment Industrial production managers held about 157,000 jobs in 2006. About 4 out of 5 are employed in manufacturing indus­ tries, including the fabricated metal product, transportation equipment, and computer and electronic product manufactur­ ing sectors. Production managers work in all parts of the coun­ try, but jobs are most plentiful in areas where manufacturing is concentrated.  Job Outlook Employment of industrial production managers is expected to decline. Applicants with experience in production occupations along with a college degree in industrial engineering, manage­ ment, or a related field will enjoy the best job prospects. Employment change. Employment of industrial production managers is expected to decline moderately by 6 percent over  Projections data from the National Employment Matrix Occupational Title Industrial production managers................................. ..........................  soc Code 11-3051  Employment, 2006 157,000  Projected employment, 2016 148,000  Change, 2006-16 Number Percent -9,200 -6  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa-  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 67  the 2006-2016 decade, mirroring the overall decline in manu­ facturing employment. Some declines will result from man­ ufacturing plants moving abroad, but domestic production in manufacturing is expected to continue to increase. However, as plants produce more goods with fewer people, there will be less need for industrial production managers. Efforts to increase efficiency at the management level have led companies to ask production managers to assume more re­ sponsibilities, particularly as computers allow managers to more easily coordinate scheduling, planning, and communication among departments. In addition, more emphasis on quality in the production process has redistributed some of the production manager’s oversight responsibilities to supervisors and workers on the production line. However, most of the decision making work of production managers cannot be automated, which will limit the declines in employment. Job prospects. Despite employment declines, a number of jobs are expected to open due to the need to replace workers who retire or transfer to other occupations. Applicants with ex­ perience in production occupations along with a college degree in industrial engineering, management, or business administra­ tion, and particularly those with an undergraduate engineering degree and a master’s degree in business administration or in­ dustrial management, will enjoy the best job prospects. Em­ ployers also are likely to seek candidates who have excellent communication skills, related work experience, and who are personable, flexible, and eager to enhance their knowledge and skills through ongoing training.  Earnings Median annual earnings for industrial production managers were $77,670 in May 2006. The middle 50 percent earned be­ tween $59,650 and $100,810. The lowest 10 percent earned less than $47,230, and the highest 10 percent earned more than $130,680. Median annual earnings in the manufacturing in­ dustries employing the largest numbers of industrial production managers were: Management of companies and enterprises........................$88,820 Aerospace product and parts manufacturing.........................87,750 Motor vehicle parts manufacturing.......................................79,360 Printing and related support activities...................................73,350 Plastics product manufacturing.............................................70,180  Related Occupations Industrial production managers oversee production staff and equipment, ensure that production goals and quality standards are being met, and implement company policies. Other mana­ gerial occupations with similar responsibilities are general and operations managers, construction managers, and sales manag­ ers. Occupations requiring comparable training and problem­ solving skills are engineers, management analysts, and opera­ tions research analysts.  Sources of Additional Information General information on careers in industrial production man­ agement is available from local manufacturers and schools with programs in industrial management.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  For more information on careers in production management and information on the CPIM certification, contact: X APICS, the Association for Operations Management, 5301 Shawnee Road, Alexandria, VA 22312. Internet: http://www.apics.org For more information on quality management and the CMQ/ OE certification, contact: X American Society for Quality, 600 North Plankinton Ave., Milwaukee, WI 53203. Internet: http://www.asq.org  Lodging Managers (0*NET 11-9081.00)  Significant Points  • • •  Long hours, including night and weekend work, are common. Employment is projected to grow about as fast as the average for all occupations. College graduates with degrees in hotel or hospitality management should have better opportunities for jobs at full-service hotels and for advancement than those without a degree.  Nature of the Work A comfortable room, good food, and a helpful staff can make being away from home an enjoyable experience for both va­ cationing families and business travelers. Lodging managers make sure that these conveniences are provided, while also en­ suring that the establishments are run efficiently and profitably. Most lodging managers work in traditional hotels and motels, but some work in other lodging establishments, such as recre­ ational camps and RV parks, inns, boardinghouses, and youth hostels. Lodging establishments can vary significantly in size and in the number of services they provide, which can range from supplying a simple in-room television and continental break­ fast to operating a casino and accommodating a convention. These factors affect the number and type of lodging manag­ ers employed at each property. However, the one person who oversees all lodging operations at a property is usually called a general manager. At larger hotels with several departments and multiple layers of management, one general manager and multiple assistant managers coordinate the activities of separate departments. (See related sections elsewhere in the Handbook on supervisors and managers of housekeeping and janitorial workers, human resources, training, and labor relations man­ agers and specialists, financial managers, advertising, market­ ing, promotions, public relations and sales managers, and food service managers.) In smaller limited-service hotels—mainly those without food and beverage service—one lodging manager may direct all the activities of the property. Lodging managers have overall responsibility for the opera­ tion and profitability of the hotel. Depending on the hotel and the size of its staff, lodging managers may either perform or  68 Occupational Outlook Handbook  direct housekeeping, personnel, office administration, market­ ing and sales, purchasing, security, maintenance, oversight of recreation facilities, and other activities. They may hire and train staff, set schedules, and lend a hand when needed. Within guidelines established by the owners of the hotel or executives of the hotel chain, lodging managers set room rates, allocate funds to departments, approve expenditures, and en­ sure that standards for guest service, decor, housekeeping, food quality, and banquet operations are met. Increasingly, lodging managers are also responsible for ensuring that the informa­ tion technology that is common in today’s hotels is operational. Some lodging managers work in financial management, moni­ toring room sales and reservations, overseeing accounting and cash-flow matters at the hotel, projecting occupancy levels, and deciding which rooms to discount and when to offer rate spe­ cials. Front office managers, a category of lodging manager, coor­ dinate reservations and room assignments and train and direct the hotel’s front desk staff. They ensure that guests are treated courteously, complaints and problems are resolved, and re­ quests for special services are carried out. Any adjustments to bills often are referred to front office managers for resolu­ tion. Some lodging managers, called convention services man­ agers, coordinate the activities of various departments to ac­ commodate meetings, conventions, and special events. They meet with representatives of groups or organizations to plan the number of conference rooms to reserve, the configuration of the meeting space, and determine what other services the group will need, such as catering or banquets and audio, vi­ sual, or other electronic requirements. During the meeting or event, they resolve unexpected problems and monitor ac­ tivities to ensure that hotel operations conform to the group’s expectations. Lodging managers may work with hotel sales and marketing directors and public relations directors to manage and coordi­ nate the advertising and promotion of the hotel. They help de­ velop lodging and dining specials and coordinate special events, such as holiday or seasonal specials. They may direct their staff to purchase advertising and to market their property to organi­ zations or groups seeking a venue for conferences, conventions, business meetings, trade shows, and special events. Lodging managers who oversee the personnel functions of a hotel or serve as human resource directors ensure that all ac­ counting, payroll, and employee relations matters are handled in compliance with hotel policy and applicable laws. They also oversee hiring practices and standards and ensure that training and promotion programs reflect appropriate employee develop­ ment guidelines. Computers are used extensively by lodging managers and their assistants to keep track of guests’ bills, reservations, room assignments, meetings, and special events. In addition, com­ puters are used to order food, beverages, and supplies, as well as to prepare reports for hotel owners and top-level managers. Many hotels also provide extensive information technology ser­ vices for their guests. Managers work with computer special­ ists and other information technology specialists to ensure that  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Lodging managers ensure that standards for guest service are met. the hotel’s computer systems, Internet, and communications networks function properly. Work environment. Because hotels are open around the clock, night and weekend work is common. Many lodging managers work more than 40 hours per week and are often oncall, which means they may be called back to work at any time. In some hotels and resort properties where work is seasonal, managers may have other duties less related to guest services during the off season or they may find work in other hotels or occupations. The pressures of coordinating a wide range of activities, turning a profit for investors, and dealing with guests who are sometimes angry can be stressful. Managing conferences and working at the front desk during check-in and check-out times can be particularly hectic.  Training, Other Qualifications, and Advancement Management trainees for larger upscale hotel chains almost al­ ways need a bachelor’s or master’s degree, preferably in hos­ pitality or hotel management. If not coming directly from col­ lege, experience working at a hotel is generally required to get a position as a lodging manager. Education and training. Most large, full-service hotel chains usually hire people who have a bachelor’s degree in business, hotel, or hospitality management for management trainee posi­ tions; however, a liberal arts degree coupled with experience in the hospitality field may be sufficient. At other hotels, espe­ cially those with fewer services, employers look for applicants with an associate degree or certificate in hotel, restaurant, or hospitality management along with experience. Formal intern­ ships or part-time or summer work in a hotel are an asset. Most degree programs include work-study opportunities. Community colleges, junior colleges, and many universi­ ties offer certificate or degree programs in hotel, restaurant, or hospitality management leading to an associate, bachelor’s, or graduate degree. Technical institutes, vocational and trade schools, and other academic institutions also offer courses leading to formal recognition in hospitality management. More than 800 educational facilities across the United States provide academic training for would-be lodging managers.  Management, Business, and Financial Occupations 69  Projections data from the National Employment Matrix Occupational Title Lodging managers..................................................................................  soc  Code  Employment, 2006  11-9081  71,000  Projected employment, 2016 80,000  Change, 2006-16 Number Percent 12 8,700  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook. _______ _____________________________________________________________ _  Hotel management programs include instruction in hotel ad­ ministration, accounting, economics, marketing, housekeep­ ing, food service management and catering, and hotel mainte­ nance and engineering. Computer training also is an integral part of hotel management training due to the widespread use of computers in reservations, billing, and housekeeping man­ agement. Lodging managers also need to know how to gen­ erate and read profit-and-loss reports and other business and economic data. More than 450 high schools in 45 States offer the Lodging Management Program created by the Educational Institute of the American Hotel and Lodging Association. This 2-year pro­ gram offered to high school juniors and seniors teaches manage­ ment principles and leads to a professional certification called the “Certified Rooms Division Specialist.” Many colleges and universities grant participants in this program credit towards a postsecondary degree in hotel management. Hotel employees who do not have hospitality training or a college degree but who do demonstrate leadership potential and possess sufficient experience may be invited to participate in a management training program sponsored by the hotel or a hotel chain’s corporate parent. Those who already possess the people skills and service orientation needed to succeed in hotel management can usually train for technical expertise in areas such as computer use and accounting principles while on the job. Trainees usually begin as assistant managers and may ro­ tate assignments among the hotel’s departments to gain a wide range of experiences. Relocation to another property may be required to help round out the experience and to help a trainee grow into a more responsible management position in a larger or busier hotel. Other qualifications. Lodging managers must be able to get along with many different types of people, even in stressful sit­ uations. They must be able to solve problems quickly and con­ centrate on details. Initiative, self-discipline, effective commu­ nication skills, and the ability to organize and direct the work of others are essential for lodging managers. Managers must have a good knowledge of hotel operations, including safety and security measures, repair and maintenance, and personnel practices. Knowledge of hotel financing is essential to operate a hotel profitably. Certification and advancement. Large hotel chains may of­ fer better opportunities for advancement than small, indepen­ dently owned establishments, but relocation every several years often is necessary for advancement. Large chains have more extensive career ladder programs and offer managers the op­ portunity to transfer to another hotel in the chain or to a regional or central office. Career advancement can be accelerated by the completion of certification programs offered by various hotel and lodging associations. Certification usually requires a com­ bination of course work, examinations, and experience.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Employment Most lodging managers work in the traveler accommodation in­ dustry, including hotels and motels, although they can work for any business that provides room or shelter for people. Compa­ nies that manage hotels under contract also employ managers. Lodging managers held about 71,000 jobs in 2006. The majori­ ty of lodging managers—54 percent—were self-employed, pri­ marily as owners of small hotels and bed-and-breakfast inns.  Job Outlook Steady growth in travel will provide average job growth and very good job opportunities for lodging managers. However, those seeking jobs at hotels with the highest level of guest ser­ vices will face strong competition. Employment change. Employment of lodging managers is expected to grow 12 percent from 2006 to 2016, which is about as fast as the average for all occupations. Steady business trav­ el and increased domestic and foreign tourism will drive job growth. The many new hotels being planned or built will need lodging managers to run them. In 2007 alone, over 600 new ho­ tels will open. Many of these will be located in suburbs where population and business activity are growing fastest. Most of these new hotels, however, will offer limited services and will not have large staffs or need many managers, somewhat mod­ erating job growth. Some lodging places also do not require a manager to be available 24 hours a day; instead front desk clerks assume some managerial duties at night. Still, there are expected to be a significant number of full-service hotels built, including resort, casino, and luxury hotels, which should gener­ ate many additional job openings for experienced managers and management trainees. Job prospects. In addition to job openings from employment growth, additional job openings are expected to occur as ex­ perienced managers leave the labor force or transfer to other occupations, in part because of the long hours and stressful working conditions. Job opportunities are expected to be good for people with good customer service skills and experience in the food service or hospitality industries. People with a college degree in hotel or hospitality management are expected to have the best opportunities at upscale and luxury hotels.  Earnings Median annual earnings of lodging managers were $42,320 in May 2006. The middle 50 percent earned between $31,870 and $58,380. The lowest 10 percent earned less than $25,120 and the highest 10 percent earned more than $82,510. Median an­ nual earnings for lodging managers in traveler accommodations were $41,880. Salaries of lodging managers vary greatly according to their responsibilities, location, and the segment of the hotel industry in which they work. Managers may earn bonuses of up to 25  70 Occupational Outlook Handbook  percent of their basic salary in some hotels and also may be furnished with meals, parking, laundry, and other services. In addition to providing typical benefits, some hotels offer profit­ sharing plans and educational assistance to their employees.  Related Occupations Other workers who organize and direct a business focused on customer service include food service managers, gaming man­ agers, sales worker supervisors, and property, real estate, and community association managers.  Sources of Additional Information For information on careers and scholarships in hotel manage­ ment, contact: y American Hotel and Lodging Association, 1201 New York Ave. NW., Suite 600, Washington, DC 20005. Internet: http://www.ahla.com Information on careers in the lodging industry and 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. Internet: http://www.ei-ahla.org For information on educational programs in hotel and restau­ rant management, including correspondence courses, write to: > International Council on Hotel, Restaurant, and Institutional Education, 2810 North Parham Rd., Suite 230, Richmond, VA 23294. Internet: http://www.chrie.org  Medical and Health Services Managers (0*NET 11-9111.00)  Significant Points  •  Job opportunities will be good, especially for appli­ cants with work experience in health care and strong business and management skills. • A master’s degree is the standard credential, although a bachelor’s degree is adequate for some entry-level positions. • Medical and health services managers typically work long hours and may be called at all hours to deal with problems. Nature of the Work Health care is a business and, like every business, it needs good management to keep it running smoothly. Medical and health services managers, also referred to as health care executives or health care administrators, plan, direct, coordinate, and super­ vise the delivery of health care. These workers are either spe­ cialists in charge of a specific clinical department or generalists who manage an entire facility or system. The structure and financing of health care are changing rap­ idly. Future medical and health services managers must be pre­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  pared to deal with the integration of health care delivery systems, technological innovations, an increasingly complex regulatory environment, restructuring of work, and an increased focus on preventive care. They will be called on to improve efficiency in health care facilities and the quality of the care provided. Large facilities usually have several assistant administrators who aid the top administrator and handle daily decisions. As­ sistant administrators direct activities in clinical areas such as nursing, surgery, therapy, medical records, or health informa­ tion. In smaller facilities, top administrators handle more of the details of daily operations. For example, many nursing home administrators manage personnel, finances, facility operations, and admissions while also providing resident care. Clinical managers have training or experience in a specific clinical area and, accordingly, have more specific responsi­ bilities than do generalists. For example, directors of physical therapy are experienced physical therapists, and most health in­ formation 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 quality; develop reports and budgets; and coordinate ac­ tivities with other managers. Health information managers are responsible for the main­ tenance and security of all patient records. Recent regulations enacted by the Federal Government require that all health care providers maintain electronic patient records and that these records be secure. As a result, health information managers must keep up with current computer and software technology and with legislative requirements. In addition, as patient data become more frequently used for quality management and in medical research, health information managers ensure that da­ tabases are complete, accurate, and available only to authorized personnel. In group medical practices, managers work closely with phy­ sicians. Whereas an office manager might handle business af­ fairs 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 coordi­ nate day-to-day business. A small group of 10 to 15 physicians might employ 1 ad­ ministrator to oversee personnel matters, billing and collection, budgeting, planning, equipment outlays, and patient flow. A large practice of 40 to 50 physicians might have a chief ad­ ministrator and several assistants, each responsible for different areas. Medical and health services managers in managed care set­ tings perform functions similar to those of their counterparts in large group practices, except that they could have larger staffs to manage. In addition, they might do more community outreach and preventive care than do managers of a group practice. Some medical and health services managers oversee the ac­ tivities of a number of facilities in health systems. Such sys­ tems might contain both inpatient and outpatient facilities and offer a wide range of patient services. Work environment. Some managers work in comfortable, private offices; others share space with other staff. Most medi-  Management, Business, and Financial Occupations 71  Medical and health services managers may deal with person­ nel, billing and collection, budget, and procurement issues. cal and health services managers work long hours. Nursing care facilities and hospitals operate around the clock; administrators and managers be called at all hours to deal with problems. They also travel to attend meetings or inspect satellite facilities.  Training, Other Qualifications, and Advancement A master’s degree in one of a number of fields is the standard credential for most generalist positions as a medical or health care manager. A bachelor’s degree is sometimes adequate for entry-level positions in smaller facilities and departments. In physicians’ offices and some other facilities, on-the-job experi­ ence may substitute for formal education. Education and training. Medical and health services man­ agers must be familiar with management principles and prac­ tices. A master’s degree in health services 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 positions in smaller facilities, at the departmental level within health care organizations, and in health information management. Physi­ cians’ offices and some other facilities hire those with on-thejob experience instead of formal education. 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 2007, 72 schools had accred­ ited programs leading to the master’s degree in health services administration, according to the Commission on Accreditation of Healthcare Management Education. For people seeking to become heads of clinical departments, a degree in the appropriate field and work experience may be sufficient early in their career. However, a master’s degree in health services administration or a related field might be re­ quired to advance. For example, nursing service administrators usually are chosen from among supervisory registered nurses with administrative abilities and graduate degrees in nursing or health services administration. Health information managers require a bachelor’s degree from an accredited program. In 2007, there were 42 accredited bachelor’s degree programs and 3 master’s degree programs in   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  health information management according to the Commission on Accreditation for Health Informatics and Information Man­ agement Education. Some graduate programs seek students with undergraduate degrees in business or health administration; however, many graduate programs prefer students with a liberal arts or health profession background. Candidates with previous work expe­ rience in health care also may have an advantage. Competi­ tion for entry into these programs 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 experience and coursework in areas such as hospital organization and management, mar­ keting, accounting and budgeting, human resources adminis­ tration, strategic planning, law and ethics, biostatistics or epi­ demiology, health economics, and health information systems. Some programs allow students to specialize in one type of facil­ ity—hospitals, nursing care facilities, mental health facilities, or medical groups. Other programs encourage a generalist ap­ proach to health administration education. Licensure. All States and the District of Columbia require nursing care facility administrators to have a bachelor’s degree, pass a licensing examination, complete a State-approved train­ ing program, and pursue continuing education. Some States also require licenses for administrators in assisted living fa­ cilities. A license is not required in other areas of medical and health services management. Certification and other qualifications. Medical and health services managers often are responsible for facilities and equip­ ment worth millions of dollars, and for hundreds of employees. To make effective decisions, they need to be open to different opinions and good at analyzing contradictory information. 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, flexibil­ ity, and communication skills are essential because medical and health services managers spend most of their time interacting with others. Health information managers who have a bachelor’s degree or postbaccalaureate from an approved program and who pass an exam can earn certification as a Registered Health Informa­ tion Administrator from the American Health Information Man­ agement Association. Advancement. Medical and health services managers ad­ vance by moving into more responsible and higher paying posi­ tions, such as assistant or associate administrator, department head, or chief executive officer, or by moving to larger facili­ ties. Some experienced managers also may become consultants or professors of health care management. New graduates with master’s degrees in health services ad­ ministration may start as department managers or as superviso­ ry staff. The level of the starting position varies with the experi­ ence of the applicant and the size of the organization. Hospitals and other health facilities offer postgraduate residencies and fellowships, which usually are staff positions. Graduates from master’s degree programs also take jobs in large medical group practices, clinics, mental health facilities, nursing care corpora­ tions, and consulting firms.  72 Occupational Outlook Handbook  Projections data from the National Employment Matrix Occupational Title  soc  Employment,  Code Medical and health services managers.................................................  11-9111  2006 262,000  Projected employment,  2016 305,000  Change,  2006-16 Number  Percent  43,000  16  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  Graduates with bachelor’s degrees in health administration usually begin as administrative assistants or assistant depart­ ment heads in larger hospitals. They also may begin as de­ partment heads or assistant administrators in small hospitals or nursing care facilities.  Employment Medical and health services managers held about 262,000 jobs in 2006. About 37 percent worked in hospitals, and another 22 percent worked in offices of physicians or in nursing and resi­ dential care facilities. Most of the remainder worked in home health care services, Federal Government health care facilities, outpatient care centers, insurance carriers, and community care facilities for the elderly.  Job Outlook Employment of medical and health services managers is ex­ pected to grow faster than average. Job opportunities should be good, especially for applicants with work experience in the health care field and strong business management skills. Employment change. Employment of medical and health services managers is expected to grow 16 percent from 2006 to 2016, faster than the average for all occupations. The health care industry will continue to expand and diversify, requiring managers to help ensure smooth business operations. Managers in all settings will be needed to improve quality and efficiency of health care while controlling costs, as insur­ ance companies and Medicare demand higher levels of ac­ countability. Managers also will be needed to oversee the com­ puterization of patient records and to ensure their security as required by law. Additional demand for managers will stem from the need to recruit workers and increase employee reten­ tion, to comply with changing regulations, to implement new technology, and to help improve the health of their communities by emphasizing preventive care. Hospitals will continue to employ the most medical and health services managers over the 2006-16 decade. However, the number of new jobs created is expected to increase at a slower rate in hospitals than in many other industries because of the growing use of clinics and other outpatient care sites. Despite relatively slow employment growth, a large number of new jobs will be created because of the industry’s large size. Employment will grow fastest in practitioners’ offices and in home health care agencies. Many services previously provided in hospitals will continue to shift to these settings, especially as medical technologies improve. Demand in medical group prac­ tice management will grow as medical group practices become larger and more complex. Medical and health services managers also will be employed by health care management companies that provide manage­ ment services to hospitals and other organizations and to spe­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  cific departments such as emergency, information management systems, managed care contract negotiations, and physician recruiting. Job prospects. Job opportunities will be good, especially for applicants with work experience in the health care field and strong business management skills should have the best oppor­ tunities. Medical and health services managers with experience in large hospital facilities will enjoy an advantage in the job market, as hospitals become larger and more complex. Com­ petition for jobs at the highest management levels will be keen because of the high pay and prestige.  Earnings Median annual earnings of wage and salary medical and health services managers were $73,340 in May 2006. The middle 50 percent earned between $57,240 and $94,780. The lowest 10 percent earned less than $45,050, and the highest 10 percent earned more than $127,830. Median annual earnings in the in­ dustries employing the largest numbers of medical and health services managers in May 2006 were: General medical and surgical hospitals...............................$78,660 Outpatient care centers.......................................................... 67,920 Offices of physicians............................................................. 67,540 Nursing care facilities........................................................... 66,730 Home health care services.................................................... 66,720 Earnings of medical and health services managers vary by type and size of the facility and by level of responsibility. For example, the Medical Group Management Association reported that, in 2006, median salaries for administrators were $72,875 in practices with 6 or fewer physicians, $95,766 in practices with 7 to 25 physicians, and $132,955 in practices with 26 or more physicians. According to a survey by the Professional Association of Health Care Office Management, 2006 average total compensa­ tion for office managers in specialty physicians’ practices was $70,474 in gastroenterology, $70,599 in dermatology, $76,392 in cardiology, $67,317 in ophthalmology, $67,222 in obstetrics and gynecology, $77,621 in orthopedics, $62,125 in pediatrics, $66,853 in internal medicine, and $60,040 in family practice.  Related Occupations Medical and health services managers have training or experi­ ence in both health and management. Other occupations re­ quiring knowledge of both fields are insurance underwriters and social and community service managers.  Sources of Additional Information Information about undergraduate and graduate academic pro­ grams in this field is available from:  Management, Business, and Financial Occupations 73  > Association of University Programs in Health Administration, 2000 North 14th St., Suite 780, Arlington, VA 22201. Internet: http://www.aupha.org For a list of accredited graduate programs in medical and health services administration, contact: y Commission on Accreditation of Healthcare Management Education, 2000 North 14th St., Suite 780, Arlington, VA 2220. Internet: http://www.cahme.org For information about career opportunities in health care management, contact: > American College of Healthcare Executives, One N. Franklin St., Suite 1700, Chicago, IL 60606. Internet: http://www.healthmanagementcareers.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 practices and ambulatory care management, contact: > Medical Group Management Association, 104 Inverness Terrace East, Englewood, CO 80112. Internet: http://www.mgma.org For information about medical and health care office manag­ ers, contact: y Professional Association of Health Care Office Management, 461 East Ten Mile Rd., Pensacola, FL 32534. For information about career opportunities in health informa­ tion management, contact: y American Health Information Management Association, 233 N. Michigan Ave., Suite 2150, Chicago, IL 60601. Internet: http://www.ahima.org  Property, Real Estate, and Community Association Managers (0*NET 11-9141.00)  Significant Points •  Opportunities should be best for those with college degrees in business administration, real estate, or re­ lated fields, and with professional designations.  •  Particularly good opportunities are expected for those with experience managing housing for older people or with experience running a health unit.  •  More than half of property, real estate, and commu­ nity association managers are self-employed.  Nature of the Work To businesses and investors, properly managed real estate is a source of income and profits; to homeowners, well-managed property is a way to preserve and enhance resale values and in­ crease comfort. Property, real estate, and community association managers maintain and increase the value of real estate invest­ ments by handling the logistics of running a property. Property   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and real estate managers oversee the performance of incomeproducing commercial or residential properties and ensure that real estate investments achieve their expected revenues. Com­ munity association managers manage the common property and services of condominiums, cooperatives, and planned communi­ ties through their homeowner or community associations. When owners of apartments, office buildings, or retail or indus­ trial properties lack the time or expertise needed for the day-to­ day management of their real estate investments or homeowner associations, they often hire a property or real estate manager or a community association manager. The manager is employed either directly 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 mainte­ nance bills are paid on time. In community associations, hom­ eowners pay no rent and pay their own real estate taxes and mort­ gages, but community association managers collect association dues. Some property managers, usually senior-level property managers, supervise the preparation of financial statements and periodically report to the owners on the status of the property, oc­ cupancy rates, expiration dates of leases, 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 several contractors and advise the owners on 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 equipment for the property, and make arrangements with special­ ists for repairs that cannot be handled by regular property main­ tenance staff. In addition to fulfilling these duties, property managers must understand and comply with relevant legislation, such as the Americans with Disabilities Act, the Federal Fair Housing Amendment Act, and local fair housing laws. They must ensure that their renting and advertising practices are not discriminatory, and that the property itself complies with all of the local, State, and Federal regulations and building codes. Onsite property managers are responsible for the day-to-day operations of a single property, such as an office building, a shop­ ping center, a community association, or an apartment complex. To ensure that the property is safe and properly maintained, on­ site managers routinely inspect the grounds, facilities, and equip­ ment to determine whether repairs or maintenance are needed. In handling requests for repairs or trying to resolve complaints, they meet not only with current residents, 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 im­ portant duties of onsite managers include keeping accurate, upto-date records of income and expenditures from property opera­ tions and submitting regular expense reports to the senior-level property manager or owners. Property managers who do not work onsite act as a liaison between the onsite manager and the owner. They also market  74 Occupational Outlook Handbook  vacant space to prospective tenants by hiring a leasing agent, ad­ vertising, or other means, and they establish rental rates in accor­ dance with prevailing local economic conditions. Some property and real estate managers, often called real es­ tate asset managers, act as the property owners’ agent and advis­ er for the property. They plan and direct the purchase, develop­ ment, 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. In deciding to acquire property, real estate asset managers con­ sider several factors, such as property values, taxes, zoning, pop­ ulation 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 review their company’s real estate holdings periodically and identify properties that are no longer financially profitable. They then negotiate the sale of, or terminate the lease on, such properties. Community association managers, on the other hand, do work that more closely parallels that of onsite property managers. They collect monthly assessments, prepare financial statements and budgets, negotiate with contractors, and help to resolve com­ plaints. In other respects, however, the work of association man­ agers differs from that of other residential property and real es­ tate managers because they interact with homeowners and other residents on a daily basis. Usually hired by a 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  i  MlftsJi/Miii Property, real estate, and community association managers handle the logistics of running a property.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  to their properties, to make sure that they comply with commu­ nity guidelines. Work environment. The offices of most property, real estate, and community association managers are clean, modem, 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 offic­ es, visiting the building engineer, showing apartments, checking on the janitorial and maintenance staff, or investigating problems reported by tenants. Property and real estate managers frequently visit the properties they oversee, sometimes daily when contrac­ tors 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 searching for properties to ac­ quire. Property, real estate, and community association managers of­ ten must attend evening meetings with residents, property own­ ers, community association boards of directors, or civic groups. Not surprisingly, many managers put in long workweeks, espe­ cially before financial and tax reports are due and before board and annual meetings. Some apartment managers are required to live in the apartment complexes where they work, so that they are available to handle emergencies, 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 weekends to show apart­ ments to prospective residents.  Training, Other Qualifications, and Advancement Employers increasingly are hiring college graduates with a bach­ elor’s or master’s degree in business administration, accounting, finance, or real estate, even if they don’t have much practical ex­ perience. Education and training. Most employers prefer to hire col­ lege graduates for property management positions. In fact, em­ ployers increasingly are hiring inexperienced college graduates with a bachelor’s or master’s degree in business administration, accounting, finance, real estate, or public administration for these positions. Those with degrees in the liberal arts also may qualify, especially if they have relevant coursework. Many people enter­ ing jobs such as assistant property manager have onsite manage­ ment experience. Licensure. Managers of public housing subsidized by the Federal Government are required to be certified, but many prop­ erty, real estate, and community association managers who work with all types of property choose to earn a professional designa­ tion voluntarily, because it represents formal recognition of their achievements and affords status in the occupation. Real estate managers who buy or sell property are required to be licensed by the State in which they practice. In a few States, property as­ sociation managers must be licensed. Other qualifications. Previous employment as a real estate sales agent may be an asset to onsite managers, because it pro­ vides experience that is useful in showing apartments or office space. In the past, those with backgrounds in building mainte­ nance have advanced to onsite manager positions on the strength of their knowledge of building mechanical systems, but this path is becoming less common as employers place greater emphasis  Management, Business, and Financial Occupations 75  on administrative, financial, and communication abilities for managerial jobs. People most commonly enter real estate asset manager jobs by transferring from positions as property managers or real estate brokers. Real estate asset managers must be good negotiators, adept at persuading and working with people, and good at ana­ lyzing data in order 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. Good speaking, writing, computer, and financial skills, as well as an ability to deal tactfully with people, are essential in all areas of property management. Certification and advancement. Many people begin property management careers as assistants. Assistants work closely with a property manager and learn how to prepare budgets, analyze insurance coverage and risk options, market property to prospec­ tive tenants, and collect overdue rent payments. In time, many assistants advance to property manager positions. Some people start as onsite managers of apartment buildings, office complexes, or community associations. As they acquire experience, often working under the direction of a more expe­ rienced property manager, they may advance to positions of greater responsibility. Those who excel as onsite managers often transfer to assistant offsite property manager positions, in which they can acquire experience handling a broad range of property management responsibilities. The responsibilities and compensation of property, real estate, and community association managers increase as these workers manage more and larger properties. Most property managers, often called portfolio managers, are responsible for several prop­ erties at a time. As their careers advance, they gradually are en­ trusted with larger properties that are more complex to manage. Many specialize in the management of one type of property, such as apartments, office buildings, condominiums, cooperatives, ho­ meowners’ associations, or retail properties. Managers who excel at marketing properties to tenants might 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 property management firms. Many employers encourage attendance at short-term formal training programs conducted by various professional and trade associations that are 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 maintenance of building mechanical sys­ tems, the enhancement of property values, insurance and risk management, personnel management, business and real estate law, community association risks and liabilities, tenant relations,  communications, accounting and financial concepts, and reserve funding. Managers also participate in these programs to prepare themselves for positions of greater responsibility in property management. The completion of these programs, plus related job experience and a satisfactory score on a written examination can lead to certification, or the formal award of a professional designation, by the sponsoring association. (Some organizations offering certifications are listed as sources of additional informa­ tion at the end of this statement.) Some associations also require their members to adhere to a specific code of ethics.  Employment Property, real estate, and community association managers held about 329,000 jobs in 2006. About 36 percent worked for real estate agents and brokers, lessors of real estate, or activities re­ lated to real estate. Others worked for real estate development companies, government agencies that manage public buildings, and corporations with extensive holdings of commercial proper­ ties. More than half of property, real estate, and community as­ sociation managers are self-employed.  Job Outlook Faster than average employment growth is expected. Opportuni­ ties should be best for jobseekers with a college degree in busi­ ness administration, real estate, or a related field, and for those who attain a professional designation. Particularly good oppor­ tunities are expected for those with experience managing housing for older people or with experience running a health unit. Employment change. Employment of property, real estate, and community association managers is projected to increase by 15 percent during the 2006-16 decade, faster than the average for all occupations. 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 stock of apartments, houses, and offices also should require more property managers. Developments of new homes are increasingly being organized with community or homeowner associations that provide community services and oversee jointly owned common areas requiring professional management. To help properties become more profitable or to enhance the resale values of homes, more commercial and resi­ dential property owners are expected to place their investments in the hands of professional managers. Moreover, the number of older people will grow during the 2006-16 projection period, in­ creasing the need for specialized housing, such as assisted-living facilities and retirement communities that require management. Job prospects. In addition to openings from job growth, a num­ ber of openings are expected as managers transfer to other occu­ pations or leave the labor force. Opportunities should be best for jobseekers with a college degree in business administration, real estate, or a related field, and for those who attain a professional  Projections data from the National Employment Matrix Change, Projected 2006-16 employment, 2016 Number Percent 50.000 15 11-9141 329,000 379,000 ProDertv, real estate, and community association managers.......... ... NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ Occupational Title  tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  soc Code  Employment, 2006  76 Occupational Outlook Handbook  designation. Because of the expected increase in assisted-living and retirement communities, particularly good opportunities are expected for those with experience managing housing for older people or with experience running a health unit.  Purchasing Managers, Buyers, and Purchasing Agents (0*NET 11-3061.00, 13-1021.00, 13-1022.00, 13-1023.00)  Earnings Median annual earnings of salaried property, real estate, and community association managers were $43,070 in May 2006. The middle 50 percent earned between $28,700 and $64,200 a year. The lowest 10 percent earned less than $20,140, and the highest 10 percent earned more than $95,170 a year. Median an­ nual earnings of salaried property, real estate, and community as­ sociation managers in the largest industries that employed them in May 2006 were: Land subdivision..................................................................$78,040 Local government...................................................................55,210 Activities related to real estate............................................... 40,590 Offices of real estate agentsand brokers..................................40,500 Lessors of real estate..............................................................37,480 Many resident apartment managers and onsite association managers receive the use of an apartment as part of their com­ pensation package. Managers often are reimbursed for the use of their personal vehicles, and managers employed in land de­ velopment 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 business­ es. Workers who perform similar functions in other fields include administrative services managers, education administrators, food service managers, lodging managers, medical and health services managers, real estate brokers and sales agents, and urban and re­ gional planners.  Sources of Additional Information For information about education and careers in property manage­ ment, as well as information about professional designation and certification programs in both residential and commercial prop­ erty management, contact: y Institute of Real Estate Management, 430 N. Michigan Ave., Chicago, IL 60611. Internet: http://www.irem.org For information on careers and certification programs in com­ mercial property management, contact: y Building Owners and Managers Institute, 1521 Ritchie Hwy., Arnold, MD 21012. Internet: http://www.bomi.org For information on careers and professional designation and certification programs in residential property management and community association management, contact: y Community Associations Institute, 225 Reinekers Ln., Suite 300, Alexandria, VA 22314. Internet: http://www.caionline.org y National Board of Certification for Community Association Managers, 225 Reinekers Ln., Suite 310, Alexandria, VA 22314. Internet: http://www.nbccam.org  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Significant Points  •  About 43 percent are employed in wholesale trade or manufacturing establishments. • Some firms prefer to promote existing employees to these positions, while others recruit and train college graduates. • Employment is projected to have little or no job growth. • Opportunities should be best for those with a college degree. Nature of the Work Purchasing managers, buyers, and purchasing agents shop for a living. They buy the goods and services the company or institu­ tion needs to either resell to customers or for the establishment’s own use. Wholesale and retail buyers purchase goods, such as clothing or electronics, for resale. Purchasing agents buy goods and services for use by their own company or organization; they might buy raw materials for manufacturing or office supplies, for example. Purchasing agents and buyers offarm products pur­ chase goods such as grain, Christmas trees, and tobacco for fur­ ther processing or resale. Purchasing professionals consider price, quality, availability, reliability, and technical support when choosing suppliers and merchandise. They try to get the best deal for their company, meaning the highest quality goods and services at the lowest pos­ sible cost to their companies. In order to accomplish this suc­ cessfully, 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 af­ fecting both the supply of, and demand for, needed products and materials. To be effective, purchasing specialists must have a working technical knowledge of the goods or services to be pur­ chased. In large industrial organizations, a distinction often is drawn between the work of a buyer or purchasing agent and that of a purchasing manager. Purchasing agents 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. Pur­ chasing agents usually track market conditions, price trends, and futures markets. Purchasing managers usually handle the more complex or critical purchases and may supervise a group of pur­ chasing agents handling other goods and services. Whether a person is titled purchasing manager, buyer, or purchasing agent depends somewhat on specific industry and employer practices. But purchasing managers often have a much larger range of du­ ties than purchasing agents. They may actively seek new tech­ nologies and suppliers. They may create and oversee systems  Management, Business, and Financial Occupations 77  that allow individuals within their organizations to buy their own supplies, lowering the cost of each transaction. Purchasing specialists employed by government agencies or manufacturing firms usually are called purchasing directors, managers, or agents; or contract specialists. These workers ac­ quire materials, parts, machines, supplies, services, and other in­ puts to the production of a final product. Purchasing agents and managers obtain items ranging from raw materials, fabricated parts, machinery, and office supplies to construction services and airline tickets. Some purchasing managers specialize in negoti­ ating and supervising supply contracts and are called contract or supply managers. Often, purchasing specialists in government place solicitations for services and accept bids and offers through the Internet. Gov­ ernment purchasing agents and managers must follow strict laws and regulations in their work, in order to avoid any appearance of impropriety. Purchasing specialists who buy finished goods for resale are employed by wholesale and retail establishments, where they commonly are known as buyers or merchandise managers. Wholesale and retail buyers are an integral part of a complex system of distribution and merchandising that caters to the vast array of consumer needs and desires. Wholesale buyers purchase goods directly from manufacturers or from other wholesale firms for resale to retail firms, commercial establishments, institutions, and other organizations. In retail firms, buyers purchase goods from wholesale firms or directly from manufacturers for resale to the public. Buyers largely determine which products their establishment will sell. Therefore, it is essential that they have the ability to pre­ dict what will appeal to consumers. They must constantly stay informed of the latest trends, because failure to do so could jeop­ ardize profits and the reputation of their company. They keep track of inventories and sales levels through computer software that is linked to the store’s cash registers. Buyers also follow ads in newspapers and other media to check competitors’ sales activities, and they watch general economic conditions to antici­ pate 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 re­ tailer, requires buyers to work closely with vendors to develop and obtain the desired product. The downsizing and consolida­ tion of buying departments increases the demands placed on buy­ ers 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 pur­ chase items accordingly. Merchandise managers may work with advertising personnel to create an ad campaign. For example, they may determine in which media the advertisement will be placed—newspapers, direct mail, television, or some combina­ tion of all three. In addition, merchandise managers often visit   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  the selling floor to ensure that goods are properly displayed. Buy­ ers stay in constant contact with store and department managers to find out what products are selling well and which items the customers are demanding to be added to the product line. Often, assistant buyers are responsible for placing orders and checking shipments. Evaluating suppliers is one of the most critical functions of a purchasing manager, buyer, or purchasing agent. Many firms now run on a lean manufacturing schedule and use just-in-time inventories so any delays in the supply chain can shut down production and cost the firm its customers and reputation. Pur­ chasing professionals use many resources to find out all they can about potential suppliers. The Internet has become an effective tool in searching catalogs, trade journals, and industry and com­ pany publications, and directories. Purchasing professionals will attend meetings, trade shows, and conferences to learn of new industry trends and make contacts with suppliers. Purchasing managers, agents, and buyers will usually interview prospective suppliers and visit their plants and distribution centers to asses their capabilities. It is important to make certain that the sup­ plier is capable of delivering the desired goods or services on time, in the correct quantities without sacrificing quality. Once all of the necessary information on suppliers is gathered, orders are placed and contracts are awarded to those suppliers who meet the purchaser’s needs. Most of the transaction process is now automated using electronic purchasing systems that link the sup­ plier and firms together through the Internet. Purchasing professionals can gain instant access to specifica­ tions 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. These systems permit faster selection, cus­ tomization, and ordering of products, and they allow buyers to concentrate on the qualitative and analytical aspects of the job. Long-term contracts are an important strategy of purchasing pro­ fessionals because it allows purchasers to consolidate their supply bases around fewer suppliers. In today’s global economy, pur­ chasing managers, buyers, and purchasing agents should expect to deal with foreign suppliers which may require travel to other countries and to be familiar with other cultures and languages. Changing business practices have altered the traditional roles of purchasing or supply management specialists in many indus­ tries. For example, manufacturing companies increasingly in­ volve workers in this occupation at most stages of product devel­ opment because of their ability to forecast a part’s or material’s cost, availability, and suitability for its intended purpose. Fur­ thermore, potential problems with the supply of materials may be avoided by consulting the purchasing department in the early stages of product design. Purchasing specialists often work closely with other employ­ ees in their own organization when deciding on purchases, an ar­ rangement sometimes called “team buying.” For example, before submitting an order, they may discuss the design of custom-made products with company design engineers, talk about problems in­ volving the quality of purchased goods with quality assurance engineers and production supervisors, or mention shipment prob­ lems to managers in the receiving department.  78 Occupational Outlook Handbook  Hi'  ■ : ■:  Purchasing managers, buyers, and purchasing agents work to get the best merchandise at the lowest cost.  Work environment. 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 week­ end work also is common before holiday and back-to-school sea­ sons 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 pressure. Because wholesale and retail stores are so competi­ tive, 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 manufacturing companies and large retailers, as well as buyers of high fashion, may travel outside the United States.  Training, Other Qualifications, and Advancement Qualified people may begin as trainees, purchasing clerks, expe­ diters, junior buyers, or assistant buyers. They often need con­ tinuing education, certification, or a bachelor’s degree to advance. 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 graduates as assistant buyers. Most employers use a combination of methods. Education and training. Educational requirements tend to vary with the size of the organization. Large stores and distribu­ tors prefer applicants who have completed a bachelor’s degree program with a business emphasis. Many manufacturing firms put an even greater emphasis on formal training, preferring ap­ plicants with a bachelor’s or master’s degree in engineering, 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 employer’s business. Training periods vary in length, with most lasting 1 to 5 years. In wholesale and retail establishments, most trainees begin by selling merchandise, su­ pervising sales workers, checking invoices on material received,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and keeping track of stock. As they progress, trainees are given increased buying-related responsibilities. In manufacturing, new purchasing employees often are en­ rolled in company training programs and spend a considerable amount of time learning about their firm’s operations and pur­ chasing practices. They work with experienced purchasers to learn about commodities, prices, suppliers, and markets. In addi­ tion, they may be assigned to the production planning department to learn about the material requirements system and the inventory system the company uses to keep production and replenishment functions working smoothly. Other qualifications. Purchasing managers, buyers, and purchasing agents must know how to use word processing and spreadsheet software and the Internet. Other important qualities include the ability to analyze technical data in suppliers’ propos­ als; good communication, negotiation, and mathematical skills; knowledge of supply-chain management; and the ability to per­ form financial analyses. People 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 resource­ fulness, 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 im­ portant. 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 manager. Others may go to work in sales for a manufacturer or wholesaler. Certification and advancement. An experienced purchasing agent or buyer may become an assistant purchasing manager in charge of a group of purchasing professionals before advancing to purchasing manager, supply manager, 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 advancement. Many purchasing managers, buyers, and purchas­ ing agents participate in seminars offered by professional societ­ ies and take college courses in supply management. Professional certification is becoming increasingly important, especially for those just entering the occupation. There are several recognized credentials for purchasing agents and purchasing managers. The Certified Purchasing Manager (C.P.M.) designation is conferred by the Institute for Supply Management. In 2008, this certification will be replaced by the Certified Professional in Supply Management (CPSM) credential, covering the wider scope of duties now performed by purchas­ ing professionals. The Certified Purchasing Professional (CPP) and Certified Professional Purchasing Manager (CPPM) desig­ nations are conferred by the American Purchasing Society. The Certified Supply Chain Professional credential is conferred by APICS, the Association for Operations Management. For work­ ers in Federal, State, and local government, the National Institute  Management, Business, and Financial Occupations 79  of Governmental Purchasing offers the designations of Certified Professional Public Buyer (CPPB) and Certified Public Purchas­ ing Officer (CPPO). Most of these certifications are awarded only after work-related experience and education requirements are met and written or oral exams are successfully completed.  Employment Purchasing managers, buyers, and purchasing agents held about 529,000 jobs in 2006. About 43 percent worked in the whole­ sale trade and manufacturing industries and another 11 percent worked in retail trade. The remainder worked mostly in service establishments, such as management of companies and enter­ prises, 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....................................................287,000 Wholesale and retail buyers, except farm products..............157,000 Purchasing managers..............................................................70,000 Purchasing agents and buyers, farm products......................... 16,000  Job Outlook Employment of purchasing managers, buyers, and purchasing agents is expected to have little or no job growth through the year 2016. Generally, opportunities will be best for individuals with a bachelor’s degree. In government and in large companies, op­ portunities will be best for those with a master’s degree. Employment change. No change in overall employment of purchasing managers, buyers, and purchasing agents is expected during the 2006-16 decade. Demand for purchasing workers will be limited by improving software, which has eliminated much of the paperwork involved in ordering and procuring supplies, and also by the growing num­ ber of purchases being made electronically through the Internet and electronic data interchange (EDI). Demand will also be lim­ ited by offshoring of routine purchasing actions to other countries and by consolidation of purchasing departments, which makes purchasing agents more efficient. Demand for purchasing workers in the manufacturing sector will be less than demand in the services sector, as the overall service sector grows more rapidly than the manufacturing sec­ tor. Also, many purchasing agents are now charged with procur­ ing services that traditionally had been done in-house, such as  computer and IT (information technology) support in addition to traditionally contracted services such as advertising. Employment of purchasing managers is expected to grow more slowly than average. The use of the Internet to conduct electronic commerce has made information easier to obtain, thus increas­ ing the productivity of purchasing managers. The Internet also allows both large and small companies to bid on contracts. Ex­ clusive supply contracts and long-term contracting have allowed companies to negotiate with fewer suppliers less frequently. Employment of wholesale and retail buyers, except farm prod­ ucts, is expected to have little or no change in employment. In the retail industry, mergers and acquisitions have caused buying departments to consolidate. In addition, larger retail stores are eliminating local buying departments and centralizing them at their headquarters. Employment of purchasing agents, except wholesale, retail, and farm products, is expected to have little or no change in em­ ployment, primarily because of the increased globalization of the U.S. economy. As more materials and supplies come from abroad, firms have begun to outsource more of their purchasing duties to foreign purchasing agents who are located closer to the foreign suppliers of goods and materials they will need. This trend is expected to continue, but it will likely be limited to rou­ tine transactions with complex and critical purchases still being handled in-house. Finally, employment of purchasing agents and buyers, farm products, is projected to decline 9 percent, as overall growth in agricultural industries and retailers in the grocery-related indus­ tries consolidate. Job prospects. Persons who have a bachelor’s degree in busi­ ness should have the best chance of obtaining a buyer position in wholesale or retail trade or within government. A bachelor’s de­ gree, combined with industry experience and knowledge of a tech­ nical 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 administration for top-level purchasing positions.  