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o? LAfiO  Occupational Outlook Handbook 2006-07 Edition  '•, IV  Ipin -  Rl ,L-'L.'’i.4y l|  K2 ? '1 v„ ^ j H , ^ K7 i  Im  py  ill n   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - ‘'fH.  r®P  ■\  ,v:,  IscT^ &  ■  jp^Y  jO  i  < i| .  B~ | v.. J  : - JB.  r  I ■ '  K  !■■«  ■-V ■*  ■  j:  February 2006 U.S. Department of Labor Bulletin 2600  BUP i 1   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Guide to the Handbook • Highlights of the job outlook between 2004 and 2014 are pre­ sented in Tomorrow’s Jobs, page 1. • A list of occupations growing the fastest and having the largest numerical increases in employment, by the most significant source of postsecondary education or training, appears on page 8. • Additional sources of information on careers and State occu­ pational employment projections, are described in Sources of Career Information, page 9. • Additional sources of information are described in Sources of Education, Training, and Financial Aid on page 14. • Job-search methods and tips on applying for a job and evaluat­ ing a job offer are discussed in Finding a Job and Evaluating a Job Offer, page 17. • 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 Informa­ tion Included in the Handbook, page 22. • Brief descriptions of the nature of the work, the number of jobs in 2004, the projected employment change over the 2004-14 period, and the most significant source of postsecondary edu­ cation or training, are presented in Data for Occupations Not Studied in Detail, page 661. • The assumptions and methods used to prepare BLS employ­ ment projections are described briefly on page 674. • A list of Occupational Information Network (0*NET) codes that are related to Handbook occupations are found on page 676. • An alphabetical index of occupations found in the Handbook is on page 684. • See page 711 for a description of BLS employment outlook information on the Internet. • Information about publications closely related to the HandbookCareer Guide to Industries, 2006-07 Edition, Bulletin 2601; Occupational Projections and Training Data, 2006-07 Edition, Bulletin 2602; and Occupational Outlook Quarterly—appears on page 712 and the inside back cover.  Occupational Outlook Handbook  2006-07 Edition  U.S. Department of Labor Elaine L. Chao, Secretary U.S. Bureau of Labor Statistics Kathleen Utgoff, Commissioner February 2006 Bulletin 2600   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  U.S. OEPOS^OP-  U.S. GOVERNMENT OFFICIAL EDITION NOTICE  Legal Status and Use of Trademarks, Logos and Seals LA&o  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.  Use of ISBN Prefix AUTHENTICATED U.S. GOVERNMENT INFORMATION  GPO  This is the Official U.S. Government edition of this publication and is herein identified to certify its authenticity. Use of the 0-16 ISBN prefix 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.  ISBN 0-16-072941-6  90000  9  60 729416  Suggested citation: U.S. Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2006-07 Edition, Bulletin 2600. Superintendent of Documents, U.S. Government Printing Office, Washington, DC 2006.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001  ISBN 0-16-072941-6   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Acknowledgments The Bureau of Labor Statistics produced the Handbook under the general guidance and direction of Mike Pilot, Chief, Division of Occupational Outlook, Office ofOccupational Statistics and Employment Projections. ChesterC. Levine and Jon Q. Sargent, Managers of Occupa­ tional Outlook Studies, provided planning and day-to-day direction. Supervisors overseeing the research and preparation of material were Douglas Braddock, Theresa Cosca, Arlene K. Dohm, and Terry Schau. Occupational analysts who contributed material were Andrew D. Alpert, Sadie Blanchard, Hall Dillon, Tamara Dillon, Thomas DiVincenzo, Diana Gehlhaus, Henry T. Kasper, Jonathan Kelinson, Jill Lacey, William Lawhom, C. Brett Lockard, Kevin M. McCarron, Roger J. Moncarz, Michelle Murillo, Gregory Niemesh, Brian Roberts, Lynn Shniper, Patricia Tate, Dave Terkanian, Nicho­ las Terrell, Michael Wolf, Benjamin Wright, and Ian Wyatt. Editorial work was provided by Edith Baker, Monica Gabor, Lori Pastro, and Allison Tarmann, under the supervision of Mary K. Rieg. Word processing support was provided by Monique Smith and Beverly A. Williams. Computer programming support was provided by David S. Frank and Erik A. Savisaar. The cover and other art were designed by Bruce Boyd. T. Alan Lacey also contributed art. Photographs were taken by Shawn Moore, Department of Labor Photographic Services; Barry Gardner; Kevin Kennedy; Freddie Lieberman; Doug Sonders; and James Tkatch. The Bureau of Labor Statistics also wishes to express its appreciation for the cooperation and assistance of the many organizations and individuals who either contributed photographs or made their facilities available to photogra­ phers 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 convenience 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 ofjobs and cannot be expected to reflect work situations in specific establishments or localities. The Handbook, therefore, is not intended and should not be used as a guide for determining wages, hours of work, the right of a particular union to represent workers, appropriate bargaining units, or formal job evaluation systems. Nor should earnings data in the Handbook be used to compute future loss of earnings in adjudication proceedings involving work injuries or accidental deaths. Material in this publication is in the public domain and, with appropriate credit, may be reproduced without permission. Comments about the contents of this publication and suggestions for improving 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. Addtional 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 Special Features Tomorrow’s Jobs .................................................................... 001 Sources of Career Information .......................................... 009 Sources of Education, Training, and Financial Aid ......................................................................................... 014 Finding a Job and Evaluating a Job Offer ..................... 017 Occupational Information Included in the Handbook.............................................................................. 022 Data for Occupations Not Studied in Detail ................... 661  Computer scientists and database administrators ......................... Computer software engineers.......................................................... Computer support specialists and systems administrators............ Computer systems analysts.............................................................. Mathematicians................................................................................. Operations research analysts............................................................ Statisticians........................................................................................  107 Ill 113 116 119 121 123  Architects, surveyors, and cartographers Architects, except landscape and naval......................................... 125 Landscape architects......................................................................... 128 Surveyors, cartographers, photogrammetrists, and surveying technicians..................................................................................... 130 Engineers .........................................................................................  133  Assumptions and Methods Used in Preparing Employment Projections ................................................. 674  Drafters and engineering technicians Drafters.............................................................................................. Engineering technicians...................................................................  141 144  Occupational Information Network Coverage ................. 676  Life scientists Agricultural and food scientists....................................................... Biological scientists.......................................................................... Conservation scientists and foresters.............................................. Medical scientists..............................................................................  147 150 153 156  Physical scientists Atmospheric scientists...................................................................... Chemists and materials scientists.................................................... Environmental scientists and hydrologists..................................... Geoscientists...................................................................................... Physicists and astronomers..............................................................  159 162 164 167 170  Social scientists and related occupations Economists........................................................................................ Market and survey researchers......................................................... Psychologists..................................................................................... Urban and regional planners............................................................ Social scientists, other....................................................................... Science technicians.........................................................................  173 175 177 180 182 185  Index.......................................................................................... 684  Occupational Coverage Management, business, and financial occupations Management occupations Administrative services managers.................................................. Advertising, marketing, promotions, public relations, and sales managers........................................................................................ Computer and information systems managers............................... Construction managers...................................................................... Education administrators................................................................. Engineering and natural sciences managers.................................. Farmers, ranchers, and agricultural managers............................... Financial managers........................................................................... Food service managers...................................................................... Funeral directors............................................................................... Human resources, training, and labor relations managers and specialists....................................................................................... Industrial production managers........................................................ Lodging managers............................................................................. Medical and health services managers............................................ Property, real estate, and community association managers......... Purchasing managers, buyers, and purchasing agents.................. Top executives................................................................................... Business and financial operations occupations Accountants and auditors................................................................. Appraisers and assessors of real estate........................................... Budget analysts.................................................................................. Claims adjusters, appraisers, examiners, and investigators.......... Cost estimators................................................................................... Financial analysts and personal financial advisors........................ Insurance underwriters...................................................................... Loan officers...................................................................................... Management analysts........................................................................ Meeting and convention planners.................................................... Tax examiners, collectors, and revenue agents..............................  025 027 030 032 034 038 040 042 045 048 050 054 056 059 061 064 067 070 074 077 080 083 085 088 090 092 095 098  Professional and related occupations Computer and mathematical occupations Actuaries............................................................................................ 102 Computer programmers.................................................................... 104  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Community and social services occupations Counselors.......................................................................................... Probation officers and correctional treatment specialists.............. Social and human service assistants............................................... Social workers.................................................................................... Legal occupations Court reporters.................................................................................. Judges, magistrates, and other judicial workers.............................. Lawyers................................................................................................ Paralegals and legal assistants.......................................................... Education, training, library, and museum occupations Archivists, curators, and museum technicians................................. Instructional coordinators.................................................................. Librarians............................................................................................. Library technicians.............................................................................. Teacher assistants................................................................................ Teachers—adult literacy and remedial education........................... Teachers—postsecondary.................................................................. Teachers—preschool, kindergarten, elementary, middle, and secondary......................................................................................... Teachers—self-enrichment education.............................................. Teachers—special education............................................................. Art and design occupations Artists and related workers................................................................ Commercial and industrial designers............................................... Fashion designers................................................................................ Floral designers...................................................................................  189 192 194 196 199 201 204 207 210 213 214 217 219 221 223 227 231 232 235 238 240 242  Graphic designers.............................................................................. Interior designers..............................................................................  243 245  Entertainers and performers, sports and related occupations Actors, producers, and directors...................................................... Athletes, coaches, umpires, and related workers........................... Dancers and choreographers............................................................ Musicians, singers, and related workers.........................................  Police and detectives......................................................................... 362 Private detectives and investigators................................................. 366 Security guards and gaming surveillance officers......................... 368  249 252 255 257  Chefs, cooks, and food preparation workers................................... 371 Food and beverage serving and related workers............................ 374  259  Building cleaning workers................................................................ 378 Grounds maintenance workers......................................................... 380 Pest control workers.......................................................................... 382  Media and communication-related occupations Announcers........................................................................................ Broadcast and sound engineering technicians and radio operators........................................................................................ Interpreters and translators............................................................... News analysts, reporters, and correspondents............................... Photographers.................................................................................... Public relations specialists................................................................ Television, video, and motion picture camera operators and editors............................................................................................ Writers and editors............................................................................  Food preparation and serving related occupations  Building and grounds cleaning and maintenance occupations  261 263 267 269 271  Personal care and service occupations Animal care and service workers..................................................... Barbers, cosmetologists, and other personal appearance workers........................................................................................... Child care workers............................................................................. Fitness workers.................................................................................. Flight attendants................................................................................. Gaming services occupations............................................................ Personal and home care aides.......................................................... Recreation workers............................................................................  274 275  Health diagnosing and treating practitioners Audiologists....................................................................................... Chiropractors...................................................................................... Dentists.............................................................................................. Dietitians and nutritionists................................................................ Occupational therapists..................................................................... Optometrists....................................................................................... Pharmacists........................................................................................ Physical therapists............................................................................. Physician assistants........................................................................... Physicians and surgeons................................................................... Podiatrists........................................................................................... Radiation therapists........................................................................... Recreational therapists...................................................................... Registered nurses.............................................................................. Respiratory therapists........................................................................ Speech-language pathologists.......................................................... Veterinarians......................................................................................  278 280 282 284 285 287 289 292 293 295 298 300 302 303 307 309 311  Health technologists and technicians Athletic trainers................................................................................. Cardiovascular technologists and technicians............................... Clinical laboratory technologists and technicians......................... Dental hygienists............................................................................... Diagnostic medical sonographers.................................................... Emergency medical technicians and paramedics.......................... Licensed practical and licensed vocationalnurses......................... Medical records and health information technicians..................... Nuclear medicine technologists....................................................... Occupational health and safety specialistsand technicians........... Opticians, dispensing........................................................................ Pharmacy technicians........................................................................ Radiologic technologists and technicians....................................... Surgical technologists....................................................................... Veterinary technologists and technicians........................................  314 316 318 320 322 324 326 328 330 331 334 336 337 339 341  403 405 407 408 411 414 417 419 421 423 426 429  Office and administrative support occupations  Healthcare support occupations 343 344 347 348 350 353 354 356  Protective service occupations Correctional officers.......................................................................... 357 Fire fighting occupations.................................................................. 359  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  387 389 392 394 397 399 400  Sales and related occupations Advertising sales agents.................................................................... Cashiers............................................................................................... Counter and rental clerks.................................................................. Demonstrators, product promoters, and models............................ Insurance sales agents....................................................................... Real estate brokers and sales agents................................................ Retail salespersons............................................................................. Sales engineers................................................................................... Sales representatives, wholesale and manufacturing..................... Sales worker supervisors................................................................... Securities, commodities, and financial services sales agents........ Travel agents......................................................................................  Service occupations Dental assistants................................................................................ Massage therapists............................................................................ Medical assistants............................................................................. Medical transcriptionists................................................................... Nursing, psychiatric, and home health aides................................. Occupational therapist assistantsand aides..................................... Pharmacy aides................................................................................. Physical therapist assistantsand aides.............................................  384  VI  Financial clerks Bill and account collectors................................................................ Billing and posting clerks and machine operators......................... Bookkeeping, accounting, and auditing clerks.............................. Gaming cage workers....................................................................... Payroll and timekeeping clerks........................................................ Procurement clerks............................................................................. Tellers..................................................................................................  431 432 434 435 437 438 440  Information and record clerks Brokerage clerks................................................................................ Credit authorizes, checkers, and clerks......................................... Customer service representatives..................................................... File clerks............................................................................................ Hotel, motel, and resort desk clerks................................................. Human resources assistants, except payroll and timekeeping..... Interviewers........................................................................................ Library assistants, clerical................................................................. Order clerks........................................................................................ Receptionists and information clerks.............................................. Reservation and transportation ticket agents and travel clerks....  441 442 444 447 448 449 451 453 454 455 457  Material recording, scheduling, dispatching, and distributing occupations Cargo and freight agents................................................................... Couriers and messengers................................................................... Dispatchers......................................................................................... Meter readers, utilities...................................................................... Postal Service workers...................................................................... Production, planning, and expediting clerks................................... Shipping, receiving, and traffic clerks............................................  459 460 461 463 464 466 467  Stock clerks and order fillers............................................................ 469 Weighers, measurers, checkers, and samplers, recordkeeping.... 470  Heavy vehicle and mobile equipment service technicians and mechanics...................................................................................... 555 Small engine mechanics................................................................... 558  Other office and administrative support occupations Communications equipment operators........................................... Computer operators........................................................................... Data entry and information processing workers............................ Desktop publishers............................................................................ Office and administrative support worker supervisors and managers........................................................................................ Office clerks, general........................................................................ Secretaries and administrative assistants........................................  471 473 475 477  Other installation, maintenance, and repair occupations Coin, vending, and amusement machine servicers and repairers...... Heating, air-conditioning, and refrigeration mechanics and installers......................................................................................... Home appliance repairers................................................................ Industrial machinery mechanics and maintenance workers.......... Line installers and repairers............................................................. Maintenance and repair workers, general...................................... Millwrights......................................................................................... Precision instrument and equipment repairers...............................  479 481 482  Farming, fishing, and forestry occupations Agricultural workers......................................................................... 485 Fishers and fishing vessel operators................................................ 487 Forest, conservation, and logging workers.................................... 490  Production occupations  494 495 497 499 502 504 507 509 511 513 516 517 519 522 523 525 528 530 531 534  Printing occupations Bookbinders and bindery workers.................................................. Prepress technicians and workers................................................... Printing machine operators.............................................................. Textile, apparel, and furnishings occupations.......................... Woodworkers..................................................................................  596 598 600 602 606  614 616 619 622 625 626  Transportation and material moving occupations Air transportation occupations  536 538  Aircraft pilots and flight engineers................................................. 629 Air traffic controllers......................................................................... 632  540  Motor vehicle operators Bus drivers......................................................................................... Taxi drivers and chauffeurs.............................................................. Truck drivers and driver/sales workers........................................... Rail transportation occupations ................................................. Water transportation occupations.............................................. Material moving occupations........................................................  542  Vehicle and mobile equipment mechanics, installers, and repairers   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  585 587 589 592 594  Other production occupations Inspectors, testers, sorters, samplers, and weighers..................... Jewelers and precious stone and metal workers............................ Medical, dental, and ophthalmic laboratory technicians.............. Painting and coating workers, except construction and maintenance.................................................................................. Photographic process workers and processing machine operators.... Semiconductor processors...............................................................  Electrical and electronic equipment mechanics, installers, and repairers  Aircraft and avionics equipment mechanics and service technicians..................................................................................... Automotive body and related repairers........................................... Automotive service technicians and mechanics............................ Diesel service technicians and mechanics......................................  Metal workers and plastic workers Computer control programmers and operators.............................. Machinists.......................................................................................... Machine setters, operators, and tenders—metal and plastic......... Tool and die makers.......................................................................... Welding, soldering, and brazing workers.......................................  Plant and system operators Power plant operators, distributors, and dispatchers.................... 608 Stationary engineers and boiler operators...................................... 610 Water and liquid waste treatment plant and system operators..... 612  Installation, maintenance, and repair occupations  Computer, automated teller, and office machine repairers............ Electrical and electronics installers and repairers.......................... Electronic home entertainment equipment installers and repairers......................................................................................... Radio and telecommunications equipment installers and repairers.........................................................................................  562 565 567 569 572 573 575  Assemblers and fabricators.......................................................... 579 Food processing occupations........................................................ 581  Construction trades and related workers Boilermakers...................................................................................... Brickmasons, blockmasons, and stonemasons............................... Carpenters.......................................................................................... Carpet, floor, and tile installers and finishers................................. Cement masons, concrete finishers, segmental pavers, and terrazzo workers........................................................................... Construction and building inspectors.............................................. Construction equipment operators.................................................. Construction laborers........................................................................ Drywall installers, ceiling tile installers, and tapers...................... Electricians......................................................................................... Elevator installers and repairers....................................................... Glaziers............................................................................................... Hazardous materials removal workers............................................ Insulation workers............................................................................. Painters and paperhangers................................................................. Pipelayers, plumbers, pipefitters, and steamfitters......................... Plasterers and stucco masons........................................................... Roofers................................................................................................ Sheet metal workers.......................................................................... Structural and reinforcing iron and metal workers........................  560  544 547 549 552  634 637 640 644 647 650  Job Opportunities in the Armed Forces.......................... 653  vii   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Additional Information About the 2004-14 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 2005 Monthly Labor Review, or the Winter 2005-06 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, 2006-07 Edition, BLS Bulletin 2602. 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, 2006-07 Edition, BLS Bulletin 2601.  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 demand for goods and services. Population ultimately limits the size of the labor force—in­ dividuals working or looking for work—which constrains how much can be produced. Demand for various goods and ser­ vices determines employment in the industries providing them. Occupational employment opportunities, in turn, result from demand for skills needed within specific industries. Opportuni­ ties for medical assistants and other healthcare occupations, for example, have surged in response to rapid growth in demand for health services. Examining the past and projecting changes in these relation­ ships is the foundation of the Occupational Outlook Program. This chapter presents highlights of Bureau of Labor Statistics projections of the labor force and occupational and industry employment that can help to guide your career plans. Sources of detailed information about the projections appear on page viii.  Population Population trends affect employment opportunities in a number of ways. Changes in population influence the demand for goods and services. For example, a growing and aging population has increased the demand for health services. Equally important, population changes produce corresponding changes in the size and demographic composition of the labor force. The U.S. civilian noninstitutional population is expected to increase by 23.9 million over the 2004-14 period, at a slower rate of growth than during both the 1994-2004 and 1984-94 periods (chart 1). Continued growth will mean more consumers of goods and services, spurring demand for workers in a wide range of occupations and industries. The effects of population growth on various occupations will differ. The differences are partially accounted for by the age distribution of the future population.  The youth population, aged 16 to 24, will grow 2.9 percent over the 2004-14 period. As the baby boomers continue to age, the group aged 55 to 64 will increase by 36 percent or 10.4 mil­ lion persons, more than any other group. The group aged 35 to 44 will decrease in size, reflecting the birth dearth following the baby boom generation. Minorities and immigrants will constitute a larger share of the U.S. population in 2014. The number of Hispanics is projected to continue to grow much faster than those of all other racial and ethnic groups.  Labor force Population is the single most important factor in determining the size and composition of the labor force—that is, people who are either working or looking for work. The civilian labor force is projected to increase by 14.7 million, or 10 percent, to 162.1 million over the 2004-14 period. The U.S. workforce will become more diverse by 2014. White, non-Hispanic persons will continue to make up a decreas­ ing share of the labor force, falling from 70 percent in 2004 to 65.6 percent in 2014 (chart 2). However, despite relatively slow growth, white, non-Hispanics will remain the largest group in the labor force in 2014. Asians are projected to account for an increasing share of the labor force by 2014, growing from 4.3 to 5.1 percent. Hispanics are projected be the fastest growing of the four labor force groups, growing by 33.7 percent. By 2014, Hispanics will continue to constitute a larger proportion of the labor force than will blacks, whose share will grow from 11.3 percent to 12.0 percent. The numbers of men and women in the labor force will grow, but the number of women will grow at a faster rate than the number of men. The male labor force is projected to grow by 9.1 percent from 2004 to 2014, compared with 10.9 percent for  Chart 2. Percent of labor force by race and ethnic origin, 2004 and projected 2014  Chart 1. Percent change in the population and labor force, 1984-1994,1994-2004, and projected 2004-2014 Percent change  , nn Percent of labor force ■ 2004 □ 2014  ■ Labor force □ Civilian noninstitutional  Hi III 1984-1994   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1994-2004  Period  2004-2014  White  Black  Asian  All other racial groups  Other than Hispanic origin  Hispanic origin  Race and ethnic origin 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, 2004 and projected 2014 20  Percent of labor force  Chart 4. Percent change in wage and salary employment, service-providing industry divisions, 1994-2004 and projected 2004-2014  ■ 2004 □ 2014 Education and health services Professional and business services Leisure and hospitality Other services (except government) Information 16 to 24 years  25 to 34 years  35 to 44 years  45 to 54 years  55 years and older  Financial activities  Age group Trade, transporation, and utilities women. As a result, men’s share of the labor force is expected to decrease from 53.6 to 53.2 percent, while women’s share is expected to increase from 46.4 to 46.8 percent. The youth labor force, aged 16 to 24, is expected to slightly decrease its share of the labor force to 13.7 percent by 2014. The primary working age group, between 25 and 54 years old, is pro­ jected to decline from 69.3 percent of the labor force in 2004 to 65.2 percent by 2014. Workers 55 and older, on the other hand, are projected to increase from 15.6 percent to 21.2 percent of the labor force between 2004 and 2014, due to the aging of the babyboom generation (chart 3).  Employment Total employment is expected to increase from 145.6 million in 2004 to 164.5 million in 2014, or by 13 percent. The 18.9 million jobs that will be added by 2014 will not be evenly distributed across major industrial and occupational groups. Changes in consumer demand, technology, and many other factors will contribute to the continually changing employment structure in the U.S. economy. The following two sections examine projected employment change from both industrial and occupational perspectives. The industrial profile is discussed in terms of primary wage and sal­ ary 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 nearly 146 million jobs in the U.S. economy in 2004, wage and salary workers accounted for 133.5 million; self-employed workers ac­ counted for 12.1 million; and unpaid family workers accounted for about 141,000. Secondary employment accounted for 1.7 million jobs. Self-employed workers held 9 out of 10 secondary jobs; wage and salary workers held most of the remainder.  Industry Service-providing industries. The long-term shift from goodsproducing to service-providing employment is expected to con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ■ 1994-2004 □ 2004-2014  Government 0  10  20  30  40  Percent change tinue. Service-providing industries are expected to account for approximately 18.7 million of the 18.9 million new wage and salary jobs generated over the 2004-14 period (chart 4). Education and health services. This industry supersector is projected to grow faster, 30.6 percent, and add more jobs than any other industry supersector. About 3 out of every 10 new jobs created in the U.S. economy will be in either the healthcare and social assistance or private educational services sectors. Healthcare and social assistance—including private hospitals, nursing and residential care facilities, and individual and family services—will grow by 30.3 percent and add 4.3 million new jobs. Employment growth will be driven by increasing demand for healthcare and social assistance because of an aging popula­ tion and longer life expectancies. Also, as more women enter the labor force, demand for childcare services is expected to grow. Private educational services will grow by 32.5 percent and add 898,000 new jobs through 2014. Rising student 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 27.8 percent and add more than 4.5 million new jobs. Employment in administrative and support and waste man­ agement and remediation services will grow by 31 percent and add 2.5 million new jobs to the economy by 2014. The fastest growing industry in this sector will be employment services, which will grow by 45.5 percent and will contribute almost twothirds of all new jobs in administrative and support and waste management and remediation services. Employment services ranks among the fastest growing industries in the Nation and is expected to be among those that provide the most new jobs. Employment in professional, scientific, and technical services will grow by 28.4 percent and add 1.9 million new jobs by 2014.  Employment in computer systems design and related services will grow by 39.5 percent and add almost 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 main­ taining system and network security. Management, scientific, and technical consulting services also will grow very rapidly, by 60.5 percent, 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 10.6 percent and add 182,000 new jobs. Information. Employment in the information supersector is expected to increase by 11.6 percent, adding 364,000 jobs by 2014. Information contains some of the fast-growing com­ puter-related industries such as software publishers; Internet publishing and broadcasting; and Internet service providers, Web search portals, and data processing services. Employment in these industries is expected to grow by 67.6 percent, 43.5 per­ cent, and 27.8 percent, respectively. The information supersector also includes telecommunications, broadcasting, and newspaper, periodical, book, and directory publishers. Increased demand for residential and business land-line and wireless services, cable service, high-speed Internet connections, and software will fuel job growth among these industries. Leisure and hospitality. Overall employment will grow by 17.7 percent. Arts, entertainment, and recreation will grow by 25 percent and add 460,000 new jobs by 2014. Most of these new job openings will come from the amusement, gambling, and recreation sector. Job growth will stem from public participa­ tion 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 16.5 percent and add 1.8 million new jobs through 2014. Job growth will be concentrated in food services and drinking places, reflecting increases in population, dual-income families, and dining sophistication. Trade, transportation, and utilities. Overall employment in this industry supersector will grow by 10.3 percent between 2004 and 2014. Transportation and warehousing is expected to increase by 506,000 jobs, or by 11.9 percent through 2014. Truck transportation will grow by 9.6 percent, adding 129,000 new jobs, while rail transportation is projected to decline. The warehousing and storage sector is projected to grow rapidly at 24.8 percent, adding 138,000 jobs. Demand for truck transportation and warehousing services will expand as many manufacturers concentrate on their core competen­ cies and contract out their product transportation and storage functions. Employment in retail trade is expected to increase by 11 percent, from 15 million to 16.7 million. Increases in population, personal income, and leisure time will contribute to employment growth in this industry, as consumers demand more goods. Wholesale trade is expected to increase by 8.4 percent, growing from 5.7 million to 6.1 million jobs. Employment in utilities is projected to decrease by 1.3 percent through 2014. Despite increased output, employment in electric power generation, transmission, and distribution and natural gas distribution is expected to decline through 2014 due to improved technology that increases worker productivity. However, em­ ployment in water, sewage, and other systems is expected to increase 21 percent by 2014. Jobs are not easily eliminated by technological gains in this industry because water treatment and disposal are very labor-intensive activities. Digitized forwaste FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Tomorrow’s Jobs  3  Financial activities. Employment is projected to grow 10.5 percent over the 2004-14 period. Real estate and rental and leas­ ing is expected to grow by 16.9 percent and add 353,000 jobs by 2014. Growth will be due, in part, to increased demand for housing as the population grows. The fastest growing industry in the financial activities supersector will be activities related to real estate, which will grow by 32.1 percent, reflecting the housing boom that persists throughout most of the Nation. Finance and insurance is expected to increase by 496,000 jobs, or 8.3 percent, by 2014. Employment in securities, com­ modity contracts, and other financial investments and related activities is expected to grow 15.8 percent by 2014, reflecting the increased number of baby boomers in their peak savings 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 5.4 percent and add about one-third of all new jobs within finance and insurance. Insurance carriers and related activities is expected to grow by 9.5 percent and add 215,000 new jobs by 2014. The number of jobs within agencies, brokerages, and other insurance related activities is expected to grow about 19.4 percent, as many insurance carriers downsize their sales staffs and as agents set up their own businesses. Government. Between 2004 and 2014, government em­ ployment, including that in public education and hospitals, is expected to increase by 10 percent, from 21.6 million to 23.8 million jobs. Growth in government employment will be fueled by growth in State and local educational services and the shift of responsibilities from the Federal Government to the State and local governments. Local government educational services is projected to increase 10 percent, adding 783,000 jobs. State government educational services is projected to grow by 19.6 percent, adding 442,000 jobs. Federal Government employment, including the Postal Service, is expected to increase by only 1.6 percent as the Federal Government continues to contract out many government jobs to private companies. Other services (except government). Employment will grow by 14 percent. More than 1 out of every 4 new jobs in this su­ persector will be in religious organizations, which is expected to grow by 11.9 percent. Other automotive repair and maintenance will be the fastest growing industry at 30.7 percent. Also included among other services is personal care services, which is expected to increase by 19.5 percent Goods-producing industries. Employment in the goodsproducing industries has been relatively stagnant since the early 1980s. Overall, this sector is expected to decline 0.4 percent over the 2004-14 period. Although employment is expected to decline or increase more slowly than in the service-providing industries, projected growth among goods-producing industries varies considerably (chart 5). Construction. Employment in construction is expected to increase by 11.4 percent, from 7 million to 7.8 million. Demand for new housing and an increase in road, bridge, and tunnel construction will account for the bulk of job growth in this supersector. Manufacturing. Employment change in manufacturing will vary by individual industry, but overall employment in this supersector will decline by 5.4 percent or 777,000 jobs. For example, employment in transportation equipment manufacturing is expected to grow by 95,000 jobs. Due to an aging population and increasing life expectancies, pharmaceutical and medicine manufacturing is expected to grow by 26.1 percent and add 76,000 jobs through 2014. However, productivity gains, job automation, and international competition will adversely affect  4  Occupational Outlook Handbook  Chart 5. Percent change in wage and salary employment, goods-producing industry divisions, 1994-2004 and projected 2004-2014  Chart 6. Percent change in total employment by major occupational group, projected 2004-2014  Percent change ■ 1994-2004 □ 2004-2014  Professional and related Service Management, business, and financial Construction and extraction Installation, maintenance, and repair Transportation and material moving  Construction  I | 1  Manufacturing  Agriculture, forestry, and fishing  Sales and related Office and administrative support  Mining Production Farming, fishing, and forestry  employment in many other manufacturing industries. Employ­ ment in textile mills and apparel manufacturing will decline by 119,000 and 170,000jobs, respectively. Employment in computer and electronic product manufacturing also will decline by 94,000 jobs through 2014. Agriculture, forestry, fishing, and hunting. Overall employ­ ment in agriculture, forestry, fishing, and hunting is expected to decrease by 5.2 percent. Employment is expected to continue to decline due to advancements in technology. The only industry within this supersector expected to grow is support activities for agriculture and forestry, which includes farm labor contractors and farm management services. This industry is expected to grow by 18.2 percent and add 19,000 new jobs. Mining. Employment in mining is expected to decrease 8.8 percent, or by some 46,000 jobs, by 2014. Employment in coal mining and metal ore mining is expected to decline by 23.3 per­ cent and 29.3 percent, respectively. Employment in oil and gas extraction also is projected to decline by 13.1 percent through 2014. Employment decreases in these industries are attribut­ able mainly to technology gains that boost worker productivity, growing international competition, restricted access to Federal lands, and strict environmental regulations that require cleaning of burning fuels.  Occupation Expansion of service-providing industries is expected to continue, creating demand for many occupations. However, projected job growth varies among major occupational groups (chart 6). Professional and related occupations. Professional and re­ lated occupations will grow the fastest and add more new jobs than any other major occupational group. Over the 2004-14 period, a 21.2 percent increase in the number of professional and related jobs is projected, which translates into 6 million new jobs. Professional and related workers perform a wide variety of duties, and are employed throughout private industry and government. About three-quarters of the job growth will come from three groups of professional occupations—computer and mathematical occupations, healthcare practitioners and technical occupations, and education, training, and library occupations—which will add 4.5 for million jobs combined. Digitized FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -5  0  5  10  15  20  25  Percent change  Service occupations. Service workers perform services for the public. Employment in service occupations is projected to increase by 5.3 million, or 19 percent, the second largest numerical gain and second highest rate of growth among the major occupational groups. Food preparation and serving related occupations are expected to add the most jobs among the service occupations, 1.7 million by 2014. However, healthcare support occupations are expected to grow the fastest, 33.3 percent, adding 1.2 million new jobs. Management, business, andfinancial occupations. Workers in management, business, and financial occupations plan and direct the activities of business, government, and other organizations. Their employment is expected to increase by 2.2 million, or 14.4 percent, by 2014. Among managers, the numbers of preschool and childcare center/program educational administrators and of computer and information systems managers will grow the fast­ est, by 27.9 percent and 25.9 percent, respectively. General and operations managers will add the most new jobs, 308,000, by 2014. Farmers and ranchers are the only workers in this major occupational group whose numbers are expected to decline, los­ ing 155,000 jobs. Among business and financial occupations, accountants and auditors and management analysts will add the most jobs, 386,000 combined. Employment, recruitment, and placement specialists and personal financial advisors will be the fastest growing occupations in this group, with job increases of 30.5 percent and 25.9 percent, respectively. Construction and extraction occupations. Construction and extraction workers construct new residential and commercial buildings, and also work in mines, quarries, and oil and gas fields. Employment of these workers is expected to grow 12 percent, adding 931,000 new jobs. Construction trades and related work­ ers will account for more than three-fourths of these new jobs, 699,000, by 2014. Many extraction occupations will decline, reflecting overall employment losses in the mining and oil and gas extraction industries.  Installation, maintenance, and repair occupations. Workers in installation, maintenance, and repair occupations install new equipment and maintain and repair older equipment. These occupations will add 657,000 jobs by 2014, growing by 11.4 percent. Automotive service technicians and mechanics and general maintenance and repair workers will account for half of all new installation, maintenance, and repair jobs. The fast­ est growth rate will be among security and fire alarm systems installers, an occupation that is expected to grow 21.7 percent over the 2004-14 period. Transportation and material moving occupations. Transporta­ tion and material moving workers transport people and materials by land, sea, or air. The number of these workers should grow 11.1 percent, accounting for 1.1 million additional jobs by 2014. Among transportation occupations, motor vehicle operators will add the most jobs, 629,000. Material moving occupations will grow 8.3 percent and will add 405,000 jobs. Rail transportation occupations are the only group in which employment is projected to decline, by 1.1 percent, through 2014. Sales and related occupations. Sales and related workers transfer goods and services among businesses and consumers. Sales and related occupations are expected to add 1.5 million new jobs by 2014, growing by 9.6 percent. The majority of these jobs will be among retail salespersons and cashiers, occupations that will add 849,000 jobs combined. Office and administrative support occupations. Office and administrative support workers perform the day-to-day activities of the office, such as preparing and filing documents, dealing with the public, and distributing information. Employment in these occupations is expected to grow by 5.8 percent, adding 1.4 mil­ lion new jobs by 2014. Customer service representatives will add the most new jobs, 471,000. Desktop publishers will be among the fastest growing occupations in this group, increasing by 23.2 percent over the decade. However, due to rising productivity and increased automation, office and administrative support occupations also account for 11 of the 20 occupations with the largest employment declines. Farming, fishing, andforestry occupations. Farming, fishing, and forestry workers cultivate plants, breed and raise livestock, and catch animals. These occupations will decline 1.3 percent and lose 13,000 jobs by 2014. Agricultural workers, including farmworkers and laborers, accounted for the overwhelming majority of new jobs in this group. The number of fishing and hunting workers is expected to decline, by 16.6, percent, while the number of logging workers is expected to increase by less than 1 percent. Production occupations. Production workers are employed mainly in manufacturing, where they assemble goods and oper­ ate plants. Production occupations are expected to decline less than 1 percent, losing 79,000 jobs by 2014. Jobs will be created for many production occupations, including food processing workers, machinists, and welders, cutters, solderers, and brazers. Textile, apparel, and furnishings occupations, as well as assemblers and fabricators, will account for much of the job losses among production occupations. Among all occupations in the economy, computer and healthcare occupations are expected to grow the fastest over the projection period (chart 7). In fact, healthcare occupa­ tions make up 12 of the 20 fastest growing occupations, while computer occupations account for 5 out of the 20 fastest grow­ ing occupations in the economy. In addition to high growth rates, these 17 computer and healthcare occupations combined will add more than 1.8 million new jobs. High growth rates Digitized for among FRASERcomputer and healthcare occupations reflect projected https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Tomorrow’s Jobs  5  Chart 7. Percent change in employment in occupations projected to grow fastest, 2004-2014  Home health aides Network systems and data communications analysts Medical assistants  Physician assistants Computer software engineers, applications Physical therapist assistants  Dental hygienists Computer software engineers, systems software Dental assistants  Personal and home care aides Network and computer systems administrators Database administrators  Physical therapists  Forensic science technicians Veterinary technologists and technicians Diagnostic medical sonographers Physical therapist aides  Occupational therapist assistants Medical scientists, except epidemiologists Occupational therapists  0  10  20  30  40  50  60  Percent change rapid growth in the computer and data processing and health services industries. The 20 occupations listed in chart 8 will account for more than one-third of all new jobs, 7.1 million combined, over the 2004-14 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 occupa­ tions will account for some of these increases in employment, as well as occupations in education, sales, transportation, office and administrative support, and food service. Many of these occupations are very large, and will create more new jobs than will those with high growth rates. Only 3 out of the 20 fastest  6  Occupational Outlook Handbook  Chart 8. Occupations with the largest numerical increases in employment, projected 2004-2014  Chart 9. Job declines in occupations with the largest numerical decreases in employment, projected 2004-2014  Retail salespersons  Farmers and ranchers  Registered nurses  Stock clerks and order fillers  Postsecondary teachers  Sewing machine operators  Customer service representatives  File clerks  Janitors and cleaners, except maids and housekeeping cleaners  Order clerks | Mail derks and mail machine  Waiters and waitresses  operators, except postal service  Combined food preparation and serving workers, including fast food  Computer operators Secretaries, except legal, medical, and  Home health aides  executive Cutting, punching, and press machine | setters, operators, and tenders,  Nursing aides, orderlies, and attendants  metal and plastic  General and operations managers  Telemarketers  Personal and home care aides  Word processors and typists  Elementary school teachers, except special education  I Credit authorizers, checkers, and clerks  Accountants and auditors  Machine feeders and offbearers  I  Office clerks, general Laborers and freight, stock, and material movers, hand Receptionists and information clerks Landscaping and groundskeeping workers  setters, operators, and tenders  Textile winding, twisting, and drawing out machine setters, operators, and tenders  I Meter readers, utilities  Truck drivers, heavy and tractor-trailer  | Office machine operators, except I computer  Computer software engineers, applications  J Extruding and drawing machine setters, I operators, and tenders, metal and plastic  Maintenance and repair workers, general  ■ Switchboard operators, including answering service  0 100 200 300 400 500 600 700 800  Increase (in thousands) growing occupations—home health aides, personal and home care aides, and computer software application engineers—also are projected to be among the 20 occupations with the largest numerical increases in employment. Declining occupational employment stems from declining industry employment, technological advancements, changes in business practices, and other factors. For example, increased productivity and farm consolidations are expected to result in a decline of 155,000 farmers and ranchers over the 2004-14 period (chart 9). The majority of the 20 occupations with the largest numerical decreases are office and administrative support and production occupations, which are affected by increasing plant   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Textile knitting and weaving machine  -200  -150  -100  -50  0| Door-to-door sales workers, news and  vendors, and related workers Decrease (instreet thousands)  and factory automation and the implementation of office tech­ nology that reduces the needs for these workers. For example, employment of word processors and typists is expected to decline due to the proliferation of personal computers, which allows other workers to perform duties formerly assigned to word processors and typists.  Education and training Among the *20 fastest growing occupations, a bachelor’s or as­ sociate degree is the most significant source of postsecondary education or training for 12 of them—network systems and data communications analysts; physician assistants; computer soft-  Tomorrow’s Jobs  Chart  occupations with the largest numerical decreases. Table 1 lists the fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2004 and 2014, by level of postsecondary education or training.  10. Number of jobs due to growth and  replacement needs by major occupational group, projected 2004-2014 Service  Total job openings  Professional and related Office and administrative support Sales and related Management, business, and financial Transportation and material moving Production Construction and extraction Installation, maintenance, and repair Farming, fishing, and forestry  ■ Growth □ Replacement needs 8  10  12  14  Millions of jobs ware engineers, applications; physical therapist assistants; dental hygienists; computer software engineers, systems software; net­ work and computer systems administrators; database administra­ tors; forensic science technicians; veterinary technologists and technicians; diagnostic medical sonographers; and occupational therapists assistants. On-the-job training is the most significant source of postsecondary education or training for another 5 of the 20 fastest growing occupations—physical therapist aides, medical assistants, home health aides, dental assistants, and personal and home care aides. In contrast, on-the-job training is the most significant source of postsecondary education or training for 13 of the 20 occupations with the largest numerical increases; 6 of these 20 occupations have an associate or higher degree as the most significant source of postsecondary educa­ tion or training. On-the-job training also is the most significant source of postsecondary education or training for all 20 of the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  7  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 responsibil­ ities. Replacement needs are projected to account for more than 60 percent of the approximately 55 million job openings between 2004 and 2014. Thus, even occupations projected to experience slower than average growth or to decline in employment still may offer many job openings. Professional and related occupations are projected to grow faster and add more jobs than any other major occupational group, with 6 million new jobs by 2014. Three-fourths of the job growth in professional and related occupations is expected among computer and mathematical occupations; healthcare practitioners and technical occupations; and education, training, and library occupations. With 5.5 million job openings due to replacement needs, professional and related occupations are the only major group projected to generate more openings from job growth than from replacement needs. Service occupations are projected to have the l argest number of total job openings, 13.2 million, reflecting high 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 occupa­ tions and in those with relatively low pay or limited training requirements. Office automation will significantly affect many individual office and administrative support occupations. Overall, these oc­ cupations are projected to grow more slowly than average, while some are projected to decline. Office and administrative support occupations are projected to create 7.5 million job openings over the 2004-14 period, ranking third behind service and professional and related occupations. Farming, fishing, and forestry occupations are projected to have the fewest job openings, approximately 286,000. Because job growth is expected to be slow, and levels of retirement and job turnover high, more than 95 percent of these projected job openings are due to replacement needs.  8  Occupational Outlook Handbook  Table 1. Fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2004 and 2014, by level of postsecondary education or training Fastest growing occupations Occupations having the largest Postsecondary education or training level numerical job growth First-professional degree Physicians and surgeons Lawyers Pharmacists Dentists Chiropractors Doctoral degree Medical scientists, except epidemiologists Postsecondary teachers Postsecondary teachers Clinical, counseling, and school psychologists Computer and information scientists, research Medical scientists, except epidemiologists Biochemists and biophysicists Computer and information scientists, research Clinical, counseling, and school psychologists Biochemists and biophysicists Master’s degree Physical therapists Physical therapists Occupational therapists Clergy Hydrologists Educational, vocational, and school counselors Substance abuse and behavioral disorder counselors Instructional coordinators Instructional coordinators Rehabilitation counselors Bachelor’s or higher degree, plus work experience Education administrators, preschool and child care General and operations managers center/program Management analysts Computer and information systems managers Financial managers Training and development managers Computer and information systems managers Actuaries Sales managers Medical and health services managers Bachelor’s degree Network systems and data communications analysts Elementary school teachers, except special education Physician assistants Accountants and auditors Computer software engineers, applications Computer software engineers, applications Computer software engineers, systems software Computer systems analysts Network and computer systems administrators Secondary school teachers, except special and vocational education Associate degree Physical therapist assistant Registered nurses Dental hygienists Computer support specialists Forensic science technicians Dental hygienists Veterinary technologists and technicians Paralegals and legal assistants Diagnostic medical sonographers Medical records and health information technicians Postsecondary vocational award Preschool teachers, except special education Nursing aides, orderlies, and attendants Surgical technologists Preschool teachers, except special education Gaming dealers Automotive service technicians and mechanics Emergency medical technicians and paramedics Licensed practical and licensed vocational nurses Fitness trainers and aerobics instructors Hairdressers, hairstylists, and cosmetologists Work experience in a related occupation Self-enrichment education teachers First-line supervisors/managers of food preparation and serving workers Emergency management specialists First-line supervisors/managers of office and administrative support workers Gaming managers First-line supervisors/managers of construction trades and extraction workers Construction and building inspectors Self-enrichment education teachers First-line supervisors/managers of fire fighting and prevention First-line supervisors/managers of retail sales workers workers Long-term on-the-job training Fire fighters Carpenters Tile and marble setters Cooks, restaurant Athletes and sports competitors Police and sheriff’s patrol officers Coaches and scouts Plumbers, pipefitters, and steamfitters Interpreters and translators Electricians Moderate-term on-the-job training Medical assistants Customer service representatives Dental assistants Truck drivers, heavy and tractor-trailer Hazardous materials removal workers Maintenance and repair workers, general Social and human service assistants Medical assistants Residential advisors Executive secretaries and administrative assistants Short-term on-the-job training Home health aides Retail salespersons Personal and home care aides Janitors and cleaners, except maids and housekeeping cleaners Physical therapist aides Waiters and waitresses Amusement and recreation attendants Combined food preparation and serving workers, including fast food Occupational therapist aides Home health aides Pharmacists Physicians and surgeons Chiropractors Optometrists Veterinarians  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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.  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 materials carefully. Information that seems out of date or glamorizes 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 questions 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.  Local libraries. Libraries can be an invaluable source of informa­ tion. Since most areas have libraries, they can be a convenient place to look for information. Also, for those who do not otherwise have access to the Internet or e-mail, many libraries provide this access. 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. These sources often have references to organizations which can provide additional information about training and employment opportunities. Your local library also may have video materials. If you need help getting started or finding a resource, ask your librarian for assistance.  Professional societies, trade groups, and labor unions. These groups have information on an occupation or various related oc­ cupations with which they are associated or which they actively represent. This information may cover training requirements, 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 orga­ nizations that may be contacted for more information. Another valuable source for finding organizations associated with occupa­ tions is The Encyclopedia ofAssociations, an annual publication that lists trade associations, professional societies, labor unions, and fraternal and patriotic organizations.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Employers. This is the primary source of information on specific jobs. Employers may post lists of job openings and applica­ tion requirements, including the exact training and experience required, starting wages and benefits, and advancement oppor­ tunities and career paths. 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 affect their ability to attract new students. Postsecondary institutions frequently have career centers with libraries of information on different careers, listings of related jobs, and alumni contacts in various professions. Career centers frequently employ career counselors who generally provide their services 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.  Guidance and career counselors. Counselors can help you make choices about which careers might suit you best. Counsel­ ors 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 evalu­ ate 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 postsecondary 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 if the counselor is experienced. One way to do so is to ask people who have used their services in the past. The National Board of Certified Counselors and Affiliates is an institution which accredits career counselors. To verify the credentials of a career counselor and to find a career counselor in your area, contact: >- National Board for Certified Counselor and Affiliates, 3 Terrace Way, Suite D, Greensboro, NC 27403-3660. Internet: http://www.nbcc.org/cfind  Internet resources. With the growing popularity of the In­ ternet, a wide verity of career information has become easily accessible. Many online resources include job listings, resume posting services, and information on job fairs, training, and local 9  10  Occupational Outlook Handbook  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 typically included. Some sources exist primarily as a Web service. These services 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. Career 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 tion System is the Career OneStop site. This site includes: • America’s Job Bank allows you to search over a million job open­ ings 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 benefits, job train­ ing, youth programs, seminars, educational opportunities, and disabled or older worker programs. Career OneStop, along with the National Tollfree Helpline (877-USA-JOBS) and the local One-Stop Career Centers in each State, combine to provide a wide range of workforce assistance and resources: >- Career OneStop. Internet: http://www.careeronestop.org  For information on occupational wages: ► Wage Data. Internet: http://www.bls.gov/bls/blswage.htm  For information on training, workers’ rights, and job listings: >- Education and Training Administration. Internet:  http ://www.doleta.gov/jobseekers  Organizationsfor specific groups. Some organizations provide information designed to help specific groups of people. Consult directories in your library’s reference center or a career guidance office for information on additional organizations associated with specific groups.  