Earnings Median annual earnings of purchasing managers were $81,570 in May 2006. The middle 50 percent earned between $60,890 and $ 105,780 a year. The lowest 10 percent earned less than $46,540, and the highest 10 percent earned more than $132,040 a year. Median annual earnings for purchasing agents and buyers of farm products were $46,770 in May 2006. The middle 50 per­ cent earned between $34,770 and $64,100 a year. The lowest  Projections data from the National Employment Matrix Occupational Title Purchasing managers, buyers, and purchasing agents...................... Purchasing managers........................................................................ Purchasing agents and buyers, farm products................................ Wholesale and retail buyers, except farm products...................... Purchasing agents, except wholesale, retail, and farm products...  soc Code — 11-3061 13-1021 13-1022 13-1023  Employment, 2006 529,000 70,000 16,000 157,000 287,000  Projected employment, 2016 531,000 72,000 15,000 156,000 288,000  Change, 2006-16 Number Percent 1,200 0 2,400 3 -1,400 -9 -200 0 400 0  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  80 Occupational Outlook Handbook  10 percent earned less than $26,520, and the highest 10 percent earned more than $88,650 a year. Median annual earnings for wholesale and retail buyers, ex­ cept farm products, were $44,640 in May 2006. The middle 50 percent earned between $33,640 and $60,590 a year. The lowest 10 percent earned less than $26,270, and the highest 10 percent earned more than $83,080 a year. Median annual earnings in the industries employing the largest numbers of wholesale and retail buyers, except farm products, were:  y National Institute of Governmental Purchasing, Inc., 151 Spring St., Suite 300, Herndon, VA 20170-5223. Internet: http://www.nigp.org  Top Executives (0*NET 11-1011.00, 11-1021.00)  Significant Points Management of companies and enterprises.......................... $54,390 Grocery and related product wholesalers................................46,080 Wholesale electronic markets and agents and brokers...........45,020 Building material and supplies dealers...................................40,380 Grocery stores........................................................................ 34,210 Median annual earnings for purchasing agents, except whole­ sale, retail, and farm products, were $50,730 in May 2006. The middle 50 percent earned between $39,000 and $66,730 a year. The lowest 10 percent earned less than $31,350, and the highest 10 percent earned more than $83,900 a year. Median annual earn­ ings in the industries employing the largest numbers of purchas­ ing agents, except wholesale, retail, and farm products, were: Federal executive branch...................................................... $68,500 Aerospace product and parts manufacturing.......................... 59,390 Navigational, measuring, electromedical, and control instruments manufacturing............................... 55,620 Management of companies and enterprises............................54,820 Local government...................................................................48,170 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 addi­ tion to receiving standard benefits, retail buyers often earn cash bonuses based on their performance and may receive discounts on merchandise bought from their employer.  Related Occupations Like purchasing managers, buyers, and purchasing agents, pro­ curement clerks work to obtain materials and goods for busi­ nesses. Workers in other occupations who need a knowledge of marketing and the ability to assess consumer demand include those in advertising, marketing, promotions, public relations, and 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: > American Purchasing Society, North Island Center, Suite 203, 8 East Galena Blvd., Aurora, IL 60506. > Association for Operations Management, APICS, 5301 Shawnee Rd„ Alexandria, VA 22312-2317. Internet: http://www.apics.org y Institute for Supply Management, P.O. Box 22160, Tempe, AZ 85285-2160. Internet: http://www.ism.ws   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  •  •  Keen competition is expected because the prestige and high pay of these jobs attract a large number of applicants. 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 execu­ tives vary as widely as the nature of their responsibili­ ties.  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 officer, board chair, president, vice president, school superintendent, county administrator, or tax commis­ sioner—all formulate policies and direct the operations of busi­ nesses and corporations, public sector organizations, nonprofit institutions, 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 ex­ ecutives to ensure that operations are conducted in accordance with these policies. The chief executive officer of a corpora­ tion retains overall accountability; however, a chief operating officer may be delegated several responsibilities, including the authority to oversee executives who direct the activities of vari­ ous departments and implement 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 re­ ports to the board. In addition to being responsible for the operational suc­ cess of a company, top executives also are increasingly being held accountable for the accuracy of their financial reporting, particularly among publicly traded companies. For example, recently enacted legislation contains provisions for corporate governance, internal control, and financial reporting. The nature of the responsibilities of other high-level execu­ tives depends on the size of the organization. In small organiza­ tions, such as independent retail stores or small manufacturers, a partner, owner, or general manager often is responsible for purchasing, hiring, training, quality control, and day-to-day su­ pervisory duties. In large organizations, the duties of executives  Management, Business, and Financial Occupations 81  -M,  While top executives are among the highest paid workers, long hours and intense pressure to succeed are common. are highly specialized. Some managers, for instance, are re­ sponsible for the overall performance of one aspect of the orga­ nization, such as manufacturing, marketing, sales, purchasing, finance, personnel, training, administrative services, computer and information systems, property management, transportation, or legal services. (Some of these and other management oc­ cupations are discussed elsewhere in this section of the Hand­ book.) Chief financial officers direct the organization’s financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm’s expansion, and deal with mergers and acquisitions. Chief information officers are responsible for the overall technological direction of their organizations. They are in­ creasingly involved in the strategic business plan of a firm as part of the executive team. To perform effectively, they also need knowledge of administrative procedures, such as budget­ ing, hiring, and supervision. These managers propose budgets for projects and programs and make decisions on staff training and equipment purchases. They hire and assign computer spe­ cialists, information technology workers, and support person­ nel 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 information of­ ficers also provide organizations with the vision to master infor­ mation technology as a competitive tool. Chief executives have overall responsibility for the operation of their organizations. Working with executive staff, they set goals and arrange programs to attain these goals. Executives also appoint department heads, who manage the employees who carry out programs. Chief executives also 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 impor­ tant functions, such as meeting with staff and board members to determine the level of support for proposed programs. Chief executive officers in government often nominate citizens to boards and commissions, encourage business investment, and promote economic development in their communities. To do   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  all of these varied tasks effectively, chief executives rely on a staff of highly skilled personnel. Executives who control small companies, however, often do this work by themselves. General and operations managers plan, direct, or coordinate the operations of companies or public and private sector orga­ nizations. Their duties include formulating policies, managing daily operations, and planning the use of materials and human resources, but are too diverse and general in nature to be clas­ sified in any one area of management or administration, such as personnel, purchasing, or administrative services. In some organizations, the duties of general and operations managers may overlap the duties of chief executive officers. Work environment. Top executives typically have spacious offices and numerous support staff. General managers in large firms or nonprofit organizations usually have comfortable of­ fices close to those of the top executives to whom they report. Long hours, including evenings and weekends, are standard for most top executives and general managers, although their schedules may be flexible. Substantial travel between international, national, regional, and local offices to monitor operations and meet with custom­ ers, staff, and other executives often is required of managers and executives. Many managers and executives also attend meetings and conferences sponsored by various associations. The conferences provide an opportunity to meet with prospec­ tive donors, customers, contractors, or government officials and allow managers and executives to keep abreast of technological and managerial innovations. In large organizations, job transfers between local offices or subsidiaries 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 better service, or attaining fundraising and charitable goals. Executives in charge of poorly performing or­ ganizations or departments usually find their jobs in jeopardy.  Training, Other Qualifications, and Advancement The formal education and experience required by top execu­ tives vary as widely as their responsibilities do, but many of these workers have at least a bachelor’s degree and considerable experience. Education and training. Many top executives have a bache­ lor’s or graduate degree in business administration, liberal arts, or a more specialized discipline. The specific degree required often depends on the type of organization for which they work. College presidents, for example, typically have a doctorate in the field in which they originally taught, and school superin­ tendents often have a master’s degree in education administra­ tion. (For information on lower-level managers in educational services, see the Handbook statement on education administra­ tors.) A brokerage office manager needs a strong background in securities and finance, and department store executives gener­ ally have extensive experience in retail trade. Some top executives in the public sector have a background in public administration or liberal arts. Others might have a more specific background related to their jobs. For example, a health commissioner might have a graduate degree in health services administration or business administration. (For information  82 Occupational Outlook Handbook  on lower-level managers in health services, see the Handbook statement on medical and health services managers.) Many top executive positions are filled from within the organi­ zation by promoting experienced, lower-level managers when an opening occurs. In industries such as retail trade or transporta­ tion, for instance, it is possible for individuals without a college degree to work their way up within the company and become managers. However, many companies prefer that their top exec­ utives have extensive managerial experience and, therefore, hire individuals who have been managers in other organizations. Other qualifications. Top executives must have highly de­ veloped personal skills. An analytical mind able to quickly as­ sess large amounts of information and data is very important, as is the ability to consider and evaluate the relationships between numerous factors. Top executives also must be able to commu­ nicate clearly and persuasively. For managers to succeed they need other important qualities as well, including leadership, self-confidence, motivation, decisiveness, flexibility, sound business judgment, and determination. Certification and advancement. Advancement may be ac­ celerated by participation in company training programs that impart a broader knowledge of company policy and operations. Managers also can help their careers by becoming familiar with the latest developments in management techniques at national or local training programs sponsored by various industry and trade associations. To facilitate their promotion to an even higher level, managers who have experience in a particular field, such as accounting or engineering, may attend executive develop­ ment programs geared towards their background. Participation in conferences and seminars can expand knowl­ edge of national and international issues influencing the organi­ zation and can help the participants develop a network of useful contacts. For example, the Institute of Certified Professional Managers offers the Certified Manager (CM) credential, which is earned by completing training and passing an exam. The certification is held by individuals at all experience levels, from those seeking to enter management to those who are already se­ nior executives. Certification is not necessary for advancement but may be helpful in developing and demonstrating valuable management skills. General managers may advance to a top executive position, 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 of­ ficer 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 consultants.  Employment Top executives held about 2.2 million jobs in 2006. Employ­ ment by detailed occupation was distributed as follows: General and operations managers....................................1,720,000 Chief executives............................................................... 402,000 Top executives are found in every industry, but service-pro­ viding industries, including government, employed over 3 out of 4 top executives.  Job Outlook Employment of top executives is projected to have little or no change. Keen competition for jobs is expected because of the prestige and high pay of these positions. Employment change. Employment of top executives—in­ cluding chief executives, general and operations managers, and legislators—is expected to grow 2 percent from 2006 to 2016. Because top managers are essential to the success of any orga­ nization, their jobs are unlikely to be automated or offshored to other countries. Some top executive jobs may be elimi­ nated through industry consolidation, as upper management is streamlined after mergers and acquisitions. Employment of top executives is not as sensitive to growth in business as employ­ ment in many other occupations. As a business grows, the num­ ber of top executives changes little relative to the total number of employees. Therefore, top executives are not expected to experience as much employment growth as workers in the oc­ cupations they oversee. Projected employment growth of top executives varies by in­ dustry. For example, employment growth is expected to grow faster than average in professional, scientific, and technical ser­ vices and about as fast as the average in administrative and sup­ port services. However, employment is projected to decline in some manufacturing industries. Job prospects. Keen competition is expected for top execu­ tive positions because the prestige and high pay attract a large number of qualified applicants. Because this is a large occu­ pation, 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, a pattern that tends to limit the number of job openings for new entrants to the occupation. Experienced managers whose accomplishments reflect strong leadership qualities and the ability to improve the efficiency or competitive position of an organization will have the best op­ portunities. In an increasingly global economy, experience in international economics, marketing, information systems, and knowledge of several languages also may be beneficial.  Projections data from the National Employment Matrix Occupational Title Top executives................................................................. Chief executives.......................................................... .............................. General and operations managers............................. ..............................  soc  Employment,  Code  2006  11-1011 11-1021  2,123,000 402,000 1,720,000  Projected employment,  2016 2,157,000 410,000 1,746,000  Change,  2006-16 Number  Percent  34,000 8,200 26,000  2 2 2  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational informa­  tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 83  Earnings  Related Occupations  Top executives are among the highest paid workers in the U.S. economy. However, salary levels vary substantially depending on 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 wage and salary general and op­ erations managers in May 2006 were $85,230. The middle 50 percent earned between $58,230 and $128,580. Because the specific responsibilities of general and operations manag­ ers vary significantly within industries, earnings also tend to vary considerably. Median annual earnings in the industries employing the largest numbers of general and operations man­  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 lowerlevel managers also are involved in these activities. Many other management occupations have similar responsibilities; however, they are concentrated in specific industries or are re­ sponsible for a specific department within an organization. A few examples are administrative services managers; education administrators; financial managers; food service managers; and advertising, marketing, promotions, public relations, and sales managers. Legislators oversee their staffs and help set public policies in Federal, State, and local governments.  agers were:  Sources of Additional Information  Architectural, engineering, and related services...............$113,280 Management of companies and enterprises........................ 105,130 Building equipment contractors............................................ 85,270 Depository credit intermediation.......................................... 85,050 Local government................................................................. 74,950 Median annual earnings of wage and salary chief executives in May 2006 were greater than $145,600; some chief execu­ tives of large companies earn hundreds of thousands to over a million dollars annually, although salaries vary substantially by type and level of responsibilities and by industry. In addition to salaries, total compensation often includes stock options and other performance bonuses. The use of ex­ ecutive dining rooms and company aircraft and cars, expense allowances, and company-paid insurance premiums and physi­ cal examinations also are among benefits commonly enjoyed by top executives in private industry. A number of chief executive officers also are provided with company-paid club member­ ships and other amenities.  For more information on top executives, including educational programs and job listings, contact: y American Management Association, 1601 Broadway, 6th Floor, New York, NY 10019. Internet: http://www.amanet.org y National Management Association, 2210 Arbor Blvd., Dayton, OH 45439. Internet: http://www.nmal.org For more information on executive financial management ca­ reers, contact: y Financial Executives International, 200 Campus Dr., P.O. Box 674, Florham Park, NJ 07932. Internet: http://www.financialexecutives.org y Financial Management Association International, College of Business Administration, University of South Florida, 4202 East Fowler Ave., BSN 3331, Tampa, FL 33620. Internet: http://www.fma.org For information about management skills development, in­ cluding the Certified Manager (CM) credential, contact: y Institute for Certified Professional Managers, 1598 S. Main St., Harrisonburg, VA 22801. Internet: http://www.icpm.biz  Business and Financial Operations Occupations Nature of the Work  Accountants and Auditors (0*NET 13-2011.00, 13-2011.01, 13-2011.02)  Significant Points  •  Most jobs require at least a bachelor’s degree in ac­ counting or a related field. • Opportunities will be best for jobseekers who have a master’s degree, obtain certification or licensure or who are proficient in the use of accounting and audit­ ing computer software. • Faster-than-average growth of accountant and audi­ tor jobs will result from an increase in the number of businesses, changing financial laws and regulations, and greater scrutiny of company finances.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Accountants and auditors help to ensure that the Nation’s firms are ran efficiently, its public records kept accurately, and its taxes paid properly and on time. They analyze and communi­ cate financial information for various entities such as compa­ nies, individual clients, and government. Beyond carrying out the fundamental tasks of the occupation—preparing, analyzing, and verifying financial documents in order to provide informa­ tion to clients—many accountants also offer budget analysis, financial and investment planning, information technology con­ sulting, and limited legal services. Specific job duties vary widely among the four major fields of accounting and auditing: public, management, government accounting, and internal auditing. Public accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients, which may be corporations, governments, nonprofit organizations, or individuals. For example, some public accountants concentrate  84 Occupational Outlook Handbook  mm2,  Many accountants produce extensive financial reports for a company’s recordkeeping. on tax matters, such as advising companies about the tax ad­ vantages and disadvantages of certain business decisions and preparing individual income tax returns. Others offer advice in areas such as compensation or employee health care benefits, the design of accounting and data-processing systems, and the selection of controls to safeguard assets. Still others audit cli­ ents’ financial statements and inform investors and authorities that the statements have been correctly prepared and reported. These accountants are also referred to as external auditors. Public accountants, many of whom are Certified Public Ac­ countants (CPAs), generally have their own businesses or work for public accounting firms. Some public accountants specialize in forensic account­ ing—investigating and interpreting white-collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and possibly criminal financial transactions, including money laundering by organized crimi­ nals. Forensic accountants combine their knowledge of ac­ counting and finance with law and investigative techniques to determine whether an activity is illegal. Many forensic accoun­ tants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses dur­ ing trials. In response to recent accounting scandals, new Federal legis­ lation restricts the nonauditing services that public accountants can provide to clients. If an accounting firm audits a client’s financial statements, that same firm cannot provide advice on human resources, technology, investment banking, or legal mat­ ters, although accountants may still advise on tax issues. Ac­ countants may also advise other clients in these areas and may provide advice within their own firm. Management accountants—also called cost, managerial, in­ dustrial, corporate, or private accountants—record and analyze the financial information of the companies for which they work. Among their other responsibilities are budgeting, performance evaluation, cost management, and asset management. Usually, management accountants are part of executive teams involved in strategic planning or the development of new products. They analyze and interpret the financial information that corporate executives need in order to make sound business decisions.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  They also prepare financial reports for other groups, including stockholders, creditors, regulatory agencies, and tax authorities. Within accounting departments, management accountants 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 subject to government regulations or taxation. Ac­ countants employed by Federal, State, and local governments ensure that revenues are received and expenditures are made in accordance with laws and regulations. Those employed by the Federal Government may work as Internal Revenue Service agents or in financial management, financial institution exami­ nation, or budget analysis and administration. Internal auditors verify the effectiveness of their organiza­ tion’s internal controls and check for mismanagement, waste, or fraud. They examine and evaluate their firms’ financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are ad­ equate. They also review company operations, evaluating their efficiency, effectiveness, and compliance with corporate poli­ cies and government regulations. Because computer systems commonly automate transactions and make information readily available, internal auditors may also help management evaluate the effectiveness of their controls based on real-time data, rather than personal observation. They may recommend and review controls for their organization’s computer systems, to ensure their reliability and integrity of the data. Internal auditors may also have specialty titles, such as infor­ mation technology auditors, environmental auditors, and com­ pliance auditors. Technology is rapidly changing the nature of the work of most accountants and auditors. With the aid of special software packages, accountants summarize transactions in the standard formats of financial records and organize data in special formats employed in financial analysis. These accounting packages greatly reduce the tedious work associated with data manage­ ment 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 begin­ ning to perform more technical duties, such as implementing, controlling, and auditing computer systems and networks and developing a business’s technology plans. Accountants also act as personal advisors. They not only provide clients with accounting and tax help, but also help them develop personal budgets, manage assets and investments, plan for retirement, and recognize and reduce their exposure to risks. This role is in response to clients’ demands for a single trust­ worthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these ser­ vices to clients whose financial statements they also prepare. (See financial analysts and personal financial advisors else­ where in the Handbook.)  Management, Business, and Financial Occupations 85  Work environment. Most accountants and auditors work in a typical office setting. Some may be able to do part of their work at home. Accountants and auditors employed by public account­ ing firms, government agencies, and organizations with multiple locations may travel frequently to perform audits at branches, cli­ ents’ places of business, or government facilities. Most accountants and auditors usually 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.  Training, Other Qualifications, and Advancement Most accountants and auditors need at least a bachelor’s degree in business, accounting, or a related field. Many accountants and auditors choose to obtain certification to help advance their ca­ reers, such as becoming a Certified Public Accountant (CPA). Education and training. Most accountant and auditor posi­ tions require at least a bachelor’s degree in accounting or a re­ lated field. Beginning accounting and auditing positions in the Federal Government, for example, usually require 4 years of col­ lege (including 24 semester hours in accounting or auditing) or an equivalent combination of education and experience. Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a con­ centration in accounting. Some universities and colleges are now offering programs to prepare students to work in growing spe­ cialty professions such as internal auditing,. Many professional associations offer continuing professional education courses, conferences, and seminars. Some graduates of junior colleges or business or correspon­ dence schools, as well as bookkeepers and accounting clerks who meet the education and experience requirements set by their em­ ployers, can obtain junior accounting positions and advance to accountant positions by demonstrating their accounting skills on the job. Most beginning accountants and auditors may work under su­ pervision or closely with an experienced accountant or auditor before gaining more independence and responsibility. Licensure and certification. Any accountant filing a report with the Securities and Exchange Commission (SEC) is required by law to be a Certified Public Accountant (CPA). This may in­ clude senior level accountants working for or on behalf of public companies that are registered with the SEC. CPAs are licensed by their State Board of Accountancy. Any accountant who passes a national exam and meets the other requirements of the State where they practice can become a CPA. The vast majority of States require CPA candidates to be college graduates, but a few States will substitute a number of years of public accounting ex­ perience for a college degree. As of 2007, 42 States and the District of Columbia required CPA candidates to complete 150 semester hours of college coursework—an additional 30 hours beyond the usual 4-year bachelor’s degree. Several other States have adopted similar legislation that will become effective before 2009. Colorado, Delaware, New Hampshire, and Vermont are the only States that do not have any immediate plans to require the 150 semester hours. In response to this trend, many schools have altered their curricula accord­ ingly, with most programs offering master’s degrees as part of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  the 150 hours. Prospective accounting majors should carefully research accounting curricula and the requirements of any States in which they hope to become licensed. All States use the four-part Uniform CPA Examination pre­ pared by the American Institute of Certified Public Accountants (AICPA). The CPA examination is rigorous, and less than onehalf of those who take it each year pass every part they attempt on the first try. Candidates are not required to pass all four parts at once, but most States require candidates to pass all four sections within 18 months of passing their first section. The CPA exam is now computerized and is offered 2 months out of every quar­ ter at various testing centers throughout the United States. Most States also require applicants for a CPA certificate to have some accounting experience; however requirements vary by State or jurisdiction. Nearly all States require CPAs and other public accountants to complete a certain number of hours of continuing professional education before their licenses can be renewed. The professional associations representing accountants sponsor numerous courses, seminars, group study programs, and other forms of continuing education. Other qualifications. Previous experience in accounting or auditing can help an applicant get a job. Many colleges offer students the opportunity to gain experience through summer or part-time internship programs conducted by public accounting or business firms. In addition, as many business processes are now automated, practical knowledge of computers and their ap­ plications is a great asset for jobseekers in the accounting and auditing fields. People planning a career in accounting and auditing should have an aptitude for mathematics and be able to analyze, com­ pare, and interpret facts and figures quickly. They must be able to clearly communicate the results of their work to clients and managers both verbally and in writing. Accountants and audi­ tors must be good at working with people, business systems, and computers. At a minimum, accountants and auditors should be familiar with basic accounting and computer software packages. Because financial decisions are made on the basis of their state­ ments and services, accountants and auditors should have high standards of integrity. Certification and advancement. Professional recognition through certification, or a designation other than the CPA, pro­ vides a distinct advantage in the job market. Certification can at­ test to professional competence in a specialized field of account­ ing and auditing. Accountants and auditors can seek credentials from a wide variety of professional societies. The Institute of Management Accountants confers the Certi­ fied Management Accountant (CMA) designation upon appli­ cants who complete a bachelor’s degree or who attain a minimum score or higher on specified graduate school entrance exams. Ap­ plicants must have worked at least 2 years in management ac­ counting, pass a four-part examination, agree to meet continuing education requirements, and comply with standards of profes­ sional conduct. The exam covers areas such as financial state­ ment analysis, working-capital policy, capital structure, valuation issues, and risk management. The Institute of Internal Auditors offers the Certified Internal Auditor (CIA) designation to graduates from accredited colleges  86 Occupational Outlook Handbook  and universities who have worked for 2 years as internal auditors and have passed a four-part examination. The IIA also offers the designations of Certified in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), and Certi­ fied Financial Services Auditor (CFSA) to those who pass the exams and meet educational and experience requirements. The ISACA, formerly known as the Information Systems Au­ dit and Control Association, confers the Certified Information Systems Auditor (CISA) designation upon candidates who pass an examination and have 5 years of experience auditing infor­ mation systems. Information systems experience, financial or operational auditing experience, or related college credit hours can be substituted for up to 2 years information systems auditing, control or security experience. The Accreditation Council for Accountancy and Taxation, a satellite organization of the National Society of Accountants, con­ fers four designations: Accredited Business Accountant (ABA), Accredited Tax Advisor (ATA), Accredited Tax Preparer (ATP), and Elder Care Specialist (ECS)—on accountants specializing in tax preparation for small and medium-sized businesses. Candi­ dates for the ABA must pass an exam; candidates for the other designations must complete the required coursework and in some cases pass an exam. The Association of Certified Fraud Examiners offers the Cer­ tified Fraud Examiner (CFE) designation for forensic or public accountants involved in fraud prevention, detection, deterrence, and investigation. To obtain the designation, individuals must have a bachelor’s degree, 2 years of relevant experience, pass a four-part examination, and abide by a code of professional ethics. Related work experience may be substituted for the educational requirement. The Association of Government Accountants grants the Cer­ tified Government Financial Manager (CGFM) designation for accountants, auditors, and other government financial workers at the Federal, State, and local levels. Candidates must have a minimum of a bachelor’s degree, 24 hours of study in financial management, 2 years of experience in government, and passing scores on a series of three exams. The exams cover topics in gov­ ernmental environment; governmental accounting, financial re­ porting, and budgeting; and financial management and control. For those accountants with their CPA, the AICPA offers the option to receive any or all of the Accredited in Business Valu­ ation (ABV), Certified Information Technology Professional (CITP), or Personal Financial Specialist (PFS) designations. CPA’s with these designations demonstrate a level of expertise in these areas in which accountants practice ever more frequently. The business valuation designation requires a written exam and the completion of a minimum of 10 business valuation projects that demonstrate a candidate’s experience and competence. The technology designation requires the achievement of a set number of points awarded for business technology experience and educa­  tion. Candidates for the personal financial specialist designation also must achieve a certain level of points based on experience and education, pass a written exam, and submit references. Many senior corporation executives have a background in ac­ counting, internal auditing, or finance. Beginning public accoun­ tants often advance to positions with more responsibility 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 executive posi­ tions 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 account­ ing manager, chief cost accountant, budget director, or manager of internal auditing. Some become controllers, treasurers, finan­ cial vice presidents, chief financial officers, or corporation presi­ dents. Public accountants, management accountants, and internal auditors usually have much occupational mobility. Practitioners often shift into management accounting or internal auditing from public accounting, or between internal auditing and management accounting. It is less common for accountants and auditors to move from either management accounting or internal auditing into public accounting. Additionally, because they learn about and review the internal controls of various business units within a company, internal auditors often gain the experience needed to become upper-level managers.  Employment Accountants and auditors held about 1.3 million jobs in 2006. They worked throughout private industry and government, but 21 percent of wage and salary accountants worked for accounting, tax preparation, bookkeeping, and payroll services firms. Ap­ proximately 10 percent of accountants or auditors was self-em­ ployed. Many management accountants, internal auditors, or govern­ ment accountants and auditors are not CPAs; however, a large number are licensed CPAs. Most accountants and auditors work in urban areas, where public accounting firms and central or re­ gional 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 as accountants for private industry or government. (See teachers—postsecond­ ary elsewhere in the Handbook.) Job Outlook Strong growth of accountants and auditor jobs over the 2006-16 decade is expected to result from stricter accounting and audit­ ing regulations, along with an expanding economy. The best job  Projections data from the National Employment Matrix Occupational Title Accountants and auditors.. ...............................................................................................  soc  Employment,  Code  2006  13-2011  1,274,000  Projected employment,  2016 1,500,000  Change,  2006-16 Number  Percent  226,000  18  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 87  prospects will be for accountants and auditors who have a college degree or any certification, but especially a CPA. Employment change. Employment of accountants and audi­ tors is expected to grow by 18 percent between 2006 and 2016, which is faster than the average for all occupations. This oc­ cupation will have a very large number of new jobs arise, almost 226,000 over the projections decade. An increase in the number of businesses, changing financial laws, and corporate governance regulations, and increased accountability for protecting an orga­ nization’s stakeholders will drive growth. 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 informa­ tion reviewed by accountants and auditors regarding costs, ex­ penditures, taxes, and internal controls will expand as well. The globalization of business also has led to more demand for ac­ counting expertise and services related to international trade and accounting rules and international mergers and acquisitions. An increased need for accountants and auditors also will arise from changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial events. As a result of accounting scandals at several large cor­ porations, Congress passed the Sarbanes-Oxley Act of 2002 in an effort to curb corporate accounting fraud. This legislation requires public companies to maintain well-functioning internal controls to ensure the accuracy and reliability of their financial reporting. It also holds the company’s chief executive personally responsible for falsely reporting financial information. These changes are expected to lead to increased scrutiny of company finances and accounting procedures and should create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly. Management ac­ countants and internal auditors increasingly will also be needed to discover and eliminate fraud before audits, and ensure that important processes and procedures are documented accurately and thoroughly. Also, efforts to make government agencies more efficient and accountable will increase demand for government accountants. Increased focus on and numbers of financial crimes such as embezzlement, bribery, and securities fraud will increase the de­ mand for forensic accountants to detect illegal financial activity by individuals, companies, and organized crime rings. Computer technology has made these crimes easier to commit, and they are on the rise. At the same time, the development of new computer software and electronic surveillance technology has made track­ ing down financial criminals easier, thus increasing the ease, and likelihood of, discovery. As success rates of investigations grow, demand for forensic accountants will increase. The changing role of accountants and auditors also will spur job growth, although this will be slower than in the past because of changes in the law. Federal legislation now prohibits accoun­ tants from providing many types of management and consulting services to clients whose books they audit. However, accoun­ tants will still be able to advise clients that are not publicly traded companies and those they do not audit. Also, the increasing popularity of tax preparation firms and computer software will shift accountants away from tax prepara­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tion. As computer programs continue to simplify some account­ ing-related tasks, clerical staff will increasingly handle many routine calculations. Job prospects. Overall, job opportunities for accountants and auditors should be favorable. Those who earn a CPA should have excellent job prospects. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs de­ clined. However, enrollment is again growing as more students have become attracted to the profession by the attention from the accounting scandals. In the aftermath of the accounting scandals, professional cer­ tification is even more important to ensure that accountants’ credentials and knowledge of ethics are sound. Regardless of specialty, accountants and auditors 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 administration with a concentration in accounting also will have an advantage. Individuals who are proficient in accounting and auditing com­ puter software or have expertise in specialized areas—such as in­ ternational business, specific industries, or current legislation— may have an advantage in getting some accounting and auditing jobs. In addition, employers increasingly seek applicants with strong interpersonal and communication skills. Many accoun­ tants work on teams with others who have different backgrounds, so they must be able to communicate accounting and financial information clearly and concisely. Regardless of qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms. In addition to openings from job growth, the need to replace ac­ countants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation.  Earnings Median annual earnings of wage and salary accountants and au­ ditors were $54,630 in May 2006. The middle half of the occu­ pation earned between $42,520 and $71,960. The top 10 percent earned more than $94,050, and the bottom 10 percent earned less than $34,470. Median annual earnings in the industries employ­ ing the largest numbers of accountants and auditors were as fol­ lows: Accounting, tax preparation, bookkeeping, and payroll services............................................................$57,020 Management of companies and enterprises........................... 55,560 Local government.................................................................. 50,120 Depository credit intermediation...........................................49,380 State government................................................................... 47,200 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 $46,718 a year in 2006; master’s degree candidates in accounting were offered $49,277 initially. According to a 2007 salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, general accountants and internal auditors with up to 1 year of experience earned between $31,500 and $48,250 a year. Those with 1 to 3 years of experience earned between  88 Occupational Outlook Handbook  $36,000 and $60,000. Senior accountants and auditors earned between $43,250 and $79,250, managers between $51,250 and $101,500, and directors of accounting and internal auditing be­ tween $68,000 and $208,000. The variation in salaries reflects differences in size of firm, location, level of education, and pro­ fessional credentials. In the Federal Government, the starting annual salary for junior accountants and auditors was $28,862 in 2007. Candidates who had a superior academic record might start at $35,752, while ap­ plicants with a master’s degree or 2 years of professional experi­ ence usually began at $43,731. Beginning salaries were slightly higher in selected geographic areas where the prevailing local pay level was higher. Accountants employed by the Federal Govern­ ment in nonsupervisory, supervisory, and managerial positions averaged $78,665 a year in 2007; auditors averaged $83,322. Wage and salary accountants and auditors usually receive stan­ dard benefits, including health and medical insurance, life insur­ ance, a 401 (k) plan, and paid annual leave. High-level senior accountants may receive additional benefits, such as the use of a company car and an expense account.  Related Occupations Accountants and auditors design internal control systems and analyze financial data. Others for whom training in account­ ing is valuable include budget analysts; cost estimators; loan officers; financial analysts and personal financial advisors; tax examiners, collectors, and revenue agents; bill and account col­ lectors; and bookkeeping, accounting, and auditing clerks. Re­ cently, some accountants have assumed the role of management analysts and are involved in the design, implementation, and maintenance of accounting software systems. Others who per­ form similar work include computer programmers, computer software engineers, and computer support specialists and sys­ tems administrators.  Sources of Additional Information Information on accredited accounting programs can be obtained from: V AACSB International—Association to Advance Collegiate Schools of Business, 777 South Harbour Island Blvd., Suite 750, Tampa FL 33602-5730. 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 y The Uniform CPA Examination, 1211 Avenue of the Americas, New York, NY 10036. Internet: http://www.cpa-exam.org Information on CPA licensure requirements by State may be obtained from: y 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: y Institute of Management Accountants, 10 Paragon Dr., Montvale, NJ 07645-1718. Internet: http://www.imanet.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Information on the Accredited in Accountancy, Accredited Business Accountant, Accredited Tax Advisor, or Accredited Tax Preparer designation may be obtained from: y Accreditation Council for Accountancy and Taxation, 1010 North Fairfax St., Alexandria, VA 22314.-1574. Internet: http ://www.acatcredentials.org Information on the Certified Fraud Examiner designation may be obtained from: y Association of Certified Fraud Examiners, 716 West Ave, Austin, TX 78701-2727. Information on careers in internal auditing and the CIA desig­ nation may be obtained from: y 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: y ISACA, 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: y Association of Government Accountants, 2208 Mount Vernon Ave., Alexandria, VA 22301. Internet: http://www.agacgfm.org Information on obtaining positions as an accountant or audi­ tor with the Federal Government is available from the Office of Personnel Management through USAJOBS, the Federal Govern­ ment’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result. For advice on how to find and apply for Fed­ eral jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Government,” online at: http://www.bls.gov/opub/ooq/2004/summer/art01.pdf  Appraisers and Assessors of Real Estate (0*NET 13-2021.00, 13-2021.01, 13-2021.02)  Significant Points  •  Appraisers and assessors must meet licensing and/or certification requirements which vary by State, but generally include specific training requirements, a period of work as a trainee, and passing one or more examinations.  •  More than 3 out of 10 were self-employed; salaried assessors worked primarily in local government, while salaried appraisers worked mainly for real es­ tate firms.  •  Employment is expected to grow faster than average.  Management, Business, and Financial Occupations 89  Nature of the Work Appraisers and assessors of real estate estimate the value of property for a variety of purposes, such as to assess property tax, to confirm adequate collateral for mortgages, to confirm or help set a good sales price, to settle an estate, or to aid in a divorce settlement. They often specialize in appraising or as­ sessing a certain type of real estate such as residential buildings or commercial properties. However, they may be called on to estimate the value of any type of real estate, ranging from farm­ land to a major shopping center. Assessors estimate the value of all properties in a locality for property tax purposes whereas appraisers appraise properties one at a time. Valuations of all types of real property are conducted using similar methods, regardless of the type of property or who em­ ploys the appraiser or assessor. Appraisers and assessors work in localities they are familiar with so they have knowledge of any environmental or other concerns that may affect the value of a property. They note any unique characteristics of the prop­ erty and of the surrounding area, such as a specific architectural style of a building or a major highway located next to the parcel. They also take into account additional aspects of a property like the condition of the foundation and roof of a building or any renovations that may have been done. Additionally, they may take pictures to document a certain room or feature, in addition to taking pictures of the exterior of the building. After visit­ ing the property, the appraiser or assessor will estimate the fair value of the property by taking into consideration such things as comparable home sales, lease records, location, view, previous appraisals, and income potential. Appraisers and assessors write detailed reports on their re­ search and observations, stating the value of the parcel as well as the precise reasoning and methodology of how they arrived at the estimate. Writing reports has become faster and easier through the use of laptop computers, allowing them to access data and write at least some of the report on-site. Another com­ puter technology that has affected this occupation is the elec­ tronic map of a given jurisdiction and its respective property distribution. Appraisers and assessors use these maps to obtain an accurate perspective on the property and buildings surround­ ing a property. Digital photos also are commonly used to docu­ ment the physical appearance of a building or land at the time of appraisal. Appraisers have independent clients and focus solely on valu­ ing one property at a time. They primarily work on a client-toclient basis, and make appraisals for a variety of reasons. Real property appraisers often specialize by the type of real estate they appraise, such as residential properties, golf courses, or strip malls. In general, commercial appraisers have the ability to appraise any real property but may specialize only in prop­ erty used for commercial purposes, such as stores or hotels. Residential appraisers focus on appraising homes or other resi­ dences and only value those that house 1 to 4 families. Other appraisers have a general practice and value any type of real property. Assessors predominately work for local governments and are responsible for valuing properties for property tax assessment purposes. Most senior assessors are appointed or elected to their position. Unlike appraisers, assessors often value entire  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  :::::  / /^ \  -  li uv.no 41  Appraisers and assessors of real estate may use photographs to help analyze a property. neighborhoods using mass appraisal techniques to value all the homes in a local neighborhood at one time. Although they do not usually focus on a single property they may assess a single property if the property owner challenges the assessment. They may use a computer-programmed automated valuation model specifically developed for their assigned jurisdictions. In most jurisdictions the entire community must be revalued annually or every few years. Depending on the size of the jurisdiction and the number of staff in an assessor’s office, an appraisal firm, often called a revaluation firm, may do much of the work of valuing the properties in the jurisdiction. These results are then officially certified by the assessor. When properties are reassessed, assessors issue notices of as­ sessments and taxes that each property owner must pay. Asses­ sors must be current on tax assessment procedures and must be able to defend the accuracy of their property assessments, either to the owner directly or at a public hearing, since assessors also are responsible for dealing with tax payers who want to contest their assigned property taxes. Assessors also keep a database of every parcel in their jurisdiction labeling the property owner, issued tax assessment, and size of the property, as well as prop­ erty maps of the jurisdiction that detail the property distribution of the jurisdiction. Work environment. Appraisers and assessors spend much of their time researching and writing reports. However, with the advancement of computers and other technologies, such as wireless Internet, time spent in the office has decreased as re­ search can now be done in less time or on-site or at home. Re­ cords that once required a visit to a courthouse or city hall often can be found online. This has especially affected self-employed appraisers, often called independent fee appraisers, who make their own office hours, allowing them to spend much more time on-site doing research and less time in their office. Time spent on-site versus in the office also depends on the specialty. For example, residential appraisers tend to spend less time on office work than commercial appraisers, who could spend up to sev­ eral weeks at one site analyzing documents and writing reports. Appraisers who work for private institutions generally spend most of their time inside the office, making on-site visits when necessary. Appraisers and assessors usually conduct on-site ap­ praisal work alone.  90 Occupational Outlook Handbook  Independent fee appraisers tend to work more than a standard 40 hour work week, in addition to working evenings and week­ ends writing reports. On-site visits usually occur during day­ light hours, and according to the client’s schedule. Assessors and privately employed appraisers, on the other hand, usually work a standard 40-hour work week. Occasionally they work an evening or Saturday, to speak with a concerned tax payer, for example. More than 10 percent of appraisers and assessors worked part time in 2006. Most independent fee appraisers’ offices are relatively small, consisting of either just themselves or a small staff. However, private institutions such as banks and mortgage broker offices may employ several appraisers in one office. The size of the office employing assessors depends on the size of the local gov­ ernment; in some States assessments are by counties whereas in other States assessments are made by municipalities or other local governments. Therefore a county assessor’s office prob­ ably would employ more assessors than a small town, which may only employ a single assessor.  Training, Other Qualifications, and Advancement The requirements to become a fully qualified appraiser or asses­ sor are complex and vary by State and, sometimes, by the value or type of property. In general, both appraisers and assessors must be licensed or certified requirements. Prospective apprais­ ers and assessors should check with their State to determine the specific requirements. Education and training. Currently, no formal degree re­ quirements exist to become an appraiser or assessor. However, starting in 2008 all appraisers and assessors who need a license will be required to have a bachelor’s degree or the equivalent in credit hours. Most practicing appraisers and assessors have at least a bachelor’s degree, sometimes in a related field such as economics, finance, or real estate. The specific training courses necessary, however, are not commonly available as part of most bachelor’s programs and must be taken separately, usually at community colleges or through appraisal- or assessor-related organizations. Obtaining on-the-job training is also an essential part of be­ coming a fully qualified assessor or appraiser and is required for obtaining a license or certification. In the past, many ap­ praisers obtained experience working in financial institutions or real estate offices. However, the current trend is for candidates to get their initial experience in the office of an independent fee appraiser. Assessors tend to start out in an assessor’s office that is will­ ing to provide on-the-job training; smaller municipalities are often unable to provide this experience. An alternate source of experience for aspiring assessors is through a revaluation firm. Licensure. Federal law requires that any appraiser involved in a Federally-related transaction with a loan amount of $250,000 or more must have a State-issued license or certification. Li­ censing requirements vary by State, but they typically include specific training requirements, a period of work as a trainee, and passing one or more examinations. All States also are required to conform, at a minimum, to the licensing and certification requirements established by the Appraisal Qualifications Board (AQB) of The Appraisal Foun­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  dation, a Congressionally-authorized organization dedicated to this purpose. The AQB requires that appraisers pass a Founda­ tion-approved State examination as well as meet education and experience requirements. The education requirements include a course and examination on the Uniform Standards of Profes­ sional Appraisal Practice (USPAP) set forth by the Appraisal Standards Board (ASB) of The Appraisal Foundation. Although Federal standards do not require an appraisal li­ cense for appraisers valuing real property with loan amounts of less than $250,000, many States require any practicing apprais­ er to obtain a license or certification, regardless of transaction value. In addition, many States have different, more stringent requirements for licensure than those set forth by the AQB. One State-issued appraiser license is the State Certified Gen­ eral Real Property Appraiser license, which allows an appraiser to value any type of real property regardless of value. Another State-issued license is the State Certified Residential Real Prop­ erty Appraiser license, which allows an appraiser to value any residential unit of 1 to 4 families regardless of value, and any other type of property with a value of up to $250,000. An ad­ ditional license, which is recommended or used by many States, is the State Licensed Residential Appraiser license, which per­ mits its holder to appraise commercial property up to $250,000 and 1 to 4 family residential units worth up to $1 million. Starting in 2008, several new educational requirements en­ acted by the AQB for State Licensure will take effect. For the State Licensed Residential Appraiser license, which is available or required in a majority of States, the candidate must obtain 150 qualifying education hours, 15 of which must be on the National USPAP Course, and at least 2,000 hours of on-the-job training. For the State Certified Residential Appraiser and the State Certified General Appraiser licenses, the required educa­ tion hours are much more rigorous, at 200 hours and 300 hours, respectively. In addition, all candidates must pass an examina­ tion. Also starting in 2008, individuals wishing to become State certified appraisers will need to either possess a college degree or complete a specified number of hours in certain college-level courses. Requirements vary by State so candidates should con­ tact their appropriate State agency to see what specific criteria are mandated. In many States, those working on their appraiser requirements for licensure are classified as a “trainee.” Some of these States have their own training programs while others use the AQB’s recommended program. The program varies by State but usu­ ally requires at least 75 hours of specified appraisal education, 15 of which must be on the National USPAP Course, before ap­ plying for a trainee position. The number of additional courses a trainee must take depends on the State requirements for the license they wish to obtain. The qualifications necessary to become an assessor also vary by State, but often are similar to the requirements for becom­ ing an appraiser. In most States, the State assessor board sets education and experience requirements that must be met to ob­ tain a certificate to practice as an assessor. A few States have no State-wide requirements; rather, standards are set by each locality. States mandating assessor certification have requirements similar to those for appraisers. Some States also have more  Management, Business, and Financial Occupations 91  than one level of certification. All candidates must attend Stateapproved schools and facilities and take basic appraisal courses. Although appraisers value one property at a time while an as­ sessor typically values many, the methods and techniques used are the same. As a result, the main courses assessors take are the same as those for appraisers. In addition, there usually is a set number of on-the-job hours that must be completed and all assessor candidates in these States must pass an examina­ tion. In some States, assessors must abide by the USPAP stan­ dards and are strongly encouraged to follow these standards in most other States. For those States not requiring certificates, the hiring assessor’s office usually will require the candidate to take basic appraisal courses, complete on-the-job training, and accrue a sufficient number of work hours to meet the require­ ments for appraisal licenses or certificates. Many assessors also possess a State appraisal license. For both appraisers and assessors, continuing education is necessary to maintain a license or certification. The minimum continuing education requirement for appraisers, as set by the AQB, is 14 hours per year. Appraisers must also complete a 7 hour National USPAP Update Course every 2 years. Some States have further requirements. Continuing education can be obtained in any State-approved school or facility, as well as recognized seminars and conferences held by associations or related organizations. Assessors also must fulfill a continuing education requirement in most States, but the amount varies by State. Other qualifications. Appraisers and assessors must possess good analytical skills, mathematical skills, and the ability to pay attention to detail. They also must work well with people and alone. Since they will work with the public, politeness is a must, along with the ability to listen and thoroughly answer any questions about their work. Certification and advancement. Many appraisers and asses­ sors choose to become a designated member of a regional or nationally recognized appraiser or assessor association. Des­ ignations are particularly useful in States or types of practices where a license is not mandatory or a certificate has not been established. Designations are another way for appraisers or as­ sessors to establish themselves in the profession, and are rec­ ognizable credentials to show employers and potential clients a higher level of education and experience. Obtaining a des­ ignation usually requires 5 to 10 years of training and expe­ rience, often more than the minimum licensing requirements of the AQB. Many appraisers and assessors start with getting their license or certificate and work their way up to a designa­ tion. Many appraisal associations have a membership category specifically for trainees, who then can receive full membership after licensure. Since States differ greatly on the requirements to become an assessor, licensure is not necessarily required for  membership or designations; however, the imposed designation qualifications tend to be very stringent. Advancement within the occupation comes with experience. The higher the level of appraiser licensure, for example, the higher the fees an independent fee appraiser may charge. Stay­ ing in one particular region or focusing on one type of apprais­ ing specialty also will help to establish one’s business, reputa­ tion, and expertise. Assessors often have a career progression within their office, starting as a trainee and eventually ending up appointed or elected as a senior appraiser or supervisor.  Employment In 2006, appraisers and assessors of real estate held about 101,000 jobs. Most appraisers and assessors work full-time. More than 3 out of 10 were self-employed; virtually all were appraisers. Employment was concentrated in areas with high levels of real estate activity, such as major metropolitan areas. Assessors are more uniformly spread throughout the country than appraisers because every locality has at least one assessor. About 25 percent worked in local government; almost all were assessors. Another 30 percent, mainly appraisers, worked for real estate firms, while a relatively small number worked for financial institutions, such as banks and credit unions.  Job Outlook Employment of appraisers and assessors of real estate is ex­ pected to grow faster than average for all occupations. Job op­ portunities should be favorable for those who meet licensing qualifications and have several years of experience. Employment change. Employment of appraisers and asses­ sors of real estate is expected to grow by 17 percent, which is faster than the average for all occupations, over the 2006-16 decade. Employment of appraisers will grow with increases in the level of real estate activity. Additionally, more apprais­ ers will be hired to help with litigation claims, probate cases, foreclosures, business valuations, and divorce settlements. Em­ ployment of assessors will grow with the increase in the amount of real property to be assessed. However, employment will be held down to a certain extent by productivity increases brought about by the increased use of computers and other technologies, which make for faster valuations and allow appraisers to take on more customers and each assessor to assess more properties. Independent fee appraisers will see the strongest growth be­ cause banks and other financial institutions increasingly are contracting work out to them to make loan appraisals on a caseby-case basis. The increased use of automated valuation mod­ els to conduct appraisals for loan and mortgage purposes also will shift work out of the financial sector. Additionally, more work is being done in service sectors of the economy, such as in the legal and accounting sectors.  Projections data from the National Employment Matrix Occupational Title Appraisers and assessors of real estate........................... ...................  soc  Code 13-2021  Employment, 2006  101,000  Projected employment, 2016 118,000  Change, 2006-16 Number Percent 17,000 17  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Information Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  92 Occupational Outlook Handbook  Job prospects. Employment opportunities should be best in areas with active real estate markets, such as the East and West coasts and major cities and suburbs. Although opportunities for established appraisers and assessors are expected to be good in these areas, those wishing to enter the occupation may have difficulty locating a trainee position because traditional sources of training positions increasingly are prefer not to take on new trainees. The cyclical nature of the real estate market also will have a direct effect on the job prospects of appraisers, especially those who appraise residential properties. In times of recession, fewer people buy or sell real estate, causing a decrease in the demand for appraisers. As a result, opportunities will be best for appraisers who are able to switch specialties and appraise different types of properties. Because assessors are needed in every local or State jurisdic­ tion to make assessments for property tax purposes regardless of the state of the local economy, assessors are less affected by economic and real estate market fluctuations than are apprais­ ers. In addition to growth openings, there should be numerous openings because of the need to replace the many appraisers and assessors who are expected to retire or decrease their work­ ing hours over the projection period.  Earnings Median annual earnings of wage and salary appraisers and as­ sessors of real estate were $44,460 in May 2006. The middle 50 percent earned between $32,080 and $64,460. The lowest 10 percent earned less than $24,000 and the highest 10 percent earned more than $86,140. Median annual earnings of those working for local governments were $40,650. Median annual earnings of those working for real estate firms were $44,120. Generally, those working in urban and coastal regions earned more than those working in rural locations.  Related Occupations Other occupations that involve the inspection of real estate in­ clude construction and building inspectors, real estate brokers and sales agents, and urban and regional planners. Appraisers and assessors must also place a monetary value on properties. Occupations also involved in valuing items include claims ad­ justers, appraisers, examiners and investigators, as well as cost estimators.  Sources of Additional Information For more information on licensure requirements, contact: y The Appraisal Foundation, 1155 15th Street NW„ Suite 1111, Washington, DC 20005. Internet: http ://www.appraisalfoundation.org For more information on individual State licensure require­ ments, contact: y Appraisal Subcommittee (ASC), 2000 K Street, NW., Suite 310; Washington, D.C. 20006. Internet: http://www.asc.gov For more information on appraisers of real estate, contact: y AmericanSocietyofAppraisers,555HemdonPkwy.,Suite 125, Herndon, VA 20170. Internet: http://www.appraisers.org y Appraisal Institute, 550 W. Van Buren St., Suite 1000, Chicago, IL 60607. Internet: http://www.appraisalinstitute.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  y National Association of Independent Fee Appraisers, 401 N. Michigan Ave. Suite 2200, Chicago, IL 60611. y National Association of Real Estate Appraisers, 1224 North Nokomis NE„ Alexandria, MN 56308. For more information on assessors of real estate, contact: y International Association of Assessing Officers, 314 W 10th St., Kansas City, MO 64105. Internet: http://www.iaao.org  Budget Analysts (0*NET 13-2031.00)  Significant Points •  Good job opportunities are expected.  •  A bachelor’s degree generally is the minimum edu­ cational requirement, but many employers prefer or require a master’s degree.  •  About 44 percent of all budget analysts work in Fed­ eral, State, and local governments.  Nature of the Work Efficiently distributing limited financial resources is an impor­ tant challenge in all organizations. In most large and complex organizations, this task would be nearly impossible without budget analysts. These workers develop, analyze, and execute budgets, which are used to allocate current resources and esti­ mate future financial needs. Budget analysts work in private industry, nonprofit organiza­ tions, and the public sector. In private sector firms, a budget analyst’s main responsibility is to examine the budget and seek new ways to improve efficiency and increase profits. In non­ profit and governmental organizations, which usually are not concerned with profits, analysts try to find the most efficient way to distribute funds and other resources among various de­ partments and programs. In recent years, as limited funding has led to downsizing and restructuring throughout private industry and government, budget analysts have seen their role broadened. In addition to managing an organization’s budget, they are often involved in program performance evaluation, policy analysis, and the draft­ ing of budget-related legislation. At times, they also conduct training sessions for company or government agency personnel regarding new budget procedures. At the beginning of each budget cycle, managers and depart­ ment heads submit proposed operational and financial plans to budget analysts for review. These plans outline the organiza­ tion’s programs, estimate the financial needs of these programs, and propose funding initiatives to meet those needs. Analysts examine budget estimates and proposals for com­ pleteness; accuracy; and conformance with established proce­ dures, regulations, and organizational objectives. Sometimes they employ cost-benefit analyses to review financial requests, assess program tradeoffs, and explore alternative funding meth­ ods. They also examine past budgets and research economic and financial developments that affect the organization’s spending.  Management, Business, and Financial Occupations 93  This process enables analysts to evaluate proposals in terms of the organization’s priorities and financial resources. After the initial review process, budget analysts consolidate individual departmental budgets into operating and capital bud­ get summaries. These summaries contain statements that argue for or against funding requests. Budget summaries are then submitted to senior management, or, as is often the case in State and local 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 decision to approve the budget usually is made by the organization head in a private firm, or, in government, by elected officials such as State legislators. Throughout the year, analysts periodically monitor the bud­ get by reviewing reports and accounting records to determine if allocated funds have been spent as specified. If deviations appear between the approved budget and actual performance, budget analysts may write a report explaining the variations and recommending revised procedures. To avoid or alleviate defi­ cits, budget analysts may recommend program cuts or a real­ location of excess funds. They also inform program managers and others within the organization of the status and availability of funds in different accounts. Before new programs begin or existing programs are changed, a budget analyst must assess the program’s efficiency and effectiveness. Analysts also may be involved in long-range financial planning. Financial software has greatly increased the amount of data and information that budget analysts can consider. The analysts also make extensive use of spreadsheet, database, and word­ processing software. Work environment. Budget analysts usually work in a com­ fortable office setting. They spend the majority of their time working independently, compiling and analyzing data and pre­ paring budget proposals. Some budget analysts travel to obtain budget details first-hand or to personally verify funding alloca­ tion. The schedules of budget analysts vary throughout the budget cycle, and many are required to work additional hours during the initial development, midyear reviews, and final reviews of budgets. In 2006, about 65 percent of budget analysts worked between 35 and 44 hours per week, while about 17 percent worked more than 44 hours per week, and about 10 percent worked fewer than 35 hours per week. The pressures of dead­ lines and tight work schedules can be stressful.  ter’s degrees are preferred. State and local governments have varying requirements, but a bachelor’s degree in one of many areas, including accounting, finance, business, public adminis­ tration, economics, statistics, political science, or sociology, is a common requirement. Many States, especially larger, more urban States, require a master’s degree. Many government em­ ployers prefer candidates with strong analytic and policy analy­ sis backgrounds that may be obtained through such majors as political science, economics, public administration, or public finance. Some firms prefer candidates with a degree in business be­ cause business courses emphasize both quantitative and ana­ lytical skills, which are equally important in budget analysis. Sometimes a degree in a field closely related to that of the employing industry or organization, such as engineering, may be preferred. Because developing a budget requires strong nu­ merical and analytical skills, courses in statistics or accounting are helpful, regardless of the prospective budget analyst’s major field of study. Occasionally, budget-related or finance-related work experience can be substituted for formal education. Entry-level budget analysts in the Federal Government receive extensive on-the-job and classroom training. In most other or­ ganizations, however, budget analysts usually learn the job by working through one complete budget cycle. During the cycle, which typically lasts 1 year, analysts become familiar with the various steps involved in the budgeting process. Many budget analysts also take professional development classes throughout their careers. Other qualifications. Budget analysts must abide by strict ethical standards. Integrity, objectivity, and confidentiality are all essential when dealing with financial information, and bud­ get analysts must avoid any personal conflicts of interest. Most budget analysts also need mathematical skills and should be able to use software packages, including spreadsheet, database,  Training, Other Qualifications, and Advancement A bachelor’s degree usually is the minimum educational re­ quirement for budget analyst jobs, but some organizations pre­ fer or require a master’s degree. Entry-level budget analysts usually begin with limited responsibilities but can be promoted to intermediate-level positions within 1 to 2 years, and to senior positions with additional experience. Education and training. Private firms and government agencies generally require budget analysts to have at least a bachelor’s degree, but many prefer or require a master’s degree. Within the Federal Government, a bachelor’s degree in any field is sufficient for an entry-level budget analyst position, but mas­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  *I  Alii  Almost half of all budget analysts work in Federal, State, and local governments.  94 Occupational Outlook Handbook  Projections data from the National Employment Matrix Occupational Title Budget analysts........................................................ ...........................  soc  Employment,  Code  2006  13-2031  Change,  Projected employment,  62,000  2016 66,000  2006-16 Number  Percent  4,400  7  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on  tion Included in the Handbook.  data-mining, financial analysis, and graphics programs. Strong oral and written communication skills also are essential, be­ cause budget analysts must prepare, present, and defend budget proposals to decision makers. In addition, budget analysts must be able to work under strict time constraints. Certification and advancement. Entry-level budget analysts usually begin with limited responsibilities, working under close supervision. Capable entry-level analysts can be promoted to intermediate-level positions within 1 to 2 years, and to senior positions with additional experience. Because of the impor­ tance and high visibility of their jobs, senior budget analysts are prime candidates for promotion to management positions in various parts of their organizations, or with other organizations with which they have worked. Some government budget analysts employed at the Federal, State, or local level may earn the Certified Government Finan­ cial Manager designation granted by the Association of Gov­ ernment Accountants. Other government financial officers also may earn this designation. To do so, candidates must have a minimum of a bachelor’s degree, 24 credit hours of study in financial management, and 2 years of government work experi­ ence in financial management. They also must pass a series of three exams that cover topics on the government; govern­ mental accounting, financial reporting, and budgeting; and fi­ nancial management and control. To maintain the designation, individuals must complete 80 hours of continuing professional education every 2 years.  Employment Budget analysts held 62,000 jobs throughout private industry and government in 2006. Federal, State, and local governments are major employers, accounting for 44 percent of budget ana­ lyst jobs. Many other budget analysts worked in manufactur­ ing; financial services; management services; professional, sci­ entific, and technical services; and schools.  Job Outlook Budget analyst jobs are expected to increase about as fast as the average, and job prospects should generally be good, especially for applicants with a master’s degree. Employment change. Employment of budget analysts is ex­ pected to increase by 7 percent between 2006 and 2016, which is about as fast as the average for all occupations. Employment growth will be driven by the continuing demand for sound fi­ nancial analysis in both the public and the private sectors. As businesses and other organizations become more complex and specialized, budget planning and financial control will de­ mand greater attention. In recent years, computer applications used in budget analysis have become increasingly sophisticat­ ed, allowing more data to be processed in a shorter time. As a   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Occupational Informa-  result, budget analysts have seen their workload broadened, and they are expected to produce more than they have in the past. Budget analysts will also continue to acquire new responsi­ bilities in other areas, such as policy analysis and performance evaluation, which make them more important to their organiza­ tions. Job prospects. Good job prospects are expected for budget analysts over the 2006-16 decade. Job openings should result from employment growth and from the need to replace workers who retire or leave the occupation for other reasons. Candidates with a master’s degree are expected to have the best opportuni­ ties. Familiarity with spreadsheet, database, data-mining, fi­ nancial-analysis, and graphics software packages also should enhance a jobseeker’s prospects. Because of the importance of financial analysis, and because financial and budget reports must be completed during all phas­ es of the business cycle, budget analysts usually are less vulner­ able to layoffs than many other types of workers.  Earnings Salaries of budget analysts vary widely by experience, educa­ tion, and employer. Median annual earnings of wage-and-salary budget analysts in May 2006 were $61,430. The middle 50 percent earned between $49,070 and $77,000. The lowest 10 percent earned less than $40,070, and the highest 10 per­ cent earned more than $93,080. Median annual earnings in the industries employing the largest numbers of budget analysts were: Management of companies and enterprises........................$65,280 Federal Government.............................................................. 65,240 State government................................................................... 55,990 Local government................................................................. 55,120 Colleges, universities, and professional schools...................51,270 In the Federal Government, budget analysts usually start as trainees, earning $28,862 or $35,752 per year in 2007. Candi­ dates with a master’s degree began at $43,731. Beginning sala­ ries were slightly higher in areas where the prevailing local pay level was higher. The average annual salary in 2007 for budget analysts employed by the Federal Government was $71,267. According to a 2007 survey conducted by Robert Half In­ ternational—a staffing services firm specializing in accounting and finance—starting salaries of financial, budget, treasury, and cost analysts in small companies ranged from $32,750 to $39,250. In large companies, starting salaries ranged from $36,500 to $43,750.  Related Occupations Budget analysts analyze and interpret financial data, make rec­ ommendations for the future, and assist in the implementation  Management, Business, and Financial Occupations 95  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 managers, loan 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 and certification in government finan­ cial management may be obtained from: y Association of Government Accountants, 2208 Mount Vernon Ave., Alexandria, 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 Building, Suite 642, 444 North Capitol St.NW., Washington, DC 20001. Internet: http://www.nasbo.org Information on obtaining budget analyst positions with the Federal Government is available from the Office of Personnel Management through USAJOBS, the Federal Government’s of­ ficial employment information system. This resource for locat­ ing and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an in­ teractive voice response telephone system at (703) 724-1850. This number is not toll free, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Gov­ ernment,” online at: http://www.bls.gov/opub/ooq/2004/summer/art01.pdf  Claims Adjusters, Appraisers, Examiners, and Investigators (0*NET 13-1031.00, 13-1031.01, 13-1031.02, 13-1032.00)  Significant Points  •  Employment is expected to increase moderately, but many job openings will arise from the need to replace workers who retire or leave for other reasons.  •  Licensing and continuing education requirements vary by State.  •  College graduates have the best opportunities; com­ petition 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, poli­ cyholders submit claims, or requests for payment, seeking compensation for their loss. Adjusters, appraisers, examiners, and investigators deal with those claims. They work primarily for property and casualty insurance companies, for whom they handle a wide variety of claims alleging property damage, li­ ability, or bodily injury. Their main role is to investigate the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  claims, negotiate settlements, and authorize payments to claim­ ants, all the while mindful not to violate the claimant’s rights under Federal and State privacy 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 tasks, the insurance industry generally assigns specific roles to each of these claims workers. Adjusters plan and schedule the work required to process a claim. They might, for example, handle the claim filed after an automobile accident or after a storm damages a customer’s home. Adjusters investigate claims by interviewing the claim­ ant and witnesses, consulting police and hospital records, and inspecting property damage to determine the extent of the company’s liability. Adjusters may consult with other profes­ sionals, such as accountants, architects, construction workers, engineers, lawyers, and physicians, who can offer a more expert evaluation of a claim. The information gathered—including photographs and statements, either written, audio, or on video tape—is set down in a report that is then used to evaluate the associated 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 at­ torneys and expert witnesses to defend the insurer’s position. Many companies centralize claims adjustment in a claims center, where the cost of repair is estimated and a check is is­ sued immediately. More complex cases, usually involving bodily injury, are referred to senior adjusters. Some adjusters work with multiple types of insurance, but most specialize in homeowner claims, business losses, automotive damage, or workers’ compensation. 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. These workers assist clients in preparing and presenting claims to insurance companies and in trying to negotiate a fair settlement. They perform the same services as adjusters who work directly for companies, but they work in the best interests of the client, rather than the insurance company. Independent adjusters are also self-employed and are typically hired by an insurance carrier on a freelance or contractual basis. Insurance companies may choose to hire independent adjusters in lieu of hiring them as regular employees. Claims examiners within property and casualty insurance firms may have duties similar to those of an adjuster, but often their primary job is to review the claims submitted in order to ensure that proper guidelines have been followed. They may assist adjusters with complex 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 reasonable giv­ en the diagnosis. Examiners use guides with information on the average period of disability, the expected treatments, and the average hospital stay for the various ailments. Examiners check claim applications for completeness and accuracy, inter­ view medical specialists, and consult policy files to verify the information reported in a claim. Examiners will then either au­  96 Occupational Outlook Handbook  thorize the appropriate payment or refer the claim to an inves­ tigator for a more thorough review. Claims examiners usually specialize in group or individual insurance plans and in hospi­ tal, dental, or prescription 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 acciden­ tal. Claims examiners also may review new applications for life insurance to make sure that the 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 accu­ rate settlement of claims is that of the appraiser, whose role is to estimate 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 information is then relayed to the adjuster, who incorporates the appraisal into the settlement. Auto dam­ age appraisers are valued by insurance companies because they can provide an unbiased judgment 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 down­ load the necessary forms and files from insurance company da­ tabases. They also may use digital cameras, which allow photo­ graphs 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 the company suspects fraudulent or criminal activity, such as ar­ son, falsified workers’ disability claims, staged accidents, or un­ necessary medical treatments. The severity of insurance fraud cases can vary greatly, from claimants simply overstating the damage to a vehicle to complicated fraud rings responsible for many claimants and supported by dishonest doctors, lawyers, and even insurance personnel. Investigators usually start with a database search to obtain background information on claimants and witnesses. Investiga­ tors can access certain personal information and identify Social Security numbers, aliases, driver’s license numbers, addresses, phone numbers, 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 doctors’ offices, to determine whether the doctors have a proper license. Investigators often consult with legal counsel and can be expert witnesses in court cases. 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 stat­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ed in a workers’ compensation claim, the investigator will take video or still photographs to document the activity and report it to the insurance company. Work environment. Working environments of claims adjust­ ers, appraisers, examiners, and investigators vary greatly. Many claims adjusters and auto damage appraisers, often work out­ side the office, inspecting damaged buildings and automobiles. Adjusters who inspect damaged buildings must be wary of po­ tential hazards such as collapsed roofs and floors, as well as weakened structures. Adjusters report to the office every morning to get their as­ signments, while others simply call in from home and spend their days traveling to claim sites. New technology, such as laptop computers and cellular telephones, is making telecom­ muting 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. Occasionally, experienced adjusters must be away from home for days—for example, when they travel to the scene of a disaster such as a tornado, hurricane, or flood—to work with local adjusters and government officials. Most claims examiners employed by life and health insurance companies work a standard 5-day, 40-hour week in a typical of­ fice environment. In contrast, adjusters often must arrange their work schedules to accommodate evening and weekend appoint­ ments with clients. This sometimes results in adjusters working irregular schedules or more than 40 hours a week, especially when they have a lot of claims to investigate. Adjusters often are called to work in the event of emergencies and may have to work 50 or 60 hours a week until all claims are resolved. Appraisers spend much of their time offsite at automotive body shops estimating vehicle damage costs. The remaining time may be spent working in the office. Many independent ap­ praisers work from home, which has been made easier through new computer software valuation programs. Auto damage ap­ praisers typically work regular hours, and rarely work on the weekends. Self employed appraisers also have the flexibility to make their own hours, as many appraisals are done by ap­ pointment. Some days, investigators will spend all day in the office, searching databases, making telephone calls, and writing re-  Auto damage appraisers may document the state of the automo­ bile in their loss estimation reports.  Management, Business, and Financial Occupations 97  ports. Other times, they may be away, performing surveil­ lance 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. 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.  Training, Other Qualifications, and Advancement Training and entry requirements vary widely for claims adjust­ ers, appraisers, examiners, and investigators. Although many in these occupations do not have a college degree, most compa­ nies prefer to hire college graduates. Education and training. There are no formal education requirements for any of these occupations, and a high school degree is typically the minimal requirement needed to obtain employment. However, most employers prefer to hire college graduates or people who have some postsecondary training. No specific college major is recommended, but a variety of degrees can be an asset. For example, a claims adjuster who has a business or an accounting background might be suited to specialize in claims of financial loss due to strikes, break­ downs of equipment, or damage to merchandise. College train­ ing in architecture or engineering is helpful in adjusting indus­ trial claims, such as those involving damage from fires or other accidents. A legal background can be beneficial to someone handling workers’ compensation and product liability cases. A medical background is useful for those examiners working on medical and life insurance claims. The following tabulation presents the 2006 percent distribu­ tion of all claims adjusters, appraisers, examiners, and investi­ gators by their highest level of educational attainment: Percent  High school graduate or less........................................................ 22 Some college, no degree...............................................................17 Associate’s degree.........................................................................12 Bachelor’s degree......................................................................... 45 Graduate degree............................................................................. 5 For auto damage appraiser jobs, firms typically prefer to hire people who also have experience as an estimator or as a man­ ager of an auto body repair shop. Also, an appraiser must know how to repair vehicles in order to identify and estimate damage. Technical skills are essential. While auto damage appraisers do not require a college education, most companies prefer to hire persons with formal training. Many vocational colleges offer 2-year programs in auto body repair and teach students how to estimate the costs to repair damaged vehicles. For investigator jobs, most insurance companies prefer to hire people trained as law enforcement officers, private inves­ tigators, claims adjusters, or examiners because these workers have good interviewing and interrogation skills. Beginning claims adjusters, appraisers, examiners, and in­ vestigators work on small claims under the supervision of an experienced workers. As they learn more about claims investi­ gation and settlement, they are assigned larger, more complex claims. Trainees take on more responsibility as they demon­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  strate competence in handling assignments and progress in their coursework. Auto damage appraisers may also receive some on-the-job training, which may last several months. They may work under close supervision while estimating damage costs until their employer decides they are ready to perform estimates on their own. Continuing education is very important for claims adjusters, appraisers, examiners, and investigators because Federal and State laws and court decisions affect how claims are handled or who is covered by insurance policies. Also, examiners work­ ing on life and health claims must be familiar with new medi­ cal procedures and prescription drugs. Examiners working on auto claims must be familiar with new car models and repair techniques. Many companies offer training sessions to inform their em­ ployees of industry changes, and a number of schools and asso­ ciations give courses and seminars on various topics having to with claims. Correspondence courses via the Internet are also making long-distance learning possible. Licensure. Licensing requirements for claims adjusters, appraisers, examiners, and investigators vary by State. Some States have few requirements, while others require either the completion of prelicensing education, a satisfactory score on a licensing exam, or both. Earning a voluntary professional designation can sometimes substitute for completing an exam. In some States, claims adjusters employed by insurance com­ panies can work under the company license and need not be­ come licensed themselves. Public adjusters may need to meet separate or additional requirements. For example, some States require public adjusters to file a surety bond. Some States that require licensing also require a certain num­ ber of continuing education credits per year in order to renew the license. Workers can fulfill their continuing education require­ ments by attending classes or workshops, by writing articles for claims publications, or by giving lectures and presentations. Other qualifications. Claims adjusters, appraisers, and ex­ aminers often work closely with claimants, witnesses, and other insurance professionals, so they must be able to communicate effectively with others. Knowledge of computer applications also is very helpful. In addition, a valid driver’s license and a good driving record are required for workers who must travel on the job. Some companies require applicants to pass a series of written aptitude tests designed to measure their communica­ tion, analytical, and general mathematical skills. When hiring investigators, employers look for individuals who have ingenuity and who are persistent and assertive. In­ vestigators should not be afraid of confrontation, should com­ municate 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. Certification and advancement. Employees who demon­ strate competence in claims work or administrative skills may be promoted to more responsible managerial or administrative jobs. Similarly, claims investigators may rise to become super­ visor or manager of the investigations department. Once they achieve expertise, many choose to start their own independent adjusting or auto damage appraising firms.  98 Occupational Outlook Handbook  Projections data from the National Employment Matrix Occupational Title Claims adjusters, appraisers, examiners, and investigators.......... .... Claims adjusters, examiners, and investigators.............. .... Insurance appraisers, auto damage................................... ....  soc  Code  Employment, 2006  13-1030 13-1031 13-1032  319,000 305,000 13,000  Projected employment, 2016 347,000 332,000 15,000  Change, 2006-16 Number Percent 29,000 9 27,000 9 1,700 13  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  Numerous examiners and adjusters also earn professional certifications and designations to demonstrate their professional expertise. Although requirements for these designations vary, many entail at least 5 to 10 years of experience in the claims field and the successful completion of an examination; in addi­ tion, a certain number of continuing education credits must be earned each year to retain the designation.  Employment Adjusters, appraisers, examiners, and investigators held about 319,000 jobs in 2006. Insurance carriers, agencies, broker­ ages, and related industries, such as private claims adjusting companies, employed more than 7 out of 10 claims adjusters, appraisers, examiners, and investigators. Less than 5 percent of these jobs were held by auto damage insurance appraisers. Relatively few adjusters, appraisers, examiners, and investiga­ tors were self-employed. Job Outlook Despite average job growth, keen competition for claims ad­ juster, appraiser, examiner, and investigator jobs is expected, especially in smaller, privately owned companies. For claims adjusters, opportunities will be best for those who have a li­ cense and related experience. For appraiser jobs, opportunities will be best for those who have some vocational training and previous auto body repair experience. Employment change. Employment of claims adjusters, ap­ praisers, examiners, and investigators is expected to grow by 9 percent over the 2006-16 decade, which is about as fast as the average for all occupations. Many insurance carriers are down­ sizing their claims staff in an effort to contain costs. Larger companies are relying more on customer service representa­ tives in call centers, for example, to handle the recording of the necessary details of the claim, allowing adjusters to spend more of their time investigating claims. New technology 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. The demand for these jobs will increase regardless of new technology, however, because they cannot be easily auto­ mated. Additionally, a growing need for adjusters, appraisers, examiners, and investigators will stem from more insurance policies being sold to accommodate a growing population. Fur­ ther, as the elderly population increases, there will be a greater need for health care, resulting in more health insurance claims. Employment of insurance investigators is not expected to grow significantly, despite the expected increase in the number of claims in litigation and the number and complexity of in­ surance fraud cases. Technology, such as the Internet, reduces the amount of time it takes investigators to perform background   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  checks, allowing them to handle more cases. However, adjust­ ers are still needed to contact policyholders, inspect damaged property, and consult with experts. As with claims adjusters, examiners, and investigators, em­ ployment of auto damage appraisers should grow by 13 percent, which is also about as fast as the average for all occupations. Insurance companies and agents continue to sell growing num­ bers of auto insurance policies, leading to more claims being filed that require the attention of an auto damage appraiser. The work of auto damage appraisers is also not easily automated because most appraisals require an onsite inspection, but new technology is making them somewhat more efficient. In addi­ tion, some insurance companies are opening their own repair facilities, which may reduce the need for auto damage apprais­ ers.  Job prospects. Numerous job openings also will result from job growth and the need to replace workers who transfer to oth­ er occupations or leave the labor force. Overall, college gradu­ ates and those with previous related experience will have the best opportunities for jobs as claims adjusters, examiners, and investigators. Auto damage appraisers with related vocational training and auto body shop experience will also have good prospects. People entering these occupations with no previ­ ous experience or formal training may find more opportunities working directly for an insurance carrier. Competition for investigator jobs will remain keen because the occupation attracts many qualified people, including retir­ ees from law enforcement, the military, and experienced claims adjusters and examiners who choose to get an investigator li­ cense. Heightened media and public awareness of insurance fraud also may attract qualified candidates to this occupation.  Earnings Earnings of claims adjusters, appraisers, examiners, and in­ vestigators vary significantly. Median annual earnings were $50,660 in May 2006 for wage and salary workers. The middle 50 percent earned between $38,520 and $65,210. The lowest 10 percent earned less than $30,890, and the highest 10 percent earned more than $79,170. Median annual earnings of wage and salary auto damage in­ surance appraisers were $49,180 in May 2006. The middle 50 percent earned between $40,870 and $57,830. The lowest 10 percent earned less than $34,220, and the highest 10 percent earned more than $68,420. Many claims adjusters, especially those who work for insur­ ance companies, receive additional bonuses or benefits as part of their job. Adjusters often are furnished a laptop computer, a cellular telephone, and a company car, or are reimbursed for the use of their own vehicle for business purposes.  Management, Business, and Financial Occupations 99  Related Occupations Property-casualty insurance adjusters and life and health insur­ ance examiners must determine the validity of a claim and ne­ gotiate a settlement. They also are responsible for determining how much to reimburse the client. Occupations similar to those of claims adjusters, appraisers, examiners, and investigators in­ clude cost estimators; bill and account collectors; medical re­ cords and health information technicians; billing and posting clerks; credit authorizers, checkers, and clerks; and bookkeep­ ing, accounting, and auditing 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 inspec­ tors and investigators and construction and building inspectors. To ensure that company practices and procedures are fol­ lowed, property and casualty examiners review insurance claims to which a claims adjuster has already proposed a settlement. Others in occupations that review documents for accuracy and compliance with a given set of rules and regulations are tax ex­ aminers, collectors, and revenue agents, as well as accountants and auditors. Like automotive body and related repairers and automotive service technicians and mechanics, auto damage appraisers must be familiar with the structure and functions of various automobiles and their parts. They must also be familiar with techniques to estimate value, which is a requirement similar to appraisers and assessors of real estate. Insurance investigators detect and investigate fraudulent claims and criminal activity. Their work is similar to that of private detectives and investigators.  Sources of Additional Information General information about a career as a claims adjuster, ap­ praiser, examiner, or investigator is available from the home of­ fices of many insurance companies. Information about licensing requirements for claims adjust­ ers may be obtained from the department of insurance in each State. Information about the property-casualty insurance field can be obtained by contacting; V Insurance Information Institute, 110 William St., New York, NY 10038. Internet: http://www.iii.org Information about the health insurance field can be obtained by contacting: > National Association of Health Underwriters, 2000 North 14th Street, Suite 450, Arlington, VA 22201. Internet: http://www.nahu.org For information about professional designation and training programs, contact any of the following organizations: > American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010-2196. Internet: http ://www.theamericancollege.edu > American Institute for Chartered Property Casualty Underwriters and the Insurance Institute of America, 720 Providence Rd., P.O. Box 3016, Malvern, PA 19355-0716. Internet: http://www.aicpcu.org > International Claim Association, 1255 23rd St. NW., Washington, DC 20037. Internet: http://www.claim.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  > LOMA, 2300 Windy Ridge Parkway, Suite 600, Atlanta, GA 30339-8443. Internet: http://www.loma.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  •  About 62 percent of cost estimators work in the con­ struction industry, and another 15 percent are em­ ployed in manufacturing industries.  •  Voluntary certification can be valuable to cost estima­ tors; some individual employers may require profes­ sional certification for employment.  •  Very good employment opportunities are expected.  •  In construction and manufacturing, job prospects should be best for those with industry work experi­ ence and a bachelor’s degree in a related field.  Nature of the Work Accurately forecasting the scope, cost, and duration of future projects is vital to the survival of any business. Cost estimators develop the cost information that business owners or managers need to make a bid for a contract or to decide on the profitabil­ ity of a proposed new product or project. They also determine which endeavors are making a profit. Regardless of the industry in which they work, estimators compile and analyze data on all of the factors that can influence costs, such as materials, labor, location, duration of the project, and special machinery requirements, including computer hard­ ware and software. Job duties vary widely depending on the type and size of the project. The methods for estimating costs can differ greatly by indus­ try. On a construction project, for example, the estimating pro­ cess begins with the decision to submit a bid. After reviewing various preliminary drawings and specifications, the estimator visits the site of the proposed project. The estimator needs to gather information on access to the site; the availability of elec­ tricity, water, and other services; and surface topography and drainage. The estimator usually records this information in a signed report that is included in the final project estimate. After the site visit, the estimator determines the quantity of materials and labor the firm will need to furnish. This process, called the quantity survey or “takeoff,” involves completing standard estimating forms, filling in dimensions, numbers of units, and other information. A cost estimator working for a general contractor, for example, estimates the costs of all of the items that the contractor must provide. Although subcontrac­ tors estimate their costs as part of their own bidding process, the general contractor’s cost estimator often analyzes bids made by  100 Occupational Outlook Handbook  subcontractors. Also during the takeoff process, the estimator must make decisions concerning equipment needs, the sequence of operations, the size of the crew required, and physical con­ straints at the site. Allowances for wasted materials, inclement weather, shipping delays, and other factors that may increase costs also must be incorporated in the estimate. After completing the quantity surveys, the estimator prepares a cost summary for the entire project, including the costs of la­ bor, equipment, materials, subcontracts, overhead, taxes, insur­ ance, markup, and any other costs that may affect the project. The chief estimator then prepares the bid proposal for submis­ sion to the owner. Construction cost estimators also may be employed by the project’s architect or owner to estimate costs or to track actu­ al costs relative to bid specifications as the project develops. Estimators often specialize in large construction companies employing more than one estimator. For example, one may estimate only electrical work and another may concentrate on excavation, concrete, and forms. In manufacturing and other firms, cost estimators usually are assigned to the engineering, cost, or pricing department. The estimator’s goal is to accurately estimate the costs associated with making products. The job may begin when management requests an estimate of the costs associated with a major rede­ sign of an existing product or the development of a new prod­ uct or production process. When estimating the cost of devel­ oping a new product, for example, the estimator works with engineers, first reviewing blueprints or conceptual drawings to determine the machining operations, tools, gauges, and materi­ als that would be required. 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 asks for price information from potential suppliers. The next step is to deter­ mine the cost of manufacturing each component of the product. Some high-technology products require a considerable amount of computer programming during the design phase. The cost of software development is one of the fastest growing and most difficult activities to estimate. As a result, some cost estimators now specialize in estimating only computer software develop­ ment and related costs. The cost estimator then prepares time-phase charts and learn­ ing curves. Time-phase charts indicate the time required for tool design and fabrication, tool “debugging”—finding and correcting all problems—manufacturing of parts, assembly, and testing. Learning curves graphically represent the rate at which the performance of workers producing parts for the new product improves with practice. These curves are commonly called “cost reduction” curves, because many problems—such as engineering changes, rework, shortages of parts, and lack of operator skills—diminish as the number of units produced in­ creases, resulting in lower unit costs. Using all of this information, the estimator then calculates the standard labor hours necessary to produce a specified number of units. Standard labor hours are then converted to dollar val­ ues, 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 estimated cost of manufacturing them to determine which is cheaper.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  IMt) b. t'/.VCS tt H'*f*■t if '\ < . Jr_ •  iflMll  e  r.H\  Cost estimators analyze data on factors that influence costs to determine whether a contract is viable. Computers play an integral role in cost estimation because estimating often involves complex mathematical calculations and requires advanced mathematical techniques. For example, to undertake a parametric analysis (a process used to estimate costs per unit based on square footage or other specific require­ ments of a project), cost estimators use a computer database containing information on the costs and conditions of many other similar projects. Although computers 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. New and improved cost estimat­ ing software has lead to more efficient computations, leaving estimators greater time to visit and analyze projects. Operations research, production control, cost, and price an­ alysts 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 may include estimating costs. (For more information, see the statements on operations research analysts and construction managers else­ where in the Handbook.) Work environment. Although estimators spend most of their time in a comfortable office, construction estimators also visit worksites that can be dusty, dirty, and occasionally hazardous. Likewise, estimators in manufacturing spend time on the fac­  Management, Business, and Financial Occupations 101  tory floor, where it also can be noisy and dirty. In some in­ dustries, frequent travel between a firm’s headquarters and its subsidiaries or subcontractors may be required. Estimators normally work a 40-hour week, but overtime is common. Cost estimators often work under pressure and stress, especially when facing bid deadlines. Inaccurate estimating can cause a firm to lose a bid or to lose money on a job that was not accurately estimated.  Training, Other Qualifications, and Advancement Job entry requirements for cost estimators vary by industry. In the construction industry, employers increasingly prefer to hire cost estimators with a bachelor’s degree in construction sci­ ence, construction management, or building science, although it is also possible for experienced construction workers to be­ come cost estimators. Employers in manufacturing usually pre­ fer someone with a bachelor’s degree in mathematics, statistics, or engineering. Education and training. In the construction industry, em­ ployers increasingly prefer individuals with a degree in build­ ing science, construction management, or construction science, all of which usually include several courses in cost estimating. Most construction estimators also have considerable construc­ tion experience, gained through work in the industry, intern­ ships, or cooperative education programs. Applicants with a thorough knowledge of construction materials, costs, and pro­ cedures 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 individ­ uals with a degree in engineering, physical science, operations research, mathematics, or statistics or in accounting, finance, business, economics, or a related subject. In most industries, experience in quantitative techniques is important. Many colleges and universities include cost estimating as part of bachelor’s and associate degree curriculums in civil engineering, industrial engineering, and construction man­ agement or construction engineering technology. In addition, cost estimating is often part of master’s degree programs in construction science or construction management. Organiza­ tions representing cost estimators, such as the Association for the Advancement of Cost Engineering (AACE International) and the Society of Cost Estimating and Analysis (SCEA), also sponsor educational and professional development programs. These programs help students, estimators-in-training, and expe­ rienced estimators learn about 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. Estimators also receive much training on the job because every company has its own way of handling estimates. Work-  ing with an experienced estimator, newcomers become familiar with each step in the process. Those with no experience reading construction specifications or blueprints first learn that aspect of the work. Then they may accompany an experienced estima­ tor 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 tabulate quantities and dimensions from drawings and how to select the appropriate prices for materials. Other qualifications. Cost estimators should have an aptitude for mathematics; be able to quickly analyze, compare, and in­ terpret detailed but sometimes poorly defined information; and be able to make sound and accurate judgments based on this in­ formation. The ability to focus on details, while analyzing and overcoming larger obstacles, is essential. Assertiveness and self-confidence in presenting and supporting conclusions are also important, as are strong communications and interpersonal skills, because estimators may work as part of a team alongside managers, owners, engineers, and design professionals. Cost estimators also need knowledge of computers, including word­ processing and spreadsheet packages. In some instances, famil­ iarity with special estimation software or programming skills also may be required. Certification and advancement. 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 profes­ sional certification for employment. Both AACE International and SCEA administer certification programs. To become certi­ fied, estimators usually must have between 2 and 8 years of estimating experience and must pass an examination. In addi­ tion, certification requirements may include the publication of at least one article or paper in the field. 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 industrial 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 manufacturing firms.  Employment Cost estimators held about 221,000 jobs in 2006. About 62 percent of estimators were in the construction industry, and an­ other 15 percent were employed in manufacturing. The remain­ der 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.  Projections data from the National Employment Matrix Change, Projected 2006-16 employment, Occupational Title 2016 Number Percent 41,000 19 221,000 262,000 13-1051 Cost estimators....................................................................................... NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational InformaSOC Code  tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Employment, 2006  102 Occupational Outlook Handbook  Job Outlook Employment of cost estimators is expected to grow faster than average. Very good employment opportunities are expected. Employment change. Employment is expected to grow by 19 percent between 2006 and 2016, which is faster than the average for all occupations. Employment growth in the con­ struction industry, in which most cost estimators are employed, will account for the majority of new jobs in this occupation. Construction and repair of highways, streets, bridges, subway systems, airports, water and sewage systems, and electric power plants and transmission lines will stimulate demand for many more cost estimators. Similarly, increasing population and business growth will result in more construction of residential homes, office buildings, shopping malls, hospitals, schools, res­ taurants, and other structures that require cost estimators. As the population ages, the demand for nursing and extended-care facilities will also increase. The growing complexity of con­ struction projects will also boost demand for cost estimators as a larger number of workers specialize in a particular area of construction. Job prospects. Because there are no formal bachelor’s de­ gree programs in cost estimating, some employers have dif­ ficulty recruiting qualified cost estimators, resulting in very good employment opportunities. Job prospects in construction should be best for those who have a degree in construction sci­ ence, construction management, or building science plus prac­ tical experience in the various phases of construction or in a specialty craft area. For cost estimating jobs in manufacturing, those with degrees in mathematics, statistics, engineering, ac­ counting, business administration, or economics should have the best job prospects. In addition to job openings arising from employment growth, many additional openings should result annually from the need to replace workers who transfer to other occupations due to the sometimes stressful nature of the work, or who retire or leave the occupation for other reasons. Employment of cost estimators, like that of many other con­ struction workers, is sensitive to the fluctuations of the econo­ my. Workers in these trades may experience periods of unem­ ployment when the overall level of construction falls. On the other hand, shortages of these workers may occur in some areas during peak periods of building activity.  Earnings Salaries of cost estimators vary widely by experience, educa­ tion, size of firm, and industry. Median annual earnings of wage and salary cost estimators in May 2006 were $52,940. The middle 50 percent earned between $40,320 and $69,460. The lowest 10 percent earned less than $31,600, and the highest 10 percent earned more than $88,310. Median annual earnings in the industries employing the largest numbers of cost estima­ tors were: Nonresidential building construction.................................. $60,870 Building equipment contractors............................................ 56,170 Foundation, structure, and building exterior contractors..... 52,520 Residential building construction.......................................... 52,460 Building finishing contractors............................................... 51,610  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  According to a July 2007 salary survey by the National As­ sociation of Colleges and Employers, those with bachelor’s de­ grees in construction science/management received job offers averaging $46,930 a year.  Related Occupations Other workers who quantitatively analyze information include accountants and auditors; budget analysts; claims adjusters, ap­ praisers, examiners, and investigators; economists; financial analysts and personal financial advisors; insurance underwrit­ ers; loan officers; market and survey researchers; and opera­ tions research analysts. In addition, the duties of industrial pro­ duction managers and construction managers also may involve analyzing costs.  Sources of Additional Information Information about career opportunities, certification, education­ al programs, and cost-estimating techniques may be obtained from the following organizations: Association for the Advancement of Cost Engineering (AACE International), 209 Prairie Ave., Suite 100, Morgantown, WV 26501. Internet: http://www.aacei.org V Society of Cost Estimating and Analysis, 527 Maple Ave. East, Suite 301, Vienna, VA 22180. Internet: http ://www.sceaonline.net  Financial Analysts and Personal Financial Advisors (0*NET 13-2051.00, 13-2052.00)  Significant Points  •  Good interpersonal skills and an aptitude for working with numbers are among the most important qualifi­ cations for financial analysts and personal financial advisors. • Keen competition is anticipated for these highly paid positions, despite rapid job growth; those who have earned a professional designation or an MBA are ex­ pected to have the best opportunities. • Almost one third of personal financial advisors are self-employed. Nature of the Work Financial analysts and personal financial advisors provide analysis and guidance to businesses and individuals in making investment decisions. Both types of specialists gather financial information, analyze it, and make recommendations. However, their job duties differ because of the type of investment infor­ mation they provide and their relationships with investors. Financial analysts assess the economic performance of com­ panies and industries for firms and institutions with money to invest. Also called securities analysts and investment analysts, they work for investment banks, insurance companies, mutual and pension funds, securities firms, the business media, and  Management, Business, and Financial Occupations 103  other businesses, helping them make investment decisions or recommendations. Financial analysts read company financial statements and analyze commodity prices, sales, costs, expens­ es, and tax rates in order to determine a company’s value and to project its future earnings. They often meet with company officials to gain a better insight into the firm’s prospects and to determine its managerial effectiveness. Financial analysts can usually be divided into two basic types: those who work on the buy side and those who work on the sell side. Analysts on the buy side work for companies that have a great deal of money to invest. These companies, called institu­ tional investors, include mutual funds, hedge funds, insurance companies , independent money managers, and charitable orga­ nizations, such as universities and hospitals, with large endow­ ments. Buy side financial analysts work to devise investment strategies for a company’s portfolio. Conversely, analysts on the sell side help securities dealers to sell their products. These companies include investment banks and securities firms. The business media also hire financial advisors that are supposed to be impartial, and as such occupy a role somewhere in the middle. Financial analysts generally focus on a specific industry, re­ gion, or type of product. For example, an analyst may focus on the utilities industry, Latin America, or the options market. Firms with larger research departments may divide the work even further so their analysts can maintain sharp focus. Within their areas of specialty, analysts assess current trends in business practices, products, and competition. They must keep abreast of new regulations or policies that may affect the investments they are watching and monitor the economy to determine its effect on earnings. Some experienced analysts called portfolio man­ agers supervise a team of analysts and help guide a company in selecting the right mix of products, industries, and regions for their investment portfolio. Others who manage mutual funds or hedge funds perform a similar role and are generally called fund managers. Other analysts, called risk managers, analyze port­ folio decisions and determine how to maximize profits through diversification and hedging. Some financial analysts, called ratings analysts, evaluate the ability of companies or governments that issue bonds to repay their debts. On the basis of their evaluation, a management team assigns a rating to a company’s or government’s bonds, which helps them to decide whether to include them in a port­ folio. Other financial analysts perform budget, cost, and credit analysis as part of their responsibilities. Financial analysts use spreadsheet and statistical software packages to analyze financial data, spot trends, and develop forecasts. Analysts also use the data they find to measure the financial risks associated with making a particular investment decision. On the basis of their results, they write reports and make presentations, usually with recommendations to buy or sell particular investments. Personal financial advisors assess the financial needs of indi­ viduals. Advisors use their knowledge of investments, tax laws, and insurance to recommend financial options to individuals. They help them to identify and plan to meet short- and long­ term goals. Planners help clients with retirement and estate planning, funding the college education of children, and gen-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  £  bl* m i m  Personal financial advisors often meet with their clients to help them make investment decisions. eral investment choices. Many also provide tax advice or sell life insurance. Although most planners offer advice on a wide range of topics, some specialize in areas such as retirement and estate planning or risk management. Personal financial advisors usually work with many clients, and they often must find their own customers. Many personal financial advisors spend a great deal of their time making sales calls and marketing their services. Many advisors also meet potential clients by giving seminars or lectures or through busi­ ness and social contacts. Finding clients and building a cus­ tomer base is one of the most important aspects of becoming successful as a financial advisor. Financial advisors begin work with a client by setting up a consultation. This is usually an in-person meeting where the advisor obtains as much information as possible about the client’s finances and goals. The advisor then develops a com­ prehensive financial plan that identifies problem areas, makes recommendations for improvement, and selects appropriate in­ vestments compatible with the client’s goals, attitude toward risk, and expectation or need for a return on the investment. Sometimes this plan is written, but more often it is in the form of verbal advice. Advisors sometimes meet with accountants or legal professionals for help. Financial advisors usually meet with established clients at least once a year to update them on potential investments and adjust their financial plan to any life changes—such as marriage, disability, or retirement. Financial advisors also answer clients’ questions regarding changes in benefit plans or the consequenc­ es of a change in their jobs or careers. Financial planners must educate their clients about risks and various possible scenarios so that the clients don’t harbor unrealistic expectations. Most personal financial advisors buy and sell financial prod­ ucts, such as securities and life insurance. Fees and commis­ sions from the purchase and sale of securities and life insurance  104 Occupational Outlook Handbook  plans are one of the major sources of income for most personal financial advisors. Private bankers or wealth managers are personal financial advisors who work for people who have a lot of money to in­ vest. While most investors are simply saving for retirement or their children’s college education, these individuals have large amounts of capital and often use the returns on their invest­ ments as a major source of income. Because they have so much capital, these clients resemble institutional investors and ap­ proach investing differently from the general public. Private bankers manage portfolios for these individuals using the re­ sources of the bank, including teams of financial analysts, ac­ countants, lawyers, and other professionals. Private bankers sell these services to wealthy individuals, generally spending most of their time working with a small number of clients. Un­ like most personal financial advisors, private bankers meet with their clients regularly to keep them abreast of financial matters; they often have the responsibility of directly managing custom­ ers’ finances. Work environment. Financial analysts and personal financial advisors usually work in offices or their own homes. Financial analysts may work long hours, travel frequently to visit compa­ nies or potential investors, and face the pressure of deadlines. Much of their research must be done after office hours because their days are filled with telephone calls and meetings. Personal financial advisors usually work standard business hours, but they also schedule meetings with clients in the eve­ nings or on weekends. Many also teach evening classes or hold seminars in order to bring in more clients. Some personal financial advisors spend a fair amount of their time traveling, usually to attend conferences and training sessions, but also oc­ casionally to visit clients. Private bankers also generally work during standard business hours, but because they work so closely with their clients, they may have to be available outside normal hours upon request.  Training, Other Qualifications, and Advancement Financial analysts and most personal financial advisors must have a bachelor’s degree. Many also earn a master’s degree in finance or business administration or get professional designa­ tions. Because the field is so specialized, workers frequently attend training and seminars to learn the latest developments. Education and training. A bachelor’s or graduate degree 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 finance, business administration, accounting, statistics, or economics. Coursework in statistics, economics, and business is required, and knowledge of accounting policies and procedures, corporate budgeting, and financial analysis methods is recommended. A master’s degree in finance or business administration also is de­ sirable. Also useful are advanced courses in options pricing or bond valuation and knowledge of risk management. Employers usually do not require a specific field of study for personal financial advisors, but a bachelor’s degree in account­ ing, finance, economics, business, mathematics, or law provides good preparation for the occupation. Courses in investments, taxes, estate planning, and risk management are also helpful.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Programs in financial planning are becoming more widely available in colleges and universities. Licensure. The Financial Industry Regulatory Authority (FINRA) is the main licensing organization for the securities industry. Depending on an individual’s work, many different licenses may be required, although buy side analysts are less likely to need licenses. The majority of these licenses require sponsorship by an employer, so companies do not expect in­ dividuals to have these licenses before starting a job. Experi­ enced workers who change jobs will need to have their licenses renewed with the new company. Almost all personal financial advisors need the Series 7 and Series 63 or 66 licenses. These licenses give their holders the right to act as a registered representative of a securities firm and to give financial advice. Because the Series 7 license re­ quires sponsorship, self-employed personal financial advisors must maintain a relationship with a large securities firm. This relationship allows them to act as representatives of that firm in the buying and selling of securities. If personal financial advisors choose to sell insurance, they need additional licenses issued by State licensing boards. Other qualifications. Strong math, analytical, and problem­ solving skills are essential qualifications for financial analysts. Good communication skills also are necessary, because these workers must present complex financial concepts and strate­ gies. 