Disabled workers: State counseling, training, and placement services for those with disabilities are available from: >- State Vocational Rehabilitation Agency. Internet:  http://www.ed.gov/Programs/EROD Information on employment opportunities, transportation, and other considerations for people with all types of disabilities is available from: ► National Organization on Disability, 910 Sixteenth St. NW., Suite 600, Wash­ ington, DC 20006. Telephone: (202) 293-5960. TTY: (202) 293-5968. Internet: http://www.nod.org/economic  For information on making accommodations in the work place for people with disabilities: >- Job Accommodation Network (JAN), P.O. Box 6080, Morgantown, WV 26506. Internet: http://www.jan.wvu.edu  A comprehensive Federal Web site of disability-related resources is accessible at: http://www.disabilityinfo.gov  Blind workers: Information on the free national reference and referral service for the blind can be obtained by contacting: >- National Federation of the Blind, Job Opportunities for the Blind (JOB), 1800 Johnson St., Baltimore, MD 21230. Telephone: (410) 659-9314. Internet:  http://www.nfb.org Use the 0*NET numbers at the start of each Handbook statement to find more information on specific occupations: >- 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: >- Career Voyages. Internet: http://www.careervoyages.org  The Department of Labor’s Bureau of Labor Statistics publishes a wide range of labor market information, from regional wages for specific occupations to statistics on National, State, and area employment. >• Bureau of Labor Statistics. Internet: http://www.bls.gov  While the Handbook discusses careers from an occupational perspective, a companion publication—Career Guide to Industries—discusses careers from an industry perspective. The Career Guide is also available at your local career center and library: ► Career Guide to Industries. Internet: http://www.bls.gov/oco/cg/home.htm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Older workers: ► National Council on the Aging, 300 D St. SW., Suite 801, Washington, DC 20024. Telephone: (202) 479-1200. Internet: http://www.ncoa.org ► National Caucus and Center on Black Aged, Inc., Senior Employ­ ment Programs, 1220 L St. NW., Suite 800, Washington, DC 20005. Telephone: (202) 637-8400. Fax: (202) 347-0895. Internet:  http ://www.ncba-aged.org  Veterans: Contact the nearest regional office of the U.S. Department of Labor’s Veterans Employment and Training Service or: >- Credentialing Opportunities Online (COOL), which explains how Army soldiers can meet civilian certification and license requirements related to their Military Occupational Specialty (MOS). Internet:  http://www.cool.army.mil/index.htm  Women: ► Department of Labor, Women’s Bureau, 200 Constitution Ave. NW., Washington, DC 20210. Telephone: (800) 827-5335. Internet:  http://www.dol.gov/wb  Sources of Career Information Federal laws, executive orders, and selected Federal grant programs bar discrimination in employment based on race, color, religion, sex, national origin, age, and handicap. Information 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 from the U.S. Office of Personnel Management through USA Jobs, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet 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. ► USA Jobs: http://www.usajobs.opm.gov  Military. The military employs and has information on hundreds of occupations. Information is available on the Montgomery G.I. Bill, which provides money for school and educational debt repayments. Information on military service can be provided by your local recruiting office. Also see the Handbook statement on Job Opportunities in the Armed Forces. For more information on careers in the military:  11  Colorado  Director, Labor Market Information, Colorado Department of Labor and Employment, 633 17th St., Suite 600, Denver, CO 80202-3660. Telephone: (303) 318-8850. Internet: http://www.coworkforce.com/lmi  Connecticut  Director, Office of Research, Connecticut Department of Labor, 200 Folly Brook Blvd., Wethersfield, CT 06109-1114. Telephone: (860) 263-6275. Internet:  http://www.ctdol.state.ct.us/lmi Delaware  Chief, Office of Occupational and Labor Market Information, Department of Labor, 4425 N. Market St.-Fox Valley Annex, Wilmington, DE 19809-1307. Telephone: (302) 761-8069. Internet:  http://www.delawareworks.com/oolmi/welcome.shtml District of Columbia Chief, Office of Labor Market Research and Information, 64 New York Ave. NE., Suite 3035, Washington, D.C. 20002. Telephone: (202) 671-1633. Internet:  http://www.does.dc.gov/does Florida  Director, 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  Georgia  Director, Workforce Information and Analysis, Room 300, Department of Labor, 223 Courtland St., CWC Building, Atlanta, GA 30303. Telephone: (404) 232-3875. Internet: http://www.dol.state.ga.us/em/get_labor_market_information.htm  Guam  >- Today’s Military. Internet: http://www.todaysmilitary.com  Chief Economist, Guam Department of Labor, P.O. Box 9970, Tamuning, Guam 96931. Telephone: (671)475-7062.  State Sources. Most States have career information delivery  Hawaii  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 range of information is provided, from employment opportunities to unemployment insurance claims. Whereas the Handbook provides information for occupa­ tions on a national level, each State has detailed informati'on on occupations and labor markets within their respective jurisdictions. State occupational projections are available at:  http://www.projectionscentral.com  Chief, Research and Statistics Office, Department of Labor and Industrial Relations, 830 Punchbowl St., Room 304, Honolulu, HI 96813. Telephone: (808) 586-8999. Internet: http://www.hiwi.org  Idaho  Chief, 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 Deputy Director of Workforce and Career Information, Illinois Department of Employment Security, Economic Information and Analysis Division, 33 S. State St., 9th Floor, Chicago, IL 60603. Telephone: (312) 793-2316. Internet:  http ://lmi.ides.state.il.us Alabama  Director, 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  Chief, Research and Analysis Section, Department of Labor and Workforce Development, P.O. Box 25501, Juneau, AK 99802-5501. Telephone: (907) 465-4518. Internet: http://almis.labor.state.ak.us  Arizona  Research Administrator, Arizona Department of Economic Security, RO. Box 6123 SC733A, Phoenix, AZ 85005-6123. Telephone: (602) 542-5984. Internet:  http://www.workforce.az.gov Arkansas  Division Chief, Labor Market Information, Department of Workforce Services, P.O. Box 2981, Little Rock, AR 72203-2981. Telephone: (501) 682-3198. Internet: http://www.arkansas.gov/esd  California  Chief, State of California Employment Development Department, Labor Market Information Division, P.O. Box 826880, Sacramento, CA 94280-0001. Tele­ phone: (916) 262-2160. Internet: http://www.calmis.cahwnet.gov   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Indiana  Director, Research and Analysis—Indiana Workforce Development, SE211,10 North Senate Ave., Indianapolis, IN 46204-2277. Telephone: (317) 232-7460. Internet: http://www.in.gov/dwd  Iowa Policy and Information Division, Iowa Workforce Development, 1000 East GrandAve.,DesMoines,IA50319-0209. Telephone: (515)281-6642. Internet:  http://www.iowaworkforce.org/lmi Kansas  Director, Kansas Department of Labor, Labor Market Information Services, 401 SW Topeka Blvd., Topeka, KS 66603-3182. Telephone: (785) 296-5058.  Intemet:http://laborstats.dol.ks.gov Kentucky  Research and Statistics Branch, Office of Employment and Training, 275 East Main St.—Mail Stop 2-WG, Frankfort, KY 40621. Telephone: (502) 564-7976. Internet: http://www.workforcekentucky.ky.gov  Louisiana  Director, Research and Statistics Division, Department of Labor, 1001 North 23rd St., Baton Rouge, LA 70804-9094. Telephone: (225) 342-3141. Internet:  http://www.laworks.net  12  Occupational Outlook Handbook  Maine Director, Labor Market Information Services Division, Maine Department of Labor, 19 Union St., Augusta, ME 04332. Telephone: (207) 287-2271. Internet:  http://www.state.me.us/labor/lmis/index.html  North Carolina Director, Labor Market Information Division, Employment Security Commis­ sion, 700 Wade Ave., Raleigh, NC 27605. Telephone: (919)733-2936. Internet:  http://www.ncesc.com  Maryland  North Dakota  Maryland Department of Labor Licensing and Regulation, Office of Labor Market Analysis and Information, Room 316, 1100 N. Eutaw, Baltimore, MD 21201. Telephone: (410) 767-2250. Internet:  Labor Market Information Manager, Job Service North Dakota, P.O. Box 5507, Bismarck, ND 58506-5507. Telephone: (701) 328-3136. Internet:  http://www.dllr.state.md.us/lmi/index.htm  http://www.jobsnd.com/data/index.html Ohio  Massachusetts Assistant Director of Economic Research, Massachusetts Division of Unemployment Assistance, 19 Stamford St., Boston, MA 02421. Telephone: (617)626-6556. Internet: http://www.detma.org/LMIdataprog.htm  Michigan Director, Bureau of Labor Market Information and Strategic Initiatives, Department of Labor and Economic Growth, 3032 West Grand Blvd., Suite 9-100, Detroit, MI 48202. Telephone: (313) 456-3100. Internet:  Director, Bureau of Labor Market Information, Office of Workforce Development, Ohio Department of Job and Family Services, 4300 Kim­ berly Pkwy., Columbus, OH 43232. Telephone: (614) 752-9494. Internet:  http://www.ohioworkforceinformer.org Oklahoma Labor Market Information, Oklahoma Employment Security Commission, P.O. Box 52003, Oklahoma City, OK 73152. Telephone: (405) 557-7221. Internet:  http://www.oesc.state.ok.us/lmi/default.htm  http://www.michlmi.org Oregon Minnesota Research Director, Department of Employment and Economic Development, Labor Market Information Office, 1st National Bank Building, 332 Minnesota St., Suite E200, St. Paul, MN55101-1351. Telephone: (651) 296-6545. Internet:  http://www.deed.state.mn.us/lmi Mississippi Chief, Labor Market Information Division, Mississippi Department of Employ­ ment Security, 1235 Echelon Pkwy., Jackson, MS 39213. Telephone: (601) 321-6262. Internet: http://mdes.ms.gov  Oregon Employment Department, Attention: Research Division, Room 207, 875 Union St. NE., Salem, OR 97311. Telephone: (503) 947-1200. Internet:  http://www.qualityinfo.org/olmisj/01misZine Pennsylvania Director, 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 Puerto Rico  Missouri LMI Research Manager, Missouri Economic Research and Information Center, P.O. Box 3150, Jefferson City, MO 65101-3150. Telephone: (573) 751-3637. Internet: http://www.missourieconomy.org  Economist, Labor Market Information Office, P.O. Box 195540, San Juan, Puerto Rico 00919-5540. Telephone: (787) 754-5347. Internet:  http://www.net-empleopr.org/almis23/index.jsp Rhode Island  Montana Research and Analysis Bureau, P.O. Box 1728, Helena, MT 59624. Telephone: (406) 444-2430. Internet: http://www.ourfactsyourfuture.org  Nebraska Administrator, Nebraska Workforce Development—Labor Market Information, Nebraska Department of Labor, P.O. Box 4600, Lincoln, NE 68509-4600. Tele­ phone: (402) 471-2600. Internet: http://www.dol.state.ne.us/nelmi.htm  Nevada Chief, Research and Analysis, Department of Employment Training and Reha­ bilitation, 500 East Third St., Carson City, NV 89713-0020. Telephone: (775) 684-0387. Internet: http://www.detr.state.nv.us/lmi/index.htm  New Hampshire Director, Economic and Labor Market Information Bureau, New Hampshire Employment Security, 32 South Main St., Concord, NH 03301-4857. Telephone: (603) 228-4123. Internet: http://www.nhes.state.nh.us/elmi  New Jersey Director, Division of Labor Market and Demographic Research, Department of Labor and Workforce Development, P.O. Box 388, Trenton, NJ 08625-0388. Telephone: (609) 984-2593. Internet: http://www.state.nj.us/Iabor/lra  New Mexico Research Chief, New Mexico Department of Labor , Economic Research and Analysis, 501 Mountain Road NE., Albuquerque, NM 87102. Telephone: (505) 222-4684. Internet: http://www.dol.state.nm.us/dolJmif.html  New York Director, Research and Statistics, New York State Department of Labor, State Office Campus, Room 400, Albany, NY 12240. Telephone: (518) 457-3805. Internet: http://www.labor.state.ny.us/workforceindustrydata/index.asp   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Assistant Director, Labor Market Information, Rhode Island Department of Labor and Training, 1511 Pontiac Ave., Cranston, RI02920. Telephone: (401) 462-8767. Internet: http://www.dlt.ri.gov/lmi  South Carolina Director, 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 Director, Labor Market Information Center, Department of Labor, 420 S. Roos­ evelt St., Aberdeen, SD 57402-4730. Telephone: (605) 626-2314. Internet:  http://www.state.sd.us/dol/lmic/index.htm Tennessee Director, Research and Statistics Division, Department of Labor and Workforce Development, 500 James Robertson Pkwy., 11th Floor, Nashville, TN 37245-1000. Telephone: (615) 741-2284. 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: (512) 491-4800. Internet:  http://www.tracer2.com Utah Director of Workforce Information, Utah Department of Workforce Services, 140 East 300 South, Salt Lake City, UT 84111. Telephone: (801) 526-9401. Internet: http://jobs.utah.gov/opencms/wi  Vermont Chief, Research and Analysis, Vermont Department of Labor, P.O. Box 488, Montpelier, VT 05601-0488. Telephone: (802) 828-4202. Internet:  http://www.labor.vermont.gov  Sources of Career Information Virgin Islands Chief, Bureau of Labor Statistics, Department of Labor, P.O. Box 303359, St Thomas, VI 00803-3359. Telephone: (340) 776-3700. Internet:  http://www.vidol.gov Virginia  13  West Virginia WORKFORCE West Virginia, Research, Information and Analysis Division, 112 California Ave., Charleston, WV 25303-0112. Telephone: (304) 558-2660. Internet: http://www.wvbep.org/bep/lmi  Wisconsin  Director, Economic Information Services, Virginia Employment Commission, 703 East Main St., Room 327, Richmond, VA23218. Telephone: (804) 786-5496. Internet: http://velma.virtuallmi.com  Director, Bureau of Workforce Information, Department of Workforce Develop­ ment, 201 E. Washington Ave., Madison, WI53702. Telephone: (608)266-8212. Internet: http://worknet.wisconsin.gov/worknet  Washington  Wyoming  Director, Labor Market and Economic Analysis, Washington Employment Security Department, P.O. Box 9046, Olympia, WA 98507-9046. Telephone: (360) 438-4804. Internet: http://www.workforceexplorer.com  http://doe.state.wy.us/lmi   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Manager, Research and Planning, Wyoming Department of Employment, P.O. Box 2760, Casper, WY 82602-2760. Telephone: (307) 473-3807.Intemet:  Sources of Education, Training, and Financial Aid Education can open doors for those looking to start a new career or change specialty within their current occupation. This section outlines some major sources of education and training required to enter many occupations, as well as some ways to finance the education or training. For information on the specific training and educational requirements 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 one with the knowledge and background necessary to be successful in many fields. They also can help to place students in cooperative educa­ tion programs—often called “co-ops”—or internships. Co-ops and internships are short-term jobs with firms related to one’s field of study that lead to college credit. In co-ops and intern­ ships, students leam the specifics of a job while making 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 typically are more willing to accommodate part-time students, and their programs are more tailored to the needs of local employers. Many have an open admissions policy, and often these institutions offer weekend and night classes. Many community colleges form partnerships with local businesses that allow students to gain job-specific training. For students 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 often 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 counselor, 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.  Vocational and trade schools. These institutions train people in specific trades. They offer courses designed to provide hands-on experience. Vocational and trade schools tend to concentrate on trades, services, and other types of skilled work.  14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 director of vocational-technical education. A list of State direc­ tors 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 those entering certain oc­ cupations. Apprenticeships are offered by sponsors, who employ and train the apprentice. The apprentice follows a training course under close supervision and receives some formal education to leam the theory related to the job. Apprenticeships are a way for inexperienced people to become skilled workers. Apprenticeships are an agreement between the apprentice and the sponsor and 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 admin­ istered by federally approved State agencies. Information on apprenticeships is available from the Office of Apprenticeship Training, Employer, and Labor Services on the Internet: http://www.doleta.gov/atels_bat. For assistance finding an apprenticeship program, go to:  http://www.doleta.gov/atels_bat/fndprgm.cfm.  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 frequently 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 re­ quired, 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. On-the-job training can range from spending a few minutes watching another employee demonstrate a task to participating in formal training 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.  Sources of Education, Training, and Financial Aid  15  Military. The United States Armed Forces trains and employs  Scholarships. A scholarship is a sum of money donated to a  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.  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 requirements to be considered for a scholarship. Other qualifying require­ ments—such as intended major field of study, heritage, or group membership—may be added by the organization providing the scholarship. Scholarships can be provided by a wide variety of institu­ tions, including educational institutions, State and local gov­ ernments, 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 scholarships 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. Ad­ ditional 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:  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 stu­ dent aid applicants must first fill out a Free Application 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 determine 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 Education 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.  http ://www.collegeboard.com/pay. Student loans. Many institutions, both public and private,  Information on State programs is available from your State’s higher education agency. A list of these agencies is available at:  http://wdcrobcolp01.ed.gov/Programs/EROD. Grants. A grant is money which is given to a student or the in­ stitution they are attending in order to pay for their education or training and any associated expenses. Grants are typically given on the basis of financial need. Grants are considered gifts and are not paid back. Federal grants are almost exclusively for under­ graduate students. They include Pell Grants, which can be worth up to $4,050 annually, and Federal Supplemental Educational Opportunity Grants (FSEOG), which can be worth up to $4,000 annually. Priority 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 from your State Higher Education agency. A list of these agencies is available at:  http://wdcrobcolp01.ed.gov/Programs/EROD. FederalWork-Study program. The Federal Work-Study program is offered at most institutions and consists of Federal sponsor­ ship 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 institution. 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 offered, check with individual institutions. General infor­ mation on the Federal Work-Study program is available at:  http://www.studentaid.ed.gov/students/publications/ Digitized forstudent_guide/2005-2006/english/types-fed-workstudy.htm. FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  provide low-interest loans to students and their parents or guardians. 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. The available Federal loan programs can accommodate prospective undergraduate, graduate, vocational, and disabled students. 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 William D. Ford Federal Direct Loan Program are dispersed by the De­ partment of Education. Third-party loans through a private lender or bank are from the Federal Family Education Loan (FFEL) 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, but they are capped at $4,000 per year for undergraduates and $6,000 per year for graduate students. Subsidized Stafford loans can range in value from $2,625 to $8,500 per year and can increase as a student completes more years of undergraduate, graduate, or professional education. Interest rates remain at a flat 5 percent for all Perkins loans, while rates can fluctuate up to 8.25 percent for subsidized Stafford loans. Those with Perkins loans are not responsible for starting 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.  16  Occupational Outlook Handbook  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 can range in value from $2,625 to $18,500 per year. PLUS loans are capped at the cost of attendance. With 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 continue payments after completion. Check with your lender for available repayment schedules. Typically, students have 10 years to repay Perkins loans and from 10 to 30 years for unsubsidized Stafford loans. Subsidized and unsubsidized Stafford loans are only available 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 institu­ tions to compare the terms of available private student loans.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Comparisons of the various types of loans are available on the Internet: http ://www.studentaid.ed.gov/students/publications/  student_guide/index.html. The College Board has information 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 programs for military personnel. See the Handbook statement on “Job Op­ portunities in the Armed Forces” for more information. Also go to:  http://www.todaysmilitary.com/app/tin/get/collegehelp/support.  I  Finding a Job and Evaluating a Job Offer Finding information on available jobs  Employers. Through your library and Internet research, de­  It often takes months of time and effort to find a job that matches your qualifications and desires. Actively pursuing multiple leads will maximize your search efforts and reduce the time it takes you to find employment. This means devoting as much time as you can to your job search. If you are unemployed, treat your job search like a full-time job, waking up early and working a full day. If you are working or in school, it is still important to devote time every day to your job search. Inform people you know that you are looking for a job. Read the classified ads. Use the Internet, including general job search sites, special interest sites, company Web sites, and trade and professional association Web sites. Directly contact employers in which you are interested, even if they are not advertising a job opening. You may also wish to consult State employment service offices and to consider private employment agencies.  velop a list of potential employers in your desired career field. Employer Web sites often contain lists of job openings. Web sites and business directories can provide you with information on how to apply for a position or whom to contact. Even if no open positions are posted, do not hesitate to contact the employer and the relevant department. Set up an interview with someone working in the same area in which you wish to work. Ask them how they got started, what they like and dislike about the work, what type of qualifications are necessary for the job, and what type of personality succeeds in that position. Even if they don’t have a position available, they may be able to put you in contact with other people who might hire you, and they can keep you in mind if a position opens up. Make sure to send them your resume and a cover letter. If you are able to obtain an interview, be sure to send a thank-you note. Directly contacting employers is one of the most successful means of job hunting.  Where to learn about job openings Personal contacts School career planning and placement offices Employers Classified ads —National and local newspapers —Professional journals —Trade magazines Internet networks and resources State employment service offices Federal Government Professional associations Labor unions Private employment agencies and career consultants Community agencies  Classified ads. The “Help Wanted” ads in newspapers list nu­ merous jobs. You should realize, however, that many other job openings are not listed, and that the classified ads sometimes do not give all of the important information. They may offer little or no description of the job, working conditions, or pay. Some ads do not identify the employer. They may simply give a post office box to which you can mail your resume, making follow-up inquiries very difficult. Some ads offer out-of-town jobs; others advertise employment agencies rather than actual employment opportunities. When using classified ads, keep the following in mind: • •  Job search methods •  Personal contacts. Eighty percent of available jobs are never advertised, and over half of all employees get their jobs through networking, according to BH Careers International. Therefore, the people you know—friends, family, neighbors, acquaintances, teachers, and former coworkers—are some of the most effective resources for your job search. The network of people that you know and the people that they know can lead to information about specific job openings that are not publicly posted. 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. They allow recruiters to use their facilities for interviews or career fairs. Placement offices usually have a list of part-time, temporary, and summer jobs offered on campus. They also may have lists ofjobs for regional, nonprofit, and government organi­ zations. In addition to linking you to potential employers, career planning offices usually provide 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 interviews; and sponsor job fairs.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  • •  Do not rely solely on the classifieds to find a job; follow other leads as well. Answer ads promptly, because openings may be filled quickly, even before the ad stops appearing in the paper. Read the ads every day, particularly the Sunday edition, which usually includes the most listings. Beware of “no experience necessary” ads. These ads often signal low wages, poor working conditions, or commission work. Keep a record of all ads to which you have responded, including the specific skills, educational background, and personal qualifications required for the position.  Internet networks and resources. The Internet is an invaluable resource. Use it to find advice on conducting your job search more effectively; to search for a job; to research prospective employers; and to communicate with people who can help you with your job search. No single Web site will contain all the information available on employment or career opportunities, so in addition to the Web sites listed below, use a search engine to find what you need. The different types of sites that may be useful include general career advice sites, job search sites, com­ pany Web sites, trade and professional association Web sites, and forums. Internet forums, also called message boards, 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 other peoples’ job searches or career experiences.  17  18  Occupational Outlook Handbook  In job databases, remember that job listings may be posted by field or discipline, so begin your search using keywords. Some Web sites provide national or local classified listings and allow job seekers to post their resumes online. When searching employ­ ment databases on the Internet, it usually is possible to send your resume to an employer by e-mail or to post it online. CareerOneStop is a database consisting of three separate career resource tools. It can be accessed on the Internet at: http://www.CareerOneStop.org, or by telephone at: (877) 348-0502. Alternatively, each resource tool can be accessed directly at its own Internet address. America's Job Bank allows you to search through a database of more than 1 million jobs nationwide, create and post your resume online, and set up an automated job search. The database contains a wide range of mostly full-time private sector jobs that are avail­ able all over the country. Job seekers can access America’s Job Bank at: http://www.ajb.org, America’s Career InfoNet provides information on educa­ tional, licensing, and certification requirements for different oc­ cupations by State. It also provides information on wages, cost of living, and employment trends, and helps job seekers identify their skills and write resumes and cover letters. Job seekers can access America’s Career InfoNet at: http://www.acinet.org. America’s Service Locator provides listings of local employ­ ment service offices which help job seekers find jobs and help employers find qualified workers at no cost to either. At the State employment service office, an interviewer will determine if you are “job ready” or if you need help from counseling and testing services to assess your 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 open­ ings that interest you. A staff member can then describe the job openings in detail and arrange for interviews with prospective employers. Job seekers can access America’s Service Locator at: http://www.servicelocator.org. A list of offices is also in the State government telephone listings under “Job Service” or “Employment.” Using Internet Resources to Plan your Future, a U.S. Depart­ ment of Labor publication, offers advice on organizing your Inter­ net job search. It is primarily intended to provide instruction for job seekers on how to use the Internet to their best advantage, but recruiters and other career service industry professionals will find information here to help them also. How to Use the Internet in your Job Search', The Job Search Process', and the Career-Related Pages, other U.S. Department of Labor Internet publications, each discusses specific steps that job seekers can follow to identify employment opportunities. Included are daily tips and hints, plus a large database of links and job search engines. Check with your State employment service office, or order a copy of these and other publications from the U.S. Government Printing Office’s Super­ intendent of Documents. Telephone: (202) 512-1800. Internet: http://bookstore.gpo.gov or http://www.doleta.gov.  State employment service offices. The State employment service, sometimes called the Job Service, operates in coordination with the U.S. Department of Labor’s Employment and Training Administra­ tion. 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 ser­ vices to assess your occupational aptitudes and interests and  to help you choose and prepare for a career. After you are https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  “job ready,” you may examine available job listings and select openings that interest you. A staff member can then describe the job openings in detail and arrange for interviews with prospective employers. Services for special groups. By law, veterans are entitled to priority for job placement at State employment service centers. If you are a veteran, a veterans’ employment representative can inform you of available assistance and help you to deal with problems. State employment service offices refer people to opportuni­ ties available under the Workforce Investment Act (WIA) of 1998. WIA reforms Federal employment, adult education, and vocational rehabilitation programs to create an integrated, “onestop” system of workforce investment and education activities for adults and youths. Services are provided to employers and job seekers, including adults, dislocated workers, and youths. WIA’s primary purpose is to increase the employment, retention, skills, and earnings of participants. These programs help to pre­ pare people to participate in the State’s workforce, increase their employment and earnings potential, improve their educational and occupational skills, and reduce their dependency on welfare, which will improve the quality of the workforce and enhance the productivity and competitiveness of the Nation’s economy.  Federal Government. Information on obtaining a position with the Federal Government is available from the U.S. Office of Personnel Management (OPM) through 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.  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 member; 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, including apprenticeship programs that teach a specific trade or skill. Contact the appropriate labor union or State apprenticeship council for more information.  Private employment agencies and career consultants. These agencies can be helpful, but they may charge you for their services. Most operate on a commission basis, with the fee dependent upon a percentage of the salary paid to a successful applicant. You or the hiring company will pay the fee. Find out the exact cost and who is responsible for paying associated fees before using the service. Although employment agencies can help you save time and contact employers who otherwise might be difficult to locate, the costs may outweigh the benefits if you are responsible for the fee. Contacting employers directly often will generate the same type of leads that a private employment agency will provide. Consider any guarantees that the agency offers when determining if the service is worth the cost. 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.  Finding a Job and Evaluating a Job Offer  Applying for a job Resumes and application forms. Resumes and application forms are two ways to provide employers with written evidence of your qualifications and skills. Generally, the same information appears on both the resume and the application form, but the way in which it is presented differs. Some employers prefer a resume and others require an application form. The accompanying box presents the basic information you should include in your resume. There are many ways of organizing a resume; choose the format that best showcases your skills and experience. It may be helpful to look for examples on the Internet or in books at your local library or bookstore. Typically, an employer has a very limited amount of time to review your resume. It is important to make sure it is clear and concise and highlights your skills and experiences effectively through the use of formatting, ordering, and headings. Many employers scan resumes into databases, which they then search for specific keywords or phrases. The keywords are usually nouns referring to experience, education, personal characteristics, or industry buzz words. Identify keywords by reading the job de­ scription and qualifications; use the same words in your resume that are used in the job ad. 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 keywords 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 traditionally formatted resume along with your scannable resume, with a note on each marking its purpose.  What usually goes into a resume • Name, address, e-mail address, and telephone number. • Employment objective. State the type of work or specific job you are seeking. • Education, including school name and address, dates of attendance, major, and highest grade completed or degree awarded. Consider including any courses or areas of focus that might be relevant to the position. • Experience, paid and volunteer. For each job, include the job title, name and location of employer, and dates of employment. Briefly describe your job duties. • Special skills, computer skills, proficiency in foreign lan­ guages, achievements, and membership in organizations. • References, only when requested. • Keep it short; only one page for less experienced applicants. • Avoid long paragraphs; use bullets to highlight key skills and accomplishments. • Have several people review your resume for any spelling or grammatical errors. • Print it on high quality paper. When you fill out an application form, make sure you fill it out completely and follow all instructions. Do not omit any requested in­ formation and make sure that the information you provide is correct.  Cover letters. A cover letter is sent with a resume or application form, as a way of introducing yourself to prospective employers. 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. Your  cover letter should be original, capture the employer’s attention, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  19  follow a business letter format, and usually should include the following 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 scan­ nable cover letter, which is created similarly to a scannable resume, by avoiding graphics, fancy fonts, italics, and underlines.  Interviewing. An interview gives you the opportunity to show­ case your qualifications to an employer, so it pays to be well prepared. The information in the accompanying box provides some helpful hints.  Job interview tips Preparation: Learn about the organization. Have a specific job or jobs in mind. Review your qualifications for the job. Prepare answers to broad questions about yourself. Review your resume. Practice an interview with a friend or relative. Arrive before the scheduled time of your interview.  Personal appearance: Be well groomed. Dress appropriately. Do not chew gum or smoke.  The interview: Relax and answer each question concisely. Respond promptly. Use good manners. Learn the name of your interviewer and greet him or her with a firm handshake. Use proper English—avoid slang. Be cooperative and enthusiastic. Use body language to show interest. 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 unless a job offer is made. Thank the interviewer when you leave and, as a follow-up, in writing.  Test (if employer gives one): Listen closely to instructions. Read each question carefully. Write legibly and clearly. Budget your time wisely and don’t dwell on one question.  Information to bring to an interview: Social Security card. Government-issued identification (driver’s license). Resume. Although not all employers require applicants to bring a resume, you should be able to furnish the interviewer information about your education, training, and previousemployment. References. Employers typically require three references. Get permission before using anyone as a reference. Make sure that they will give you a good reference. Try to avoid using relatives as references. Transcripts. Employers may require an official copy of tran­ scripts to verify grades, coursework, dates ofattendance, and highest grade completed or degree awarded.  20  Occupational Outlook Handbook  Evaluating a job offer  Does the organization’s business or activity match your own interests and beliefs?  Once you receive a job offer, you are faced with a difficult deci­ sion and must evaluate the offer carefully. Fortunately, most organizations will not expect you to accept or reject an offer immediately. There are many issues to consider when assessing a job offer. Will the organization be a good place to work? Will the job be interesting? Are there opportunities for advancement? Is the sal­ ary fair? Does the employer offer good benefits? If you have not already figured out exactly what you want, the following discussion may help you to develop a set of criteria for judging job offers, whether you are starting a career, reentering the labor force after a long absence, or planning a career change.  It is easier to apply yourself to the work if you are enthusiastic about what the organization does.  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 orga­ nization, 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 status. Most government agencies can furnish reports that describe their programs and missions. Press releases, company newsletters 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 available at your public or school library. If you cannot get an annual report, check the library for reference directories that may provide basic facts about the company, such as earnings, products and services, and number of employees. Some directories widely available in libraries either in print or as online databases include: • Dun & Bradstreet’s Million Dollar Directory • Standard and Poor’s Register of Corporations • Mergent’s Industry Review (formerly Moody’s Industrial Manual) • Thomas Register ofAmerican Manufacturers • Ward's Business Directory 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. 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 organi­ zation 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 November 2005 Monthly Labor Review for the most recent projections, covering the 2004-14 period, on the Internet at: http://www.bls.gov/opub/mlr/inlrhome.htm. 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.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 employers also may have more advanced technologies. However, many jobs in large firms tend to be highly specialized. Jobs in small firms may offer broader authority and 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.  Does it make a difference if the company is private or public? An individual or a family may control a privately owned company and key jobs may be reserved for relatives and friends. A board of directors responsible to the stockholders controls a publicly owned company and key jobs usually are open to anyone.  Is the organization in an industry with favorable long-term prospects? The most successful firms tend to be in industries that are grow­ ing rapidly.  Nature of the job. Even if everything else about the job is at­ tractive, you will be unhappy if you dislike the day-to-day work. Determining 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. Actually working in the industry and, if possible, for the company would provide considerable insight. You can gain work experience through part-time, temporary, or summer jobs, or through internship or work-study programs while in school, all of which can lead to permanent job offers.  Where is the job located? If the job is in another section of the country, you need to consider the cost of living, the availability of housing and transportation, and the quality of educational and recreational facilities in that section of the country. Even if the job loca­ tion is in your area, you should consider the time and expense of commuting.  Does the work match your interests and make good use of your skills? The duties and responsibilities of the job should be explained in enough detail to answer this question.  How important is the job in this company? An explanation of where you fit in the organization and how you are supposed to contribute to its overall objectives should give you an idea of the job’s importance.  Finding a Job and Evaluating a Job Offer  Are you comfortable with the hours? Most jobs involve regular hours—for example, 40 hours a week, during the day, Monday through Friday. Other jobs require night, weekend, or holiday work. In addition, some jobs routinely require overtime to meet deadlines or sales or production goals, or to better serve customers. Consider the effect that the work hours will have on your personal life.  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 compete with applicants from outside the company? Can you apply for jobs for which you qualify elsewhere within the organization, or is mobility within the firm limited?  21  offices about starting pay for graduates with your qualifications. Help-wanted 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 Association of Colleges and Employers or various professional associations. If you are considering the salary and benefits for a job in another geographic area, make allowances for differences in the cost of living, which may be significantly higher in a large metropolitan area than in a smaller city, town, or rural area. You also should learn the organization’s policy regarding over­ time. Depending on the job, you may or may not be exempt from laws requiring the employer to compensate you for overtime. Find out how many hours you will be expected to work each week and whether you receive overtime pay or compensatory time off for working more than the specified number of hours in a week. Also take into account that the starting salary is just that—the start. Your salary should be reviewed on a regular basis; many organizations do it every year. How much can you expect to earn after 1,2, or 3 or more years? An employer cannot be specific about the amount of pay if it includes commissions and bonuses. Benefits also can add a lot to your base pay, but they vary widely. Find out exactly what the benefit package includes and how much of the cost you must bear. National, State, and metropolitan area data from the Bureau’s National Compensation Survey are available from: >- Bureau of Labor Statistics, Office of Compensation Levels and Trends, 2 Massachusetts Ave. NE., Room 4175, Washington, DC 20212-0001. Telephone: (202) 691-6199. Internet: http://www.bls.gov/ncs.  Salaries and benefits. Wait for the employer to introduce these subjects. Some companies will not talk about pay until they have decided to hire you. In order to know if their offer is reason­ able, you need a rough estimate of what the job should pay. You may have to go to several sources for this information. Try to find family, friends, or acquaintances who recently were hired in similar jobs. Ask your teachers and the staff in placement   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Data on earnings by detailed occupation from the Occupational Employment Statistics (OES) Survey are available from: >■ Bureau of Labor Statistics, Office of Occupational Statistics and Employment Projections, 2 Massachusetts Ave, NE., Room 2135, Washington, DC 20212-0001. Telephone: (202) 691-6569. Internet:  http://www.bls.gov/oes.  Occupational Information Included in the Handbook The Occupational Outlook Handbook is best used as a reference; it is not meant to be read from cover to cover. Instead, start by looking at the table of contents, in which related occupations are grouped in clusters, or look in the alphabetical index in the back of the Handbook for specific occupations that interest you. For any occupation that seems interesting, use the Handbook to learn about the type of work that is performed in the occupation, the working conditions, the edu­ cation and training requirements, the possibilities for advancement, earnings in the occupation, the job outlook, and related occupations. Each occupational statement in the Handbook follows a standard format, making it easier for you to compare occupations. Three previous sections—‘Tomorrow’s Jobs,” “Sources of Career Information,” and “Sources of Education, Training, and Financial Aid”—highlight the forces that are likely to determine employment opportunities in industries and occupations through the year 2014 and indicate where to obtain additional information. The current section is an overview of how the occupational statements are developed and organized. It highlights information presented in each section of a Handbook statement, explains the source of the information, gives examples of specific occupations in some cases, and offers some hints on how to interpret the information provided.  Unless otherwise noted, the source of employment and earnings data presented in the Handbook is the Bureau of Labor Statistics. Nearly all Handbook statements cite employ­ ment and earnings data from the Occupational Employment Statistics (OES) survey. Some statements include data from outside sources. OES data may be used to compare earnings among occupations; however, outside data may not be used in this manner, because characteristics of these data vary widely.  About those numbers at the beginning of each statement The numbers in parentheses that appear just below the title of every detailed occupational statement are from the Occupational Information Network (0*NET)—a system used by State employ­ ment service offices to classify applicants and job openings, and by some career information centers and libraries to file occupa­ tional 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 information about differ­ ent aspects of the job, including tasks performed, knowledge, skills, abilities, and work activities. It also lists interests, work styles, such as independence, and work values, such as achieve­ ment, 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 sec­ tion beginning on page 676, 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.  Significant Points This section highlights key occupational characteristics discussed in the statement. Digitized 22 for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work This section discusses what workers do on the job, what tools and equipment they use, and how closely they are supervised. Individual job duties may vary by industry or employer. For instance, workers in larger firms tend to be more specialized, whereas those in smaller firms often have a wider variety of du­ ties. Most occupations have several levels of skills and respon­ sibilities through which workers may progress. Beginners may start as trainees performing routine tasks under close supervision. Experienced workers usually undertake more difficult tasks and are expected to perform with less supervision. Some statements mention common alternative job titles or occupational specialties. For example, the statement on accoun­ tants and auditors discusses a few specialties, such as public ac­ countants, management accountants, and internal auditors. Some statements—such as that on advertising, marketing, promotions, public relations, and sales managers—discuss titles or specialties that are detailed OES survey occupations. For these occupa­ tions, such as sales managers or marketing managers, separate employment projections are developed and their 0*NET codes appear at the beginning of the statement. Information in this section may be updated for several reasons. One is the emergence of occupational specialties. For instance, webmasters—who are responsible for the technical aspects of operating a Web site—constitute a specialty within computer scientists and database administrators. Information also may be updated due to changing technology that affects the way in which a job is performed. For example, the Internet allows purchasers to acquire supplies with a click of the mouse, saving time and money. Furthermore, job duties may be affected by modifica­ tions to business practices, such as organizational restructuring or changes in response to government regulations. An example is paralegals and legal assistants, who are increasingly being utilized by law firms in order to lower costs and increase the efficiency and quality of legal services. Many sources are consulted in researching changes to the nature of the work section or any other section of a Handbook statement. Usual sources include articles in newspapers, maga­ zines, and professional journals. Useful information also appears on the Web sites of professional associations, unions, and trade groups. Information found on the Internet or in periodicals is verified through interviews with individuals employed in the occupation, professional associations, unions, and others with occupational knowledge, such as university professors and counselors in career centers.  Working Conditions This section identifies the typical hours worked, the workplace environment, physical activities and susceptibility to injury, special equipment, and the extent of travel required. In many occupations, people work regular business hours—40 hours a week, Monday through Friday—but many do not. For example, waiters and waitresses often work evenings and weekends. 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  Occupational Information Included in the Handbook 23 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 BLS.  Training, Other Qualifications, and Advancement After knowing what a job is all about, it is important to under­ stand how to prepare for it. This section describes the most significant sources of education and training, including the education or training preferred by employers, the typical length of training, and the possibilities for advancement. Job skills sometimes are acquired through high school, informal on-thejob training, formal training (including apprenticeships), the U.S. Armed Forces, home study, hobbies, or previous work ex­ perience. For example, sales experience is particularly impor­ tant for many sales jobs. Many professional jobs, on the other hand, require formal postsecondary education—postsecondary vocational or technical training, or college, postgraduate, or professional education. In addition to training requirements, the Handbook mentions desirable skills, aptitudes, and personal characteristics. For example, meeting and convention planners must have excellent interpersonal skills, organizational skills, attention to detail, and the ability to work underpressure. For some entry-level jobs, personal characteristics are more important than formal training. Employers generally seek people who read, write, and speak well; compute accurately; think logically; learn quickly; get along with others; and demonstrate dependability. Some occupations require certification or licensing for entry, advancement, or independent practice. Certification or licensing usually requires completing courses and passing examinations. Some occupations have numerous professional credentials granted by different organizations. In this case, the most widely recognized organizations are listed in the Handbook. Many occupations increasingly are requiring workers to participate in continuing education or training in relevant skills, either to keep up with the changes in their occupation or to im­ prove their advancement opportunities. Some statements list the number of training programs. For example, the statement on pharmacists indicates the number of colleges of pharmacy accredited by the American Council on Phar­ maceutical Education. The minimum requirements for Federal Government employment cited in some statements are based on standards set by the U.S. Office of Personnel Management. Revisions to the training section may focus on changes in educational, certification, or licensing requirements, such as an increase in the number of hours of required training or in the number of States requiring a license. Information also is updated if new skills are needed to complete the job, such as those arising from the adoption of new technology. Information in this section comes from personal interviews with individuals employed in the occupation, Web sites, pub­ lished training materials, 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 pro­ vided in 2004, the key industries in which those jobs were found, and the number or proportion of self-employed workers in the occupation, if significant. Self-employed workers accounted for about 8 percent of the workforce in 2004; however, they were concentrated in a small number of occupations, such as farmers   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and ranchers, childcare workers, lawyers, health practitioners, and the construction trades. BLS develops the National Employment Matrix, which presents current and projected employment for 336 detailed industries and 754 detailed occupations over the 2004—14 period. Data in the matrix come primarily from the OES survey, which reports employ­ ment of wage and salary workers for each occupation in almost all industries. The CPS survey provides information on the total number of self-employed and unpaid family workers in each occupation. The CPS also provides employment data on agriculture and private households. The Office of Personnel Management (OPM) furnishes employment data on Federal Government workers. Because total employment in each occupation combines data from several different sources, employment numbers cited in the Handbook often differ from employment data provided by the OES, CPS, and other employment surveys. This may be a source of confusion for some readers. When significant, the geographic distribution of jobs and the proportion of part-time workers (those working less than 35 hours a week) are mentioned, reflecting CPS data. On the basis of OES survey data, some Handbook statements, such as those on textile, apparel, and furnishings occupations, list States that employ substantial numbers of workers in the occupation.  Job Outlook In planning for the future, it is important to consider potential job opportunities. This section describes the factors that will result in employment growth or decline. Projecting occupational em­ ployment is the final step in the employment projections process. (A more detailed description of the projections process is discussed in the Handbook section entitled “Assumptions and Methods Used in Preparing Employment Projections.”) The job outlook section reflects the occupational projections in the National Employment Matrix. Each occupation is assigned a descriptive phrase based on its projected percent change in employment over the 2004-14 period. This phrase describes the occupation’s projected employ­ ment change relative to the projected average employment change for all occupations combined. (These phrases are listed at the end of this section.) Many factors are examined in developing employment projec­ tions and updating the job outlook section. One is job growth or decline in industries that employ a significant percentage of work­ ers in the occupation. If workers are concentrated in an industry that is growing rapidly, their employment will likely also grow rapidly. For example, the growing need for business expertise is fueling demand for consulting services. Hence, management, scientific, and technical consulting services is projected to be among the fastest growing industries through 2014. Projected rapid growth in this industry helps to spur faster than average growth in employment of management analysts. Demographic changes, which affect what services are required, can influence occupational growth or decline. For example, an ag­ ing population demands more health care workers, from registered nurses to pharmacists. Technological change is another key factor. New technology can either create new job opportunities or eliminate jobs by mak­ ing workers obsolete. The Internet has increased the demand for workers in the computer and information technology fields, such as computer support specialists and systems administrators. How­ ever, the Internet also has adversely affected travel agents, because many people now book tickets, hotels, and rental cars online. Another factor affecting job growth or decline is changes in business practices, such as restructuring businesses or outsourcing (contracting out) work. Corporate restructuring has made many  24  Occupational Outlook Handbook  organizations “flatter,” resulting in fewer middle management 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 occupations, 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 affect employment projections. For example, consumption of plastic products has grown as they have been substituted for metal goods in consumer and manufactured products in recent years. The process is likely to continue and should result in stronger demand for machine operators in plastics than in metal. Competition from foreign trade usually has a negative impact on employment in an occupation. 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. In­ creased international competition is a major reason for the decline in employment among textile, apparel, and furnishings workers. In some cases, the Handbook mentions that an occupation is likely to provide numerous job openings or, in others, that an occupation likely will have relatively few openings. This infor­ mation reflects the projected change in employment, as well as replacement needs. Large occupations that have high turnover, such as food and beverage serving occupations, generally provide the most job openings—reflecting the need to replace workers who transfer to other occupations or who stop working. Some Handbook statements discuss the relationship between the number of job seekers and the number of job openings. (The phrases used to describe that relationship appear at the end of this section.) In some occupations, there is a rough balance between job seekers and job openings, resulting in good opportunities. In other occupations, employers may report difficulty finding quali­ fied applicants, resulting in excellent job opportunities. Still other occupations are characterized by a surplus of applicants, leading to keen competition for jobs. On the one hand, because many young people who have the educational and personal qualifications neces­ sary to learn tool and die making may prefer to attend college or may not wish to enter production occupations, employers report an insufficient number of entrants to fill all job openings for tool and die makers and some other production occupations. On the other hand, glamorous or potentially high-paying occupations, such as actors or musicians, generally have surpluses of job seekers. 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 undertak­ ing training for, or seeking entry into, those occupations.  Earnings This section discusses typical earnings and how workers are com­ pensated—by means of annual salaries, hourly wages, commissions, piece rates, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. Almost every statement in the Handbook contains 2004 OESsurvey 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 non-BLS sources. Starting and average salaries of Federal workers are based on 2005 data from the U.S. Office of Personnel Manage­ ment. The National Association of Colleges and Employers supplies information on average salary offers in 2005 for students   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 compensation costs to employers. Benefits such as paid vacation, health insur­ ance, and sick leave may not be mentioned, because they are so widespread. In some occupational statements, the absence of these traditional benefits is pointed out. Although not as common as tradi­ tional benefits, flexible hours and profit-sharing 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.  Related Occupations Occupations involving similar duties, skills, interests, education, and training are listed.  Sources of Additional Information No single publication can describe all aspects of an occupation. Thus, the Handbook lists the mailing addresses of associations, 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 avail­ able in libraries, in school career centers, in guidance offices, 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 In­ formation on Education, Training, and Financial Aid.”  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 2004 and 2014 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 Decline  increase 27 percent or more increase 18 to 26 percent increase 9 to 17 percent increase 0 to 8 percent decrease any amount  Opportunities and competition for jobs If the statement reads: Very good to excellent opportunities Good or favorable opportunities May face, or can expect, keen competition  Job openings compared with job seekers may be: 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 because of the substantial supply of competent, experienced workers seeking managerial jobs.  •  Administrative services managers work throughout private industry and government and have a wide range of responsibilities, experience, earnings, and education.  •  Administrative services managers should be analytical, detail-oriented, flexible, decisive, and have good com­ munication skills.  Nature of the Work Administrative services managers perform a broad range of duties in virtually every sector of the economy. They coordinate and direct support services to organizations as diverse as insurance companies, computer manufacturers, and government offices. These workers manage the many services that allow organizations to operate ef­ ficiently, such as secretarial and reception, administration, payroll, conference planning and travel, information and data processing, mail, materials scheduling and distribution, printing and reproduction, records management, telecommunications management, security, parking, and personal property procurement, supply, and disposal. Specific duties for these managers vary by degree of responsibility 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 improve productivity and customer service, and define the responsibilities of supervisorylevel managers. Some mid-level administrative services managers oversee first-line supervisors from various departments, including the clerical staff. Mid-level managers also may be involved in the hiring and dismissal of employees, but they generally have no role in the formulation of personnel policy. Some of these managers advance to upper level positions, such as vice president of adminis­ trative services, which are discussed in the Handbook statement on top executives. In small organizations, a single administrative services manager may oversee all support services. In larger ones, however, first-line administrative services managers often report to mid-level managers who, in turn, report to owners or top-level managers. As the size of the firm increases, administrative services managers are more likely to specialize in specific support activities. For example, some administrative services managers work primarily as office managers, contract administrators, or unclaimed property officers. In many cases, the duties of these administrative services managers are similar to those of other managers and supervisors, some of which are discussed in other Handbook statements.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 contract administrators oversee the preparation, analysis, negotiation, and review of contracts related to the purchase or sale of equipment, materials, supplies, products, or services. In addition, some admin­ istrative services managers acquire, distribute, and store supplies, while others dispose of surplus property or oversee the disposal of unclaimed property. Administrative services managers who work as facility manag­ ers plan, design, and manage buildings and grounds in addition to people. This task requires integrating the principles of busi­ ness administration, architecture, and behavioral and engineering science. Although the specific tasks assigned to facility managers vary substantially depending on the organization, the duties fall into several categories, relating to operations and maintenance, real estate, project planning and management, communication, finance, quality assessment, facility function, technology integration, and manage­ ment of human and environmental factors. Tasks within these broad categories may include space and workplace planning, budgeting, purchase and sale of real estate, lease management, renovations, or architectural planning and design. Facility managers may suggest and oversee renovation projects for a variety of reasons, ranging from improving efficiency to ensuring that facilities meet government regulations and environmental, health, and security standards. Addi­ tionally, facility managers continually monitor the facility to ensure that it remains safe, secure, and well-maintained. Often, the facility  Administrative services managers supervise a staff that performs various support services. 25  26  Occupational Outlook Handbook  manager is responsible for directing staff, including maintenance, grounds, and custodial workers.  Working Conditions Administrative services managers generally work in comfortable offices. Managers involved in contract administration and personal property procurement, use, and disposal may travel between their home office, branch offices, vendors’ offices, and property sales sites. Also, facility managers who are responsible for the design of workspaces may spend time at construction sites and may travel between different facilities while monitoring the work of mainte­ nance, grounds, and custodial staffs. However, new technology has increased the number of managers who telecommute from home or other offices, and teleconferencing has reduced the need for travel. Most administrative services managers work a standard 40-hour week. However, uncompensated overtime frequently is required to resolve problems and meet deadlines. Facility managers often are “on call” to address a variety of problems that can arise in a facility during nonwork hours.  TYaining, Other Qualifications, and Advancement Educational requirements for these managers vary widely, depending on the size and complexity of the organization. In small organizations, experience may be the only requirement needed to enter a position as office manager. When an opening in administrative services man­ agement occurs, 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 requirements. Some administrative services managers have advanced degrees. Specific requirements vary by job responsibility. For first-line administrative services managers of secretarial, mailroom, and related support activities, many employers prefer an associate de­ gree in business or management, although a high school diploma may suffice when combined with appropriate experience. For managers of audiovisual, graphics, and other technical activities, postsecondary technical school training is preferred. Managers of highly complex services, such as contract administration, generally need at least a bachelor’s degree in business, human resources, or finance. Regardless of major, the curriculum should include courses in office technology, accounting, business mathematics, computer applications, human resources, 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, con­ struction, or interior design, in addition to managerial experience. Whatever the manager’s educational background, it must be accompanied by related work experience reflecting demonstrated ability. For this reason, many administrative services managers have advanced through the ranks of their organization, acquiring work expe­ rience in various administrative positions before assuming first-line su­ pervisory duties. All managers who oversee departmental supervisors should be familiar with office procedures and equipment. Managers of personal property acquisition and disposal need experience in purchas­ ing and sales, and knowledge of a variety of supplies, machinery, and equipment. Managers concerned with supply, inventory, and distribu­ tion should be experienced in receiving, warehousing, packaging, ship­ ping, transportation, and related operations. Contract administrators 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. Persons interested in becoming administrative services manag­ ers should have good communication skills and be able to establish effective working relationships with many different people, ranging  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  from managers, supervisors, and professionals, to clerks and bluecollar workers. They should be analytical, detail-oriented, flexible, and decisive. They must be able to coordinate several activities at once, quickly analyze and resolve specific problems, and cope with deadlines. Most administrative services managers in small organizations advance by moving to other management positions or to a larger organization. Advancement is easier in large firms that employ several levels of administrative services managers. Attainment of the Certified 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 mid-level management posi­ tion, such as director of administrative services, and eventually to a top-level management position, such as executive vice president for administrative services. Those with enough money and experience can establish their own management consulting firm. Advancement of facility managers is based on the practices and size of individual companies. Some facility managers transfer from other departments within the organization or work their way up from technical positions. Others advance through a progression of facility management positions that offer additional responsibilities. Com­ pletion of the competency-based professional certification program offered by the International Facility Management Association can give prospective candidates an advantage. In order to qualify for this Certified Facility Manager (CFM) designation, applicants must meet certain educational and experience requirements. People entering the profession also may obtain the Facility Management Professional (FMP) credential, a stepping stone to the CFM.  Employment Administrative services managers held about 268,000 jobs in 2004. About 80 percent worked in service-providing industries, including Federal, State, and local government; health care; financial services; professional, scientific, and technical services; administra­ tive and support services; and education. Most of the remaining managers worked in wholesale and retail trade, in management of companies and enterprises, or in manufacturing.  Job Outlook Employment of administrative services managers is projected to grow about as fast as the average for all occupations through 2014. Like persons seeking other managerial positions, applicants will face keen competition because there will be more competent, experienced workers seeking jobs than there will be positions available. However, demand should be strong for facility managers because businesses increasingly are realizing the im­ portance of maintaining, securing, and efficiently operating their facilities, which are very large investments for most organizations. Administrative services managers employed in management services and management consulting also should be in demand, as public and private organizations continue to streamline and, in some cases, contract out administrative services functions in an effort to cut costs. At the same time, continuing corporate restructuring and increasing utilization of office technology should result in a flatter organizational structure with fewer levels of management, reducing the need for some middle management positions. This should adversely affect adminis­ trative services managers who oversee first-line mangers. However, the effects of these changes on employment should be less severe for administrative services managers, who have a wide range of respon­ sibilities, than for other middle managers who specialize in certain functions. In addition to new administrative services management jobs created over the 2004-14 projection period, many job openings  Management, Business, and Financial Occupations will stem from the need to replace workers who transfer to other jobs, retire, or leave the occupation for other reasons.  Earnings Earnings of administrative services managers vary greatly depending on the employer, the specialty, and the geographic area. In general, however, median annual earnings of administrative services man­ agers in May 2004 were $60,290. The middle 50 percent earned between $42,680 and $83,510. The lowest 10 percent earned less than $31,120, and the highest 10 percent earned more than $110,270. Median annual earnings in the industries employing the largest numbers of these managers in May 2004 were: Management of companies and enterprises................................. $71,870 Elementary and secondary schools................................................. 65,850 Colleges, universities, and professional schools............................. 61,020 Local government .......................................................................... 