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. Financial analysts should also be very com­ fortable with computers, as they are frequently used in doing work. Although much of the software they use is proprietary, they must be comfortable working with spreadsheets and statis­ tical packages. Personal financial advisors need many of the same skills, but they must emphasize customer service. They need strong sales ability, including the ability to make customers feel comfort­ able. It is important for them to be able to present financial concepts to clients in easy-to-understand language. Personal financial advisors must also be able to interact casually with people from many different backgrounds. Some advisors have experience in a related occupation, such as accountant, auditor, insurance sales agent, or broker. Private bankers work directly with wealthy individuals, so they must be polished and refined. They should be able to in­ teract comfortably with people who may be well-known in the community. Certification and advancement. Although not required, certifications can enhance professional standing and is recom­ mended by many employers. Financial analysts can earn the Chartered Financial Analyst (CFA) designation, sponsored by the CFA Institute. To qualify for this designation, applicants need a bachelor’s degree and four years of work experience in a related field and must pass three examinations. The first exam is administered twice per year, while the second and third are administered annually. These exams cover subjects such as accounting, economics, securities analysis, financial markets and instruments, corporate finance,  Management, Business, and Financial Occupations 105  asset valuation, and portfolio management. Increasingly, per­ sonal financial advisors, sometimes called wealth managers, working with wealthy individuals have the CFA designation. Personal financial advisors may obtain the Certified Financial Planner credential, often referred to as CFP. This certification, issued by the Certified Financial Planner Board of Standards, requires 3 years of relevant experience; the completion of edu­ cation requirements, including a bachelor’s degree; passing a comprehensive examination, and adherence to a code of ethics. The exams test the candidate’s knowledge of the financial plan­ ning process, insurance and risk management, employee bene­ fits planning, taxes and retirement planning, and investment and estate planning. Candidates are also required to have a working knowledge of debt management, planning liability, emergency fund reserves, and statistical modeling. Financial analysts advance by moving into positions where they are responsible for larger or more important products. They may also supervise teams of financial analysts. Eventual­ ly, they may become portfolio managers or fund managers, di­ recting the investment portfolios of their companies or funds. Personal financial advisors have several different paths to ad­ vancement. Many accumulate clients and manage more assets. Those who work in firms may move into managerial positions. Others may choose to open their own branch offices for large securities firms and serve as independent registered representa­ tives for those firms. In most cases, employees of established firms are barred from keeping their clients after they leave a firm, so an advisor who leaves a firm to establish a new business must find new customers. Many newly independent personal financial advisors sell their services to family and friends, hop­ ing to win business through referrals.  Employment Financial analysts and personal financial advisors held 397,000 jobs in 2006, of which financial analysts held 221,000. Many financial analysts work at the headquarters of large financial institutions, most of which are based in New York City or other major financial centers. More than 2 out of 5 financial analysts worked in the finance and insurance industries, including secu­ rities and commodity brokers, banks and credit institutions, and insurance carriers. Others worked throughout private industry and government. Personal financial advisors held 176,000 jobs in 2006. Jobs were spread throughout the country. Much like financial ana­ lysts, more than half worked in finance and insurance indus­ tries, including securities and commodity brokers, banks, insur­ ance carriers, and financial investment firms. However, about 30 percent of personal financial advisors were self-employed,  operating small investment advisory firms, usually in urban ar­ eas.  Job Outlook Employment of financial analysts and personal financial advi­ sors is expected to grow much faster than the average for all occupations. Growth will be especially strong for personal fi­ nancial advisors, which are projected to be among the 10 fastest growing occupations. Despite strong job growth, keen compe­ tition will continue for these well paid jobs, especially for new entrants.  Employment change. As the level of investment increases, overall employment of financial analysts and personal finan­ cial advisors is expected to increase by 37 percent during the 2006-16 decade, which is much faster than the average for all occupations. Personal financial advisors are projected to grow by 41 per­ cent, which is much faster than the average for all occupations, over the projections decade. Growing numbers of advisors will be needed to assist the millions of workers expected to retire in the next 10 years. As more members of the large baby boom generation reach their peak years of retirement savings, person­ al investments are expected to increase and more people will seek the help of experts. Many companies also have replaced traditional pension plans with retirement savings programs, so more individuals are managing their own retirements than in the past, creating jobs for advisors. In addition, people are living longer and must plan to finance longer retirements. Deregulation of the financial services industry also is expect­ ed to continue to spur demand for personal financial advisors in the banking industry. In recent years, banks and insurance companies have been allowed to expand into the securities in­ dustry. Many firms are adding investment advice to their ser­ vices and are expected to increase their hiring of personal finan­ cial advisors. Employment of financial analysts is expected to grow by 34 percent between 2006 and 2016, which is also much faster than the average for all occupations. Primary factors for this growth are increasing complexity of investments and growth in the in­ dustry. As the number and type of mutual funds and the amount of assets invested in these funds increase, mutual fund compa­ nies will need more financial analysts to research and recom­ mend investments. Job prospects. Despite overall employment growth, compe­ tition for jobs is expected to be keen in these high-paying occu­ pations. Growth in the industry will create many new positions, but there are still far more people who would like to enter the occupation. For those aspiring to financial analyst jobs, a strong academic background is absolutely essential. Good grades in  Projections data from the National Employment Matrix Occupational Title  soc Code  Employment, 2006  Projected employment, 2016 544.000 295.000 248.000  Change, 2006-16 Number Percent 147,000 37 75.000 34 72.000 41  397.000 Financial analysts and personal financial advisors............................ 221.000 13-2051 Financial analysts.............................................................................. 176,000 13-2052 Personal financial advisors............................................................... NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Information Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  106 Occupational Outlook Handbook  courses such as finance, accounting, and economics are very important to employers. An MBA or certification is helpful in maintaining employment. Personal financial advisors will also face competition, as many other services compete for customers. Many individu­ als enter the field by working for a bank or full-service broker­ age. Most independent advisories fail within the first year of business, making self-employment challenging. Because the occupation requires sales, people who have strong selling skills will ultimately be most successful. A college degree and certi­ fication can lend credibility. Earnings. Median annual earnings, including bonuses, of wage and salary financial analysts were $66,590 in May 2006. The middle 50 percent earned between $50,700 and $90,690. The lowest 10 percent earned less than $40,340, and the high­ est 10 percent earned more than $130,130. The bonuses that many financial analysts receive in addition to their salary can be a significant part of their total earnings. Usually, the bonus is based on how well their predictions compare to the actual performance of a benchmark investment. Median annual earnings of wage and salary personal finan­ cial advisors were $66,120 in May 2006. The middle 50 per­ cent earned between $44,130 and $114,260. The lowest 10 per­ cent earned less than $32,340 and the highest 10 percent earned more than $145,600. Personal financial advisors who work for financial services firms are generally paid a salary plus bonus. Advisors who work for financial investment or planning firms or who are self-employed either charge hourly fees for their services or opt to earn their money through fees on stock and in­ surance purchases. Advisors generally receive commissions for financial products they sell, in addition to charging a fee. Those who manage a client’s assets may charge a percentage of those assets. Earnings of self-employed workers are not included in the medians given here.  Related Occupations Other jobs requiring expertise in finance and investment or in the sale of financial products include accountants and auditors, financial managers, insurance sales agents real estate brokers and sales agents, budget analysts, insurance underwriters, actu­ aries, and securities, commodities, and financial services sales agents.  Sources of Additional Information For general information on securities industry employment, contact: > Financial Industry Regulatory Authority (FINRA), 1735 K St.NW., Washington, DC 20006. Internet: http://www.finra.org > Securities Industry and Financial Markets Association, 120 Broadway, 35th Floor, New York, NY 10271. Internet: http://www.sifma.org For information on financial analyst careers, contact: y American Academy of Financial Management, 2 Canal St., Suite 2317, New Orleans, FA 70130. Internet: http://www.aafm.org >CFA Institute, P.O. Box 3668, 560 Ray C. Hunt Dr., Charlottesville, VA 22903. Internet: http://www.cfainstitute.org  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  For information on personal financial advisor careers, con­ tact: y Certified Financial Planner Board of Standards, Inc., 1670 Broadway, Suite 600, Denver, CO 80202. Internet: http://www.cfp.net y Financial Planning Association, 4100 E. Mississippi Ave., Suite 400, Denver, CO 80246-3053. Internet: http://www.fpanet.org y Investment Management Consultants Association, 5619 DTC Parkway, Suite 500, Greenwood Village, CO 80111. Internet: http://www.imca.org For additional career information, see the Occupational Out­ look Quarterly article “Financial analysts and personal finan­ cial advisors” in print at many libraries and career centers, and online: http://www.bls.gov/opub/ooq/2000/summer/art03.pdf  Insurance Underwriters (0*NET 13-2053.00)  Significant Points  •  • •  •  Most large insurance companies prefer to hire people who have a college degree in business administration or finance with courses in accounting. Continuing education is necessary for advancement. Employment is expected to grow more slowly than average as the spread of underwriting software in­ creases worker productivity. Job opportunities should be best for those with a background in finance and strong computer and com­ munication skills.  Nature of the Work Insurance companies protect individuals and organizations from financial loss by assuming billions of dollars in risk each year—risks of car accident, property damage, illness, and other occurrences. Underwriters decide if insurance is provided and under what terms. They are needed to identify and calculate the risk of loss from policyholders, establish who receives a policy, determine the appropriate premium, and write policies that cover this risk. An insurance company may lose business 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 whether a risk is accept­ able and will not result in a loss. Insurance applications often are supplemented with reports from loss-control representatives, medical reports, reports from data vendors, and actuarial stud­ ies. Underwriters then must decide whether to issue the policy and, if so, determine the appropriate premium to charge. In making this determination, underwriters consider a wide vari­ ety of factors about the applicant. For example, an underwriter working in health insurance may consider age, family history,  Management, Business, and Financial Occupations 107  .y , m r4Stev  Underwriters consider many factors when determining eligibil­ ity for an insurance policy. and current health whereas an underwriter working for a prop­ erty-casualty insurance company is concerned with the causes of loss to which property is exposed and the safeguards taken by the applicant. Therefore, underwriters serve as the main link between the insurance carrier and the insurance agent. On oc­ casion, they accompany 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 analyze and rate insurance applications, recommend accep­ tance 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 various databases on the Internet that allow immediate access to information—such as driving records—necessary in deter­ mining a potential client’s risk. This kind of access reduces the amount of time and paperwork necessary for an underwriter to complete a risk assessment. Although there are many possible lines of insurance to work in, most underwriters specialize in one of four broad catego­ ries: life, health, mortgage, and property and casualty. Life and health insurance underwriters may further specialize in group or individual policies. An increasing proportion of insurance sales, particularly in life and health insurance, are being made through group con­ tracts. A standard group policy insures everyone in a speci­ fied group through a single contract at a standard premium rate. The group underwriter analyzes the overall composition of the group to ensure that the total risk is not excessive. Another type of group policy provides members of a group—senior citizens, for example—with individual policies reflecting their needs. These usually are casualty policies, such as those covering au­ tomobiles. The casualty underwriter analyzes the application of each group member and makes individual appraisals. Some group underwriters meet with union or employer representa­ tives to discuss the types of policies available to their group. Property and casualty underwriters usually specialize in either commercial or personal insurance and then by type of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  risk insured, as in fire, homeowners’, automobile, marine, or liability insurance, as well as workers’ compensation. In cases where property-casualty companies provide insurance through a single “package” policy covering various types of risks, the underwriter must be familiar with different lines of insurance. For business insurance, the underwriter often must be able to evaluate the firm’s entire operation in appraising its application for insurance. Work environment. Underwriters have desk jobs that require no unusual physical activity. Their offices usually are comfort­ able and pleasant. Most underwriters are based in a company headquarters or regional branch office, but they occasionally at­ tend meetings away from home for several days. Construction and marine underwriters frequently travel to inspect worksites and assess risks. Although underwriters typically work a standard 40-hour week, more are working longer hours due to the downsizing of many insurance companies. For some underwriters, evening and weekend hours are not uncommon.  Training, Other Qualifications, and Advancement Although there are no formal education requirements for be­ coming an underwriter, many employers prefer candidates with a bachelor’s degree or professional designation, some insur­ ance-related experience, and strong computer skills. Much of what an underwriter does may be learned through on-the-job training, so the majority of underwriters start their careers as trainees. Education and training. For entry-level underwriting jobs, most large insurance companies prefer college graduates who have a degree in business administration or finance with courses or experience in accounting. However, a bachelor’s degree in almost any field—plus courses in business law and account­ ing—provides a good general background and may be suffi­ cient to qualify an individual. Because computers are an in­ tegral part of most underwriters’ jobs, some coursework with computers is also beneficial. Many employers prefer to hire candidates with several years of related experience in under­ writing or insurance. New employees usually start as underwriter trainees or as­ sistant underwriters. They may help collect information on ap­ plicants and evaluate routine applications under the supervision of an experienced risk analyst. Property and casualty trainees study claims files to become familiar with factors associated with certain types of losses. Many larger insurers offer workstudy training programs, lasting from a few months to a year. As trainees gain experience, they are assigned policy applica­ tions that are more complex and cover greater risks. The computer programs many underwriters use to assess risk are always being improved upon and updated, so on-the-job computer training may continue throughout an underwriter's career.  Other qualifications. Underwriting can be a satisfying ca­ reer 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 commu­ nication and interpersonal skills also are essential, as much of  108 Occupational Outlook Handbook  Projections data from the National Employment Matrix Occupational Title  soc Code  Employment, 2006  Insurance underwriters.........................................  104,000  Projected employment, 2016 111.000  Change, 2006-16 Number Percent 6.600 6  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  the underwriter’s work involves dealing with agents and other insurance professionals. Certification and advancement. Continuing education is necessary for advancement. Independent-study programs for experienced underwriters are available. The Insurance Institute of America offers a training program for beginning underwrit­ ers. It also offers the designation of Associate in Commercial Underwriting (ACU) for those starting a career in underwriting business insurance policies. People interested in underwriting personal insurance policies may earn the Associate in Personal Insurance (API) designation. To earn either the ACU or API designation, underwriters complete a series of courses and ex­ aminations that generally lasts 1 to 2 years. The American Institute for Chartered Property Casualty Un­ derwriters awards the Chartered Property and Casualty Under­ writer (CPCU) designation to experienced underwriters. Earn­ ing the CPCU designation requires passing 8 exams, having at least 3 years of insurance experience, and abiding by the Insti­ tute’s and CPCU Society’s code of professional ethics. The American College offers the equivalent Chartered Life Underwriter (CLU) designation and the Registered Health Un­ derwriter (RHU) designation for life and health insurance pro­ fessionals. 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 related financial products as agents or bro­ kers.  Employment change. Employment of underwriters is ex­ pected to grow by 6 percent during the 2006-16 decade, which is slower than the average for all occupations. Underwriting software will continue to make workers more productive, but it does not do away with the need for human skills. As a result, employment of underwriters will increase as a growing econo­ my and population expands the insurance needs of businesses and individuals. Demand for underwriters also is expected to improve as in­ surance carriers try to restore profitability to make up for an unusually large number of underwriting losses in recent years. As the carriers’ returns on their investments have declined, in­ surers are placing more emphasis on underwriting to generate revenues. This renewed interest in underwriting should result in some long-term growth for underwriters. Job prospects. Job opportunities should be best for those with experience in related insurance jobs, a background in fi­ nance, and strong computer and communication skills. In ad­ dition to openings arising from job growth, openings also will be created by the need to replace underwriters who retire or transfer to another occupation. New and emerging fields of insurance will be the source of the most job opportunities for underwriters. Insurance carriers are always assessing new risks and offering new types of poli­ cies to meet changing circumstances. Underwriters are needed particularly in the area of product development, where they as­ sess risks and set the premiums for new lines of insurance. One new line of insurance being offered by life insurance carriers is long-term care insurance and it may provide job opportunities for underwriters.  Earnings Employment Insurance underwriters held about 104,000 jobs in 2006. Insur­ ance carriers employed 65 percent of all underwriters. Most of the remaining underwriters work in insurance agencies or for organizations that offer insurance services to insurance compa­ nies and policyholders. A small number of underwriters work in agencies owned and operated by banks, mortgage compa­ nies, and real estate firms. Most underwriters are based in the insurance company’s home office, but some, mainly in the property and casualty area, work out of regional branch offices of the insurance company. These underwriters usually have the authority to underwrite most risks and determine an appropriate rating without consult­ ing the home office.  Median annual earnings of wage and salary insurance under­ writers were $52,350 in May 2006. The middle 50 percent earned between $40,000 and $71,070 a year. The lowest 10 percent earned less than $32,270, while the highest 10 percent earned more than $92,240. Median annual earnings of under­ writers working with insurance carriers were $52,900, while underwriters’ median annual earnings in agencies, brokerages, and other insurance related activities were $51,820. Insurance companies usually provide better-than-average benefits, including retirement plans and employer-financed group life and health insurance. Insurance companies usually pay tuition for underwriting courses that their trainees com­ plete, and some also offer salary incentives.  Related Occupations Job Outlook Although growth is expected to be more slowly than the aver­ age for all occupations, job prospects will remain good because of the continuous turnover experienced in this occupation.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Underwriters make decisions on the basis of financial and sta­ tistical data. Other workers with the same type of responsibil­ ity include accountants and auditors, actuaries, budget analysts, cost estimators, financial managers, loan officers, and credit  Management, Business, and Financial Occupations 109  analysts. Other related jobs in the insurance industry include insurance sales agents and claims adjusters, appraisers, examin­ ers, and investigators. I**  ■■  Sources of Additional Information Information about a career as an insurance underwriter is avail­ able from the home offices of many insurance companies. Information about the property-casualty insurance field can be obtained by contacting: > Insurance Information Institute, 110 William St., New York, NY 10038. Internet: http://www.iii.org Information about the health insurance field can be obtained by contacting: y National Association of Health Underwriters, 2000 North 14th Street, Suite 450, Arlington, VA 22201. Internet: http://www.nahu.org Information on the underwriting function and the CPCU and AU designations can be obtained from: y American Institute for Chartered Property and Casualty Underwriters and Insurance Institute of America, 720 Providence Rd., P.O. Box 3016, Malvern, PA 19355. Internet: http://www.aicpcu.org y CPCU Society, 720 Providence Road, Malvern, PA 19355. Internet: http://www.cpcusociety.org Information on the CLU and RHU designations can be ob­ tained from: y American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010. Internet: http://www.theamericancollege.edu  Loan Officers (0*NET 13-2072.00)  Significant Points  •  About 9 out of 10 loan officers work for commercial banks, savings institutions, credit unions, and related financial institutions.  •  Loan officers usually need a bachelor’s degree in fi­ nance, economics, or a related field; training or expe­ rience in banking, lending, or sales is advantageous.  •  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 is the only way to buy a house, car, or college education. For businesses, loans likewise are essential to start many companies, purchase inventory, or invest in capital equipment. Loan officers facilitate this lending by finding potential clients and helping them to apply for loans. Loan officers also gather personal information about clients and businesses to ensure an informed decision regarding their cred­ itworthiness and the probability of repayment. Loan officers may also provide guidance to prospective borrowers who have problems qualifying for traditional loans. For example, loan   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Loan officers determine the creditworthiness ofprospective cli­ ents. officers might determine the most appropriate type of loan for a particular customer and explain specific requirements and re­ strictions associated with the loan. Loan officers guide clients through the process of applying for a loan. The process begins with a 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 available to the ap­ plicant. Loan officers answer questions about the process and sometimes assist clients in filling out the application. After a client completes the application, the loan officer be­ gins the process of analyzing and verifying the information on the application to determine the client’s creditworthiness. Of­ ten, loan officers can quickly access the client’s credit history by computer and obtain a credit “score,” representing a software program’s assessment of the client’s creditworthiness. When a credit history is not available or when unusual financial cir­ cumstances are present, the loan officer may request additional financial information from the client or, in the case of commer­ cial loans, copies of the company’s financial statements. Loan officers include such 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 offi­ cers 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. 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 exist­ ing 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 learn about these new prod­ uct lines. In many instances, loan officers act as salespeople. Com­ mercial 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  110 Occupational Outlook Handbook  relationships with commercial and residential real estate agen­ cies so that, when an individual or firm buys a property, the real estate agent might recommend contacting a specific loan officer for financing. Some loan officers, called loan underwriters, specialize in evaluating a client’s creditworthiness and may conduct a finan­ cial analysis or other risk assessment. Other loan officers, referred to as loan collection officers, contact borrowers with delinquent loan accounts to help them find a method of repayment to avoid their defaulting on the loan. If a repayment plan cannot be developed, the loan collec­ tion officer initiates collateral liquidation, in which the lender seizes the collateral used to secure the loan—a home or car, for example—and sells it to repay the loan. Work environment. Working as a loan officer usually in­ volves considerable travel. For example, commercial and mortgage loan officers frequently work away from their offices and rely on laptop computers, cellular telephones, and pagers to keep in contact with their employers and clients. Mortgage loan officers often work out of their home or car, visiting offices or homes of clients to complete loan applications. Commercial loan officers sometimes travel to other cities to prepare complex loan agreements. Consumer loan officers, however, are likely to spend most of their time in an office. Most loan officers work a standard 40-hour week, but many work longer, depending on the number of clients and the de­ mand 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 are especially busy when interest rates are low, causing a surge in loan applications.  Training, Other Qualifications, and Advancement Loan officers usually need a bachelor’s degree in finance, eco­ nomics, or a related field. Previous banking, lending, or sales experience is also highly valued by employers. Education and training. Loan officer positions generally require a bachelor’s degree in finance, economics, or a related field. Loan officers without a college degree often advance to their positions after gaining several years of work experience in various other related occupations, such as teller or customer service representative. Licensure. There are currently no specific licensing re­ quirements for loan officers working in banks or credit unions. Training and licensing requirements for loan officers who work in mortgage banks or brokerages vary by State and may include continuing education requirements. As the types of mortgages offered to prospective homebuyers increases, licensing require­ ments may become more stringent as regulators and lawmakers become more leery of possible predatory lending. Other qualifications. People planning a career as a loan of­ ficer should be good at working with others, confident in their  abilities, and highly motivated. Loan officers must be willing to attend community events as representatives of their employer. Sales ability, good interpersonal and communication skills, and a strong desire to succeed also are important qualities for loan officers. Most employers also prefer applicants who are famil­ iar with computers and their applications in banking. Certification and advancement. Capable loan officers may advance to larger branches of their firms or to managerial posi­ tions. Some loan officers advance to supervise other loan of­ ficers and clerical staff. Various banking associations and private schools offer cours­ es and programs for students interested in lending and for ex­ perienced loan officers who want to keep their skills current. For example, the Bank Administration Institute, an affiliate of the American Banker’s Association, offers the Loan Review Certificate Program for people who review and approve loans. This program enhances the quality of reviews and improves the early detection of deteriorating loans, thereby contributing to the safety and soundness of the loan portfolio. The Mortgage Bankers Association offers the Certified Mortgage Banker (CMB) designation to loan officers in real estate finance. The association offers three CMB designations: residential, commerce, and masters to candidates who have 3 years of experience, earn educational credits, and pass an exam. Completion of these courses and programs generally enhances employment and advancement opportunities.  Employment Loan officers held about 373,000 jobs in 2006. About 9 out of 10 loan officers were employed by commercial banks, savings institutions, credit unions, and related financial institutions. 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.  Job Outlook Loan officers can expect average employment growth. Job op­ portunities will be best for people with a college education and related experience. Employment change. Employment of loan officers is pro­ jected to increase 11 percent between 2006 and 2016, which is about as fast as the the average for all occupations. Employ­ ment growth stemming from economic expansion and popula­ tion increases—factors that generate demand for loans—will be partially offset by increased automation that speeds the lending process and by the growing use of the Internet to apply for and obtain loans. The use of credit scoring has made the loan evaluation pro­ cess much simpler than in the past and even unnecessary in some cases. Credit scoring allows loan officers—particularly  Projections data from the National Employment Matrix Occupational Title Loan officers............................................................  soc  Code  Employment, 2006 373,000  Projected employment, 2016 415.000  Change, 2006-16 Number Percent 43,000 11  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa-  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations 111  loan underwriters—to evaluate many more loans in less time than previously. In addition, the mortgage application process has become highly automated and standardized, a simplification that has enabled mortgage loan vendors to offer their services over the Internet. Online vendors accept loan applications from customers over the Internet and determine which lenders have the best interest rates for particular loans. With this knowledge, customers can go directly to the lending institution, thereby bypassing mortgage loan brokers. Shopping for loans on the Internet, especially for mortgages, is expected to become more common in the future and to slow job growth for loan officers. Job prospects. Besides openings arising from growth, addi­ tional job openings will result from the need to replace workers who retire or otherwise leave the occupation permanently. College graduates and those with banking, lending, or sales experience should have the best job prospects. Job opportunities for loan officers are influenced by the vol­ ume of applications, which is determined largely by interest rates and by the overall level of economic activity. Although loans remain a major source of revenue for banks, demand for new loans fluctuates and affects the income and employment opportunities of loan officers. An upswing in the economy or a decline in interest rates often results in a surge in real es­ tate buying and mortgage refinancing, requiring loan officers to work long hours processing applications and inducing lenders to hire additional loan officers. Loan officers often are paid by commission on the value of the loans they place, and when the real estate market slows, they often suffer a decline in earn­ ings and may even be subject to layoffs. The same applies to commercial loan officers, whose workloads increase during good economic times as companies seek to invest more in their businesses. In difficult economic conditions, an increase in the number of delinquent loans results in more demand for loan collection officers.  earned between $36,250 and $51,250. Earnings of loan officers with graduate degrees or professional certifications are higher. Banks and other lenders sometimes may offer their loan offi­ cers free checking privileges and somewhat lower interest rates on personal loans.  Related Occupations Loan officers help people manage financial assets and secure loans. Occupations that involve similar functions include those of securities, commodities, and financial services sales agents; financial analysts and personal financial advisors; real estate brokers and sales agents; insurance underwriters; insurance sales agents; and loan counselors.  Sources of Additional Information Information about a career as a mortgage loan officer can be obtained from: V Mortgage Bankers Association, 1919 Pennsylvania Ave. NW„ Washington, DC 20006. Internet: http://www.mortgagebankers.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 offi­ cers.  Management Analysts (Q*NET 13-1111.00)  Significant Points  •  Earnings Median annual earnings of wage and salary loan officers were $51,760 in May 2006. The middle 50 percent earned between $37,590 and $73,630. The lowest 10 percent earned less than $29,590 while the top 10 percent earned more than $107,040. Median annual earnings in the industries employing the largest numbers of loan officers were as follows: The form of compensation for loan officers varies. Most are paid a commission based on the number of loans they originate. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the num­ ber of loans originated. Loan officers who are paid on commis­ sion usually earn more than those who earn only a salary, and those who work for smaller banks generally earn less than those employed by larger institutions. According to a salary survey conducted by Robert Half Inter­ national, a staffing services firm specializing in accounting and finance, consumer loan officers, referred to as personal bank­ ers, with 1 to 3 years of experience earned between $30,750 and $36,250 in 2007, and commercial loan officers with 1 to 3 years of experience made between $45,750 and $70,250. Com­ mercial loan officers with more than 3 years of experience made between $61,750 and $100,750, and consumer loan officers   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  • •  Despite much faster than average employment growth, keen competition is expected for jobs; opportunities should be best for those with a graduate degree, spe­ cialized expertise, and a talent for salesmanship and public relations. About 27 percent, over three times the average for all occupations, are self-employed. A bachelor’s degree is sufficient for many entry-level government jobs; many positions in private industry re­ quire a master’s degree, specialized expertise, or both.  Nature of the Work As business becomes more complex, firms are continually faced with new challenges. They increasingly rely on management analysts to help them remain competitive amidst these changes. Management analysts, often referred to as management consul­ tants in private industry, analyze and propose ways to improve an organization’s structure, efficiency, or profits. For example, a small but rapidly growing company might em­ ploy a consultant who is an expert in just-in-time inventory man­ agement to help improve its inventory-control system. In another case, a large company that has recently acquired a new division may hire management analysts to help reorganize the corporate structure and eliminate duplicate or nonessential jobs. In recent  112 Occupational Outlook Handbook  years, information technology and electronic commerce have provided new opportunities for management analysts. Compa­ nies hire consultants to develop strategies for entering and re­ maining competitive in the new electronic marketplace. (For information on computer specialists working in consulting, see the following statements elsewhere in the Handbook, computer software engineers; systems analysts, computer scientists, and database administrators; and computer programmers.) Management analysts might be single practitioners or part of large international organizations employing thousands of other consultants. Some analysts and consultants specialize in a specific industry, such as health care or telecommunications, while others specialize by type of business function, such as human resources, marketing, logistics, or information systems. In government, management 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, consultants work independently with the organization’s managers. In all cases, analysts and consultants collect, review, and analyze information in order to make recommendations to managers. Both public and private organizations use consultants for a variety 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 proposals include the estimated cost and scope of the project, staffing requirements, references from a number of previous clients, and a completion deadline. The company then selects the proposal that best suits its needs. Some firms, however, employ internal management consulting groups rather than hiring outside consultants. After obtaining an assignment or contract, management ana­ lysts first define the nature and extent of the problem that they have been asked to solve. During this phase, they analyze rel­ evant data—which may include annual revenues, employment, or expenditures—and interview managers and employees while observing their operations. The analysts or consultants then develop solutions to the problem. While preparing their rec-  m>  li  Many management analysts are self-employed.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ommendations, they take into account the nature of the orga­ nization, 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, such as one that shows how inventory levels affect costs and product delivery times. Once they have decided on a course of action, consultants report their findings and recommendations to the client. Their suggestions usually are submitted in writing, but oral presenta­ tions regarding findings also are common. For some projects, management analysts are retained to help implement the sug­ gestions they have made. Like their private-sector colleagues, management analysts in government agencies try to increase efficiency and worker productivity and to control costs. For example, if an agency is planning to purchase personal computers, it must first determine which type to buy, given its budget and data-processing needs. In this case, management analysts would assess the prices and characteristics of various machines and determine which ones best meet the agency’s goals. Analysts may manage contracts for a wide range of goods and services to ensure quality perfor­ mance and to prevent cost overruns. Work environment. Management analysts usually divide their time between their offices 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 deadlines are approaching. Analysts may experience a great deal of stress when 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. Sala­ ried consultants also must impress potential clients to get and keep clients for their company.  Training, Other Qualifications, and Advancement Entry requirements for management analysts vary. For some entry-level positions, a bachelor’s degree is sufficient. For others, a master’s degree, specialized expertise, or both is re­ quired. Education and training. Educational requirements for entrylevel jobs in this field vary between private industry and gov­ ernment. Many employers in private 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 or industry in which the worker plans to consult. Other firms hire workers with a bachelor’s degree as research analysts or associates and promote them to consultants after several years. Some government agencies re­ quire experience, graduate education, or both, but many also hire people with a bachelor’s degree and little work experience for entry-level management analyst positions. Few universities or colleges offer formal programs in manage­ ment consulting; however, many fields of study provide a suitable educational background for this occupation because of the wide  Management, Business, and Financial Occupations 113  range of areas addressed by management analysts. Common fields of study include business, management, accounting, mar­ keting, economics, statistics, computer and information science, or engineering. Most analysts also have years of experience in management, human resources, information technology, or other specialties. Analysts also routinely attend conferences to keep abreast of current developments in their field. Other qualifications. Management analysts often work with minimal supervision, so they need to be self-motivated and dis­ ciplined. 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 oth­ er desirable qualities. The ability to work in teams also is an important attribute as consulting teams become more common. Certification and advancement. As consultants gain experi­ ence, they often become solely responsible for specific projects, taking on more responsibility and managing their own hours. At the senior level, consultants may supervise teams work­ ing on more complex projects and become more involved in seeking out new business. Those with exceptional skills may eventually become partners in the firm, focusing on attracting new clients and bringing in revenue. Senior consultants who leave their consulting firms often move to senior management positions at non-consulting firms. Others with entrepreneurial ambition may open their own firms. A high percentage of management consultants are self-em­ ployed, partly because business startup and overhead costs are low. Since many small consulting firms fail each year because of lack of managerial expertise and clients, persons interested in opening their own firm must have good organizational and marketing skills. Several years of consulting experience are also helpful. The Institute of Management Consultants USA, Inc. 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. Certifica­ tion is not mandatory for management consultants, but it may give a jobseeker a competitive advantage.  Employment Management analysts held about 678,000 jobs in 2006. About 27 percent of these workers, over three times the average for all occupations, were self-employed. Management analysts are found throughout the country, but employment is concentrated in large metropolitan areas. Management analysts work in a range of industries, including management, scientific, and tech­ nical consulting firms; computer systems design and related services firms; and Federal, State, and local governments.  Job Outlook Employment of management analysts is expected to grow much faster than average. Despite projected rapid employment growth, keen competition is expected for jobs as management analysts because of the independent and challenging nature of the work and the high earnings potential that make this occupa­ tion attractive to many. Employment change. Employment of management analysts is expected to grow 22 percent over the 2006-16 decade, much faster than the average for all occupations, as industry and gov­ ernment 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 biotechnology, health care, information technology, human resources, engineering, and marketing. Growth in the number of individual practitioners may be hindered by increasing use of consulting teams that are often more versatile. Job growth for management analysts has been driven by a number of changes in the business environment that have forced firms to take a closer look at their operations. These changes in­ clude regulatory changes, developments in information technol­ ogy, and the growth of electronic commerce. Firms hire consul­ tants to help them adapt to new business regulations, such as the Sarbanes-Oxley Act, which tightened financial reporting rules. Traditional companies hire analysts to help design intranets or company Web sites or to establish online businesses. New In­ ternet startup companies hire analysts not only to design Web sites but also to advise them in traditional business practices, such as pricing strategies, marketing, and inventory and human resource management. To offer clients better quality and a wider variety of services, consulting firms are partnering with traditional computer soft­ ware and technology firms. Also, many computer firms are de­ veloping consulting practices of their own to take advantage of this expanding market. Although information technology consulting should remain one of the fastest growing consult­ ing areas, employment in the computer services industry can be volatile so the most successful management analysts may also consult in other business areas. The growth of international business also has contributed to an increase in demand for management analysts. As U.S. firms expand their business abroad, many will hire management analysts to help them form the right strategy for entering the market; to advise them on legal matters pertaining to specific countries; or to help them with organizational, administrative, and other issues, especially if the U.S. company 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 comprehensive knowledge of international business and foreign cultures and  Projections data from the National Employment Matrix Occupational Title Management analysts.............................................. .............................  soc Code 13-1111  Employment, 2006 678,000  Projected employment, 2016 827.000  Change, 2006-16 Number Percent 149,000 22  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Occupational Informa­  114 Occupational Outlook Handbook  languages. Just as globalization creates new opportunities for management analysts, it also allows U.S. firms to hire manage­ ment analysts in other countries; however, because internation­ al work is expected to increase the total amount of work, this development is not expected to adversely affect employment in this occupation. Furthermore, as international and domestic markets have become more competitive, firms have needed to use resources more efficiently. Management analysts increasingly are sought to help reduce costs, streamline operations, and develop mar­ keting strategies. As this process continues and businesses downsize, even more opportunities will be created for analysts to perform duties that previously were handled internally. Fi­ nally, more management analysts also will be needed in the public sector, as Federal, State, and local government agencies seek ways to become more efficient. Job prospects. Despite rapid employment growth, keen competition is expected. The pool of applicants from which employers can draw is quite large since analysts can have very diverse educational backgrounds and work experience. Fur­ thermore, the independent and challenging nature of the work, combined with high earnings potential, makes this occupation attractive to many. Job opportunities are expected to be best for those with a graduate degree, specialized expertise, and a talent for salesmanship and public relations. Economic downturns also can have adverse effects on em­ ployment for some management consultants. In these times, businesses look to cut costs, and consultants may be consid­ ered an excess expense. On the other hand, some consultants might experience an increase in work during recessions be­ cause they advise businesses on how to cut costs and remain profitable.  Earnings Salaries for management analysts vary widely by years of ex­ perience and education, geographic location, specific exper­ tise, and size of employer. Generally, management analysts employed in large firms or in metropolitan areas have the highest salaries. Median annual earnings of wage and salary management analysts in May 2006 were $68,050. The middle 50 percent earned between $50,860 and $92,390. The lowest 10 percent earned less than $39,840, and the highest 10 per­ cent earned more than $128,330. Median annual earnings in the industries employing the largest numbers of management analysts were: Management, scientific, and technical consulting services............................................ $76,600 Computer systems design and related services......................76,130 Federal executive branch....................................................... 73,800 Management of companies and enterprises.......................... 68,660 State government................................................................... 50,270 Salaried management analysts usually receive common ben­ efits, such as health and life insurance, a retirement plan, vaca­ tion, 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.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Self-employed consultants have to maintain their own office and provide their own benefits.  Related Occupations Management analysts collect, review, and analyze data; make recommendations; and implement their ideas. Occupations with similar duties include accountants and auditors; budget an­ alysts; cost estimators; financial analysts and personal financial advisors; operations research analysts; economists; and market and survey researchers. Some management analysts specialize in information technology and work with computers, as do com­ puter systems analysts and computer scientists and database ad­ ministrators. Most management analysts also have managerial experience similar to that of administrative services managers; advertising, marketing, promotions, public relations, and sales managers; financial managers; human resources, training, and labor relations managers and specialists; industrial production managers; or top executives.  Sources of Additional Information Information about career opportunities in management consult­ ing is available from: 'y 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 des­ ignation can be obtained from: y 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 USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Government,” online at: http://www.bls.gov/opub/ooq/2004/summer/art01.pdf  Meeting and Convention Planners (0*NET 13-1121.00)  Significant Points  •  • •  Planners often work long hours in the period prior to and during a meeting or convention, and extensive travel may be required. Employment is expected to grow faster than average. Opportunities will be best for individuals with a bach­ elor’s degree and some experience as a meeting plan­ ner.  Management, Business, and Financial Occupations 115  ■  Nature of the Work Meetings and conventions bring people together for a common purpose, and meeting and convention planners work to ensure that this purpose is achieved seamlessly. Meeting planners coordinate every detail of meetings and conventions, from the speakers and meeting location to arranging for printed materials and audio-visual equipment. The first step in planning a meeting or convention is deter­ mining the purpose, message, or impression that the sponsor­ ing organization wants to communicate. Planners increasingly focus on how meetings affect the goals of their organizations; for example, they may survey prospective attendees to find out what motivates them and how they learn best. Planners then choose speakers, entertainment, and content, and arrange the program to present the organization’s information in the most effective way. Meeting and convention planners search for prospective meeting sites, which may be hotels, convention centers, or conference centers. They issue requests for proposals to all the sites in which they are interested. These requests state the meeting dates and outline the planners’ needs for the meeting or convention, including meeting and exhibit space, lodging, food and beverages, telecommunications, audio-visual requirements, transportation, and any other necessities. The establishments respond with proposals describing what space and services they can supply, and at what prices. Meeting and convention plan­ ners review these proposals and either make recommendations to top management or choose the site themselves. Once the location is selected, meeting and convention plan­ ners arrange support services, coordinate with the facility, pre­ pare the site staff for the meeting, and set up all forms of elec­ tronic communication needed for the meeting or convention, such as e-mail, voice mail, video, and online communication. Meeting logistics, the management of the details of meetings and conventions, such as labor and materials, is another ma­ jor component of the job. Planners register attendees and is­ sue name badges, coordinate lodging reservations, and arrange transportation. They make sure that all necessary supplies are ordered and transported to the meeting site on time, that meet­ ing rooms are equipped with sufficient seating and audio-vi­ sual equipment, that all exhibits and booths are set up properly, and that all materials are printed. They also make sure that the meeting adheres to fire and labor regulations and oversee food and beverage distribution. There also is a financial management component of the work. Planners negotiate contracts with facilities and suppliers. These contracts, which have become increasingly complex, are often drawn up more than a year in advance of the meeting or con­ vention. Contracts may include clauses requiring the planner to book a certain number of rooms for meeting attendees and im­ posing penalties if the rooms are not filled. Therefore, it is im­ portant that the planner closely estimate how many people will attend the meeting based on previous meeting attendance and current circumstances. Planners must also oversee the finances of meetings and conventions. They are given overall budgets by their organizations and must create a detailed budget, forecast­ ing what each aspect of the event will cost. Additionally, some planners oversee meetings that contribute significantly to their   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ....  4  i^ « St  van, m i jmmdT-1  islifi ■M  iPBMHtfi  Meeting and convention planners often work long hours before and during a meeting or convention. organization’s operating budget and must ensure that the event meets income goals. An increasingly important part of the work is measuring how well the meeting’s purpose was achieved, and planners begin this measurement as they outline the meeting’s goals. Plan­ ners set their own specific goals after learning an organization’s goals for a meeting or convention. They choose objectives for which success is measurable and define what will constitute achievement of each goal. The most obvious way to gauge their success is to have attendees fill out surveys about their experiences at the event. Planners can ask specific questions about what the attendees learned, how well organized the meet­ ing or convention appeared, and how they felt about the overall experience. If the purpose of a meeting or convention is pub­ licity, a good measure of success would be how much press coverage the event received. A more precise measurement of meeting success, and one that is gaining importance, is return on investment. Planners compare the costs and benefits of an event and show whether it was worthwhile to the organization. For example, if a company holds a meeting to motivate its em­ ployees and improve company morale, the planner might track employee turnover before and after the meeting. An important part of all these different functions of meet­ ing professionals is establishing and maintaining relationships. Meeting and convention planners interact with a variety of peo­ ple and must communicate effectively. They must understand their organization’s goals for the meeting or convention, be able to communicate their needs clearly to meeting site staff and other suppliers, maintain contact with many different people, and inform people about changes as they occur. Some aspects of the work vary by the type of organization for which planners work. Those who work for associations must market their meetings to association members, convincing members that attending the meeting is worth their time and ex­ pense. Marketing is usually less important for corporate meet­ ing planners because employees are generally required to attend company meetings. Corporate planners usually have shorter time frames in which to prepare their meetings. Planners who work in Federal, State, and local governments must learn how to operate within established government procedures, such as  116 Occupational Outlook Handbook  procedures and rules for procuring materials and booking lodg­ ing for government employees. Convention service managers, meeting professionals who work in hotels, convention centers, and similar establishments, act as liaisons between the meeting facility and planners who work for associations, businesses, or governments. They pres­ ent food service options to outside planners, coordinate special requests, suggest hotel services based on the planners’ budgets, and otherwise help outside planners present effective meetings and conventions in their facilities. Meeting planners in small organizations perform a wider range of duties, with perhaps one person coordinating an entire meeting. These planners usually need to multi-task even more than planners in larger organizations. In large organizations or those that sponsor large meetings or conventions, meeting professionals are more likely to specialize in a particular aspect of meeting planning. Some specialties are conference coordinators, who handle most of the meeting logis­ tics; registrars, who handle advance registration and payment, name badges, and the set-up of on-site registration; and educa­ tion planners, who coordinate the meeting content, including speakers and topics. In organizations that hold very large or complex meetings, there may be several senior positions, such as manager of registration, education seminar coordinator, or conference services director, with the entire meeting planning department headed by a department director. Work environment. The work of meeting and convention planners may be considered either stressful or energizing, but there is no question that it is fast-paced and demanding. Planners oversee multiple operations at one time, face numer­ ous deadlines, and orchestrate the activities of several differ­ ent groups of people. Meeting and convention planners spend the majority of their time in offices; but during meetings, they work on-site at the hotel, convention center, or other meeting location. They travel regularly to attend meetings and to visit prospective meeting sites. The extent of travel depends upon the type of organization for which the planner works. Local and regional organizations require mostly regional travel, while national and international organizations require travel to more distant locales, including travel abroad. Work hours can be long and irregular, with planners working more than 40 hours per week in the time leading up to a meeting and fewer hours after finishing a meeting. During meetings or conventions, planners may work very long days, possibly start­ ing as early as 5:00 a.m. and working until midnight. They are sometimes required to work on weekends. Some physical activity is required, including long hours of standing and walking and some lifting and carrying of boxes of materials, exhibits, or supplies. Planners work with the public and with workers from diverse backgrounds. They may get to travel to beautiful hotels and interesting places and meet speak­ ers and meeting attendees from around the world, and they usu­ ally enjoy a high level of autonomy.  Training, Other Qualifications, and Advancement People with a variety of educational or work backgrounds may seek meeting and convention planning positions. Many migrate into the occupation after gaining planning experience.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  For example, an administrative assistant may begin planning small meetings and gradually move into a full-time position as a meeting and convention planner. Although there are some cer­ tification programs and college courses in meeting and conven­ tion planning available, most needed skills are learned through experience. Education and training. Many employers prefer applicants who have a bachelor’s degree, but this is not always required. The proportion of planners with a bachelor’s degree is increas­ ing because the work and responsibilities are becoming more complex. Planners have backgrounds in a variety of disciplines, but some useful undergraduate majors are marketing, public rela­ tions, communications, business, and hotel or hospitality man­ agement. Individuals who have studied hospitality manage­ ment may start out with greater responsibilities than those with other academic backgrounds. Several universities offer bachelors or masters degrees with majors in meetings management. Additionally, meeting and convention planning continuing education programs are offered by a few universities and colleges. These programs are de­ signed for career development of meeting professionals as well as for people wishing to enter the occupation. Some programs may require 40 to more than 100 classroom hours and may last anywhere from 1 semester to 2 years. Most of the training is done informally on the job. Entrylevel planners, depending upon their education, generally be­ gin by performing small tasks under the supervision of senior meeting professionals. For example, they may issue requests for proposals and discuss the resulting proposals with higher level planners. They also may assist in registration, review of contracts, or the creation of meeting timelines, schedules, or objectives. They may start by planning small meetings, such as committee meetings. Those who start at small organizations have the opportunity to learn more quickly since they will be required to take on a larger number of tasks. Other qualifications. Meeting and convention planners must have excellent written and verbal communications skills and interpersonal skills. They must be detail-oriented with excel­ lent organizational skills, and they must be able to multi-task, meet tight deadlines, and maintain composure under pressure in a fast-paced environment. Quantitative and analytic skills are needed to formulate and follow budgets and to understand and negotiate contracts. The ability to speak multiple languages is a plus, since some planners must communicate with meeting attendees and speakers from around the world. Planners also need computer skills, such as the ability to use financial and registration software and the Internet. In the course of their careers, planners may work in a number of different, unrelated industries, and they must be able to learn independently about each new industry so they can coordinate programs that address the industry’s important issues. Some meeting and convention planners enter the occupation after working in hotel sales or as marketing or catering coor­ dinators. These are effective ways to learn about meeting and convention planning because these hotel personnel work with numerous meeting planners, participate in negotiations for ho­ tel services, and witness many different meetings. Workers who  Management, Business, and Financial Occupations 117  enter the occupation in these ways often start at a higher level than those with bachelor’s degrees and no experience. Certification and advancement. To advance in this occu­ pation, planners must volunteer to take on more responsibility and find new and better ways of doing things in their organi­ zations. The most important factors are demonstrated skill on the job, determination, and gaining the respect of others within the organization. Because formal education is increasingly important, those who enter the occupation may enhance their professional standing by enrolling in meeting planning courses offered by professional meeting and convention planning or­ ganizations, colleges, or universities. Education may improve work performance, and therefore may be an important factor in career development. However, advancement based solely on education is uncommon. As meeting and convention planners prove themselves, they are given greater responsibilities. This may mean taking on a wider range of duties or moving to another planning specialty to gain experience in that area before moving to a higher level. For example, a planner may be promoted from conference co­ ordinator, with responsibility for meeting logistics, to program coordinator, with responsibility for booking speakers and for­ matting the meeting’s program. The next step up may be meet­ ing manager, who supervises all parts of the meeting, and then director of meetings, and then possibly department director of meetings and education. Another path for promotion is to move from a small organization to a larger one, taking on responsibil­ ity for larger meetings and conventions. The Convention Industry Council offers the Certified Meet­ ing Professional (CMP) credential, a voluntary certification for meeting and convention planners. Although the CMP is not required, it is widely recognized in the industry and may help in career advancement. To qualify, candidates must have a mini­ mum of 3 years of meeting management experience, full-time employment in a meeting management capacity, and proof of accountability for successfully completed meetings. Those who qualify must then pass an examination that covers topics such as adult learning, financial management, facilities and ser­ vices, logistics, and meeting programs. The Society of Government Meeting Professionals (SGMP) offers the Certified Government Meeting Professional creden­ tial. This certification is not required to work as a government meeting planner. It may, however, be helpful to those who want to demonstrate knowledge of issues specific to planning gov­ ernment meetings, such as regulations and policies governing procurement and travel. To qualify for certification, candidates must have at least 1 year of membership in SGMP. Member­ ship requires employment as a meeting planner within Federal, State, or local government or for firm that works on govern­ ment contracts. To become certified, members must take a 3day course and pass an exam.  With significant experience, meeting planners may become independent meeting consultants, advance to vice president or executive director of an association, or start their own meeting planning firms.  Employment Meeting and convention planners held about 51,000 jobs in 2006. About 27 percent worked for religious, grantmaking, civ­ ic, professional, and similar organizations; 17 percent worked in accommodation, including hotels and motels; 8 percent worked for educational services, public and private; 3 percent worked for governments; and 6 percent were self-employed. The rest were employed by convention and trade show organizing firms and in other industries as corporate meeting and convention planners.  Job Outlook Employment of meeting and convention planners is expected to grow faster than the average for all occupations over the 2006­ 16 decade. Some additional job openings will arise from the need to replace workers who leave the workforce or transfer to other occupations. Opportunities will be best for individu­ als with a bachelors degree and some meeting planning experi­ ence.  Employment change. Employment of meeting and conven­ tion planners is expected to grow 20 percent over the 2006-16 decade, faster than the average for all occupations. As businesses and organizations become increasingly inter­ national, meetings and conventions become even more impor­ tant. In organizations that span the country or the globe, the periodic meeting is increasingly the only time the organization can bring all of its members together. Despite the proliferation of alternative forms of communication, such as e-mail, video­ conferencing, and the Web, face-to-face interaction is still a ne­ cessity. In fact, new forms of communication foster interaction and connect individuals and groups that previously would not have collaborated. By increasing the number of human connec­ tions, electronic forms of communication actually increase the demand for meetings, which may offer the only opportunity for these people to interact in person. Industries that are experiencing high growth tend to experi­ ence corresponding growth in meetings and conferences. For example, the medical and pharmaceutical sectors will experi­ ence large increases in meeting activity because of their high growth and their knowledge-intensive natures. These increases will spur employment growth of meeting professionals in medi­ cal and pharmaceutical associations. Professional associations hold conferences and conventions that offer the continuing edu­ cation, training, and opportunities to exchange ideas that are vital to medical and pharmaceutical professionals.  Projections data from the National Employment Matrix Occupational Title Meeting and convention planners............................... ........................  soc Code 13-1121  Employment, 2006 51,000  Projected employment, 2016 61,000  Change, 2006-16 Number Percent 10,000 20  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  118 Occupational Outlook Handbook  Job prospects. In addition to openings from employment growth, there will also be some job openings that arise due to the need to replace workers who leave the workforce or transfer to other occupations. Opportunities will be best for individuals with a bachelor’s degree and some meeting planning experi­ ence. Unlike workers in some occupations, meeting and convention planners often can change industries relatively easily, so they often are able to move to different industries in response to the growth or declines in particular sectors of the economy. Demand for corporate meeting planners is highly susceptible to business cycle fluctuations because meetings are usually among the first expenses cut when budgets are tight. For asso­ ciations, fluctuations are less pronounced because meetings are generally a source of revenue rather than an expense. However, since fewer people are able to attend association meetings dur­ ing recessions, associations often reduce their meeting staff as well. Associations for industries such as health care, in which meeting attendance is required for professionals to maintain their licensure, are the least likely to experience cutbacks dur­ ing downturns in the economy.  Earnings Median annual earnings of wage and salary meeting and con­ vention planners in May 2006 were $42,180. The middle 50 percent earned between $32,840 and $55,040. The lowest 10 percent earned less than $25,880, and the highest 10 percent earned more than $70,950. In 2006, median annual earnings in the industries employing the largest numbers of meeting and convention planners were as follows: Business, professional, labor, political, and similar organizations................................................. $45,850 Other support services........................................................... 44,770 Local government................................................................. 41,110 Colleges, universities, and professional schools...................39,400 Traveler accommodation....................................................... 38,270  For information about the Certified Government Meeting Professional designation, contact: y Society of Government Meeting Professionals, 908 King St., Lower Level, Alexandria, VA 22314. Internet: http://www.sgmp.org For information about internships and on-campus student meeting planning organizations, contact: y Professional Convention Management Association, 2301 S. Lake Shore Dr., Suite 1001, Chicago, IL 60616-1419. Internet: http://www.pcma.org For information about meeting planning education, entering the profession, and career paths, contact: y Meeting Professionals International, 3030 LBJ Fwy., Suite 1700, Dallas, TX 75244-5903. Internet: http://www.mpiweb.org For general career information about meeting and conven­ tion planners, see the Occupational Outlook Quarterly article “Meeting and convention planners,” online at: http://www.bls.gov/opub/ooq/2005/fall/art03.pdf  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. Employment is expected to have little or no change, but the large number of retirements over the next 10 years should create many job openings. Competition will be greatest for positions with the In­ ternal Revenue Service.  Nature of the Work Related Occupations Meeting and convention planners work to communicate a par­ ticular message or impression about an organization, as do pub­ lic relations specialists. They coordinate the activities of sev­ eral operations to create a service for large numbers of people, using organizational, logistical, communication, budgeting, and interpersonal skills. Food service managers use the same skills for similar purposes. Like meeting and convention planners, producers and directors coordinate a range of activities to pro­ duce a television show or movie, negotiate contracts, and com­ municate with a wide variety of people. Travel agents also use similar skills, such as interacting with many people and coor­ dinating travel arrangements, including hotel accommodations, transportation, and advice on destinations.  Sources of Additional Information For information about meeting planner certification, contact: V Convention Industry Council, 8201 Greensboro Dr., Suite 300, McLean, VA 22102. Internet: http://www.conventionindustry.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Taxes are one of the certainties of life, and as long as govern­ ments collect taxes, there will be jobs for tax examiners, collec­ tors, and revenue agents. By reviewing tax returns, conducting audits, identifying taxes payable, and collecting overdue tax dollars, these workers ensure that governments obtain revenues from businesses and citizens. 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 deductions are allowed by law. Because many States assess in­ dividual income taxes based on the taxpayer’s reported Federal adjusted gross income, tax examiners working for the Federal Government report any adjustments or corrections they make to the States. State tax examiners then determine whether the adjustments affect the taxpayer’s State tax liability. At the local level, tax examiners often have additional 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  Management, Business, and Financial Occupations 119  filed by small businesses. At the entry level, many tax examin­ ers perform clerical duties, such as reviewing tax returns and entering them into a computer system for processing. If there is a problem, tax examiners 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, examiners verify that Social Security numbers match names and that taxpayers have correctly inter­ preted the instructions on tax forms. Much of a tax examiner’s job involves making sure that tax credits and deductions claimed by taxpayers are legitimate. Tax examiners contact taxpayers by mail or telephone to address discrepancies and request supporting documentation. They may notify taxpayers 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, interest, 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 in State and local governments. Like tax examiners, they audit returns for accuracy. However, revenue agents han­ dle complicated income, sales, and excise tax returns of busi­ nesses and large corporations. As a result, their work differs in a number of ways from that of tax examiners. Entry-level Federal revenue agents usually audit tax returns of small businesses whose market specializations are similar. 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 pro­ cess, allowing revenue agents Internet access to relevant legal bulletins, IRS notices, and tax-related court decisions. Revenue agents are increasingly using computers to analyze data and identify trends that help pinpoint tax offenders. 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 du­ ties, but they still perform field audits or office audits of finan­ cial records for business firms. In some cases, local revenue agents also examine financial records of individuals. These lo­ cal 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 regard­ ing income, utility fees, or school taxes.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Collectors, also called revenue officers in the IRS, deal with delinquent accounts. The process of collecting a delinquent ac­ count starts with the revenue agent or tax examiner sending a report to the taxpayer. If the taxpayer makes no effort to re­ solve 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 collectors may request that the IRS prepare the return on a tax­ payer’s behalf. In other instances, collectors are responsible for verifying claims that delinquent taxpayers cannot pay their tax­ es. They investigate these claims by researching court informa­ tion on the status of liens, mortgages, or financial statements; locating assets through third parties, such as neighbors or local departments of motor vehicles; and requesting legal summons­ es for other records. Ultimately, collectors must decide whether the IRS should take a lien—a claim on an asset such as a bank account, real estate, or an automobile—to settle a debt. Collec­ tors also have the discretion to garnish wages—that is, take a portion of earned wages—to collect taxes owed. A big part of a collector’s job at the Federal level is imposing and following up on delinquent taxpayers’ payment deadlines.  Little or no change in employment is projected, but expected retirements should create many job openings.  120 Occupational Outlook Handbook  For each case file, collectors must maintain records, including contacts, telephone numbers, and actions taken. Like tax examiners and revenue agents, collectors use com­ puters to maintain files. Computer technology also gives col­ lectors access to data 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 fraudulent returns, or when the seizure of a property 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 turned over to a collector who specializes in obtaining settlements. These collectors contact people directly and have the authority to issue subpoenas and request seizures of property. At the local levels, collectors have less power than their State and Federal counterparts. Although they can start the processes leading to the seizure of property and garnishment of wages, they must go through the local court system. Work environment. Tax examiners, collectors, and revenue agents work in clean, pleasant, and comfortable office settings. Sometimes travel is necessary. Revenue agents at both the Fed­ eral and State levels spend a significant portion of their time in the offices of private firms, accessing tax-related records. Some agents may be permanently stationed in the offices of large cor­ porations with complicated tax structures. Agents at the local level usually work in city halls or municipal buildings. Collec­ tors travel to local courthouses, county and municipal seats of government, businesses, and taxpayers’ homes to look up re­ cords, search for assets, and settle delinquent accounts. Stress can result from the need to work under a deadline in checking returns and evaluating taxpayer claims. Collectors also must face the unpleasant task of confronting delinquent taxpayers. Tax examiners, collectors, and revenue agents generally work a 40-hour week, although some overtime might be needed dur­ ing the tax season. State and local tax examiners, who may review sales, gasoline, and cigarette taxes instead of handling tax returns, may have a steadier workload year-round.  Training, Other Qualifications, and Advancement Many tax examiners, collectors, and revenue agents have a bachelor’s degree. But relevant experience, or a combination of postsecondary education and experience, is sufficient quali­ fication for many jobs. Specialized experience is sufficient to qualify for many jobs in State and local government. Education and training. As shown in the table below, a bachelor’s degree was the most common level of educational attainment among tax examiners, collectors, and revenue agents in 2006. Percent High school graduate or less........................................................ 25 Some college, no degree...............................................................19 Associate degree...........................................................................10 Bachelor’s degree......................................................................... 39 Graduate degree............................................................................. 6   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  In the Federal Government, workers must have a bachelor’s degree or a combination of some college education and related experience. But in State and local governments, workers often have an associate degree, some college-level business classes and specialized experience, or a high school diploma and spe­ cialized experience. For more advanced entry-level positions, applicants often must have a bachelor’s degree. Candidates may sometimes qualify without a bachelor’s degree, however, if they can dem­ onstrate experience working with tax records, tax laws and reg­ ulations, documents, financial accounts, or similar records. Specific education and training requirements vary by occu­ pational specialty. Tax examiners usually must have a bachelor’s degree in ac­ counting or a related discipline or a combination of education and full-time accounting, auditing, or tax compliance work. Tax examiner candidates at the IRS must have a bachelor’s de­ gree or 1 year of full-time specialized experience, which could include full-time work in accounting, bookkeeping, or tax anal­ ysis. After they are hired, tax examiners receive some formal training. In addition, annual employer-provided updates keep tax examiners current with changes in procedures and regula­ tions. Collectors usually must have some combination of college education and experience in collections, management, cus­ tomer service, or tax compliance, or as a loan officer or credit manager. A bachelor’s degree is required for employment as a collector with the IRS. No additional experience is required, and experience may not be substituted for the degree. Degrees in business, finance, accounting, and criminal justice are good backgrounds. Entry-level collectors receive formal and on-the-job training under an instructor’s guidance before working independently. Collectors usually complete initial training by the end of their second year of service, but may receive advanced technical in­ struction as they gain seniority and take on more difficult cases. Also, collectors are encouraged to continue their professional education by attending meetings to exchange information about how changes in tax laws affect collection methods. Revenue agents usually must have a bachelor’s degree in ac­ counting, business administration, economics, or a related dis­ cipline or a combination of education and full-time business administration, accounting, or auditing work. Revenue agents with the IRS must have either a bachelor’s degree or 30 se­ mester hours of accounting coursework along with specialized experience. Specialized experience includes full-time work in accounting, bookkeeping, or tax analysis. Other qualifications. Tax examiners, collectors, and rev­ enue agents work with confidential financial and personal in­ formation; therefore, trustworthiness is crucial for maintaining the confidentiality of individuals and businesses. Applicants for Federal Government jobs must submit to a background in­ vestigation. Collectors need good interpersonal and communication skills because they deal directly with the public and because their re­ ports are scrutinized when the tax agency must legally justify attempts to seize assets. They must be able to negotiate well  Management, Business, and Financial Occupations 121  Projections data from the National Employment Matrix Occupational Title Tax examiners, collectors, and revenue agents.................... .............  soc  Code  Employment, 2006  13-2081  81,000  Projected employment, 2016 82,000  Change, 2006-16 Number Percent 1,700 2  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Information Included in the Handbook.  and deal effectively with others in potentially confrontational situations. Revenue agents need strong analytical, organizational, and time management skills. They also must be able to work inde­ pendently, because they spend so much time away from their home office, and they must keep current with changes in the tax code and laws. Advancement. Advancement potential within Federal, State, and local agencies varies for tax examiners, revenue agents, and collectors. For related jobs outside government, experienced workers can take a licensing exam administered by the Federal Government to become enrolled agents—nongovernment tax professionals authorized to represent taxpayers before the IRS. 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 ac­ tivities of other collectors. It is only these higher level supervi­ sors and managers who may authorize the more serious actions against individuals and businesses. The more complex collec­ tion attempts which usually are directed at larger businesses are reserved for collectors at these higher levels. Newly hired revenue agents expand their accounting knowl­ edge and remain up to date by consulting auditing manuals and other sources for detailed information about individual indus­ tries. Employers also continually offer training in new auditing techniques and tax-related issues and court decisions. As rev­ enue agents gain experience, they may specialize in an industry, work with larger corporations, and cover increasingly complex tax returns. Some revenue agents also specialize in assisting in criminal investigations, auditing the books of known or sus­ pected 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 compa­ nies with subsidiaries abroad.  Employment In 2006, tax examiners, revenue agents, and collectors held about 81,000 jobs at all levels of government. About 44 percent worked for the Federal Government, 37 percent for State governments, and the remainder for local gov­ ernments. In the IRS, tax examiners and revenue agents pre­ dominate because of the need to examine or audit tax returns. Collectors make up a smaller proportion, because most disputed tax liabilities do not require enforced collection.  Job Outlook Little or no change in employment is expected, but the large number of retirements expected over the next 10 years should create many job openings at all levels of government. Employment change. Employment of tax examiners, collec­ tors, and revenue agents is projected to grow 2 percent during   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  the 2006-16 decade, which is considered little or no change. Demand for tax examiners, revenue agents, and tax collectors will stem from changes in government policy toward tax en­ forcement and from growth in the number of businesses. The Federal Government is expected to increase its tax en­ forcement efforts. Also, new technology and information shar­ ing among tax agencies make it easier for agencies to pinpoint potential offenders, increasing the number of cases for audit and collection. These two factors should increase the demand for revenue agents and tax collectors. The work of tax examiners is especially well suited to auto­ mation, adversely affecting demand for these workers in partic­ ular. In addition, more than 40 States and many local tax agen­ cies contract out their tax collection functions to private-sector collection agencies in order to reduce costs, and this trend is likely to continue. The IRS has begun outsourcing some tax collection, but it is unclear whether the agency will continue or expand this practice. If IRS outsourcing continues, it will dampen growth in employment of revenue officers but is not expected to affect employment of revenue agents. Job prospects. The large number of retirements expected over the next 10 years is expected to create many job open­ ings at all levels of government. Both State and Federal tax agencies are turning their enforcement focus to higher income taxpayers and businesses, which file more complicated tax re­ turns. Because of this, workers with knowledge of tax laws and experience working with complex tax issues will have the best opportunities. Competition will be greatest for positions with the IRS. Op­ portunities at the Federal level will reflect the tightening or re­ laxation of budget constraints imposed on the IRS, the primary employer of these workers. Employment at the State and local levels may fluctuate with the overall state of the economy. When the economy is con­ tracting, State and local governments are likely to freeze hiring and lay off workers in response to budgetary constraints.  Earnings In May 2006, median annual earnings for all tax examiners, collectors, and revenue agents were $45,620. The middle 50 percent earned between $34,840 and $62,530. The bottom 10 percent earned less than $27,290, and the top 10 percent earned more than $81,890. However, median earnings vary consider­ ably, depending on the level of government. At the Federal lev­ el, May 2006 median annual earnings for tax examiners were $52,630; at the State level, they were $44,110; and at the local level, they were $33,120. Earnings also vary by occupational specialty. For example, in the Federal Government in 2006, tax examiners earned an average of $38,290, revenue agents earned $82,204, and tax specialists earned $55,100.  122 Occupational Outlook Handbook  IRS employees receive family, vacation, and sick leave. Full­ time permanent IRS employees are offered tax deferred retire­ ment savings and investment plans with employer matching contributions, health insurance, and life insurance. Related Occupations Tax examiners, collectors, and revenue agents analyze and in­ terpret financial data. Occupations with similar responsibilities include accountants and auditors, budget analysts, cost estima­ tors, financial analysts and personal financial advisors, financial managers, and loan officers. Sources of Additional Information Information on obtaining positions as tax examiners, col­ lectors, or revenue agents with the Federal Government is   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  available from the Office of Personnel Management through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not tollfree, and charges may result. State or local government personnel offices can provide in­ formation about tax examiner, collector, or revenue agent jobs at those levels of government. For information about careers at the Internal Revenue Ser­ vice, contact: y Internal Revenue Service, 1111 Constitution Ave. NW., Washington, D.C. 20224. Internet: http://www.jobs.irs.gov  Professional and Related Occupations Computer and Mathematical Occupations Actuaries (0*NET 15-2011.00) Significant Points  •  A strong background in mathematics is essential; ac­ tuaries must pass a series of examinations to gain full professional status.  •  About 6 out of 10 actuaries are employed in the insur­ ance industry.  •  Employment opportunities should remain good for those who qualify, because the stringent qualifying examination system restricts the number of candi­ dates.  Nature of the Work Through their knowledge of statistics, finance, and business, actuaries assess the risk of events occurring and help create policies that minimize risk and its financial impact on compa­ nies and clients. One of the main functions of actuaries is to help businesses assess the risk of certain events occurring and formulate policies 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 probabil­ ity and likely cost of an event such as death, sickness, injury, disability, or loss of property. Actuaries also address financial questions, including those involving the level of pension con­ tributions required to produce a certain retirement income level and the way in which a company should invest resources to maximize return on investments in light of potential risk. Using their broad knowledge of statistics, finance, and business, actu­ aries help design insurance policies, pension plans, and other financial 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 either life and health insurance or property and ca­ sualty insurance. They produce probability tables or use more sophisticated dynamic modeling techniques that determine the likelihood that a potential 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 actuar­ ies calculate the expected number 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  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  surance fields, actuaries help to develop long-term-care insur­ ance and annuity policies, the latter a growing investment tool for many individuals. Actuaries in other financial service industries manage credit and help price corporate security offerings. They also devise new investment tools to help their firms compete with other fi­ nancial service companies. Pension actuaries work under the provisions of the Employee Retirement Income Security Act (ERISA) of 1974 to evaluate pension plans covered by that Act and report on the plans’ financial soundness to participants, sponsors, and Federal regulators. Actuaries working for the government help manage social programs such as Social Secu­ rity and Medicare. Actuaries may help determine company policy and may need to explain complex technical matters to company execu­ tives, government officials, shareholders, policyholders, or the public in general. They may testify before public agencies on proposed legislation that affects their businesses or explain changes in contract provisions to customers. They also may help companies develop plans to enter new lines of business or new geographic markets by forecasting demand in competitive settings. 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 em­ ployee and employer contributions and determining whether the amounts are sufficient to meet the future needs of retirees. Others help companies reduce their insurance costs by lower­ ing the level of risk the companies take on. For example, they may provide advice on how to lessen the risk of injury on the job. Consulting actuaries sometimes testify in court regarding the value of potential lifetime earnings of a person who is dis­ abled or killed in an accident, the current value of future pen-  MS  Actuaries need a strong background in mathematics and sta­ tistics. 123  124 Occupational Outlook Handbook  sion benefits (in divorce cases), or other values arrived at by complex calculations. Some 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. Work environment. Actuaries have desk jobs, and their of­ fices usually are comfortable and pleasant. They often work at least 40 hours a week. Some actuaries—particularly con­ sulting actuaries—may travel to meet with clients. Consulting actuaries also may experience more erratic employment and be expected to work more than 40 hours per week.  Training, Other Qualifications, and Advancement Actuaries need a strong foundation in mathematics, statistics, and general business. They generally have a bachelor’s degree and are required to pass a series of exams in order to become certified. Education and training. Actuaries need a strong background in mathematics and general business. Usually, actuaries earn an undergraduate degree in mathematics, statistics or actuarial sci­ ence, or a business-related field such as finance, economics or business. While in college, students should complete coursework in economics, applied statistics and corporate finance, which is a requirement for professional certification. Further­ more, many students obtain internships to gain experience in the profession prior to graduation. About 100 colleges and uni­ versities offer an actuarial science program, and most offer a degree in mathematics, statistics, economics, or finance. Some companies hire applicants without specifying a major, provided that the applicant has a working knowledge of math­ ematics—including calculus, probability, and statistics—and has demonstrated this knowledge by passing one or two actu­ arial exams required for professional designation. Companies increasingly prefer well-rounded individuals who, in addition to having acquired a strong technical background, have some training in business and liberal arts and possess strong com­ munication skills. Beginning actuaries often rotate among different jobs in an organization, such as marketing, underwriting, financial report­ ing and product development, to learn various actuarial opera­ tions and phases of insurance work. At first, they prepare data for actuarial projects or perform other simple tasks. As they gain experience, actuaries may supervise clerks, prepare cor­ respondence, draft reports, and conduct research. They may move from one company to another early in their careers as they advance to higher positions. Licensure. Two professional societies sponsor programs leading to full professional status in their specialty: the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). The SOA certifies actuaries in the fields of life insurance, health benefits systems, retirement systems, and finance and invest­ ment. The CAS gives a series of examinations in the property and casualty field, which includes car, homeowners, medical malpractice, workers compensation, and personal injury liabil­ ity. Three of the first four exams in the SOA and CAS exami­ nation series are jointly sponsored by the two societies and cover the same material. For this reason, students do not need  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  to commit themselves to a specialty until they have taken the initial examinations, which test an individual’s competence in probability, statistics, and other branches of mathematics and finance. The first few examinations help students evaluate their potential as actuaries. Many prospective actuaries begin tak­ ing 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. Many candidates find work as an actuary immediately after graduation and work through the certification process while gaining some experience in the field. In fact, many employers pay the examination fees and provide their employees time to study. As actuaries pass exams, they are often rewarded with a pay increase. Despite the fact that employers are supportive during the exam process, home study is necessary and many actuaries study for months to prepare for each exam. The process for gaining certification in the Casualty Actuarial Society is predominantly exam based. To reach the first level of certification, the Associate or ACAS level, a candidate must complete seven exams, attend one course on professionalism and complete the coursework in applied statistics, corporate finance, and economics required by both the SOA and CAS. This process generally takes from 4 to 6 years. The next level, the Fellowship or FCAS level, requires passing two additional exams in advanced topics, including investment and assets and dynamic financial analysis and the valuation of insurance. Most actuaries reach the fellowship level 2 to 3 years after attaining Associate status. The certification process of the Society of Actuaries blends exams with computer learning modules and coursework. After taking the initial exams, candidates must choose a specialty: group and health benefits, individual life and annuities, retire­ ment benefits, pensions, investments or finance/enterprise risk management. To reach the Associate or ASA level, a candidate must complete the initial four exams, the coursework in applied statistics, corporate finance and economics required by the SOA and CAS, eight computer modules with two corresponding as­ sessments and a course in professionalism. This process gener­ ally takes from 4 to 6 years. To attain the Fellowship or FSA level, a candidate must pass two additional exams within a cho­ sen specialty and must complete three computer modules and a professionalism course. Attaining Fellowship status usually takes an additional 2 to 3 years after becoming an Associate. 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 of the U.S. Treasury Department and the U.S. Depart­ ment of Labor for the Enrollment of Actuaries. To qualify for enrollment, applicants must meet certain experience and exami­ nation requirements, as stipulated by the Board. Other qualifications. In addition to knowledge of mathe­ matics, computer skills are becoming increasingly important. Actuaries should be able to develop and use spreadsheets and databases, as well as standard statistical analysis software. Knowledge of computer programming languages, such as Vi­ sual Basic for Applications, SAS, or SQL, is also useful.  Professional and Related Occupations 125  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, and finance that could affect insurance or investment practices. Good communication and interpersonal skills also are important, particularly for pro­ spective consulting actuaries. Advancement. Advancement depends largely on job perfor­ mance and the number of actuarial examinations passed. Actu­ aries with a broad knowledge of the insurance, pension, invest­ ment, or employee benefits fields can rise to administrative and executive positions in their companies. Actuaries with super­ visory ability may advance to management positions in other areas, such as underwriting, accounting, data processing, mar­ keting, and advertising. Increasingly, actuaries with knowledge of business are beginning to rise to high-level positions within their companies, such as Chief Risk Officer, Chief Financial Of­ ficer, or other executive level positions. These generally require that actuaries use their abilities for assessing risk and apply it to the entire company as a whole. Furthermore, some experienced actuaries move into consulting, often by opening their own con­ sulting firm. Some actuaries transfer to college and university faculty positions. (See the section on teachers—postsecondary elsewhere in the Handbook.)  Employment Actuaries held about 18,000 jobs in 2006. Over half of all actu­ aries were employed by insurance carriers. Approximately 21 percent work for professional, scientific and technical consult­ ing services. Others worked for insurance agents and brokers and in the management of companies and enterprises industry. A relatively small number of actuaries are employed by govern­ ment agencies.  Job Outlook Employment of actuaries is expected to grow rapidly through 2016. Job opportunities should remain good for those who qualify, because the stringent qualifying examination system restricts the number of candidates. Employment change. Employment of actuaries is expected to increase by about 24 percent over the 2006-16 period, which is much faster than the average for all other occupations. Em­ ployment growth in the insurance industry—the largest em­ ployer of actuaries—is expected to continue at a stable pace, while more significant job growth is likely in other industries, such as health care and consulting firms. Steady demand by the insurance industry should ensure that actuarial jobs in this key industry will remain stable during 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 insurance products and calculate the costs of new risks. The demand for actuaries in life insurance  has been growing rapidly as a result of the rise in popularity of annuities, a financial product offered primarily by life insur­ ance companies. In addition, the risk of terrorism and natural disasters has created a large demand for actuaries in property insurance. Some new employment opportunities for actuaries should also become available in the health-care field as health-care is­ sues and Medicare reform continue to receive attention. In­ creased regulation of managed health-care companies and the desire to contain health-care costs will continue to provide 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 employ their own actuaries are increasingly hiring consulting actuaries to analyze various risks. Other areas with notable growth prospects are information services and account­ ing 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. Despite the increase in employment overall, there has been some decline in the demand for pension actuaries. This is due in large part to the decline of defined benefit plans, which re­ quired review by an actuary, in favor of investment based retire­ ment funds, such as 40Iks. Job prospects. Opportunities for actuaries should be good, particularly for those who have passed at least one or two of the initial exams. In addition, a small number of jobs will open up each year to replace actuaries who leave the occupation to retire or transfer new jobs. Candidates with additional knowledge or experience, such as computer programming skills, will be par­ ticularly attractive to employers. Most jobs in this occupation are located in urban areas, but opportunities vary by geographic location.  Earnings Median annual earnings of actuaries were $82,800 in May 2006. The middle 50 percent earned between $58,710 and $114,570. The lowest 10 percent had earnings of less than $46,470 while the top 10 percent earned more than $145,600. According to the National Association of Colleges and Em­ ployers, annual starting salaries for graduates with a bachelor’s degree in actuarial science averaged $53,754 in 2007. Insurance companies and consulting firms give merit increas­ es to actuaries as they gain experience and pass examinations. Some companies also offer cash bonuses for each professional designation achieved. A 2007 survey by Life Office Manage­ ment Association, Inc. of the largest U.S. insurance and finan-  Projections data from the National Employment Matrix Occupational Title Actuaries.................................................................................................  cnr SOC „ , Code 15-2011  „  .  .  Employment,  2006 18,000  Projected  ,J . employment, -., 2016 22,000  Change,  , 2006-2016 , _ Number Percent 4,300 24  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  126 Occupational Outlook Handbook  rial services companies indicated that the average base salary for an entry-level actuary was $53,111. Associate actuaries, who direct and provide leadership in the design, pricing, and implementation of insurance products, received an average sal­ ary of $109,167. Actuaries at the highest technical level with­ out managerial responsibilities reportedly were paid an average of $125,946.  Related Occupations Actuaries need a strong background in mathematics, statistics, and related fields. Other workers whose jobs involve such skills include accountants and auditors, budget analysts, economists, market and survey researchers, financial analysts and personal financial advisors, insurance underwriters, mathematicians, and statisticians.  Sources of Additional Information Career information on actuaries specializing in pensions is available from: y 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 in­ surance, employee benefits and pensions, and finance and in­ vestments, contact: y Society of Actuaries (SOA), 475 N. Martingale Rd., Suite 600, Schaumburg, IL 60173-2226. Internet: http://www.soa.org For information about actuarial careers in property and casu­ alty insurance, contact: y Casualty Actuarial Society (CAS), 4350 N. Fairfaix Dr„ Suite 250 Arlington, VA 22203. Internet: http://www.casact.org The SOA and CAS jointly sponsor a Web site for those inter­ ested in pursuing an actuarial career. Internet: http://www.BeAnActuary.org For general information on a career as an actuary, contact: y American Academy of Actuaries, 1100 17th St.NW., 7th Floor, Washington, DC 20036. Internet: http://www.actuary.org  Computer Programmers (0*NET 15-1021.00)  Significant Points  •  • •  Almost 8 out of 10 computer programmers held an associate’s degree or higher in 2006; nearly half held a bachelor’s degree, and 2 out of 10 held a graduate degree. Employment of computer programmers is expected to decline by four percent through 2016. Job prospects will be best for applicants with a bache­ lor’s degree and experience with a variety of program­ ming languages and tools.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Computer programmers write, test, and maintain the detailed instructions, called programs, that computers follow to perform their functions. Programmers also conceive, design, and test logical structures for solving problems by computer. With the help of other computer specialists, they figure out which in­ structions to use to make computers do specific tasks. Many technical innovations in programming—advanced computing technologies and sophisticated new languages and program­ ming tools, for example—have redefined the role of a program­ mer and elevated much of the programming work done today. Job titles and descriptions may vary, depending on the or­ ganization, but computer programmers are individuals whose main job function is programming. Programmers usually write programs according to the specifications given by computer software engineers and systems analysts. (Sections on comput­ er software engineers and on computer systems analysts appear elsewhere in the Handbook.) After engineers and analysts de­ sign software—describing how it will work—the programmer converts that design into a logical series of instructions that the computer can follow. The programmer codes these instructions in a conventional programming language such as COBOL; an artificial intelligence language such as Prolog; or one of the more advanced object-oriented languages, such as Java, C++, or ACTOR. Different programming languages are used depending on the purpose of the program. Programmers generally know more than one programming language, and because many languages are similar, they often can learn new languages relatively eas­ ily. In practice, programmers often are referred to by the lan­ guage they know, such as Java programmers, or by the type of function they perform or environment in which they work—for example, database programmers, mainframe programmers, or Web programmers. Programmers also update, repair, modify, and expand exist­ ing programs. Some, especially those working on large projects that involve many programmers, use computer-assisted soft­ ware engineering (CASE) tools to automate much of the coding process. These tools enable a programmer to concentrate on writing the unique parts of a program. Programmers working on smaller projects often use “programmer environments,” ap­ plications that increase productivity by combining compiling, code walk through, code generation, test data generation, and debugging functions. Programmers also use libraries of basic code that can be modified or customized for a specific applica­ tion. This approach yields more reliable and consistent pro­ grams and increases programmers’ productivity by eliminating some routine steps. Programs vary widely depending on the type of informa­ tion they will access or generate. For example, the instructions involved in updating financial records are very different from those required to simulate flight for pilot training. Simple pro­ grams can be written in a few hours, but some programs draw data from many existing systems or use complex mathematical formulas. These programs may take more than a year to create. In most cases, several programmers work together as a team under a senior programmer’s supervision.  Professional and Related Occupations 127  Programmers test a program by running it to ensure that the instmctions 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 produc­ es the correct results. This process is called testing and debug­ ging. Programmers may continue to fix problems for as long as a program is used. Programmers working on a mainframe, a large centralized computer, may prepare instructions for a computer operator who will run the program. (A section on computer operators appears elsewhere in the Handbook.) Programmers also may contribute to the instruction manual for a program. Programmers in software development companies may work directly with experts from various fields to create specialized software—either programs designed for specific clients or packaged software for general use—ranging from games and educational software to programs for desktop publishing and financial planning. Programming of packaged software consti­ tutes one of the most rapidly growing segments of the computer services industry. Increasingly, advanced software platforms are bridging the gap between computer programmers and computer users. New platforms, such as spreadsheet, accounting, and enterprise re­ source planning applications, have created demand for com­ puter specialists who have first-hand knowledge of a user-base. These workers use such platforms to develop programs that meet the specific needs of this base. Computer programmers often are responsible for creating the software platform, and then fine-tuning the final program after it has been made. Computer programmers often are grouped into two broad types—applications programmers and systems programmers. Applications programmers write programs to handle a specific job, such as a program to track inventory within an organiza­ tion. They also may revise existing packaged software or cus­ tomize generic applications purchased from vendors. Systems programmers, in contrast, write programs to maintain and control computer systems software for operating systems, net­ worked systems, and database systems. These workers make changes in the instructions that determine how the network, workstations, and central processing unit of a system handle the various jobs they have been given, and how they communi­ cate with peripheral equipment such as terminals, printers, and disk drives. Because of their knowledge of the entire computer system, systems programmers often help applications program­ mers determine the source of problems that may occur with their programs. In some organizations, workers known as programmer-ana­ lysts are responsible for both the systems analysis and program­ ming. (A more detailed description of the work of program­ mer-analysts is presented in the section on computer systems analysts elsewhere in the Handbook.) Work environment. Programmers spend the majority of their time in front of a computer terminal, and work in clean, comfortable offices. Telecommuting is becoming more com­ mon, however, as technological advances allow more work to be done from remote locations. Most computer programmers work about 40 hours per week. Long hours or weekend work may be required, however, to   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Computer programmers write, test, and maintain the detailed instructions that computers follow. meet deadlines or fix unexpected technical problems. About four percent work part-time, compared with about 15 percent for all occupations. Like other workers who spend long periods in front of a com­ puter terminal typing at a keyboard, programmers are suscepti­ ble to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.  Training, Other Qualifications, and Advancement A bachelor’s degree commonly is required for computer pro­ gramming jobs, although a two-year degree or certificate may be adequate for some positions. Employers favor applicants who already have relevant programming skills and experience. Skilled workers who keep up to date with the latest technology usually have good opportunities for advancement. Education and training. Most programmers have a bach­ elor’s degree, but a two-year degree or certificate may be ad­ equate for some jobs. Some computer programmers hold a college degree in computer science, mathematics, or infor­ mation systems, whereas others have taken special courses in computer programming to supplement their degree in a field such as accounting, finance, or another area of business. In 2006, more than 68 percent of computer programmers had a bachelor’s degree or higher, but as the level of education and training required by employers continues to rise, this proportion is expected to increase. Employers who use computers for scientific or engineering applications usually prefer college graduates who have a degree in computer or information science, mathematics, engineering, or the physical sciences. Employers who use computers for business applications prefer to hire people who have had col­ lege courses in management information systems and business, and who possess strong programming skills. A graduate degree in a related field is required for some jobs. Most systems programmers hold a four-year degree in com­ puter science. Extensive knowledge of a variety of operating systems is essential for such workers. This includes being able to configure an operating system to work with different types of hardware and being able to adapt the operating system to best meet the needs of a particular organization. Systems program­  128 Occupational Outlook Handbook  mers also must be able to work with database systems, such as DB2, Oracle, or Sybase. In addition to educational attainment, employers highly value relevant programming skills, as well as experience. Although knowledge of traditional programming languages still is impor­ tant, employers are placing an emphasis on newer, object-ori­ ented languages and tools such as C++ and Java. Additionally, employers seek people familiar with fourth- and fifth-genera­ tion languages that involve graphic user interface and systems programming. College graduates who are interested in chang­ ing careers or developing an area of expertise may return to a two-year community college or technical school for specialized training. In the absence of a degree, substantial specialized ex­ perience or expertise may be needed. 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 close supervision. Because technology changes so rapidly, programmers must continuously update their knowledge and skills by taking cours­ es sponsored by their employer or by software vendors, or of­ fered through local community colleges and universities. Certification and other qualifications. When hiring pro­ grammers, employers look for people with the necessary pro­ gramming skills who can think logically and pay close attention to detail. Programming calls for patience, persistence, and the ability to perform exacting analytical work, especially under pressure. Ingenuity and creativity are particularly important when programmers design solutions and test their work for potential failures. The ability to work with abstract concepts and to do technical analysis is especially important for systems programmers because they work with the software that controls the computer’s operation. Because programmers are expected to work in teams and in­ teract directly with users, employers want programmers who are able to communicate with non-technical personnel. Busi­ ness skills are also important, especially for those wishing to advance to managerial positions. 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, product vendors or software firms also offer certification and may require profes­ sionals who work with their products to be certified. Voluntary certification also is available through various other organiza­ tions. Advancement. For skilled workers who keep up to date with the latest technology, prospects for advancement are good. In large organizations, programmers may be promoted to lead pro­ grammer and be given supervisory responsibilities. Some ap­ plications programmers may move into systems programming  after they gain experience and take courses in systems software. With general business experience, programmers may become programmer-analysts or systems analysts, or may be promoted to managerial positions. Programmers with specialized knowl­ edge and experience with a language or operating system may work in research and development and may even become com­ puter software engineers. As employers increasingly contract with outside firms to do programming jobs, more opportunities should arise for experienced programmers with expertise in a specific area to work as consultants.  Employment Computer programmers held about 435,000 jobs in 2006. Pro­ grammers are employed in almost every industry, but the largest concentration is in computer systems design and related ser­ vices. Large numbers of programmers also work for software publishers, financial institutions, insurance carriers, educational institutions, government agencies, and management of compa­ nies and enterprises. Many computer programmers work inde­ pendently as consultants on a temporary or contract basis, some of whom are self-employed. About 17,000 computer program­ mers were self-employed in 2006.  Job Outlook Employment of computer programmers is expected to decline slowly. Job prospects should be best for those with a bachelor’s degree and experience with a variety of programming languag­ es and tools. Employment change. Employment of computer program­ mers is expected to decline slowly, decreasing by 4 percent from 2006 to 2016. The consolidation and centralization of systems and applications, developments in packaged software, advances in programming languages and tools, and the growing ability of users to design, write, and implement more of their own programs mean that more programming functions can be performed by other types of information workers, such as com­ puter software engineers. Another factor contributing to employment decline will be the offshore outsourcing of programming jobs. Because they can transmit their programs digitally, computer programmers can perform their job function from anywhere in the world, allow­ ing companies to employ workers in countries that have lower prevailing wages. Computer programmers are at a much higher risk of having their jobs outsourced abroad than are workers involved in more complex and sophisticated information tech­ nology functions, such as software engineering. Much of the work of computer programmers requires little localized or spe­ cialized knowledge and can be made routine once knowledge of a particular programming language is mastered—and computer programming languages have become known internationally.  Projections data from the National Employment Matrix Occupational Title Computer programmers..........................................  soc Code  Employment, 2006 435,000  Projected employment, 2016 417,000  Change, 2006-2016 Number Percent -18,000 -4  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Information Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Professional and Related Occupations 129  Nevertheless, employers will continue to need some local programmers, especially those who have strong technical skills and who understand an employer’s business and its program­ ming requirements. This means that programmers will have to keep abreast of changing programming languages and tech­ niques. Given the importance of networking and the expan­ sion of client/server, Web-based, and wireless environments, organizations will look for programmers who can support data communications and help implement business and intranet strategies. Demand for programmers with strong object-ori­ ented programming capabilities and technical specialization in areas such as client/server programming, wireless applications, multimedia technology, and graphic user interface likely will stem 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, a growing emphasis on cybersecurity will lead to increased demand for programmers who are familiar with digital security issues, and are skilled in using appropriate security technology. Job prospects. Although employment is projected to decline, numerous job openings will result from the need to replace pro­ grammers who leave the labor force or transfer to other occu­ pations. Prospects for these openings should be best for ap­ plicants with a bachelor’s degree and experience with a variety of programming languages and tools. The languages that are in demand today include C++, Java, and other object-oriented languages, as well as newer, domain-specific languages that ap­ ply to computer networking, database management, and Inter­ net application development. As technology evolves, however, and newer, more sophisticated tools emerge, programmers will need to update their skills in order to remain competitive. Ob­ taining vendor-specific or language-specific certification also can provide a competitive edge. Jobs for both systems and applications programmers should be most plentiful in computer consulting businesses. These establishments are part of the computer systems design and related services industry, which is projected to be among the fastest growing industries in the economy over the 2006 to 2016 period.  According to Robert Half Technology, a firm providing spe­ cialized staffing services, average annual starting salaries in 2007 ranged from $55,250 to $90,250 for applications develop­ ment programmers/analysts, and from $60,250 to $94,750 for software developers. Average starting salaries for mainframe systems programmers ranged from $52,250 to $70,750.  Related Occupations Other professional workers who deal extensively with data in­ clude computer software engineers, computer scientists and da­ tabase administrators, computer systems analysts, statisticians, mathematicians, engineers, commercial and industrial design­ ers, and operations 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 ar­ ea’s largest employers. Further information about computer careers is available from: y Association for Computing Machinery, 2 Penn Plaza, Suite 701, New York, NY 10121-0701. Internet: http://www.acm.org > Institute of Electrical and Electronics Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. NW., Washington, DC 20036-1992. Internet: http://www.computer.org y National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org y University of Washington Computer Science and Engineering Department, AC 101 Paul G. Allen Center, Box 352350, 185 Stevens Way, Seattle, WA 98195-2350. Internet: http://www.cs.washington.edu/WhyCSE  Computer Scientists and Database Administrators (0*NET 15-1011.00, 15-1061.00, 15-1081.00, 15-1099.99)  Earnings Median annual earnings of wage-and-salary computer program­ mers were $65,510 in May 2006. The middle 50 percent earned between $49,580 and $85,080 a year. The lowest 10 percent earned less than $38,460, and the highest 10 percent earned more than $106,610. Median annual earnings in the industries employing the largest numbers of computer programmers in May 2006 are shown below: Software publishers............................................................. $79,270 Computer systems design and relatedservices.................... 67,880 Management of companies and enterprises..........................67,170 Insurance carriers.................................................................. 65,650 According to the National Association of Colleges and Em­ ployers, starting salary offers for computer programmers aver­ aged $49,928 per year in 2007.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Significant Points  •  Education requirements range from an associate de­ gree to a doctoral degree.  •  Employment is expected to increase much faster than the average as organizations continue to expand their use of technology.  •  Workers must be able to learn new technologies quickly for these constantly evolving occupations.  Nature of the Work The rapid and widespread use of computers and information technology has generated a need for highly trained workers proficient in various job functions. These computer special­ ists include computer scientists, database administrators, and  130 Occupational Outlook Handbook  network systems and data communication analysts. Job tasks and occupational titles used to describe these workers evolve rapidly and continually, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employers. Computer scientists work as theorists, researchers, or inven­ tors. Their jobs are distinguished by the higher level of theoret­ ical expertise and innovation they apply to complex problems and the creation or application of new technology. The areas of computer science research range from complex theory to hard­ ware design to programming-language design. Some research­ ers work on multidisciplinary projects, such as developing and advancing uses of virtual reality, extending human-computer interaction, or designing robots. They may work on design teams with electrical engineers and other specialists. Computer science researchers employed by academic insti­ tutions (covered in the statement on teachers—postsecondary, elsewhere in the Handbook) have job functions that are similar in many ways to those employed by other organizations. In general, researchers in academic settings have more flexibility to focus on pure theory, while those working in other organi­ zations usually focus on projects that have the possibility of producing patents and profits. However, some researchers in non-academic settings have considerable latitude in determin­ ing the direction of their research. 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 needs and set up new computer databases. In many cases, database administrators must integrate data from outdated systems into a new system. They also test and coordinate modifications to the system when needed, and troubleshoot problems when they oc­ cur. An organization’s database administrator ensures the per­ formance of the system, understands the platform on which the database runs, and adds new users to the system. Because many databases are connected to the Internet, database administrators also must plan and coordinate security measures with network administrators. With the growing volume of sensitive data and the increasing interconnectedness of computer networks, data integrity, backup systems, and database security have become increasingly important aspects of the job of database adminis­ trators. Network systems and data communications analysts, also re­ ferred to as network architects, design, test, and evaluate sys­ tems such as local area networks (LANs), wide area networks (WANs), the Internet, intranets, and other data communications systems. Systems are configured in many ways and can range from a connection between 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 analysts perform network modeling, analysis, and planning, often requiring both hardware and software solu­ tions. For example, a network may involve the installation of several pieces of hardware, such as routers and hubs, wireless adaptors, and cables, while also requiring the installation and configuration of software, such as network drivers. Analysts   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  also may research related products and make necessary hard­ ware and software recommendations. Telecommunications specialists focus on the interaction be­ tween computer and communications equipment. These work­ ers design voice and data communication systems, supervise the installation of the systems, and provide maintenance and other services to clients after the systems are 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, web­ masters 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 dayto-day site creation and design. Work environment. Computer scientists and database admin­ istrators normally work in offices or laboratories in comfortable surroundings. They typically work about 40 hours a week, the same as many other professional or office workers. However, evening or weekend work may be necessary to meet deadlines or to solve specific problems. Telecommuting is increasingly common for many computer professionals as networks expand, allowing more work to be done from remote locations through modems, laptops, electronic mail, and the Internet. However,  jpMggj  WM  Computer scientists work at the very forefront of technology.  Professional and Related Occupations 131  some work still must be done in the office for security or other reasons. Like other workers who spend long periods in front of a computer terminal typing on a keyboard, computer scientists and database administrators are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome or cumulative trauma disorder.  Training, Other Qualifications, and Advancement Rapidly changing technology requires an increasing level of skill and education on the part of workers in these occupations. Employers look for professionals with an ever-broader back­ ground and range of skills, including technical knowledge and also communication and other interpersonal skills. Education and training. While there is no universally ac­ cepted way to prepare for a job as a network systems analyst, computer scientist, or database administrator, most employers place a premium on some formal college education. A bach­ elor’s degree is a prerequisite for many jobs; however, some jobs may require only a 2-year degree. Relevant work expe­ rience also is very important. For more technically complex jobs, persons with graduate degrees are preferred. Most com­ puter scientist positions require a Ph.D. degree, as their main job function is research. Computer scientists having only a bachelor’s or master’s degree are generally limited in their abil­ ity to advance. For database administrator and network systems and data communication analyst positions, most employers seek appli­ cants who have bachelor’s degrees in computer science, infor­ mation science, or management information systems (MIS). MIS programs usually are part of the business school or col­ lege and differ considerably from computer science programs, emphasizing business and management-oriented coursework and business computing courses. Employers increasingly pre­ fer applicants 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 degree or certificate is sufficient, although more advanced positions might require a computer-related bachelor’s degree. 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 geared more toward meeting the needs of local businesses and are more occupation specific than are 4-year degree programs. Some jobs may be better suit­ ed to the level of training that such programs offer. Employers usually look for people who have broad knowledge and expe­ rience related to computer systems and technologies, strong problem-solving and analytical skills, and good interpersonal skills. Courses in computer science or systems design offer good preparation for a job in these computer occupations. For jobs in a business environment, employers usually want sys­ tems 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 scientifi­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  cally oriented organizations. Art or graphic design skills may be desirable for webmasters or Web developers. Despite employers’ preference for those with technical de­ grees, individuals with post-secondary degrees in a variety of other subjects may find employment in these occupations. Giv­ en the rapid pace of technological change, a degree generally has more value as a demonstration of an individual’s ability to learn, rather than as a certification of a certain skill set. Gener­ ally speaking, coursework in computer science and an under­ graduate degree are sufficient qualifications, especially if the applicant has a reasonable amount of experience. Certification and other qualifications. Computer scientists and database administrators 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 also is important. Although com­ puter specialists sometimes work independently, they frequent­ ly work in teams on large projects. As a result, they must be able to communicate effectively with computer personnel, such as programmers and managers, as well as with users or other staff who may have no technical computer background. Jobseekers can enhance their employment opportunities by earning certifications, most of which are offered through pri­ vate companies, with many related to specific products. Many employers regard these certifications as the industry standard. For example, one method of acquiring enough knowledge to get a job as a database administrator is to become certified in database management with a certain software package. Volun­ tary certification also is available through various organizations associated with computer specialists. Professional certification may afford a jobseeker a competitive advantage. Because technology is so closely connected to the function­ ing of businesses, many workers in these occupations come from elsewhere in the business or industry to become computer specialists. This background can be very useful, in that it helps them to better understand how their networking and database tools are being used within the organization. Advancement. Computer scientists may advance into mana­ gerial or project leadership positions. Many having advanced degrees choose to leave private industry for academic posi­ tions. Database administrators may advance into managerial positions, such as chief technology officer, on the basis of their experience managing data and enforcing security. Computer specialists with work experience and considerable expertise in a particular subject or a certain application may find lucrative opportunities as independent consultants or may choose to start their own computer 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 so­ cieties.  Employment Computer scientists and database administrators held about 542,000 jobs in May 2006, including about 58,000 who were  132 Occupational Outlook Handbook  self-employed. Employment was distributed among the de­ tailed occupations as follows: Network systems and data communication analysts...........262,000 Computer specialists, all other.............................................136,000 Database administrators.......................................................119,000 Computer and information scientists, research.....................25,000 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 commer­ cial use of computers on a contract basis, including custom computer programming services; computer systems integration design services; computer facilities management services, in­ cluding 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 scientists and database administrators are employed by Internet service providers; Web search portals; and data pro­ cessing, hosting, and related services firms. Others work for government, manufacturers of computer and electronic prod­ ucts, insurance companies, financial institutions, and universi­ ties. A growing number of computer specialists, such as network and data communications analysts, are employed on a tempo­ rary or contract basis; many of these individuals are self-em­ ployed, working independently as contractors or consultants. For example, a company installing a new computer system may need the services of several network systems and data commu­ nication analysts just to get the system running. Because not all of the analysts would be needed once the system is func­ tioning, the company might contract for such employees with a temporary help agency or consulting firm, or with the network systems analysts themselves. Such jobs may last from sever­ al months to 2 years or more. This growing practice enables companies to bring in people with the exact skills they need to complete a particular project, rather than having to spend time or money training or retraining existing workers. Often, expe­ rienced consultants then train a company’s in-house staff as a project develops.  