59,380 State government ........................................................................... 55,500 In the Federal Government, industrial specialists in nonsupervisory, supervisory, and managerial positions averaged $69,802 a year in 2005. Corresponding averages were $69,211 for facility opera­ tions services managers, $67,185 for industrial property managers, $63,614 for property disposal specialists, $67,855 for administrative officers, and $60,370 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 ad­ ministrative support worker supervisors and managers; cost estimators; property, real estate, and community association managers; purchasing managers, buyers, and purchasing agents; and top executives.  Sources of Additional Information For information about careers and education and degree programs in facility management, as well as the Certified Facility Manager designation, contact: > International Facility Management Association, 1 East Greenway Plaza, Suite 1100, Houston, TX 77046-0194. Internet: http://ww w.ifma.org General information regarding facility management and a list of facility management education and degree programs may be obtained from: ► Association of Higher Education Facilities Officers, 1643 Prince St., Alexandria, VA 22314-2818. Internet: http://www.appa.org For information about the Certified Manager (CM) designation, contact: >- Institute of Certified Professional Managers, James Madison University, MSC 5504, Harrisonburg, VA 22807.  Advertising, Marketing, Promotions, Public Relations, and Sales Managers (0*NET 11-2011.00, 11-2021.00, 11-2022.00, 11-2031.00)  Significant Points •  Keen competition for jobs is expected.  •  College graduates with related experience, a high level of creativity, strong communication skills, and com­ puter skills should have the best job opportunities.  •  High earnings, substantial travel, and long hours, in­ cluding evenings and weekends, are common.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  27  Nature of the Work The objective of any firm is to market and sell its products or services profitably. In small firms, the owner or chief executive officer might assume all advertising, promotions, marketing, sales, and public relations responsibilities. In large firms, which may of­ fer numerous products and services nationally or even worldwide, an executive vice president directs overall advertising, promotions, marketing, sales, and public relations policies. (Executive vice presidents are included in the Handbook statement on top execu­ tives.) Advertising, marketing, promotions, public relations, and sales managers coordinate the market research, marketing strategy, sales, advertising, promotion, pricing, product development, and public relations activities. Advertising managers oversee advertising and promotion staffs, which usually are small, except in the largest firms. In a small firm, managers may serve as liaisons between the firm and the advertising or promotion agency to which many advertis­ ing or promotional functions are contracted out. In larger firms, advertising managers oversee in-house account, creative, and media services departments. The account executive manages the account services department, assesses the need for advertising, and, in ad­ vertising agencies, maintains the accounts of clients. The creative services department develops the subject matter and presentation of advertising. The creative director oversees the copy chief, art director, and associated staff. The media director oversees plan­ ning groups that select the communication media—for example, radio, television, newspapers, magazines, the Internet, or outdoor signs—to disseminate the advertising. Promotions managers supervise staffs of promotion specialists. These managers direct promotion programs that combine adver­ tising with purchase incentives to increase sales. In an effort to establish closer contact with purchasers—dealers, distributors, or consumers—promotion programs may use direct mail, telemarket­ ing, television or radio advertising, catalogs, exhibits, inserts in newspapers, Internet advertisements or Web sites, in-store displays or product endorsements, and special events. Purchasing incentives may include discounts, samples, gifts, rebates, coupons, sweep­ stakes, and contests. Marketing managers develop the firm’s marketing strategy in detail. With the help of subordinates, including product develop­ ment 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. Marketing managers develop pricing strategy to help firms maximize 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 indicate the need for new products and services, and they oversee product development. Marketing managers work with advertising and promotion managers to promote the firm’s products and services and to attract potential users. Public relations managers supervise public relations specialists. (See the Handbook statement on public relations specialists.) These managers direct publicity programs to a targeted audience. They often specialize in a specific area, such as crisis management, or in a specific industry, such as health care. They use every available communication 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 relations managers may clarify or justify the firm’s point of view on health or environmental issues to community or special-interest groups. Public relations managers also evaluate advertising and promo­ tion programs for compatibility with public relations efforts and  28  Occupational Outlook Handbook officials. Job transfers between headquarters and regional offices are common, particularly among sales managers.  Training, Advancement, and Other Qualifications :  ■ 4 : a - a  Advertising, marketing, promotions, public relations, and sales managers have a wide range of educational backgrounds.  serve as the eyes and ears of top management. They observe social, economic, and political trends that might ultimately affect the firm, and they make recommendations to enhance 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 assist company executives in drafting speeches, arranging interviews, 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 direct the firm’s sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. (See the Handbook statement on sales representatives, wholesale and manufacturing.) Sales managers advise the sales representatives on ways to improve their sales performance. In large, multiproduct firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and to monitor customers’ preferences. Such informa­ tion is vital in the development of products and the maximization of profits.  Working Conditions Advertising, marketing, promotions, public relations, and sales managers work in offices close to those of top managers. Long hours, including evenings and weekends, are common. In 2004, about two-thirds of advertising, marketing, and public relations managers worked more than 40 hours a week. Working under pres­ sure is unavoidable when schedules change and problems arise, but deadlines and goals must still be met. Substantial travel may be involved. For example, attendance at meetings sponsored by associations or industries often is mandatory. Sales managers travel to national, regional, and local offices and to the offices of various dealers and distributors. Adver­ tising and promotions managers may travel to meet with clients or representatives of communications media. At times, public relations managers travel to meet with special-interest groups or government   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 plus a broad liberal arts background. A bachelor’s degree in sociology, psychology, literature, journalism, or philosophy, among other subjects, is acceptable. However, requirements vary, depending upon the particular job. For marketing, sales, and promotions management positions, some employers prefer a bachelor’s or master’s degree in business administration with an emphasis on marketing. Courses in business law, economics, accounting, finance, mathematics, and statistics are advantageous. In highly technical industries, such as computer and electronics manufacturing, a bachelor’s degree in engineering or science, combined with a master’s degree in business administra­ tion, is preferred. For advertising management positions, some employers prefer a bachelor’s degree in advertising or journalism. A course of study should include marketing, consumer behavior, market research, sales, communication methods and technology, and visual arts—for example, art history and photography. For public relations management positions, some employers 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. For all these specialties, courses in management and the comple­ tion of an internship while the candidate is in school are highly recommended. Familiarity with word-processing and database ap­ plications also is important for many positions. Computer 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 employment opportunities in many rapidly growing areas around the country, especially cities with large Spanish-speaking populations. Most advertising, marketing, promotions, public relations, and sales management positions are filled by promoting experienced staff or related professional personnel. For example, many manag­ ers are former sales representatives, purchasing agents, buyers, or product, advertising, promotions, or public relations specialists. In small firms, where the number of positions is limited, advancement to a management position usually comes slowly. In large firms, promotion may occur more quickly. Although experience, ability, and leadership are emphasized for promotion, advancement can be accelerated by participation in management training programs conducted by larger firms. Many firms also provide their employees with continuing education op­ portunities—either in-house or at local colleges and universities— and encourage employee participation in seminars and conferences, often held by professional societies. In collaboration with colleges and universities, numerous marketing and related associations sponsor national or local management training programs. Course subjects include brand and product management, international marketing, sales management evaluation, telemarketing and direct sales, interactive marketing, promotion, marketing com­ munication, 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. Some associations offer certification programs for these managers. Certification—an indication of competence and  Management, Business, and Financial Occupations achievement—is particularly important in a competitive job market. While relatively few advertising, marketing, promo­ tions, public relations, and sales managers currently are certified, the number of managers who seek certification is expected to grow. Today, there are numerous management certification programs based on education and job performance. In addition, The Public Relations Society of America offers a certification program for public relations practitioners based on years of experience and performance on an examination. Persons interested in becoming advertising, marketing, promo­ tions, public relations, and sales managers should be mature, creative, highly motivated, resistant to stress, flexible, and decisive. 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 ability to establish and maintain effective personal relationships with supervisory and professional staff members and client firms. 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 high­ est ranks. Well-trained, experienced, and successful managers may be promoted to higher positions in their own or another firm; some become top executives. Managers with extensive experience and sufficient capital may open their own businesses.  Employment Advertising, marketing, promotions, public relations, and sales managers held about 646,000jobs in 2004. The following tabulation shows the distribution of jobs by occupational specialty: Sales managers......................................................................................... 337,000 Marketing managers................................................................................ 188,000 Advertising and promotions managers.............................................. 64,000 Public relations managers..................................................................... 58,000  These managers were found in virtually every industry. Sales managers held almost half of the jobs; most were employed in wholesale and retail trade, and finance and insurance industries. Marketing managers held more than fourth of the jobs; the professional, scientific, and technical services industries employed almost one-third of marketing managers. About onefourth of advertising and promotions managers worked in the professional, scientific, and technical services industries, and the, information industries, including advertising and related services, and publishing industries. Most public relations managers were employed in service-providing industries, such as professional, scientific, and technical services, finance and insurance, health care and social assistance, and educational services.  Job Outlook 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 communication skills should have the best job opportunities. In particular, employers will seek those who have the computer skills to conduct advertising, marketing, promotions, public relations, and sales activities on the Internet. Employment of advertising, marketing, promotions, public relations, and sales managers is expected to increase faster than the average for all occupations through 2014, spurred by intense domestic and global competition in products and services of­ fered to consumers. However, projected employment growth  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  29  varies by industry. For example, employment is projected to grow much faster than average in scientific, professional, and related services, such as computer systems design and related services, and in advertising and related services, as businesses increasingly hire contractors for these services instead of ad­ ditional full-time staff. By contrast, a decline in employment is expected in many manufacturing industries.  Earnings Median annual earnings in May 2004 were $63,610 for advertising and promotions managers, $87,640 for marketing managers, $84,220 sales managers, and $70,000 for public relations managers. Median annual earnings of advertising and promotions managers in May 2004 in the advertising and related services industry were $89,570. Median annual earnings in the industries employing the largest numbers of marketing managers in May 2004 were as follows: Computer systems design and related services............................. $107,030 Management of companies and enterprises.................................... 98,700 Insurance carriers.................................................................................. 86,810 Architectural, engineering, and related services........................... 83,610 Depository credit intermediation...................................................... 76,450  Median annual earnings in the industries employing the largest numbers of sales managers in May 2004 were as follows: Computer systems design and related services.............................. $119,140 Wholesale electronic markets and agents and brokers................ 101,930 Automobile dealers.............................................................................. 97,460 Management of companies and enterprises...................................... 95,410 Machinery, equipment, and supplies merchant wholesalers........ 84,680  According to a National Association of Colleges and Employers survey, starting salaries for marketing majors graduating in 2005 averaged $33,873; starting salaries for advertising majors averaged $31,340. 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 usu­ ally pay these managers higher salaries than do nonmanufacturing 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.  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, marketing, promotions, public relations, and sales include actors, producers, and directors; advertising sales agents; artists and related workers; demonstrators, product promoters, and models; market and survey researchers; public relations specialists; sales representatives, whole­ sale and manufacturing; and writers and editors.  Sources of Additional Information For information about careers in advertising management, con­ tact: >- 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  30  Occupational Outlook Handbook  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 2014.  •  Many managers possess advanced technical knowledge gained from working in a computer occupation.  •  Job opportunities will be best for applicants with computer-related work experience; a master’s degree in business administration (MBA) with technology as a core component, or a management information systems degree; and strong communication and administrative skills.  Nature of the Work How and when companies and organizations use technology are critical to remaining competitive. Computer and information systems managers play a vital role in the technological direction of their organizations. They do everything from constructing the business plan to overseeing network security to directing Internet operations. Computer and information systems managers plan, coordinate, and direct research and 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. For example, working with their staff, they may develop the overall concepts and re­ quirements of a new product or service, or may identify how an organization’s computing capabilities can effectively aid project management. Computer and information systems managers direct the work of systems analysts, computer programmers, support specialists, and other computer-related workers. These managers plan and coordinate activities such as installation and upgrading of hardware and software, programming and systems design, development of computer networks, and implementation of Internet and intranet sites. They are increasingly involved with the upkeep, maintenance, and security of networks. They analyze the computer and informa­ tion needs of their organizations from an operational and strategic perspective and determine immediate and long-range personnel and equipment requirements. They assign and review the work of their subordinates and stay abreast of the latest technology to ensure the organization does not lag behind competitors. The duties of computer and information systems managers vary with their specific titles. Chief technology officers, for example, evaluate the newest and most innovative technologies and determine how these can help their organizations. The chief technology offi­ cer, who often reports to the organization’s chief information officer, manages and plans technical standards and tends to the daily infor­ mation technology issues of the firm. (Chief information officers are covered in a separateHandbook statement on top executives.) Because of the rapid pace of technological change, chief technology officers must constantly be on the lookout for developments that could benefit their organizations. They are responsible for demon­ strating to a company how information technology can be used as a competitive tool that not only cuts costs, but also increases revenue andfor maintains Digitized FRASERor increases competitive advantage. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  7 ■» ■■ y  I  'toaa-J  Computer and information systems managers plan, coordinate, and direct the computing resources offirms.  Management information systems (MIS) directors manage information systems and computing resources for their organiza­ tions. They also may work under the chief information officer and plan and direct the work of subordinate information technology employees. These managers oversee a variety of user services such as an organization’s help desk, which employees can call with questions or problems. MIS directors also may make hardware and software upgrade recommendations based on their experience with an organization’s technology. Helping ensure the availability, continuity, and security of data and information technology services is the primary responsibility of these workers. Project managers develop requirements, budgets, and schedules for their firms’ information technology projects. They coordinate such projects from development through implementation, working with internal and external clients, vendors, consultants, and computer specialists. These managers are increasingly involved in projects that upgrade the information security of an organization. LAN/WAN (local area network/wide area network) managers provide a variety of services, from design to administration of the lo­ cal area network, which connects staff within an organization. These managers direct the network and its computing environment, includ­ ing hardware, systems software, applications software, and all other computer-related configurations. Computer and information systems managers need strong com­ munication skills. They coordinate the activities of their unit with those of other units or organizations. They confer with top execu­ tives; financial, production, marketing, and other managers; and contractors and equipment and materials suppliers. Working Conditions Computer and information systems managers spend most of their time in an office. Most work at least 40 hours a week and may have to work evenings and weekends to meet deadlines or solve unex­ pected problems. Some computer and information systems manag­ ers may experience considerable pressure in meeting technical goals within short timeframes or tight budgets. As networks continue to expand and more work is done remotely, computer and information systems managers have to communicate with and oversee offsite employees using modems, laptops, e-mail, and the Internet. Like other workers who sit continuously in front of a keyboard, computer and information systems managers are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.  Management, Business, and Financial Occupations  31  Training, Other Qualifications, and Advancement  Job Outlook  Advanced technical knowledge is essential for computer and in­ formation 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 customers. Therefore, many computer and information systems managers have experience in a computer occupation such as systems analyst; other managers may have worked as a computer support specialist, programmer, or other information technology professional. A bachelor’s degree usually is required for management posi­ tions, although employers often prefer a graduate degree, espe­ cially 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 specialize in offering degrees in management information systems, which blend techni­ cal core subjects with business, accounting, and communications courses. A few computer and information systems managers attain their positions with only an associate degree, but they must have sufficient experience and must have acquired additional skills on the job. To aid their professional advancement, though, many managers with an associate degree eventually earn a bachelor’s or master’s degree while working. Computer and information systems managers need a broad range of skills. Employers want 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 im­ portance of business insight; many computer and information systems managers are called on to make important business decisions. Managers need a keen understanding of people, man­ agement processes, and customers’ needs. Computer and information systems managers must possess strong interpersonal, communication, and leadership skills because they are required to interact not only with their staff, but also with other people inside and outside their organizations. They also must possess team skills to work on group projects and other collaborative efforts. Computer and information systems manag­ ers increasingly interact with persons outside their organizations, reflecting their emerging role as vital parts of their firms’ executive teams. Computer and information systems managers may advance to progressively higher leadership positions in their field. Some may become managers in nontechnical areas such as marketing, human resources, or sales. In high-technology firms, managers in nontech­ nical areas often must possess the same specialized knowledge as do managers in technical areas.  Employment of computer and information systems managers is expected to grow faster than the average for all occupations through the year 2014. Technological advancements will boost the employment of computer-related workers; as a result, the demand for managers to direct these workers also will increase. In addition, job openings will result from the need to replace managers who retire or move into other occupations. Opportunities for obtaining a management position will be best for those with computer-related work experience; an MBA with technology as a core component, or a management information systems degree; and strong com­ munication and administrative skills. Despite the downturn in the technology sector in the early part of the decade, the outlook for computer and information systems man­ agers remains strong. To remain competitive, firms will continue to install sophisticated computer networks and set up more complex Internet and intranet sites. Keeping a computer network running smoothly is essential to almost every organization. Firms will be more willing to hire managers who can accomplish that. Similarly, the security of computer networks will continue to increase in importance as more business is conducted over the Internet. The security of the Nation’s entire electronic infrastructure has come under renewed scrutiny in light of recent threats. Organi­ zations need to understand how their systems are vulnerable and how to protect their infrastructure and Internet sites from hackers, vimses, and other acts of cyberterrorism. The emergence of cybersecurity as a key issue facing most organizations should lead to strong growth for computer managers. Firms will increasingly hire cybersecurity experts to fill key leadership roles in their information technology departments because the integrity of their computing environments is of utmost concern. As a result, there will be a high demand for managers proficient in computer security issues. With the explosive growth of electronic commerce and the capac­ ity of the Internet to create new relationships with customers, the role of computer and information systems managers will continue to evolve. Persons in these jobs will become increasingly vital to their companies. The expansion of the wireless Internet will spur the need for computer and information systems managers with both business savvy and technical proficiency. 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 programmers, com­ puter software engineers, computer support specialists and systems administrators, computer systems analysts, and computer scientists and database administrators elsewhere in the Handbook.)  Employment Computer and information systems managers held about 280,000 jobs in 2004. About 9 in 10 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 inte­ gration design services; computer facilities management services, including computer systems or data-processing facilities support services; and other computer-related services, such as disaster recovery services and software installation. Other large employ­ ers include insurance and financial firms, government agencies, and manufacturers.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Earnings Earnings for computer and information systems managers vary by specialty and level of responsibility. Median annual earnings of these managers in May 2004 were $92,570. The middle 50 percent earned between $71,650 and $118,330. Median annual earnings in the industries employing the largest numbers of computer and information systems managers in May 2004 were as follows: Software publishers..................................................................... $107,870 Computer systems design and related services.......................... 103,850 Management of companies and enterprises............................... 99,880 Insurance carriers........................................................................ 97,900 Depository credit intermediation............................................... 86,450 According to Robert Half International, a professional staff­ ing and consulting services firm, average starting salaries in 2005 for high-level information technology managers ranged from  32  Occupational Outlook Handbook  $80,250 to $112,250. According to a 2005 survey by the National Association of Colleges and Employers, starting salary offers for those with an MBA, a technical undergraduate degree, and 1 year or less of experience averaged $52,300; for those with a master’s degree in management information systems/business data process­ ing, the starting salary averaged $56,909. In addition, computer and information systems managers, especially those at higher levels, often receive more employ­ ment-related benefits—such as expense accounts, stock option plans, and bonuses—than do nonmanagerial workers in their organizations.  Related Occupations The work of computer and information systems managers is closely related to that of computer programmers, computer software en­ gineers, computer systems analysts, computer scientists and data­ base administrators, and computer support specialists 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 the sources of additional information for the various computer occupations discussed elsewhere in the Handbook.  Construction Managers (0*NET 11-9021.00)  Significant Points •  Construction managers must be available—often 24 hours a day—to deal with delays, bad weather, or emergencies at the jobsite.  •  Employers prefer individuals who combine construc­ tion industry work experience with a bachelor’s degree in construction science, construction management, or civil engineering.  •  Excellent employment opportunities are expected as the increasing complexity of many construction proj­ ects requires more managers to oversee them.  Construction managers coordinate and supervise the construc­ tion 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, architects, 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 the project to execute those designs. Large construction projects, such as an office building or industrial complex, are often too complicated for one person to manage. Therefore, these projects are divided into many segments: Site preparation, including land clearing and earth moving; sewage systems; landscaping and road construction; building construction, 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-conditioning, and heating. Construction managers may be in charge of one or more of these activities. Construction managers evaluate and help determine appropri­ ate construction delivery systems and the most cost-effective plan and schedule for completing the project. They divide all required construction site activities into logical steps, budgeting the time re­ quired 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 elsewhere in the Handbook.) Construction managers 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 manag­ ers 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 responsible for ensuring that all work is completed on schedule. Construction managers direct and monitor the progress of con­ struction activities, sometimes through construction supervisors or other construction managers. They oversee the delivery and use of materials, tools, and equipment; and the quality of construction, worker productivity, and safety. They are responsible for obtaining all necessary permits and licenses and, depending upon the contrac­ tual arrangements, direct or monitor compliance with building and safety codes and other regulations. And they continually track and control construction costs to avoid cost overruns. They may direct  Nature of the Work Construction managers plan, direct, and coordinate a wide variety of construction projects, including the building of all types of resi­ dential, commercial, and industrial structures, roads, bridges, waste­ water treatment plants, and schools and hospitals. Construction managers may oversee an entire project or just part of a project and, although they usually play no direct role in the actual construction of a structure, they typically schedule and coordinate all design and construction processes, including the selection, hiring, and oversight of specialty trade contractors. Construction managers are salaried or self-employed managers who oversee construction supervisors and workers. They often go by the job titles program manager, constructor, constmction superintendent, project engineer, project manager, construction su­ pervisor, general contractor, or similar designations. 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 Digitized foroverseeing FRASER the construction project. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Construction managers diagnose construction-related problems and determine the most cost-effective method to solve them.  Management, Business, and Financial Occupations the work of several subordinates, such as assistant managers or superintendents, field engineers, or crew supervisors.  Working Conditions Construction managers work out of a main office from which the overall construction project is monitored, or out of a field office at the construction site. Advances in telecommunications and Internet access allow construction managers to be onsite without being out of contact of the main office. Management decisions regarding daily construction activities generally are made at the jobsite. Managers 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. Construction managers may be “on call”—often 24 hours a day—to deal with delays, the effects of bad weather, or emergencies at the site. Most work more than a standard 40-hour week because construction may proceed around-the-clock. They may have to work this type of schedule for days, even weeks, to meet special project deadlines, especially if there are delays. Although the work usually is not considered inherently danger­ ous, construction managers must be careful while performing onsite services.  Training, Other Qualifications, and Advancement Persons interested in becoming a construction manager need a solid background in building science, business and management, as well as related work experience within the construction industry. They need to understand contracts, plans, and specifications, and to be knowledgeable about construction methods, materials, and regulations. Familiarity with computers and software programs for job costing, online collaboration, scheduling, and estimating also is important. The ability to converse fluently in Spanish is also an asset because Spanish is the first language of many workers in the construction industry. Construction managers should be flexible and work effectively in a fast-paccd 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 understanding of engineering, architectural, and other construction drawings. Good oral and written communication skills also are im­ portant, 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 craftworkers. For construction manager jobs, employers increasingly prefer to hire individuals with a bachelor’s degree in construction science, construction management, or civil engineering, as well as industry work experience. Practical industry experience is very important, whether it is acquired through an internship, a cooperative educa­ tion program, or work experience in a trade or another job in the industry. Traditionally, persons advanced to construction manage­ ment positions after having substantial experience as construction craftworkers—carpenters, masons, plumbers, or electricians, for example—or after having worked as construction supervisors or as owners of independent specialty contracting firms, overseeing work­ ers in one or more construction trades. However, as construction processes become increasingly complex, employers are placing a growing importance on postsecondary education. Many colleges and universities offer 4-year degree programs in construction management, construction science, and construction engineering. These programs include courses in project control and development, site planning, design, construction methods, construction  materials, value analysis, cost estimating, scheduling, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  33  contract administration, accounting, business and financial manage­ ment, 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 managers, field engineers, schedulers, or cost estimators. An increasing number of graduates in related fields—engineering or architecture, for example—also enter construction management, often after acquiring substantial experience on construction projects or after completing graduate studies in construction management or building science. Several colleges and universities offer a master’s degree program in construction management or construction science. Master’s degree recipients, especially those with work experience in construction, typically become construction managers in very large construction or construction management companies. Often, individuals who hold a bachelor’s degree in an unrelated field seek a master’s degree in construction management or construction science in order to work in the construction industry. Some construction managers obtain a master’s degree in business administration or finance to further their career prospects. Doctoral degree recipients usually become college professors or conduct research. Many individuals also attend training and educational programs sponsored by industry associations, often in collaboration with postsecondary institutions. A number of 2-year colleges throughout the country offer construction management or construction technol­ ogy programs. There is a growing movement towards certification of construc­ tion managers to ensure that a construction manager has a certain body of knowledge, abilities, and experience. Although certification is not required to work in the construction industry, voluntary certi­ fication can be valuable because it provides evidence of competence and experience. Both the American Institute of Constructors (AIC) and the Construction Management Association of America (CMAA) have established voluntary certification programs for construction managers. Requirements combine written examinations with veri­ fication of education and professional experience. AIC awards the Associate Constructor (AC) and Certified Professional Constructor (CPC) designations to candidates who meet its requirements and pass the appropriate construction examinations. CMAA awards the Certified Construction Manager (CCM) designation to prac­ titioners who meet its requirements through work performed in a construction management organization and by passing a technical examination. Applicants for the CMAA certification also must com­ plete a self-study course that covers a broad range of topics central to construction management, including the professional role of a construction manager, legal issues, and allocation of risk. Advancement opportunities for construction managers vary de­ pending upon an individual’s performance and the size and type of company for which they work. Within large firms, managers may eventually become top-level managers or executives. Highly experi­ enced individuals may become independent consultants; some serve as expert witnesses in court or as arbitrators in disputes. Those with the required capital may establish their own construction manage­ ment services, specialty contracting, or general contracting firm.  Employment Construction managers held 431,000 jobs in 2004. Over half were self-employed, many as owners of general or specialty trade con­ struction firms. Most of the rest were employed in the construction industry, 13 percent by specialty trade contractors—for example, plumbing, heating and air-conditioning and electrical contrac­ tors—and 18 percent by general building contractors. Others were employed by architectural, engineering, and related services firms and by local governments.  34  Occupational Outlook Handbook  Job Outlook Excellent employment opportunities for construction managers are expected through 2014 because the number of job openings will exceed the number of qualified individuals seeking to enter the occupation. This situation is expected to continue even as college construction management programs expand to meet the current high demand for graduates. The construction industry often does not attract sufficient numbers of qualified job seekers because it is often seen as having poor working conditions. Employment of construction managers is projected to increase about as fast as the average for all occupations through 2014. 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 who retire or leave the labor force for other reasons. More construction man­ agers will be needed as the level of construction activity continues to grow. In addition, opportunities will increase for construction managers to start their own firms. However, employment of construction managers can be sensitive to the short-term nature of many projects and to cyclical fluctuations in construction activity. The increasing complexity of construction projects is boosting the demand for management-level personnel with­ in the construction industry. Sophisticated technology and the proliferation of laws setting standards for buildings and construction materials, worker safety, energy efficiency, and environmental protection have further complicated the construction process. Advances in building materials and construction methods; the need to replace portions the Nation’s infrastructure; and the growing number of multipurpose buildings and energy-efficient structures will further add to the demand for more construction managers. More opportunities for construction managers also will result from the need for greater cost control and financial manage­ ment of projects and to oversee the numerous subcontractors being employed. Prospects for individuals seeking construction manager jobs in construction management, architectural and engineering services, and construction contracting firms should be best for persons who have a bachelor’s or higher degree in construction science, con­ struction management, or civil engineering—but also practical experience working in construction. Employers will increasingly prefer applicants with college degrees, previous construction work experience, including internships, and a strong background in build­ ing technology.  Earnings Earnings of salaried construction managers and self-employed independent construction contractors vary depending upon the size and nature of the construction project, its geographic location, and economic conditions. In addition to typical benefits, many salaried construction managers receive benefits such as bonuses and use of company motor vehicles. Median annual earnings of construction managers in May 2004 were $69,870. The middle 50 percent earned between $53,430 and $92,350. The lowest paid 10 percent earned less than $42,120, and the highest paid 10 percent earned more than $126,330. Median annual earnings in the industries employing the largest numbers of construction managers in 2004 were as follows: Building equipment contractors.................................................... $72,560 Nonresidential building construction............................................ 71,700 Other specialty trade contractors................................................. 68,110 Residential building construction................................................. 67,190 Foundation, structure, and building exterior contractors............. 64,250  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  According to a July 2005 salary survey by the National Association of Colleges and Employers, candidates with a bache­ lor’s degree in construction science/management received job offers averaging $42,923 a year.  Related Occupations Construction managers participate in the conceptual development of a construction project and oversee its organization, scheduling, and implementation. Other workers who perform similar functions include architects, except landscape and naval; civil engineers; cost estimators; landscape architects; and engineering and natural sci­ ences managers.  Sources of Information For information about constructor certification, contact: >- American Institute of Constructors, 717 Princess St., Alexandria, VA 22314. Internet: http://www.constructorcertification.org or http://www.aicnet.org For information about construction management and construction manager certification, contact: ► Construction Management Association of America, 7918 Jones Branch Dr., Suite 540, McLean, VA 22102-3307. Internet: http://www.cmaanet.org Information on accredited construction science and management educational programs and accreditation requirements is available from: ► American Council for Construction Education, 1717 North Loop 1604 E, Ste 320, San Antonio, TX 78232 Internet: http://www.acce-hq.org ► 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 a teacher or admissions counselor.  •  Strong interpersonal and communication skills are es­ sential because much of an administrator’s job involves working and collaborating with others.  •  Excellent opportunities are expected since a large pro­ portion of education administrators is expected to retire over the next 10 years.  Nature of the Work Smooth operation of an educational institution requires competent administrators. Education administrators provide instructional leadership as well as manage the day-to-day activities in schools, preschools, daycare centers, and colleges and universities. They also direct the educational programs of businesses, correctional institutions, museums, and job training and community service organizations. (College presidents and school superintendents are covered in the Handbook statement on general managers and top executives.) Education administrators set educational standards and goals and establish the policies and procedures to carry them out. They also supervise managers, support staff, teachers, counselors, librar­ ians, coaches, and others. They develop academic programs; monitor students’ educational progress; train and motivate teachers and other staff; manage career counseling and other student services; adminis­ ter recordkeeping; prepare budgets; handle relations with parents,  Management, Business, and Financial Occupations prospective and current students, employers, and the community; and perform many other duties. In an organization such as a small daycare center, one administrator may handle all these functions. In universities or large school systems, responsibilities are divided among many administrators, each with a specific function. Educational administrators who manage elementary, middle, and secondary schools are called principals. They set the academic tone and hire, evaluate, and help improve the skills of teachers and other staff. Principals confer with staff to advise, explain, or answer procedural questions. They visit classrooms, observe teaching methods, review instructional objectives, and examine learning materials. They actively work with teachers to develop and main­ tain high curriculum standards, develop mission statements, and set performance goals and objectives. Principals must use clear, objec­ tive 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 organizations. 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 mak­ ing administrative decisions they must pay attention to the concerns of parents, teachers, and other members of the community. Principals prepare budgets and reports on various subjects, includ­ ing finances and attendance, and oversee the requisition and alloca­ tion of supplies. As school budgets become tighter, many principals have become more involved in public relations and fundraising to secure financial support for their schools from local businesses and the community. Principals must take an active role to ensure that students meet national, State, and local academic standards. Many principals develop school/business partnerships and school-to-work transition programs for students. Increasingly, principals must be sensitive to the needs of the rising number of non-English speaking and cultur­ ally diverse students. In some areas growing enrollments also are a cause for concern because they are leading to overcrowding at many schools. When addressing problems 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, participating in workshops for teachers and administrators, supervising building repairs and improvements, and working to be sure the school has adequate staff for the school year. Schools continue to be involved with students’ emotional wel­ fare as well as their academic achievement. As a result, principals face responsibilities outside the academic realm. For example, in response to the growing numbers of dual-income and single-parent families and teenage parents, schools have established before- and after-school childcare programs or family resource centers, which also may offer parenting classes and social service referrals. With the help of community organizations, some principals have established programs to combat increases in crime, drug and alcohol abuse, and sexually transmitted diseases among students. Assistant principals aid the principal in the overall administra­ tion of the school. Some assistant principals hold this position for several years to prepare for advancement to principal jobs; others are career assistant principals. They are primarily responsible for scheduling student classes, ordering textbooks and supplies, and coordinating transportation, custodial, cafeteria, and other support services. They usually handle student discipline and attendance problems, social and recreational programs, and health and safety matters. They also may counsel students on personal, educational, or vocational matters. With the advent of site-based management, assistant principals are playing a greater role in ensuring the academic   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  35  success of students by helping to develop new curriculums, evaluating teachers, and dealing with school-community relations—respon­ sibilities previously assumed solely by the principal. The number of assistant 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 elsewhere in the Handbook.) Administrators also may oversee career counseling programs and testing that measures students’ abilities and helps to place them in appropriate classes. Others may also direct programs such as school psychology, athletics, curriculum and instruction, and professional development. With site-based management, administrators have transferred primary responsibility for many of these programs to the principals, assistant principals, teachers, instructional coordinators, and other staff in the schools. In preschools and childcare centers, education administrators are the director or supervisor of the school or center. 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 required regulations. In colleges and universities, provosts also known as chiefacademic 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 offacul­ ty, they also direct and coordinate the activities of deans of individual colleges and chairpersons of academic 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 assign­ ments; propose budgets; recruit, interview, and hire applicants for teaching positions; evaluate faculty members; encourage faculty development; serve on committees; and perform other administrative duties. In overseeing their departments, chairpersons must consider and balance the concerns of faculty, administrators, and students.  mm PsS  Education administrators manage the day-to-day operations of schools.  36  Occupational Outlook Handbook  Higher education administrators also direct and coordinate the provision of student services. Vice presidents ofstudent affairs 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, financial aid, and housing and residential life, as well as social, recreational, 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, record grades, prepare student transcripts, evaluate academic records, assess and collect tuition and fees, plan and implement commencement, oversee the prepa­ ration of college catalogs and schedules of classes, and analyze enrollment and demographic statistics. Directors of admissions manage the process of recruiting, evaluating, and admitting stu­ dents, and work closely with financial aid directors, who oversee scholarship, fellowship, and loan programs. Registrars and admis­ sions officers at most institutions need computer skills because they use electronic student information systems. For example, for those whose institutions present college catalogs, schedules, and other information on the Internet, knowledge of online resources, imaging, and other computer skills is important. Athletic directors plan and direct intramural and intercollegiate athletic activities, seeing to publicity for athletic events, preparation of budgets, and supervision of coaches. Other increasingly important administra­ tors direct public relations, distance learning, and technology.  Working Conditions Education administrators hold leadership positions with significant responsibility. Most find working with students extremely reward­ ing, but as the responsibilities of administrators have increased in recent years, so has the stress. Coordinating and interacting with faculty, parents, students, community members, business leaders, and State and local policymakers can be fast-paced and stimulat­ ing, 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 recently imposed State and Federal guidelines for student performance and teacher qualifications. Many education administrators work more than 40 hours a week, often including school activities at night and on weekends. Most administrators work 11 or 12 months out of the year. Some jobs include travel.  Training, Other Qualifications, and Advancement Most education administrators begin their careers in related occupa­ tions, often as teachers, and prepare for advancement into education admi nistration by completing a master’s or doctoral degree. Because of the diversity of duties and levels of responsibility, their educational backgrounds and experience vary considerably. Principals, assistant principals, central office administrators, academic deans, and pre­ school directors usually have held teaching positions before moving into administration. Some teachers move directly into principal 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, administrators move up from related staffjobs such as recruiter, school counselor, librarian, residence hall director, or financial aid or admissions counselor. To be considered for education administrator positions, workers must first prove themselves in their current jobs. In evaluating can­ didates, supervisors look for leadership, determination, confidence, innovativeness, and motivation. The ability to make sound decisions   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  and to organize and coordinate work efficiently is essential. Because much of an administrator’s job involves interacting with others—such as students, parents, teachers, and the community— a person in such a position must have strong interpersonal skills and be an effective communicator and motivator. Knowledge of leadership principles and practices, gained through work experience and formal education, is important. A familiarity with computer technology is a necessity for principals, who are required to gather information and coordinate technical resources for their students, teachers, and classrooms. In most public schools, principals, assistant principals, and school district administrators need a master’s degree in education administration or educational leadership. Some principals and central office administrators have a doctorate or specialized degree in education administration. Most States require principals to be li­ censed as school administrators. License requirements vary by State, but nearly all States require either a master’s degree or some other graduate-level training. Some States also require candidates for licensure to pass a test. Increasingly, on-the-job training, often with a mentor, is 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. In private schools, which are not subject to State licensure requirements, some principals and assistant principals hold only a bachelor’s degree, but the majority have a master’s or doctoral degree. Educational requirements for administrators of preschools and childcare centers vary depending on the setting of the program and the State of employment. Administrators who oversee preschool programs in public schools are often required to have at least a bachelor’s degree. Child care directors are generally not required to have a degree; however, most States require a general preschool education credential, such as the Child Development Associate credential (CDA) sponsored by the Council for Professional Recog­ nition, or a credential specifically designed for administrators. The National Child Care Association, offers a National Administration Credential, which some recent college graduates voluntarily earn to better qualify for positions as child care center directors. Academic deans and chairpersons usually have a doctorate in their specialty. Most have held a professorship in their department before advancing. Admissions, student affairs, and financial aid directors and registrars sometimes start in related staff jobs with bachelor’s degrees—any field usually is acceptable—and obtain advanced degrees in college student affairs, counseling, or higher education administration. A Ph.D. or Ed.D. usually is necessary for top student affairs positions. Computer literacy and a background in accounting or statistics may be assets in admissions, records, and financial work. Advanced degrees in higher education administration, educa­ tional leadership, and college student affairs are offered in many colleges and universities. Education administration degree programs 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 Accreditation of Teacher Education and the Educational Leadership Constituent Council accredit programs designed for elementary and secondary school administrators. While completion of an accredited program is not required, it may assist in fulfilling licensure requirements. Education administrators advance through promotion to more responsible administrative positions or by transferring to more responsible positions at larger schools or systems. They also may become superintendents of school systems or presidents of educa­ tional institutions.  Management, Business, and Financial Occupations  Employment Education administrators held about 442,000jobs in 2004. Of these, 58,000 were preschool or child care administrators, 225,000 were elementary or secondary school administrators, and 132,000 were postsecondary administrators. About 2 in 10 worked for private education institutions, and 6 in 10 worked for State and local govern­ ments, mainly in schools, colleges and universities, and departments of education. Less than 4 percent were self-employed. The rest worked in child daycare centers, religious organizations, job train­ ing centers, and businesses and other organizations that provided training for their employees.  Job Outlook Employment of education administrators is projected to grow as fast as the average for all occupations through 2014. As education and training take on greater importance in everyone’s lives, the need for people to administer education programs will grow. Job opportuni­ ties for many of these positions should also be excellent because a large proportion of education administrators are expected to retire over the next 10 years. Enrollments of school-age children are the primary factor de­ termining the demand for education administrators. Enrollment of students in elementary and secondary schools is expected to grow slowly over the next decade, which will limit the growth of princi­ pals and other administrators in these schools. However, preschool and childcare center administrators are expected to experience substantial growth as enrollments in formal child care programs continue to expand as fewer private households care for young children. Additionally, as more States begin implementing public preschool programs, more preschool directors will be needed. The number of postsecondary school students is projected to grow more rapidly than other student populations, creating significant demand for administrators at that level. Opportunities may vary by geographical area, as enrollments are expected to increase the fast­ est in the West and South, where the population is growing, and to decline or remain stable in the Northeast and the Midwest. School administrators also are in greater demand in rural and urban areas, where pay is generally lower than in the suburbs. Principals and assistant principals should have very favorable job prospects. A sharp increase in responsibilities in recent years has made the job more stressful, and has discouraged some teachers from taking positions in administration. Principals are now being held more accountable for the performance of students and teachers, while at the same time they are required to adhere to a growing number of government regulations. In addition, overcrowded classrooms, safety issues, budgetary concerns, and teacher shortages in some areas all are creating additional stress for administrators. Many teachers feel the higher pay of administrators is not high enough to compensate for the greater responsibilities. Job prospects also are expected to be favorable for college and university administrators, particularly those seeking nonacademic positions. Public colleges and universities may be subject to funding shortfalls during economic downturns, but increasing enrollments over the projection period will require that institutions replace the large numbers of administrators who retire, and even hire additional administrators. In addition, a significant portion of growth will stem from growth 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 train­ ing, 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.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  37  While competition among faculty for prestigious positions as academic deans and department heads is likely to remain keen, fewer applicants are expected for nonacademic administrative jobs, such as director of admissions or student affairs. Furthermore, many people are discouraged from seeking administrator jobs by the requirement that they have a master’s or doctoral degree in education administration—as well as by the opportunity to earn higher salaries in other occupations.  Earnings In May 2004, elementary and secondary school administrators had median annual earnings of $74,190; postsecondary school administrators had median annual earnings of $68,340, while preschool and childcare center administrators earned a median of $35,730 per year. Salaries of education administrators depend on several factors, including the location and enrollment level in the school or school district. According to a survey of public schools, conducted by the Educational Research Service, average salaries for principals and assistant principals in the 2004-05 school year were as follows: Principals: Senior high school............................................................................. $82,225 Jr. high/middle school...................................................................... 78,160 Elementary school............................................................................. 74,062 Assistant principals: Senior high school............................................................................. $68,945 Jr. high/middle school...................................................................... 66,319 Elementary school............................................................................. 63,398  According to the College and University Professional Association for Human Resources, median annual salaries for selected adminis­ trators in higher education in 2004-05 were as follows: Chief academic officer........................................................................ $127,066 Academic deans: Business............................................................................................. $120,460 Arts and sciences............................................................................. 110,412 Graduate programs......................................................................... 109,309 Education........................................................................................... 107,660 Nursing.............................................................................................. 100,314 Health-related professions............................................................. 100,185 Continuing education..................................................................... 91,800 Occupational or vocational education........................................ 79,845 Other administrators: Chief development officer............................................................. $114,400 Dean of students.............................................................................. 75,245 Director, student financial aid...................................................... 63,130 Registrar............................................................................................ 61,953 Director, student activities............................................................ 45,636  Benefits for education administrators are generally very good. Many get 4 or 5 weeks vacation every year and have generous health and pension packages. Many colleges and universities offer free tuition to employees and their families.  Related Occupations Education administrators apply organizational and leadership skills to provide services to individuals. Workers in related occupations include administrative services managers; office and administrative support worker supervisors and managers; 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; teach­ ers—preschool, kindergarten, elementary, middle, and secondary; and teachers—postsecondary.  38  Occupational Outlook Handbook  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 Associa­ tion Drive, Reston, VA 20191-1537. Internet: http://www.nassp.org For a list of nationally recognized programs in elementary and secondary educational administration, contact: >• 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 officers, contact: >■ American Association of Collegiate Registrars and Admissions Officers, One Dupont Circle NW„ Suite 520, Washington, DC 20036-1171. Internet: http://www.aacrao.org For information on professional development and graduate pro­ grams for college student affairs administrators, contact: >- NASPA, Student Affairs Administrators in Higher Education, 1875 Connecticut Ave. NW„ Suite 418, Washington, DC 20009. Internet: http ://www.naspa.org  Engineering and Natural Sciences Managers (0*NET 11-9041.00, 11-9121.00)  Significant Points •  Most engineering and natural sciences managers have previous experience as engineers, scientists, or math­ ematicians.  •  Projected employment growth for engineering and natural sciences managers should be closely related to growth in employment of the engineers and scientists they supervise and of the industries in which they are found.  •  Opportunities will be best for workers with strong communication and business management skills.  In addition, these managers use communication skills extensively. They spend a great deal of time coordinating the activi­ ties 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 contractors and equipment and materials suppliers. Engineering managers may supervise people who design and develop machinery, products, systems, and processes, or they may di­ rect and coordinate production, operations, quality assurance, testing, or maintenance in industrial plants. Many are plant engineers, who direct and coordinate the design, installation, operation, and main­ tenance of equipment and machinery in industrial plants. Others manage research and development teams that produce new products and processes or improve existing ones. Natural sciences managers oversee the work of life and physical scientists (including agricultural scientists, chemists, biologists, ge­ ologists, medical scientists, and physicists). These managers direct research and development projects and coordinate activities such as testing, quality control, and production. They may work on basic research projects or on commercial activities. Science managers sometimes conduct their own research in addition to managing the work of others.  Working Conditions Engineering and natural sciences managers spend most of their time in an office. Some managers, however, also may work in laborato­ ries, where they may be exposed to the same conditions as research scientists, or in industrial plants, where they may be exposed to the same conditions as production workers. Most managers work at least 40 hours a week and may work much longer on occasion to meet project deadlines. Some may experience considerable 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. Therefore, these management positions usually require work experience and formal education as an engineer, scientist, or mathematician.  Nature of the Work Engineering and natural sciences managers plan, coordinate, and direct research, design, and production activities. They 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 activities. 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 accomplish these goals. For example, they may develop the overall concepts of a new product or identify technical problems preventing the completion of a project. To perform effectively, they also must acquire knowledge of admin­ istrative procedures, such as budgeting, hiring, and supervision. These managers propose budgets for projects and programs and determine staff, training, and equipment needs. They hire and assign scientists, engineers, and support personnel to carry out specific parts of each project. They also supervise the work of these employees, review their output, and establish administrative procedures and policies— including environmental standards, for example.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  M.  Engineering and natural sciences managers must have people skills to effectively coordinate work on the many aspects of each project.  Management, Business, and Financial Occupations Most engineering managers begin their careers as engineers, after completing a bachelor’s degree in the field. To advance to higher level positions, engineers generally must assume manage­ ment responsibility. To fill management positions, employers seek engineers who possess administrative and communication skills in addition to technical knowledge in their specialty. Many engineers gain these skills by obtaining a master’s degree in engi­ neering management or a master’s degree in business administra­ tion (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 manage in technical areas pursue a master’s degree in engineering management, while those interested in nontechnical management earn an MBA. Many science managers begin their careers as scientists, such as chemists, biologists, geologists, or mathematicians. Most scientists or mathematicians engaged in basic research have a Ph.D.; some in applied research and other activities may have a bachelor’s or master’s degree. Science managers must be specialists in the work they supervise. In addition, employers prefer managers with good communication and administrative skills. Graduate programs allow scientists to augment their undergraduate training with instruction in other fields, such as management or computer technology. Given the rapid pace of scientific developments, science managers must continuously upgrade their knowledge. Engineering and natural sciences managers may advance to pro­ gressively higher leadership positions within their discipline. Some may become managers in nontechnical areas such as marketing, human resources, or sales. In high technology firms, managers in nontechnical areas often must possess the same specialized knowl­ edge as do managers in technical areas. For example, employers in an engineering firm may prefer to hire experienced engineers as sales workers because the complex services offered by the firm can be marketed only by someone with specialized engineering knowledge. Such sales workers could eventually advance to jobs as sales managers.  Employment Engineering and natural sciences managers held about 233,000 jobs in 2004. About 27 percent worked in professional, scientific, and technical services industries, primarily for firms providing architectural, engineering, and related services; computer systems design and related services; and scientific research and development services. Manufacturing industries employed 37 percent of engi­ neering and natural sciences managers. Manufacturing industries with the largest employment include those producing computer and electronic equipment; transportation equipment, including aerospace products and parts; chemicals, including pharmaceuticals; and ma­ chinery manufacturing. Other large employers include government agencies and telecommunications and utilities companies.  Job Outlook Employment of engineering and natural sciences managers is expected to grow about as fast as the average for all occupations through the year 2014—in line with projected employment growth in engineering and most sciences. However, many additional jobs will result from the need to replace managers who retire or move into other occupations. Opportunities for obtaining a management position will be best for workers with advanced technical knowledge and strong communication skills. Because engineering and natural sciences managers are involved in their firms’ financial, produc­ tion, and marketing activities, business management skills are also important.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  39  Projected employment growth for engineering and natural sciences managers should be closely related to the growth of the occupations they supervise and of the industries in which they are found. For example, opportunities for managers should be better in rapidly growing areas of engineering—such as environmental and biomedical engineering—than in more slowly growing areas, such as nuclear and aerospace engineering. (See the statements on engineers and on life and physical scientists elsewhere in the Handbook.) In addition, many employers are finding it more ef­ ficient to contract engineering and science management services to outside companies and consultants, creating good opportunities for managers in management services and management, scientific, and technical consulting firms.  Earnings Earnings for engineering and natural sciences managers vary by specialty and by level of responsibility. Median annual earnings of engineering managers were $97,630 in May 2004. The middle 50 percent earned between $78,820 and $121,090. Median annual earnings in the industries employing the largest numbers of engi­ neering managers in May 2004 were: Semiconductor and other electronic component manufacturing $116,400 Navigational, measuring, electromedical, and control instruments manufacturing..................................................... 