Job Outlook Computer scientists and database administrators are projected to be one of the fastest growing occupations over the next decade. Strong employment growth combined with a limited supply of  qualified workers will result in excellent employment prospects for this occupation and a high demand for their skills. Employment change. The computer scientists and database administrators occupation is expected to grow 37 percent from 2006 to 2016, much faster than average for all occupations. Employment of these computer specialists is expected to grow as organizations continue to adopt and integrate increasingly sophisticated technologies. Job increases will be driven by very rapid growth in computer systems design and related services, which is projected to be one of the fastest growing industries in the U.S. economy. The demand for networking to facilitate the sharing of infor­ mation, 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 scientists and database administrators. Firms will continue to seek out computer specialists who are able to implement the latest technologies and are able to apply them to meet the needs of businesses as they struggle to main­ tain a competitive advantage. As computers continue to become more central to business functions, more sophisticated and complex technology is being implemented across all organizations, fueling demand for com­ puter scientists and database administrators. There is growing demand for network systems and data communication analysts to help firms maximize their efficiency with available technol­ ogy. Expansion of electronic commerce—doing business on the Internet—and the continuing need to build and maintain da­ tabases that store critical information on customers, inventory, and projects are fueling demand for database administrators familiar with the latest technology. Because of the increasing reliance on the Internet among businesses, information security is an increasing concern. The development of new technologies leads to demand for various kinds of workers. The expanding integration of Inter­ net technologies into businesses, for example, has resulted in a growing need for specialists who can develop and support Internet and intranet applications. The growth of electronic commerce means that more establishments use the Internet to conduct their business online. It also means more security spe­ cialists are needed to protect their systems. The spread of such new technologies translates into a need for information tech­ nology professionals who can help organizations use technol­ ogy to communicate with employees, clients, and consumers. Explosive growth in these areas also is expected to fuel demand for specialists who are knowledgeable about network, data, and communications security.  Projections data from the National Employment Matrix Occupational Title occupational title ----------------- ;— .2016Number Percent Computer scientists and database administrators..............................  SOC C(jdc  Employment,  ijm  Projected employment,  Change, 2006-2016  —  542,000  742,000  200 000  37  Computer and information scientists, research.............................. Database administrators....................................................................  15-1011 15-1061  25,000 119,000  31,000 154^000  5,400 34*000  22 29  Network systems and data communications analysts................... —Computer specialists, all other.........................................................  15-1081 15-1099  262,000 402,000 136,000157,000  ] 40,000 21,00015_  53  NOTE. Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Professional and Related Occupations 133  Job prospects. Computer scientists and database adminis­ trators should continue to enjoy excellent job prospects. As technology becomes more sophisticated and complex, how­ ever, these positions will demand a higher level of skill and expertise from their employees. Individuals with an advanced degree in computer science or computer engineering or with an MBA with a concentration in information systems should enjoy favorable employment prospects. College graduates with a bachelor’s degree in computer science, computer engineering, information science, or MIS also should enjoy favorable pros­ pects, particularly if they have supplemented their formal edu­ cation with practical experience. Because employers continue to seek computer specialists who can combine strong technical skills with good business skills, individuals with a combination of experience inside and outside the IT arena will have the best job prospects. In addition to growth, many job openings will arise from the need to replace workers who move into managerial positions or other occupations or who leave the labor force.  Earnings Median annual earnings of computer and information scientists, research, were $93,950 in May 2006. The middle 50 percent earned between $71,930 and $118,100. The lowest 10 percent earned less than $53,590, and the highest 10 percent earned more than $144,880. Median annual earnings of computer and information scientists employed in computer systems design and related services in May 2006 were $95,340. Median annual earnings of database administrators were $64,670 in May 2006. The middle 50 percent earned between $48,560 and $84,830. The lowest 10 percent earned less than $37,350, and the highest 10 percent earned more than $103,010. In May 2006, median annual earnings of database administra­ tors employed in computer systems design and related services were $72,510, and for those in management of companies and enterprises, earnings were $67,680. Median annual earnings of network systems and data com­ munication analysts were $64,600 in May 2006. The middle 50 percent earned between $49,510 and $82,630. The lowest 10 percent earned less than $38,410, and the highest 10 percent earned more than $101,740. Median annual earnings in the in­ dustries employing the largest numbers of network systems and data communications analysts in May 2006 are shown below: Wired telecommunications carriers.................................... $72,480 Management of companies and enterprises..........................68,490 Management, scientific, and technical consulting services.............................................................. 67,830 Computer systems design and related services.....................67,080 State government................................................................... 52,020 Median annual earnings of all other computer specialists were $68,570 in May 2006. Median annual earnings of all oth­ er computer specialists employed in computer systems design and related services were $67,370, and, for those in manage­ ment of companies and enterprises, earnings were $63,610 in May 2006.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Robert Half International, a firm providing specialized staff­ ing services, noted the following salary ranges for computerrelated occupations in their 2007 Salary Guide:  Database manager.................................................$84,750 - $116,000 Network architect........................................................ 78,000 - 112,250 Database developer.....................................................73,500 - 103,000 Senior web developer................................................. 71,000 - 102,000 Database administratort.............................................70,250 - 102,000 Network manager..........................................................68,750 - 93,000 Web developer.............................................................................54,750 -81,500 LAN/WAN administrator..........................................................51,000 -71,500 Web administrator......................................................................49,750 -74,750 Web designer............................................................................... 47,000 -71,500 Telecommunications specialist............................................... 47,500 -69,500  Related Occupations Others who work with large amounts of data are computer pro­ grammers, computer software engineers, computer and infor­ mation systems managers, engineers, mathematicians, statisti­ cians, and actuaries.  Sources of Additional Information Further information about computer careers is available from: y Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org y Institute of Electrical and Electronics Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. NW„ Washington, DC 20036-1992. Internet: http://www.computer.org y Software & Information Industry Association, 1090 Vermont Ave. NW., 6th floor, Washington, DC 20005. Internet: http://www.siia.net  Computer Software Engineers (0*NET 15-1031.00, 15-1032.00)  Significant Points  •  Computer software engineers are one of the occupa­ tions projected to grow the fastest and add the most new jobs over the 2006-16 decade.  •  Excellent job prospects are expected for applicants with at least bachelor’s degree in computer engineer­ ing or computer science and with practical work ex­ perience. • Computer software engineers must continually strive to acquire new skills in conjunction with the rapid changes that occur in computer technology. Nature of the Work Computer software engineers apply the principles of computer science and mathematical analysis to the design, development, testing, and evaluation of the software and systems that make  134 Occupational Outlook Handbook  computers work. The tasks performed by these workers evolve quickly, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employ­ ers. (A separate section on computer hardware engineers ap­ pears in the engineers section of the Handbook.) Software engineers can be involved in the design and devel­ opment of many types of software, including computer games, word processing and business applications, operating systems and network distribution, and compilers, which convert pro­ grams to machine language for execution on a computer. Computer software engineers begin by analyzing users’ needs, and then design, test, and develop software to meet those needs. During this process they create the detailed sets of instructions, called algorithms, that tell the computer what to do. They also may be responsible for converting these instructions into a com­ puter language, a process called programming or coding, but this usually is the responsibility of computer programmers. (A separate section on computer programmers appears elsewhere in the Handbook.) Computer software engineers must be ex­ perts in operating systems and middleware to ensure that the underlying systems will work properly. 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 ap­ plications. Computer systems software engineers coordinate the con­ struction, maintenance, and expansion of an organization’s computer systems. Working with the organization, they coor­ dinate each department’s computer needs—ordering, inventory, billing, and payroll recordkeeping, for example—and make suggestions about its technical direction. They also might set up the organization’s intranets—networks that link computers within the organization and ease communication among various departments.  ------------  IftW  Computer software engineers design, create, and modify com­ puter applications and systems.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Systems software engineers also work for companies that configure, implement, and install the computer systems of other organizations. These workers may be members of the market­ ing or sales staff, serving as the primary technical resource for sales workers. They also may help with sales and provide cus­ tomers with technical support. Since the selling of complex computer systems often requires substantial customization to meet the needs of the purchaser, software engineers help to identify and explain needed changes. In addition, systems soft­ ware engineers are responsible for ensuring security across the systems they are configuring. 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 to release a product. Work environment. Computer software engineers normally work in clean, comfortable offices or in laboratories in which computer equipment is located. Software engineers who work for software vendors and consulting firms frequently travel overnight to meet with customers. Telecommuting is also be­ coming more common, allowing workers to do their jobs from remote locations. Most software engineers work at least 40 hours a week, but about 17 percent work more than 50 hours a week. Software engineers also may have to work evenings or weekends to meet deadlines or solve unexpected technical problems. Like other workers who spend long hours typing at a com­ puter, software engineers are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.  Training, Other Qualifications, and Advancement Most employers prefer applicants who have at least a bachelor’s degree and experience with a variety of computer systems and technologies. In order to remain competitive, computer soft­ ware engineers must continually strive to acquire the latest technical skills. Advancement opportunities are good for those with relevant experience. Education and training. Most employers prefer applicants who have at least a bachelor’s degree and broad knowledge of, and experience with, a variety of computer systems and tech­ nologies. The usual college major for applications software en­ gineers is computer science or software engineering. Systems software engineers often study computer science or computer information systems. Graduate degrees are preferred for some of the more complex jobs. In 2006, about 80 percent of workers had a bachelor’s degree or higher. Academic programs in software engineering may offer the program as a degree option or in conjunction with computer science degrees. Because of increasing emphasis on computer security, software engineers with advanced degrees in areas such as mathematics and systems design will be sought after by software developers, government agencies, and consulting firms. Students seeking software engineering jobs enhance their employment opportunities by participating in internships or co­ ops. These experiences provide students with broad knowledge and experience, making them more attractive to employers. In­  Professional and Related Occupations 135  experienced college graduates may be hired by large computer and consulting firms that train new employees in intensive, company-based programs. Certification and other qualifications. Systems software vendors offer certification and training programs, but most training authorities say that program certification alone is not sufficient for the majority of software engineering jobs. People 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 technology advances, employers will need workers with the latest skills. Computer software engineers must continually strive to acquire new skills if they wish to remain in this dynam­ ic field. To help keep up with changing technology, workers may take continuing education and professional development seminars offered by employers, software vendors, colleges and universities, private training institutions, and professional com­ puting societies. Computer software engineers also need skills related to the industry in which they work. Engineers working for a bank, for example, should have some expertise in finance so that they understand banks’ computer needs. Advancement. As with most occupations, advancement op­ portunities for computer software engineers increase with ex­ perience. Entry-level computer software engineers are likely to test designs. As they become more experienced, engineers may begin helping to design and develop software. Eventually, they may advance to become a project manager, manager of information systems, or chief information officer, especially if they have business skills and training. Some computer software engineers with several years of experience or expertise find lu­ crative opportunities working as systems designers or indepen­ dent consultants. Employment Computer software engineers held about 857,000 jobs in 2006. Approximately 507,000 were computer applications software engineers, and about 350,000 were computer systems software engineers. Although they are employed in most industries, the largest concentration of computer software engineers—more than 29 percent—is in computer systems design and related services. Many computer software engineers also work for es­ tablishments in other industries, such as software publishers, government agencies, manufacturers of computers and related electronic equipment, financial institutions, insurance provid­ ers, and management of companies and enterprises.  An increasing number of computer software engineers work as independent consultants on a temporary or contract basis, many of whom are self-employed. About 17,000 computer software engineers were self-employed in 2006. Job Outlook Job prospects should be excellent, as computer software engi­ neers are expected to be among the fastest-growing occupations through the year 2016. Employment change. Employment of computer software engineers is projected to increase by 38 percent over the 2006 to 2016 period, which is much faster than the average for all occupations. This occupation will generate about 324,000 new jobs, over the projections decade, one of the largest employ­ ment increases of any occupation. Employment growth will result as businesses and other or­ ganizations adopt and integrate new technologies and seek to maximize the efficiency of their computer systems. Compe­ tition among businesses will continue to create incentive for sophisticated technological innovations, and organizations will need more computer software engineers to implement these changes. Demand for computer software engineers will also increase as computer networking continues to grow. For example, ex­ panding Internet technologies have spurred demand for com­ puter software engineers who can develop Internet, intranet, and World Wide Web applications. Likewise, electronic dataprocessing systems in business, telecommunications, govern­ ment, and other settings continue to become more sophisticated and complex. Implementing, safeguarding, and updating com­ puter systems and resolving problems will fuel the demand for growing numbers of systems software engineers. New growth areas will also continue to arise from rapidly evolving technologies. The increasing uses of the Internet, the proliferation of Web sites, and mobile technology such as 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. In addition, information security concerns have given rise to new software needs. Concerns over “cyber security” should result in businesses and government continuing to invest heav­ ily in software that protects their networks and vital electronic infrastructure from attack. The expansion of this technology in the next 10 years will lead to an increased need for computer engineers to design and develop the software and systems to run these new applications and integrate them into older systems.  Projections data from the National Employment Matrix Occupational Title Computer software engineers................................... Computer software engineers, applications......... Computer software engineers, systems software.  SOC Code 15-1030 15-1031 15-1032  Employment, 2006 857.000 507.000 350.000  Projected employment, 2016 1,181,000 733.000 449.000  Change, 2006-2016 Number Percent 38 324.000 45 226.000 28 99,000  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  _____________________________________________________________  136 Occupational Outlook Handbook  As with other information technology jobs, outsourcing of software development to other countries may temper somewhat employment growth of computer software engineers. Firms may look to cut costs by shifting operations to foreign coun­ tries with lower prevailing wages and highly educated workers. Jobs in software engineering are less prone to being offshored than are jobs in other computer specialties, however, because software engineering requires innovation and intense research and development. Job prospects. As a result of rapid employment growth over the 2006 to 2016 decade, job prospects for computer software engineers should be excellent. Those with practical experience and at least a bachelor’s degree in computer engineering or com­ puter science should have the best opportunities. Employers will continue to seek computer professionals with strong pro­ gramming, systems analysis, interpersonal, and business skills. In addition to jobs created through employment growth, many job openings will result from the need to replace workers who move into managerial positions, transfer to other occupations, or leave the labor force. Consulting opportunities for computer software engineers also should continue to grow as businesses seek help to manage, upgrade, and customize their increasingly complicated computer systems.  Earnings In May 2006, median annual earnings of wage-and-salary computer applications software engineers were $79,780. The middle 50 percent earned between $62,830 and $98,470. The lowest 10 percent earned less than $49,350, and the highest 10 percent earned more than $119,770. Median annual earnings in the industries employing the largest numbers of computer ap­ plications software engineers in May 2006 were as follows: Software publishers............................................................ $84,560 Computer systems design and related services..................78,850 Management, scientific, and technical consulting services............................................................. 78,850 Management of companies and enterprises......................... 78,580 Insurance carriers................................................................. 74 230 In May 2006, median annual earnings of wage-and-salary computer systems software engineers were $85,370. The middle 50 percent earned between $67,620 and $105,330. The lowest 10 percent earned less than $53,580, and the highest 10 percent earned more than $125,750. Median annual earnings in the industries employing the largest numbers of computer systems software engineers in May 2006 are as follows: Research and development in the physical, engineering, and life sciences.......................... $97,220 Scientific research and development services.......................97,180 Computer and peripheral equipment manufacturing............93,240 Software publishers............................................................... 87,450 Computer systems design and related services.....................84,660 Data processing, hosting, and related services..................... 78,270 According to the National Association of Colleges and Em­ ployers, starting salary offers for graduates with a bachelor’s degree in computer engineering averaged $56,201 in 2007.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Starting salary offers for graduates with a bachelor’s degree in computer science averaged $53,396. According to Robert Half Technology, starting salaries for software engineers in software development ranged from $66,500 to $99,750 in 2007. For network engineers, starting salaries ranged from $65,750 to $90,250.  Related Occupations Other workers who use mathematics and logic extensively include computer systems analysts, computer scientists and database administrators, computer programmers, computer hardware engineers, computer support specialists and systems administrators, engineers, commercial and industrial designers, statisticians, mathematicians, and actuaries.  Sources of Additional Information Additional information on a career in computer software engi­ neering is available from the following organizations: > Association for Computing Machinery (ACM), 2 Penn Plaza, Suite 701, NY 10121-0701. Internet: http://www.acm.org y Institute of Electronics and Electrical Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. N.W., Washington, DC 20036-1992. Internet: http://www.computer.org y National Workforce Center for Emerging Technologies, 3000 Landerholm Circle S.E., Bellevue, WA 98007. Internet: http://www.nwcet.org y University of Washington Computer Science and Engineering Department, AC101 Paul G. Allen Center, Box 352350, 185 Stevens Way, Seattle, WA 98195-2350. Internet: http ://www.cs.washington.edu/WhyCSE  Computer Support Specialists and Systems Administrators (0*NET 15-1041.00, 15-1071.00, 15-1071.01)  Significant Points  •  • •  Growth in computer support specialist jobs will be about as fast as the average, while growth in network and computer system administrator jobs will be much faster than average There are many paths of entry to these occupations. Job prospects should be best for college graduates with relevant skills and experience; certifications and practical experience are essential for people without degrees.  Nature of the Work In the last decade, computers have become an integral part of ev­ eryday life at home, work, school, and nearly everywhere else. Of course, almost every computer user encounters a problem occasionally, whether it is the annoyance of a forgotten pass­ word or the disaster of a crashing hard drive. The explosive use  Professional and Related Occupations 137  of computers has created demand for specialists who provide advice to users, as well as for the day-to-day administration, maintenance, and support of computer systems and networks. Computer support specialists provide technical assistance, support, and advice to customers and other users. This occu­ pational 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 by using auto­ mated diagnostic programs, and resolve recurring difficulties. Support specialists work either within a company that uses computer systems or directly for a computer hardware or soft­ ware vendor. Increasingly, these specialists work for help-desk or support services firms, for which they provide computer sup­ port to clients on a contract basis. Technical support specialists respond to inquiries from their organizations’ computer users and may run automatic diagnos­ tics programs to resolve problems. They also install, modify, clean, and repair computer hardware and software. In addition, they may write training manuals and train computer users in how to use new computer hardware and software. These work­ ers also oversee the daily performance of their company’s com­ puter systems and evaluate how useful software programs are. Help-desk technicians respond to telephone calls and e-mail messages from customers looking for help with computer prob­ lems. In responding to these inquiries, 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. Help-desk technicians deal directly with customer issues and companies value them as a source of feedback on their products. They 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 and computer systems administrators design, install, and support an organization’s computer systems. They are re­ sponsible for local-area networks (LAN), wide-area networks (WAN), network segments, and Internet and intranet systems. They work in a variety of environments, including professional offices, small businesses, government organizations, and large corporations. They maintain network hardware and software, analyze problems, and monitor networks to ensure their avail­ ability to system users. These workers gather data to identify customer needs and then use the information to identify, inter­ pret, and evaluate system and network requirements. Admin­ istrators also may plan, coordinate, and implement network security measures. Systems administrators are responsible for maintaining net­ work efficiency. They ensure that the design of an organiza­ tion’s computer system allows all of the components, including computers, the network, and software, to work properly to­ gether. Furthermore, they monitor and adjust the performance of existing networks and continually survey the current com­ puter site to determine future network needs. Administrators also troubleshoot problems reported by users and by automated network monitoring systems and make recommendations for future system upgrades.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ■■■■■ Computer support specialists provide technical assistance, sup­ port, and advice to computer users. In some organizations, computer security specialists may plan, coordinate, and implement the organization’s information security. These workers educate users about computer security, install security software, monitor networks for security breach­ es, respond to cyber attacks, and, in some cases, gather data and evidence to be used in prosecuting cyber crime. The responsi­ bilities of computer security specialists have increased in recent years as cyber attacks have become more common. This and other growing specialty occupations reflect an increasing em­ phasis on client-server applications, the expansion of Internet and intranet applications, and the demand for more end-user support.  Work environment. Computer support specialists and sys­ tems administrators normally work in well-lighted, comfortable offices or computer laboratories. They usually work about 40 hours a week, but if their employer requires computer support over extended hours, they may be “on call” for rotating evening or weekend work. Overtime may be necessary when unex­ pected technical problems arise. Like other workers who type on a keyboard for long periods, computer support specialists and systems administrators are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome. Computer support specialists and systems administrators constantly interact with customers and fellow employees as they answer questions and give 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 provide tech­ nical support from remote locations. This capability would re­ duce or eliminate travel to the customer’s workplace. Systems administrators also can administer and configure networks and servers remotely, although this practice is not as common as it is among computer support specialists.  Training, Other Qualifications, and Advancement A college degree is required for some computer support spe­ cialist positions, but certification and relevant experience may be sufficient for others. A bachelor’s degree is required for many network and computer systems administrator positions.  138 Occupational Outlook Handbook  For both occupations, strong analytical and communication skills are essential. Education and training. Due to the wide range of skills re­ quired, there are many paths of entry to a job as a computer sup­ port specialist or systems administrator. Training requirements for computer support specialist positions vary, but many em­ ployers prefer to hire applicants with some formal college edu­ cation. A bachelor’s degree in computer science or information systems is a prerequisite for some jobs; other jobs, however, may require only a computer-related associate degree. And for some jobs, relevant computer experience and certifications may substitute for formal education. For systems administrator jobs, many employers seek applicants with bachelor’s degrees, al­ though not necessarily in a computer-related field. A number of companies are becoming more flexible about re­ quiring a college degree for support positions. In the absence of a degree, however, certification and practical experience are es­ sential. Certification training programs, offered by a variety of vendors and product makers, may help some people to qualify for entry-level positions. Other qualifications. People interested in becoming a com­ puter support specialist 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 employees requires computer support special­ ists and systems administrators to communicate effectively on paper, via e-mail, over the phone, or in person. Strong writing skills are useful in preparing manuals for employees and cus­ tomers. Advancement. Beginning computer support specialists usu­ ally work for organizations that deal directly with customers or in-house users. Support specialists may advance into positions in which they use what they have learned from customers to im­ prove the design and efficiency of future products. Job promo­ tions usually depend more on performance than on formal edu­ cation. Eventually, some computer support specialists become software engineers, designing products rather than assisting users. Computer support specialists in hardware and software companies often enjoy great upward mobility; advancement sometimes comes within months of becoming employed. Entry-level network and computer systems administrators are involved in routine maintenance and monitoring of computer systems, typically working behind the scenes in an organiza­ tion. After gaining experience and expertise, they often are able to advance to more senior-level positions. For example, senior network and computer systems administrators may make pre­ sentations to executives and managers on the security of the  company computer 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, adminis­ trators may become software engineers involved in system and network design. As technology continues to improve, computer support spe­ cialists and systems administrators must strive to acquire new skills. Many continuing education programs are provided by employers, hardware and software vendors, colleges and uni­ versities, and private training institutions. Professional devel­ opment seminars offered by computing services firms also can enhance skills and advancement opportunities.  Employment Computer support specialists and systems administrators held about 862,000 jobs in 2006. Of these, approximately 552,000 were computer support specialists and about 309,000 were network and computer systems administrators. Although they worked in a wide range of industries, about 23 percent of all computer support specialists and systems administrators were employed in professional, scientific, and technical services industries, principally computer systems design and related services. Substantial numbers of these workers were also em­ ployed in administrative and support services companies, finan­ cial institutions, insurance companies, government agencies, educational institutions, software publishers, telecommunica­ tions organizations, health care organizations, and management of companies and enterprises. Employers of computer support specialists and systems ad­ ministrators range from startup companies to established in­ dustry leaders. As computer networks become an integral part of business, industries not typically associated with comput­ ers—such as construction—increasingly need computer sup­ port workers.  Job Outlook Employment of computer support specialists and systems ad­ ministrators is expected to increase faster than the average. Job prospects should be best for those with a college degree and relevant experience. Employment change. Employment of computer support spe­ cialists and systems administrators is expected to increase by 18 percent from 2006 to 2016, which is much faster than the aver­ age for all occupations. In addition, this occupation is expected to add 155,000 jobs over the projection decade. Employment of computer support specialists is expected to increase by 13 percent from 2006 to 2016, which is about as fast as the average for all occupations. Demand for these workers  Projections data from the National Employment Matrix Projected Change, employment, 2006-2016 2016 Number Percent Computer support specialists and systems administrators........ 862,000 1,016,000 155,000 18 Computer support specialists........................ 552.000 624.000 71.000 13 Network and computer systems administrators...... .... 15-1071 309.000 393.000 83.000 77 NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational InformaOccupational Title  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SOC Code  Employment, 2006  will result as organizations and individuals continue to adopt in­ creasingly sophisticated technology. Job growth will continue to be driven by the ongoing expansion of the computer system design and related services industry, which is projected to re­ main one of the fastest-growing industries in the U.S. economy. Growth will not be as explosive as during the previous decade, however, because the information technology industry is ma­ turing and because some of these jobs are expected to be out­ sourced offshore where prevailing wages are lower. Physical location is not as important for computer support specialists as it is for other occupations because these workers can provide assistance remotely and support services are provided around the clock across time zones. Job growth among computer support specialists reflects the rapid evolution of technology. As computers and software become more complex, support specialists will be needed to provide technical assistance to customers and other users. The adoption of new mobile technologies, such as the wire­ less Internet, will continue to create a need for these workers to familiarize and educate computer users. Consulting jobs for computer support specialists also should continue to increase as businesses seek help managing, upgrading, and customizing ever more complex computer systems. Employment of network and computer systems administrators is expected to increase by 27 percent from 2006 to 2016, which is much faster than the average for all occupations. Computer networks have become an integral part of business, and demand for these workers will increase as firms continue to invest in new technologies. The wide use of electronic commerce and the increasing adoption of mobile technologies mean that more establishments will use the Internet to conduct business online. This growth translates into a need for systems administrators who can help organizations use technology to communicate with employees, clients, and consumers. Demand for computer security specialists will grow as busi­ nesses and government continue to invest heavily in “cyber security,” protecting vital computer networks and electronic infrastructures from attack. The information security field is expected to generate many new system administrator jobs over the next decade as firms across all industries place a high prior­ ity on safeguarding their data and systems. Employment of network and computer systems administra­ tors, however, may be tempered somewhat by offshore outsourc­ ing, as firms transfer work to countries with lower-prevailing wages and highly skilled work forces. Systems administrators may increasingly be able to manage computer systems from re­ mote locations as technology advances. Job prospects. Job prospects should be best for college grad­ uates who possess the latest technological skills, particularly graduates who have supplemented their formal education with relevant work experience. Employers will continue to seek computer specialists who possess strong fundamental computer skills combined with good interpersonal and communication skills. Due to the demand for computer support specialists and systems administrators over the next decade, those who have strong computer skills but do not have a college degree should continue to qualify for some entry-level positions.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Professional and Related Occupations 139  Earnings Median annual earnings of wage-and-salary computer support specialists were $41,470 in May 2006. The middle 50 percent earned between $32,110 and $53,640. The lowest 10 percent earned less than $25,290, and the highest 10 percent earned more than $68,540. Median annual earnings in the industries employing the largest numbers of computer support specialists in May 2006 were as follows: Software publishers............................................................. $46,270 Management of companies and enterprises......................... 42,770 Computer systems design and related services.................... 42,510 Colleges, universities, and professional schools.................. 40,130 Elementary and secondary schools...................................... 37,880 Median annual earnings of wage-and-salary network and computer systems administrators were $62,130 in May 2006. The middle 50 percent earned between $48,520 and $79,160. The lowest 10 percent earned less than $38,610, and the highest 10 percent earned more than $97,080. Median annual earn­ ings in the industries employing the largest numbers of network and computer systems administrators in May 2006 were as fol­ lows: Wired telecommunications carriers................................... $70,790 Computer systems design and related services....................66,680 Management of companies and enterprises......................... 66,020 Colleges, universities, and professional schools.................. 54,590 Elementary and secondary schools...................................... 53,750 According to Robert Half Technology, starting salaries in 2007 ranged from $27,500 to $37,000 for help-desk work­ ers. Starting salaries for desktop support analysts ranged from $46,500 to $65,250. For systems administrators, starting sala­ ries ranged from $50,000 to $75,750.  Related Occupations Other computer specialists include computer programmers, computer software engineers, computer systems analysts, and computer scientists and database administrators. Other workers who respond to customer inquiries are customer service repre­ sentatives.  Sources of Additional Information For additional information about a career as a computer support specialist, contact: > Association of Support Professionals, 122 Barnard Ave., Watertown, MA 02472. For additional information about a career as a systems admin­ istrator, contact: > The League of Professional System Administrators, 15000 Commerce Parkway, Suite C, Mount Laurel, NJ 08054. Internet: http://lopsa.org/ > National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  140 Occupational Outlook Handbook  Computer Systems Analysts (0*NET 15-1051.00)  Significant Points  • Employers generally prefer applicants who have at least a bachelor’s degree in computer science, infor­ mation science, or management information systems (MIS).  •  •  Employment is expected to increase much faster than the average and more new jobs are expected to arise than in all but a few other occupations. Very good job prospects are expected as organizations continue to adopt increasingly sophisticated technolo­ gies.  Nature of the Work All organizations rely on computer and information technology to conduct business and operate efficiently. Computer systems analysts help organizations to use technology effectively and to incorporate rapidly changing technologies into their exist­ ing systems. The work of computer systems analysts evolves rapidly, reflecting new areas of specialization and changes in technology. Computer systems analysts solve computer problems and use computer technology to meet the needs of an organization. They may design and develop new computer systems by choos­ ing and configuring hardware and software. They may also devise ways to apply existing systems’ resources to additional tasks. Most systems analysts work with specific types of com­ puter systems—for example, business, accounting, or financial systems or scientific and engineering systems—that vary with the kind of organization. Analysts who specialize in helping an organization select the proper system software and infrastruc­ ture are often called system architects. Analysts who special­ ize in developing and fine-tuning systems often are known as systems designers. To begin an assignment, systems analysts consult managers and users to define the goals of the system. Analysts then de­ sign a system to meet those goals. They specify the inputs that the system will access, decide how the inputs will be processed, and format the output to meet users’ needs. Analysts use tech­ niques such as structured analysis, data modeling, information engineering, mathematical model building, sampling, and cost accounting to make sure their plans are efficient and complete. They also may prepare cost-benefit and retum-on-investment analyses to help management decide whether implementing the proposed technology would be financially feasible. When a system is approved, systems analysts determine what computer hardware and software will be needed to set it up. They coordinate tests and observe the initial use of the system to ensure that it performs as planned. They prepare specifica­ tions, flow charts, and process diagrams for computer program­ mers to follow; then they work with programmers to “debug,” or eliminate errors, from the system. Systems analysts who do   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Computer systems analysts use information technology to help meet the needs of an organization. more in-depth testing may be called software quality assurance analysts. In addition to running tests, these workers diagnose problems, recommend solutions, and determine whether pro­ gram requirements have been met. In some organizations, programmer-analysts design and up­ date the software that runs a computer. They also create cus­ tom applications tailored to their organization’s tasks. Because they are responsible for both programming and systems analy­ sis, these workers must be proficient in both areas. (A separate section on computer programmers appears elsewhere in the Handbook.) As this dual proficiency becomes more common, analysts are increasingly working with databases, object-ori­ ented programming languages, client-server applications, and multimedia and Internet technology. One challenge created by expanding computer use is the need for different computer systems to communicate with each other. Systems analysts work to make the computer systems within an organization, or across organizations, compatible so that infor­ mation can be shared. Many systems analysts are involved with these “networking” tasks, connecting all the computers inter­ nally, in an individual office, department, or establishment, or externally, as when setting up e-commerce networks to facili­ tate business among companies. Work environment. Computer systems analysts work in of­ fices or laboratories in comfortable surroundings. They usually work about 40 hours a week—about the same as many other professional or office workers. Evening or weekend work may be necessary, however, to meet deadlines or solve specific prob­ lems. Many analysts telecommute, using computers to work from remote locations. Like other workers who spend long periods typing on a com­ puter, computer systems analysts are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome or cumulative trauma disorder.  Training, Other Qualifications, and Advancement Training requirements for computer systems analysts vary de­ pending on the job, but many employers prefer applicants who have a bachelor’s degree. Relevant work experience also is very important. Advancement opportunities are good for those with the necessary skills and experience.  Professional and Related Occupations 141  Education and training. When hiring computer systems analysts, employers usually prefer applicants who have at least a bachelor’s degree. For more technically complex jobs, people with graduate degrees are preferred. The level and type of education that employers require reflects changes in technology. Employers often scramble to find work­ ers capable of implementing the newest technologies. Workers with formal education or experience in information security, for example, are currently in demand because of the growing use of computer networks, which must be protected from threats. For jobs in a technical or scientific environment, employers often seek applicants who have at least a bachelor’s degree in a technical field, such as computer science, information science, applied mathematics, engineering, or the physical sciences. For jobs in a business environment, employers often seek applicants with at least a bachelor’s degree in a business-related field such as management information systems (MIS). Increasingly, em­ ployers are seeking individuals who have a master’s degree in business administration (MBA) with a concentration in infor­ mation systems. Despite the preference for technical degrees, however, peo­ ple who have degrees in other majors may find employment as systems analysts if they also have technical skills. Courses in computer science or related subjects combined with practical experience can qualify people for some jobs in the occupation. Employers generally look for people with expertise relevant to the job. For example, systems analysts who wish to work for a bank should have some expertise in finance, and systems ana­ lysts who wish to work for a hospital should have some knowl­ edge of health management. Technological advances come so rapidly in the computer field that continuous study is necessary to remain competitive. Em­ ployers, hardware and software vendors, colleges and universi­ ties, and private training institutions offer continuing education to help workers attain the latest skills. Additional training may come from professional development seminars offered by pro­ fessional computing societies. Other qualifications. Employers usually look for people who have broad knowledge and experience related to computer systems and technologies, strong problemsolving and analyti­ cal skills, and the ability to think logically. In addition, because they often deal with a number of tasks simultaneously, the abil­ ity to concentrate and pay close attention to detail is important. Although these workers sometimes work independently, they frequently work in teams on large projects. Therefore, they must have good interpersonal skills and be able to communicate effectively with computer personnel, users, and other staff who may have no technical background. Advancement. With experience, systems analysts may be promoted to senior or lead systems analyst. Those who pos­ sess leadership ability and good business skills also can become  computer and information systems managers or can advance into other management positions such as manager of informa­ tion systems or chief information officer. Those with work experience and considerable expertise in a particular subject or application may find lucrative opportunities as independent consultants, or may choose to start their own computer consult­ ing firms.  Employment Computer systems analysts held about 504,000 jobs in 2006. 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. Com­ puter systems analysts are also employed by governments; in­ surance companies; financial institutions; hospitals; manage­ ment, scientific, and technical consulting services firms; data processing services firms; professional and commercial equip­ ment wholesalers; universities; and management of companies and enterprises. A growing number of systems analysts are employed on a temporary or contract basis; many of these individuals are selfemployed, working independently as contractors or consultants. About 29,000 computer systems analysts were self-employed in 2006.  Job Outlook Employment is expected to grow much faster than the average for all occupations. As a result of this rapid growth, job pros­ pects should be very good. Employment change. Employment of computer systems analysts is expected to grow by 29 percent from 2006 to 2016, which is much faster than the average for all occupations. In addition, the 146,000 new jobs that are expected to arise over the projections decade will be substantial. Demand for these workers will increase as organizations continue to adopt and integrate increasingly sophisticated technologies. Job growth will not be as rapid as during the preceding decade, however, as the information technology sector matures and as routine work is increasingly outsourced offshore to foreign countries with lower prevailing wages. The growth of electronic commerce and the integration of Internet technologies into business have resulted in a growing need for specialists who can develop and support Internet and intranet applications. Moreover, falling prices of computer hardware and software should continue to induce more busi­ nesses to expand their computerized operations and incorporate new technologies. The demand for computer networking within organizations will also drive demand for computer systems analysts. The introduction of the wireless Internet, known as WiFi, and of personal mobile computers has created a need for new systems  Projections data from the National Employment Matrix Occupational Title Computer systems analysts..................................... .............................  soc Code 15-1051  Employment, 2006 504,000  Projected employment, 2016 650,000  Change, 2006-2016 Number Percent 146,000 29  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  142 Occupational Outlook Handbook  that can integrate these technologies into existing networks. Explosive growth in these areas is expected to fuel demand for analysts who are knowledgeable about systems integration and network, data, and communications security. As more sophisticated and complex technology is imple­ mented across all organizations, demand for systems analysts will remain strong. These workers will be called upon to solve problems and to integrate new technologies with existing ones. Also, the increasing importance being placed on “cyber-secu­ rity”—the protection of electronic information—will result in a need for workers skilled in information security. As with other information technology jobs, employment growth may be tempered somewhat as some computer systems analyst jobs are outsourced offshore. Firms may look to cut costs by shifting operations to foreign countries with lower pre­ vailing wages and highly educated workers who have strong technical skills. Job prospects. Job prospects should be very good. Job open­ ings will occur as a result of strong job growth and from the need to replace workers who move into managerial positions or other occupations, or who leave the labor force. As tech­ nology becomes more sophisticated and complex, employers demand a higher level of skill and expertise from their employ­ ees. Individuals with an advanced degree in computer science or computer engineering or with an MBA with a concentration in information systems should have the best prospects. Col­ lege graduates with a bachelor’s degree in computer science, computer engineering, information science, or management information systems also should enjoy very good prospects, particularly if they have supplemented their formal education with practical experience. Because employers continue to seek computer specialists who can combine strong technical skills with good interpersonal and business skills, graduates with non-computer-science degrees who have had courses in com­ puter programming, systems analysis, and other information technology subjects also should continue to find jobs in com­ puter fields.  ment information systems/business data processing, starting of­ fers averaged $47,648. According to Robert Half Technology, starting salaries for systems analysts ranged from $64,000 to $87,000 in 2007. Starting salaries for business systems analysts ranged from $61,250 to $86,500. Starting salaries for developer/program­ mer analysts ranged from $55,250 to $90,250.  Related Occupations Other workers who use computers extensively and who use logic and creativity to solve business and technical problems include computer programmers, computer software engineers, computer and information systems managers, engineers, math­ ematicians, statisticians, operations research analysts, manage­ ment analysts, and actuaries.  Sources of Additional Information Further information about computer careers is available from: y Association for Computing Machinery (ACM), 2 Penn Plaza, Suite 701,New York, NY 10121-0701. Internet: http://www.acm.org y Institute of Electrical and Electronics Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. NW., Washington, DC 20036-1992. Internet: http://www.computer.org y National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org y University of Washington Computer Science and Engineering Department, AC 101 Paul G. Allen Center, Box 352350, 185 Stevens Way, Seattle, WA 98195-2350. Internet: http://www.cs.washington.edu/WhyCSE  Mathematicians (0*NET 15-2021.00)  Earnings Median annual earnings of wage-and-salary computer systems analysts were $69,760 in May 2006. The middle 50 percent earned between $54,320 and $87,600 a year. The lowest 10 percent earned less than $42,780, and the highest 10 percent earned more than $106,820. Median annual earnings in the in­ dustries employing the largest numbers of computer systems analysts in May 2006 were:  Significant Points  •  •  A Ph.D. in mathematics usually is the minimum edu­ cational requirement, except in the Federal Govern­ ment. Master’s degree and Ph.D. holders with a strong back­ ground in mathematics and a related field, such as computer science or engineering, should have better employment opportunities in related occupations. Average employment growth is expected for math­ ematicians.  Professional and commercial equipment and supplies merchant wholesalers.................................. $81,080 Computer systems design and related services.....................71,680 Management of companies and enterprises..........................71,090 Insurance carriers.................................................................. 69,990 State government................................................................... 61,340  Nature of the Work  According to the National Association of Colleges and Em­ ployers, starting offers for graduates with a bachelor’s degree in computer science averaged $53,396. Starting offers for graduates with a bachelor’s degree in information sciences and systems averaged $50,852. For those with a degree in manage­  Mathematics is one of the oldest and most fundamental scienc­ es. 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   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  Professional and Related Occupations 143  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 mathemat­ ics. Although these workers seek to increase basic knowledge without necessarily considering its practical use, such pure and abstract knowledge has been instrumental in producing or fur­ thering many scientific and engineering achievements. Many theoretical mathematicians are employed as university faculty, dividing 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, engineering, and the physical, life, and social sci­ ences. For example, they may analyze the most efficient way to schedule airline routes between cities, the effects and safety of new drugs, the aerodynamic characteristics of an experimental automobile, or the cost-effectiveness of alternative manufactur­ ing 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 encryption systems— codes—designed to transmit military, political, financial, or law enforcement-related information. Applied mathematicians start with a practical problem, en­ vision its separate elements, and then reduce the elements to mathematical variables. They often use computers to analyze relationships among the variables and solve complex problems by developing models with alternative solutions. Individuals with titles other than mathematician do much of the work in applied mathematics. In fact, because mathematics is the foundation on which so many other academic disciplines are built, the number of workers using mathematical techniques is much greater than the number formally called mathemati­ cians. For example, engineers, computer scientists, physicists, and economists are among those who use mathematics extenIt*K?**  imOS'  /  ■  jgggfgS!  Applied mathematicians start with a practical problem, envi­ sion its separate elements, and then reduce the elements to mathematical variables.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  sively. Some professionals, including statisticians, actuaries, and operations research analysts, are actually specialists in a particular branch of mathematics. (For more information, see the statements on actuaries, operations research analysts, and statisticians elsewhere in the Handbook.) Applied mathemati­ cians are frequently required to collaborate with other workers in their organizations to find common solutions to problems. Work environment. Mathematicians usually work in com­ fortable offices. They often are part of interdisciplinary teams that may include economists, engineers, computer scientists, physicists, technicians, and others. Deadlines, overtime work, special requests for information or analysis, and prolonged trav­ el 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 mathemati­ cians may conduct research alone or in close collaboration with other mathematicians. Collaborators may work together at the same institution or from different locations, using technology such as e-mail to communicate. Mathematicians in academia also may be aided by graduate students.  Training, Other Qualifications, and Advancement A Ph.D. degree in mathematics usually is the minimum edu­ cational requirement for prospective mathematicians, except in the Federal Government. Education and training. In the Federal Government, en­ try-level job candidates usually must have at least a bachelor’s degree with a major in mathematics or 24 semester hours of mathematics courses. Outside the Federal Government, bache­ lor’s degree holders in mathematics usually are not qualified for most jobs, and many seek advanced degrees in mathematics or a related discipline. Most colleges and universities offer a bachelor’s degree in mathematics. Courses usually required for this degree include calculus, differential equations, and linear and abstract algebra. Additional courses might include probability theory and statis­ tics, mathematical analysis, numerical analysis, topology, dis­ crete mathematics, and mathematical logic. Many colleges and universities advise or require students majoring in mathematics to take courses in a closely related field, such as computer sci­ ence, engineering, life science, physical science, or economics. A double major in mathematics and another related discipline is particularly desirable to many employers. High school students who are prospective college mathematics majors should take as many mathematics courses as possible while in high school. In private industry, candidates for mathematician jobs typi­ cally need a Ph.D., although there may be opportunities for those with a master’s degree. Most of the positions designated for mathematicians are in research and development laborato­ ries, as part of technical teams. In 2007, there were more than 300 graduate programs, of­ fering both master’s and doctoral degrees, in pure or applied mathematics around the country. In graduate school, students conduct research and take advanced courses, usually special­ izing in a subfield of mathematics. Other qualifications. For jobs in applied mathematics, train­ ing in the field in which mathematics will be used is very im­ portant. Mathematics is used extensively in physics, actuarial science, statistics, engineering, and operations research. Com-  144 Occupational Outlook Handbook  puter science, business and industrial management, economics, finance, chemistry, geology, life sciences, and behavioral sci­ ences are likewise dependent on applied mathematics. Math­ ematicians also should have substantial knowledge of computer programming, because most complex mathematical computa­ tion and much mathematical modeling are done on a computer. Mathematicians need to have good reasoning to identify, ana­ lyze, and apply basic principles to technical problems. Com­ munication skills also are important, as mathematicians must be able to interact and discuss proposed solutions with people who may not have extensive knowledge of mathematics. Advancement. 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.) The majority of those with a 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 en­ gineer.  Employment Mathematicians held about 3,000 jobs in 2006. Many people with mathematical backgrounds also worked in other occupa­ tions. For example, there were about 54,000 jobs as postsec­ ondary mathematical science teachers in 2006. Many mathematicians work for Federal or State govern­ ments. The U.S. Department of Defense is the primary Federal employer, accounting for about 37 percent of the mathemati­ cians employed by the Federal Government. Many of the other mathematicians employed by the Federal Government work for the National Aeronautics and Space Administration (NASA). In the private sector, major employers include scientific re­ search and development services and management, scientific, and technical consulting services. Some mathematicians also work for software publishers, insurance companies, and in aerospace or pharmaceutical manufacturing.  Job Outlook Employment of mathematicians is expected to grow as fast as the average. However, keen competition for jobs is expected. Employment change. Employment of mathematicians is ex­ pected to increase by 10 percent during the 2006-16 decade, as fast as the average for all occupations. Advancements in tech­ nology usually lead to expanding applications of mathematics, and more workers with knowledge of mathematics will be re­ quired in the future. However, jobs in industry and government often require advanced knowledge of related scientific disci­ plines 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. Job prospects. Job competition will remain keen because employment in this occupation is relatively small and few new jobs are expected. Master’s degree and Ph.D. holders with a strong background in mathematics and a related discipline, such as engineering or computer science, and who apply math­ ematical theory to real-world problems will have the best job prospects in related occupations. Holders of a master’s degree in mathematics will face very strong competition for jobs in theoretical research. Because the number of Ph.D. degres awarded in mathematics continues to exceed the number of available university positions—espe­ cially those that are tenure tracked—many graduates will need to find employment in industry and government. Additionally, employment in theoretical mathematical re­ search is sensitive to general economic fluctuations and to changes in government spending. Job prospects will be greatly influenced by changes in public and private funding for research and development.  Earnings Median annual earnings of mathematicians were $86,930 in May 2006. The middle 50 percent earned between $62,970 and $106,250. The lowest 10 percent had earnings of less than $43,500, while the highest 10 percent earned more than $132,190. In early 2007, the average annual salary for mathematicians employed by the Federal Government in supervisory, nonsupervisory, and managerial positions was $93,539; for mathemati­ cal statisticians, $96,121; and for cryptanalysts, the average was $90,435.  Related Occupations Other occupations that require extensive knowledge of math­ ematics or, in some cases, a degree in mathematics include ac­ tuaries, statisticians, computer programmers, computer systems analysts, computer scientists and database administrators, com­ puter software engineers, and operations research analysts. A strong background in mathematics also facilitates employment as teachers—postsecondary; teachers—preschool, kindergar­ ten, elementary, middle, and secondary; engineers; economists; market and survey researchers; financial analysts and personal financial advisors; and physicists and astronomers.  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, RI02904-2294. Internet: http://www.ams.org  Projections data from the National Employment Matrix Occupational Title Mathematicians.  soc  Code 15-2021  Employment, 2006 3,000  Projected employment, 2016 3,300  Change, 2006-2016 Number Percent 300 10  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Professional and Related Occupations 145  For specific information on careers in applied mathematics, contact: y Society for Industrial and Applied Mathematics, 3600 University City Science Center, Philadelphia, PA 19104-2688. Internet: http://www.siam.org Information on obtaining positions as mathematicians with the Federal Government is available from the Office of Per­ sonnel Management through USAJOBS, the Federal Govern­ ment’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not tollfree, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Government,” online at: http://www.bls.gov/opub/ooq/2004/summer/art01.pdf  Operations Research Analysts (0*NET 15-2031.00)  Significant Points  •  While a bachelor’s degree is the minimum require­ ment, employers generally prefer applicants with at least a master’s degree in operations research or a closely related field.  •  Computer programming skills and keeping up to date with technological advances and improvements in analytical methods are essential. Employment growth is projected to be as fast as the average for all occupations.  • •  Individuals with a master’s or Ph.D. degree in opera­ tions research or a closely related subject should find opportunities in a number of occupations that use their computer, mathematical, and problem-solving skills.  meeting the goals of a project. These potential solutions are presented to managers, who choose the course of action that they think best. Operations research analysts are often involved in top-level strategizing, planning, and forecasting. They help to allocate resources, measure performance, schedule, design production facilities and systems, manage the supply chain, set prices, co­ ordinate transportation and distribution, or analyze large data­ bases. The duties of the operations research analyst vary according to the structure and management of the organization they are assisting. Some firms centralize operations research in one de­ partment; others use operations research in each division. Op­ erations research analysts also may work closely with senior managers to identify and solve a variety of problems. Analysts often have one area of specialization, such as working in the transportation or the financial services industry. Operations research analysts start a project by listening to managers describe a problem. Then, analysts ask questions and formally define the problem. For example, an operations research analyst for an auto manufacturer may be asked to de­ termine the best inventory level for each of the parts needed on a production line and to ascertain the optimal number of windshields to be kept in stock. Too many windshields would be wasteful and expensive, whereas too few could halt produc­ tion. Analysts would study the problem, breaking it into its com­ ponents. Then they would gather information from a variety of sources. To determine the optimal inventory, operations re­ search analysts might talk with engineers about production lev­ els, discuss purchasing arrangements with buyers, and examine storage-cost data provided by the accounting department. Relevant information in hand, the analysts determine the most appropriate analytical technique. Techniques used may include a Monte Carlo simulation, linear and nonlinear programming, dynamic programming, queuing and other stochastic-process models, Markov decision processes, econometric methods, data envelopment analysis, neural networks, expert systems, deci­ sion analysis, and the analytic hierarchy process. Nearly all of these techniques involve the construction of a mathemati-  Nature of the Work “Operations research” and “management science” are terms that are used interchangeably to describe the discipline of using advanced analytical techniques to make better decisions and to solve problems. The procedures of operations research were first formalized by the military. They have been used in war­ time to effectively deploy radar, search for enemy submarines, and get supplies to where they are most needed. In peacetime and in private enterprises, operations research is used in plan­ ning business ventures and analyzing options by using statisti­ cal analysis, data and computer modeling, linear programming, and other mathematical techniques. Large organizations are very complex. They must effectively manage money, materials, equipment, and people. Operations research analysts find better ways to coordinate these elements by applying analytical methods from mathematics, science, and engineering. Analysts often find many possible solutions for   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  fits ipOperations research analysts need strong computer, mathemat­ ical, and problem-solving skills.  146 Occupational Outlook Handbook  cal model that attempts to describe the system being studied. So, the problem of the windshields, for example, would be de­ scribed as a set of equations that try to model real-world condi­ tions. The use of models enables the analyst to explicitly describe the different components and clarify the relationships among them. The descriptions can be altered to examine what may happen to the system under different circumstances. In most cases, a computer program is developed to numerically evaluate the model. Usually the model chosen is modified and run repeatedly to obtain different solutions. A model for airline flight scheduling, for example, might stipulate such things as connecting cities, the amount of fuel required to fly the routes, projected levels of passenger demand, varying ticket and fuel prices, pilot sched­ uling, and maintenance costs. By assessing different possible schedules, the analyst is able to determine the best flight sched­ ule consistent with particular assumptions. Based on the results of the analysis, the operations research analyst presents recommendations to managers. The analyst may need to modify and rerun the computer program to con­ sider different assumptions before presenting the final recom­ mendation. Once managers reach a decision, the analyst usu­ ally works with others in the organization to ensure the plan’s successful implementation. Work environment. Operations research analysts generally work regular hours in an office environment. However, because they work on projects that are of immediate interest to top man­ agers, operations research analysts often are under pressure to meet deadlines and may work more than 40 hours a week.  Training, Other Qualifications, and Advancement A college degree in operations research generally is required. Computer programming skills are essential. Education and training. Employers generally prefer appli­ cants 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—coupled with a bachelor’s degree in computer science or a quantitative discipline such as economics, mathematics, or statistics. Dual graduate degrees in operations research and computer science are especially attractive to employers. There are more than 130 programs in operations research and related studies in colleges and universities across the United States. Continuing education is important for operations research analysts. Keeping up to date with technological advances and improvements in analytical methods is vital for maintaining their problem-solving skills. Other qualifications. Computers are the most important tools used by operations research analysts, so analysts must have training and experience in programming. Analysts typi­  cally also need to be proficient in database collection and man­ agement, and the development and use of sophisticated soft­ ware packages. Operations research analysts must be able to think logically, work well with people, and write and speak well. Advancement. Beginning analysts usually perform routine work under the supervision of more experienced analysts. As novices gain knowledge and experience, they are assigned more complex tasks and are given greater autonomy to design models and solve problems. Operations research analysts can advance by becoming tech­ nical specialists or supervisors on more complicated projects. Analysts also gain valuable insights into the industry where they work and may assume higher level managerial or administrative positions. Operations research analysts with significant experi­ ence or expertise may become consultants, and some open their own consulting practices.  Employment Operations research analysts held about 58,000 jobs in 2006. Major employers include computer systems design firms; insur­ ance carriers and other financial institutions; telecommunica­ tions companies; management, scientific, and technical consult­ ing services firms; and Federal, State, and local governments. Most 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.  Job Outlook Employment of operations research analysts is projected to grow as fast as the average for all occupations. Individuals with a master’s or Ph.D. degree in operations research or a closely related subject should find job opportunities in a number of oc­ cupations that use their computer, mathematical, and problem­ solving skills. Employment change. Employment of operations research analysts is expected to grow 11 percent, as fast as the average for all occupations between 2006 and 2016. Demand for op­ erations research analysis should continue to grow. Organiza­ tions increasingly will be faced with the pressure of growing domestic and international competition and must work to make their operations as effective as possible. As a result, businesses increasingly will rely on operations research analysts to opti­ mize profits by improving productivity and reducing costs. As new technology is introduced into the marketplace, operations research analysts will be needed to determine how to use the technology in the best way. Additionally, technological advancements have extended the availability of data access and storage, making information more readily available. Advancements in computing capabili­ ties and analytical software have made it cheaper and faster  Projections data from the National Employment Matrix Occupational Title  soc  Code  Employment,  Projected employment,  2006 2016 .................. 15-2031 58.000 65.000 NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter  Operations research analysts................................... tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Change,  2006-2016  Number  6,200  Percent  11  on Occupational Informa-  Professional and Related Occupations 147  for analysts to solve problems. As problem solving becomes cheaper and faster with technological advances, more firms will have the ability to employ or consult with analysts. Job prospects. Graduates with degrees in operations research or closely related fields should find opportunities in a number of occupations where their computer, mathematical, and problem­ solving skills are needed—operations research analyst, systems analyst, computer scientist, or management analyst, for exam­ ple. In addition to job growth, some openings will result from the need to replace analysts retiring or leaving the occupation permanently for other reasons. Analysts who keep up with the latest technological advancements and software will have the best opportunities. Jobs for operations research analysts exist in almost every industry because of the diversity of applications for their work. As businesses and government agencies continue to contract out jobs to cut costs, opportunities for operations research ana­ lysts will be best in management, scientific, and technical con­ sulting firms. Opportunities in the military exist as well, but will depend on the size of future military budgets. Military leaders rely on operations research analysts to test and evalu­ ate the accuracy and effectiveness of new weapons systems and strategies. (See the Handbook statement on job opportunities in the Armed Forces.)  For information on operations research careers and degree programs in the Armed Forces, contact: V Military Operations Research Society, 1703 N. Beauregard St., Suite 450, Alexandria, VA 22311. Internet: http://www.mors.org Information on obtaining positions as operations research analysts with the Federal Government is available from the Of­ fice of Personnel Management through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Government,” online at: http://www.bls.gov/opub/ooq/2004/summer/art01.pdf.  Statisticians (0*NET 15-2041.00)  Significant Points  Earnings Median annual earnings of operations research analysts were $64,650 in May 2006. The middle 50 percent earned between $48,820 and $85,760. The lowest 10 percent had earnings of less than $38,760, while the highest 10 percent earned more than $108,290. Median annual earnings of operations research analysts working in management, scientific, and technical con­ sulting services were $69,870. The average annual salary for operations research analysts in the Federal Government in nonsupervisory, supervisory, and managerial positions was $91,207 in 2007. Employer-sponsored training is often another part of an ana­ lyst’s compensation. Some analysts attend advanced university classes on these subjects at their employer’s expense.  Related Occupations Operations research analysts apply advanced analytical meth­ ods to large, complicated problems. Economists, computer sys­ tems analysts, mathematicians, and engineers also use advanced analysis and often apply the principles of operations research. Workers in other occupations that also stress advanced analy­ sis include computer scientists and database administrators, computer programmers, statisticians, and market and survey researchers. Because its goal is improved organizational effec­ tiveness, operations research also is closely allied to managerial occupations such as computer and information systems manag­ ers, and management analysts.  Sources of Additional Information For information on career opportunities and a list of degree pro­ grams for operations research analysts, contact: y Institute for Operations Research and the Management Sciences, 7240 Parkway Dr., Suite 310, Hanover, MD 21076. Internet: http://www.informs.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  About 30 percent of statisticians work for Federal, State, and local governments; other employers in­ clude scientific research and development services and finance and insurance firms.  •  A master’s degree in statistics or mathematics is the minimum educational requirement for most jobs as a statistician.  •  Employment of statisticians is projected to grow about as fast as average.  •  Individuals with a degree in statistics should have op­ portunities in a variety of fields.  Nature of the Work Statistics is the scientific application of mathematical principles to the collection, analysis, and presentation of numerical data. Statisticians apply their mathematical and statistical knowl­ edge to the design of surveys and experiments; the collection, processing, and analysis of data; and the interpretation of the experiment and survey results. Opinion polls, statements of ac­ curacy on scales and other measuring devises, and information about average earnings in an occupation are all usually the work of statisticians. Statisticians may apply their knowledge of statistical meth­ ods to a variety of subject areas, such as biology, economics, engineering, medicine, public health, psychology, marketing, education, and sports. Many economic, social, political, and military decisions cannot be made without statistical techniques, such as the design of experiments to gain Federal approval of a newly manufactured drug. Statistics might be needed to show whether the seemingly good results of a dmg were likely be-  148 Occupational Outlook Handbook  p-—  1  ,id­  Individuals with a degree in statistics should have opportunities in a variety offields. ealise of the drug rather than just the effect of random variation in patient outcomes. 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 improvement. In an automobile company, for example, statisticians might design experiments to determine the failure time of engines exposed to extreme weather conditions by running individual engines until failure and breakdown. Working for a pharma­ ceutical company, statisticians might develop and evaluate the results of clinical trials to determine the safety and effectiveness of new medications. At a computer software firm, statisticians might help construct new statistical software packages to ana­ lyze data more accurately and efficiently. In addition 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. Statisti­ cians 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 unemploy­ ment. Other statisticians work for scientific, environmental, and agricultural agencies and may help figure out the average level of pesticides in drinking water, the number of endangered species living in a particular area, or the number of people af­ flicted with a particular disease. Statisticians also are employed in national 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   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  sional designations. For example, a person using statistical methods to analyze economic data may have the title econo­ metrician, while statisticians in public health and medicine may hold titles such as biostatistician or biometrician. Work environment. Statisticians generally work regular hours in an office environment. Sometimes, they may work more hours to meet deadlines. Some statisticians travel to provide advice on research proj­ ects, supervise and set up surveys, or gather statistical data. While advanced communications devices such as e-mail and teleconferencing are making it easier for statisticians to work with clients in different areas, there still are situations that re­ quire the statistician to be present, such as during meetings or while gathering data.  Training, Other Qualifications, and Advancement A master’s degree in statistics or mathematics is the minimum educational requirement, but research and academic jobs gener­ ally require a Ph.D., Federal Government jobs require at least a bachelor’s degree. Education and training. A master’s degree in statistics or mathematics usually is the minimum educational requirement for most statistician jobs. Research and academic positions usually require a Ph.D. in statistics. Beginning positions in in­ dustrial research often require a master’s degree combined with several years of experience. Jobs with the Federal Government require at least a bachelor’s degree. The training required for employment as an entry-level statistician in the Federal Government is a bachelor’s degree, including at least 15 semester hours of statistics or a combi­ nation 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 se­ mester hours in statistics and 12 semester hours in an area of advanced mathematics, such as calculus, differential equations, or vector analysis. In 2007, more than 200 universities offered a degree program in statistics, biostatistics, or mathematics. Many other schools also offered graduate-level courses in applied statistics for stu­ dents majoring in biology, business, economics, education, engineering, psychology, and other fields. Acceptance into graduate statistics programs does not require an undergraduate degree in statistics, although good training in mathematics is essential. Many schools also offered degrees in mathematics, opera­ tions research, and other fields that include a sufficient number of courses in statistics to qualify graduates for some entry-level positions with the Federal Government. Required subjects for statistics majors include differential and integral calculus, statistical methods, mathematical modeling, and probability theory. Additional recommended courses for undergraduates include linear algebra, design and analysis of experiments, ap­ plied multivariate analysis, and mathematical statistics. Because computers are used extensively for statistical ap­ plications, a strong background in computer science is highly recommended. For positions involving quality and productivity improvement, training in engineering or physical science is use­  Professional and Related Occupations 149  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. Advancements in technology have made a great impact on statistics. Statistical modeling continues to become quicker and easier because of increased computational power and new ana­ lytical methods or software. Continuing education is important for statisticians; they need to stay abreast emerging technolo­ gies to perform well. Other qualifications. Good communications skills are im­ portant for prospective statisticians in industry, who often need to explain technical matters to persons without statistical ex­ pertise. An understanding of business and the economy also is valuable for those who plan to work in private industry. Advancement. Beginning statisticians generally are super­ vised by an experienced statistician. With experience, they may advance to positions with more technical responsibility and, in some cases, supervisory duties. Opportunities for promotion are greater for people with advanced degrees. Master’s and Ph.D. degree holders usually enjoy independence in their work and may engage in research; develop statistical methods; or, af­ ter a number of years of experience in a particular area, become statistical consultants.  Employment Statisticians held about 22,000 jobs in 2006. About 20 percent of these jobs were in the Federal Government, where statisti­ cians were concentrated in the Departments of Commerce, Ag­ riculture, and Health and Human Services. Another 10 percent were found in State and local governments, including State col­ leges and universities. Most of the remaining jobs were in pri­ vate industry, especially in scientific research and development services, insurance carriers, and pharmaceutical and medicine manufacturing.  Job Outlook Average employment growth is projected. Individuals with a degree in statistics should have opportunities in a variety of fields. Employment change. Employment of statisticians is pro­ jected to grow 9 percent from 2006 to 2016, about as fast as the average for all occupations. The demand for individuals with a background is statistics is expected to grow, although some jobs will be in occupations with titles other than “statistician.” The use of statistics is widespread and growing. Statistical models aid in decision making in both private industry and gov­ ernment. There will always be a demand for the skills statisti­ cal modeling provides. Technological advances are expected to  spur demand for statisticians. Ever faster computer processing allows statisticians to analyze greater amounts of data much more quickly, and to gather and sort through large amounts of data that would not have been analyzed in the past. As these processes continue to become more efficient and less expensive, an increasing number of employers will want to employ statisti­ cians to take advantage of the new information available. Biostatisticians should experience employment growth, pri­ marily because of the booming pharmaceuticals business. As pharmaceutical companies develop new treatments and medical technologies, biostatisticians will be needed to do research and clinical trials. Job prospects. Individuals with a degree in statistics should have opportunities in a variety of fields. For example, many jobs involve the analysis and interpretation of data from economics, biological science, psychology, computer software engineering, education, and other disciplines. Additional job openings will become available as statisticians transfer to other occupations, retire, or leave the workforce 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. Those who meet State certification requirements may be­ come high school statistics teachers, for example. (For addi­ tional information, see the statement on teachers—preschool, kindergarten, elementary, middle, and secondary elsewhere in the Handbook.)  Earnings Median annual wage-and-salary earnings of statisticians were $65,720 in May 2006. The middle 50 percent earned between $48,480 and $87,850. The lowest 10 percent earned less than $37,010, while the highest 10 percent earned more than $108,630. The average annual salary for statisticians in the Federal Government was $85,690 in 2007, while mathematical statisti­ cians averaged $96,121. Some employers offer tuition reimbursement.  Related Occupations People in diverse occupations work with statistics. Among these are actuaries; mathematicians; operations research analysts; computer scientists and database administrators; computer sys­ tems analysts; computer programmers; computer software en­ gineers; engineers; economists, market and survey researchers, and other social scientists; and financial analysts and personal financial advisors. Some statisticians also work as secondary school teachers or postsecondary teachers.  Projections data from the National Employment Matrix Occupational Title Statisticians.............................................................. .............................  soc Code 15-2041  Employment, 2006 22,000  Projected employment, 2016 24,000  Change, 2006-2016 Number Percent 1,900 9  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on  tion Included in the Handbook.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Occupational Informa-  150 Occupational Outlook Handbook  Sources of Additional Information For information about career opportunities in statistics, con­ tact: 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: y American Mathematical Society, 201 Charles St., Providence, RI 02904. Internet: http://www.ams.org Information on obtaining positions as statisticians with the Federal Government is available from the Office of Personnel  Management through USAJOBS, the Federal Government’s of­ ficial employment information system. This resource for locat­ ing and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an in­ teractive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Government,” online at:  http://www.bls.gov/opub/ooq/2004/summer/art01.pdf.  Architects, Surveyors, and Cartographers Architects, Except Landscape and Naval (Q*NET 17-1011.00)  Significant Points  •  About 1 in 5 architects are self-employed—more than 2 times the proportion for all occupations. • Licensing requirements include a professional degree in architecture, at least 3 years of practical work train­ ing, and passing all divisions of the Architect Regis­ tration Examination. • Architecture graduates may face competition, espe­ cially for jobs in the most prestigious firms. Nature of the Work People need places in which to live, work, play, leam, worship, meet, govern, shop, and eat. These places may be private or public; indoors or out; rooms, buildings, or complexes, and architects design them. Architects are licensed professionals trained in the art and science of building design who develop the concepts for structures and turn those concepts into images and plans. Architects create 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 de­ sign buildings and other structures. Architects may be involved in all phases of a construction project, from the initial discussion 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. Successful 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  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ous predesign services: conducting feasibility and environmen­ tal impact studies, selecting a site, preparing cost analysis and land-use studies, or specifying the requirements the design must meet. For example, they may determine space require­ ments by researching the numbers and types of potential users of a building. The architect then prepares drawings 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-condition­ ing, heating, and ventilating systems; electrical systems; com­ munications systems; plumbing; and, possibly, site and land­ scape 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 people who are disabled. Computer-aided design and drafting (CADD) and Building Information Modeling (BIM) technology has replaced traditional paper and pencil as the most common method for creating design and construction drawings. 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 fin­ ished, required tests are conducted, and construction costs are paid. Sometimes, architects also provide postconstruction ser­ vices, such as facilities management. They advise on energy ef­ ficiency measures, evaluate how well the building design adapts to the needs of occupants, and make necessary improvements. Often working with engineers, urban planners, interior de­ signers, landscape architects, and other professionals, architects in fact spend a great deal of their time coordinating information from, and the work of, other professionals engaged in the same project. They design a wide variety of buildings, such as office and apartment buildings, schools, churches, factories, hospitals, houses, and airport terminals. They also design complexes such  Professional and Related Occupations 151  Xitii4!  ijiih  imjH  ■aii ■an  via ■ 111:i ■ All  Architects design buidings. as urban centers, college campuses, industrial parks, and entire communities. 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 minimal design work. Work environment. Usually working in a comfortable envi­ ronment, architects.spend most of their time in offices consult­ ing 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. Although most architects work approximately 40 hours per week, they often have to work nights and weekends to meet deadlines.  Training, Other Qualifications, and Advancement There are three main steps in becoming an architect. First is the attainment of a professional degree in architecture. Second is work experience through an internship, and third is licensure through the passing of the Architect Registration Exam. Education and training. In most States, the professional de­ gree in architecture must be from one of the 114 schools of ar­ chitecture that have degree programs accredited by the National Architectural Accrediting Board. However, State architectural registration boards set their own standards, so graduation from a non-accredited program may meet the educational require­ ment for licensing in a few States. Three types of professional degrees in architecture are avail­ able: a 5-year bachelor’s degree, which is most common and is intended for students with no previous architectural training; a 2-year master’s degree for students with an undergraduate de­ gree in architecture or a related area; and a 3- or 4-year master’s degree for students with a degree in another discipline. The choice of degree depends on preference and educational background. Prospective architecture students should consid­ er the options before committing to a program. For example,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  although the 5-year bachelor of architecture offers the fastest route to the professional degree, courses are specialized, and if the student does not complete the program, transferring to a program in another discipline may be difficult. A typical pro­ gram includes courses in architectural history and theory, build­ ing design with an emphasis on CADD, structures, technology, construction methods, professional practice, math, physical sciences, and liberal arts. Central to most architectural pro­ grams is the design studio, where students apply the skills and concepts learned in the classroom, creating drawings and three­ dimensional models of their designs. Many schools of architecture also offer postprofessional degrees for those who already have a bachelor’s or master’s degree in architecture or other areas. Although graduate edu­ cation beyond the professional degree is not required for prac­ ticing architects, it may be required for research, teaching, and certain specialties. All State architectural registration boards require architec­ ture graduates to complete a training period—usually at least 3 years—before they may sit for the licensing exam. Every State, with the exception of Arizona, has adopted the training standards established by the Intern Development Program, a branch of the American Institute of Architects and the National Council of Architectural Registration Boards (NCARB). These standards stipulate broad training under the supervision of a li­ censed architect. Most new graduates complete their training period by working as interns at architectural firms. Some States allow a portion of the training to occur in the offices of related professionals, such as engineers or general contractors. Archi­ tecture students who complete internships while still in school can count some of that time toward the 3-year training period. Interns in architectural firms may assist in the design of one part of a project, help prepare architectural documents or draw­ ings, build models, or prepare construction drawings on CADD. Interns also may research building codes and materials or write specifications for building materials, installation criteria, the quality of finishes, and other, related details. Licensure. All States and the District of Columbia require in­ dividuals to be licensed (registered) before they may call them­ selves architects and contract to provide architectural services. During the time between graduation and becoming licensed, architecture school graduates generally work in the field under the supervision of a licensed architect who takes legal respon­ sibility for all work. Licensing requirements include a profes­ sional degree in architecture, a period of practical training or internship, and a passing score on all divisions of the Architect Registration Examination. The examination is broken into nine divisions consisting of either multiple choice or graphical ques­ tions. The eligibility period for completion of all divisions of the exam varies by State. Most States also require some form of continuing education to maintain a license, and many others are expected to adopt mandatory continuing education. Requirements vary by State but usually involve the completion of a certain number of cred­ its annually or biennially through workshops, formal university classes, conferences, self-study courses, or other sources. Other qualifications. Architects must be able to communi­ cate their ideas visually to their clients. Artistic and drawing ability is helpful, but not essential, to such communication.  152 Occupational Outlook Handbook  More important are a visual orientation and the ability to under­ stand spatial relationships. Other important qualities for any­ one interested in becoming an architect are creativity and the ability to work independently and as part of a team. Computer skills are also required for writing specifications, for 2- and 3­ dimensional drafting using CADD programs, and for financial management. Certification and advancement. A growing number of ar­ chitects voluntarily seek certification by the National Council of Architectural Registration Boards. Certification is awarded after independent verification of the candidate’s educational transcripts, employment record, and professional references. Certification can make it easier to become licensed across States. In fact, it is the primary requirement for reciprocity of licensing among State Boards that are NCARB members. In 2007, approximately one-third of all licensed architects had this certification. After becoming licensed and gaining experience, architects take on increasingly responsible duties, eventually managing entire projects. In large firms, architects may advance to su­ pervisory or managerial positions. Some architects become partners in established firms, while others set up their own practices. Some graduates with degrees in architecture also en­ ter related fields, such as graphic, interior, or industrial design; urban planning; real estate development; civil engineering; and construction management.  Employment Architects held about 132,000 jobs in 2006. Approximately 7 out of 10 jobs were in the architectural, engineering, and relat­ ed services industry—mostly in architectural firms with fewer than five workers. A small number worked for residential and nonresidential building construction firms and for government agencies responsible for housing, community planning, or con­ struction of government buildings, such as the U.S. Departments of Defense and Interior, and the General Services Administra­ tion. About lin 5 architects are self-employed.  Job Outlook Employment of architects is expected to grow faster than the average for all occupations through 2016. Keen competition is expected for positions at the most prestigious firms, and op­ portunities will be best for those architects who are able to dis­ tinguish themselves with their creativity. Employment change. Employment of architects is expected to grow by 18 percent between 2006 and 2016, which is faster than the average for all occupations. Employment of archi­ tects is strongly tied to the activity of the construction industry. Strong growth is expected to come from nonresidential con­ struction as demand for commercial space increases. Residen­ tial construction, buoyed by low interest rates, is also expected to grow as more people become homeowners. If interest rates  rise significantly, home building may fall off, but residential construction makes up only a small part of architects’ work. Current demographic trends also support an increase in de­ mand for architects. As the population of Sunbelt States contin­ ues to grow, the people living there will need new places to live and work. As the population continues to live longer and babyboomers begin to retire, there will be a need for more healthcare facilities, nursing homes, and retirement communities. In edu­ cation, buildings at all levels are getting older and class sizes are getting larger. This will require many school districts and universities to build new facilities and renovate existing ones. In recent years, some architecture firms have outsourced the drafting of construction documents and basic design for largescale commercial and residential projects to architecture firms overseas. This trend is expected to continue and may have a negative impact on employment growth for lower level archi­ tects and interns who would normally gain experience by pro­ ducing these drawings. Job prospects. Besides employment growth, additional job openings will arise from the need to replace the many architects who are nearing retirement, and others who transfer to other occupations or stop working for other reasons. Internship op­ portunities for new architectural students are expected to be good over the next decade, but more students are graduating with architectural degrees and some competition for entry-level jobs can be anticipated. Competition will be especially keen for jobs at the most prestigious architectural firms as prospective architects try to build their reputation. Prospective architects who have had internships while in school will have an advan­ tage in obtaining intern positions after graduation. Opportuni­ ties will be best for those architects that are able to distinguish themselves from others with their creativity. Prospects will also be favorable for architects with knowl­ edge of “green” design. Green design, also known as sustain­ able design, emphasizes energy efficiency, renewable resources such as energy and water, waste reduction, and environmentally friendly design, specifications, and materials. Rising energy costs and increased concern about the environment has led to many new buildings being built green. Some types of construction are sensitive to cyclical changes in the economy. Architects seeking design projects for office and retail construction will face especially strong competition for jobs or clients during recessions, and layoffs may ensue in less successful firms. Those involved in the design of institu­ tional buildings, such as schools, hospitals, nursing homes, and correctional facilities, will be less affected by fluctuations in the economy. Residential construction makes up a small portion of work for architects, so major changes in the housing market would not be as significant as fluctuations in the nonresidential market. Despite good overall job opportunities some architects may not fare as well as others. The profession is geographically  Projections data from the National Employment Matrix Projected Change, employment, 2006-2016 2016 Number Percent Architects, except landscape and naval........................... ................... 17-1011 132,000 155,000 23,000 18 NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational InformaOccupational Title  tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SOC Code  Employment, 2006  Professional and Related Occupations 153  sensitive, and some parts of the Nation may have fewer new building projects. Also, many firms specialize in specific build­ ings, such as hospitals or office towers, and demand for these buildings may vary by region. Architects may find it increas­ ingly necessary to gain reciprocity in order to compete for the best jobs and projects in other States.  Earnings Median annual earnings of wage-and-salary architects were $64,150 in May 2006. The middle 50 percent earned between $49,780 and $83,450. The lowest 10 percent earned less than $39,420, and the highest 10 percent earned more than $104,970. Those just starting their internships can expect to earn consider­ ably less. Earnings of partners in established architectural firms may fluctuate because of changing business conditions. Some archi­ tects 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. Many firms pay tuition and fees toward continuing education requirements for their employees.  Related Occupations Architects design buildings and related structures. Construction managers, like architects, also plan and coordinate activities concerned with the construction and maintenance of buildings and facilities. Others who engage in similar work are landscape architects, civil engineers, urban and regional planners, and de­ signers, 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: y The American Institute of Architects, 1735 New York Ave. NW., Washington, DC 20006. Internet: http://www.aia.org X Intern Development Program, National Council of Architectural Registration Boards, Suite 1100K, 1801 K St. NW., Washington, D.C. 20006. Internet: http://www.ncarb.org  Landscape Architects (0*NET 17-1012.00)  Significant Points  •  Almost 19 percent of all landscape architects are selfemployed—more than 2 times the proportion for all occupations.  •  49 States require landscape architects to be licensed.  •  New graduates can expect to face competition for jobs in the largest and most prestigious landscape architec­ ture firms, but there should be good job opportunities overall as demand for landscape architecture services increases.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Everyone enjoys attractively designed residential areas, public parks and playgrounds, college campuses, shopping centers, golf courses, and parkways. Landscape architects design these areas so that they are not only functional, but also beautiful, and compatible with the natural environment. They plan the loca­ tion of buildings, roads, and walkways, and the arrangement of flowers, shrubs, and trees. They also design and plan the resto­ ration of natural places disturbed by humans such as wetlands, stream corridors, mined areas and forested land. Landscape architects work for many types of organiza­ tions—from real estate development firms starting new projects to municipalities constructing airports or parks—and they often are involved with the development of a site from its concep­ tion. Working with architects, surveyors, and engineers, land­ scape architects help determine the best arrangement of roads and buildings. They also collaborate with environmental sci­ entists, foresters, and other professionals to find the best way to conserve or restore natural resources. Once these decisions are made, landscape architects create detailed plans indicating new topography, vegetation, walkways, and other landscaping details, such as fountains and decorative features. In planning a site, landscape architects first study the project holistically. They also consider the 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 sunlight falls on the site at different times of the day; and assess the effect of existing buildings, roads, walkways, and utilities. After studying and analyzing the site, landscape architects prepare a preliminary design. To address the needs of the cli­ ent 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 (GIS) technology, a com­ puter mapping system. Throughout all phases of planning and design, landscape architects consult with other professionals, such as civil engi­ neers, hydrologists, or architects, 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 re­ ports, sketches, models, photographs, land-use studies, 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 existing and proposed features. They also outline in detail the methods of construction and draw up a list of necessary materials. Land­ scape architects then monitor the implementation of their de­ sign, while general contractors or landscape contractors usu­ ally direct the actual construction of the site and installation of plantings. Some landscape architects work on a variety of projects. Others specialize in a particular area, such as street and high­ way beautification, waterfront improvement projects, parks and  154 Occupational Outlook Handbook  playgrounds, or shopping centers. Still others work in regional planning and resource management; feasibility, environmen­ tal impact, and cost studies; or site construction. Increasingly, landscape architects work in environmental remediation, such as preservation and restoration of wetlands or abatement of stormwater run-off in new developments. Historic landscape preservation and restoration is another area where landscape architects increasingly play a role. 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. Others use their skills in trafficcalming, the “art” of slowing traffic through the use of traffic design, enhancement of the physical environment, and greater attention to aesthetics. Work environment. Landscape architects spend most of their time in offices creating 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 landscape. After the plans and specifications are com­ pleted, 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, traveling to sites. Salaried employees in both government and landscape archi­ tectural firms usually work regular hours. However, they may occasionally work overtime to meet a project deadline. Hours of self-employed landscape architects vary depending on the demands of their projects.  > jssa  Landscape architects consult with clients and other profession­ als throughout the plannining and design of a project.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement Almost every state requires landscape architects to be licensed. While requirements vary among the states, they usually include a degree in landscape architecture from an accredited school, work experience, and the passage of the Landscape Architect Registration Exam. Education and training. A bachelor’s or master’s degree in landscape architecture usually is necessary for entry into the profession. There are two undergraduate professional degrees: a Bachelor of Landscape Architecture (BLA) and a Bachelor of Science in Landscape Architecture (BSLA). These usual­ ly require four or five years of study in design, construction techniques, art, history, natural and social sciences. There are generally two types of graduate degree programs. For those who hold an undergraduate degree in a field other than land­ scape architecture and intend to become landscape architecture practitioners, the Master of Landscape Architecture (MLA) typically takes three years of full-time study. Those who hold undergraduate degrees in landscape architecture can earn their MLA in two years. In 2007, 61 colleges and universities offered 79 undergradu­ ate and graduate programs in landscape architecture that were accredited by the Landscape Architecture Accreditation Board of the American Society of Landscape Architects. Courses re­ quired in these programs usually include subjects such as sur­ veying, landscape design and construction, landscape ecology, site design, and urban and regional planning. Other courses include history of landscape architecture, plant and soil science, geology, professional practice, and general management. The design studio is another important aspect of many curriculums. Whenever possible, students are assigned real projects, provid­ ing them with valuable hands-on experience. While working on these projects, students become proficient in the use of com­ puter-aided design, geographic information systems, and video simulation. Licensure and certification. As of January 2008, 49 states required landscape architects to be licensed. Licensing is based on the Landscape Architect Registration Examination (L.A.R.E.), sponsored by the Council of Landscape Architec­ tural Registration Boards and administered in two portions, graphic and multiple choice. Admission to the exam usually requires a degree from an accredited school plus 1 to 4 years of work experience under the supervision of a licensed landscape architect, although standards vary from State to State. For those without an accredited landscape architecture degree, most states provide alternative paths to qualify to take the L. A.R.E., usually requiring more work experience. Currently, 15 States require that a State examination be passed in addition to the L.A.R.E. to satisfy registration requirements. State examinations focus on laws, environmental regulations, plants, soils, climate, and any other characteristics unique to the State. Because requirements for licensure are not uniform, land­ scape architects may find it difficult to transfer their registra­ tion 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 sat­ isfy requirements in most States. By meeting national require­ ments, a landscape architect can also obtain certification from  Professional and Related Occupations 155  the Council of Landscape Architectural Registration Boards which can be useful in obtaining reciprocal licensure in other states. 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 prepare working drawings, construction documents, or base maps of the area to be designed. Some are allowed to partici­ pate 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 experi­ ence and becoming licensed, landscape architects usually can carry a design through all stages of development. Many States require some form of continuing education to maintain a license. Requirements usually involve the comple­ tion of workshops, seminars, formal university classes, confer­ ences, self-study courses, or other classes. The Federal Government does not require its landscape ar­ chitects to be licensed. Candidates for entry positions with the Federal Government should have a bachelor’s or master’s de­ gree in landscape architecture. Other qualifications. People 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 communi­ cation 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 superiors. Landscape architects must also be able to draft and design using CAD software. Many employers recommend that prospective landscape architects complete at least one summer internship with a landscape archi­ tecture firm to hone their technical skills and to gain an under­ standing of the day-to-day operations of the business, including how to win clients, generate fees, and work within a budget. Advancement. After several years, landscape architects may become project managers, taking on the responsibility for meet­ ing schedules and budgets, in addition to overseeing 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. Self-disci­ pline, business acumen, and good marketing skills are impor­ tant 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.  Employment Landscape architects held about 28,000jobs in 2006. More than 1 out of 2 landscape architects were employed in architectural, engineering, and related services. State and local governments employed approximately 6 percent of all landscape architects. About 2 out of 10 landscape architects were self-employed. Employment of landscape architects is concentrated in urban and suburban areas throughout the country; some landscape ar­ chitects work in rural areas, particularly those employed by the Federal Government to plan and design parks and recreation areas. Job Outlook Employment of landscape architects is expected to grow fast­ er than the average for all occupations through the year 2016. There should be good job prospects for landscape architects overall, but opportunities may depend on geographic location and local real estate and construction markets. Employment change. Employment of landscape architects is expected to increase by 16 percent during the 2006-16 decade, which is faster than the average for all occupations. Employ­ ment will grow because the expertise of landscape architects will be sought after in the planning and development of new construction to meet the needs of a growing population. With land costs rising and the public desiring more beautiful spaces, the importance of good site planning and landscape design is growing. New construction will spur demand for landscape architects to help plan sites that meet with environmental regulations and zoning laws and integrate new structures with the natural envi­ ronment in the least disruptive way. For example, landscape architects will be needed to manage stormwater run-off to avoid pollution of waterways and conserve water resources. Land­ scape architects also will be increasingly involved in preserv­ ing and restoring wetlands and other environmentally sensitive sites. Continuation of the Safe, Accountable, Flexible, Efficient, Transportation, Equity Act: A Legacy for Users also is expect­ ed to spur employment for landscape architects, particularly in State and local governments. This Act, known as SAFETEA-LU, provides funds for surface transportation and transit programs, such as interstate highway construction and mainte­ nance, pedestrian and bicycle trails, and safe routes to schools.  Projections data from the National Employment Matrix Occupational Title Landscape architects.  soc  Code 17-1012  Employment, 2006 28,000  Projected employment, 2016 32,000  Change, 2006-2016 Number Percent 4,600 16  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  156 Occupational Outlook Handbook  In addition to the work related to new development and con­ struction, landscape architects are expected to be involved in historic preservation, land reclamation, and refurbishment of existing sites. Additionally, landscape architects will be needed to create security perimeters that are better integrated with their surroundings for many of the Nation’s landmarks, monuments, and buildings. Job prospects. In addition to growth, the need to replace landscape architects who retire or leave the labor force will pro­ duce some additional job openings. Opportunities will vary by year and geographic region, de­ pending on local economic conditions. During a recession, when real estate sales and construction slow down, landscape architects may face greater competition for jobs and sometimes layoffs. But because landscape architects can work on many different types of projects, they may have steadier work than other design professionals when traditional construction slows. New graduates can expect to face competition for jobs in the largest and most prestigious landscape architecture firms, but there should be good job opportunities overall as demand for landscape architecture services increases. Many employ­ ers prefer to hire entry-level landscape architects who have internship experience, which significantly reduces the amount of on-the-job training required. Opportunities will be best for landscape architects who develop strong technical skills—such as computer design—communication skills, and knowledge of environmental codes and regulations. Those with additional training or experience in urban planning increase their opportu­ nities for employment in landscape architecture firms that spe­ cialize in site planning as well as landscape design.  Earnings In May 2006, median annual earnings for landscape architects were $55,140. The middle 50 percent earned between $42,720 and $73,240. The lowest 10 percent earned less than $34,230 and the highest 10 percent earned over $95,420. Architectural, engineering, and related services employed more landscape ar­ chitects than any other group of industries, and there the median annual earnings were $56,060 in May 2006.  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, cartogra­ phers, photogrammetrists, and surveying technicians; civil en­ gineers; 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 scien­ tists also study plants and do related work. Environmental sci­ entists and hydrologists, and geoscientists, like many landscape architects, 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: y American Society of Landscape Architects, Career Information, 636 Eye St.NW., Washington, DC 20001-3736. Internet: http://www.asla.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  General information on registration or licensing requirements is available from: y Council of Landscape Architectural Registration Boards, 3949 Pender Dr., Suite 120, Vienna, VA 22030. Internet: http://www.clarb.org  Surveyors, Cartographers, Photogrammetrists, and Surveying and Mapping Technicians (0*NET 17-1021.00, 17-1022.00, 17-3031.00, 17-3031.01, 17-3031.02)  Significant Points  • •  •  About 7 out of 10 jobs were in architectural, engineer­ ing, and related services. Opportunities will be best for surveyors, cartogra­ phers, and photogrammetrists who have a bachelor’s degree and strong technical skills. Overall employment of surveyors, cartographers, pho­ togrammetrists, and surveying technicians is expected to grow much faster than the average for all occupa­ tions through the year 2016.  Nature of the Work Surveyors, cartographers, and photogrammetrists are responsi­ ble for measuring and mapping the Earth’s surface. Surveyors establish official land, airspace, and water boundaries. They write descriptions of land for deeds, leases, and other legal doc­ uments; define airspace for airports; and take measurements of construction and mineral sites. Other surveyors provide data about the shape, contour, location, elevation, or dimension of land or land features. Cartographers and photogrammetrists collect, analyze, interpret, and map geographic information from surveys and from data and photographs collected using airplanes and satellites. Surveying and mapping technicians as­ sist these professionals by collecting data in the field, making calculations, and helping with computer-aided drafting. Col­ lectively, these occupations play key roles in the field of geo­ spatial information. Surveyors measure distances, directions, and angles between points and elevations of points, lines, and contours on, above, and below the Earth’s surface. In the field, they select known survey reference points and determine the precise location of important features in the survey area using specialized equip­ ment. Surveyors also research legal records, look for evidence of previous boundaries, and analyze data to determine the loca­ tion of boundary lines. They are sometimes called to provide expert testimony in court about their work. Surveyors also re­ cord their results, verify the accuracy of data, and prepare plots, maps, and reports. Some surveyors perform specialized functions closer to those of cartographers and photogrammetrists than to those of tradi­ tional surveyors. For example, geodetic surveyors use high-ac­ curacy techniques, including satellite observations, to measure  Professional and Related Occupations 157  large areas of the earth’s surface. Geophysical prospecting sur­ veyors mark sites for subsurface exploration, usually to look for petroleum. Marine or hydrographic surveyors survey harbors, rivers, and other bodies of water to determine shorelines, the topography of the bottom, water depth, and other features. Surveyors use the Global Positioning System (GPS) to locate reference points with a high degree of precision. To use this system, a surveyor places a satellite signal receiver—a small in­ strument mounted on a tripod—on a desired point, and another receiver on a point for which the geographic position is known. The receiver simultaneously collects information from several satellites 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 interpret and check the results produced by the new technology. Field measurements are often taken by a survey party that gathers the information needed by the surveyor. A typical sur­ vey party consists of a party chief and one or more surveying technicians and helpers. The party chief, who may be either a surveyor or a senior surveying technician, leads day-to-day work activities. Surveying technicians assist the party chief by adjusting and operating surveying instruments, such as the total station, which measures and records angles and distances si­ multaneously. Surveying technicians or assistants position and hold the vertical rods, or targets, that the operator sights on to measure angles, distances, or elevations. They may hold mea­ suring tapes if electronic distance-measuring equipment is not used. Surveying technicians compile notes, make sketches, and enter the data obtained from surveying instruments into com­ puters either in the field or at the office. Survey parties also may include laborers or helpers who perform less-skilled du­ ties, such as clearing brush from sight lines, driving stakes, or carrying equipment. Photogrammetrists and cartographers measure, map, and chart the Earth’s surface. Their work involves everything from performing geographical research and compiling data to pro­ ducing maps. They collect, analyze, and interpret both spatial data—such as latitude, longitude, elevation, and distance—and nonspatial data—for example, population density, land-use patterns, annual precipitation levels, and demographic charac­ teristics. Their maps may give both physical and social char­ acteristics of the land. They prepare maps in either digital or graphic form, using information provided by geodetic surveys and remote sensing systems including aerial cameras, satellites, and LIDAR. LIDAR—light-imaging detection and ranging—uses lasers attached to planes and other equipment to digitally map the to­ pography of the Earth. It is often more accurate than traditional surveying methods and also can be used to collect other forms of data, such as the location and density of forests. Data devel­ oped by LIDAR can be used by surveyors, cartographers, and photogrammetrists to provide spatial information to specialists in geology, seismology, forestry, and construction, and other fields. Geographic Information Systems (GIS) have become an in­ tegral tool for surveyors, cartographers and photogrammetrists, and surveying and mapping technicians. Workers use GIS to assemble, integrate, analyze, and display data about location in   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a digital format. They also use GIS to compile information from a variety of sources. GIS typically are used to make maps which combine information useful for environmental studies, geology, engineering, planning, business marketing, and other disciplines. As more of these systems are developed, many mapping specialists are being called geographic information specialists. Work environment. Surveyors and surveying technicians 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 suit­ able for fieldwork. Construction-related work may be limited during times of inclement weather. Surveyors and technicians engage in active, sometimes stren­ uous, work. They often stand for long periods, walk consider­ able distances, and climb hills with heavy packs of instruments and other equipment. They also can be exposed to all types of weather. Traveling is sometimes part of the job, and land sur­ veyors and technicians may commute long distances, stay away from home overnight, or temporarily relocate near a survey site. Surveyors also work indoors while planning surveys, searching court records for deed information, analyzing data, and prepar­ ing reports and maps. Cartographers and photogrammetrists spend most of their time in offices using computers. However, certain jobs may require extensive field work to verify results and acquire data.  *,  |  .1  I Surveyors use sophisticated equipment to take measurements.  158 Occupational Outlook Handbook  Training, Other Qualifications, and Advancement Most surveyors, cartographers, and photogrammetrists have a bachelor’s degree in surveying or a related field. Every State requires that surveyors be licensed. Education and training. In the past, many people with little formal training started as members of survey crews and worked their way up to become licensed surveyors, but this has become increasingly difficult to do. Now, most surveyors need a bach­ elor’s degree. A number of universities offer bachelor’s degree programs in surveying, and many community colleges, techni­ cal institutes, and vocational schools offer 1-, 2-, and 3-year programs in surveying or surveying technology. Cartographers and photogrammetrists usually have a bache­ lor’s degree in cartography, geography, surveying, engineering, forestry, computer science, or a physical science, although a few enter these positions after working as technicians. With the development of GIS, cartographers and photogrammetrists need more education and stronger technical skills—including more experience with computers—than in the past. Most cartographic and photogrammetric technicians also have specialized postsecondary education. High school students in­ terested in surveying and cartography should take courses in algebra, geometry, trigonometry, drafting, mechanical drawing, and computer science. Licensure. All 50 States and all U.S. territories license sur­ veyors. For licensure, most State licensing boards require that individuals pass a written examination given by the National Council of Examiners for Engineering and Surveying (NCEES). Most States also require surveyors to pass a written examina­ tion prepared by the State licensing board. Licensing happens in stages. After passing a first exam, the Fundamentals of Surveying, most candidates work under the supervision of an experienced surveyor for 4 years and then for licensure take a second exam, the Principles and Practice of Surveyors. Specific requirements for training and education vary among the States. An increasing number of States require a bache­ lor’s degree in surveying or in a closely related field, such as civil engineering or forestry, regardless of the number of years of experience. Some States require the degree to be from a school accredited by the Accreditation Board for Engineering and Technology. Many States also have a continuing education requirement. Additionally a number of States require cartographers and photogrammetrists to be licensed as surveyors, and some States have specific licenses for photogrammetrists. Other qualifications. Surveyors, cartographers, and pho­ togrammetrists should be able to visualize objects, distances, 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 con­ dition because they work outdoors and often carry equipment over difficult terrain. They need good eyesight, coordination, and hearing to communicate verbally and using hand signals. Surveying is a cooperative operation, so good interpersonal skills and the ability to work as part of a team is important. Good office skills also are essential because surveyors must be able to research old deeds and other legal papers and prepare reports that document their work.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Certification and advancement. High school graduates with no formal training in surveying usually start as apprentices. Be­ ginners with postsecondary school training in surveying usually can start as technicians or assistants. With on-the-job experi­ ence and formal training in surveying—either in an institutional program or from a correspondence school—workers may ad­ vance to senior survey technician, then to party chief. Depend­ ing on State licensing requirements, in some cases they may advance to licensed surveyor. The National Society of Professional Surveyors, a mem­ ber organization of the American Congress on Surveying and Mapping, has a voluntary certification program for surveying technicians. Technicians are certified at four levels requiring progressive amounts of experience and the passing of written examinations. Although not required for State licensure, many employers require certification for promotion to positions with greater responsibilities. The American Society for Photogrammetry and Remote Sensing has voluntary certification programs for technicians and professionals in photogrammetry, remote sensing, and GIS. To qualify for these professional distinctions, individuals must meet work experience and training standards and pass a written examination. The professional recognition these certifications can help workers gain promotions.  Employment Surveyors, cartographers, photogrammetrists, and surveying technicians held about 148,000 jobs in 2006. Employment was distributed by occupational specialty as follows: Surveying and mapping technicians..................................... 76,000 Surveyors...............................................................................60,000 Cartographers and photogrammetrists.................................. 12,000 The architectural, engineering, and related services indus­ try—including firms that provided surveying and mapping ser­ vices to other industries on a contract basis—provided 7 out of 10 jobs for these workers. Federal, State, and local governmen­ tal agencies provided about 14 percent of these jobs. Major Federal Government employers are the U.S. Geological Survey (USGS), the Bureau of Land Management (BLM), the National Geodetic Survey, the National Geospatial Intelligence Agency, and the Army Corps of Engineers. Most surveyors in State and local government work for highway departments or urban plan­ ning and redevelopment agencies. Construction, mining and utility companies also employ surveyors, cartographers, photo­ grammetrists, and surveying technicians.  Job Outlook Surveyors, cartographers, photogrammetrists, and surveying and mapping technicians should have favorable job prospects. These occupations should experience much faster than average employment growth. Employment change. Overall employment of surveyors, cartographers, photogrammetrists, and surveying and mapping technicians is expected to increase by 21 percent from 2006 to 2016, which is much faster than the average for all occupations. Increasing demand for fast, accurate, and complete geographic information will be the main source of growth for these occupa­ tions.  