107,160 Aerospace product and parts manufacturing............................... 103,570 Federal government...................................................................... 97,000 Architectural, engineering, and related services......................... 96,020 Median annual earnings of natural sciences managers were $88,660 in May 2004. The middle 50 percent earned between $64,550 and $118,210. Median annual earnings in the industries employing the largest numbers of natural sciences managers in May 2004 were: Scientific research and development services............................ $106,530 Federal government.................................................................... 81,460 A survey of manufacturing firms, conducted by Abbot, Langer & Associates, found that engineering department managers and superintendents earned a median annual income of $89,232 in 2004, while research and development managers earned $90,377. In addition, engineering and natural sciences managers, especially those at higher levels, often receive more benefits—such as expense accounts, stock option plans, and bonuses—than do nonmanagerial workers in their organizations.  Related Occupations The work of engineering and natural sciences managers is closely related to that of engineers; mathematicians; and physical and life scientists, including agricultural and food scientists, atmospheric scientists, biological scientists, conservation scientists and forest­ ers, chemists and materials scientists, environmental scientists and hydrologists, geoscientists, medical scientists, and physicists and astronomers. It also is related to the work of other managers, especially top executives.  Sources of Additional Information For information about a career as an engineering and natural sci­ ences manager, contact the sources of additional information for engineers, life scientists, and physical scientists that are listed at the end of statements on these occupations elsewhere in the  Handbook.  40  Occupational Outlook Handbook  Farmers, Ranchers, and Agricultural Managers (0*NET 11-9011.01, 11-9011.02, 11-9011.03, 11-9012.00)  Significant Points •  Modem farming requires knowledge of new devel­ opments in agriculture, as well as work experience acquired through growing up on a farm or through postsecondary 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 agricul­ tural 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. The type of farm they operate determines their specific tasks. On crop farms—farms growing grain, cot­ ton, other fibers, fruit, and vegetables—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, or marketed. Livestock, dairy, and poultry farmers must feed and care for the animals and keep bams, pens, coops, and other farm buildings clean and in good condition. They also plan and oversee breeding and marketing activities. Horticultural specialty farmers oversee the produc­ tion of ornamental plants, nursery products—such as flowers, bulbs, shrubbery, and sod—and fruits and vegetables grown in greenhouses. 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 consumption or used for recreational fishing. Responsibilities of farmers and ranchers range from caring for livestock, to operating machinery, to maintaining equipment and facilities. The size of the farm or ranch often determines which of these tasks farmers and ranchers will handle themselves. Operators of small farms usually perform all tasks, physical and 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 employ­ ees who help with the physical work that small-farm operators do themselves. Although employment on most farms is limited to the farmer and one or two family workers or hired employees, some large farms have 100 or more full-time and seasonal workers. Some of these employees are in nonfarm occupations, working as truck driv­ ers, sales representatives, bookkeepers, and computer specialists. Agricultural managers manage the day-to-day activities of one or more farms, ranches, nurseries, timber tracts, greenhous­ es, and other agricultural establishments for farmers, absentee landowners, or corporations. Their duties and responsibilities vary widely, but focus on the business aspects of running a farm. On small farms, they may oversee the entire operation; on   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  larger farms, they may oversee a single activity, such as marketing. Agricultural managers usually do not perform production activities; instead, they hire and supervise farm and livestock workers, who perform most of the daily production tasks. In these cases, managers may establish output goals; determine financial constraints; monitor production and marketing; hire, assign, and supervise workers; determine crop transportation and storage requirements; and oversee maintenance of the property and equipment. Farmers, ranchers, and agricultural managers make many mana­ gerial decisions. Farm output and income are strongly influenced by the weather, disease, fluctuations in prices of domestic and foreign farm products, and Federal farm programs. 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. They use different strategies to protect themselves from un­ predictable changes in the markets for agricultural products. Many farmers and managers carefully 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 for the loss. 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 through farmers’ markets or may use coop­ eratives to reduce their financial risk and to gain a larger share of the retail dollar. For example, in community-supported agriculture (CSA), 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 market for the produce of the coming season. Farmers, ranchers, and agricultural managers also negotiate with banks and other credit lenders to get the best financing deals for their equipment, livestock, and seed. They also must keep abreast of constantly changing prices for their products and manage the risk of fluctuating prices. Those who plan ahead 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 market, where contracts on future production of agricultural goods are bought and sold, can minimize the risk of sudden price changes by buying futures contracts which guarantee that they will get at least a certain price for their agricultural goods when they are ready to sell. Like other businesses, farming operations have become more complex in recent years, so many farmers use computers to keep financial and inventory records. They also use computer databases and spreadsheets to manage breeding, dairy, and other farm operations.  mmm  fjs i  BISMII  rt ,  -■  spii  < -  mm  ,, •  Many farmers work part time on small farms.  -  .V-  AvV’,-,  Management, Business, and Financial Occupations  Working Conditions The work of full-time farmers, ranchers, and agricultural manag­ ers is often strenuous; work hours are frequently long, and they rarely have days off during the planting, growing, and harvesting seasons. Nevertheless, for those who enter farming or ranching, the disadvantages are counterbalanced by the quality of life 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 seasons. The rest of the year, they plan next season’s crops, market 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 rarely get the chance to get away, unless they hire an assistant or arrange for a temporary substitute. Farmers who grow produce and perishables have different de­ mands on their time. For example, organic farmers must maintain cover crops during the cold months, thus keeping them occupied with farming beyond the typical growing season. Farmwork also can be hazardous. Tractors and other farm machin­ ery can cause serious injury, and workers must be constantly alert on the job. The proper operation of equipment and handling of chemicals are necessary to avoid accidents, safeguard one’s health, and protect the environment. On very large farms, farmers spend substantial time meeting with farm managers or farm supervisors in charge of various activities. Professional farm managers overseeing several farms may divide their time between traveling to meet farmers or landown­ ers and planning the farm operations in their offices. As farming practices and agricultural technology become more sophisticated, farmers and farm managers are spending more time in offices and at computers, where they electronically manage many aspects of their businesses. Some farmers also spend time at conferences exchanging information, particularly during the winter months.  Training, Other Qualifications, and Advancement Growing up on a family farm and participating in agricultural programs for young people, such as the National FFA Organization or the 4-H youth educational programs, are important sources of train­ ing for those interested in pursuing agriculture as a career. However, modem farming requires increasingly complex scientific, business, and financial decisions, so postsecondary education in agriculture is important even for people who were raised on farms. The completion of a 2-year degree, or better, a 4-year bachelor’s degree program in a college of agriculture, is becoming increasingly important for farm managers and for farmers and ranchers who expect to make a living at farming. A degree in business or farm manage­ ment with a concentration in agriculture is important, but even after obtaining formal education, novices may need to spend time working under an experienced farmer to learn how to put into practice the skills learned through academic training. A small number of farms offer, on a formal basis, apprenticeships to help young people acquire such practical skills. Students should select the college most appropriate to their specific 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, horticulture, crop and fruit science, and animal science. For students interested in aquaculture, formal programs also are available and include coursework in fisheries biology, fish culture, hatchery management   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  41  and maintenance, and hydrology. Whatever one’s interest, the college curriculum should include courses in agricultural production, marketing, and economics. Agricultural managers can enhance their professional status 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 man­ agement experience, the appropriate academic background—a bachelor’s degree or, preferably, a master’s degree in a field of agricultural science—and the passing of courses and examinations relating to the business, financial, and legal aspects of farm and ranch management. Farmers, ranchers, and agricultural managers need to keep abreast of continuing advances in agricultural methods both in the United States and abroad, as well as monitor changes in govern­ mental regulations that may affect methods or markets for particular crops. Besides print journals that inform the agricultural commu­ nity, the spread of the Internet allows quick access to the latest devel­ opments in areas such as agricultural marketing, legal arrangements, and growing crops, vegetables, and livestock. Electronic mail, online journals, and newsletters from agricultural organizations also speed the exchange of information directly between farming associations and individual farmers. Farmers, ranchers, and agricultural managers also must have enough technical knowledge of crops, growing conditions, and plant diseases to make decisions that ensure the successful opera­ tion of their farms. A rudimentary knowledge of veterinary science, as well as animal husbandry, is important for livestock and dairy farmers. Knowledge of the relationship between farm operations— for example, the use of pesticides—and environmental conditions is essential. 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. Farmers, ranchers, and agricultural managers need the managerial skills necessary to organize and operate a business. A basic knowl­ edge of accounting and bookkeeping is essential in keeping financial records, while knowledge of sources of credit is vital for buying seed, fertilizer, and other inputs necessary for planting. It also is neces­ sary to be familiar with complex safety regulations and requirements of governmental agricultural support programs. Computer skills are becoming increasingly important, especially on large farms, where computers are widely used for recordkeeping and business analysis. For example, some farmers, ranchers, and agricultural managers use personal computers to access the Internet to get the latest information on prices of farm products and other agricultural news. In addition, skills in personnel management, communication, and conflict resolution are equally important in the operation of a farm or ranch business.  Employment Farmers, ranchers, and agricultural managers held nearly 1.3 million jobs in 2004. About 83 percent were self-employed. Most farm­ ers, ranchers, and agricultural managers oversee crop production activities, while others manage livestock and dairy production. Most farmers and ranchers operate small farms on a part-time basis. The soil, topography of the land, and climate often determine the type of farming and ranching done in a particular area. California, Texas, Iowa, Nebraska, and Kansas are the leading agricultural States.  Job Outlook Market pressures and low prices for many agricultural goods will cause more farms to go out of business over the 2004-14 period. The complexity of modem farming and keen competition  42  Occupational Outlook Handbook  among farmers leave little room for the marginally successful farmer. Therefore, the long-term trend toward the consolidation of farms into fewer and larger ones is expected to continue over the 2004-14 period and result in a continued decline in employment of self-employed farmers and ranchers and slower-than-average growth in employment of salaried agricultural managers. As land, machinery, seed, and chemicals become more expensive, only wellcapitalized farmers and corporations will be able to acquire many of the farms that become available. The larger, more productive farms are better able to withstand the adverse effects of climate and price fluctuations upon farm output and income. Larger farms also may have advantages in obtaining government subsidies and payments as these payments are usually based on per-unit production. In addition, the agriculture sector continues to produce more with fewer workers. Increasing productivity in the U.S. agriculture industry is expected to allow greater domestic consumption needs and export requirements to be met with fewer farmers, ranchers, and agricultural managers overall. The overwhelming majority of job openings for self-employed farmers and ranchers will result from the need to replace farmers who retire or leave the occupation for economic or other reasons. Despite the expected continued consolidation of farmland and the projected decline in overall employment of farmers, ranchers, and agricultural managers, an increasing number of small-scale farmers have developed successful market niches that involve personalized, direct contact with their customers. Many are finding opportunities in organic food production, as more consumers demand food grown without pesticides or chemicals. 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 smallscale farmers belong to collectively owned marketing cooperatives that process and sell their product. Other farmers participate in community-supported agriculture cooperatives that allow consumers to directly buy a share of the farmer’s harvest. Aquaculture may continue to provide some new employment opportunities over the 2004-14 period. New 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 de­ mand has spurred the growth of aquaculture farms that raise selected aquatic species—such as shrimp, salmon, trout and catfish— in pens or ponds. Aquaculture’s presence even in landlocked States has increased as farmers attempt to diversify and cater to the growing demand for fish by consumers. In addition, growing demand for horticulture products, such as flowers, ornamentals, trees, shrubs, and other nonedibles, is expected to produce better employment opportunities for greenhouse and nursery farmers and managers.  The highest paid 10 percent earned more than $1,264, and the lowest paid 10 percent earned less than $350. Farmers and self-employed farm managers make their own provisions for benefits. As members of farm organizations, they may derive benefits such as group discounts on health and life insurance premiums.  Related Occupations Farmers, ranchers, and agricultural managers strive to improve the quality of agricultural products and the efficiency of farms. Others whose work is related to agricultural products include agricultural engineers, agricultural and food scientists, agricultural workers, and purchasing agents and buyers of farm products.  Sources of Additional Information For general information about farming and agricultural occupations, contact either of the following organizations: >- Center for Rural Affairs, P.O. Box 406, Walthill, NE 68067. Internet:  http://www.cfra.org > National FFA Organization, The National FFA Center, Attention Career Information Requests, P.O. Box 68690, Indianapolis, IN 46268-0960. Internet: http://www.ffa.org  For information about certification as an accredited farm man­ ager, contact: > American Society of Farm Managers and Rural Appraisers, 950 Cherry St., Suite 508, Denver, CO 80222. Internet: http://www.asfmra.org  For information on the USDA’s program to help small farmers get started, contact: >■ Small Farm Program, U.S. Department of Agriculture, Cooperative State, Research, Education, and Extension Service, Stop 2220, Washington, DC 20250-2220. Internet: http://www.csrees.usda.gov/nea/ag_systems/  part/smaIlfarms_part_directory.html For information on aquaculture, diversified agriculture, educa­ tion, training, or community-supported agriculture, contact either of the following organizations: > Alternative Farming System Information Center (AFSIC), National Ag­ ricultural Library USDA, 10301 Baltimore Ave., Room 132, Beltsville, MD 20705-2351. Internet: http://www.nal.usda.gov/afsic >- Appropriate Technology Transfer for Rural Areas (ATTRA), the National Sustainable Agriculture Information Service, P.O. Box 3657, Fayetteville, AR 72702. Internet: http://www.attra.ncat.org  Financial Managers (0*NET 11-3031.01, 11-3031.02)  Significant Points •  About 3 out of 10 work in finance and insurance industries.  •  A bachelor’s degree in finance, accounting, or a related field is the minimum academic preparation, but many employers increasingly seek graduates with a master’s degree 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.  •  Jobseekers are likely to face competition.  Earnings Incomes of farmers and ranchers vary greatly from year to year because prices of farm products fluctuate with weather conditions and other factors influencing the quantity and quality of farm out­ put and the demand for those products. A farm that shows a large profit one year may show a loss the following year. According to the U.S. Department of Agriculture, the average net cash farm business income for farm operator households in 2004 was $15,603. This figure, however, 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 earnings of $621 in 2004. The middle half earned between $464 and $890.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Almost every firm, government agency, and other type of organiza­ tion has one or more financial managers who oversee the preparation of financial reports, direct investment activities, and implement cash  Management, Business, and Financial Occupations management strategies. Because computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization. The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and forecast the organization’s financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are in charge of preparing special reports required by regula­ tory authorities. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organization’s financial goals, objectives, and budgets. 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 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. Managers specializing in inter­ national finance develop financial and accounting systems for the banking transactions of multinational organizations. Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in interest-bearing instruments. Risk and insurance managers oversee programs to minimize risks and losses that might arise from financial transactions and business operations undertaken by the institution. They also manage the organization’s insurance budget. Financial institutions, such as commercial banks, savings and loan associations, credit unions, and mortgage and finance companies, employ additional financial managers who oversee various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or electronic financial services. These managers may be required to solicit business, authorize loans, and direct the investment of funds, always adhering to Federal and State laws and regulations. (Chief financial officers and other executives are included with top executives elsewhere in the Handbook.) Branch managers of financial institutions administer and manage all of the functions of a branch office, which may include hiring person­ nel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. The trend is for branch mangers to become more oriented toward sales and marketing. It is important that they have substantial knowledge 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 carrying out the preceding general duties, all financial managers perform tasks unique to their organization or industry. For example, government financial managers must be experts on the gov­ ernment 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 knowledge on the part of the financial manager to reduce risks and maximize profit. Financial managers increasingly are hired on a temporary basis to advise senior managers on these and other matters. In fact, some small firms contract out all their accounting and financial functions to companies that provide such services.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  43  fiJgflflBiJI  Financial managers oversee the preparation of financial reports and investment activities.  The role of the financial manager, particularly in business, is changing in response to technological advances that have significantly 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 of the latest computer technology in order to increase the efficiency of their firm’s financial operations.  Working Conditions Working in comfortable offices, often close to top managers and to departments that develop the financial data those managers need, fi­ nancial managers typically have direct access to state-of-the-art com­ puter systems and information 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 A bachelor’s degree in finance, accounting, economics, or business administration is the minimum academic preparation for financial managers. However, many employers now seek graduates with a master’s degree, preferably in business administration, economics, finance, or risk management. These academic programs develop analytical skills and provide knowledge of the latest financial analysis methods and technology. Experience may be more important than formal education for some financial manager positions—most notably, branch managers 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 As­ sociation, sponsors educational and training programs for bank officers through a wide range of banking schools and educational conferences. 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. Financial management, banking, and credit union associations, often in cooperation with colleges and universities,  44  Occupational Outlook Handbook  sponsor numerous national and local training programs. Persons enrolled prepare extensively at home and then attend sessions on subjects such as accounting management, budget management, cor­ porate cash management, financial analysis, international banking, and information systems. Many firms pay all or part of the costs for employees who successfully complete courses. Although experience, ability, and leadership are emphasized for promotion, advancement may be accelerated by this type of special study. In some cases, financial managers also may broaden their skills and exhibit their competency by attaining professional certification. Many different associations offer professional certifica­ tion programs. For example, the CFA Institute confers the Chartered Financial Analyst designation on investment professionals who have a bachelor’s degree, pass three sequential examinations, and meet work experience requirements. The Association for Financial Profes­ sionals (AFP) confers the Certified Cash Manager credential to those who pass a computer-based exam and have a minimum of 2 years of relevant experience. The Institute of Management Accountants offers a Certified in Financial Management designation to members with a bachelor’s degree, with at least 2 years of work experience, and who pass the institute’s four-part examination and fulfill continuing education requirements. Also, financial managers who specialize in accounting may earn the Certified Public Accountant (CPA) or Certi­ fied Management Accountant (CMA) designation. (See accountants and auditors elsewhere in the Handbook.) Candidates for financial management positions need a broad range of skills. Interpersonal skills are important because these jobs involve managing people and working as part of a team to solve problems. Financial managers must have excellent communication skills to explain complex financial data. Because financial manag­ ers work extensively with various departments in their firm, a broad overview of the business is essential. Financial managers should be creative thinkers and problemsolvers, applying their analytical skills to business. They must be comfortable with the latest computer technology. Financial operations are increasingly being affected by the global economy, so financial managers must have knowledge of international finance. Proficiency in a foreign language also may be important. Because financial management is critical to efficient business operations, well-trained, experienced financial managers 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 managers transfer to closely related posi­ tions in other industries. Those with extensive experience and access to sufficient capital may start their own consulting firms.  As in other managerial occupations, jobseekers are likely to face competition, because the number of job openings is expected to be less than the number of applicants. Candidates with exper­ tise in accounting and finance—particularly those with a master’s degree—should enjoy the best job prospects. Strong computer skills and knowledge of international finance are important; so are excellent communication skills, because financial management jobs involve working on strategic planning teams. In addition, a good knowledge of compliance procedures is essential because of the many regulatory changes instituted in recent years. Over the short term, employment growth in this occupation may slow or even reverse due to economic downturns, during which companies are more likely to close departments or even go out of business—decreasing the need for financial managers. The banking industry will continue to consolidate, although at a slower rate than in previous years. In spite of this trend, employment of bank branch managers is expected to increase, because banks are refocusing on the importance of their existing branches and are creat­ ing new branches to service a growing population. As banks expand the range of products and services they offer to include insurance and investment products, branch managers 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 statements on insurance sales agents; and securities, commodities, and financial services sales agents.) The long-run prospects for financial managers in the securities and commodities industry should be favorable, because more people will be needed to handle increasingly complex financial transactions and manage a growing amount of investments. Financial manag­ ers also will be needed to handle mergers 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 temporary 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, how­ ever, financial managers may be needed to oversee the contracts. Computer technology has reduced the amount of time and the staff required to produce financial reports. As a result, forecasting earnings, profits, and costs and generating ideas and creative ways to increase profitability will become a major role of corporate financial managers over the next decade. Financial managers who are familiar with computer software that can assist them in this role will be needed.  Employment  Earnings  Financial managers held about 528,000 jobs in 2004. Although they can be found in every industry, approximately 3 out of 10 are employed by finance and insurance establishments, such as banks, savings institutions, finance companies, credit unions, insurance carriers, and securities dealers. About 1 in 10 works for Federal, State, or local government.  Job Outlook Employment of financial managers is expected to grow about as fast as the average for all occupations through 2014. The increasing need for financial expertise as a result of regulatory reforms and the expansion of the economy will drive job growth over the next decade. As the economy expands, both the growth of established companies and the creation of new businesses will spur demand for financial managers. However, mergers, acquisitions, and cor­ porate downsizing are likely to restrict the employment growth to some extent.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Median annual earnings of financial managers were $81,880 in May 2004. The middle 50 percent earned between $59,490 and $112,320. Median annual earnings in the industries employing the largest numbers of financial managers in 2004 were as follows: Securities and commodity contracts intermediation and brokerage $129,770 Management of companies and enterprises.................................... 97,730 Nondepository credit intermediation............................................... 88,870 Local government .................................................................................. 67,260 Depository credit intermediation........................................................ 64,530  According to a 2005 survey by Robert Half International, a staffing services firm specializing in accounting and finance professionals, directors of finance earned between $78,500 and $178,250,and corporate controllers earned between $61,250 and $147,250. A 2004 survey of manufacturing firms conducted by Abbot, Langer, and Associates, Inc., a human resources management consulting firm,  Management, Business, and Financial Occupations reported the following median annual incomes: chief corporate finan­ cial officers, $ 130,000; corporate controllers, $86,150; cost accounting managers, $67,161; and general accounting managers, $64,100. Large organizations often pay more than small ones, and salary levels also can depend on the type of industry and location. Many financial managers in both public and private industry receive ad­ ditional compensation in the form of bonuses, which, like salaries, vary substantially by size of firm. Deferred compensation in the form of stock options is becoming more common, especially for senior-level executives.  Related Occupations Financial managers combine formal education with experience in one or more areas of finance, such as asset management, lending, credit operations, securities investment, or insurance risk and loss control. Workers in other occupations requiring similar training and skills include accountants and auditors; budget analysts; financial ana­ lysts and personal financial advisors; 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 manage­ ment, contact: ► Financial Management Association International, College of Business Administration, University of South Florida, Tampa, FL 33620-5500. Internet: http://www.fma.org  For information about careers in financial and treasury manage­ ment and the Certified Cash Manager program, contact: >■ Association for Financial Professionals, 7315 Wisconsin Ave., Suite 600 West, Bethesda, MD 20814. Internet: http://www.afponline.org  For information about the Chartered Financial Analyst program, contact: >- CFA Institute, P.O. Box 3668, 560 Ray Hunt Dr., Charlottesville, VA 22903-0668. Internet: http://www.cfainstitute.org  For information on the Financial Risk Manager program, contact: >■ Global Association of Risk Professionals, 100 Pavonia Ave., Suite 405, Jersey City, NJ 07310.  For information about the Certified in Financial Management designation, contact: >■ Institute of Management Accountants, 10 Paragon Dr., Montvale, NJ, 07645-1718 Internet: http://www.imanet.org  Food Service Managers (0*NET 11-9051.00)  Significant Points •  Experience as food and beverage preparation and ser­ vice workers is essential for promotion into managerial positions, however, applicants with a college degree in restaurant and institutional food service management should have the best job opportunities.  •  Many new food service manager jobs will arise in the food services and drinking places industry as the number of establishments increases along with the population.  •  Job opportunities for salaried food service manag­ ers should be better than for self-employed managers because more restaurant managers will be employed by regional or national restaurant chains to run their establishments.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  45  Nature of the Work Food service managers are responsible for the daily operations of restaurants and other establishments that prepare and serve meals and beverages to customers. Besides coordinating activities among various departments, such as kitchen, dining room, and banquet op­ erations, food service managers ensure that customers 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, its equipment, and facilities. Managers generally are responsible for all of the administrative and human-resource functions of running the busi­ ness, including recruiting new employees and monitoring employee performance and training. In most full-service restaurants and institutional food service facilities, the management team consists of a general manager, one or more assistant managers, and an executive chef. The executive chef is responsible for all food preparation activities, including run­ ning kitchen operations, planning menus, and maintaining quality standards for food service. In limited-service eating places, such as sandwich shops, coffee bars, or fast-food establishments, 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 hours, individual assistant managers may supervise different shifts of workers. In smaller restaurants, 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.) One of the most important tasks of food service managers is assisting executive chefs as they select successful menu items. This task varies by establishment depending on the seasonality of menu items, the frequency with which restaurants change their menus, and the introduction of daily or weekly specials. Many restaurants rarely change their menus while others make frequent alterations. Managers or executive chefs select menu items, taking into account the likely number of customers and the past popularity of dishes. Other issues considered when planning a menu include whether there was any unserved food left over from prior meals that should not be wasted, the need for variety, and the seasonal avail­ ability of foods. Managers or executive chefs analyze the recipes of the dishes to determine food, labor, and overhead costs and to assign prices to various dishes. Menus must be developed far enough in advance that supplies can be ordered and received in time. Managers or executive chefs estimate food needs, place orders with distributors, and schedule the delivery of fresh food and 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 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, cook­ ing utensils, and furniture and fixtures. Managers must be good communicators. They need to speak well, often in several languages, with a diverse clientele and staff. They must motivate employees to work as a team, to ensure that food and  46  Occupational Outlook Handbook  service meet appropriate standards. Managers also must ensure that written supply orders are clear and unambiguous. Managers interview, hire, train, and, when necessary, fire employees. Retaining good employees is a major challenge facing food service managers. Managers recruit employees at career fairs, contact schools that offer academic programs in hospitality or culi­ nary arts, and arrange for newspaper advertising to attract 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 unable to work, managers may have to call in alternates to cover for them or fill in themselves when needed. Some managers may help with cooking, clearing tables, or other tasks when the restaurant becomes extremely busy. Food service managers ensure that diners are served properly and in a timely manner. They investigate and resolve customers’ complaints about food quality or service. They monitor orders in the kitchen to determine where backups may occur, and they work with the chef to remedy any delays in service. Managers direct the cleaning of the dining areas and the washing of tableware, kitchen utensils, and equipment to comply with company and government sanitation standards. Managers also monitor the actions of their employees and patrons on a continual basis to ensure the personal safety of everyone. They make sure that health and safety standards and local liquor regulations are obeyed. In addition to their regular duties, food service managers perform a variety of administrative assignments, such as keeping employee work records, preparing the payroll, and completing paperwork to comply with licensing laws and reporting requirements of 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 managers retain responsibility for the accuracy of business records. Managers also maintain records of supply and equipment purchases and ensure that accounts with suppliers are paid. Technology influences the jobs of food service managers in many ways, enhancing efficiency and productivity. Many restau­ rants use computers to track orders, inventory, and the seating of patrons. Point-of-service (POS) systems allow servers to key in a customer’s order, either at the table, using a hand-held device, or from a 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 as a cash register, connects to credit card authorizes, and tracks sales. To minimize food costs and spoilage, many managers use inventory-tracking software to compare the record of sales from the POS with a record of the cur­ rent 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 equip­ ment, recruit employees, and train staff. Internet access also makes service to customers more efficient. Many restaurants maintain Web sites that include menus and online promotions, provide informa­ tion about the restaurant’s location, and offer patrons the option to make a reservation. Managers tally the cash and charge receipts received and balance 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.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Food service managers schedule employees to assure adequate staffing. Working Conditions Food service managers are among the first to arrive in the morning and the last to leave at night. Long hours—12 to 15 per day, 50 or more per week, and sometimes 7 days a week—are common. 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 managers are unpredictable. Managers should be calm, flexible, and able to work through emergencies, such as a fire or flood, in order to ensure everyone’s safety. Managers also should be able to fill in for absent workers on short notice. Managers often experience the pressures of simul­ taneously 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 burns. 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 full-time waiter or waitress or as a part-time or seasonal counter attendant,  Management, Business, and Financial Occupations  47  is essential training for a food services manger. 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 service management, but they often hire graduates with degrees in other fields who have demonstrated experience, interest and aptitude. Many restaurant and food service manager posi­ tions—particularly self-service and fast-food—are filled by promoting experienced food and beverage preparation and ser­ vice workers. Waiters, waitresses, chefs, and fast-food workers demonstrating potential for handling increased responsibility sometimes advance to assistant manager or management trainee jobs. Executive chefs need extensive experience working as chefs, and general managers need prior restaurant experience, usually as assistant managers. A bachelor’s degree in restaurant and food service manage­ ment provides particularly strong preparation for a career in this occupation. Almost 1,000 colleges and universities offer 4-year programs in restaurant and hospitality management or institu­ tional 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 computer science. Some programs combine classroom and laboratory study with internships providing on-thejob experience. In addition, many educational institutions offer culinary programs in food preparation. Such training can lead to a career as a cook or chef and provide a foundation for advance­ ment to an executive chef position. Many larger food service operations will provide, or offer to pay for, technical training, such as computer or business courses, so that employees can acquire the business skills necessary to read a spreadsheet or understand the concepts and practices of running a business. Generally, this requires a long-term commitment on the employee’s part to both the employer and to the profession. Most restaurant chains and food service management companies have rigorous training programs for management positions. 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, nutrition, sanitation, security, company policies and procedures, personnel management, recordkeeping, and preparation of reports. Training on use of the restaurant’s computer system is increasingly important as well. Usually, after 6 months or a year, trainees receive their first permanent assignment as an assistant  advancement in the occupation, voluntary certification provides recognition of professional competence, particularly for manag­ ers who acquired their skills largely on the job. The National Restaurant Association Educational Foundation awards the FMP designation to managers who achieve a qualifying score on a writ­ ten 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 advance to larger establishments or regional management positions within restaurant chains. Some eventually open their own food service establishments.  manager. Most employers emphasize personal qualities when hiring managers. For example, self-discipline, initiative, and leadership ability are essential. Managers must be able to solve problems and concentrate on details. They need good communication skills to deal with customers and suppliers, as well as to motivate and direct their staff. A neat and clean appearance is important, because manag­ ers must convey self-confidence and show respect in dealing with the public. Becasuse food service management can be physically demanding, good health and stamina are important. The certified Foodservice Management Professional (FMP) designation is a measure of professional achievement for food managers. Although not a requirement for employment or Digitized forservice FRASER  common. Job opportunities should be better for salaried managers than for self-employed managers. More new restaurants are affiliated with national or regional chains than are independently owned and operated. As this trend continues, fewer owners will manage restau­ rants themselves, and more restaurant managers will be employed by larger companies to run individual establishments.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Employment Food service managers held about 371,000 jobs in 2004. Most managers were salaried, but more than 40 per cent were selfemployed in independent restaurants or other small food service establishments. About 70 percent of all salaried jobs for food service managers were in full-service restaurants or limited-service eating places, such as fast-food restaurants and cafeterias. Other salaried jobs were in drinking places (alco­ holic beverages) and in special food services—an industry that includes food service contractors who supply food services at institutional, governmental, commercial, or industrial loca­ tions. A small number of salaried jobs were in traveler accom­ modation (hotels); educational services; amusement, gambling, and recreation industries; nursing care facilities; and hospitals. Jobs are located throughout the country, with large cities and tourist areas providing more opportunities for full-service dining positions.  Job Outlook Employment of food service managers is expected to grow about as fast as the average for all occupations through 2014. In addition to job openings arising out of employment growth, the need to re­ place managers who transfer to other occupations or stop working will create many 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; those with higher-level degrees should have the best opportunities. Projected employment growth varies by industry. Most new jobs will arise in full-service restaurants and limited-service eating places as the number of these establishments increase along with the population. Manager jobs in special food services, an industry that includes food service contractors, will increase as hotels, schools, healthcare facilities, and other businesses contract out their food services to firms in this industry. Food service manager jobs still are expected to increase in hotels, schools, and health-care facili­ ties, but growth will be slowed as contracting out becomes more  Earnings Median annual earnings of salaried food service managers were $39,610 in May 2004. The middle 50 percent earned between $31,010 and $51,460. The lowest 10 percent earned less than $24,500, and the highest 10 percent earned more than $68,860.  48  Occupational Outlook Handbook  Median annual earnings in the industries employing the largest numbers of food service managers in May 2004 were as follows: Traveler accommodation............................................................. Special food services................................................................... Full-service restaurants............................................................... Limited-service eating places..................................................... Elementary and secondary schools.............................................  $43,660 43,530 41,490 36,400 36,290  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-indus­ try business and provide a service to customers. Other managers 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 management, and certification as a Foodservice Management Professional is avail­ able from: ► National Restaurant Association Educational Foundation, 175 West Jackson Blvd., Suite 1500, Chicago, IL 60604-2702. Internet: http://www.nraef.org General information on hospitality careers may be obtained from: >- The International Council on Hotel, Restaurant, and Institutional Educa­ tion, 2613 North Parham Rd., 2nd Floor, Richmond, VA 23294. Internet: http://www.chrie.org Additional information about job opportunities in food service management may be obtained from local employers and from local offices of State employment services agencies.  Funeral Directors (0*NET 11-9061.00)  Significant Points •  Job opportunities should be good, particularly for those who also embalm; however, mortuary science gradu­ ates may have to relocate to find jobs.  •  Funeral directors are licensed by their State.  •  Advancement opportunities generally are best in larger funeral homes.  Nature of the Work Funeral practices and rites vary greatly among cultures and religions. Although the U.S. population is diverse, 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 final disposition of the remains. 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 efficient and appropriate services.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Funeral directors arrange the details and handle the logistics of funerals. They interview the family to learn what family members desire with regard to the nature of the funeral, the clergy members or other persons who will officiate, and the final disposition of the remains. Sometimes, the deceased leaves detailed instructions for his or her own funeral. Together with the family, funeral direc­ tors establish the location, dates, and times of wakes, memorial services, and burials. They arrange for a hearse to carry the body to the funeral home or mortuary. They also comfort the family and friends of the deceased. Funeral directors also prepare obituary notices and have them placed in newspapers, arrange for pallbearers and clergy, schedule the opening and closing of a grave with a representative of the cemetery, decorate and prepare the sites of all services, and provide transporta­ tion for the remains, mourners, and flowers between sites. They also direct preparation and shipment of remains for out-of-State burial. Most funeral directors also are trained, licensed, and practicing embalmers. Embalming is a sanitary, cosmetic, and preservative process through which the body is prepared for interment. If more than 24 hours elapse between death and interment, State laws usually require that the remains be refrigerated or embalmed. When embalming a body, funeral directors wash the body with germicidal soap and replace the blood with embalming fluid to preserve the tissues. They may reshape and reconstruct disfigured or maimed bodies using materials such as clay, cot­ ton, plaster of paris, and wax. They also may apply cosmetics to provide a natural appearance, dress the body and place it in a casket. Funeral directors maintain records such as embalming reports and itemized lists of clothing or valuables delivered with the body. In large 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, or funeral home, or at the gravesite or crematory. Services may be nonreligious, but because they often reflect the religion of the family, funeral directors must be familiar with the funeral and burial customs of many faiths, ethnic groups, and fraternal organizations. 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. Cremation, which is the burning of the body in a special furnace, is increasingly selected because it can be less expensive and is becom­ ing more appealing. Memorial services can be held anywhere, and at any time, sometimes months later when all relatives and friends can get together. Even when the remains are cremated, many people still want a funeral service. A funeral service followed by cremation need not be any differ­ ent from a funeral service followed by a burial. Usually, cremated remains are placed in some type of permanent receptacle, or urn, before being committed to a final resting place. The urn may be buried, 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, such as submitting papers to State authorities so that a for­ mal 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 pen­ sions, 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 ensuring 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.  Management, Business, and Financial Occupations Most funeral homes are small, family-run businesses, and the funeral directors are either owner-operators or employees of the operation. Funeral directors, therefore, are responsible for the success and the profitability of their businesses. Directors keep records of expenses, purchases, and services rendered; prepare and send invoices for services; prepare and submit reports for unemployment insurance; prepare Federal, State, and local tax forms; and prepare itemized bills for customers. Funeral directors increasingly are using computers for billing, bookkeeping, and marketing. Some are beginning to use the Internet to communicate with clients who are planning their funerals in advance, or to assist them by developing electronic obituaries and guestbooks. Directors strive to foster a cooperative spirit and friendly attitude among employees and a compassionate demeanor toward the families. Increasingly, funeral directors also are involved in helping individuals adapt to changes in their lives following a death, through aftercare services or support-group activities. 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 urns for families to purchase or rent.  Working Conditions Funeral directors often work long, irregular hours, and the oc­ cupation 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. Shiftwork sometimes is necessary because funeral home hours include evenings and weekends. In smaller funeral homes, working hours vary, but in larger homes employees usually work 8 hours a day, 5 or 6 days a week. Funeral directors occasionally come into contact with the remains of persons who had contagious diseases, but the possibility of infec­ tion is remote if strict health regulations are followed. To show proper respect and consideration for the families and the dead, funeral directors must dress appropriately. The profes­ sion usually requires short, neat haircuts and trim beards, if any, for men. Suits and ties for men and dresses for women are customary for a conservative look.  Training, Other Qualifications, and Advancement Funeral directors are licensed in all States. Licensing laws vary from State to State, but most require applicants to be 21 years old, have 2  49  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. Funeral directors who embalm must be licensed in all States, and some States license only those who embalm. In States that have separate licensing requirements, most people in the field obtain both licenses. Persons interested in a career as a funeral director should contact their State licensing board for specific requirements. College programs in mortuary science usually last from 2 to 4 years. The American Board of Funeral Service Education accredits about 50 mortuary science programs. A few community and junior colleges offer 2-year programs, and a few colleges and universities offer both 2-year and 4-year programs. Mortuary science programs include courses in anatomy, physiology, pathology, embalming tech­ niques, 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 writ­ ten communication, funeral service law, business law, and ethics. Many State and national associations offer continuing education programs designed for licensed funeral directors. These programs ad­ dress issues in communications, counseling, and management. More than 30 States have requirements that funeral directors receive con­ tinuing education credits to maintain their licenses. Apprenticeships must be completed under the direction of an ex­ perienced and licensed funeral director. Depending on State regula­ tions, apprenticeships last from 1 to 3 years and may be served before, during, or after mortuary school. Apprenticeships provide practical experience in all facets of the funeral service, from embalming to transporting remains. State board licensing examinations vary, but they usually consist of written and oral parts and include a demonstration of practical skills. Persons who want to work in another State may have to pass the examination for that State; however, some States have reciproc­ ity arrangements and will grant licenses to funeral directors from another State without further examination. High school students can start preparing for a career as a funeral director by taking courses in biology and chemistry and participat­ ing in public speaking or debate clubs. Part-time or summer jobs in funeral homes consist mostly of maintenance and cleanup tasks, such as washing and polishing limousines and hearses, but these tasks can help students become familiar with the operation of funeral homes. Important personal traits for funeral directors are composure, tact, and the ability to communicate easily with the public. Funeral directors also should have the desire and ability to comfort people in a time of sorrow. 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 direc­ tors eventually acquire enough money and experience to establish their own funeral home businesses.  Employment Funeral directors held about 30,000 jobs in 2004. Twenty percent were self-employed. Nearly all worked in the death care services industry.  Job Outlook  Funeral directors explain burial options and arrange details of funerals with clients.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Employment opportunities for funeral directors are expected to be good, particularly for those who also embalm. However, mortuary science graduates may have to relocate to find jobs. Employment of funeral directors is projected to increase more slowly than the average for all occupations through the year 2014,  50  Occupational Outlook Handbook  reflecting slow growth in the death care services industry, where funeral directors are employed. The need to replace funeral direc­ tors who retire or leave the occupation for other reasons will account for more job openings than will employment growth. Funeral directors are older, on average, than workers in most other occu­ pations and should be retiring in greater numbers between 2004 and 2014. In addition, some funeral directors leave the profession because of the long and irregular hours.  Earnings Median annual earnings for funeral directors were $45,960 in May 2004. The middle 50 percent earned between $35,880 and $60,860. The lowest 10 percent earned less than $26,470 and the top 10 percent earned more than $85,910. Salaries of funeral directors depend on the number of years of experience in funeral service, the number of services performed, the number of facilities operated, the area of the country, the size of the community, and the level of formal education. Funeral directors in large cities earn more than their counterparts in small towns and rural areas.  Related Occupations The job of a funeral director requires tact, discretion, and compas­ sion when dealing with grieving people. Others who need these qualities include social workers, psychologists, physicians and surgeons, and other health practitioners involved in diagnosis and treatment.  Sources of Additional Information For a list of accredited mortuary science programs and information on the funeral service profession, write to: >- The National Funeral Directors Association, 13625 Bishop’s Dr., Brook­ field, WI 53005. Internet: http://www.nfda.org  For information about college programs in mortuary science, scholarships, and funeral service as a career, contact: ► The American Board of Funeral Service Education, 38 Florida Ave., Portland, ME 04103. Internet: http://www.abfse.org/index.html  For information on specific State licensing requirements, contact the State’s licensing board.  Human Resources, Training, and Labor Relations Managers and Specialists (0*NET 11-3040.00, 11-3041.00, 11-3042.00, 11-3049.99, 13-1071.01, 13-1071.02, 13-1072.00,13-1073.00, 13-1079.99)  Significant Points •  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 wellrounded liberal arts education.  •  For many specialized jobs, previous experience is an asset; for more advanced positions, including those of managers, arbitrators, and mediators, it is essential.  •  Keen competition for jobs is expected because of the plentiful supply of qualified college graduates and experienced workers.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work Attracting the most qualified employees and matching them to the jobs for which they are best suited is significant for the success of any organization. However, many enterprises are too large to permit close contact between top management and employees. Human resources, training, and labor relations managers and spe­ cialists provide this connection. In the past, these workers have been associated with performing the administrative function of an organization, such as handling employee benefits questions or recruiting, interviewing, and hiring new staff in accordance with policies and requirements that have been established in conjunction with top management. Today’s human resources workers manage these tasks and, increasingly, consult top executives regarding strategic planning. They have moved from behind-the-scenes staff work to leading the company in suggesting and changing policies. Senior management is recognizing the significance of the human resources department to their financial success. In an effort to enhance morale and productivity, limit job turnover, and help organizations increase performance and improve business results, they also help their firms effectively use employee skills, provide training and development opportunities to improve those skills, and increase employees’ satisfaction with their jobs and work­ ing conditions. Although some jobs in the human resources field require only limited contact with people outside the office, dealing with people is an important part of the job. In a small organization, a human resources generalist may handle all aspects of human resources work, and thus require an extensive range of knowledge. The responsibilities of human re­ sources generalists can vary widely, depending on their employer’s needs. In a large corporation, the top human resources executive usually develops and manages human resources programs and policies. (Executives are included in the Handbook statement on top executives.) These policies usually are implemented by a direc­ tor or manager of human resources and, in some cases, a director of industrial relations. The director of human resources may supervise several depart­ ments, each headed by an experienced manager who most likely specializes in one human resources activity, such as employment, compensation, benefits, training and development, or employee relations. Employment and placement managers supervise the hiring and separation of employees and supervise various workers, includ­ ing equal employment opportunity specialists and recruitment specialists. Employment, recruitment, and placement specialists recruit and place workers. Recruiters maintain contacts within the community and may travel considerably, often to college campuses, to search for promis­ ing job applicants. Recruiters screen, interview, and occasionally test applicants. They also may check references and extend job offers. These workers must be thoroughly familiar with the orga­ nization and its human resources policies in order to discuss wages, working conditions, and promotional opportunities with prospective employees. They also must keep informed about equal employment opportunity (EEO) and affirmative action guidelines and laws, such as the Americans with Disabilities Act. EEO officers, representatives, or affirmative action coordinators handle EEO matters in large organizations. They investigate and resolve EEO grievances, examine corporate practices for possible violations, and compile and submit EEO statistical reports. Employer relations representatives, who usually work in government agencies, maintain working relationships with local employers and promote the use of public employment programs and services. Similarly, employment interviewers—whose many job titles include human resources consultants, human resources  Management, Business, and Financial Occupations  development specialists, and human resources coordinators—help to match employers with qualified jobseekers.  Compensation, benefits, and job analysis specialists conduct programs for employers and may specialize in specific areas such as position classifications or pensions. Job analysts, occasionally called position classifiers, collect and examine detailed information about job duties in order to prepare job descriptions. These descriptions ex­ plain the duties, training, and skills that each job requires. Whenever a large organization introduces a new job or reviews existing jobs, it calls upon the expert knowledge of the job analyst. Occupational analysts conduct research, usually in large firms. They are concerned with occupational classification systems and study the effects of industry and occupational trends upon worker relationships. They may serve as technical liaison between the firm and other firms, government, and labor unions. Establishing and maintaining a firm’s pay system is the 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 to see 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 insur­ ance and pension plans. Expertise in designing and administering benefits programs continues to take on importance as employerprovided 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 savings and thrift, profit-sharing, and stock ownership plans; health benefits might include long-term catastrophic illness in­ surance and dental insurance. Familiarity 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 designed to meet the needs of a changing workforce, such as parental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Benefits managers must keep abreast of changing Federal and State regulations and leg­ islation that may affect employee benefits. Employee assistance plan managers, also called employee welfare managers, are responsible for a wide array of programs covering occupational safety and health standards and practices; health promotion and physical fitness, medical examinations, and minor health treatment, such as first aid; plant security; publications; food service and recreation activities; carpooling and transportation programs, such as transit subsidies; employee suggestion systems; child care and elder care; and counseling services. Child care and elder care are increasingly significant because of growth in the number of dual-income households and the elderly population. Counseling may help employees deal with emotional disorders, alcoholism, or marital, family, consumer, legal, and financial problems. Some employers offer career coun­ seling as well. In large firms, certain programs, such as those dealing with security and safety, may be in separate departments headed by other managers. Training and development managers and specialists conduct and supervise training and development programs for employees. Increasingly, management recognizes that training offers a way of FRASER developing skills, enhancing productivity and quality of work, and Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  51  building worker loyalty to the firm, and most importantly, increasing individual and organizational performance to achieve business results. While training is widely accepted as an employee benefit and a method of improving employee morale, enhancing employee 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 generate 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 effectively for them. Training managers provide worker training either in the class­ room or onsite. This includes setting up teaching materials prior to the class, involving the class, and issuing completion certificates at the end of the class. They have the responsibility 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 skill. They help supervisors improve their interpersonal skills in order to deal effectively with employees. They may set up indi­ vidualized training plans to strengthen an employee’s existing skills or teach new ones. Training specialists in some companies set up leadership or executive development programs among employees in lower level positions. These programs are designed to develop leaders to replace those leaving the organization and as part of a succession 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 pro­ grams, training specialists function as case managers. 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 relations 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 managers and supervisors or conduct surveys. They also evaluate training effectiveness to ensure that the training employees receive, helps the organization meet its strategic business goals and achieve results. Depending on the size, goals, and nature of the organization, train­ ers may differ considerably in their responsibilities and in the methods they use. Training methods include on-the-job training; operating schools that duplicate shop conditions for trainees prior to putting them on the shop floor; apprenticeship training; classroom training; and electronic learning, which may involve interactive Internet-based training, multimedia programs, distance learning, satellite training, other computer-aided instructional technologies, videos, simulators, conferences, and workshops. An organization’s director of industrial relations forms labor policy, oversees industrial labor relations, negotiates collective bargaining agreements, and coordinates grievance procedures to handle complaints resulting from management disputes with union­ ized employees. The director of industrial relations also advises and collaborates with the director of human resources, other managers,  52  Occupational Outlook Handbook  and members of their staff, because all aspects of human resources policy—such as wages, benefits, pensions, and work practices—may be involved in drawing up a new or revised union contract. Labor relations managers and their staffs implement industrial 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 bargaining trends. The labor relations staff interprets and administers the contract with respect to grievances, wages and salaries, employee welfare, health care, pensions, union and management practices, and other contractual stipulations. As union membership continues to de­ cline in most industries, industrial relations personnel are working more often with employees who are not members of a labor union. Dispute resolution—attaining tacit or contractual agreements—has become increasingly significant as parties to a dispute attempt to avoid costly litigation, strikes, or other disruptions. Dispute resolution also has become more complex, involving employees, management, unions, other firms, and government agencies. Specialists involved in dispute resolution must be highly knowledgeable and experienced, and often report to the director of industrial relations. Conciliators, or mediators, advise and counsel labor and management to prevent and, when necessary, resolve disputes over labor agreements or other labor relations issues. Arbitrators, occasionally 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. Other emerging specialties include international human re­ sources 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 resources information, match job seekers with job openings, and handle other human resources matters.  Working Conditions Human resources work usually takes place in clean, pleasant, and comfortable office settings. Arbitrators and mediators may work out of their homes. Many human resources, training, and labor relations managers and specialists work a standard 35- to 40-hour week. However, longer hours might be necessary for some workers—for example, labor relations managers and specialists, arbitrators, and mediators—when contract agreements are being prepared and negotiated. ■—fs  Human resources workers handle employee benefits, recruiting, interviewing, and hiring and training personnel. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Although most human resources, training, and labor relations managers and specialists work in the office, some travel extensively. For example, recruiters regularly attend professional meetings and visit college campuses to interview prospective em­ ployees; arbitrators and mediators often must travel to the site chosen for negotiations.  Training, Other Qualifications, and Advancement The educational backgrounds of human resources, training, and labor relations managers and specialists vary considerably because of the diversity of duties and levels of responsibility. In filling entry-level jobs, many employers seek college graduates who have majored in hu­ man 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. Many colleges and universities have programs leading to a degree in personnel, human resources, or labor relations. Some offer degree programs in human resources administration or human resources management, training and development, or compensation and benefits. Depending on the school, courses leading to a career in human resources management may be found in departments of business administration, education, instructional technology, organizational de­ velopment, human services, communication, 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, business, and behavioral sciences is useful. Some jobs may require a more technical or specialized background in engineering, science, finance, or law, for example. Most prospective human resources specialists should take courses in compensation, recruitment, training and development, and performance appraisal, as well as courses in principles of management, organizational structure, and industrial psychology. Other relevant courses include business administra­ tion, public administration, psychology, sociology, political science, economics, and statistics. Courses in labor law, collective bargain­ ing, labor economics, labor history, and industrial psychology also provide a valuable background for the prospective labor relations specialist. As in many other fields, knowledge of computers and information systems also is useful. An advanced degree is increasingly important for some jobs. Many labor relations jobs require graduate study in industrial or labor relations. A strong background in industrial relations and law is highly desirable for contract negotiators, mediators, and arbitrators; in fact, many people in these specialties are lawyers. A background in law also is desirable for employee benefits man­ agers and others who must interpret the growing number of laws and regulations. A master’s degree in human resources, labor rela­ tions, or in business administration with a concentration in human resources management is highly recommended for those seeking general and top management positions. For many specialized jobs in the human resources field, previ­ ous experience is an asset; for more advanced positions, including those of managers as well as arbitrators and mediators, it is essential. Many employers prefer entry-level workers who have gained some experience through an internship or work-study program while in school. Human resources administration and human resources development require the ability to work with individuals as well as a commitment to organizational goals. This field also demands other skills that people may develop elsewhere—using computers, selling, teaching, supervising, and volunteering, among others. The field of­ fers clerical workers opportunities for advancement to professional positions. Responsible positions occasionally are filled by experi­ enced individuals from other fields, including business, government, education, social services administration, and the military.  