Professional and Related Occupations 159  Projections data from the National Employment Matrix Occupational Title Surveyors, cartographers, photogrammetrists, and surveying technicians........................................................................................ Cartographers and photogrammetrists.......................................... .. Surveyors......................................................................................... .. Surveying and mapping technicians............................................. ..  soc Code  17-1021 17-1022 17-3031  Employment, 2006  Projected employment, 2016  148,000 12,000 60,000 76,000  Change, 2006-2016 Number Percent  179,000 15,000 74,000 90,000  31,000 2,500 14,000 15,000  21 20 24 19  NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Informa­ tion Included in the Handbook. ____________________________________________________  An increasing number of firms are interested in geographic information and its applications. For example, GIS can be used to create maps and information used in emergency planning, security, marketing, urban planning, natural resource explora­ tion, construction, and other applications. Also, the increased popularity of online mapping systems has created a higher de­ mand for and awareness of geographic information among con­ sumers.  Job prospects. In addition to openings from growth, job openings will continue to arise from the need to replace work­ ers who transfer to other occupations or who leave the labor force altogether. Many of the workers in these occupations are approaching retirement age. Opportunities for surveyors, cartographers, and photogrammetrists should remain concentrated in engineering, survey­ ing, mapping, building inspection, and drafting services firms. However, employment may fluctuate from year to year with construction activity or with mapping needs for land and re­ source management. Opportunities should be stronger for professional surveyors than for surveying and mapping technicians. Advancements in technology, such as total stations and GPS, have made survey­ ing parties smaller than they once were. Additionally, cartog­ raphers, photogrammetrists, and technicians who produce more basic GIS data may face competition for jobs from offshore firms and contractors. As technologies become more complex, opportunities will be best for surveyors, cartographers, and photogrammetrists who have a bachelor’s degree and strong technical skills. Increasing demand for geographic data, as opposed to traditional survey­ ing services, will mean better opportunities for cartographers and photogrammetrists who are involved in the development and use of geographic and land information systems.  Earnings Median annual earnings of cartographers and photogramme­ trists were $48,240 in May 2006. The middle 50 percent earned between $37,480 and $65,240. The lowest 10 percent earned less than $30,910 and the highest 10 percent earned more than $80,520. Median annual earnings of surveyors were $48,290 in May 2006. The middle 50 percent earned between $35,720 and $63,990. The lowest 10 percent earned less than $26,690 and the highest 10 percent earned more than $79,910. Median an­ nual earnings of surveyors employed in architectural, engineer­ ing, and related services were $47,570 in May 2006. Median annual earnings of surveying and mapping techni­ cians were $32,340 in May 2006. The middle 50 percent earned   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  between $25,070 and $42,230. The lowest 10 percent earned less than $20,020, and the highest 10 percent earned more than $53,310. Median annual earnings of surveying and mapping technicians employed in architectural, engineering, and related services were $30,670 in May 2006, while those employed by local governments had median annual earnings of $37,550.  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. Carto­ graphic and geodetic surveying are related to the work of envi­ ronmental scientists and geoscientists, who study the earth’s in­ ternal composition, surface, and atmosphere. Cartography also is related to the work of geographers and urban and regional planners, who study and decide how the earth’s surface is being and may be used.  Sources of Additional Information For career information on surveyors, cartographers, photogram­ metrists, and surveying technicians, contact: 'y American Congress on Surveying 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: y National Society of Professional Surveyors, Suite 403, 6 Montgomery Village Ave., Gaithersburg, MD 20879. For information on a career as a geodetic surveyor, contact: y American Association of Geodetic Surveying (AAGS), Suite 403, 6 Montgomery Village Ave., Gaithersburg, MD 20879. For career information on photogrammetrists, photogrammetric technicians, remote sensing scientists and image-based cartographers or geographic information system specialists, contact: y ASPRS: Imaging and Geospatial Information Society, 5410 Grosvenor Lane., Suite 210, Bethesda, MD 20814-2160. Internet: http://www.asprs.org General information on careers in photogrammetry, mapping, and surveying is available from: y MAPPS: Management Association for Private Photogrammetric Surveyors, 1760 Reston Parkway, Suite 515, Reston, VA 20190. Internet: http://www.mapps.org Information on about careers in remote sensing, photogram­ metry, surveying, GIS, and other geography-related disciplines also is available from the Spring 2005 Occupational Outlook Quarterly article, “Geography Jobs”, available online at: http://www.bls.gov/opub/ooq/2005/spring/art01.pdf  160 Occupational Outlook Handbook  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, 17-2111.00, 17-2111.01, 17-2111.02, 17-2111.03, 17-2112.00, 17-2121.00, 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 in engineering is required for most entry-level jobs. • Starting salaries are among the highest of all college graduates. • Continuing education is critical for engineers as tech­ nology evolves. Nature of the Work Engineers apply the principles of science and mathematics to develop economical solutions to technical problems. Their work is the link between scientific discoveries and the commer­ cial applications that meet societal and consumer needs. Many engineers develop new products. During this process, they consider several factors. For example, in developing an industrial robot, engineers precisely specify the functional re­ quirements; design and test the robot’s components; integrate the components to produce the final design; and evaluate the design’s overall effectiveness, cost, reliability, and safety. This process applies to the development of many different products, such as chemicals, computers, power plants, helicopters, and toys. In addition to design and development, many engineers work in testing, production, or maintenance. These engineers super­ vise production in factories, determine the causes of compo­ nent failure, and test manufactured products to maintain qual­ ity. They also estimate the time and cost to complete projects. Supervisory engineers are responsible for major components or entire projects. (See the statement on engineering and natural sciences managers elsewhere in the Handbook.) Engineers use computers extensively to produce and analyze designs; to simulate and test how a machine, structure, or sys­ tem operates; to generate specifications for parts; and to monitor product quality and control process efficiency. Nanotechnol­ ogy, which involves the creation of high-performance materials and components by integrating atoms and molecules, also is introducing entirely new principles to the design process. Most engineers specialize. Following are details on the 17 engineering specialties covered in the Federal Government’s Standard Occupational Classification (SOC) system. Numer­ ous other specialties are recognized by professional societies, and each of the major branches of engineering has numerous  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  subdivisions. Civil engineering, for example, includes struc­ tural and transportation engineering, and materials engineer­ ing includes ceramic, metallurgical, and polymer engineering. Engineers also may specialize in one industry, such as motor vehicles, or in one type of technology, such as turbines or semi­ conductor materials. • Aerospace engineers design, develop, and test aircraft, spacecraft, and missiles and supervise the manufacture of these products. Those who work with aircraft are called aeronauti­ cal engineers, and those working specifically with spacecraft are astronautical engineers. Aerospace engineers develop new technologies for use in aviation, defense systems, and space ex­ ploration, often specializing in areas such as structural design, guidance, navigation and control, instrumentation and com­ munication, or production methods. They also may specialize in a particular type of aerospace product, such as commercial aircraft, military fighter jets, helicopters, spacecraft, or missiles and rockets, and may become experts in aerodynamics, thermo­ dynamics, celestial mechanics, propulsion, acoustics, or guid­ ance and control systems. • Agricultural engineers apply knowledge of engineering technology and science to agriculture and the efficient use of biological resources. Because of this, they are also referred to as biological and agricultural engineers. They design agricul­ tural machinery, equipment, sensors, processes, and structures, such as those used for crop storage. Some engineers specialize in areas such as power systems and machinery design; struc­ tures and environment engineering; and food and bioprocess engineering. They develop ways to conserve soil and water and to improve the processing of agricultural products. Agricultural engineers often work in research and development, production, sales, or management. • Biomedical engineers develop devices and procedures that solve medical and health-related problems by combining their knowledge of biology and medicine with engineering princi­ ples and practices. Many do research, along with life scien­ tists, chemists, and medical scientists, to develop and evaluate systems and products such as artificial organs, prostheses (ar­ tificial devices that replace missing body parts), instrumenta­ tion, medical information systems, and health management and care delivery systems. Biomedical engineers may also design devices used in various medical procedures, imaging systems such as magnetic resonance imaging (MRI), and devices for au­ tomating insulin injections or controlling body functions. Most engineers in this specialty need a sound background in another engineering specialty, 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. • Chemical engineers apply the principles of chemistry to solve problems involving the production or use of chemicals and biochemicals. They design equipment and processes for large-scale chemical manufacturing, plan and test methods of  Professional and Related Occupations 161  manufacturing products and treating byproducts, and super­ vise production. Chemical engineers also work in a variety of manufacturing industries other than chemical manufactur­ ing, such as those producing energy, electronics, food, cloth­ ing, and paper. They also work in health care, biotechnology, and business services. Chemical engineers apply principles of physics, mathematics, and mechanical and electrical engineer­ ing, as well as chemistry. Some may specialize in a particular chemical process, such as oxidation or polymerization. Others specialize in a particular field, such as nanomaterials, or in the development of specific products. They must be aware of all aspects of chemicals manufacturing and how the manufacturing process affects the environment and the safety of workers and consumers. • Civil engineers design and supervise the construction of roads, buildings, airports, tunnels, dams, bridges, and water supply and sewage systems. They must consider many factors in the design process, from the construction costs and expected lifetime of a project to government regulations and potential environmental hazards such as earthquakes and hurricanes. Civil engineering, considered one of the oldest engineering dis­ ciplines, encompasses many specialties. The major ones are structural, water resources, construction, environmental, trans­ portation, and geotechnical engineering. Many civil engineers hold supervisory or administrative positions, from supervisor of a construction site to city engineer. Others may work in design, construction, research, and teaching. • Computer hardware engineers research, design, develop, test, and oversee the manufacture and installation of computer hardware. Hardware includes 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 software systems that control computers. These workers are covered elsewhere in the Handbook.) The work of computer hardware engineers is very similar to that of electronics engi­ neers in that they may design and test circuits and other elec­ tronic components, but computer hardware engineers do that work only as it relates to computers and computer-related equipment. The rapid advances in computer technology are largely a result of the research, development, and design efforts of these engineers. • Electrical engineers design, develop, test, and supervise the manufacture of electrical equipment. Some of this equipment includes electric motors; machinery controls, lighting, and wir­ ing in buildings; automobiles; aircraft; radar and navigation systems; and power generation, control, and transmission de­ vices used by electric utilities. Although the terms “electrical” and “electronics” engineering often are used interchangeably in academia and industry, electrical engineers have traditionally focused on the generation and supply of power, whereas elec­ tronics engineers have worked on applications of electricity to control systems or signal processing. Electrical engineers spe­ cialize in areas such as power systems engineering or electrical equipment manufacturing. • Electronics engineers, except computer are responsible for a wide range of technologies, from portable music players to the global positioning system (GPS), which can continuously   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Engineers sometimes perform tests in laboratories. provide the location, for example, of a vehicle. Electronics en­ gineers design, develop, test, and supervise the manufacture of electronic equipment such as broadcast and communications systems. Many electronics engineers also work in areas closely related to computers. However, engineers whose work is re­ lated exclusively to computer hardware are considered com­ puter hardware engineers. Electronics engineers specialize in areas such as communications, signal processing, and control systems or have a specialty within one of these areas—control systems or aviation electronics, for example. • Environmental engineers develop solutions to environmen­ tal problems using the principles of biology and chemistry. They are involved in water and air pollution control, recycling, waste disposal, and public health issues. Environmental engi­ neers conduct hazardous-waste management studies in which they evaluate the significance of the hazard, advise on treatment and containment, and develop regulations to prevent mishaps. They design municipal water supply and industrial wastewater treatment systems. They conduct research on the environmen­ tal impact of proposed construction projects, analyze scientific data, and perform quality-control checks. Environmental engi­ neers are concerned with local and worldwide environmental issues. They study and attempt to minimize the effects of acid rain, global warming, automobile emissions, and ozone deple­ tion. They may also be involved in the protection of wildlife. Many environmental engineers work as consultants, helping their clients to comply with regulations, to prevent environmen­ tal damage, and to clean up hazardous sites. • Health and safety engineers, except mining safety engineers and inspectors prevent harm to people and property by apply­ ing knowledge of systems engineering and mechanical, chemi­ cal, and human performance principles. Using this specialized knowledge, they identify and measure potential hazards, such as the risk of fires or the dangers involved in handling of toxic chemicals. They recommend appropriate loss prevention mea­ sures according to the probability of harm and potential dam­ age. Health and safety engineers develop procedures and de­ signs to reduce the risk of illness, injury, or damage. Some work in manufacturing industries to ensure the designs of new products do not create unnecessary hazards. They must be able  162 Occupational Outlook Handbook  to anticipate, recognize, and evaluate hazardous conditions, as well as develop hazard control methods. • Industrial engineers determine the most effective ways to use the basic factors of production—people, machines, materi­ als, information, and energy—to make a product or provide a service. They are primarily concerned with increasing produc­ tivity through the management of people, methods of business organization, and technology. To maximize efficiency, indus­ trial engineers carefully study the product requirements and design manufacturing and information systems to meet those requirements with the help of mathematical methods and mod­ els. They develop management control systems to aid in finan­ cial planning and cost analysis, and design production planning and control systems to coordinate activities and ensure product quality. They also design or improve systems for the physical distribution of goods and services and determine the most ef­ ficient plant locations. Industrial engineers develop wage and salary administration systems and job evaluation programs. Many industrial engineers move into management positions be­ cause the work is closely related to the work of managers. • Marine engineers and naval architects are involved in the design, construction, and maintenance of ships, boats, and re­ lated equipment. They design and supervise the construction of everything from aircraft carriers to submarines, and from sail­ boats to tankers. Naval architects work on the basic design of ships, including hull form and stability. Marine engineers work on the propulsion, steering, and other systems of ships. Marine engineers and naval architects apply knowledge from a range of fields to the entire design and production process of all water vehicles. Other workers who operate or supervise the operation of marine machinery on ships and other vessels sometimes may be called marine engineers or, more frequently, ship engineers, but they do different work and are covered under water trans­ portation occupations elsewhere in the Handbook. • Materials engineers are involved in the development, pro­ cessing, and testing of the materials used to create a range of products, from computer chips and aircraft wings to golf clubs and snow skis. They work with metals, ceramics, plastics, semiconductors, and composites to create new materials that meet certain mechanical, electrical, and chemical requirements.  •-'=6v4f  Some engineers, such as these mining engineers, work part of their time outdoors.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  They also are involved in selecting materials for new applica­ tions. Materials engineers have developed the ability to cre­ ate and then study materials at an atomic level, using advanced processes to replicate the characteristics of materials and their components with computers. Most materials engineers special­ ize in a particular material. For example, metallurgical engi­ neers specialize in metals such as steel, and ceramic engineers develop ceramic materials and the processes for making them into useful products such as glassware or fiber optic communi­ cation lines. • Mechanical engineers research, design, develop, manu­ facture, and test tools, engines, machines, and other mechan­ ical devices. Mechanical engineering is one of the broadest engineering disciplines. Engineers in this discipline work on power-producing machines such as electric generators, inter­ nal combustion engines, and steam and gas turbines. They also work on power-using machines such as refrigeration and air­ conditioning equipment, machine tools, material handling sys­ tems, elevators and escalators, industrial production equipment, and robots used in manufacturing. Mechanical engineers also design tools that other engineers need for their work. In addi­ tion, mechanical engineers work in manufacturing or agricul­ ture production, maintenance, or technical sales; many become administrators or managers. • Mining and geological engineers, including mining safety engineers find, extract, and prepare coal, metals, and minerals for use by manufacturing industries and utilities. They design open-pit and underground mines, supervise the construction of mine shafts and tunnels in underground operations, and devise methods for transporting minerals to processing plants. Mining engineers are responsible for the safe, economical, and envi­ ronmentally sound operation of mines. Some mining engineers work with geologists and metallurgical engineers to locate and appraise new ore deposits. Others develop new mining equip­ ment or direct mineral-processing operations that separate min­ erals 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 em­ phasis on protecting the environment, many mining engineers work to solve problems related to land reclamation and water and air pollution. 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 in­ spect walls and roof surfaces, monitor air quality, and examine mining equipment for compliance with safety practices. • Nuclear engineers research and develop the processes, in­ struments, and systems used to derive benefits from nuclear en­ ergy and radiation. They design, develop, monitor, and operate nuclear plants to generate power. They may work on the nucle­ ar 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 development of fusion energy. Some specialize in the development of nuclear power sources for na­ val vessels or spacecraft; others find industrial and medical uses for radioactive materials, as in equipment used to diagnose and treat medical problems. • Petroleum engineers search the world for reservoirs con­ taining oil or natural gas. Once these resources are discovered,  Professional and Related Occupations 163  petroleum 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 de­ sign equipment and processes to achieve the maximum profit­ able recovery of oil and gas. Because only a small proportion of oil and gas in a reservoir flows out under natural forces, pe­ troleum 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 doing computer-controlled drilling or fracturing to connect a larger area of a reservoir to a single well. Because even the best tech­ niques in use today recover only a portion of the oil and gas in a reservoir, petroleum engineers research and develop technology and methods to increase recovery and lower the cost of drilling and production operations. Work environment. Most engineers work in office buildings, laboratories, or industrial plants. Others may spend time out­ doors at construction sites and oil and gas exploration and pro­ duction sites, where they monitor or direct operations or solve onsite problems. Some engineers travel extensively to plants or worksites here and abroad. Many engineers work a standard 40-hour week. At times, deadlines or design standards may bring extra pressure to a job, requiring engineers to work longer hours.  Training, Other Qualifications, and Advancement Engineers typically enter the occupation with a bachelor’s de­ gree in an engineering specialty, but some basic research posi­ tions may require a graduate degree. Engineers offering their services directly to the public must be licensed. Continuing education to keep current with rapidly changing technology is important for engineers. Education and training. A bachelor’s degree in engineering is required for almost all entry-level engineering jobs. College graduates with a degree in a natural science or mathematics oc­ casionally may qualify for some engineering jobs, especially in specialties in high demand. Most engineering degrees are granted in electrical, electronics, mechanical, or civil engineer­ ing. However, engineers trained in one branch may work in related branches. For example, many aerospace engineers have training in mechanical engineering. This flexibility allows em­ ployers to meet staffing needs in new technologies and special­ ties 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 ematics and the physical and life sciences. Many programs also include courses in general engineering. A design course, some­ times accompanied by a computer or laboratory class or both, is part of the curriculum of most programs. General courses not directly related to engineering, such as those in the social sciences or humanities, are also often required. In addition to the standard engineering degree, many colleges offer 2-year or 4-year degree programs in engineering technol­ ogy. These programs, which usually include various hands-on laboratory classes that focus on current issues in the applica-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  A bachelor’s degree in engineering is required for most entry-  level jobs. tion of engineering principles, prepare students for practical design and production work, rather than for jobs that require more theoretical and scientific knowledge. Graduates 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 techni­ cian 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 experienced engineers obtain graduate degrees in engineering or business administration to learn new technology and broaden their education. Many high-level executives in government and industry began their careers as engineers. About 1,830 programs at colleges and universities offer bach­ elor’s degrees in engineering that are accredited by the Accredi­ tation Board for Engineering and Technology (ABET), Inc., and there are another 710 accredited programs in engineering technology. ABET accreditation is based on a program’s fac­ ulty, curriculum, and facilities; the achievement of a program’s students; program improvements; and institutional commitment to specific principles of quality and ethics. Although most in­ stitutions offer programs in the major branches of engineering, only a few offer programs in the smaller specialties. Also, pro­ grams of the same title may vary in content. For example, some programs emphasize industrial practices, preparing students for a job in industry, whereas others are more theoretical and are designed to prepare students for graduate work. Therefore, stu­ dents should investigate curriculums and check accreditations carefully before selecting 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), with courses in English, social studies, and humanities. Bachelor’s degree programs in engineering typically are designed to last 4 years, but many students find that it takes between 4 and 5 years to complete their studies. In  164 Occupational Outlook Handbook  a typical 4-year college curriculum, the first 2 years are spent studying mathematics, basic sciences, introductory engineer­ ing, humanities, and social sciences. In the last 2 years, most courses are in engineering, usually with a concentration in one specialty. Some programs offer a general engineering curricu­ lum; students then specialize on the job or in graduate school. Some engineering schools have agreements with 2-year colleges whereby the college provides the initial engineering education, and the engineering school automatically admits students for their last 2 years. In addition, a few engineering schools have arrangements that allow students who spend 3 years in a liberal arts college studying pre-engineering subjects and 2 years in an engineering school studying core subjects to receive a bachelor’s degree from each school. Some colleges and universities offer 5-year master’s degree programs. Some 5-year or even 6-year cooperative plans combine classroom study and practical work, permitting students to gain valuable experience and to finance part of their education. Licensure. All 50 States and the District of Columbia re­ quire 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 ABET-accredited engineering program, 4 years of relevant work experience, and successful completion of a State exami­ nation. Recent graduates can start the licensing process by tak­ ing the examination in two stages. The initial Fundamentals of Engineering (FE) examination can be taken upon graduation. Engineers who pass this examination commonly are called engineers in training (EIT) or engineer interns (El). After ac­ quiring suitable work experience, EITs can take the second examination, the Principles and Practice of Engineering exam. Several States have imposed mandatory continuing education requirements for relicensure. Most States recognize licensure from other States, provided that the manner in which the initial license was obtained meets or exceeds their own licensure re­ quirements. Many civil, electrical, mechanical, and chemical engineers are licensed PEs. Independent of licensure, various certification programs are offered by professional organizations to demonstrate competency in specific fields of engineering. Other qualifications. Engineers should be creative, inquisi­ tive, analytical, and detail oriented. They should be able to work as part of a team and to communicate well, both orally and in writing. Communication abilities are becoming increas­ ingly important as engineers frequently interact with specialists in a wide range of fields outside engineering. Certification and advancement. 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 be­ come technical specialists or to supervise a staff or team of engi­ neers and technicians. Some may eventually become engineer­ ing managers or enter other managerial or sales jobs. In sales, an engineering background enables them to discuss a product’s technical aspects and assist in product planning, installation, and use. (See the statements under management and business  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and financial operations occupations, and the statement on sales engineers elsewhere in the Handbook.) Numerous professional certifications for engineers exist and may be beneficial for advancement to senior technical or mana­ gerial positions. Many certification programs are offered by the professional societies listed as sources of additional informa­ tion for engineering specialties at the end of this statement.  Employment In 2006, engineers held about 1.5 million jobs. The distribution of employment by engineering specialty follows: Civil engineers.................................................................... 256,000 Mechanical engineers.......................................................... 227,000 Industrial engineers............................................................. 201,000 Electrical engineers..............................................................153,000 Electronics engineers, except computer.............................. 138,000 Aerospace engineers............................................................. 90,000 Computer hardware engineers.............................................. 79,000 Environmental engineers....................................................... 54,000 Chemical engineers............................................................... 30,000 Health and safety engineers, except mining safety engineers and inspectors.............................25,000 Materials engineers............................................................... 22,000 Petroleum engineers...............................................................17,000 Nuclear engineers...................................................................15,000 Biomedical engineers.............................................................14,000 Marine engineers and naval architects.................................... 9,200 Mining and geological engineers, including mining safety engineers....................................... 7,100 Agricultural engineers............................................................. 3,100 All other engineers.............................................................. ] 70,000 About 37 percent of engineering jobs were found in manu­ facturing industries and another 28 percent were in the profes­ sional, scientific, and technical services sector, primarily in architectural, engineering, and related services. Many engi­ neers also worked in the construction, telecommunications, and wholesale trade industries. Federal, State, and local governments employed about 12 percent of engineers in 2006. About half 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 en­ gineers in State and local government agencies worked in high­ way and public works departments. In 2006, about 3 percent of engineers 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—for example, petroleum engineering jobs tend to be located in ar­ eas with sizable petroleum deposits, such as Texas, Louisiana, Oklahoma, Alaska, and California. Others, such as civil en­ gineering, are widely dispersed, and engineers in these fields often move from place to place to work on different projects. Engineers are employed in every major industry. The indus­ tries employing the most engineers in each specialty are given in table 1, along with the percent of occupational employment in the industry.  Professional and Related Occupations 165  Table 1. Percent concentration of engineering specialty employment in key industries, 2006 Specialty_____________________________________ Industry________________________________________ Aerospace engineers Aerospace product and parts manufacturing.................... Agricultural engineers Food manufacturing........................................................... Architectural, engineering, and related services............. Biomedical engineers Medical equipment and supplies manufacturing............ Scientific research and development services................. Chemical engineers Chemical manufacturing.................................................... Architectural, engineering, and related services............. Civil engineers Architectural, engineering, and related services............. Computer hardware engineers Computer and electronic product manufacturing........... Computer systems design and related services............... Electrical engineers Architectural, engineering, and related services............. Electronics engineers, except computer Computer and electronic product manufacturing........... Telecommunications.......................................................... Environmental engineers Architectural, engineering, and related services............. State and local government............................................... Health and safety engineers, except mining State and local government.............................................................................. safety engineers and inspectors Transportation equipment manufacturing...................................................... Industrial engineers Machinery manufacturing............................................................................... Architectural, engineering, and related services........................................... Marine engineers and naval architects Primary metal manufacturing......................................................................... Materials engineers Semiconductor and other electronic component manufacturing................ Architectural, engineering, and related services........................................... Mechanical engineers Transportation equipment manufacturing...................................................... Mining and geological engineers, Mining................................................................................................................ including mining safety engineers Research and development in the physical, engineering, and life sciences Nuclear engineers Electric power generation, transmission and distribution............................ Oil and gas extraction...................................................................................... Petroleum engineers___________________  Job Outlook Employment of engineers is expected to grow about as fast as the average for all occupations over the next decade, but growth will vary by specialty. Environmental engineers should experi­ ence the fastest growth, while civil engineers should see the largest employment increase. Overall job opportunities in en­ gineering are expected to be good. Overall employment change. Overall engineering employ­ ment is expected to grow by 11 percent over the 2006-16 de­ cade, about as fast as the average for all occupations. Engineers have traditionally been concentrated in slower growing or de­ clining manufacturing industries, in which they will continue to be needed to design, build, test, and improve manufactured products. However, increasing employment of engineers in faster growing service industries should generate most of the employment growth. Job outlook varies by engineering spe­ cialty, as discussed later. Competitive pressures and advancing technology will force companies to improve and update product designs and to op­ timize their manufacturing processes. Employers will rely on engineers to increase productivity and expand output of goods and services. New technologies continue to improve the design process, enabling engineers to produce and analyze various product designs much more rapidly than in the past. Unlike in some other occupations, however, technological advances are not expected to substantially limit employment opportunities in engineering because engineers will continue to develop new products and processes that increase productivity.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Percent  49 25 15 20 20  29 15 49 41 19 21  26 15 29 21 10  18 8  29 11  9 22  14 58 30 27 43  Offshoring of engineering work will likely dampen domes­ tic employment growth to some degree. There are many welltrained, often English-speaking engineers available around the world willing to work at much lower salaries than U.S. engi­ neers. The rise of the Internet has made it relatively easy for part 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 employment growth. Even so, there will always be a need for onsite engineers to interact with other employees and clients. Overall job outlook. Overall job opportunities in engineer­ ing are expected to be good because the number of engineer­ ing graduates should be in rough balance with the number of job openings between 2006 and 2016. In addition to openings from job growth, many openings will be created by the need to replace current engineers who retire; transfer to management, sales, or other occupations; or leave engineering for other rea­ sons. 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 aerospace, however, large cutbacks in defense expenditures and in government funding for research and development have re­ sulted in significant layoffs of engineers in the past. The trend toward contracting for engineering work with engineering ser­ vices firms, both domestic and foreign, has also made engineers more vulnerable to layoffs during periods of lower demand.  166 Occupational Outlook Handbook  It is important for engineers, as it is for workers in other tech­ nical and scientific occupations, to continue their education throughout their careers because much of their value to their employer depends on their knowledge of the latest technology. Engineers in high-technology areas, such as biotechnology or information technology, may find that technical knowledge be­ comes outdated rapidly. By keeping current in their field, engi­ neers are able to deliver the best solutions and greatest value to their employers. Engineers who have not kept current in their field may find themselves at a disadvantage when seeking pro­ motions or during layoffs.  Employment change and job outlook by engineering spe­ cialty. • Aerospace engineers are expected to have 10 percent growth in employment over the projections decade, about as fast as the average for all occupations. Increases in the number and scope of military aerospace projects likely will generate new jobs. In addition, new technologies expected to be used on commercial aircraft produced during the next decade should spur demand for aerospace engineers. The employment outlook for aero­ space engineers appears favorable. The number of degrees granted in aerospace engineering has declined for many years because of a perceived lack of opportunities in this field. Al­ though this trend has reversed, new graduates continue to be needed to replace aerospace engineers who retire or leave the occupation for other reasons. • Agricultural engineers are expected to have employment growth of 9 percent over the projections decade, about as fast as the average for all occupations. More engineers will be needed to meet the increasing demand for using biosensors to  determine the optimal treatment of crops. Employment growth should also result from the need to increase crop yields to feed an expanding population and produce crops used as renewable energy sources. Moreover, engineers will be needed to develop more efficient agricultural production and conserve resources. • Biomedical engineers are expected to have 21 percent em­ ployment growth over the projections decade, much faster than the average for all occupations. The aging of the population and the focus on health issues will drive demand for better med­ ical devices and equipment designed by biomedical engineers. Along with the demand for more sophisticated medical equip­ ment and procedures, an increased concern for cost-effective­ ness will boost demand for biomedical engineers, particularly in pharmaceutical manufacturing and related industries. How­ ever, because of the growing interest in this field, the number of degrees granted in biomedical engineering has increased greatly. Biomedical engineers, particularly those with only a bachelor’s degree, may face competition for jobs. Unlike many other engineering specialties, a graduate degree is recommend­ ed or required for many entry-level jobs. • Chemical engineers are expected to have employment growth of 8 percent over the projections decade, about as fast as the average for all occupations. Although overall employment in the chemical manufacturing industry is expected to decline, chemical companies will continue to research and develop new chemicals and more efficient processes to increase output of existing chemicals. Among manufacturing industries, phar­ maceuticals may provide the best opportunities for jobseekers. However, most employment growth for chemical engineers will be in service-providing industries such as professional, scien-  Projections data from the National Employment Matrix Occupational Title Engineers.............................................................. Aerospace engineers........................................................ Agricultural engineers................................................... Biomedical engineers....................................... Chemical engineers............................................... Civil engineers......................................................... Computer hardware engineers..................... Electrical and electronics engineers........................................ Electrical engineers............................................. Electronics engineers, except computer............................. Environmental engineers............................................ Industrial engineers, including health and safety......................... Health and safety engineers, except mining safety engineers and inspectors...................................................... Industrial engineers.............................................. Marine engineers and naval architects............................................ Materials engineers.................................................. Mechanical engineers................................................ Mining and geological engineers, including mining safety engineers.................................................................. Nuclear engineers............................................... Petroleum engineers......................................... Engineers, all other..........................................................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Change, 2006-2016 Number Percent 160,000 11 9,200 10 300 9 3,000 21 2,400 8 46,000 18 3,600 5 15,000 5 9,600 6 5,100 4 14,000 25 43,000 19  soc  Employment, 2006  17-2000 17-2011 17-2021 17-2031 17-2041 17-2051 17-2061 17-2070 17-2071 17-2072 17-2081 17-2110  1,512,000 90,000 3,100 14,000 30,000 256,000 79,000 291,000 153,000 138,000 54,000 227,000  17-2111 17-2112 17-2121 17-2131 17-2141  25,000 201,000 9,200 22,000 226,000  28,000 242,000 10,000 22,000 235,000  2,400 41,000 1,000 900 9,400  10 20 11 4 4  17-2151 17-2161 17-2171 17-2199  7,100 15,000 17,000 170,000  7,800 16,000 18,000 180.000  700 1,100 900 9.400  10 7 5 6  NOTE: Data in this table are rounded. See the discussion of the employment projections table  tion Included in the Handbook.  Projected employment, 2016 1,671,000 99,000 3,400 17,000 33,000 302,000 82,000 306,000 163,000 143,000 68,000 270,000  Code  in the Handbook introductory chapter on Occupational Infonna-  Professional and Related Occupations 167  tific, and technical services, particularly for research in energy and the developing fields of biotechnology and nanotechnol­ ogy• Civil engineers are expected to experience 18 percent em­ ployment growth during the projections decade, faster than the average for all occupations. Spurred by general population growth and the related need to improve the Nation’s infrastruc­ ture, more civil engineers will be needed to design and construct or expand transportation, water supply, and pollution control systems and buildings and building complexes. They also will be needed to repair or replace existing roads, bridges, and other public structures. Because construction industries and archi­ tectural, engineering and related services employ many civil engineers, employment opportunities will vary by geographic area and may decrease during economic slowdowns, when con­ struction is often curtailed. • Computer hardware engineers are expected to have 5 percent employment growth over the projections decade, slower than the average for all occupations. Although the use of informa­ tion technology continues to expand rapidly, the manufacture of computer hardware is expected to be adversely affected by intense foreign competition. As computer and semiconductor manufacturers contract out more of their engineering needs to both domestic and foreign design firms, much of the growth in employment of hardware engineers is expected in the computer systems design and related services industry. • Electrical engineers are expected to have employment growth of 6 percent over the projections decade, slower than the average for all occupations. Although strong demand for electrical devices—including electric power generators, wire­ less phone transmitters, high-density batteries, and navigation systems—should spur job growth, international competition and the use of engineering services performed in other coun­ tries will limit employment growth. Electrical engineers work­ ing in firms providing engineering expertise and design services to manufacturers should have better job prospects. • Electronics engineers, except computer are expected to have employment growth of 4 percent during the projections decade, slower than the average for all occupations. Although rising de­ mand for electronic goods—including communications equip­ ment, defense-related equipment, medical electronics, and consumer products—should continue to increase demand for electronics engineers, foreign competition in electronic prod­ ucts development and the use of engineering services performed in other countries will limit employment growth. Growth is expected to be fastest in service-providing industries—particu­ larly in firms that provide engineering and design services. • Environmental engineers should have employment growth of 25 percent during the projections decade, much faster than the average for all occupations. More environmental engineers will be needed to comply with environmental regulations and to develop methods of cleaning up existing hazards. A shift in emphasis toward preventing problems rather than control­ ling those that already exist, as well as increasing public health concerns resulting from population growth, also are expected to spur demand for environmental engineers. Because of this employment growth, job opportunities should be good even as more students earn degrees. Even though employment of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  i  Overall job opportunities in engineering are expected to be good. environmental engineers should be less affected by economic conditions than most other types of engineers, a significant eco­ nomic downturn could reduce the emphasis on environmental protection, reducing job opportunities. • Health and safety engineers, except mining safety engineers and inspectors are projected to experience 10 percent employ­ ment growth over the projections decade, about as fast as the average for all occupations. Because health and safety engi­ neers make production processes and products as safe as pos­ sible, their services should be in demand as concern increases for health and safety within work environments. As new tech­ nologies for production or processing are developed, health and safety engineers will be needed to ensure that they are safe. • Industrial engineers are expected to have employment growth of 20 percent over the projections decade, faster than the average for all occupations. As firms look for new ways to reduce costs and raise productivity, they increasingly will turn to industrial engineers to develop more efficient processes and reduce costs, delays, and waste. This should lead to job growth for these engineers, even in manufacturing industries with slowly growing or declining employment overall. Because their work is similar to that done in management occupations, many industrial engineers leave the occupation to become man­ agers. Many openings will be created by the need to replace  168 Occupational Outlook Handbook  industrial engineers who transfer to other occupations or leave the labor force. • Marine engineers and naval architects are expected to expe­ rience employment growth of 11 percent over the projections decade, about as fast as the average for all occupations. Strong demand for naval vessels and recreational small craft should more than offset the long-term decline in the domestic design and construction of large oceangoing vessels. Good prospects are expected for marine engineers and naval architects because of growth in employment, the need to replace workers who re­ tire or take other jobs, and the limited number of students pur­ suing careers in this occupation. • Materials engineers are expected to have employment growth of 4 percent over the projections decade, slower than the average for all occupations. Although employment is expected to decline in many of the manufacturing industries in which materials engineers are concentrated, growth should be strong for materials engineers working on nanomaterials and biomate­ rials. As manufacturing firms contract for their materials engi­ neering needs, employment growth is expected in professional, scientific, and technical services industries also. • Mechanical engineers are projected to have 4 percent em­ ployment growth over the projections decade, slower than the average for all occupations. This is because total employment in manufacturing industries—in which employment of mechan­ ical engineers is concentrated—is expected to decline. Some new job opportunities will be created due to emerging technolo­ gies in biotechnology, materials science, and nanotechnology. Additional opportunities outside of mechanical engineering will exist because the skills acquired through earning a degree in mechanical engineering often can be applied in other engi­ neering specialties. • Mining and geological engineers, including mining safety engineers are expected to have 10 percent employment growth over the projections decade, about as fast as the average for all occupations. Following a lengthy period of decline, strong  growth in demand for minerals and increased use of mining engineers in the oil and gas extraction industry is expected to create some employment growth over the 2006-16 period. Moreover, many mining engineers currently employed are ap­ proaching retirement age, a factor that should create additional job openings. Furthermore, relatively few schools offer mining engineering programs, resulting in good job opportunities for graduates. The best opportunities may require frequent travel or even living overseas for extended periods of time as mining operations around the world recruit graduates of U.S. mining engineering programs. • Nuclear engineers are expected to have employment growth of 7 percent over the projections decade, about as fast as the average for all occupations. Most job growth will be in re­ search and development and engineering services. Although no commercial nuclear power plants have been built in the United States for many years, nuclear engineers will be needed to op­ erate existing plants and design new ones, including research­ ing 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. Nuclear engineers are expected to have good employment opportunities because the small number of nuclear engineering graduates is likely to be in rough balance with the number of job openings. • Petroleum engineers are expected to have 5 percent employ­ ment growth over the projections decade, more slowly than the average for all occupations. Even though most of the potential petroleum-producing areas in the United States already have been explored, petroleum engineers will increasingly be needed to develop new methods of extracting more resources from ex­ isting sources. Favorable opportunities are expected for petro­ leum engineers because the number of job openings is likely to exceed the relatively small number of graduates. Petroleum engineers work around the world and, in fact, the best employ­ ment opportunities may include some work in other countries.  Table 2: Earnings distribution by engineering specialty, May 2006 Specialty Aerospace engineers.......................................... Agricultural engineers................................................ Biomedical engineers................................................. Chemical engineers......................................... Civil engineers................................................. Computer hardware engineers............................... Electrical engineers................................. Electronics engineers, except computer................... Environmental engineers......................................... Health and safety engineers, except mining safety engineers and inspectors....................................... Industrial engineers..................................................... Marine engineers and naval architects..................................... Materials engineers.................................................... Mechanical engineers............................................. Mining and geological engineers, including mining safety engineers.................................................... Nuclear engineers................................................ Petroleum engineers................................... All other engineers.............................................  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Lowest 10% 59,610 42,390 44,930 50,060 44,810 53,910 49,120 52,050 43,180  Lowest 25% 71,360 53,040 56,420 62,410 54,520 69,500 60,640 64,440 54,150  Median 87,610 66,030 73,930 78,860 68,600 88,470 75,930 81,050 69,940  Highest 25% 106,450 80,370 93,420 98,100 86.260 111,030 94,050 99,630 88,480  41,050 44,790 45,200 46,120 45,170  51,630 55,060 56,280 57,850 55,420  66,290 68,620 72,990 73,990 69,850  83,240 84,850 90,790 92,210 87,550  42,040 65,220 57,960 46,080  54,390 77,920 75,880 62,710  72,160 90,220 98,380 81,660  94,110 105,710 123,130 100,320  Highest 10% 124,550 96,270 116,330 118,670 104,420 135,260 115,240 119,900 106,230 100,160 100,980 113,320 112,140 104,900 128,410 124,510 145,600+ 120,610  Professional and Related Occupations 169  Table 3: Average starting salary by engineering specialty and degree , 2007 Curriculum Aerospace/aeronautical/ astronautical...................... Agricultural........................... Architectual........................... Bioengineering and biomedical......................... Chemical............................... Civil........................................ Computer............................... Electrical/electronics and communications............... Environmental/ environmental health........ Industrial/manufacturing..... Materials............................... Mechanical............................ Mining and mineral.............. Nuclear.................................. Petroleum..............................  Bachelor’s  Master’s  Ph.D.  $53,408 49,764 48,664  $62,459  $73,814  — —  — —  51,356 59,361 48,509 56,201  59,240 68,561 48,280 60,000  73,667 62,275 92,500  55,292  66,309  75,982  64,759  _  77,364  — 62,798  — 72,763  — 59,167 57,000  — — —  47,960 55,067 56,233 54,128 54,381 56,587 60,718  _  _  Source: National Association of Colleges and Employers  Earnings Earnings for engineers vary significantly by specialty, industry, and education. Variation in median earnings and in the earnings distributions for engineers in various specialties is especially significant. Table 2 shows wage-and-salary earnings distribu­ tions in May 2006 for engineers in specialties covered in this statement. In the Federal Government, mean annual salaries for en­ gineers ranged from $75,144 in agricultural engineering to $107,546 in ceramic engineering in 2007. As a group, engineers earn some of the highest average start­ ing salaries among those holding bachelor’s degrees. Table 3 shows average starting salary offers for engineers, according to a 2007 survey by the National Association of Colleges and Employers.  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; computer program­ mers; computer software engineers; mathematicians; drafters; engineering technicians; sales engineers; science technicians; and physical and life scientists, including agricultural and food scientists, biological scientists, conservation scientists and for­ esters, atmospheric scientists, chemists and materials scientists, environmental scientists and hydrologists, geoscientists, and physicists and astronomers.  Sources of Additional Information Information about careers in engineering is available from: > JETS, 1420 King St., Suite 405, Alexandria, VA 22314. Internet: http://www.jets.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Information on ABET-accredited engineering programs is available from: > ABET, Inc., 111 Market Place, Suite 1050, Baltimore, MD 21202. Internet: http://www.abet.org Those interested in information on the Professional Engineer licensure should contact: > National Council of Examiners for Engineering and Surveying, P.O. Box 1686, Clemson, SC 29633. Internet: http://www.ncees.org y National Society of Professional Engineers, 1420 King St., Alexandria, VA 22314. Internet: http://www.nspe.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. Internet: http://www.asee.org Information on obtaining engineering positions with the Fed­ eral Government is available from the Office of Personnel Man­ agement through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interac­ tive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article “How to get a job in the Federal Government,” online at: http://www.bls.gov/opub/ooq/2004/summer/art01.pdf. For more detailed information on an engineering specialty, contact societies representing the individual branches of en­ gineering. Each can provide information about careers in the particular branch. Aerospace engineers y Aerospace Industries Association, 1000 Wilson Blvd., Suite 1700, Arlington, VA 22209. Internet: http://www.aia-aerospace.org y American Institute of Aeronautics and Astronautics, Inc., 1801 Alexander Bell Dr., Suite 500, Reston, VA 20191. Internet: http://www.aiaa.org Agricultural engineers y American Society of Agricultural and Biological Engineers, 2950 Niles Rd., St.Joseph, MI 49085. Internet: http://www.asabe.org Biomedical engineers y Biomedical Engineering Society, 8401 Corporate Dr., Suite 140, Landover, MD 20785. Internet: http://www.bmes.org Chemical engineers > American Chemical Society, Department of Career Services, 1155 16th St.NW., Washington, DC 20036. Internet: http ://www.chemistry.org y American Institute of Chemical Engineers, 3 Park Ave., New York, NY 10016. Internet: http://www.aiche.org Civil engineers y American Society of Civil Engineers, 1801 Alexander Bell Dr., Reston, VA 20191. Internet: http://www.asce.org Computer hardware engineers y IEEE Computer Society, 1730 Massachusetts Ave. NW., Washington, DC 20036. Internet: http://www.computer.org  170 Occupational Outlook Handbook  Electrical and electronics engineers  y Institute of Electrical and Electronics Engineers-USA, 1828 L St.NW., Suite 1202, Washington, DC 20036. Internet: http://www.ieeeusa.org Environmental engineers y American Academy of Environmental Engineers, 130 Holiday Court, Suite 100, Annapolis, MD 21401. Internet: http://www.aaee.net Health and safety engineers > American Society of Safety Engineers, 1800 E Oakton St., Des Plaines, IL 60018. Internet: http://www.asse.org > Board of Certified Safety Professionals, 208 Burwash Ave., Savoy, IL 61874. Internet: http://www.bcsp.org Industrial engineers > Institute of Industrial Engineers, 3577 Parkway LaNE., Suite 200, Norcross, GA 30092. Internet: http://www.iienet.org Marine engineers and naval architects y SocietyofNavalArchitectsandMarineEngineers,601Pavonia Ave., Jersey City, NJ 07306. Internet: http://www.sname.org Materials engineers y ASM International, 9639 Kinsman Rd., Materials Park, OH 44073. Internet: http://www.asminternational.org  > Minerals, Metals, and Materials Society, 184 Thom Hill Rd., Warrendale, PA 15086. Internet: http://www.tms.org Mechanical engineers y American Society of Heating, Refrigerating, and Air­ Conditioning Engineers, Inc., 1791 Tullie Circle NE„ Atlanta, GA 30329. Internet: http://www.ashrae.org y American Society of Mechanical Engineers, 3 Park Ave., New York, NY 10016. Internet: http://www.asme.org y SAE Internationa], 400 Commonwealth Dr., Warrendale, PA 15096. Internet: http://www.sae.org Mining and geological engineers, including mining safety engineers > Society for Mining, Metallurgy, and Exploration, Inc., 8307 Shaffer Parkway, Littleton, CO 80127. Internet: http://www.smenet.org Nuclear engineers y American Nuclear Society, 555 North Kensington Ave., La Grange Park, IL 60526. Internet: http://www.ans.org Petroleum engineers y Society of Petroleum Engineers, P.O. Box 833836, Richardson, TX 75083. Internet: http://www.spe.org  Drafters and Engineering Technicians Drafters (0*NET 17-3011.00,17-3011.01, 17-3011.02, 17-3012.00, 17-3012.01, 17-3012.02, 17-3013.00, 17-3019.99)  Significant Points •  The type and quality of training programs vary con­ siderably so 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 computeraided design and drafting systems.  •  Employment is projected to grow more slowly than  •  average. Demand for drafters varies by specialty and depends on the needs of local industry.  Nature of the Work Drafters prepare technical drawings and plans, which are used to build everything from manufactured products such as toys, toasters, industrial machinery, and spacecraft to structures such as houses, office buildings, and oil and gas pipelines. In the past, drafters sat at drawing boards and used pencils, pens, compasses, protractors, triangles, and other drafting de­ vices to prepare a drawing by hand. Now, most drafters use Computer Aided Design and Drafting (CADD) systems to pre­ pare drawings. Consequently, some drafters may be referred to as CADD operators.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  With CADD systems, drafters can create and store draw­ ings electronically so that they can be viewed, printed, or programmed directly into automated manufacturing systems. CADD systems also permit drafters to quickly prepare varia­ tions of a design. Although drafters use CADD extensively, it is only a tool. Drafters still need knowledge of traditional draft­ ing techniques, in addition to CADD skills. Despite the nearly universal use of CADD systems, manual drafting and sketching are used in certain applications. Drafters’ drawings provide visual guidelines and show how to construct a product or structure. Drawings include techni­ cal details and specify dimensions, materials, and procedures. Drafters fill in technical details using drawings, rough sketches, specifications, and calculations made by engineers, surveyors, architects, or scientists. For example, drafters use their knowl­ edge of standardized building techniques to draw in the details of a structure. Some use their understanding of engineering and manufacturing theory and standards to draw the parts of a machine; they determine design elements, such as the numbers and kinds of fasteners needed to assemble the machine. Draft­ ers use technical handbooks, tables, calculators, and computers to complete their work. Drafting work has many specialties: 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,  Professional and Related Occupations 171  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 and wiring in communication centers, power plants, 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 drawings showing the detail and assembly of a wide variety of machinery and mechanical devices, indicating 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, re­ fineries, chemical plants, and process piping systems. Work environment. Drafters usually work in comfortable of­ fices. They may sit at adjustable drawing boards or drafting ta­ bles when doing manual drawings, although most drafters work at computer terminals much of the time. Because they spend long periods in front of computers doing detailed work, drafters may be susceptible to eyestrain, back discomfort, and hand and wrist problems. Most drafters work a standard 40-hour week; only a small number work part time.  _______ I Drafters pay careful attention to detail in their technical draw­ ings.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement Employers prefer applicants who have completed postsecond­ ary school training in drafting, which is offered by technical institutes, community colleges, and some 4-year colleges and universities. Employers are most interested in applicants with well-developed drafting and mechanical drawing skills; knowl­ edge of drafting standards, mathematics, science, and engineer­ ing technology; and a solid background in CADD techniques. Education and training. High school courses in mathemat­ ics, science, computer technology, design, computer graphics, and, where available, drafting are useful for people consider­ ing a drafting career. Employers prefer applicants who have also completed training after high school at a technical institute, community college, or 4-year college or university. The kind and quality of drafting training programs vary con­ siderably so prospective students should be careful in select­ ing a program. They should contact prospective employers to ask which schools they prefer and contact schools to ask for information about the kinds of jobs their graduates have, the type and condition of instructional facilities and equipment, and teacher qualifications. Technical institutes offer intensive technical training, but they provide a less general education than do community colleges. Either certificates or diplomas may be awarded. Many techni­ cal institutes offer 2-year associate degree programs, which are similar to, or part of, the programs offered by community col­ leges or State university systems. Their programs vary consid­ erably in length and in the type of courses offered. Some public vocational-technical schools serve local students and emphasize the type of training preferred by local employers. Most require a high school diploma or its equivalent for admission. Other technical institutes are run by private, often for-profit, organiza­ tions sometimes called proprietary schools. Community colleges offer courses similar to those in techni­ cal institutes but include more classes in 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 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 a 4-year college. Most 4-year col­ leges do not offer training in drafting, but they do offer classes in engineering, architecture, and mathematics that 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 spe­ cialty. Training differs somewhat within the drafting specialties, although the basics, such as mathematics, are similar. In an electronics drafting program, for example, students learn how to depict electronic components and circuits in drawings. In architectural drafting, they leam the technical specifications of buildings. Certification and other qualifications. Mechanical abil­ ity and visual aptitude are important for drafters. Prospective drafters should be able to draw well and perform detailed work accurately and neatly. Artistic ability is helpful in some special­ ized fields, as is knowledge of manufacturing and construction methods. In addit