Management, Business, and Financial Occupations 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 effectively. The growing diversity of the workforce requires that they work with or supervise people with various cultural backgrounds, levels of education, and experience. They must be able to cope with con­ flicting points of view, function under pressure, and demonstrate discretion, integrity, fair-mindedness, and a persuasive, congenial personality. The duties given to entry-level workers will vary, depending on whether the new workers have a degree in human resource manage­ ment, have completed an internship, or have some other type of hu­ man resources-related experience. Entry-level employees commonly learn the profession by performing administrative duties—helping to enter data into computer systems, compiling employee handbooks, researching information for a supervisor, or answering the phone and handling routine questions. Entry-level workers often enter formal or on-the-job training programs in which they learn how to classify jobs, interview applicants, or administer employee benefits. They then are assigned to specific areas in the human resources department to gain experience. Later, they may advance to a mana­ gerial position, supervising a major element of the human resources program—compensation or training, for example. Exceptional human resources workers may be promoted to direc­ tor of human resources or industrial relations, which can eventually lead to a top managerial or executive position. Others may join a consulting firm or open their own business. A Ph.D. is an asset for teaching, writing, or consulting work. Most organizations specializing in human resources offer classes intended to enhance the marketable skills of their members. Some organizations offer certification programs, which are signs of com­ petence and can enhance one’s advancement opportunities. For example, the International Foundation of Employee Benefit Plans confers a designation to persons who complete a series of collegelevel courses and pass exams covering employee benefit plans. The American Society for Training & Development Certification Institute offers certification; it requires passing a knowledge-based exam and successful work product. The Society for Human Resource Manage­ ment has two levels of certification; both require experience and a passing score on a comprehensive exam.  Employment Human resources, training, and labor relations managers and spe­ cialists held about 820,000 jobs in 2004. The following tabulation shows the distribution of jobs by occupational specialty; Training and development specialists........................................... 216,000 Employment, recruitment, and placement specialists................. 182,000 Human resources, training, and labor relations specialists, all other..................................................... 166,000 Human resources managers.......................................................... 157,000 Compensation, benefits, and job analysis specialist....................... 99,000 Human resources, training, and labor relations managers and specialists were employed in virtually every industry. About 21,000 specialists were self-employed, working as consultants to public and private employers. The private sector accounted for more than 8 out of 10 salaried jobs, including 11 percent in administrative and support services; 9 percent in professional, scientific, and technical services; 9 percent in manufacturing; 9 percent in health care and social assistance; and 9 percent in finance and insurance firms. Government employed 17 percent of human resources managers and specialists. They handled the recruitment, interview­ ing, job classification, training, salary administration, benefits,  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  53  employee relations, and other matters related to the Nation’s public employees.  Job Outlook The abundant supply of qualified college graduates and experienced workers should create keen competition for jobs. Overall employment of human resources, training, and labor relations managers and specialists is expected to grow faster than the average for all occupations through 2014. In addition to openings due to growth, many job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. Legislation and court rulings setting standards in various areas—occupational safety and health, equal employment oppor­ tunity, wages, health care, pensions, and family leave, among oth­ ers—will increase demand for human resources, 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-management disputes out of court. Additional job growth may stem from increasing demand for specialists in international human resources management and human resources information systems. Demand may be particularly strong for certain specialists. For example, employers are expected to devote greater resources to jobspecific training programs in response to the increasing complexity of many jobs, the aging of the workforce, and technological advances that can leave employees with obsolete skills. This should result in strong demand for training and development specialists. In addition, increasing efforts throughout industry to recruit and retain quality employees should create many jobs for employment, recruitment, and placement specialists. Among industries, firms involved in management, consulting, and employment services should offer many job opportunities, as businesses increasingly contract out 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 also should increase in firms that develop and administer complex employee benefits and compensation packages for other organizations. Demand for human resources, training, and labor relations managers and specialists also are governed by the staffing needs of the firms for which they work. A rapidly expanding business is likely to hire additional human resources workers—either as permanent employees or consultants—while a business that has experienced a merger or a reduction in its workforce will require fewer human resources workers. Also, as human resources management becomes increasingly important to the success of an organization, some small and medium-size businesses that do not have a human resources department may assign employees various human resources duties together with other unrelated responsibilities. In any particular firm, the size and the job du­ ties of the human resources staff are determined by the firm’s organizational philosophy and goals, skills of its workforce, pace of technological change, government regulations, collective bargaining agreements, standards of professional practice, and labor market conditions. Job growth could be limited by the widespread use of computer­ ized human resources information systems that make workers more productive. Like that of other workers, employment of human resources, training, and labor relations managers and specialists, particularly in larger firms, may be adversely affected by corporate downsizing, restructuring, and mergers.  54  Occupational Outlook Handbook  Earnings Annual salary rates for human resources workers vary according to occupation, level of experience, training, location, and size of the firm, and whether they are union members. Median annual earnings of compensation and benefits managers were $66,530 in May 2004. The middle 50 percent earned between $49,970 and $89,340. The lowest 10 percent earned less than $39,250, and the highest 10 percent earned more than $118,880. In May 2004, median annual earnings were $ 81,080 in the Manage­ ment companies and enterprises’ industry. Median annual earnings of training and development manag­ ers were $67,460 in May 2004. The middle 50 percent earned between $49,060 and $91,020. The lowest 10 percent earned less than $36,430, and the highest 10 percent earned more than $119,580. Median annual earnings of human resources managers, all other were $81,810 in May 2004. The middle 50 percent earned between $62,080 and $106,440. The lowest 10 percent earned less than $48,060, and the highest 10 percent earned more than $136,600. In May 2004, median annual earnings were $92,590, in the Manage­ ment companies and enterprises’ industry. Median annual earnings of employment, recruitment, and place­ ment specialists were $41,190 in May 2004. The middle 50 percent earned between $31,820 and $55,540. The lowest 10 percent earned less than $25,690, and the highest 10 percent earned more than $76,230. In May 2004, median annual earnings in the industries employing the largest numbers of employment, recruitment, and placement specialists were: Management, scientific, and technical consulting services ........ $52,800 Management of companies and enterprises................................. 46,780 Local government ........................................................................ 40,540 Employment services.................................................................... 37,780 State government ......................................................................... 35,390 Median annual earnings of compensation, benefits, and job analysis specialists were $47,490 in May 2004. The middle 50 percent earned between $37,050 and $59,860. The lowest 10 percent earned less than $30,030, and the highest 10 percent earned more than $74,650. In May 2004, median annual earnings in the industries employing the largest numbers of compensation, benefits, and job analysis specialists were: Local government ........................................................................ $51,430 Management of companies and enterprises.................................... 50,970 State government ........................................................................... 39,150 Median annual earnings of training and development spe­ cialists were $44,570 in May 2004. The middle 50 percent earned between $33,530 and $58,750. The lowest 10 percent earned less than $25,800, and the highest 10 percent earned more than $74,650. In May 2004, median annual earnings in the industries employing the largest numbers of training and development specialists were: Management of companies and enterprises.................................. $49,540 Insurance carriers.......................................................................... 47,300 Local government ........................................................................ 45,320 State government ......................................................................... 41,770 Federal Government...................................................................... 38,930 According to a 2005 salary survey conducted by the National As­ sociation of Colleges and Employers, bachelor’s degree candidates majoring in human resources, including labor relations, received starting offers averaging $36,967 a year.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  The average salary for human resources managers employed by the Federal Government was $71,232 in 2005; for employee rela­ tions specialists, $84,847; for labor relations specialists, $93,895; and for employee development specialists, $80,958. 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.  Related Occupations All human resources occupations are closely related. Other workers 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: >• Society for Human Resource Management, 1800 Duke St., Alexandria, VA 22314. Internet: http://www.shrm.org For information about careers in employee training and develop­ ment and certification, contact: >• American Society for Training &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: >• International Foundation of Employee Benefit Plans, 18700 W. Bluemound Rd., P.O. Box 69, Brookfield, WI 53008-0069. Internet: http://www.ifebp.org ► World at Work, 14040 N. Northsight Blvd., Scottsdale, AZ 85260. Internet: http://www.worldatwork.org For information about academic programs in labor and employ­ ment relations, write to: ► Labor and Employment Relations Association, University of Illinois at Urbana-Champaign, 121 Labor and Industrial Relations Bldg., 504 E. Armory Ave., Champaign, IL 61820. Intemet:http://www.lera.uiuc.edu Information about human resources careers in the health care industry is available from: >- American Society for Healthcare Human Resources Administra­ tion, One North Franklin, 31st Floor, Chicago, IL 60606. Internet: http://www.ashhra.org  Industrial Production Managers (0*NET 11-3051.00)  Significant Points •  While there is no standard preparation, a college degree is helpful.  •  Applicants with a college degree in industrial engi­ neering, management, or business administration, and particularly those with an undergraduate engineering degree and a master’s degree in business administration or industrial management, enjoy the best job prospects.  •  Employment of industrial production managers is expected to grow more slowly than average as over­ all employment in manufacturing declines; however, because production managers are so essential to the efficient operation of a plant, they have not been as af­ fected by efforts to flatten management structures.  Management, Business, and Financial Occupations  55  Nature of the Work Industrial production managers plan, direct, and coordinate the pro­ duction activities required to produce millions of goods every year in the United States. They make sure that production proceeds smoothly and stays within budget. Depending on the size of the manufacturing plant, industrial production managers may oversee the entire plant or just one area. One of the main responsibilities of the industrial production man­ ager is to oversee the production process, reducing costs wherever possible and making sure products are produced on time and are of good quality. They do this by analyzing the plant’s personnel and capital resources to select the best way of meeting the production goals. Industrial production managers may determine which ma­ chines will be used, whether new machines need to be purchased, whether overtime or extra shifts are necessary, and what the sequence of production 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. In recent years, traditional mass assembly lines have given way to “lean” production techniques, which gives managers more flexibility. In a traditional assembly line, each worker is 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 different product lines to minimize inventory levels and more quickly react to chang­ ing customer demands. Industrial production managers also monitor product standards and implement quality control programs. They make sure the fin­ ished product meets a certain level of quality, and if not, they try to find out what the problem is and find a solution. While traditional quality control programs reacted only to problems that reached a certain significant level, newer management techniques and programs, such as ISO 9000, Total Quality 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 better training programs or reorganize the manufacturing process, often based upon the suggestions of employee teams. If the 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. In particular, though, production managers work most closely with the heads of sales, procurement, and logistics. Sales managers relay the client’s needs and the price the client is willing to pay to the production depart­ ment, which must then fulfill the order. The logistics, or distribution department, handles the delivery of the goods, which often needs to be coordinated with the production department. The procure­ ment department orders the supplies that the production depart­ ment needs to make its products. It is also responsible for making sure that the inventories of supplies are maintained at their optimal levels in order for production to proceed without interruption. A breakdown in communications between the production manager and the procurement department can cause slowdowns and a failure to meet production schedules. Just-in-time production techniques have reduced inventory levels, making constant communication among the manager, suppliers, and procurement departments even more important.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Industrial production managers supervise all aspects of production.  Industrial production managers must keep abreast of new tech­ nology that can be used in the production process. They must be computer savvy as computers increasingly play an integral role in the manufacturing process and in the coordination among depart­ ments, suppliers, and clients.  Working Conditions 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 production data, and writing and reviewing reports. Most industrial production managers work more than 40 hours a week, especially when production deadlines must be met. In facilities that operate around-the-clock, managers often work late shifts and may be called at any hour to deal with emergencies. This could mean going to the plant to resolve the problem, regardless of the hour, and staying until the situation is under control. Dealing with production workers as well as superiors when working under the pressure of production deadlines or emergency situations can be stressful. Corporate restructuring has eliminated levels of management and support staff, thus shifting more responsibilities to production managers and compounding this stress.  Training, Other Qualifications, and Advancement Because of the diversity of manufacturing operations and job require­ ments, there is no standard preparation for this occupation. Some employers require a college degree, while other employers train promising apprentices or workers. However, most employers would prefer a college degree, even for those who have worked their way up through the ranks. Many industrial production managers have a college degree in business administration, management, industrial technology, or industrial engineering. Some are former produc­ tion-line supervisors who have been promoted and have taken employer-sponsored training classes. Although many employers prefer candidates with a business or engineering background, some companies hire well-rounded liberal arts graduates, who are willing to spend time in a production-related job. As production operations become more sophisticated, increas­ ing numbers of employers are looking for candidates with gradu­ ate degrees in industrial management or business administration.  56  Occupational Outlook Handbook  Combined with an undergraduate 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 sciences, which provide them with techniques and statistical formulas that can be used to maximize efficiency and improve quality. Companies also are placing greater importance on a candidate’s interpersonal skills. Because the job requires the ability to compromise, persuade, and negotiate, successful production manag­ ers must be well-rounded and have excellent communication skills. Those who enter the field directly from college or graduate school often are unfamiliar with the firm’s production process. As a result, they may spend their first few months in the company’s training program. These programs familiarize trainees with the production process, company policies, and the requirements of the job. In larger companies, they also may include assignments to other departments, such as purchasing and accounting. A number of companies hire college graduates as first-line supervisors and later promote them. Some industrial production managers have worked their way up through the ranks, perhaps after having worked as first-line supervisors. 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 companysponsored management and communication courses. In addition to formal training, industrial production managers must keep informed of new production technologies and manage­ ment practices. Many belong to professional organizations and attend trade shows at which new equipment is displayed; they also attend industry conferences and conventions at which changes in production methods and technological advances are discussed. Some take courses to become certified in various quality and management systems. Industrial production managers with a proven record of superior performance may advance to plant manager or vice president for manufacturing. Others transfer to jobs with more responsibilities at larger firms. Opportunities also exist for managers to become consultants. (For more information, see the statement on manage­ ment analysts elsewhere in the Handbook.)  Employment Industrial production managers held about 160,000 jobs in 2004. Almost all are employed in manufacturing industries, including the plastics product manufacturing, printing and related support activities, motor vehicle parts manufacturing, and semiconductor and other electronic component manufacturing industries. Production managers work in all parts of the country, but jobs are most plentiful in areas where manufacturing is concentrated.  those with an undergraduate engineering degree and a master’s degree in business administration or industrial management, will enjoy the best job prospects. Employers 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. Productivity gains that are occurring throughout the manufactur­ ing sector will also impact industrial production managers. With the increasing use of computers for scheduling, planning, and coordina­ tion among departments, their work is made much easier. In addition, more emphasis on quality in the production process has redistributed some of the production manager’s oversight responsibilities to su­ pervisors and workers on the production line.  Earnings Median annual earnings for industrial production managers were $73,000 in May 2004. The middle 50 percent earned between $55,700 and $94,850. The lowest 10 percent earned less than $43,660, and the highest 10 percent earned more than $123,010. Median annual earnings in the manufacturing industries employ­ ing the largest numbers of industrial production managers in May 2004 were: Management of companies and enterprises.................................. $90,140 Motor vehicle parts manufacturing............................................... 76,490 Printing and related support activities........................................... 69,210 ■Plastics product manufacturing..................................................... 66,880  Related Occupations Industrial production managers oversee production staff and equip­ ment, ensure that production goals and quality standards are being met, and implement company policies. Other managerial occupations with similar responsibilities are general and operations managers, construction managers, and sales managers. Occupations requiring comparable training and problem-solving skills are engineers, man­ agement analysts, and operations research analysts.  Sources of Additional Information For more information on industrial production management, con­ tact local manufacturers or schools with programs in industrial management.  Lodging Managers (Q*NET 11-9081.00)  Job Outlook Employment of industrial production managers is expected to grow more slowly than the average for all occupations through 2014, as overall employment in manufacturing declines. As more manu­ facturing plants move abroad and others are able to produce more with fewer people, there will be less need for industrial production managers. Also, new computerized machines are better able to con­ trol quality. However, because production managers are so essential to the efficient operation of a plant, they have not been as affected by efforts to flatten management structures. Nevertheless, this trend has led production managers to assume more responsibilities and has limited the creation of more employment opportunities. Despite slow growth, a number of jobs are expected to open due to the need to replace workers who will retire or who will transfer to other occupations. Applicants with a college degree in industrial engineering, management, or business administration, and particularly   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 the best job opportunities.  Nature of the Work A comfortable room, good food, and a helpful staff can make be­ ing away from home an enjoyable experience for both vacationing families and business travelers. While most lodging managers work in traditional hotels and motels, some work in other lodging estab­ lishments, such as camps, inns, boardinghouses, dude ranches, and  Management, Business, and Financial Occupations recreational resorts. In full-service hotels, lodging managers help their guests have a pleasant stay by providing many of the comforts of home, including cable television, fitness equipment, and voice mail, as well as specialized services such as health spas. For busi­ ness travelers, lodging managers often schedule available meeting rooms and electronic equipment, including slide projectors and fax machines. Lodging managers are responsible for keeping their establish­ ments efficient and profitable. In a small establishment with a lim­ ited staff, the manager may oversee all aspects of operations. How­ ever, large hotels may employ hundreds of workers, and the general manager usually is aided by a number of assistant managers assigned to the various departments of the operation. In hotels of every size, managerial duties vary significantly by job title. General managers have overall responsibility for the opera­ tion of the hotel. Within guidelines established by the owners of the hotel or executives of the hotel chain, the general manager sets room rates, allocates funds to departments, approves expenditures, and ensures expected standards for guest service, decor, housekeep­ ing, food quality, and banquet operations. Managers who work for chains also may organize and staff a newly built hotel, refurbish an older hotel, or reorganize a hotel or motel that is not operating successfully. In order to fill entry-level service and clerical jobs in hotels, some managers attend career fairs. Resident or hotel managers are responsible for the day-to-day operations of the property. In larger properties, more than one of these managers may assist the general manager, frequently dividing responsibilities between the food and beverage operations and the rooms or lodging services. At least one manager, either the general manager or a hotel manager, is on call 24 hours a day to resolve problems or emergencies. Assistant managers help run the day-to-day operations of the hotel. In large hotels, they may be responsible for activities such as personnel, accounting, office administration, marketing and sales, purchasing, security, maintenance, and pool, spa, or recreational facilities. In smaller hotels, these duties may be combined into one position. Assistant managers may adjust charges on a hotel guest’s bill when a manager is unavailable. An Executive Committee made up of a hotel’s senior managers advises the general manager, assists in setting hotel policy, coordi­ nates services that cross departmental boundaries, and collaborates on efforts to ensure consistent and efficient guest services throughout the hotel. The Committee may be comprised of the department heads for housekeeping, front office, food and beverage, security, sales and public relations, meetings and conventions, engineering and building maintenance, and human resources. Executive com­ mittee members bring a different perspective of guest service to the total management objective reflecting the unique expertise and training of their positions. Executive housekeepers ensure that guest rooms, meeting and banquet rooms, and public areas are clean, orderly, and well maintained. They also train, schedule, and supervise the work of housekeepers, inspect rooms, and order cleaning supplies. Front office managers coordinate reservations and room assign­ ments, as well as train and direct the hotel’s front desk staff. They ensure that guests are treated courteously, complaints and problems are resolved, and requests for special services are carried out. Front office managers may adjust charges posted on a customer’s bill. Convention services managers coordinate the activities of various departments in larger hotels to accommodate meetings, conventions, and special events. They meet with representatives of groups or organizations to plan the number of rooms to reserve, the desired configuration of the meeting space, and banquet services. During the meeting or event, they resolve unexpected problems and monitor   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  57  activities to ensure that hotel operations conform to the expectations of the group. Food and beverage managers oversee all food service operations maintained by the hotel. They coordinate menus with the Ex­ ecutive Chef for the hotel’s restaurants, lounges, and room service operations. They supervise the ordering of food and supplies, direct service and maintenance contracts within the kitchens and dining areas, and manage food service budgets. Catering managers arrange for food service in a hotel’s meeting and convention rooms. They coordinate menus and costs for ban­ quets, parties, and events with meeting and convention planners or individual clients. They coordinate staffing needs and arrange sched­ ules with kitchen personnel to ensure appropriate food service. Sales or marketing directors and public relations directors over­ see the advertising and promotion of hotel operations and functions, including lodging and dining specials and special events, such as holiday or seasonal specials. They direct the efforts of their staff to purchase advertising and market their property to organizations or groups seeking a venue for conferences, conventions, business meetings, trade shows, and special events. They also coordinate media relations and answer questions from the press. Human resources directors manage the personnel functions of a hotel, ensuring that all accounting, 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 development guidelines. Finance (or revenue) directors monitor room sales and reservations. In addition to overseeing accounting and cash-flow matters at the hotel, they also project occupancy levels, decide which rooms to discount and when to offer rate specials. 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, computers are used to order food, beverages, and supplies, as well as to prepare reports for hotel own­ ers and top-level managers. Managers work with computer specialists to ensure that the hotel’s computer system functions properly. Should the hotel’s computer system fail, managers must continue to meet the needs of hotel guests and staff.  Working Conditions Because hotels are open around the clock, night and weekend work is common. Many lodging managers work more than 40 hours per week,  ......  J  Lodging managers ensure that the work of all departments meets guests’ expectations.  58  Occupational Outlook Handbook  and may be called back to work at any time. Some managers of resort properties or other hotels where much of the business is seasonal have other duties on the property during the off-season or find work at other hotels or in other areas. Lodging managers experience the pressures of coordinating a wide range of activities. At larger hotels, they also carry the burden of managing a large staff and finding a way to satisfy guest needs while maintaining positive attitudes and employee morale. Conven­ tions and large groups of tourists may present unusual problems or require extended work hours. Moreover, dealing with irate guests can be stressful. The job can be particularly hectic for front office managers during check-in and check-out times. Computer failures can further complicate processing and add to frustration levels.  Training, Other Qualifications, and Advancement Hotels increasingly emphasize specialized training. Postsecondary training in hotel, restaurant, or hospitality management is preferred for most hotel management positions; however, a college liberal arts degree may be sufficient when coupled with related hotel experience or business education. Internships or part-time or summer work experience in a hotel are an asset to students seeking a career in hotel management. The experience gained and the contacts made with employers can greatly benefit students after graduation. Most degree programs include work-study opportunities. Community colleges, junior colleges, and many universities offer certificate or degree programs in hotel, restaurant, or hospi­ tality management leading to an associate, bachelor, or graduate degree. Technical institutes, vocational and trade schools, and other academic institutions also offer courses leading to formal recognition in hospitality management. In total, more than 800 educational facilities provide academic training for would-be lodg­ ing managers. Hotel management programs include instruction in hotel administration, accounting, economics, marketing, housekeep­ ing, food service management and catering, and hotel maintenance engineering. Computer training also is an integral part of hotel management training, due to the widespread use of computers in reservations, billing, and housekeeping management. 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 two-year program offered to high school juniors and seniors teaches management principles and leads to a professional certification called the “Cer­ tified Rooms Division Specialist.” Many colleges and universities grant participants credit towards a post-secondary degree in hotel management. Lodging managers must be able to get along with many different types of people, even in stressful situations. They must be able to solve problems and concentrate on details. Initiative, self-discipline, effective communication skills, and the ability to organize and direct the work of others also are essential for managers at all levels. Persons wishing to make a career in the hospitality industry may be promoted into a management trainee position sponsored by the hotel or a hotel chain’s corporate parent. Typically, trainees work as assistant managers and may rotate assignments among the hotel’s departments—front office, housekeeping, or food and beverage—to gain a wide range of experiences. Relocation to another property may be required to help round out the experience and to help grow a trainee into the position. Work experience in the hospitality industry at any level or in any segment, including summer jobs or part-time work in a hotel or restaurant, is good background for entering hotel management. Most employers require a bachelor’s degree with some education in busi­ ness and computer literacy, while some prefer a master’s degree for hotel management positions. However, employees who demonstrate   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  leadership potential and possess sufficient length or breadth of experience may be invited to participate in a management training program and advance to hotel management positions without the education beyond high school. Large hotel and motel chains may offer better opportunities for advancement than small, independently owned establish­ ments, but relocation every several years often is necessary for advancement. The large chains have more extensive career ladder programs and offer managers the opportunity to transfer to another hotel or motel in the chain or to the central office. Career advance­ ment can be accelerated by the completion of certification programs offered by various associations. These programs usually require a combination of course work, examinations, and experience. For example, outstanding lodging managers may advance to higher level manager positions. (For more information, see the material on top executives elsewhere in the Handbook.)  Employment Lodging managers held about 58,000 jobs in 2004. Self-employed managers—primarily owners of small hotels, motels, and inns—held about 45 percent of these jobs. Companies that manage hotels and motels under contract employed many managers.  Job Outlook Employment of lodging managers is expected to grow about as fast as the average for all occupations through 2014. Additional job openings are expected to occur as experienced managers transfer to other occupations or leave the labor force, in part because of the long hours and stressful working conditions. Job opportunities are expected to be best for persons with college degrees in hotel or hospitality management. Renewed business travel and domestic and foreign tourism will drive employment growth of lodging managers in full-service hotels. The numbers of economy-class rooms and extended-stay hotels also are expected to increase to accommodate leisure travelers and bargain-conscious guests. An increasing range of lodging accom­ modations is available to travelers, from economy hotels which offer clean, comfortable rooms and front desk services without costly extras such as restaurants and room service, to luxury and boutique inns that offer sumptuous furnishings and personal services. The accom­ modation industry is expected to continue to consolidate as lodging chains acquire independently owned establishments or undertake their operation on a contract basis. The increasing number of extended-stay hotels will moderate growth of manager jobs because these properties usually have fewer departments and require fewer managers. Also, these establishments often do not require a manager to be available 24 hours a day, instead assigning front desk clerks on duty at night some of the responsibilities previously reserved for managers. Additional demand for managers is expected in suite hotels, because some guests—especially business customers—are willing to pay higher prices for rooms with kitchens and suites that provide the space needed to conduct small meetings. In addition, large fullservice hotels—offering restaurants, fitness centers, large meeting rooms, and play areas for children, among other amenities—will continue to provide many trainee and managerial opportunities.  Earnings Median annual earnings of lodging managers were $37,660 in May 2004. The middle 50 percent earned between $28,640 and $51,030. The lowest 10 percent earned less than $22,680, while the highest 10 percent earned more than $72,160. Median annual earnings for lodging managers in traveler accommodations were $37,420. Salaries of lodging managers vary greatly according to their responsibilities and the segment of the hotel industry in which they  Management, Business, and Financial Occupations are employed, as well as the location and region where the hotel is located. Managers may earn bonuses of up to 25 percent of their basic salary in some hotels and also may be furnished with meals, parking, laundry, and other services. In addition to providing typi­ cal benefits, some hotels offer profit-sharing plans and educational assistance to their employees.  Related Occupations Other occupations concerned with organizing and directing a busi­ ness in which customer service is the cornerstone of their success include food service managers, gaming managers, sales worker supervisors, and property, real estate, and community association managers.  Sources of Additional Information For information on careers and scholarships in hotel management, contact >• American Hotel and Lodging Association, 1201 New York Ave. NW., Suite 600, Washington, DC 20005-3931. Information on careers in the lodging industry and professional development and training programs may be obtained from: > Educational Institute of the American Hotel and Lodging Association, 800 N. Magnolia Ave., Suite 1800, Orlando, FL 32853-1126. Internet: http://www.ei-ahla.org For information on educational programs in hotel and restaurant management, including correspondence courses, write to: >- International Council on Hotel, Restaurant, and Institutional Education, 2613 North Parham Rd., 2nd Floor, Richmond, VA 23294-4442. Internet: http://www.chrie.org  Medical and Health Services Managers (0*NET 11-9111.00)  Significant Points •  Rapid employment growth is projected; job opportuni­ ties will be especially good in offices of health practi­ tioners, general medical and surgical hospitals, home health care services, and outpatient care centers.  •  Applicants with work experience in health care and strong business and management skills likely will have the best opportunities.  •  Earnings are high, but long work hours are common.  •  A master’s degree is the standard credential for most positions, although a bachelor’s degree is adequate for some entry-level positions in smaller facilities and in health information management.  59  pared to deal with evolving integrated health care delivery systems, technological innovations, an increasingly complex regulatory envi­ ronment, restructuring of work, and an increased focus on preventive care. They will be called on to improve efficiency in health cafe facilities and the quality of the health care provided. Increasingly, medical and health services managers will work in organizations in which they must optimize efficiency of a variety of related ser­ vices—for example, those ranging from inpatient care to outpatient followup care. Large facilities usually have several assistant administrators to aid the top administrator and to handle daily decisions. Assistant administrators may direct activities in clinical areas such as nursing, surgery, therapy, medical records, or health information. (Managers in nonhealth areas, such as administrative services, computer and information systems, finance, and human resources, are not included in this statement. For information about them, see the statements on management occupations elsewhere in the Handbook.) 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 and also have a larger role in resident care. Clinical managers have training or experience in a specific clinical area and, accordingly, have more specific responsibilities than do generalists. For example, directors of physical therapy are experienced physical therapists, and most health information and medical record administrators have a bachelor’s degree in health information or medical record administration. Clinical managers establish and implement policies, objectives, and procedures for their departments; evaluate personnel and work; develop reports and budgets; and coordinate activities with other managers. Health information managers are responsible for the maintenance 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 and developments. In addition, as patient data become more fre­ quently used for quality management and in medical research, health information managers ensure that databases are complete, accurate, and available only to authorized personnel. In group medical practices, managers work closely with physicians. Whereas an office manager might handle business affairs in  S*  Nature of the Work Health care is a business and, like every other 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 supervise the delivery of health care. Medical and health services managers include specialists and generalists. Specialists are in charge of specific clinical departments or services, while generalists manage or help manage an entire facility or system. The structure and financing of health care are changing rapidly. Future medical and health services managers must be pre­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Medical and health services managersfrequently oversee personnel matters, billing and collection, budgeting, and the procurement of supplies.  60  Occupational Outlook Handbook  small medical groups, leaving policy decisions to the physicians them­ selves, larger groups usually employ a full-time administrator to help formulate business strategies and coordinate day-to-day business. A small group of 10 to 15 physicians might employ 1 administra­ tor 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 administrator and several assistants, each responsible for different areas. Medical and health services managers in managed care settings perform functions similar to those of their counterparts in large group practices, except that they 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 activi­ ties of a number of facilities in health systems. Such systems might contain both inpatient and outpatient facilities and offer a wide range of patient services.  Working Conditions Most medical and health services managers work long hours. Facil­ ities such as nursing care facilities and hospitals operate around the clock, and administrators and managers may be called at all hours to deal with problems. They also may travel to attend meetings or inspect satellite facilities. Some managers work in comfortable, private offices; others share space with other managers or staff. They may spend considerable time walking, to consult with coworkers.  Training, Other Qualifications, and Advancement Medical and health services managers must be familiar with management principles and practices. A master’s degree in health services administration, long-term care administration, health sciences, public health, public administration, or business admin­ istration 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. Physicians’ offices and some other facilities may substitute on-the-job experience for 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 2005, 70 schools had accredited programs leading to the master’s degree in health services ad­ ministration, according to the Commission on Accreditation of Healthcare Management Education. For persons 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 required 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 and a Registered Health Information Admin­ istrator (RHIA) certification from the American Health Informa­ tion Management Association. In 2005, there were 45 accredited bachelor’s programs in health information management according to the Commission on Accreditation for Health Informatics and Information Management Education. Some graduate programs seek students with undergraduate degrees in business or health administration; however, many gradu­ ate programs prefer students with a liberal arts or health profession background. Candidates with previous work experience in health   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  care also may have an advantage. Competition 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, marketing, accounting and budgeting, human resources administration, strategic planning, law and ethics, biostatistics or epidemiology, health economics, and health information systems. Some programs allow students to specialize in one type of facility—hospitals, nursing care facilities, mental health facilities, or medical groups. Other programs encourage a generalist approach to health administration education. New graduates with master’s degrees in health services admin­ istration may start as department managers or as staff. The level of the starting position varies with the experience 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 corporations, and consulting firms. Graduates with bachelor’s degrees in health administration usu­ ally begin as administrative assistants or assistant department heads in larger hospitals. They also may begin as department heads or as­ sistant administrators in small hospitals or nursing care facilities. All States and the District of Columbia require nursing care facility administrators to have a bachelor’s degree, pass a licens­ ing examination, complete a State-approved training program, and pursue continuing education. Some States also require licenses for administrators in assisted living facilities. A license is not required in other areas of medical and health services management. Medical and health services managers often are responsible for millions of dollars’ worth of facilities and equipment and hundreds of employees. To make effective decisions, they need to be open to dif­ ferent opinions and good at analyzing contradictory information. They must understand finance and information systems and be able to in­ terpret data. Motivating others to implement their decisions requires strong leadership abilities. Tact, diplomacy, flexibility, and com­ munication skills are essential because medical and health services managers spend most of their time interacting with others. Medical and health services managers advance by moving into more responsible and higher paying positions, such as assistant or associate administrator, department head, or CEO, or by moving to larger facilities. Some experienced managers also may become consultants or professors of health care management.  Employment Medical and health services managers held about 248,000 jobs in 2004. About 30 percent worked in private hospitals, and an­ other 16 percent worked in offices of physicians or in nursing care facilities. The remainder worked mostly in home health care services, Federal Government health care facilities, ambulatory fa­ cilities run by State and local governments, outpatient care centers, insurance carriers, and community care facilities for the elderly.  Job Outlook Employment of medical and health services managers is expected to grow faster than the average for all occupations through 2014, as the health care industry continues to expand and diversify. Job opportunities will be especially good in offices of health prac­ titioners, general medical and surgical hospitals, home health care services, and outpatient care centers. Applicants with work experience in the health care field and strong business and man­ agement skills should have the best opportunities. Competition for jobs at the highest management levels will be keen because of the high pay and prestige.  Management, Business, and Financial Occupations Managers in all settings will be needed to improve quality and efficiency of health care while controlling costs, as insurance companies and Medicare demand higher levels of accountability. Managers also will be needed to computerize 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 retention, 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 2004-14 projection period. 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 utilization of clinics and other outpatient care sites. Despite relatively slow employment growth, a large num­ ber of new jobs will be created because of the industry’s large size. Medical and health services managers with experience in large facilities will enjoy the best job opportunities, as hospitals become larger and more complex. 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 sectors, especially as medical technologies improve. Demand in medical group practice manage­ ment will grow as medical group practices become larger and more complex. Managers with specialized experience in a particular field, such as reimbursement, should have good opportunities. Medical and health services managers also will be employed by health care management companies that provide management services to hospitals and other organizations, as well as to specific departments such as emergency, information management systems, managed care contract negotiations, and physician recruiting.  Earnings Median annual earnings of medical and health services managers were $67,430 in May 2004. The middle 50 percent earned between $52,530 and $88,210. The lowest 10 percent earned less than $41,450, and the highest 10 percent earned more than $117,990. Median annual earnings in the industries employing the largest numbers of medical and health services managers in May 2004 were as follows: Federal Government...................................................................... $87,200 General medical and surgical hospitals........................................ 71,280 Offices of physicians..................................................................... 61,320 Nursing care facilities................................................................... 60,940 Home health care services............................................................ 60,320 Earnings of medical and health services managers vary by type and size of the facility, as well as by level of responsibility. For example, the Medical Group Management Association reported that, in 2004, median salaries for administrators were $72,875 in practices with 6 or fewer physicians, $95,766 in practices with 7 to 25 physi­ cians, and $132,955 in practices with 26 or more physicians. According to a survey by Modem Healthcare magazine, median annual compensation in 2004 for hospital administrators of selected clinical departments was $76,800 in respiratory care, $81,100 in physical therapy, $87,700 in home health care, $88,800 in labora­ tory services, $90,200 in long-term care, $93,500 in medical imag­ ing/diagnostic radiology, $94,400 in rehabilitation services, $95,200 in cancer treatment facilities, $96,200 in cardiology, $102,800 in nursing services, and $113,200 in pharmacies. Salaries also varied according to size of facility and geographic region. According to a survey by the Professional Association of Health Care Office Management, total 2004 median compensation for office managers in specialty physicians’ practices was $72,047 in  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  61  gastroenterology, $66,946 in dermatology, $66,207 in cardiology, $64,543 in ophthalmology, $63,801 in obstetrics and gynecology, $62,545 in orthopedics, $58,595 in pediatrics, $52,211 in internal medicine, $50,924 in psychiatry, and $50,049 in family practice.  Related Occupations Medical and health services managers have training or experience in both health and management. Other occupations requiring knowledge of both fields are insurance underwriters and social and community service managers.  Sources of Additional Information Information about undergraduate and graduate academic programs in this field is available from: > Association of University Programs in Health Administration, 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: >- Commission on Accreditation of Healthcare Management Educa­ tion, 2000 North 14th St., Suite 780, Arlington, VA 22201. Internet: http://www.cahmeweb.org For information about career opportunities in health care man­ agement, contact: >- American College of Healthcare Executives, One N. Franklin St., Suite 1700, Chicago, IL 60606-4425. 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. lntemet: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 80112-5306. Internet: http://www.mgma.org For information about medical and health care office managers, contact: >• Professional Association of Health Care Office Management, 461 East Ten Mile Rd., Pensacola, FL 32534-9712. For information about career opportunities in health information management, contact: >■ American Health Information Management Association, 233 N. Michigan Ave., Suite 2150, Chicago, IL 60601-5800. Intemet: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 de­ grees in business administration, real estate, or related fields and with professional designations.  •  Good speaking, writing, computer, and financial skills, as well as an ability to tactfully deal with people, are essential.  •  More than half of property, real estate, and community association managers are self-employed.  Nature of the Work Buildings can be homes, stores, or offices to those who use them. To businesses and investors, properly managed real estate is a source of income and profits; to homeowners, it is a way to preserve and enhance resale values. Property, real estate, and community  62  Occupational Outlook Handbook  association managers maintain and increase the value of real estate investments. Property and real estate managers oversee the performance of income-producing commercial or residential proper­ ties and ensure that real estate investments achieve their expected revenues. Community association managers manage the common property and services of condominiums, cooperatives, and planned communities through their homeowners’ or community 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 homeowners’ 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 financial operations of the property, ensuring that rent is collected and that mortgages, taxes, insurance premiums, payroll, and maintenance bills are paid on time. In community associations, although homeowners pay no rent and pay their own real estate taxes and mortgages, com­ munity association managers must collect association dues. Some property managers, called asset property managers, supervise the preparation of financial statements and periodically report to the owners on the status of the property, occupancy rates, expiration dates of leases, and other matters. Often, property managers negotiate contracts for janitorial, security, groundskeeping, trash removal, and other services. When contracts are awarded competitively, managers solicit bids from sev­ eral 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 specialists for repairs that cannot be handled by regular property maintenance staff. In addition to fulfilling these duties, property managers must understand and comply with provisions of legislation, such as the Americans with Disabilities Act and the Federal Fair Housing Amendment Act, as well as local fair housing laws. They must en­ sure 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, onsite managers routinely inspect the grounds, facilities, and equipment to determine whether repairs or maintenance is 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 manag­ ers also are responsible for enforcing the terms of rental or lease agreements, such as rent collection, parking and pet restrictions, and termination-of-lease procedures. Other important duties of onsite managers include keeping accurate, up-to-date records of income and expenditures from property operations and submitting regular expense reports to the asset property manager or owners. Property managers who do not work onsite act as a liaison be­ tween the onsite manager and the owner. They also market vacant space to prospective tenants through the use of a leasing agent or by advertising or other means, and they establish rental rates in accordance with prevailing local economic conditions. Some property and real estate managers, often called real estate asset managers, act as the property owners’ agent and adviser for the property. They plan and direct the purchase, development, and disposition of real estate on behalf of the business and investors.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 take several factors into consideration, such as property values, taxes, zoning, population growth, transportation, and traffic volume and patterns. Once a site is selected, they negotiate contracts for the purchase or lease of the property, securing the most beneficial terms. Real estate asset managers 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. In many respects, the work of community association managers parallels that of property managers. They collect monthly assess­ ments, prepare financial statements and budgets, negotiate with contractors, and help to resolve complaints. In other respects, however, the work of these managers differs from that of other resi­ dential property and real estate managers. Community association managers interact with homeowners and other residents on a daily basis. Hired by the volunteer board of directors of the association, they administer the daily affairs, and oversee the maintenance, of property and facilities that the homeowners own and use jointly through the association. They also assist the board and owners in complying with association and government rules and regulations. Some associations encompass thousands of homes and employ their own onsite staff and managers. In addition to administering the associations’ financial records and budget, managers may be  The perfect site,  mi  / ’ ' ■: j  Property, real estate, and community association managers are responsible for landscaping and parking areas.  Management, Business, and Financial Occupations 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 pro­ posed changes or improvements by homeowners to their properties, to make sure that they comply with community guidelines.  Working Conditions The offices of most property, real estate, and community associa­ tion managers are clean, modern, and well lighted. However, many managers spend a major portion of their time away from their desks. Onsite managers in particular may spend a large portion of their workday away from their offices, 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 on a daily basis when contractors are doing major repair or renovation work. Real estate asset managers may spend time away from home while traveling to company real estate holdings or searching for properties to acquire. Property, real estate, and community association managers often must attend evening meetings with residents, property owners, community association boards of directors, or civic groups. Not surprisingly, many managers put in long workweeks, especially before financial and tax reports are due and before board and an­ nual meetings. Some apartment managers are required to live in the apartment complexes where they work so that they are available to handle any emergency that occurs, even when they are off duty. They usually receive compensatory time off for working nights or weekends. Many apartment managers receive time off during the week so that they are available on weekends to show apartments to prospective residents.  Training, Other Qualifications, and Advancement Most employers prefer to hire college graduates for property management positions. Entrants with degrees in business admin­ istration, accounting, finance, real estate, public administration, or related fields are preferred, but those with degrees in the liberal arts also may qualify. Good speaking, writing, computer, and financial skills, as well as an ability to deal tactfully with people, are essential in all areas of property management. Many people enter property management as onsite managers of apartment buildings, office complexes, or community associations or as employees of property management firms or community association management companies. As they acquire experience working under the direction of a property manager, they may advance to positions greater responsibility at larger properties. Those who excel as onsite managers often transfer to assistant property manager positions, in which they can acquire experience handling a broad range of property management responsibilities. Previous employment as a real estate sales agent may be an asset to onsite managers because it provides experience that is useful in showing apartments or office space. In the past, those with back­ grounds in building maintenance 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 on administrative, financial, and communication abilities for managerial jobs. Although many people entering jobs such as assistant property manager do so by having previously gained onsite management experience, employers increasingly are hiring inexperienced college graduates with bachelor’s or master’s degrees in business administra­ tion, accounting, finance, or real estate for these positions. Assistants   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  63  work closely with a property manager and learn how to prepare budgets, analyze insurance coverage and risk options, market property to prospective tenants, and collect overdue rent payments. In time, many assistants advance to property manager positions. 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 properties at a time. As their careers advance, they gradually are entrusted 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, homeowners 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 manage­ ment of older properties requiring renovation or more frequent repairs. Some experienced managers open their own property management firms. Persons 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 handling people, and good at analyzing 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. 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, related job experience, and a satisfactory score on a written examination leads to certification, or the formal award of a professional designation, by the sponsoring association. (Some organiza­ tions offering such programs are listed as sources of additional information at the end of this statement.) In addition to seeking these qualifications, some associations require their members to adhere to a specific code of ethics. In a few States, community association managers must be licensed. Managers of public housing subsidized by the Federal Govern­ ment are required to be certified, but many property, real estate, and community association managers who work with all types of prop­ erty choose to earn a professional designation voluntarily, because it represents formal recognition of their achievements and status in the occupation. Real estate asset managers who buy or sell property are required to be licensed by the State in which they practice.  Employment Property, real estate, and community association managers held about 361,000 jobs in 2004. More that one-third worked for real estate agents and brokers, lessors of real estate, or property manage­ ment firms. Others worked for real estate development companies, government agencies that manage public buildings, and corporations with extensive holdings of commercial properties. More than half of property, real estate, and community association managers were self-employed.  64  Occupational Outlook Handbook  Job Outlook Employment of property, real estate, and community association managers is projected to increase about as fast as the average for all occupations through the year 2014. In addition to job growth, a number of openings are expected to occur as managers transfer to other occupations or leave the labor force. Opportunities should be best for those with a college degree in business administration, real estate, or a related field and for those who attain a professional designation. Job growth among onsite property managers in commercial real estate is expected to accompany the projected expansion of the real estate and rental and leasing industry. An increase in the Nation’s stock of apartments, houses, and offices also should require more property managers. Developments of new homes increasingly are being organized with community or homeowners’ associations that provide community services and oversee jointly owned common areas requiring professional management. To help properties be­ come more profitable or to enhance the resale values of homes, more commercial and residential property owners are expected to place their investments in the hands of professional managers. The changing demographic composition of the population also should create more jobs for property, real estate, and community association managers. The number of older people will grow during the 2004-14 projection period, increasing the need for various types of suitable housing, such as assisted-living facilities and retirement communities. Accordingly, demand will rise for property and real estate managers to operate these facilities—especially those indi­ viduals who have a background in the operation and administrative aspects of running a health unit.  Earnings Median annual earnings of salaried property, real estate, and com­ munity association managers were $39,980 in May 2004. The middle 50 percent earned between $27,190 and $59,360 a year. The lowest 10 percent earned less than $ 18,510, and the highest 10 percent earned more than $89,840 a year. Median annual earnings of salaried prop­ erty, real estate, and community association managers in the largest industries that employed them in 2004 were as follows: Local government......................................................................... $51,980 Offices of real estate agents and brokers...................................... 40,000 Activities related to real estate...................................................... 38,370 Lessors of real estate..................................................................... 34,300 Many resident apartment managers and onsite association man­ agers receive the use of an apartment as part of their compensation package. Managers often are reimbursed for the use of their personal vehicles, and managers employed in land development often receive a small percentage of ownership in the projects that they develop.  Related Occupations Property, real estate, and community association managers plan, organize, staff, and manage the real estate operations of businesses. Workers who perform similar functions in other fields include administrative services managers, education administra­ tors, food service managers, lodging managers, medical and health services managers, real estate brokers and sales agents, and urban and regional 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 property management, contact: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  >• 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: >• Building Owners and Managers Institute, 1521 Ritchie Hwy., Arnold, MD 21012. Internet: http://www.bomi-edu.org For information on careers and professional designation and certification programs in residential property management and community association management, contact: >- Community Associations Institute, 225 Reinekers Ln., Suite 300, Alex­ andria, VA 22314. Internet: http://www.caionline.org > National Board of Certification for Community Association Manag­ ers, 225 Reinekers Lane, Suite 310, Alexandria, VA 22314. Internet: http://www.nbccam.org  Purchasing Managers, Buyers, and Purchasing Agents (0*NET 11-3061.00, 13-1021.00, 13-1022.00, 13-1023.00)  Significant Points  • •  • •  Forty-three percent are employed in wholesale trade or manufacturing establishments. Some firms promote qualified employees to these positions, while other employers recruit college graduates; regardless of academic preparation, new employees need 1 to 5 years to learn the specifics of their employer’s business. Overall employment growth is expected to be slower than average. Opportunities should be best for those with a college degree.  Nature of the Work Purchasing managers, buyers, and purchasing agents make up a key component of a firm’s supply chain. They buy the goods and services the company or institution needs to either resell to cus­ tomers or for the establishment’s own use. Wholesale and retail buyers purchase goods for resale, such as clothing or electronics and purchasing agents buy goods and services for use by their own company or organization such as raw materials for manufacturing or office supplies. Purchasing agents and buyers offarm products purchase goods such as grain, Christmas trees, and tobacco for further 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 possible cost to their companies. In order to accomplish these tasks successfully, purchasing managers, buyers, and pur­ chasing agents study sales records and inventory levels of current stock, identify foreign and domestic suppliers, and keep abreast of changes affecting both the supply of, and demand for, needed products and materials. In large industrial organizations, a distinction often is drawn between the work of a buyer or purchasing agent and that of a pur­ chasing 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. Purchasing agents usually track market conditions, price trends, and futures markets. Purchas­ ing managers usually handle the more complex or critical purchases  and may supervise a group of purchasing agents handling other goods and services. Whether a person is titled purchasing manager, buyer, or purchasing agent depends more on specific industry and employer practices than on specific job duties. Purchasing specialists employed by government agencies or manufacturing firms usually are called purchasing directors, man­ agers, or agents; or contract specialists. These workers acquire materials, parts, machines, supplies, services, and other inputs to the production of a final product. Some purchasing managers specialize in negotiating and supervising supply contracts, and are called con­ tract or supply managers. Purchasing agents and managers obtain items ranging from raw materials, fabricated parts, machinery, and office supplies to construction services and airline tickets. Often, purchasing specialists in government place solicitations for services and accept bids and offers through the Internet. Government pur­ chasing agents and managers must follow strict laws and regulations in their work, in order to avoid any appearance of impropriety. To be effective, purchasing specialists must have a working technical knowledge of the goods or services to be purchased. Purchasing specialists who buy finished goods for resale are employed by wholesale and retail establishments, where they com­ monly are known as buyers or merchandise managers. Wholesale and retail buyers are an integral part of a complex system of distri­ bution and merchandising that caters to the vast array of consumer needs and desires. Wholesale buyers purchase goods directly from 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 deter­ mine which products their establishment will sell. Therefore, it is essential that they have the ability to predict what will appeal to consumers. They must constantly stay informed of the latest trends, because failure to do so could jeopardize profits and the reputa­ tion 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 anticipate consumer buying patterns. Buyers working for large and medium-sized firms usually specialize in acquiring one or two lines of merchandise, whereas buyers work­ ing for small stores may purchase the establishment’s complete inventory. The use of private-label merchandise and the consolidation of buying departments have increased the responsibilities of retail buyers. Private-label merchandise, produced for a particular retailer, requires buyers to work closely with vendors to develop and obtain the desired product. The downsizing and consolidation of buying departments increases the demands placed on buyers because, although the amount of work remains unchanged, there are fewer people to accomplish it. The result is an increase in the workloads and levels of responsibility for all. Many merchandise managers assist in the planning and imple­ mentation of sales promotion programs. Working with merchandise executives, they determine the nature of the sale and purchase items accordingly. Merchandise managers may work with advertising personnel to create an ad campaign. For example, they may deter­ mine in which media the advertisement will be placed—newspapers, direct mail, television, or some combination of all three. In addition, merchandise managers often visit the selling floor to ensure that goods are properly displayed. Buyers 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 and checking shipments. Digitized fororders FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations  65  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 inven­ tories so any delays in the supply chain can shut down production and cost the firm its customers and reputation. Purchasing profes­ sionals 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 company 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 supplier is capable of delivering the desired goods or services on time, in the correct quantities without sacri­ ficing 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 supplier and firms together through the Internet. Purchasing professionals can gain instant access to the specifi­ cations 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, customization, 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 professionals because it allows purchasers to consolidate their supply bases around fewer suppliers. In today’s global economy purchasing 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 industries. For example, manufacturing companies increasingly involve workers in this occupation at most stages of product development because of their ability to forecast a part’s or material’s cost, availability, and suitability for its intended purpose. Furthermore, potential problems with the supply of materials may be avoided by consulting the pur­ chasing department in the early stages of product design. Purchasing specialists often work closely with other employees in their own organization when deciding on purchases, an arrangement  Wm..  j  Purchasing managers, buyers, and purchasing agents are a key link in a firm’s supply chain.  66  Occupational Outlook Handbook  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 involving the quality of purchased goods with quality assurance engineers and produc­ tion supervisors, or mention shipment problems to managers in the receiving department.  Working Conditions Most purchasing managers, buyers, and purchasing agents work in comfortable offices. They frequently work more than the standard 40-hour week, because of special sales, conferences, or production deadlines. Evening and weekend work also is common, before holiday and back-to-school seasons for those working in retail trade. Consequently, many retail firms discourage the use of vaca­ tion time during peak periods. Buyers and merchandise managers often work under great pressure. Because wholesale and retail stores are so competitive, buyers need physical stamina to keep up with the fast-paced nature of their work. Many purchasing managers, buyers, and purchasing agents travel at least several days a month. Purchasers for worldwide manufactur­ ing companies and large retailers, as well as buyers of high fashion, may travel outside the United States.  Training, Other Qualifications, and Advancement Qualified persons may begin as trainees, purchasing clerks, expedit­ ers, junior buyers, or assistant buyers. Retail and wholesale firms prefer to hire applicants who have a college degree and who are familiar with the merchandise they sell and with wholesaling and retailing practices. Some retail firms promote qualified employees to assistant buyer positions; others recruit and train college graduates as assistant buyers. Most employers use a combination of methods. Educational requirements tend to vary with the size of the organization. Large stores and distributors prefer applicants who have completed a bachelor’s degree program with a business emphasis. Many manufacturing firms put yet a greater emphasis on formal training, preferring applicants 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 employers’ business. Training periods vary in length, with most lasting 1 to 5 years. In wholesale and retail estab­ lishments, most trainees begin by selling merchandise, supervising sales workers, checking invoices on material received, and keeping track of stock. As they progress, retail trainees are given increased buying-related responsibilities. In manufacturing, new purchasing employees often are enrolled in company training programs and spend a considerable amount of time learning about their firm’s operations and purchasing practices. They work with experienced purchasers to learn about commodities, prices, suppliers, and markets. In addition, they may be assigned to the production planning department to learn about the material require­ ments system and the inventory system the company uses to keep production and replenishment functions working smoothly. Purchasing managers, buyers, and purchasing agents must know how to use both word processing and spreadsheet software, as well as the Internet. Other important qualities include the ability to analyze technical data in suppliers’ proposals; good communication, negotiation, and mathematical skills; knowledge of supply-chain management; and the ability to perform financial analyses. Persons who wish to become wholesale or retail buyers should be good at planning and decisionmaking and have, an interest in merchandising. Anticipating consumer preferences and ensuring   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  that goods are in stock when they are needed requires resourcefulness, good judgment, and self-confidence. Buyers must be able to make decisions quickly and to take risks. Marketing skills and the ability to identify products that will sell also are very important. Employers often look for leadership ability, too, because buyers spend a large portion of their time supervising assistant buyers and dealing with manufacturers’ representatives and store executives. Experienced buyers may advance by moving to a department that manages a larger volume or by becoming a merchandise manager. Oth­ ers may go to work in sales for a manufacturer or wholesaler. 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 man­ ager, or director of materials management. At the top levels, duties may overlap with other management functions, such as production, planning, logistics, and marketing. Regardless of industry, continuing education is essential for advancement. Many purchasers participate in seminars offered by professional societies and take college courses in supply management. Professional certification is becoming increasingly important, especially for those just entering the occupation. In private industry, recognized marks of experience and profes­ sional competence are the Accredited Purchasing Practitioner (APP) and Certified Purchasing Manager (CPM) designations, conferred by the Institute for Supply Management, and the Certified Purchasing Professional (CPP) and Certified Professional Purchasing Man­ ager (CPPM) designations, conferred by the American Purchasing Society. In Federal, State, and local government, the indications of professional competence are Certified Professional Public Buyer (CPPB) and Certified Public Purchasing Officer (CPPO), conferred by the National Institute of Governmental Purchasing. Most of these certifications are awarded only after work-related experience and education requirements are met, and written or oral exams are successfully completed.  Employment Purchasing managers, buyers, and purchasing agents held about 520,000 jobs in 2004. Forty-three percent worked in the wholesale trade and manufacturing industries, and another twelve percent worked in retail trade. The remainder worked mostly in service establish­ ments, such as hospitals, or different levels of government. A small number were self-employed. The following tabulation shows the distribution of employment by occupational specialty: Purchasing agents, except wholesale, retail, and farm products .. 273,000 Wholesale and retail buyers, except farm products .................... 156,000 Purchasing managers.................................................................... 75,000 Purchasing agents and buyers, farm products.............................. 16,000  Job Outlook Overall employment of purchasing managers, buyers, and purchasing agents is expected to grow slower than the average for all occupa­ tions through the year 2014. Offsetting some declines for purchasing workers in the manufacturing sector will be increases in the services sector. Companies in the services sector, which have typically made purchases on an ad hoc basis, are beginning to realize that centralized purchasing offices may be more efficient. Also, many purchasing agents are now charged with procuring services that were tradition­ ally done in-house in the past, such as computer and IT (information technology) support in addition to traditionally contracted services such as advertising. 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  Management, Business, and Financial Occupations number of purchases being made electronically through the internet and electronic data interchange (EDI). Despite slower-than-average growth, some job openings will result from the need to replace workers who transfer to other occupations or leave the labor force. 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 increasing the productivity of purchasing managers. The Internet also allows both large and small companies to bid on contracts. Exclusive sup­ ply 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, also is projected to grow more slowly than average. 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 increase more slowly than average, limited by 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 routine transactions with complex and critical purchases still being handled in-house. Finally, employment of purchasing agents and buyers, farm products, also is projected to increase more slowly than average, as overall growth in agricultural industries decreases and retailers in the grocery-related industries consolidate. Persons who have a bachelor’s degree in business should have the best chance of obtaining a buyer position in wholesale or retail trade or within government. A bachelor’s degree, combined with industry experience and knowledge of a technical field, will be an advantage for those interested in working for a manufacturing or industrial company. Government agencies and larger companies usually require a master’s degree in business or public administra­ tion for top-level purchasing positions.  Earnings Median annual earnings of purchasing managers were $72,450 in May 2004. The middle 50 percent earned between $54,150 and $94,970 a year. The lowest 10 percent earned less than $41,300, and the highest 10 percent earned more than $121,600 a year. Median annual earnings for purchasing agents and buyers, farm products were $43,720 in May 2004. The middle 50 percent earned between $33,100 and $59,420 a year. The lowest 10 percent earned less than $25,260, and the highest 10 percent earned more than $82,330 a year. Median annual earnings for wholesale and retail buyers, except farm products, were $42,230 in May 2004. The middle 50 percent earned between $31,550 and $57,010 a year. The lowest 10 percent earned less than $24,380, and the highest 10 percent earned more than $79,340 a year. Median annual earnings in the industries employ­ ing the largest numbers of wholesale and retail buyers, except farm products, in May 2004 were: Management of companies and enterprises................................. $49,770 Grocery and related product wholesalers..................................... 43,910 Wholesale electronic markets and agents and brokers................ 43,860 Building material and supplies dealers......................................... 35,850 Grocery stores............................................................................... 32,790 Median annual earnings for purchasing agents, except wholesale, retail, and farm products, were $47,680 in May 2004. The middle  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  67  50 percent earned between $36,760 and $62,600 a year. The lowest 10 percent earned less than $29,640, and the highest 10 percent earned more than $79,710 a year. Median annual earnings in the in­ dustries employing the largest numbers of purchasing agents, except of wholesale, retail, and farm products, in May 2004 were: Federal executive branch and United States Postal Service ....... $63,940 Aerospace product and parts manufacturing................................ 55,820 Management of companies and enterprises................................. 53,750 Local government ........................................................................ 44,730 General medical and surgical hospitals........................................ 37,090 Purchasing managers, buyers, and purchasing agents receive the same benefits package as other workers, including vacations, sick leave, life and health insurance, and pension plans. In addition to receiving standard benefits, retail buyers often earn cash bonuses based on their performance and may receive discounts on merchan­ dise bought from their employer.  Related Occupations Workers in other occupations who need a knowledge of market­ ing 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. ► Institute for Supply Management, P.O. Box 22160, Tempe, AZ 85285­ 2160. Internet: http://www.ism.ws > National Institute of Governmental Purchasing, Inc., 151 Spring St., Suite 300, Herndon, VA 20170-5223. Internet: http://www.nigp.org  Top Executives (Q*NET 11-1011.01, 11-1011.02, 11-1021.00)  Significant Points  •  Keen competition is expected because the prestige and high pay attract a large number of qualified 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 executives vary as widely as the nature of their responsibilities.  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 commissioner—all formulate policies and direct the operations of businesses 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  68  Occupational Outlook Handbook  overseen by a board of directors. In a large corporation, the chief executive officer meets frequently with subordinate executives to ensure that operations are conducted in accordance with these policies. The chief executive officer of a corporation retains overall accountability; however, a chiefoperating officer may be delegated several responsibilities, including the authority to oversee execu­ tives who direct the activities of various 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 ac­ countable for the success or failure of the enterprise, and the chief executive officer reports to the board. The nature of other high-level executives’ responsibilities depends on the size of the organization. In large organizations, the duties of such executives are highly specialized. Some managers, for instance, are responsible for the overall performance of one aspect of the organization, 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 occupations are discussed elsewhere in this section of the Handbook.) In smaller organizations, 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 supervisory duties. Chieffinancial officers direct the organization’s financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm’s expansion, and deal with mergers and acquisitions. Chief information officers are responsible for the overall tech­ nological direction of their organizations. They are increasingly involved in the strategic business plan of a firm as part of the executive team. To perform effectively, they also need knowl­ edge of administrative procedures, such as budgeting, 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 specialists, information technology workers, and support personnel to carry out specific parts of the projects. They supervise the work of these employees, review their output, and establish administrative procedures and policies. Chief information officers also provide organizations with the vision to master information 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 ap­ point 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 important functions, such as meeting with staff and board members to de­ termine the level of support for proposed programs. In addition, they often nominate citizens to boards and commissions, encour­ age business investment, and promote economic development in their communities. To do 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 coordi­ nate the operations of companies or public and private sector organizations. Their duties include formulating policies, man­ aging daily operations, and planning the use of materials and human resources, but are too diverse and general in nature to be classified in any one area of management or administration, such  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Top executives devise strategies and formulate policies to ensure that objectives are met.  as personnel, purchasing, or administrative services. In some organizations, the duties of general and operations managers may overlap the duties of chief executive officers. In addition to being responsible for the operational success of a company, top executives also are increasingly being held ac­ countable 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.  Working Conditions Top executives typically have spacious offices and numerous support staff. General managers in large firms or nonprofit organizations usually have comfortable offices 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 confer­ ences provide an opportunity to meet with prospective 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; de­ pending on the organization, this may mean earning higher profits, providing better service, or attaining fundraising and charitable goals. Executives in charge of poorly performing organizations or departments usually find their jobs in jeopardy.  TVaining, Other Qualifications, and Advancement The formal education and experience of top executives vary as widely as the nature of their responsibilities. Many top executives have a bachelor’s or higher degree in business administration or liberal arts. College presidents typically have a doctorate in the field in which they originally taught, and school superintendents often have a master’s degree in education administration. (For information on lower-level managers in educational services, see the Handbook statement on education administrators.) A brokerage  Management, Business, and Financial Occupations office manager needs a strong background in securities and finance, and department store executives generally 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 back­ ground related to their jobs. For example, a health commissioner might have a graduate degree in health services administration or business administration. (For information on lower-level manag­ ers in health services, see the Handbook statement on medical and health services managers.) Many top executive positions are filled from within the organization by promoting experienced, lower-level managers when an opening occurs. In industries such as retail trade or transportation, for instance, it is possible for individuals without a college degree to work their way up within the company and become managers. However, many companies prefer that their top executives have specialized back­ grounds and, therefore, hire individuals who have been managers in other organizations. Top executives must have highly developed personal skills. An analytical mind able to quickly assess large amounts of information and data is very important, as is the ability to consider and evalu­ ate the relationships between numerous factors. Top executives also must be able to communicate clearly and persuasively. Other qualities criti cal for managerial success include leadership, self­ confidence, motivation, decisiveness, flexibility, sound business judgment, and determination. Advancement may be accelerated by participation in company training programs that impart a broader knowledge of company policy and operations. Managers also can help their careers by becoming familiar with the latest developments in management techniques at national or local training programs sponsored by various industry and trade associations. Managers who have ex­ perience in a particular field, such as accounting or engineering, may attend executive development programs to facilitate their promotion to an even higher level. Participation in conferences and seminars can expand knowledge of national and international issues influencing the organization and can help the participants develop a network of useful contacts. 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 2.3 million jobs in 2004. Employment by detailed occupation was distributed as follows: General and operations managers............................................... 1,807,000 Chief executives.......................................................................... 444,000 Legislators................................................................................... 66,000 Top executives are found in every industry, but service-providing industries, including government, employ 8 out of 10.  69  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. 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 opportunities. In an increasingly global economy, experience in international economics, marketing, information systems, and knowledge of several languages also may be beneficial. Employment of top executives—including chief executives and general and operations managers—is expected to grow about as fast as the average for all occupations through 2014. Because top managers are essential to the success of any organization, their jobs are unlikely to be automated or to be eliminated through corporate restructuring—trends that are expected to adversely affect employ­ ment of lower-level managers. Projected employment growth of top executives over the 2004-14 period varies by industry. For example, employment growth is expected to be much faster than average in professional, scientific, and technical services and in administrative and support services. However, employment is projected to decline in some manufacturing industries.  Earnings 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 corpora­ tion can earn significantly more than a counterpart in a small firm. Median annual earnings of general and operations managers in May 2004 were $77,420. The middle 50 percent earned between $52,420 and $ 118,310. Because the specific responsibilities of general and operations managers vary significantly within industries, earn­ ings also tend to vary considerably. Median annual earnings in the industries employing the largest numbers of general and operations managers in May 2004 were: Computer systems design and related services.......................... $117,730 Management of companies and enterprises............................... 99,670 Building equipment contractors................................................. 83,080 Depository credit intermediation............................................... 76,060 Local government....................................................................... 68,590 Median annual earnings of chief executives in May 2004 were $140,350; although chief executives in some industries earned considerably more. Salaries vary substantially by type and level of responsibilities and by industry. According to a 2005 survey by Abbott, Langer, and Associates, the median income of chief executive officers in the nonprofit sector was $88,006 in 2005, but some of the highest paid made more than $700,000. In addition to salaries, total compensation often includes stock options, dividends, and other performance bonuses. The use of executive dining rooms and company aircraft and cars, expense allowances, and company-paid insurance premiums and physical examinations also are among benefits commonly enjoyed by top executives in private industry. A number of chief executive of­ ficers also are provided with company-paid club memberships and other amenities.  Job Outlook  Related Occupations  Keen competition is expected for top executive positions because the prestige and high pay attract a large number of qualified applicants. Because this is a large occupation, numerous openings will occur each year as executives transfer to other positions, start  Top executives plan, organize, direct, control, and coordinate the oper­ ations of an organization and its major departments or programs. The members of the board of directors and lower-level managers also are involved in these activities. Many other management occupations   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  70  Occupational Outlook Handbook  have similar responsibilities; however, they are concentrated in specific industries or are responsible for a specific department within an organization. A few examples are administrative services man­ agers; 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.  Sources of Additional Information For a variety of information on top executives, including educational programs, certification programs, and job listings, contact:  >• American Management Association, 1601 Broadway, 6th Floor, New York, NY 10019. Internet: http://www.amanet.org >- International Public Management Association for Human Resources, 1617 Duke St., Alexandria, VA 22314. Internet: http://www.ipma-hr.org >- National Management Association, 2210 Arbor Blvd., Dayton, OH 45439. Internet: http://www.nmal.org For information on executive financial management careers and certification, contact: > Financial Executives International, 200 Campus Dr., P.O. Box 674, Florham Park, NJ 07932-0674. Intemet:http://www.fei.org ► Financial Management Association International, College of Business Administration, University of South Florida, 4202 East Fowler Ave., BSN 3331, Tampa, FL 33620-5500. Intemet:http://www.fma.org  Business and Financial Operations Occupations Accountants and Auditors (Q*NET 13-2011.01, 13-2011.02)  Significant Points  •  Most jobs require at least a bachelor’s degree in ac­ counting or a related field.  •  Overall job opportunities should be favorable; jobseek­ ers who obtain professional recognition through certi­ fication or licensure, a master’s degree, proficiency in accounting and auditing computer software, or special­ ized expertise will have the best opportunities  •  An increase in the number of businesses, changing financial laws and regulations, and greater scrutiny of company finances will drive faster-than-average growth of accountants and auditors.  Nature of the Work 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 perform these vital functions by offer­ ing an increasingly wide array of business and accounting services, including public, management, and government accounting, as well as internal auditing, to their clients. Beyond carrying out the funda­ mental tasks of the occupation—preparing, analyzing, and verifying financial documents in order to provide information to clients—many accountants now are required to possess a wide range of knowledge and skills. Accountants and auditors are broadening the services they offer to include budget analysis, financial and investment planning, information technology consulting, and limited legal services. Specific job duties vary widely among the four major fields of accounting: public, management, and 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 on tax matters, such as advising companies about the tax advantages 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 ac­ counting and data-processing systems, and the selection of controls to safeguard assets. Still others audit clients’ financial statements andfor inform investors and authorities that the statements have been Digitized FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  correctly prepared and reported. Public accountants, many of whom are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms. Some public accountants specialize in forensic accounting—in­ vestigating and interpreting white-collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and possibly criminal financial transactions, includ­ ing money laundering by organized criminals. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques in order to determine whether an activity is illegal. Many forensic accountants work closely with law enforce­ ment personnel and lawyers during investigations and often appear as expert witnesses during trials. In response to recent accounting scandals, new Federal legisla­ tion 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 re­ sources, technology, investment banking, or legal matters, although accountants may still advise on tax issues, such as establishing a tax shelter. Accountants may still advise other clients in these areas or may provide advice within their own firm. Management accountants—also called cost, managerial, 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. 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. Accountants employed by Federal, State, and local governments guarantee that revenues are received and expenditures are made in accordance with laws and regulations. Those employed by the Federal Govern­ ment may work as Internal Revenue Service agents or in financial management, financial institution examination, or budget analysis and administration. Internal auditors verify the accuracy of their organization’s inter­ nal records and check for mismanagement, waste, or fraud. Internal auditing is an increasingly important area of accounting and auditing.  Management, Business, and Financial Occupations Internal auditors examine and evaluate their firms’ financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are adequate to protect against fraud and waste. They also review company operations, eval­ uating their efficiency, effectiveness, and compliance with corporate policies and procedures, laws, and government regulations. There are many types of highly specialized auditors, such as electronic data-processing, environmental, engineering, legal, insurance pre­ mium, bank, and health care auditors. As computer systems make information timelier, internal auditors help managers to base their decisions on actual data, rather than personal observation. Internal auditors also may recommend controls for their organization’s computer system, to ensure the reliability of the system and the integrity of the data. Computers are rapidly changing the nature of the work of most accountants and auditors. With the aid of special software pack­ ages, accountants summarize transactions in standard formats used by financial records and organize data in special formats employed in financial analysis. These accounting packages greatly reduce the amount of tedious manual work associated with data management and recordkeeping. Computers enable accountants and auditors to be more mobile and to use their clients’ computer systems to extract information from databases and the Internet. As a result, a growing number of accountants and auditors with extensive com­ puter skills are specializing in correcting problems with software or in developing software to meet unique data management and analytical needs. Accountants also are beginning to perform more technical duties, such as implementing, controlling, and auditing systems and networks, developing technology plans, and analyzing and devising budgets. Increasingly, accountants also are assuming the role of a personal financial advisor. 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 a response to clients’ demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are  Accountants and auditors prepare, analyze, and verify financial Digitized for information FRASER for individuals and businesses. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  71  restricted from providing these services to clients whose financial statements they also prepare. (See financial analysts and personal financial advisors elsewhere in the Handbook.)  Working Conditions Most accountants and auditors work in a typical office setting. Self-employed accountants may be able to do part of their work at home. Accountants and auditors employed by public accounting firms and government agencies may travel frequently to perform audits at branches of their firm, clients’ places of business, or gov­ ernment facilities. Most accountants and auditors generally work a standard 40-hour week, but many work longer hours, particularly if they are selfemployed and have numerous clients. Tax specialists often work long hours during the tax season.  Training, Other Qualifications, and Advancement Most accountant and auditor positions require at least a bachelor’s degree in accounting or a related field. Beginning accounting and auditing positions in the Federal Government, for example, usually require 4 years of college (including 24 semester hours in 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 admin­ istration with a concentration in accounting. Previous experience in accounting or auditing can help an applicant get a job. Many colleges offer students an opportunity to gain experience through summer or part-time internship programs conducted by public accounting or business firms. In addition, practical knowledge of computers and their applications in ac­ counting and internal auditing is a great asset for jobseekers in the accounting field. Professional recognition through certification or licensure pro­ vides a distinct advantage in the job market. CPAs are licensed by a State Board of Accountancy. The vast majority of States require CPA candidates to be college graduates, but a few States substitute a number of years of public accounting experience for a college degree. As of early 2005, on the basis of recommendations made by the American Institute of Certified Public Accountants (AICPA), 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. Another five States have adopted similar legislation that will become effective between 2006 and 2009. Colorado, Delaware, New Hampshire, and Vermont are the only States that do not require 150 semester hours. In response to this trend, many schools have altered their curricula accordingly, with most programs offering master’s degrees as part of the 150 hours, so 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 prepared by the AICPA. The 2-day CPA examination is rigorous, and only about one-quarter of those who take it each year pass every part they attempt. Candidates are not required to pass all four parts at once, but most States require candidates to pass at least two parts for partial credit and to complete all four sections within a certain period. The CPA exam is now computerized and is offered quar­ terly at various testing centers throughout the United States. Most States also require applicants for a CPA certificate to have some accounting experience. The AICPA also offers members with valid CPA certificates the option to receive any or all of the Accredited in Business Valuation (ABV), Certified Information Technology Professional (CITP),  72  Occupational Outlook Handbook  or Personal Financial Specialist (PFS) designations. CPA’s with these designations may claim a certain level of expertise in the nontraditional areas in which accountants are practicing ever more frequently. The ABV designation requires a written exam, as well as the completion of a minimum of 10 business valuation projects that demonstrate a candidate’s experience and competence. The CITP requires payment of a fee, a written statement of intent, and the achievement of a set number of points awarded for business experience and education. Those who do not meet the required number of points may substitute a written exam. Candidates for the PFS designation also must achieve a certain level of points, based on experience and education, and must pass a written exam and submit references. Nearly all States require CPAs and other public accountants to complete a certain number of hours of continuing professional 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. Accountants and auditors also can seek to obtain other forms of credentials from professional societies on a voluntary basis. Voluntary certification can attest to professional compe­ tence in a specialized field of accounting and auditing. It also can certify that a recognized level of professional competence has been achieved by accountants and auditors who have acquired some skills on the job, without the formal education or public ac­ counting work experience needed to meet the rigorous standards required to take the CPA examination. The Institute of Management Accountants (IMA) confers the Certified Management Accountant (CMA) designation upon applicants who complete a bachelor’s degree or who attain a minimum score or higher on specified graduate school entrance exams. Applicants, who must have worked at least 2 years in management accounting, also must pass a four-part examination, agree to meet continuing education requirements, and comply with standards of professional conduct. The CMA exam provides an in-depth measure of competence in areas such as financial state­ ment analysis, working-capital policy, capital structure, valuation issues, and risk management. The CMA program is administered by the Institute of Certified Management Accountants, an affiliate of the IMA. Graduates from accredited colleges and universities who have worked for 2 years as internal auditors and have passed a four-part examination may earn the Certified Internal Auditor (CIA) designa­ tion from the Institute of Internal Auditors (IIA). The IIA recently implemented three new specialty designations: Certification in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), and Certified Financial Services Auditor (CFSA). Requirements are similar to those of the CIA. The Infor­ mation Systems Audit and Control Association confers the Certified Information Systems Auditor (CISA) designation upon candidates who pass an examination and have 5 years of experience auditing information systems. Auditing or data-processing experience and a college education may be substituted for up to 2 years of work experience in this program. Accountants and auditors may hold multiple designations. For instance, an internal auditor might be a CPA, CIA, and CISA. The Accreditation Council for Accountancy and Taxation, a satellite organization of the National Society of Public Accountants, confers 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. Candidates for the ABA must pass an exam; candidates for the ATA, ATP, and ECS   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  must complete the required coursework and pass an exam. Often, a practitioner will hold multiple licenses and designations. The Association of Government Accountants grants the Certified Government Financial Manager (CGFM) designation for accoun­ tants, auditors, and other government financial personnel at the Federal, State, and local levels. Candidates must have a minimum of a bachelor’s degree, 24 hours of study in financial management, and 2 years’ experience in government and must pass a series of three exams. The exams cover topics in governmental environment; governmental accounting, financial reporting, and budgeting; and financial management and control. Persons planning a career in accounting should have an aptitude for mathematics and be able to analyze, compare, and interpret facts and figures quickly. They must be able to clearly communicate the results of their work to clients and managers both verbally and in writing. Accountants and auditors must be good at working with people, as well as with business systems and computers. At a mini­ mum, accountants should be familiar with basic accounting software packages. Because financial decisions are made on the basis of their statements and services, accountants and auditors should have high standards of integrity. Capable accountants and auditors may advance rapidly; those having inadequate academic preparation may be assigned routine jobs and find promotion difficult. Many graduates ofjunior colleges or business or correspondence schools, as well as bookkeepers and accounting clerks who meet the education and experience require­ ments set by their employers, can obtain junior accounting positions and advance to positions with more responsibilities by demonstrating their accounting skills on the job. Beginning public accountants usually start by assisting with work for several clients. They may advance to positions with more 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 positions in man­ agement accounting or internal auditing in private firms. Management accountants often start as cost accountants, junior internal auditors, or trainees for other accounting positions. As they rise through the organization, they may advance to accounting manager, chief cost accountant, budget director, or manager of in­ ternal auditing. Some become controllers, treasurers, financial vice presidents, chief financial officers, or corporation presidents. Many senior corporation executives have a background in accounting, internal auditing, or finance. In general, public accountants, management accountants, and inter­ nal auditors have much occupational mobility. Practitioners often shift into management accounting or internal auditing from public account­ ing, 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.  Employment Accountants and auditors held about 1.2 million jobs in 2004. They worked throughout private industry and government, but 1 out of 4 wage and salary accountants worked for accounting, tax preparation, bookkeeping, and payroll services firms. Approximately 1 out of 10 accountants or auditors was self-employed. Many accountants and auditors are unlicensed management ac­ countants, internal auditors, or government accountants and auditors; however, a large number are licensed CPAs. Most accountants and auditors work in urban areas, where public accounting firms and central or regional offices of businesses are concentrated. Some individuals with backgrounds in accounting and auditing are full-time college and university faculty; others teach part time while working as self-employed accountants or as accountants for private  Management, Business, and Financial Occupations industry or government. (See teachers—postsecondary elsewhere in the Handbook.)  Job Outlook Employment of accountants and auditors is expected to grow faster than the average for all occupations through the year 2014. An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation. As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information devel­ oped by accountants and auditors regarding costs, expenditures, and taxes will increase as well. An increased need for accountants and auditors will arise from changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial events. The growth of international business also has led to more demand for accounting expertise and services related to international trade and accounting rules, as well as to international mergers and acquisitions. These trends should create more jobs for accountants and auditors. As a result of accounting scandals at several large corporate companies, Congress passed legislation 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 com­ pany’s chief executive personally responsible for falsely reporting financial information. These changes should lead to increased scrutiny of company finances and accounting procedures and should create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly. In order to ensure that finances comply with the law before public accountants conduct audits, management accountants and internal auditors increasingly will be needed to dis­ cover and eliminate fraud. Also, in an effort to make government agencies more efficient and accountable, demand for government accountants should increase. Increased awareness of financial crimes such as embezzlement, bribery, and securities fraud will increase the demand for forensic accountants, to detect illegal financial activity by individuals, com­ panies, 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 tracking down financial criminals easier, thus increasing the ease with which, and likelihood that, foren­ sic accountants will discover their crimes. As success rates of inves­ tigations grow, demand also will grow for forensic accountants. The changing role of accountants and auditors also will spur job growth, although this growth will be limited as a result of financial scandals. In response to demand, some accountants were offering more financial management and consulting services as they assumed a greater advisory role and developed more sophisticated accounting systems. Because Federal legislation now prohibits accountants from providing nontraditional services to clients whose books they audit, opportunities for accountants to offer such services could be limited. However, accountants will still be able to advise on other financial matters for clients that are not publicly traded companies and for nonaudit clients, but growth in these areas will be slower than in the past. Also, due to the increasing popularity of tax preparation firms and computer software, accountants will shift away from tax   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  73  preparation. As computer programs continue to simplify some ac­ counting-related tasks, clerical staff will increasingly handle many routine calculations. Overall, job opportunities for accountants and auditors should be favorable. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs declined; however, enrollment is slowly beginning to grow again as more students become attracted to the profession because of the attention from the accounting scandals. Those who earn a CPA should have excellent job prospects. However, many accounting graduates are instead pursuing other certifications, such as the CMA and CIA, so job prospects may not be as favorable in management account­ ing and internal auditing as in public accounting. 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. In the aftermath of the accounting scandals, professional certification is even more important in order to ensure that accountants’ credentials and ethics are sound. Proficiency in accounting and auditing computer software, or expertise in specialized areas such as international business, specific industries, or current legislation, may be helpful in land­ ing certain accounting and auditing jobs. In addition, employers increasingly are seeking applicants with strong interpersonal and communication skills. Because many accountants work on teams with others from different backgrounds, they must be able to communicate accounting and financial information clearly and concisely. Regardless of one’s qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms.  Earnings Median annual wage and salary earnings of accountants and auditors were $50,770 in May 2004. The middle half of the occupation earned between $39,890 and $66,900. The top 10 percent of accountants and auditors earned more than $88,610, and the bottom 10 percent earned less than $32,320. In May 2004, median annual earnings in the industries employing the largest numbers of accountants and auditors were as follows: Federal executive branch and United States Postal Service........ $56,900 Accounting, tax preparation, bookkeeping and payroll services ................................................................................... 53,870 Management of companies and enterprises................................. 52,260 Local government......................................................................... 47,440 State government.......................................................................... 43,400 According to a salary survey conducted by the National As­ sociation of Colleges and Employers, bachelor’s degree candidates in accounting received starting offers averaging $43,269 a year in 2005; master’s degree candidates in accounting were offered $46,251 initially. According to a 2005 salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, accountants and auditors with up to 1 year of experience earned between $28,250 and $45,000 a year. Those with 1 to 3 years of experience earned between $ 33,000 and $52,000. Senior accountants and auditors earned between $40,750 and $69,750, man­ agers between $48,000 and $90,000, and directors of accounting and auditing between $64,750 and $200,750. The variation in salaries reflects differences in size of firm, location, level of education, and professional credentials.  74  Occupational Outlook Handbook  In the Federal Government, the starting annual salary for junior accountants and auditors was $24,677 in 2005. Candidates who had a superior academic record might start at $30,567, while applicants with a master’s degree or 2 years of professional experience usually began at $37,390. Beginning salaries were slightly higher in selected areas where the prevailing local pay level was higher. Accountants employed by the Federal Government in nonsupervisory, supervisory, and managerial positions averaged $74,907 a year in 2005; auditors averaged $78,890.  Appraisers and Assessors of Real Estate (0*NET 13-2021.01 and 13-2021.02)  Significant Points  •  Related Occupations Accountants and auditors design internal control systems and analyze financial data. Others for whom training in accounting is valuable include budget analysts; cost estimators; loan officers; financial analysts and personal financial advisors; tax examiners, collectors, and revenue agents; bill and account collectors; and bookkeep­ ing, accounting, and auditing clerks. Recently, accountants have assumed the role of management analysts and are involved in the design, implementation, and maintenance of accounting software systems. Others who perform similar work include computer programmers, computer software engineers, and computer support specialists and systems administrators.  • •  •  Appraisers and assessors must meet licensing and/or certification requirements which vary by State, but gen­ erally include specific training requirements, a period of work as a trainee, and passing one or more examina­ tions. Although no specific degree is required to enter the occupation, most have at least a bachelor’s degree. Nearly 4 out of 10 are self-employed; salaried assessors worked primarily in local government, while salaried appraisers worked mainly for real estate firms. Employment is expected to grow faster than average.  Nature of the Work Sources of Additional Information Information on accredited accounting programs can be obtained from: >- AACSB International—Association to Advance Collegiate Schools of Business, 111 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 Information on CPA licensure requirements by State may be obtained from: >■ National Association of State Boards ofAccountancy, 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: >- Institute of Management Accountants, 10 Paragon Dr., Montvale, NJ 07645-1718. Internet: http://www.imanet.org Information on the Accredited in Accountancy, Accredited Busi­ ness Accountant, Accredited Tax Advisor, or Accredited Tax Preparer designation may be obtained from: ► Accreditation Council for Accountancy and Taxation, 1010 North Fairfax St., Alexandria, VA 22314.-1574 Internet: http://www.acatcredentials.org Information on careers in internal auditing and the CIA designa­ tion may be obtained from: ► The Institute of Internal Auditors, 247 MaitlandAve., Altamonte Springs, FL 32701-4201. Internet: http://www.theiia.org Information on careers in information systems auditing and the CISA designation may be obtained from: >- Information Systems Audit and Control Association, 3701 Algonquin Rd., Suite 1010, Rolling Meadows, IL 60008. Internet: http://www.isaca.org Information on careers in government accounting and the CGFM designation may be obtained from: ► Association of Government Accountants, 2208 Mount Vernon Ave., Alexandria, VA 22301. Internet: http://www.agacgfm.org Information on obtaining positions as an accountant or auditor with the Federal Government is available from the Office of Per­ sonnel Management through USAJOBS, the Federal Government’s official 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 interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not tollfree, and charges may result.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Appraisers and assessors of real estate estimate the value of real property for a variety of purposes, such as to assess property tax, to determine a sales price, or to determine the amount of a mortgage that might be granted on a property. They may be called on to deter­ mine the value of any type of real estate, ranging from farmland to a major shopping center, although they often specialize in appraising or assessing only a certain type of real estate such as residential buildings or commercial properties. Assessors determine the value of all properties in a locality for property tax purposes whereas ap­ praisers appraise properties one at a time for a variety of purposes, such as to determine what a good sale price would be for a home or to settle an estate or aid in a divorce settlement. Valuations of all types of real property are conducted using similar methods, regardless of the type of property or who employs the ap­ praiser or assessor. Appraisers and assessors work in localities they are familiar with so they have a knowledge of any environmental or other concerns that may affect the value of a property. They note any unique characteristics of the property 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 visiting the property, the appraiser or assessor will determine the fair value of the property by taking into consideration such things as comparable home sales, lease records, location, previous appraisals, and income potential. They will then put all of their research and observations together in a detailed report, stating not only the value of the parcel but the precise reasoning and methodology of how they arrived at the estimate. Appraisers have independent clients and focus solely on valuing one property at a time. They primarily work on a client-to-client 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 generally only appraise property used for commercial purposes, such as stores or hotels. Residential appraisers focus on appraising homes or other residences and only value those that house 1 to 4 families. Other appraisers have a general practice and value any type of real property.  Management, Business, and Financial Occupations  Assessors predominately work for local governments and are responsible for valuing properties so a tax formula can be used to assess property taxes. Unlike appraisers, assessors value entire 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 devel­ oped 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 assessments and taxes that each property owner must pay. Assessors must be current on tax assessment procedures and must be able to defend their property assessments, either to the owner directly or at a public hearing, as accurate, since assessors are also responsible for dealing with tax payers who want to contest their assigned prop­ erty 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 property maps of the jurisdiction that detail the property distribution of the jurisdiction. Appraisers and assessors write a detailed report of each appraisal. Writing these 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 computer technology which has impacted this occupation are electronic maps, made by assessor’s offices, 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 surrounding a property. Digital cameras are also commonly used to document the physical appearance of a building or land at the time of appraisal, and the pictures are also used in the documentation of the report. Working Conditions 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 research can now be done in less time or on-site or at home. Records that once required a visit to a courthouse or city hall can often be found online. This has especially affected  .ry  Many real estate appraisers take pictures to document the property in their valuation reports.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  75  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 several weeks for 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. Independent fee appraisers tend to work more than a standard 40 hour work week, in addition to working evenings and weekends writing reports. On-site visits usually occur during daylight 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. Appraisers and assessors usually conduct on-site appraisal work alone. Their office may consist of just themselves or a small sup­ port staff.  Training, Other Qualifications, and Advancement The requirements that must be met to become a fully qualified ap­ praiser or assessor are complex and vary for appraisers and assessors, by State, and sometimes by the value or type of property to be assessed or appraised. In general, both appraisers and assessors must meet licensing and/or certification requirements which include specific training requirements, a period of work as a trainee, and passing one or more examination. Therefore it is essential that prospective apprais­ ers and assessors check with their State governments to determine the specific education and experience required in their State. There also are additional certifications or association designations that are helpful for advancement as well as continuing education requirements. Although there are currently no formal degree requirements to become an appraiser or assessor, the majority of practicing apprais­ ers 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-related or assessor-related organizations. A Federal law requires that any appraiser involved in a Feder­ ally-related transaction with a loan amount of $250,000 or more must have a State-issued license or certification. All States also are required to conform to the licensing and certification require­ ments established by The Appraisal Foundation, a Congressionallyapproved organization dedicated to this purpose. The Appraisal Foundation requires that appraisers pass a Foundation-approved State examination as well as meet education and experience requirements. The education requirements include a course and examination on the Uniform Standards of Professional Appraisal Practice (USPAP) set forth by The Appraisal Foundation. Although Federal standards do not require an appraisal license for those appraisers valuing real property with loan amounts of less than $250,000, many States require any practicing appraiser to obtain a license or certification, regardless of transaction value. In addition, many States have different, more stringent requirements for licensure than The Appraisal Foundation. The qualifications necessary to become an assessor also vary by State but often are similar to the requirements for becoming an appraiser. In most States, the qualifications are established by a State assessor board that sets education and experience require­ ments that must be met to obtain a certificate to practice as an assessor. A few States have no State-wide requirements; in these States standards are set by each locality.  76  Occupational Outlook Handbook  The State-issued appraiser licenses currently available are the State Certified General Real Property Appraiser license, which al­ lows an appraiser to value any type of real property regardless of value, and the State Certified Residential Real Property Appraiser license, which allows an appraiser to value any residential unit of 1 to 4 families regardless of value. An additional license, which is recommended or used by many States is the State Licensed Appraiser license, which permits its holder to appraise commercial property up to $250,000 and 1 to 4 family residential units worth up to $1 million. In most 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 recommended program of the Appraisal Foundation. This program requires 75 hours of specified appraisal education, 15 of which must be on the USPAP, before applying for a trainee position. The number of additional courses one must take while a trainee depends on the State requirements for the license they wish to obtain. For the State Licensed Appraiser license, which is available or required in a majority of States, the candidate must obtain 90 education hours, 15 of which must be on the USPAP, and 2,000 hours of onthe-job training. For the State Certified Residential Appraiser and State Certified General Appraiser licenses, the required education hours are much more rigorous. In addition, the candidate must pass an examination. Commencing 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. States mandating assessor certification have requirements simi­ lar to those for appraisers. Some States also have more than one level of certification. All candidates must attend State-approved schools and facilities and take basic appraisal courses. Although appraisers value one property at a time while an assessor values many, the methods and techniques used are the same, so the main courses assessors take are the same as those for appraisers. In addition, there is usually a set level of experience hours that must be obtained and all assessor candidates in these States must pass an examination. In some States, assessors must abide by the USPAP standards and are strongly encouraged to follow these standards in most other States. For those States not requiring certificates, the hiring assessor’s office will usually require the candidate to also take basic appraisal courses, and at the end of their on-the-job training the candidate often will have accrued sufficient experience hours to meet the requirements for appraisal licenses or certificates. Many assessors also possess a State ap­ praisal license. Obtaining on-the-job training is an essential part of becoming a fully qualified assessor or appraiser and is required for obtaining a license or certification. Although in the past many appraisers ob­ tained this experience working in financial institutions or real estate offices, a new trend for candidates is 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 willing to provide on-the-job training, although smaller municipalities are unable to provide this experience. An alternate source of experience for aspiring assessors is through a revaluation firm. For both appraisers and assessors, continuing education is necessary to maintaining a license or certification. The minimum continuing education requirement for appraisers, as set by The Appraisal Foundation, is 14 hours per year. A State-approved course also must be taken on the USPAP every two 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   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  must also fulfill a continuing education requirement in most States, but the amount varies by State. 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. Many appraisers and assessors choose to become a desig­ nated member of a regional or Nationally recognized appraisal or assessor association. Designations 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 an appraiser or assessor to establish themselves in the profession, and are recognizable credentials to show employers a higher level of education and experience. Obtaining a designa­ tion often requires much more training and experience than the minimum licensing requirements of The Appraisal Foundation, and usually are awarded after 5 to 10 years of experience. Many appraisers and assessors start with getting their license or cer­ tificate and work their way up to a designation. 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 designa­ tions; 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. Staying in one particular region or focusing on one type of appraising spe­ cialty will also help to establish one’s business, reputation, and expertise. Assessors often have a career progression within their office, starting as a trainee and eventually ending up as a senior appraiser or supervisor. Employment In 2004, appraisers and assessors of real estate held about 102,000 jobs. Most appraisers and assessors work full-time. Nearly 4 out of 10 are self-employed; virtually all are appraisers. Employment is 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 1 out of 4 worked in local government; almost all were assessors. Another 1 out of 4, mainly appraisers, worked for real estate firms, while a relatively small number worked for financial institutions, such as banks and credit unions. 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 government; 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 probably would employ more assessors than a small town, which may only employ a single assessor.  Job Outlook Employment of appraisers and assessors of real estate is expected to grow faster than the average for all occupations over the 2004-14 period. Employment of appraisers will grow with increases in the level of real estate activity and employment 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  Management, Business, and Financial Occupations 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. In addition to growth openings, there should be numerous openings due to the need to replace the many appraisers and assessors who are expected to retire or decrease their working hours over the projection period. 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 training position because increasingly traditional sources of training positions prefer not to take on new trainees. Appraisers may find the best opportunities as independent fee ap­ praisers because the banks and other financial institutions that, in the past, employed a significant number of appraisers are increasingly contracting out to independent fee appraisers to make loan appraisals on a case-by-case basis, decreasing their need to have appraisers on staff. The increased use of automated valuation models to conduct appraisals for loan and mortgage purposes has also shifted work out of the financial sector. The cyclical nature of the real estate market will also have a large effect on the future of appraisers, especially those who appraise resi­ dential properties. In times of recession, fewer people buy or sell real estate, causing a decrease in the demand for appraisers. However, during a downturn in the residential real estate market appraisers often are able to switch specialties and appraise other types of properties. Because assessors are needed in every local or State jurisdiction to make assessments for property tax purposes regardless of the state of the local economy, assessors are less affected by fluctuations in the economy and real estate market than appraisers.  Earnings Median annual earnings of appraisers and assessors of real estate were $43,390 in May 2004. The middle 50 percent earned between $30,820 and $60,110. The lowest 10 percent earned less than $22,300 and the highest 10 percent earned more than $81,240. Median annual earnings of those working for local governments were $38,940. Median annual earnings of those working for real estate firms were $46,330. 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 include 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 adjusters, appraisers, ex­ aminers and investigators, as well as cost estimators.  Sources of Additional Information For more information on licensure requirements, contact: >■ Appraisal Foundation, 1029 Vermont Ave. NW., Suite 900, Washington DC, 20005-3517. Internet: http://www.appraisalfoundation.org For more information on appraisers of real estate, contact: >- Appraisal Institute, 550 W. Van Buren St., Suite 1000, Chicago, IL 60607. Internet: http://www.appraisalinstitute.org >• NationalAssociationofRealEstateAppraisers, 1224 North NokomisNE., Alexandria, MN 56308. Internet: http://www.iami.org/narea/home.cfm > American Society of Appraisers, 555 Herndon Pkwy., Suite 125, Hemdon, VA 20170. Internet: http://www.appraisers.org For more information on assessors of real estate, contact: >■ International Association of Assessing Officers, 314 W 10th St., Kansas City, MO 64105. Internet: http://www.iaao.org  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  77  Budget Analysts (0*NET 13-2031.00)  Significant Points  •  Competition for jobs is expected.  •  Although a bachelor’s degree generally is the minimum educational requirement, many employers prefer or require a master’s degree.  •  About 52 percent of all budget analysts work in Fed­ eral, State, and local governments.  Nature of the Work Deciding how to efficiently distribute limited financial resources is an important challenge in all organizations. In most large and complex organizations, this task would be nearly impossible without budget analysts. These workers play the primary role in the development, analysis, and execution of budgets, which are used to allocate current resources and estimate future financial requirements. Without effective budget analysis and feedback about budgetary problems, many private and public organizations could become bankrupt. Budget analysts can be found in private industry, nonprofit or­ ganizations, and the public sector. In private sector firms, a budget analyst examines budgets and seeks new ways to improve efficiency and increase profits. Although analysts working in nonprofit and governmental organizations usually are not concerned with profits, they still try to find the most efficient distribution of funds and other resources among various departments and programs. Budget analysts have many responsibilities in these organiza­ tions, but their primary task is providing advice and technical assistance in the preparation of annual budgets. At the beginning of each budget cycle, managers and department heads submit proposed operational and financial plans to budget analysts for review. These plans outline prospective programs, including proposed funding increases and new initiatives, estimated costs and expenses, and capital expenditures needed to finance these programs. Analysts examine the budget estimates or proposals for com­ pleteness; accuracy; and conformance with established procedures, regulations, and organizational objectives. Sometimes, they employ cost-benefit analysis to review financial requests, assess program tradeoffs, and explore alternative funding methods. They also ex­ amine past and current budgets and research economic and financial developments that affect the organization’s spending. 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 budget summaries. These summaries contain comments and statements that support or argue against funding requests. Budget summaries then are submitted to senior management, or, as is often the case in local and State governments, to appointed or elected officials. Budget analysts then help the chief operating officer, agency head, or other top managers analyze the proposed plan and devise possible alterna­ tives if the projected results are unsatisfactory. The final decision to approve the budget, however, usually is made by the organization head in a private firm or by elected officials in government, such as the State legislature. Throughout the remainder of the year, analysts periodically monitor the budget by reviewing reports and accounting records to determine if allocated funds have been spent as specified.  78  Occupational Outlook Handbook  Working Conditions  I a g*i£  Budget analysts usually work in a comfortable office setting. Long hours are common among these workers, especially during the initial development and midyear and final reviews of budgets. The pres­ sures of deadlines and tight work schedules during these periods can be stressful, and analysts usually are required to work more than the routine 40 hours a week. Budget analysts spend the majority of their time working in­ dependently, compiling and analyzing data and preparing budget proposals. Nevertheless, their schedules sometimes are interrupted by special budget requests, meetings, and training sessions. Some budget analysts travel to obtain budget details and explanations of various programs from coworkers, or to personally verify funding allocation.  Training, Other Qualifications, and Advancement  Budget analysts play the primary role in the development, analysis, and execution of budgets. If deviations appear between the approved budget and actual performance, budget analysts may write a report providing rea­ sons for the variations, along with recommendations for new or revised budget procedures. To avoid or alleviate deficits, budget analysts may recommend program cuts or reallocation of excess funds. They also inform program managers and others within their organization of the status and availability of funds in differ­ ent budget accounts. Before any changes are made to an existing program, or before a new one is implemented, a budget analyst must assess the program’s efficiency and effectiveness. Analysts also may be involved in long-range planning activities such as projecting future budget needs. The amount of data and information that budget analysts are able to analyze has greatly increased through the use of computerized financial software programs. The analysts also make extensive use of spreadsheet, database, and word-processing software. Budget analysts have seen their role broadened as limited funding has led to downsizing and restructuring throughout private industry and government. Not only do they develop guidelines and policies governing the formulation and main­ tenance of the budget, but they also measure organizational performance, assess the effects of various programs and poli­ cies on the budget, and help draft budget-related legislation. In addition, budget analysts sometimes conduct training sessions for company or government agency personnel regarding new budget procedures.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Private firms and government agencies generally require candi­ dates for budget analyst positions 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, again, master’s degrees are preferred. State and local governments have varying requirements, but a bachelor’s degree in one of many areas—ac­ counting, finance, business, public administration, economics, statistics, political science, or sociology—may qualify one for employment. Many States, especially larger, more urban States, require a master’s degree. Sometimes a degree in a field closely related to that of the employing industry or organization, such as engineering, may be preferred. Some firms prefer candidates with a degree in business because business courses emphasize quantitative and analytical skills. Many government employ­ ers prefer candidates with strong analytic and policy analysis backgrounds that may be obtained through such majors as political science, economics, public administration, or public finance. Occasionally, budget-related or finance-related work experience can be substituted for formal education. Because developing a budget involves manipulating numbers and requires strong analytical skills, courses in statistics or ac­ counting are helpful, regardless of the prospective budget analyst’s major field of study. Financial analysis is automated in almost every organization and, therefore, familiarity with word-process­ ing programs and with financial software packages used in budget analysis often is required. Software packages commonly used by budget analysts include electronic spreadsheet, database, and graph­ ics programs. Employers usually prefer candidates who already possess these computer skills. Those seeking a career as a budget analyst also must be able to work under strict time constraints. Strong oral and written commu­ nication skills are essential for analysts because they must prepare, present, and defend budget proposals to decision makers. In addition, budget analysts, along with all other financial of­ ficers, must abide by strict ethical standards. Integrity, objectivity, and confidentiality are all important to budget analysis, and budget analysts must avoid any personal conflicts of interest. Entry-level budget analysts may receive some formal training when they begin their jobs, but most employers feel that the best training is obtained by working through one complete budget cycle. During the cycle, which typically is 1 year, analysts be­ come familiar with the various steps involved in the budgeting process. The Federal Government, on the other hand, offers exten­ sive on-the-job and classroom training for entry-level trainees. In addition to on-the-job training, budget analysts are encouraged to participate in various professional development classes throughout their careers.  Management, Business, and Financial Occupations Some government budget analysts employed at the Federal, State, or local level may earn the Certified Government Finan­ cial Manager (CGFM) designation granted by the Association of Government Accountants. Other government financial officers also may earn this designation. To do so, candidates must have a minimum of a bachelor’s degree, 24 hours of study in financial management, and 2 years of government work experience in fi­ nancial management. They also must pass a series of three exams that cover topics on the organization and structure of government; governmental accounting, financial reporting, and budgeting; and financial management and control. To maintain the CGFM designa­ tion, individuals must complete 80 hours of continuing professional education every 2 years. Budget analysts start their careers with limited responsibilities. In the Federal Government, for example, beginning budget analysts compare projected costs with prior expenditures, consolidate and enter data prepared by others, and assist higher grade analysts by doing research. As analysts progress in their careers, they begin to develop and formulate budget estimates and justification statements, perform detailed analyses of budget requests, write statements sup­ porting funding requests, advise program managers and others on the status and availability of funds for various budget activities, and present and defend budget proposals to senior managers. Beginning analysts usually work under close supervision. Capable entry-level analysts can be promoted to intermediate-level positions within 1 to 2 years, and then to senior positions within a few more years. Progressing to higher levels means added budgetary responsibility, and can lead to a supervisory role. Because of the importance and high visibility of their jobs, senior budget analysts are prime candidates for promotion to management positions in various parts of their organizations, or with other organizations with which they have worked.  Employment Budget analysts held 58,000 jobs throughout private industry and government in 2004. Federal, State, and local governments are major employers, accounting for 52 percent of budget analyst jobs. About 23 percent worked for the Federal Government. Many other budget analysts worked in manufacturing, financial services, or management services. Other employers include schools and hospitals.  Job Outlook Competition for budget analyst jobs is expected over the 2004-14 projection period. Candidates with a master’s degree should have the best job opportunities. Familiarity with computer financial software packages also should enhance a jobseeker’s employment prospects. Employment of budget analysts is expected to grow about as fast as the average for all occupations through 2014. Employment growth will be driven by the continuing demand for sound financial analysis in both the public and the private sectors. In addition to employment growth, many job openings will result from the need to replace experienced budget analysts who transfer to other occupa­ tions or leave the labor force. The increasing efficiency of computer applications used in budget analysis has increased worker productivity by enabling analysts to process more data in less time. However, because budget analysts now have much more data available to them, their jobs are becoming more complicated. In addition, as businesses and other organiza­ tions become more complex and specialized, budget planning and financial control will demand greater attention. These factors should offset any adverse effects of computer applications on employment budget analysts. Digitized forofFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  79  In coming years, all types of organizations will continue to rely heavily on budget analysts to develop and analyze budgets. Because of the importance of financial analysis performed by budget analysts, employment of these workers should remain relatively unaffected by any downsizing in the Nation’s workplaces. In addition, budget analysts usually are less subject to layoffs than are many other workers during economic downturns because financial and budget reports must be completed during periods of both economic growth and slowdowns.  Earnings Salaries of budget analysts vary widely by experience, education, and employer. Median annual earnings of budget analysts in May 2004 were $56,040. The middle 50 percent earned between $45,170 and $70,530. The lowest 10 percent earned less than $36,850, and the highest 10 percent earned more than $87,380. Median annual earnings in the industries employing the largest numbers of budget analysts in May 2004 were: Federal Government..................................................................... $61,640 Local government......................................................................... 52,520 State government.......................................................................... 51,870 According to a 2005 survey conducted by Robert Half International—a staffing services firm specializing in accounting and finance—starting salaries of financial, budget, treasury, and cost ana­ lysts in small companies ranged from $29,750 to $36,250. In large companies, starting salaries ranged from $33,500 to $40,000. In the Federal Government, budget analysts usually started as trainees earning $24,677 or $30,567 year in 2005. Candidates with a master’s degree began at $37,390. Beginning salaries were slightly higher in areas where the prevailing local pay level was higher. The average annual salary in 2005 for budget analysts employed by the Federal Government in nonsupervisory, supervisory, and managerial positions was $67,767.  Related Occupations Budget analysts analyze and interpret financial data, make recom­ mendations for the future, and assist in the implementation of new ideas and financial strategies. Other workers who have similar du­ ties include accountants and auditors, cost estimators, economists, financial analysts and personal financial advisors, financial manag­ ers, loan counselors and officers, and management analysts.  Sources of Additional Information Information about career opportunities as a budget analyst may be available from your State or local employment service. Information on careers in government financial management and the CGFM designation may be obtained from: >• Association of Government Accountants, 2208 Mount Vernon Ave., Alexandria, VA 22301. Internet: http://www.agacgfm.org Information on careers in budget analysis at the State government level may be obtained from: > National Association of State Budget Officers, Hall of the States Build­ ing, Suite 642, 444 North Capitol St. NW„ Washington, DC 20001-1511. Internet: http://www.nasbo.org Information on obtaining positions as occupational health and safety specialists and technicians with the Federal Government is 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.  80  Occupational Outlook Handbook  Claims Adjusters, Appraisers, Examiners, and Investigators (0*NET 13-1031.01, 13-1031.02, 13-1032.00)  Significant Points  •  Adjusters and examiners investigate insurance claims, negotiate settlements, and authorize payments; apprais­ ers assess the cost or value of an insured item; inves­ tigators deal with claims about which there is a ques­ tion of liability and where fraud or criminal activity is suspected.  •  Licensing and continuing education requirements vary by State.  •  College graduates have the best opportunities; competi­ tion will be keen for jobs as investigators, because this occupation attracts many qualified people.  Nature of the Work Individuals and businesses purchase insurance policies to protect against monetary losses. In the event of a loss, policyholders submit claims, or requests for payment, seeking compensation for their loss. Adjusters, appraisers, examiners, and investigators work primarily for property and casualty insurance companies, for whom they handle a wide variety of claims alleging property damage, liability, or bodily injury. Their main role is to inves­ tigate the claims, negotiate settlements, and authorize payments to claimants, 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 overlap­ ping functions and may even perform the same job, the insurance industry generally assigns specific roles to each of these claims workers. Adjusters plan and schedule the work required to process a claim that would follow, for example, an automobile accident or damage to one’s home caused by a storm. They investigate claims by interviewing the claimant 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 professionals, 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 written or audio-taped or video-taped statements, 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 attorneys and expert witnesses to defend the insurer’s position. Many companies centralize claims adjustment in a claims center, where the cost of repair is determined and a check is issued immediately. More complex cases, usually involving bodily injury, are referred to senior adjusters. Some adjusters work with multiple types of insurance; however, most specialize in homeowner claims, business losses, automotive damage, or workers’ compensation. Claimants can opt not to rely on the services of their insur­ ance company’s adjuster and may instead choose to hire a public adjuster. 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  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  directly for companies; however, they work in the best interests of the client, rather than the insurance company. Claims examiners within property and casualty insurance firms may have duties similar to those of an adjuster, but often their pri­ mary 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 on the basis of the diagnosis. The examiners are provided with guides that supply information on the average period of disability, the expected treatments, and the average hospital stay, for patients with the various ailments for which a claim may be submitted. Examiners check claim applications for completeness and accuracy, interview medical specialists, and consult policy files to verify the information reported in a claim. Examiners will then either authorize the appropriate payment or refer the claim to an investigator for a more thorough review. Claims examiners usually specialize in group or individual insurance plans and in hospital, dental, or 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 accidental. 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 accurate settlement of claims is that of the appraiser, whose role is to assess the cost or value of an insured item. The majority of appraisers em­ ployed 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 damage 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 mechan­ ics’ estimates, which might be unreasonably high. Many claims adjusters and auto damage appraisers are equipped with laptop computers from which they can download the necessary forms and files from insurance company databases. Many adjusters and appraisers use digital cameras, which allow photographs of the damage to be sent to the company via the Internet. Many also input information about the damage directly into their computers, where software programs produce estimates of damage on standard forms. These new technologies allow for faster and more efficient processing of claims. When adjusters or examiners suspect fraud, they refer the claim to an investigator. Insurance investigators in an insurance company’s special investigative unit handle claims in which the company suspects fraudulent or criminal activity, such as arson, falsified workers’ disability claims, staged accidents, or unnecessary medical treatments. The severity of insurance fraud cases can vary greatly, from claimants simply overstating the damage to a vehicle to com­ plicated 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 back­ ground information on claimants and witnesses. Investigators can access certain personal information and identify Social Security numbers, aliases, driver’s license numbers, addresses, phone num­ bers, criminal records, and past claims histories to establish whether a claimant has ever attempted insurance fraud. Then, investigators may visit claimants and witnesses to obtain a recorded statement,  Management, Business, and Financial Occupations  81  to work in the event of such emergencies and may have to work 50 or 60 hours a week until all claims are resolved. Insurance investigators often work irregular hours because of the need to conduct surveillance and contact people who are not avail­ able during normal working hours. Early morning, evening, and weekend work is common. Some days, investigators will spend all day in the office, searching databases, making telephone calls, and writing reports. 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.  Training, Other Qualifications, and Advancement  After evaluating insurance claims, claims adjusters report their findings and make recommendations.  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 stated in a workers’ compensa­ tion claim, the investigator will take video or still photographs to document the activity and report it to the insurance company.  Working Conditions Working environments of claims adjusters, appraisers, examiners, and investigators vary greatly. Most claims examiners employed by life and health insurance companies work a standard 5-day, 40-hour week in a typical office environment. Many claims adjusters and auto damage appraisers, however, often work outside the office, inspecting damaged buildings and automobiles. Adjusters who inspect damaged buildings must be wary of potential hazards such as collapsed roofs and floors, as well as weakened structures. In general, adjusters are able to arrange their work schedules to accommodate evening and weekend appointments with clients. This accommodation sometimes results in adjusters working irregular schedules or more than 40 hours a week, especially when they have a lot of claims to investigate. Some report to the office every morning to get their assignments, while others simply call in from home and spend their days traveling to claim sites. New technology, such as laptop computers and cellular telephones, is making telecommut­ ing 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. Adjusters often are called   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training and entry requirements vary widely for claims adjusters, appraisers, examiners, and investigators. Although many in these occupations do not have a college degree, most companies prefer to hire college graduates. No specific college major is recommended, but a variety of backgrounds can be an asset. A claims adjuster who, for example, has a business or an accounting background might specialize in claims of financial loss due to strikes, breakdowns of equipment, or damage to merchandise. College training in architec­ ture or engineering is helpful in adjusting industrial claims, such as those involving damage from fires or other accidents. Some claims adjusters and examiners apply expertise acquired through specialized professional training to adjust claims. 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. Because they often work closely with claimants, witnesses, and other insurance professionals, claims adjusters and examiners must be able to communicate effectively with others. Knowledge of computer applications also is extremely helpful. In addition, a valid driver’s license and a good driving record are required for workers for whom travel is an important aspect of their job. Some companies require applicants to pass a series of written aptitude tests designed to measure their communication, analytical, and general mathematical skills. Licensing requirements for these workers vary by State. Some States have very few requirements, while others require either the completion of prelicensing education or a satisfactory score on a licensing exam. Fulfilling the requirements for earning a voluntary professional designation may, in some cases, be substituted for completing the exam. In some States, claims adjusters employed by insurance companies can work under the company license and need not become licensed themselves. Separate or additional requirements may apply for public adjusters. For example, some States require public adjusters to file a surety bond. Continuing education in claims 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 working on life and health claims must be familiar with new medical procedures and prescription drugs. Some States that require licensing also require a certain number of continuing education credits per year in order to renew the license. These credits can be obtained from a number of sources. Many companies offer training sessions to inform their employees of industry changes. A number of schools and associations give courses and seminars on various topics hav­ ing to with claims. Correspondence courses via the Internet are making long-distance learning possible. Workers also can earn continuing education credits by writing articles for claims publica­ tions or by giving lectures and presentations. In addition, numerous adjusters and examiners choose to earn professional certifications and designations for independent recognition of their professional  82  Occupational Outlook Handbook  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 addition, a certain number of continuing education credits must be earned each year to retain the designation. For auto damage appraiser jobs, insurance companies and independent adjusting firms typically prefer to hire persons with experience as an estimator for, or manager of, an auto body repair shop. An appraiser must know how to repair vehicles in order to identify and estimate damage, and technical skills are essential. While auto 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 on how to estimate and repair damaged vehicles. Some States require auto damage appraisers to be licensed, and certifi­ cation also may be required or preferred. Basic computer skills are an important qualification for many auto damage appraiser positions. As with adjusters and examiners, continuing education is important because of the continual introduction of new car models and repair techniques. Most insurance companies prefer to hire former law enforcement officers or private investigators as insurance investigators. Many experienced claims adjusters or examiners also become investigators. Licensing requirements vary among States. Most employers look for individuals with ingenuity who are persistent and assertive. Investigators should not be afraid of confrontation, should communicate well, and should be able to think on their feet. Good interviewing and interrogation skills also are important and usually are acquired in earlier careers in law enforcement. Beginning claims adjusters, appraisers, examiners, and investiga­ tors work on small claims under the supervision of an experienced worker. As they learn more about claims investigation and settle­ ment, they are assigned larger, more complex claims. Trainees are promoted as they demonstrate competence in handling assignments and progress in their coursework. Employees who demonstrate competence in claims work or administrative skills may be promoted to more responsible managerial or administrative jobs. Similarly, claims investigators may rise to supervisor or manager of the inves­ tigations department. Once they achieve a certain level of expertise, many choose to start their own independent adjusting or auto damage appraising firms.  Employment Adjusters, appraisers, examiners, and investigators held about 263,000 jobs in 2004. Only 5 percent of these jobs were held by auto damage insurance appraisers. Insurance carriers, agencies, brokerages, and related industries, such as private claims adjusting companies, em­ ployed more than 8 out of 10 claims adjusters, appraisers, examiners, and investigators. Relatively few adjusters, appraisers, examiners, and investigators were self-employed.  Job Outlook Employment of claims adjusters, appraisers, examiners, and investigators is expected to grow about as fast as the average for all occupations over the 2004-14 period. College graduates have the best opportunities. Numerous job openings also will result from the need to replace workers who transfer to other occupations or leave the labor force. Many insurance carriers are downsizing their claims staff in an effort to contain costs. Larger companies are relying more on customer service representatives in call centers to handle the recording of the necessary details of the claim, allowing adjusters to spend more of their time investigating claims. New technology is reducing the amount of time it takes for an adjuster to complete   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a claim, thereby increasing the number of claims that one adjuster can handle. However, as long as more insurance policies are being sold to accommodate a growing population, there will be a need for adjusters, appraisers, examiners, and investigators. Further, as the elderly population increases, there will be a greater need for health care, resulting in more health insurance claims. Despite recent gains in productivity resulting from technological advances, these jobs are not easily automated. Adjusters still are needed to contact policyholders, inspect damaged property, and con­ sult with experts. Although the number of claims in litigation and the number and complexity of insurance fraud cases are expected to increase over the next decade, demand for insurance investigators is not expected to grow significantly, because technology such as the Internet, which reduces the amount of time it takes to perform background checks, will allow investigators to handle more cases. Competition for investigator jobs will remain keen because the occupation attracts many qualified people, including retirees from law enforcement and military careers, as well as experienced claims adjusters and examiners who choose to get their investigator license. As with claims adjusters, examiners, and investigators, employ­ ment of auto damage appraisers should grow about as fast as the average for all occupations. Insurance companies and agents con­ tinue to sell growing numbers of auto insurance policies, leading to more claims being filed that require the attention of an auto damage appraiser. The work of this occupation is not easily automated, because most appraisals require an onsite inspection. However, employment growth will be limited by downsizing in the insurance industry and by the implementation of new technology that is making auto damage appraisers more efficient. In addition, some insurance companies are opening their own repair facilities, which may reduce the need for auto damage appraisers.  Earnings Earnings of claims adjusters, appraisers, examiners, and investiga­ tors vary significantly. Median annual earnings were $44,220 in May 2004. The middle 50 percent earned between $33,900 and $57,410. The lowest 10 percent earned less than $27,220, and the highest 10 percent earned more than $72,620. Many claims adjusters, especially those who work for insurance companies, receive additional bonuses or benefits as part of their job. Adjusters often are furnished a laptop computer, a cellular telephone, and a company car or are reimbursed for the use of their own vehicle for business purposes. Median annual earnings of auto damage insurance appraisers were $45,330 in May 2004. The middle 50 percent earned between $37,210 and $54,280. The lowest 10 percent earned less than $29,550, and the highest 10 percent earned more than $63,220.  Related Occupations Property-casualty insurance adjusters and life and health insurance examiners must determine the validity of a claim and negotiate a settlement. They also are responsible for determining how much to reimburse the client. Occupations similar to those of claims adjust­ ers, appraisers, examiners, and investigators include cost estimators; bill and account collectors; medical records and health information technicians; billing and posting clerks; credit authorizes, checkers, and clerks; and bookkeeping, 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 inspectors and investigators and construction and building inspectors. To ensure that company practices and procedures are followed, property and casualty examiners review insurance claims to which a claims adjuster has already proposed a settlement. Others in occupations  Management, Business, and Financial Occupations that review documents for accuracy and compliance with a given set of rules and regulations are tax examiners and revenue agents, as well as accountants and auditors. Insurance investigators detect and investigate fraudulent claims and criminal activity. Their work is similar to that of private detec­ tives and investigators. Like automotive body and related repairers and automotive service technicians and mechanics, auto damage appraisers must be familiar with the structure and functions of various automobiles and their parts.  Sources of Additional Information General information about a career as a claims adjuster, appraiser, examiner, or investigator is available from the home offices of many insurance companies. Information about licensing requirements for claims adjusters may be obtained from the department of insurance in each State. For information about professional designation and training programs, contact any of the following organizations: >- 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 >• American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010— 2196. Internet: http://www.theamericancollege.edu > International Claim Association, 1255 23rd St. N.W., Washington, DC 20037. Internet: http://www.claim.org Information on careers in auto damage appraising can be ob­ tained from: ► Independent Automotive Damage Appraisers Association, P.O. Box 12291 Columbus, GA 31917-2291. Internet: http://www.iada.org  Cost Estimators (0*NET 13-1051.00)  Significant Points  •  More than half of all cost estimators work in the con­ struction industry, and another 17 percent are employed in manufacturing industries.  •  Growth of the construction industry will account for most new jobs.  •  In construction and manufacturing, job prospects should be best for those with industry work experience and a bachelor’s degree in a related field.  Nature of the Work Accurately forecasting the cost of future projects is vital to the sur­ vival of any business. Cost estimators develop the cost information that business owners or managers need to make a bid for a contract or to decide whether a proposed new product will be profitable. They also determine which endeavors are making a profit. Regardless of the industry in which they work, estimators compile and analyze data on all of the factors that can influence costs—such as materials, labor, location, and special machinery requirements, including computer hardware and software. Job duties vary widely depending on the type and size of the project. The methods and motivations for estimating costs can differ greatly by industry. On a construction project, for example, the estimating process begins with the decision to submit a bid. After reviewing various preliminary drawings and specifications, the es­ timator visits the site of the proposed project. The estimator needs to gather information on access to the site and the availability of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  83  electricity, water, and other services, as well as on surface topogra­ phy and drainage. The information developed during the site visit usually is recorded in a signed report that is included in the final project estimate. After the site visit, the estimator determines the quantity of ma­ terials and labor the firm will need to furnish. This process, called the quantity survey or “takeoff,” involves completing standard es­ timating 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 subcontractors estimate their costs as part of their own bidding process, the general contractor’s cost estimator often analyzes bids made by subcontractors as well. Also during the takeoff process, the estimator must make decisions concerning equipment needs, the sequence of operations, the size of the crew required, and physical constraints 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. On completion of the quantity surveys, the estimator prepares a cost summary for the entire project, including the costs of labor, equipment, materials, subcontracts, overhead, taxes, insurance, markup, and any other costs that may affect the project. The chief es­ timator then prepares the bid proposal for submission to the owner. Construction cost estimators also may be employed by the project’s architect or owner to estimate costs or to track actual costs relative to bid specifications as the project develops. In large construction companies employing more than one estimator, it is common practice for estimators to specialize. 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 in manufacturing is to accurately estimate the costs associated with making products. The job may begin when man­ agement requests an estimate of the costs associated with a major redesign of an existing product or the development of a new product or production process. When estimating the cost of developing a new product, for example, the estimator works with engineers, first reviewing blueprints or conceptual drawings to determine the machining operations, tools, gauges, and materials that would be required for the job. The estimator then prepares a parts list and determines whether it is more efficient to produce or to purchase the parts. To do this, the estimator must initiate inquiries for price information from potential suppliers. The next step is to determine the cost of manufacturing each component of the product. Some high-technology products require a considerable amount of computer programming during the design phase. The cost of software devel­ opment is one of the fastest growing and most difficult activities to estimate. As a result, some cost estimators now specialize in estimat­ ing only computer software development and related costs. The cost estimator then prepares time-phase charts and learning curves. Time-phase charts indicate the time required for tool design and fabrication, tool “debugging”—finding and correcting all prob­ lems—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 increases, 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 values, to which are added factors for waste, overhead, and profit to yield the unit cost in  84  Occupational Outlook Handbook  dollars. The estimator then compares the cost of purchasing parts with the firm’s cost of manufacturing them to determine which is cheaper. Computers play an integral role in cost estimation, because estimating often involves complex mathematical calculations and requires advanced mathematical techniques. For example, to under­ take a parametric analysis (a process used to estimate project costs on a per unit basis, subject to the specific requirements 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. Computer word-processing and spreadsheet software is used to produce all of the necessary documentation for cost-estimation results, leaving estimators more time to study and analyze projects. Operations research, production control, cost, and price analysts who work for government agencies may do significant amounts of cost estimating in the course of their regular duties. In addition, the duties of construction managers may include estimating costs. (For more information, see the statements on operations research analysts and construction managers elsewhere in the Handbook.)  Working Conditions Although estimators spend most of their time in an office, construction estimators must make visits to project worksites that can be dusty, dirty, and occasionally hazardous. Likewise, estimators in manufacturing  IV ,  ? fS  L. * “AS  .4 ' £ w< -  Miia  Cost estimators compile and analyze data on all factors that can influence the costs involved in a project.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  must spend time on the factory floor, where it also can be noisy and dirty. In some industries, frequent travel between a firm’s headquarters and its subsidiaries or subcontractors may be required. Although estimators normally work a 40-hour week, overtime is common. Cost estimators often work underpressure 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 individuals with a degree in building construction, construction management, construction science, engineering, or architecture. However, most construction estimators also have considerable construction experi­ ence, gained through work in the industry, internships, or coopera­ tive education programs. Applicants with a thorough knowledge of construction materials, costs, and procedures in areas ranging from heavy construction to electrical work, plumbing systems, or masonry work have a competitive edge. In manufacturing industries, employers prefer to hire individuals with a degree in engineering, physical science, operations research, mathematics, or statistics; or in accounting, finance, business, eco­ nomics, or a related subject. In most industries, great emphasis is placed on experience involving quantitative techniques. Cost estimators should have an aptitude for mathematics; be able to quickly analyze, compare, and interpret detailed but sometimes poorly defined information; and be able to make sound and accurate judg­ ments based on this information. Assertiveness and self-confidence in presenting and supporting one’s conclusions are important, as are strong communications and interpersonal skills, because estimators may work as part of a project team alongside managers, owners, engineers, and design professionals. Cost estimators also need knowledge of comput­ ers, including word-processing and spreadsheet packages. In some instances, familiarity with special estimation software or programming skills also may be required. Regardless of their background, estimators receive much train­ ing on the job, because every company has its own way of handling estimates. Working with an experienced estimator, newcomers become familiar with each step in the process. Those with no ex­ perience reading construction specifications or blueprints first learn that aspect of the work. Then they may accompany an experienced estimator 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. 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 engineer­ ing 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. Many colleges and universities include cost estimating as part of bachelor’s and associate’s degree curriculums in civil engineer­ ing, industrial engineering, and construction management or con­ struction engineering technology. In addition, cost estimating is a significant part of many master’s degree programs in construction science or construction management. Organizations 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 experienced estimators stay abreast of changes affecting the profession. Specialized courses and programs  Management, Business, and Financial Occupations in cost-estimating techniques and procedures also are offered by many technical schools, community colleges, and universities. Voluntary certification can be valuable to cost estimators because it provides professional recognition of the estimator’s competence and experience. In some instances, individual employers may even require professional certification for employment. Both AACE International and SCEA administer certification programs. To become certified, estimators usually must have between 2 and 8 years of estimating experience and must pass an examination. In addition, certification requirements may include the publication of at least one article or paper in the field.  Employment Cost estimators held about 198,000jobs in 2004. About 58 percent of estimators were in the construction industry, and another 17 percent were employed in manufacturing. The remainder worked in a wide range of other industries. Cost estimators work throughout the country, usually in or near major industrial, commercial, and government centers and in cities and suburban areas undergoing rapid change or development.  Job Outlook Overall employment of cost estimators is expected to grow faster than average for all occupations through the year 2014. In addition to open­ ings created by growth, some job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. In construction and manufacturing—the primary employers of cost estimators—job prospects should be best for those with industry work experience and a bachelor’s degree in a related field. Employment growth in the construction industry, in which most cost estimators are employed, will account for most new jobs in this occupation. Construction and repair of highways, streets, and bridges, as well as construction of more subway systems, airports, water and sewage systems, and electric power plants and transmission lines, will stimulate demand for many more cost estimators. Simi­ larly, increasing population and changing demographics will boost demand for residential construction and remodeling and school con­ struction and repair, spurring demand for more cost estimators. As the population ages, the demand for nursing and extended-care facilities will increase. Job prospects in construction should be best for cost estimators who have a degree in construction management or in construction science, engineering, or architecture and who have practical experience in various phases of construction or in a specialty craft area. Employment of cost estimators also will grow in manufactur­ ing, but not as fast as in construction, as firms continue to use cost estimators to identify and control operating costs. Experienced estimators with degrees in engineering, science, mathematics, busi­ ness administration, or economics should have the best job prospects in manufacturing.  Earnings Salaries of cost estimators vary widely by experience, education, size of firm, and industry. Median annual earnings of cost estima­ tors in May 2004 were $49,940. The middle 50 percent earned between $38,420 and $65,620. The lowest 10 percent earned less than $30,240, and the highest 10 percent earned more than $84,870. Median annual earnings in the industries employing the largest numbers of cost estimators in May 2004 were: Nonresidential building construction............................................ $56,570 Building equipment contractors.................................................... 53,310 Residential building construction................................................. 49,830 Foundation, structure, and building exterior contractors............ 49,500 Building finishing contractors....................................................... 47,980  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  85  College graduates with degrees in fields that provide a strong background in cost estimating, such as engineering or construction management, could start at a higher level. According to a July 2005 salary survey by the National Association of Colleges and Employ­ ers, those with bachelor’s degrees in construction science/manage­ ment received job offers averaging $42,923 a year.  Related Occupations Other workers who quantitatively analyze information include ac­ countants and auditors; budget analysts; claims adjusters, appraisers, examiners, and investigators; economists; financial analysts and personal financial advisors; insurance underwriters; loan counselors and officers; market and survey researchers; and operations research analysts. In addition, the duties of industrial production managers and construction managers also may involve analyzing costs.  Sources of Additional Information Information about career opportunities, certification, educational programs, and cost-estimating techniques may be obtained from the following organizations: >■ Association for the Advancement of Cost Engineering (AACE Inter­ national), 209 Prairie Ave., Suite 100, Morgantown, WV 26501. Internet: http ://www.aacei.org ► Society of Cost Estimating and Analysis, 101 S. Whiting St., Suite 201, Alexandria, VA 22304. Internet: http://www.sceaonline.net  Financial Analysts and Personal Financial Advisors (0*NET 13-2051.00, 13-2052.00)  Significant Points  •  A college degree and good interpersonal skills are among the most important qualifications for these workers.  •  Although both occupations will benefit from an in­ crease in investing by individuals, personal financial advisors will benefit more.  •  Financial analysts and personal financial advisors who have earned a professional designation are expected to have the best opportunities; competition is anticipated to be keen for highly lucrative positions in investment banking.  •  About 4 out of 10 personal financial advisors are selfemployed.  Nature of the Work Financial analysts and personal financial advisors provide analysis and guidance to businesses and individuals to help them with their investment decisions. Both types of specialists gather financial information, analyze it, and make recommendations to their clients. However, their job duties differ because of the type of investment information they provide and the clients for whom they work. Financial analysts assess the economic performance of companies and industries for firms and institutions with money to invest. Personalfinancial advisors generally assess the financial needs of individuals, offering them a wide range of options. Financial analysts, also called securities analysts and invest­ ment analysts, work for banks, insurance companies, mutual and pension funds, securities firms, and other businesses, helping these companies or their clients make investment decisions. Financial analysts read company financial statements and analyze commod­  86  Occupational Outlook Handbook  ity prices, sales, costs, expenses, 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. Usually, financial analysts study an entire industry, assessing current trends in business practices, products, and industry competition. They must keep abreast of new regulations or policies that may affect the industry, as well as monitor the economy to determine its effect on earnings. Financial analysts use spreadsheet and statistical software packages to analyze financial data, spot trends, and develop forecasts. On the basis of their results, they write reports and make presentations, usually making recommendations to buy or sell a particular investment or security. Senior analysts may even be the ones who decide to buy or sell if they are responsible for managing the company’s or client’s assets. Other analysts use the data they find to measure the financial risks associated with making a particular investment decision. Financial analysts in investment banking departments of secu­ rities or banking firms often work in teams, analyzing the future prospects of companies that want to sell shares to the public for the first time. They also ensure that the forms and written ma­ terials necessary for compliance with Securities and Exchange Commission regulations are accurate and complete. They may make presentations to prospective investors about the merits of investing in the new company. Financial analysts also work in mergers and acquisitions departments, preparing analyses on the costs and benefits of a proposed merger or takeover. 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. Other financial analysts perform budget, cost, and credit analysis as part of their responsibilities. Personal financial advisors, also called financial planners or financial consultants, use their knowledge of investments, tax laws, and insurance to recommend financial options to individu­ als in accordance with the individual’s short-term and long-term goals. Some of the issues that planners address are retirement and estate planning, funding for college, and general investment options. While most planners offer advice on a wide range of topics, some specialize in areas such as retirement and estate planning or risk management. An advisor’s work begins with a consultation with the client, from whom the advisor obtains information on the client’s finances and financial goals. The advisor then develops a com­ prehensive financial plan that identifies problem areas, makes recommendations for improvement, and selects appropriate invest­ ments 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. Financial advisors usually meet with established clients at least once a year to update them on potential investments and to determine whether the clients have been through any life chang­ es—such as marriage, disability, or retirement—that might affect their financial goals. Financial advisors also answer questions from clients regarding changes in benefit plans or the consequences of a change in their jobs or careers. A large part of the success of financial planners depends on their ability to educate their clients about risks and various possible scenarios so that the clients don’t harbor unrealistic expectations. Some advisors buy and sell financial products, such as mutual funds or insurance, or refer clients to other companies for products  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Financial analysts research and analyze financial data, helping managers make sound decisions.  and services—for example, the preparation of taxes or wills. A number of advisors take on the responsibility of managing the clients’ investments for them. Finding clients and building a customer base is one of the most important of a financial advisor’s job, because referrals from satis­ fied clients arc an important source of new business. Many advisors also contact potential clients by giving seminars or lectures or meet clients through business and social contacts.  Working Conditions Financial analysts and personal financial advisors usually work indoors in safe, comfortable offices or their own homes. Many of these workers enjoy the challenge of helping firms or people make financial decisions. However, financial analysts may face long hours, frequent travel to visit companies and talk to potential investors, and the pressure of deadlines. Much of their research must be done after office hours, because their day is filled with telephone calls and meetings. Personal financial advisors usually work standard business hours, but they also schedule meetings with clients in the evenings or on weekends. Many teach evening classes or hold seminars in order to bring in more clients.  Training, Other Qualifications, and Advancement A college education is required for financial analysts and is strongly preferred for personal financial advisors. Most com­ panies require financial analysts to have at least a bachelor’s degree in business administration, accounting, statistics, or finance. Coursework in statistics, economics, and business is required, and knowledge of accounting policies and proce­ dures, corporate budgeting, and financial analysis methods is recommended. A master’s degree in business administration is desirable. Advanced courses in options pricing or bond valuation and knowledge of risk management also are suggested. Employers usually do not require a specific field of study for personal financial advisors, but a bachelor’s degree in ac­ counting, finance, economics, business, mathematics, or law provides good preparation for the occupation. Courses in investments, taxes, estate planning, and risk management also are helpful. Programs in financial planning are becoming more widely available in colleges and universities. Working for a broker-dealer is a good way to gain experience that can help individuals pass the security license exams needed to practice  Management, Business, and Financial Occupations financial planning. Individuals who start out as independent financial planners may find it more difficult to build their client base, and they often start by servicing their family members and friends. However, many financial planners enter the field after working in a related occupation, such as accountant; auditor; insurance sales agent; lawyer, or securities, commodities, and financial services sales agent. Mathematical, computer, analytical, and problem-solving skills are essential qualifications for financial analysts and per­ sonal financial advisors. Good communication skills also are necessary, because these workers must present complex financial concepts and strategies in easy-to-understand language to clients and other professionals. Self-confidence, maturity, and the ability to work independently are important as well. Financial analysts must be detail oriented, motivated to seek out obscure informa­ tion, and familiar with the workings of the economy, tax laws, and money markets. Strong interpersonal skills and sales ability are crucial to the success of both financial analysts and personal financial advisors. Although not required for financial analysts or personal financial advisors to practice, certification can enhance one’s professional standing and is strongly recommended by many employers. Financial analysts may receive the Chartered Finan­ cial Analyst (CFA) designation, sponsored by the CFA Institute To qualify for this designation, applicants need a bachelor’s degree and 3 years of work experience in a related field and must pass a series of three examinations. These essay exams, administered once a year for 3 years, cover subjects such as ac­ counting, economics, securities analysis, financial markets and instruments, corporate finance, asset valuation, and portfolio management. Personal financial advisors may obtain the Certi­ fied Financial Planner credential, often referred to as CFP (R), demonstrating extensive training and competency in financial planning. This certification, issued by the Certified Financial Planner Board of Standards, requires relevant experience, the completion of education requirements, passing a comprehen­ sive examination, and adherence to an enforceable code of ethics. The CFP (R) exams test the candidate’s knowledge of the financial planning process, insurance and risk management, employee benefits planning, taxes and retirement planning, and investment and estate planning. The exam has been revised in recent years. Candidates are now required to have a working knowledge of debt management, planning liability, emergency fund reserves, and statistical modeling. It may take from 2 to 3 years of study to complete these programs. Personal financial advisors also may obtain the Chartered Fi­ nancial Consultant (ChFC) designation, issued by the American College in Bryn Mawr, Pennsylvania, which requires experience and the completion of an eight-course program of study. The ChFC designation and other professional designations have continuing education requirements. A license is not required to work as a personal financial advi­ sor, but advisors who sell stocks, bonds, mutual funds, insurance, or real estate may need licenses to perform these additional services. Also, if legal advice is provided, a license to practice law may be required. Financial advisors who do not offer these additional services often refer clients to those who are qualified to provide them. Financial analysts may advance by becoming portfolio manag­ ers or financial managers, directing the investment portfolios of their companies or of clients. Personal financial advisors who work in firms also may move into managerial positions, but most advisors advance by accumulating clients and managing more assets.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  87  Employment Financial analysts and personal financial advisors held 355,000jobs in 2004, of which financial analysts held 197,000. Many financial analysts work at the headquarters of large financial companies, several of which are based in New York City. More than 4 out of 10 financial analysts work for finance and insurance industries, includ­ ing securities and commodity brokers, banks and credit institutions, and insurance carriers. Others worked throughout private industry and government. Personal financial advisors held 158,000 jobs in 2004. Much like financial analysts, more than half work for finance and insur­ ance industries, including securities and commodity brokers, banks, insurance carriers, and financial investment firms. However, 4 out of 10 personal financial advisors are self-employed, operating small investment advisory firms, usually in urban areas.  Job Outlook Overall employment of financial analysts and personal financial advi­ sors is expected to increase faster than the average for all occupations through 2014, resulting from increased investment by businesses and individuals. Personal financial advisors will benefit even more than financial analysts as baby boomers save for retirement and as a generally better educated and wealthier population requires invest­ ment advice. In addition, people are living longer and must plan to finance more years of retirement. The globalization of the securities markets also will increase the need for analysts and advisors to help investors make financial choices. Financial analysts and personal financial advisors who have earned a professional designation are expected to have the best opportunities. Deregulation of the financial services industry is expected to spur demand for financial analysts and personal financial advisors. In recent years, banks, insurance companies, and brokerage firms have been allowed to broaden their financial services. Many firms are adding investment advice to their list of services and are expected to increase their hiring of personal financial advisors. Many banks are entering the securities broker­ age and investment banking fields and will increasingly need the skills of financial analysts. Employment of personal financial advisors is projected to grow faster than the average for all occupations. The rapid expansion of self-directed retirement plans, such as 401(k) plans, is expected to continue. As the number and complexity of investments rises, more in­ dividuals will look to financial advisors to help manage their money. Employment of financial analysts is expected to grow about as fast as the average for all occupations. As the number of mutual funds and the amount of assets invested in the funds increase, mutual fund companies will need increased numbers of financial analysts to recommend which financial products the funds should buy or sell. Financial analysts also will be needed in the investment banking field, where they help companies raise money and work on corporate mergers and acquisitions. However, growth in demand for financial analysts to do company research has been, and will continue to be, constrained by regulations that require investment firms to separate research from investment banking. As a result, firms have eliminated research jobs in an effort to contain the costs of implementing these regulations. Demand for financial analysts in investment banking fluctuates because investment banking is sensitive to changes in the stock market. In addition, further consolidation in the finance industries may eliminate some financial analyst positions, dampening overall employment growth somewhat. Competition is expected to be keen for these highly lucrative positions, with many more applicants than jobs.  88  Occupational Outlook Handbook  Earnings Median annual earnings of financial analysts were $61,910 in May 2004. The middle 50 percent earned between $47,410 and $82,730. The lowest 10 percent earned less than $37,580, and the highest 10 percent earned more than $113,490. Median annual earnings in the industries employing the largest numbers of financial analysts in 2004 were as follows: Other financial investment activities............................................ $74,580 Securities and commodity contracts intermediation and brokerage.................................................................................. 67,730 Management of companies and enterprises ................................. 62,890 Insurance carriers.......................................................................... 58,120 Depository credit intermediation.................................................. 56,860 Median annual earnings of personal financial advisors were $62,700 in May 2004. The middle 50 percent earned between $41,860 and $108,280. Median annual earnings in the industries employing the largest number of personal financial advisors in 2004 were as follows: Other financial investment activities............................................. $78,350 Securities and commodity contracts intermediation and brokerage................................................................................. 63,310 Depository credit intermediation.................................................. 57,180 Agencies, brokerages, and other insurance related activities ..... 56,950 Many financial analysts receive a bonus in addition to their sal­ ary, and the bonus can add substantially to their earnings. Usually, the bonus is based on how well their predictions compare to the actual performance of a benchmark investment. Personal financial advisors who work for financial services firms are generally paid a salary plus bonus. Advisors who work for financial investment or planning firms or who are self-employed either charge hourly fees for their services or charge one set fee for a comprehensive plan, based on its complexity. Advisors who manage a client’s as­ sets may charge a percentage of those assets. Advisors generally receive commissions for financial products they sell, in addition to charging a fee.  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; and securities, commodities, and financial services sales agents.  Sources of Additional Information For information on a career in financial planning, contact: >■ The Financial Planning Association, 4100 E. Mississippi Ave., Suite 400, Denver, CO 80246-3053. Internet: http://www.fpanet.org For information about the Certified Financial Planner (CFP) (R) certification, contact: >- Certified Financial Planner Board of Standards, Inc., 1670 Broadway, Suite 600, Denver, CO 80202-4809. Internet: http://www.cfp.net/become For information about the Chartered Financial Consultant (ChFC) designation, contact: ► The American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010. Internet: http://www.amercoll.edu For information on a career as a financial analyst, contact either of the following organizations: ► American Academy of Financial Management, 2 Canal St., Suite 2317, New Orleans, LA 70130. Internet: http://www.financialanalyst.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  Insurance Underwriters (0*NET 13-2053.00)  Significant Points  •  Most large insurance companies prefer college gradu­ ates who have a degree in business administration or finance with courses in accounting; however, a bache­ lor’s degree in any field—plus courses in business law and accounting—may be sufficient to qualify.  •  Continuing education is necessary for advancement.  •  Employment is expected to grow more slowly than av­ erage as the continuing spread of underwriting software increases worker productivity.  •  Job opportunities should be best for those with a back­ ground in finance and strong computer and communi­ cation skills.  Nature of the Work Insurance companies protect individuals and organizations from financial loss by assuming billions of dollars in risk each year. Un­ derwriters are needed to identify and calculate the risk of loss from policyholders, establish appropriate premium rates, and write poli­ cies that cover this risk. An insurance company may lose business to competitors if the underwriter appraises risks too conservatively, 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 acceptable and will not result in a loss. Applications often are supplemented with reports from loss-control consultants, medical reports, reports from data vendors, and actuarial studies. Underwriters then must decide whether to issue the policy and, if so, the appropriate premium to charge. In making this determination, underwriters serve as the main link between the insurance carrier and the insurance agent. On occasion, they 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 sys­ tems” to manage risks more efficiently and accurately. These systems automatically analyze and rate insurance applications, recommend acceptance or denial of the risk, and adjust the premium rate in accordance with the risk. With these systems, underwriters are better equipped to make sound decisions and avoid excessive losses. The Internet also has affected the work of underwriters. Many insurance carriers’ computer systems are now linked to different databases on the Internet that allow immediate access to informa­ tion—such as driving records—necessary in determining a poten­ tial client’s risk. This kind of access reduces the amount of time and paperwork necessary for an underwriter to complete a risk assessment. Most underwriters specialize in one of three major categories of insurance: life, health, and property and casualty. Life and health insurance underwriters may further specialize in group or individual policies. Property and casualty underwriters usually specialize in either commercial or personal insurance and then by type of risk insured, as in fire, homeowners’, automobile, marine, or liability insurance, or workers’ compensation. In cases where casualty companies  Management, Business, and Financial Occupations  ISiliS  Insurance underwriters review insurance applications and determine the appropriate premium to charge a customer.  provide insurance through a single “package” policy covering vari­ ous 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. An increasing proportion of insurance sales, particularly in life and health insurance, is being made through group contracts. A standard group policy insures everyone in a specified group through a single contract at a standard premium rate. The group 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—a labor union, for example—with individual policies reflecting their needs. These usually are casu­ alty policies, such as those covering automobiles. The casualty underwriter analyzes the application of each group member and makes individual appraisals. Some group underwriters meet with union or employer representatives to discuss the types of policies available to their group.  Working Conditions Underwriters have desk jobs that require no unusual physical activity. Their offices usually are comfortable and pleasant. Although underwriters typically work a standard 40-hour week, more are working longer hours due to the downsizing of many insurance companies. Most underwriters are based in a home or regional branch office, but they occasionally attend meetings away from home for several days. Construction and marine underwriters frequently travel to inspect worksites and assess risks.  89  enced risk analyst. Property and casualty trainees study claims files to become familiar with factors associated with certain types of losses. Many larger insurers offer work-study training programs, lasting from a few months to a year. As trainees gain experience, they are assigned policy applications that are more complex and cover greater risks. Analyzing and processing these applications efficiently requires the use of computers. Underwriting can be a satisfying career for people who enjoy analyzing information and paying attention to detail. In addition, underwriters must possess good judgment in order to make sound decisions. Excellent communication and interpersonal skills also are essential, as much of the underwriter’s work involves dealing with agents and other insurance professionals. Continuing education is necessary for advancement. Insurance companies usually pay tuition for underwriting courses that their trainees complete; some also offer salary incentives. Independentstudy programs for experienced property and casualty underwriters are available as well. The Insurance Institute of America offers both a program called “Introduction to Underwriting” for beginning underwriters, and the specialty designation of Associate in Com­ mercial Underwriting (ACU), a formal step in developing a career in underwriting business insurance policies. Those interested in developing a career 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 examinations that generally last 1 to 2 years. The American Institute for Chartered Property Casualty Underwriters (AICPCU) awards the Chartered Property and Casualty Underwriter (CPCU) designation, the final stage of development for an underwriter. Earning the CPCU designation requires passing 10 exams, meeting a requirement of at least 3 years of insurance experience, and abiding by the AICPCU’s code of professional ethics. Exams cover risk management; in­ surance operations and regulations, business and insurance law, and financial management and financial institutions. In conjunc­ tion with the Insurance Institute of America, the AICPCU offers 22 insurance-related educational programs, including associate designation programs in claims underwriting, risk management, and reinsurance. The American College offers the Chartered Life Underwriter (CLU) designation and the Registered Health Underwriter (RHU) designation for all life and health insurance professionals. Experienced underwriters who complete courses of study may ad­ vance 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 un­ derwriters are attracted to the earnings potential of sales and, therefore, obtain State licenses to sell insurance and related financial products as agents or brokers.  Employment Training, Other Qualifications, and Advancement For entry-level underwriting jobs, most large insurance com­ panies prefer college graduates who have a degree in busi­ ness administration or finance with courses or experience in accounting. However, a bachelor’s degree in almost any field—plus courses in business law and accounting—provides a good general background and may be sufficient to qualify an individual. Because computers are an integral part of most underwriters’jobs, computer skills are essential. New employees usually start as underwriter trainees or assistant underwriters. They may help collect information on applicants and evaluate routine applications under the supervision of an experi­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Insurance underwriters held about 101,000 jobs in 2004. Approxi­ mately 2 out of 3 underwriters work for insurance carriers. Most of the remaining underwriters work in insurance agencies or for organizations that offer insurance services to insurance companies and policyholders. A small number of underwriters work in agen­ cies owned and operated by banks, mortgage companies, and real estate firms. Most underwriters are based in the insurance company’s home of­ fice, but some, mainly in the property and casualty area, work out of regional branch offices of the insurance company. These underwrit­ ers usually have the authority to underwrite most risks and determine an appropriate rating without consulting the home office.  90  Occupational Outlook Handbook  Job Outlook Employment of underwriters is expected to grow more slowly than the average for all occupations through 2014. Underwriting software will continue to make workers more productive; how­ ever, because computer software does not do away with the need for human skills, employment will increase as economic and population growth result in increased insurance needs by businesses and individuals. Job opportunities should be best for those with a background in finance and strong computer and communication skills. In addition to openings arising from some job growth, open­ ings will be created by the need to replace underwriters who transfer to another job or leave the occupation. Insurance carriers always are assessing new risks and offering policies 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 that may provide job opportunities for underwriters is long-term care insurance. Demand for underwriters also is expected to improve as insur­ ance carriers try to restore profitability to make up for an unusu­ ally large number of underwriting losses in recent years. As the carriers’ returns on their investments have declined, insurers are placing more emphasis on underwriting to generate revenues. This renewed interest in underwriting should result in job opportunities for underwriters. Because insurance is considered a necessity for people and busi­ nesses, there will always be a need for underwriters—a profession that is less subject to recession and layoffs than other fields.  >- American Institute for Chartered Property and Casualty Underwriters and Insurance Institute of America, 720 Providence Rd., P.O. Box 3016, Malvern, PA 19355-0716. Internet: http://www.aicpcu.org Information on the CLU and RHU designations can be obtained from: >- American College, 270 South Bryn Mawr Ave., Bryn Mawr, PA 19010­ 2196. 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 officer positions generally require a bachelor’s degree in finance, economics, or a related field; training or experience in banking, lending, or sales is advanta­ geous. Slower-than-average employment growth is expected despite rising demand for loans, because technology is making for simpler and faster processing and approval of loans. Earnings often fluctuate with the number of loans gen­ erated, rising substantially when the economy is good and interest rates are low.  Earnings  Nature of the Work  Median annual earnings of insurance underwriters were $48,550 in May 2004. The middle 50 percent earned between $37,490 and $65,450 a year. The lowest 10 percent earned less than $30,410, while the highest 10 percent earned more than $86,110. Median annual earnings of underwriters working with insurance carriers were $49,280, while earnings of these in agencies, brokerages, and other insurance related activities were $46,750. Insurance companies usually provide better-than-average ben­ efits, including retirement plans and employer-financed group life and health insurance.  For many individuals, taking out a loan may be the only way to afford 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 lend­ ing by finding potential clients and assisting them in applying for loans. Loan officers also gather personal information about clients and businesses to ensure that an informed decision is made regard­ ing the creditworthiness of the borrower and the probability of repayment. Loan officers may provide guidance to prospective loan applicants who have problems qualifying for traditional loans. The guidance may include determining the most appropriate type of loan for a particular customer and explaining specific requirements and restrictions associated with the loan. Loan officers usually specialize in commercial, consumer, or mortgage loans. Commercial or business loans help companies pay for new equipment or expand operations; consumer loans include home equity, automobile, and personal loans; mortgage loans are made to purchase real estate or to refinance an existing mortgage. As banks and other financial institutions begin to offer new types of loans and a growing variety of financial services, loan officers will have to keep abreast of these new product lines so that they can meet their customers’ needs. In many instances, loan officers act as salespeople. Commercial loan officers, for example, contact firms to determine their needs for loans. If a firm is seeking new funds, the loan officer will try to persuade the company to obtain the loan from his or her institution. Similarly, mortgage loan officers develop relationships with commercial and residential real estate agencies so that, when an individual or firm buys a property, the real estate agent might recommend contacting a specific loan officer for financing. Once the initial contact has been made, loan officers guide cli­ ents through the process of applying for a loan. The process begins  Related Occupations Underwriters make decisions on the basis of financial and statistical data. Other workers with the same type of responsibility include accountants and auditors, actuaries, budget analysts, cost estima­ tors, financial analysts and personal financial advisors, financial managers, loan officers, and credit analysts. Other related jobs in the insurance industry include insurance sales agents and claims adjusters, appraisers, examiners, and investigators.  Sources of Additional Information Information about a career as an insurance underwriter is available from the home offices of many 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 on careers in the life insurance field can be obtained from: >■ LIMRA International, P.O. Box 203, Hartford, CT 06141. Information on the underwriting function and the CPCU and AU designations can be obtained from:  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Management, Business, and Financial Occupations with a formal meeting or telephone call with a prospective client, during which the loan officer obtains basic information about the purpose of the loan and explains the different types of loans and credit terms that are available to the applicant. Loan officers answer questions about the process and sometimes assist clients in filling out the application. After a client completes the application, the loan officer begins the process of analyzing and verifying the information on the application to determine the client’s creditworthiness. Often, 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. In cases a credit history is not avail­ able or in which unusual financial circumstances are present, the loan officer may request additional financial information from the client or, in the case of commercial loans, copies of the company’s financial statements. With this information, loan officers who specialize in evaluating a client’s creditworthiness—often called loan underwriters—may conduct a financial analysis or other risk assessment. Loan officers include such information and their writ­ ten comments in a loan file, which is used to analyze whether the prospective loan meets the lending institution’s requirements. Loan officers then decide, in consultation with their managers, whether to grant the loan. If the loan is approved, a repayment schedule is arranged with the client. A loan may be approved that would otherwise be denied if the customer can provide the lender with appropriate collateral— property pledged as security for the repayment of the loan. For example, when lending money for a college education, a bank may insist that borrowers offer their home as collateral. If the borrowers should ever default on the loan, the home would be seized under court order and sold to raise the necessary money. Some loan officers, referred to as. loan collection officers, contact borrowers with delinquent loan accounts to help them find a method of repayment in order to avoid their defaulting on the loan. If a repayment plan cannot be developed, the loan collection officer initiates collateral liquidation, in which the lender seizes the collateral used to secure the loan—a home or car, for example—and sells it to repay the loan.  Working Conditions Working as a loan officer usually involves considerable travel. For example, commercial and mortgage loan officers frequently work away from their offices and rely on laptop computers, cellular telephones, and pagers to keep in contact with their employ-  i  1  91  ers 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 offi­ cers, 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 usually carry a heavy caseload and sometimes cannot accept new clients until they complete current cases. They are especially busy when interest rates are low, a condition that triggers a surge in loan applications.  Training, Other Qualifications, and Advancement Loan officer positions generally require a bachelor’s degree in finance, economics, or a related field. Banking, lending, or sales experience is highly valued by employers. Most employers also prefer applicants who are familiar with computers and their appli­ cations in banking. Loan officers without college degrees usually advance to their positions from other jobs in an organization after acquiring several years of work experience in various other occu­ pations, such as teller or customer service representative. Personal qualities such as sales ability, good interpersonal and communication skills, and a strong desire to succeed also are important qualities for loan officers. There are currently no specific licensing requirements for loan officers working in banks or credit unions. Training and licensing requirements for loan officers who work in mortgage banks or bro­ kerages vary by State. Various banking-related associations and private schools offer courses and programs for students interested in lending, as well as for experienced loan officers who want to keep their skills current. For example, the Bank Administration Institute, an affiliate of the American Banker’s Association, offers the Loan Review Certificate Program for persons 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 Certified Mortgage Banker (CMB) desig­ nation demonstrates the holder’s superior knowledge, understand­ ing, and competency in real estate finance. The Mortgage Bankers Association offers three CMB designations: residential, commerce, and master’s. To obtain the CMB, the candidate must have 3 years of experience, earn educational credits, and pass an exam. Completion of these courses and programs generally enhances one’s employment and advancement opportunities. Persons planning a career as a loan officer should be capable of developing effective working relationships with others, confident in their abilities, and highly motivated. For public relations purposes, loan officers must be willing to attend community events as representatives of their employer. Capable loan officers may advance to larger branches of the firm or to managerial positions, while less capable workers—and those having weak academic preparation—could be assigned to smaller branches and might find promotion difficult without obtaining training to upgrade their skills. Advancement beyond a loan of­ ficer position usually includes supervising other loan officers and clerical staff.  Employment  Loan officers guide clients through the loan application process.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Loan officers held about 291,000 jobs in 2004. About 9 out of 10 loan officers were employed by commercial banks, savings institu­ tions, credit unions, and related financial institutions. Loan officers are employed throughout the Nation, but most work in urban and  92  Occupational Outlook Handbook  suburban areas. At some banks, particularly in rural areas, the branch or assistant manager often handles the loan application process.  Job Outlook Employment of loan officers is projected to increase more slowly than the average for all occupations through 2014. College graduates and those with banking, lending, or sales experience should have the best job prospects. Employment growth stemming from economic expansion and population increases—factors that generate demand for loans—will be partially offset by increased automation that speeds lending processes and by the growing use of the Internet to apply for and obtain loans. Job opportunities for loan officers are influenced by the volume of applications, which is determined largely interest rates and by the overall level of economic activity. However, besides openings arising from growth, additional job openings will result from the need to replace workers who retire or otherwise leave the occupation permanently. 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 loan un­ derwriters—to evaluate many more loans in much less time, thus increasing the loan officer’s efficiency. In addition, the mortgage application process has become highly automated and standardized, a simplification that has enabled online 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 is expected to become more common in the future, especially for mortgages, thereby reducing demand for loan officers. Although loans remain a major source of revenue for banks, demand for new loans fluctuates and affects the income and employment op­ portunities of loan officers. An upswing in the economy or a decline in interest rates often results in a surge in real estate buying and mortgage refinancing, requiring loan officers to work long hours processing ap­ plications and inducing lenders to hire additional loan officers, who often are paid by commission on the value of the loans they place. When the real estate market slows, loan officers often suffer a decline in earnings and may even be subject to layoffs. The same applies to 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.  Earnings Median annual earnings of loan officers were $48,830 in May 2004. The middle 50 percent earned between $35,360 and $69,160. The lowest 10 percent earned less than $27,580 while the top 10 percent earned more than $98,280. Median annual earnings in the industries employing the largest numbers of loan officers in 2004 were as follows: Activities related to credit intermediation..................................... $54,180 Management of companies and enterprises................................. 51,670 Nondepository credit intermediation............................................ 49,930 Depository credit intermediation.................................................. 44,460 The form of compensation for loan officers varies. Most are paid a commission that is based on the number of loans they originate. In this way, commissions are used to motivate loan officers to bring in more loans. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the number of loans originated. Banks and other lenders sometimes of­   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  fer their loan officers free checking privileges and somewhat lower interest rates on personal loans. According to a salary survey conducted by Robert Half Interna­ tional, a staffing services firm specializing in accounting and finance, mortgage loan officers earned between $30,000 and $ 100,000 in 2005, consumer loan officers with 1 to 3 years of experience earned between $30,000 and $35,000, and commercial loan officers with 1 to 3 years of experience made between $45,500 and $70,000. Commercial loan officers with more than 3 years of experience made between $61,750 and $100,000, and consumer loan officers earned between $25,500 and $50,000. Earnings of loan officers with graduate degrees or professional certifications are higher. Loan officers who are paid on a commission basis usually earn more than those on salary only, and those who work for smaller banks generally earn less than those employed by larger institutions.  Related Occupations Loan officers help 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: ► Mortgage Bankers Association, 1919 Pennsylvania Ave. NW., Washing­ ton, 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 officers.  Management Analysts (0*NET 13-1111.00)  Significant Points  •  Despite fast employment growth, keen competition is expected for jobs; opportunities should be best for those with a graduate degree, specific industry exper­ tise, and a talent for salesmanship and public relations.  •  About 29 percent, more than 3 times the average for all occupations, are self-employed.  •  Most positions in private industry require a master’s degree and additional years of specialized experience; a bachelor’s degree is sufficient for entry-level govern­ ment jobs.  Nature of the Work As business becomes more complex, the Nation’s firms are con­ tinually faced with new challenges. Firms increasingly rely on management analysts to help them remain competitive amidst these changes. Management analysts, often referred to as man­ agement consultants in private industry, analyze and propose ways to improve an organization’s structure, efficiency, or profits. For example, a small but rapidly growing company that needs help improving the system of control over inventories and expenses may decide to employ a consultant who is an expert in just-in-time inventory management. In another case, a large company that has  Management, Business, and Financial Occupations recently acquired a new division may hire management analysts to help reorganize the corporate structure and eliminate duplicate or nonessential jobs. In recent years, information technology and electronic commerce have provided new opportunities for management analysts. Companies hire consultants to develop strategies for entering and remaining competitive in the new electronic marketplace. (For information on computer specialists working in consulting, see the following statements elsewhere in the Handbook: Computer software engineers; systems analysts, computer scientists, and database administrators; and computer programmers.) Firms providing management analysis range in size from a single practitioner to large international organizations employing thousands of consultants. Some analysts and consultants specialize in a 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, man­ agement analysts tend to specialize by type of agency. The work of management analysts and consultants varies with each client or employer, and from project to project. Some projects require a team of consultants, each specializing in one area. In other projects, con­ sultants work independently with the organization’s managers. In all cases, analysts and consultants collect, review, and analyze informa­ tion 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 pro­ posals 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. After obtaining an assignment or contract, management analysts first define the nature and extent of the problem. During this phase, they analyze relevant data—which may include annual revenues, employment, or expenditures—and interview managers and employ­ ees while observing their operations. The analyst or consultant then develops solutions to the problem. While preparing their recom­ mendations, they take into account the nature of the organization, the relationship it has with others in the industry, and its internal organization and culture. Insight into the problem often is gained by building and solving mathematical models. Once they have decided on a course of action, consultants report their findings and recommendations to the client. These suggestions usually are submitted in writing, but oral presentations regarding findings also are common. For some projects, management analysts are retained to help implement the suggestions they have made. Like their private-sector colleagues, management analysts in government agencies try to increase efficiency and worker produc­ tivity, 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 needs. Analysts may manage contracts for a wide range of goods and services to ensure quality performance and to prevent cost overruns.  Working Conditions Management analysts usually divide their time between their offices andFRASER the client’s site. In either situation, much of an analyst’s time is Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  93  Management analysts analyze and propose ways to improve an organization’s structure, efficiency, or profits. spent indoors in clean, well-lit offices. Because they must spend a sig­ nificant 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 as a result of trying to meet a client’s demands, often on a tight schedule. Self-employed consultants can set their workload and hours and work at home. On the other hand, their livelihood depends on their ability to maintain and expand their client base. Salaried consultants also must impress potential clients to get and keep clients for their company.  Training, Other Qualifications, and Advancement Educational requirements for entry-level jobs in this field vary widely between private industry and government. Most employ­ ers 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, in addition to a master’s degree. Some will hire workers with a bachelor’s degree as a research analyst or associate. Research analysts usually need to pursue a master’s degree in order to advance to a consulting position. Most government agencies hire people with a bachelor’s degree and no pertinent work experience for entry-level manage­ ment analyst positions.  94  Occupational Outlook Handbook  Few universities or colleges offer formal programs of study in management consulting; however, many fields of study provide a suitable educational background for this occupation because of the wide range of areas addressed by management analysts. Common educational backgrounds include most academic programs in busi­ ness and management, such as accounting and marketing, as well as economics, computer and information sciences, and engineering. In addition to the appropriate formal education, most entrants to this occupation have years of experience in management, human resources, information technology, or other specialties. Analysts also routinely attend conferences to keep abreast of current devel­ opments in their field. Management analysts often work with minimal supervision, so they need to be self-motivated and disciplined. Analytical skills, the ability to get along with a wide range of people, strong oral and written communication skills, good judgment, time management skills, and creativity are other desirable qualities. The ability to work in teams also is an important attribute as consulting teams become more common. As consultants gain experience, they often become solely re­ sponsible for a specific project, taking on more responsibility and managing their own hours. At the senior level, consultants may supervise teams working on more complex projects and become more involved in seeking out new business. Those with excep­ tional skills may eventually become a partner in the firm. Others with entrepreneurial ambition may open their own firm. A high percentage of management consultants are self-employed, partly because business startup costs are low. Self-employed consul­ tants also can share office space, administrative help, and other re­ sources with other self-employed consultants or small consulting firms, thus reducing overhead costs. 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 and several years of consulting experience. The Institute of Management Consultants USA, Inc. (IMC USA) offers a wide range of professional development programs and resources, such as meetings and workshops, which can be helpful for management consultants. The IMC USA also offers the Certified Management Consultant (CMC) designation to those who meet minimum levels of education and experience, submit client reviews, and pass an interview and exam covering the IMC USA’s Code of Ethics. Management consultants with a CMC designation must be recertified every 3 years. Certification is not mandatory for management consultants, but it may give a jobseeker a competitive advantage.  Employment Management analysts held about 605,000 jobs in 2004. About 29 percent of these workers, more than 3 times the average for all oc­ cupations, were self-employed. Management analysts are found throughout the country, but employment is concentrated in large met­ ropolitan areas. Management analyst jobs are found in a wide range of industries, including management, scientific, and technical consulting firms; computer systems design and related services firms; and Federal, State, and local governments. The majority of those working for the Federal Government are in the U.S. Department of Defense.  Job Outlook Despite projected rapid employment growth, keen competition is expected for jobs as management analysts. The pool of applicants from which employers can draw is quite large since analysts can come from very diverse educational backgrounds. Furthermore, the independent and challenging nature of the work, combined with high earnings potential, makes this occupation attractive to many. Job   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  opportunities are expected to be best for those with a graduate de­ gree, specific industry expertise, and a talent for salesmanship and public relations. Employment of management analysts is expected to grow faster than the average for all occupations through 2014, as industry and government increasingly rely on outside expertise to improve the performance of their organizations. Job growth is projected in very large consulting firms with international expertise and in smaller con­ sulting 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 can expedite solutions to a variety of different issues and problems within an organization. Employment growth of 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 include developments in information technology and the growth of electronic commerce. Traditional companies hire analysts to help design in­ tranets or company Web sites, or to establish online businesses. New Internet startup companies hire analysts not only to design Web sites but also to advise them in more traditional business practices, such as pricing strategies, marketing, and inventory and human resource management. In order to offer clients better quality and a wider variety of services, consulting firms are partnering with traditional computer software and technology firms. Also, many computer firms are developing consulting practices of their own in order to take advantage of this expanding market. Although information technol­ ogy consulting should remain one of the fastest growing consulting areas, the volatility of the computer services industry necessitates that the most successful management analysts have knowledge of traditional business practices in addition to computer applications, systems integration, Web design, and management skills. The growth of international business also has contributed to an increase in demand for management analysts. As U.S. firms 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 languages. 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 marketing strategies. As this process continues and businesses downsize, even more opportunities will be created for analysts to perform duties that previously were handled internally. Finally, more management analysts also will be needed in the public sector, as Federal, State, and local government agencies seek ways to become more efficient. Though management consultants are continually expanding their services, employment growth could be hampered by increasing competition for clients from occupations that do not traditionally perform consulting work, such as accountants, financial analysts, lawyers, and computer systems analysts. Furthermore, economic downturns also can have adverse effects on employment for some management consultants. In these times, businesses look to cut costs, and consultants may be considered an excess expense. On the other hand, some consultants might experience an increase in work during recessions because they advise businesses on how to cut costs and remain profitable.  Management, Business, and Financial Occupations  Earnings Salaries for management analysts vary widely by years of experience and education, geographic location, sector of expertise, and size of employer. Generally, management analysts employed in large firms or in metropolitan areas have the highest salaries. Median annual wage and salary earnings of management analysts in May 2004 were $63,450. The middle 50 percent earned between $48,340 and $86,650. The lowest 10 percent earned less than $37,680, and the highest 10 percent earned more than $120,220. Median annual earnings in the industries employing the largest numbers of manage­ ment analysts in May 2004 were: Management, scientific, and technical consulting services ........ $72,480 Federal Government...................................................................... 72,440 Computer systems design and related services............................. 69,800 Management of companies and enterprises.................................. 59,420 State government ......................................................................... 48,070 According to the Association of Management Consulting Firms, typical earnings in 2004—including bonuses and profit sharing— averaged $52,482 for research associates in member firms; $65,066 for entry-level consultants; $89,116 for management consultants; $123,305 for senior consultants; $191,664 for junior partners; and $317,339 for senior partners. Only the most experienced workers in highly successful management consulting firms earn these top salaries. Salaried management analysts usually receive common ben­ efits, such as health and life insurance, a retirement plan, vacation, and sick leave, as well as less common benefits, such as profit sharing and bonuses for outstanding work. In addition, all travel expenses usually are reimbursed by the employer. Self-employed consultants have to maintain their own office and provide their own benefits.  Related Occupations Management analysts collect, review, and analyze data; make recom­ mendations; and implement their ideas. Occupations with similar du­ ties include accountants and auditors; budget analysts; cost estimators; financial analysts and personal financial advisors; operations research analysts; economists; and market and survey researchers. Some man­ agement analysts specialize in information technology and work with computers, as do computer systems analysts and computer scientists and database administrators. Most management analysts also have managerial experience similar to that of administrative services man­ agers; advertising, marketing, promotions, public relations, and sales managers; financial managers; human resources, training, and labor relations managers and specialists; and top executives.  Sources of Additional Information Information about career opportunities in management consulting is available from: >- Association of Management Consulting Firms, 380 Lexington Ave., Suite 1700, New York, NY 10168. Internet: http://www.amcf.org Information about the Certified Management Consultant designa­ tion can be obtained from: >• Institute of Management Consultants USA, Inc., 2025 M St. NW., Suite 800, Washington, DC 20036. Internet: http://www.imcusa.org Information on obtaining a management analyst position with the Federal Government is available from the Office of Personnel Management (OPM) through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Inter­ net at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461­ These numbers are not tollfree, and charges may result. Digitized8404. for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  95  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 bache­ lor’s degree and some meeting planning experience.  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. Meeting and convention planners work for nonprofit organizations, professional and similar associations, hotels, corpora­ tions, and government. Some organizations have internal meeting planning staffs, and others hire independent meeting and convention planning firms to organize their events. The first step in planning a meeting or convention is determining the purpose, message, or impression that the sponsoring organization wants to communicate. Planners increasingly focus on how meet­ ings impact 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 meet­ ing sites, which may be hotels, convention centers, or conference centers. They issue requests for proposals—documents that state the meeting dates and outline their needs for the meeting or convention, including meeting and exhibit space, lodging, food and beverages, telecommunications, audio-visual requirements, transportation, and any other necessities—to all the sites in which they are interested. The establishments respond with proposals describing what space and services they can supply, and at what prices. Meeting and convention planners review these proposals and either make recommendations to top management or choose the site themselves. Once the location is selected, meeting and convention planners arrange support services, coordinate needs with the facility, prepare the site staff for the meeting, and set up all forms of electronic com­ munication 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 major compo­ nent of the job. Planners register attendees and issue 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 meeting rooms are equipped with sufficient seating and audio-visual 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 con­ tracts, which have become increasingly complex, are often drawn up more than a year in advance of the meeting or convention. Contracts may include clauses requiring the planner to book a certain number  96  Occupational Outlook Handbook  of rooms for meeting attendees and imposing penalties if the rooms are not filled. Therefore, it is important that the planner is able to 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, forecasting what each aspect of the event will cost. Additionally, some planners oversee meetings that contribute significantly to their organization’s operating budget and must ensure the meeting 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. Planners 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 at­ tendees fill out surveys about their experiences at the event. Planners can ask specific questions about what the attendees learned, how well organized the meeting or convention appeared, and how they felt about the overall experience. If the purpose of a meeting or convention is publicity, a good measure of success would be how much press coverage the event received. A more precise measure­ ment 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 employees and improve company morale, the planner might track employee turnover before and after the meeting. An important part of all these different functions of meeting professionals is establishing and maintaining relationships. Meeting and convention planners interact with a variety of people 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 con­ tact 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, convinc­ ing members that attending the meeting is worth their time and expense. 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 procedures and rules for procuring materials and booking lodging for govern­ ment employees. Convention service managers, meeting professionals who work in hotels, convention centers, and similar establishments, act as liaisons between the meeting facility and association, corporate, or government planners. They present 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-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Partner Donor  Meeting and covention planners spend most of their time in offices, but during meetings and conventions they work on-site.  tics; registrars, who handle advance registration and payment, name badges, and the set-up of on-site registration; and education planners, who coordinate the meeting content, including speakers and topics. In organizations that hold very large or complex meet­ ings, 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.  Working Conditions 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 numerous deadlines, and orchestrate the activi­ ties of several different 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. Working 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 large meeting. During meetings or conventions, plan­ ners may work very long days, possibly starting 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 speakers and meeting attendees from around the world, and they usually enjoy a high level of autonomy.  Training, Other Qualifications, and Advancement Meeting and convention planners can qualify for their jobs through a variety of methods. Many migrate into the occupa­ tion from other occupations when they are given meeting plan­ ning duties in addition to their other duties. For example, an administrative assistant may begin planning small meetings and  Management, Business, and Financial Occupations gradually move into a full-time position as a meeting and con­ vention planner. Others with a variety of educational or work backgrounds may seek out meeting and convention planning positions. Although there are some certification programs and college and university courses in meeting and convention plan­ ning available, a large proportion of the skills needed is learned on the job and through experience. Many employers prefer a person with a bachelor’s degree, but this is not always required. The proportion with a bachelor s degree is increasing because the work and responsibilities are becoming more complex, causing employers to prefer workers with more formal education. Planners have backgrounds in a variety of disciplines, but some useful undergraduate majors are marketing, public relations, communications, business, and hotel or hospitality management. A few schools offer courses or degree programs in meeting and event management. Individuals who have studied hospitality management may start out with greater responsibilities than those with other academic backgrounds. Because formal education is increasingly important, those who enter the occupation may enhance their pro­ fessional standing by enrolling in meeting planning courses offered by professional meeting and convention planning organizations, colleges, or universities. Others enter the occupation after working in hotel sales or as marketing or catering coordinators. These are effective ways to learn about meeting and convention planning because these hotel person­ nel work with numerous meeting planners, participate in negotiations for hotel services, and witness many different meetings. Workers who enter the occupation in these ways often start at a higher level than those with bachelor’s degrees and no experience. Meeting and convention planners must have excellent written and verbal communications skills and interpersonal skills. They must be detail-oriented with excellent organizational skills, and they must be able to multi-task, meet tight deadlines, and maintain composure under pressure in a fast-paced environment. Quan­ titative 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. They 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 ad­ dress the industry’s important issues. Entry-level planners, depending upon their education, gen­ erally begin 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. To advance in this occupation, planners must volunteer to take on more responsibility and find new and better ways of doing things in their organizations. The most important factors are demonstrated skill on the job, determination, and gaining the respect of others within the organization. Advancement based solely on education is uncommon. On the other hand, education may improve work performance, and therefore may be an important factor in career development. As meeting and convention planners prove themselves, they are  given greater responsibilities. This may mean taking on a wider range https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  97  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 coordinator, with responsibility for meeting logistics, to program coordinator, with responsibility for booking speakers and formatting the meeting’s program. The next step up may be meeting 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 responsibility for larger meetings and conventions. At least two universities offer bachelor’s degrees with majors in meetings management. Additionally, meeting and convention plan­ ning continuing education programs are offered by a few universities and colleges. These programs are designed 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 during a period of one semester to two years for a certificate of completion. The Convention Industry Council offers the Certified Meeting Professional (CMP) credential, a voluntary certification for meet­ ing and convention planners. Although the CMP is not required, it is widely recognized in the industry and may help in career advancement. In order to qualify, candidates must have a minimum of three years of meeting management experience, full-time employ­ ment 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 services, logistics, and meet­ ing programs. With significant experience, meeting planners may become independent meeting consultants, advance to vice presidents or executive directors of associations, or start their own meeting plan­ ning firms.  Employment  Meeting and convention planners held about 43,000 jobs in 2004. About 30 percent worked for religious, grantmaking, civic, professional, and similar organizations; 17 percent worked for hotels and other accommodation establishments; 9 percent worked for public and private schools, colleges, universities, and training centers; 6 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 2004-14 period, due to growth of business, the increasing globalization of the economy, and increasing use of electronic forms of com­ munication to bring people together. 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 experience. As businesses and organizations become increasingly interna­ tional, meetings and conventions become even more important. 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, videoconferencing, and the Web, face-to-face interaction is still a necessity. In fact, new forms of communication foster interaction and connect individu­ als and groups that previously would not have collaborated. By  98  Occupational Outlook Handbook  increasing the number of human connections, 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 experience corresponding growth in meetings and conferences. For example, the medical and pharmaceutical sectors in particular, because of their high growth and their knowledge-intensive natures, will experience large increases in meeting activity. However, these increases will spur employment growth of meeting professionals in medical and pharmaceutical associations rather than in the industries directly. Professional associations hold conferences and conven­ tions that offer the continuing education, training, and opportuni­ ties to exchange ideas that are vital to medical and pharmaceutical professionals. Unlike workers in some occupations, meeting and convention planners can often 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. Partly because of bioterrorism and homeland security is­ sues, Government agencies are now holding more meetings than ever. Private security and insurance companies also have increased their meeting activity. Because the Government increasingly outsources its non-core functions, this increased activity may spur demand for independent meeting consultants or workers in private meeting planning firms rather than increasing employment of Gov­ ernment meeting planners. Demand for corporate meeting planners is highly susceptible to business cycle fluctuations since meetings are usually among the first expenses to be 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 staffs 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 during downturns in the economy.  Earnings Median annual earnings of meeting and convention planners in May 2004 were $39,620. The middle 50 percent earned between $31,180 and $50,790. The lowest 10 percent earned less than $24,660, and the highest 10 percent earned more than $65,060. In May 2004, me­ dian annual earnings in the industries employing the largest numbers of meeting and convention planners were as follows: Business, professional, labor, political, and similar organizations ........................................................................... $43,100 Traveler accommodation............................................................... 36,440  Related Occupations Meeting and convention planners work to communicate a par­ ticular message or impression about an organization, as do public relations specialists. They coordinate the activities of several operations to create a service for large numbers of people, using organizational, logistical, communication, budgeting, and interper­ sonal 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 produce a television show or movie, negotiate contracts, and communicate with a wide variety of people. Travel agents also use similar skills, such as interacting with many people and coordinating travel arrangements, including hotel accommodations, transportation, and advice on destinations.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Sources of Additional Information For information about meeting planner certification, contact: ► Convention Industry Council, 8201 Greensboro Dr., Suite 300, McLean, VA 22102. Internet: http://www.conventionindustry.org For information about internships and on-campus student meeting planning organizations, contact: >- Professional Convention Management Association, 2301 S. Lake Shore Dr., Suite 1001, Chicago, EL 60616-1419. Internet: http://www.pcma.org For information about meeting planning education, entering the profession, and career paths, contact: >• Meeting Professionals International, 3030 LBJ Fwy., Suite 1700, Dallas, TX 75244-5903. Internet: http://www.mpiweb.org  Tax Examiners, Collectors, and Revenue Agents (0*NET 13-2081.00)  Significant Points  •  Tax examiners, collectors, and revenue agents work for Federal, State, and local governments.  •  A bachelor’s degree in accounting is becoming the standard source of training; in State and local govern­ ment, less formal education or work experience may be sufficient.  •  Employment is expected to grow more slowly than average. Because of the relatively small number of openings, jobseekers can expect to face competition; workers with knowledge of tax laws and experience working with complex tax issues will have the best opportunities.  •  Nature of the Work Taxes are one of the certainties of life, and as long as governments collect taxes, there will be jobs for tax examiners, collectors, and revenue agents. 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 lor accuracy and determine whether tax credits and deduc­ tions are allowed by law. Because many States assess individual income taxes based on the taxpayer’s reported Federal adjusted gross income, tax examiners working for the Federal Government report 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 filed by small businesses. At the entry level, many tax examiners perform clerical duties, such as reviewing tax returns and entering them into a computer system for processing. If there is a problem, tax 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  Management, Business, and Financial Occupations  99  match names and that taxpayers have correctly interpreted the in­ structions 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 handle complicated income, sales, and excise tax returns of businesses and large corporations. As a result, their work differs in a number of ways from that of tax examiners. Entry-level 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 tech­ nology has simplified the research process, 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 to 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 duties, but they still perform field audits or office audits of financial records for business firms. In some cases, local revenue agents also exam­ ine financial records of individuals. These local agents, like their State counterparts, rely on the information contained in Federal tax returns. However, local agents also must be knowledgeable enough to apply local tax laws regarding income, utility fees, or school taxes. Collectors, also called revenue officers in the IRS, deal with delinquent accounts. The process of collecting a delinquent account starts with the revenue agent or tax examiner sending a report to the taxpayer. If the taxpayer makes no effort to resolve the delinquent account, the case is assigned to a collector. When a collector takes a case, he or she first sends the taxpayer a notice. The collector then works with the taxpayer on how to settle the debt. In cases in which taxpayers fail to file a tax return, Federal col­ lectors may request that the IRS prepare the return on a taxpayer’s behalf. In other instances, collectors are responsible for verifying claims that delinquent taxpayers cannot pay their taxes. They inves­ tigate these claims by researching court information 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 summonses for other records. Ultimately, collectors must decide whether the IRS should take a lien—a claim on an as­ set such as a bank account, real estate, or an automobile to settle a debt. Collectors also have the discretion to garnish wages—that is, a portion of earned wages—to collect taxes owed. Digitized fortake FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tMMl  Tax examiners, collectors, and revenue agents review tax returns, conduct audits, and collect overdue taxes. A big part of a collector’s job at the Federal level is imposing and following up on delinquent taxpayers’ payment deadlines. For each case file, collectors must maintain records, including contacts, telephone numbers, and actions taken. Like tax examiners and revenue agents, collectors use comput­ ers to maintain files. Computer technology also gives collectors 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 spe­ cializes 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.  Working Conditions Tax examiners, collectors, and revenue agents generally work a 40-hour week, although some overtime might be needed during the tax season. State and local tax examiners, who may review sales,  100  Occupational Outlook Handbook  gasoline, and cigarette taxes instead of handling tax returns, may have a steadier workload year-round. 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 work in clean, well-lighted offices, either in cubicles or at desks. Sometimes travel is necessary. Revenue agents at both the Federal and State levels spend a significant portion of their time in the offices of private firms, accessing tax-related records. Some agents may be permanently stationed in the offices of large corporations with complicated tax structures. Agents at the local level usually work in city halls or mu­ nicipal buildings. Collectors travel to local courthouses, county and municipal seats of government, businesses, and taxpayers’ homes to look up records, search for assets, and settle delinquent accounts.  Training, Other Qualifications, and Advancement Tax examiners, collectors, and revenue agents work with confiden­ tial financial and personal information; therefore, trustworthiness is crucial for maintaining the confidentiality of individuals and businesses. Applicants for Federal Government jobs must submit to a background investigation. A degree in accounting is becoming the standard source of training for tax examiners, collectors, and revenue agents. A bachelor’s degree generally is required for employment with the Federal Government. In State and local governments, prospective workers may be able to enter the occupation with an associate’s degree in accounting or with a combination of related tax and accounting work experience and some college-level business classes. For more advanced entry-level positions, applicants must have a bachelor’s degree; demonstrate specialized experience working with tax records, tax laws and regulations, documents, financial accounts, or similar records; or have some combination of postsecondary education and specialized experience. Tax examiners must be able to understand fundamental tax regu­ lations and procedures, pay attention to detail, and cope well with deadlines. After they are hired, tax examiners receive some formal training. In addition, annual employer-provided updates keep tax examiners current with changes in procedures and regulations. Revenue agents need strong analytical, organizational, and time management skills. They also must be able to work independently, because they spend so much time away from their home office, and they must keep current with changes in the tax code and laws. Newly hired revenue agents expand their accounting knowledge and remain up to date by consulting auditing manuals and other sources for detailed information about individual industries. Employers also continually offer training in new auditing techniques and tax-related issues and court decisions. Collectors need good interpersonal and communication skills because they deal directly with the public and because their reports are scrutinized when the IRS must legally justify attempts to seize assets. They also must be able to act independently and to exercise good judgment in deciding when and how to collect a debt. Appli­ cants for collector jobs need experience demonstrating knowledge of business and financial practices or knowledge of credit operations and collection of delinquent accounts. Entry-level collectors receive formal and on-the-job training under an instructor’s guidance before working independently. Col­ lectors usually complete initial training by the end of their second year of service, but may receive advanced technical instruction as they gain seniority and take on more difficult cases. Also, collectors are encouraged to continue their professional education by attending meetings to exchange information about how changes in tax laws affect collection methods.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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. As revenue 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 as­ sisting in criminal investigations, auditing the books of known or suspected criminals such as drug dealers or money launderers. Some agents work with grand juries to help secure indictments. Others become international agents, assessing taxes on companies with subsidiaries abroad. Collectors who demonstrate leadership skills and a thorough knowledge of collection activities may advance to supervisory or managerial collector positions, in which they oversee the activities of other collectors. It is only these higher level supervisors and managers who may authorize the more serious actions against in­ dividuals and businesses. The more complex collection attempts, which usually are directed at larger businesses, are reserved for collectors at these higher levels.  Employment In 2004, tax examiners, revenue agents, and collectors held about 76,000 jobs at all levels of government. About half worked for the Federal Government, 3 out of 10 for State governments, and the remainder in local governments. Among those employed by the IRS, tax examiners and revenue agents predominate because of the need to examine or audit tax returns. Collectors make up a smaller proportion, because most disputed tax liabilities do not require enforced collection.  Job Outlook Employment of tax examiners, collectors, and revenue agents is projected to grow more slowly than the average for all oc­ cupations during the 2004-14 projection period. Because of the relatively small number of openings, jobseekers can expect to face competition. Demand for tax examiners, revenue agents, and tax collec­ tors will stem from changes in government policy toward tax enforcement and from growth in the number of businesses. The Federal Government is expected to increase its tax enforce­ ment efforts. Also, new technology and information sharing among tax agencies make it easier for agencies to pinpoint po­ tential offenders, increasing the number of cases for audit and collection. These two factors should increase the demand for revenue agents and tax collectors. The IRS plans to streamline its tax examination and collections process, and both State and Federal tax agencies are turning their enforcement focus to higher income taxpayers and businesses, which file more complicated tax returns. Because of these shifts, workers with knowledge of tax laws and experience working with complex tax issues will have the best opportunities. Several factors may limit the growth of these occupations. Be­ cause much of the simpler work done by tax examiners, collec­ tors, and revenue agents is now computerized, productivity has increased, limiting the need for more workers. The work of tax examiners is especially well suited to automation, adversely af­ fecting demand for these workers in particular. In addition, more than 40 States and many local tax agencies contract out their tax collection functions to private-sector collection agencies in order to reduce costs, and this trend is likely to continue. In 2005, the IRS received Congressional approval to begin outsourcing tax  Management, Business, and Financial Occupations collection. IRS outsourcing will dampen growth in employment of revenue officers but is not expected to affect employment of revenue agents. Employment at the State and local levels may fluctuate with the overall state of the economy. When the economy is contracting, State and local governments are likely to freeze hiring and lay off workers in response to budgetary constraints. Opportunities at the Federal level will reflect the tightening or relaxation of budget constraints imposed on the IRS, the primary employer of these workers.  Earnings  In May 2004, median annual earnings for all tax examiners, collec­ tors, and revenue agents were $43,490. The middle 50 percent earned between $32,520 and $62,570. The bottom 10 percent earned less than $25,120, and the top 10 percent earned more than $81,240. However, median earnings vary considerably, depending on the level of government. At the Federal level, May 2004 median annual earnings for tax examiners were $52,830; at the State level, they were $41,920; and at the local level, they were $31,310. Earn­ ings also vary by occupational specialty. For example, in the Federal Government in 2005, tax examiners earned an average of $36,963, revenue agents earned $81,417, and tax specialists earned $54,364.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  101  Related Occupations Tax examiners, collectors, and revenue agents analyze and interpret financial data. Occupations with similar responsibilities include accountants and auditors, budget analysts, cost estimators, financial analysts and personal financial advisors, financial managers, and loan officers.  Sources of Additional Information Information on obtaining positions as tax examiners, collectors, or revenue agents with the Federal Government is available from the Office of Personnel Management through USAJOBS, the Fed­ eral 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 informa­ tion about tax examiner, collector, or revenue agent jobs at those levels of government. For information about careers at the Internal Revenue Service, contact: ► Internal Revenue Service, 1111 Constitution Ave. NW., Washington, D.C. 20224. Internet: http://www.jobs.irs.gov/index.html  Professional and Related Occupations ____ Computer and Mathematical Occupations Actuaries (0*NET 15-2011.00)  Significant Points  •  A strong background in mathematics is essential; actuaries 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 candidates.  Nature of the Work One of the main functions of actuaries is to help businesses assess the nsk of certain events occurring and to formulate policies that mini­ mize the cost of that risk. For this reason, actuaries are essential to the insurance industry. Actuaries assemble and analyze data to estimate the probability and likely cost of the occurrence of an event such as death, sickness, injury, disability, or loss of property. Actuaries also address financial questions, including those involving the level of pension contributions required to produce a certain retirement income and the way in which a company should invest resources to maximize its return on investments in light of potential risk. Using their broad knowledge of statistics, finance, and business, actuaries 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, specializing in life and health insurance or property and casualty insurance. They produce probability tables which determine the likelihood that a poten­ tial future event will generate a claim. From these tables, they estimate the amount a company can expect to pay in claims. For example, property and casualty actuaries calculate the expected amount payable in claims resulting from automobile accidents, an amount that varies with 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. The premium must be profitable, yet competitive with other insurance companies. Within the life and health insurance fields, ac­ tuaries are helping to develop long-term-care insurance and annuity policies, the latter a growing investment tool for many individuals. Actuaries in other financial services industries manage credit and price corporate security offerings. They also devise new investment tools to help their firms compete with other financial services companies. Pension actuaries working under the provi­ sions of the Employee Retirement Income Security Act (ERISA) of 1974 evaluate pension plans covered by that Act and report on the plans’ financial soundness to participants, sponsors, and Federal regulators. Actuaries working in government help manage social programs such as Social Security and Medicare. Actuaries may play a role in determining company policy and may need to explain complex technical matters to company executives, 102 for FRASER Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  government officials, shareholders, policyholders, or the public in general. They may testify before public agencies on proposed legislation affecting 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 with existing lines of business by forecasting demand in competi­ tive settings. Both staff actuaries employed by businesses and consulting ac­ tuaries provide advice to clients on a contract basis. The duties of most consulting actuaries are similar to those of other actuaries. For example, some may evaluate company pension plans by calculating the future value of employee and employer contributions and deter­ mining whether the amounts are sufficient to meet the future needs of retirees. Others help companies reduce their insurance costs by lowering the level of risk the companies assume. For instance, they may provide advice on how to lessen the risk of injury on the job, which will lower worker’s compensation costs. Consulting actuaries sometimes testify in court regarding the value of the potential lifetime earnings of a person who is disabled or killed in an accident, the  Actuaries need a strong background in mathematics.  Professional and Related Occupations current value of future pension benefits (in divorce cases), or other values arrived at by complex calculations. Many consulting actu­ aries work in reinsurance, a field in which one insurance company arranges to share a large prospective liability policy with another insurance company in exchange for a percentage of the premium.  Working Conditions  Actuaries have desk jobs, and their offices usually are comfortable and pleasant. They often work at least 40 hours a week. Some actuaries __particularly consulting actuaries—may travel to meet with clients. Consulting actuaries also may experience more erratic em­ ployment and be expected to work more than 40 hours per week.  Employment  Actuaries held about 18,000 jobs in 2004, with 6 out of 10 em­ ployed in the insurance industry. A growing number of actuaries work for firms providing a variety of corporate services, especially management and public relations, or for firms offering consulting services. A relatively small number of actuaries are employed by security and commodity brokers or by government agencies.  Training, Other Qualifications, and Advancement Actuaries need a strong background in mathematics. Applicants for beginning actuarial jobs usually have a bachelor s degree in math­ ematics, actuarial science, statistics, or a business-related discipline such as economics, finance, or accounting. About 100 colleges and universities 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 mathematics, including calculus, probability, and statistics, and has demonstrated this knowl­ edge by passing one or two actuarial exams required for professional designation. Courses in economics, accounting, finance, and insur­ ance also are useful. Companies increasingly prefer well-rounded individuals who, in addition to having acquired a strong technical background, have some training in liberal arts and business and possess strong communication skills. In addition to knowledge of mathematics, computer skills are be­ coming increasingly important. Actuaries should be able to de velop and use spreadsheets and databases, as well as standard statistical analysis software. Knowledge of computer programming languages, such as Visual Basic, also is useful. Two professional societies sponsor programs leading to full pro­ fessional status in their specialty. The Society ot Actuaries (SOA) administers a series of actuarial examinations in the life insurance, health benefits systems, retirement systems, and finance and invest­ ment fields. The Casualty Actuarial Society (CAS) gives a series of examinations in the property and casualty field, which includes fire, accident, medical malpractice, worker’s compensation, and personal injury liability. The first four exams in the SOA and CAS examination senes are jointly sponsored by the two societies and cover the same material. For this reason, students do not need to commit themselves to a specialty until they have taken the initial examinations, which test an individual’s competence in probability, calculus, statistics, and other branches of mathematics. The first few examinations help students evaluate their potential as actuaries. Many prospective ac­ tuaries begin taking the exams in college with the help of self-study guides and courses. Those who pass one or more examinations have better opportunities for employment at higher starting salaries than those who do not. After graduating from college, most prospective actuaries gam on-the job experience at an insurance company or consulting firm, while at the same time working to complete the examination   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  103  process. Actuaries are encouraged to finish the entire series of examinations as soon as possible, advancing first to the Associate level (with an ASA or ACAS designation) and then to the Fellowship level (FSAor FCAS designation). Advanced topics in the casualty field include investment and assets, dynamic financial analysis, and valuation of insurance. Candidates in the SOA examination series must choose a specialty—group and health benefits, individual life and annuities, pensions, investments, or finance. Examinations are given twice a year, in the spring and the fall. Although many companies allot time to their employees for study, home study is required to pass the examinations, and many actuaries study for months to prepare for each examination. It is likewise common for employers to pay the hundreds of dollars for examination fees and study materials. Most actuaries reach the Associate level within 4 to 6 years and the Fellowship level a few years later. Specific requirements apply to pension actuaries, who verify the financial status of defined benefit pension plans for the Federal Government. These actuaries must be enrolled by the Joint Board of the U.S. Treasury Department and the U.S. Department of Labor for the Enrollment of Actuaries. To qualify for enrollment, appli­ cants must meet certain experience and examination requirements, as stipulated by the Board. To perform their duties effectively, actuaries must keep up with current economic and social trends and legislation, as well as with health, business, finance, and economic developments that could affect insurance or investment practices. Good communication and interpersonal skills also are important, particularly for prospective consulting actuaries. Beginning actuaries often rotate among different jobs in an organization to learn various actuarial operations and phases of insurance work, such as marketing, underwriting, and product development. At first, they prepare data for actuarial projects or perform other simple tasks. As they gain experience, actuaries may supervise clerks, prepare correspondence, draft reports, and conduct research. They may move from one company to another early in their careers as they advance to higher positions. Advancement depends largely on job performance and the number of actuarial examinations passed. Actuaries with a broad knowledge of the insurance, pension, investment, or employee benefits fields can rise to administrative and executive positions in their companies. Actuaries with supervisory ability may advance to management positions in other areas, such as underwriting, account­ ing, data processing, marketing, and advertising. Some actuaries assume college and university faculty positions. (See the statement on teachers—postsecondary elsewhere in the Handbook.)  Job Outlook  Employment of actuaries is expected to grow faster than the average for all occupations through 2014. Employment opportunities should remain good for those who qualify, because the stringent qualifying examination system restricts the number of candidates. Employment growth in the insurance industry is expected to continue at a stable pace, while more significant job growth is likely in some other industries. In addition, a small number of jobs will open up each year to replace actuaries who leave the occupation to retire or who find new jobs. Steady demand by the insurance industry—the largest employer of actuaries—should ensure the creation of new actuary jobs in this key industry over the projection period. Actuaries will continue to be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks. Although employ­ ment of actuaries in life insurance had begun to decline recently, the growing popularity of annuities, a financial product offered primarily by life insurance companies, has resulted in some job  104  Occupational Outlook Handbook  growth in this specialty. Also, new actuarial positions have been created in property-casualty insurance to analyze evolving risks, such as terrorism. Some new employment opportunities for actuaries should also become available in the health care field as health care issues and Medi­ care reform continue to receive growing attention. Increased 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 employment with consulting firms. Companies that may not find it cost effective to hire their own actuaries are increasingly hiring consulting actuaries to analyze various risks. Other areas with notable growth prospects are information services and accounting services. Also, because actuarial skills are increasingly seen as useful to other industries that deal with risk, such as the airline and the banking industries, additional job openings may be created in these industries. The best job prospects for entry-level positions will be for those candidates who have passed at least one or two of the initial actuarial exams. Candidates with additional knowledge or experience, such as those who possess computer programming skills, will be particularly attractive to employers. Most jobs in this occupation are located in urban areas, but opportunities vary by geographic location. States in which actuary jobs are concentrated include Illinois, New Jersey, New York, and Connecticut.  Earnings Median annual earnings of actuaries were $76,340 in May 2004. The middle 50 percent earned between $54,770 and $107,650. According to the National Association of Colleges and Employ­ ers, annual starting salaries for graduates with a bachelor’s degree in actuarial science averaged $52,741 in 2005. Insurance companies and consulting firms give merit increases to actuaries as they gain experience and pass examinations. Some companies also offer cash bonuses for each professional designa­ tion achieved.  Related Occupations Actuaries need a strong background in mathematics, statistics, and related fields. Other workers whose jobs involve related skills in­ clude accountants and auditors, budget analysts, economists, market and survey researchers, financial analysts and personal financial advi­ sors, insurance underwriters, mathematicians, and statisticians.  Sources of Additional Information Career information on actuaries specializing in pensions is avail­ able from: > American Society of Pension Actuaries, 4245 N. Fairfax Dr., Suite 750 Arlington, VA 22203. Internet: http://www.aspa.org For information about actuarial careers in life and health insur­ ance, employee benefits and pensions, and finance and investments, contact: ► 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 casualty insurance, contact: ► Casualty Actuarial Society (CAS), 1100 N. Glebe Rd„ Suite 600 Arlington, VA 222010425. Internet: http://www.casact.org The SOA and CAS jointly sponsor a Web site for those interested in pursuing an actuarial career. Internet: http://w ww.BcAnActuarj.org For general information on a career as an actuary, contact: > American Academy of Actuaries, 1100 17th St. NW„ 7th Floor, Wash­ ington, DC 20036. Internet: http://www.actuary.org  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Computer Programmers (0*NET 15-1021.00)  Significant Points •  Sixty-seven percent of computer programmers held a college or higher degree in 2004; nearly half held  a bachelor s degree, and about 1 in 5 held a graduate degree. •  Employment is expected to grow much more slowly than that for other computer specialists.  •  Prospects likely will be best for college graduates with knowledge of a variety of programming languages and tools, those with less formal education or its equivalent in work experience are apt to face strong competition for programming jobs.  Nature of the Work Computer programmers write, test, and maintain the detailed in­ structions, called programs, that computers must follow to perform their functions. Programmers also conceive, design, and test logi­ cal structures tor solving problems by computer. Many technical innovations in programming—advanced computing technologies and sophisticated new languages and programming tools—have redefined the role of a programmer and elevated much of the pro­ gramming work done today. Job titles and descriptions may vary, depending on the organization. In this occupational statement,  computer programmers are individuals whose main job function is programming; this group has a wide range of responsibilities and educational backgrounds. Computer programs tell the computer what to do—which infor­ mation to identify and access, how to process it, and what equipment to use. Programs vary widely depending on the type of information to be accessed or generated. For example, the instructions involved in updating financial records are very different from those required to duplicate conditions on an aircraft for pilots training in a flight simulator. Although simple programs can be written in a few hours, programs that use complex mathematical formulas whose solutions can only be approximated or that draw data from many existing systems may require more than a year of work. In most cases, several programmers work together as a team under a senior programmer’s supervision. Programmers write programs according to the specifications determined primarily by computer software engineers and systems analysts. (Separate statements on computer software engineers and on computer systems analysts appear elsewhere in the Handbook) After the design process is complete, it is the job of the programmer to convert 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 most advanced object-oriented languages, such as Java, C++, or ACTOR. Different programming languages are used depending on the purpose of the program. COBOL, for example, is commonly used for business ap­ plications, whereas Fortran (short for “formula translation”) is used in science and engineering. C++ is widely used for both scientific and business applications. Extensible Markup Language (XML) has become a popular programming tool for Web programmers, along with J2EE (Java 2 Platform). Programmers generally know more than one programming language and, because many languages are similar, they often can learn new languages relatively easily. In practice’  Professional and Related Occupations programmers often are referred to by the language they know, such as Java programmers, or by the type of function they perform or environment in which they work—for example, database program­ mers, mainframe programmers, or Web programmers. Many programmers update, repair, modify, and expand existing programs. When making changes to a section of code, called a rou­ tine, programmers need to make other users aware of the task that the routine is to perform. They do this by inserting comments in the coded instructions so that others can understand the program. Many programmers use computer-assisted software engineering (CASE) tools to automate much of the coding process. These tools enable a programmer to concentrate on writing the unique parts of the pro­ gram, because the tools automate various pieces of the program being built. CASE tools generate whole sections of code automatically, rather than line by line. Programmers also use libraries of basic code that can be modified or customized for a specific application. This approach yields more reliable and consistent programs and increases programmers’ productivity by eliminating some routine steps. Programmers test a program by running it to ensure that the instructions are correct and that the program produces the desired outcome. If errors do occur, the programmer must make the appro­ priate change and recheck the program until it produces the correct results. This process is called testing and debugging. Program­ mers may continue to fix these problems throughout the life of a program. Programmers working in a mainframe environment, which involves a large centralized computer, may prepare instructions for a computer operator who will run the program. (A separate state­ ment on computer operators appears elsewhere in the Handbook) Programmers also may contribute to a manual for persons who will be using the program. 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 organization. They also may revise existing packaged software or customize generic applications which are frequently purchased from vendors. Systems program­ mers, in contrast, write programs to maintain and control computer systems software, such as operating systems, networked systems, and database systems. These workers make changes in the instruc­ tions that determine how the network, workstations, and central processing unit of the system handle the various jobs they have been given and how they communicate with peripheral equipment such as terminals, printers, and disk drives. Because of their knowledge of the entire computer system, systems programmers often help applications programmers determine the source of problems that  over many of the tasks previously performed by programmers. For example, the growing use of packaged software, such as spreadsheet and database management software packages, allows users to write simple programs to access data and perform calculations.  Working Conditions  Programmers generally work in offices in comfortable surroundings. Many programmers may work long hours or week­ ends to meet deadlines or fix critical problems that occur during off hours. Telecommuting is becoming common for a wide range of computer professionals, including computer programmers. As computer networks expand, more programmers are able to make corrections or fix problems remotely using modems, e-mail, and the Internet to connect to a customer’s computer. Like other workers who spend long periods in front of a com­ puter terminal typing at a keyboard, programmers are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.  Training, Other Qualifications, and Advancement Although there are many training paths available for programmers, mainly because employers’ needs are so varied, the level of education and experience employers seek has been rising due to the growing number of qualified applicants and the specialization involved with most programming tasks. Bachelor’s degrees are commonly re­ quired, although some programmers may qualify for certain jobs with 2-year degrees or certificates. The associate degree is a widely used  ■ft Mmim  may occur with their programs.  Programmers in software development companies may work directly with experts from various fields to create software—either programs designed for specific clients or packaged software for general use—ranging from games and educational software to pro­ grams for desktop publishing and financial planning. Programming of packaged software constitutes one of the most rapidly growing segments of the computer services industry. In some organizations, particularly small ones, workers com­ monly known as programmer-analysts are responsible for both the systems analysis and the actual programming work. (A more detailed description of the work of programmer-analysts is presented in the statement on computer systems analysts elsewhere in the Handbook.) Advanced programming languages and new objectoriented programming capabilities are increasing the efficiency and productivity of both programmers and users. The transition from a mainframe environment to one that is based primarily on personal computers (PCs) has blurred the once rigid distinction between the programmer and the user. Increasingly, adept end users are taking   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  105  Computer programmers tell the computer what to do.  106  Occupational Outlook Handbook  entry-level credential for prospective computer programmers. Most community colleges and many independent technical institutes and proprietary schools offer an associate degree in computer science or a related information technology field. Employers primarily are interested in programming knowledge, and computer programmers can become certified in a programming language such as C++ or Java. College graduates who are interested in changing careers or developing an area of expertise also may return to a 2-year community college or technical school for addi­ tional training. In the absence of a degree, substantial specialized experience or expertise may be needed. Even when hiring program­ mers with a degree, employers appear to place more emphasis on previous experience. Some computer programmers hold a college degree in computer science, mathematics, or information systems, whereas others have taken special courses in computer programming to supplement their degree in a field such as accounting, inventory control, or another area of business. As the level of education and training required by employers continues to ri se, the proportion of programmers with a college degree should increase in the future. As indicated by the following tabulation, more than two-thirds of computer programmers had a bachelor’s or higher degree in 2004. High school graduate or less Some college, no degree..... Associate degree................. Bachelor’s degree................ Graduate degree...................  Percent 8.3 ... 14.1 ... 10.2 ... 49.1 ... 18.3 ...  Required skills vary from job to job, but the demand for various skills generally is driven by changes in technology. Employers using computers for scientific or engineering applications usually prefer col­ lege graduates who have degrees in computer or information science, mathematics, engineering, or the physical sciences. Graduate degrees in related fields are required for some jobs. Employers who use com­ puters for business applications prefer to hire people who have had college courses in management information systems and business and who possess strong programming skills. Although knowledge of tra­ ditional languages still is important, employers are placing increasing emphasis on newer, object-oriented programming languages and tools such as C++ and Java. Additionally, employers are seeking persons familiar with fourth-generation and fifth-generation languages that involve graphic user interface and systems programming. Employers also prefer applicants who have general business skills and experience related to the operations of the firm. Students can improve their em­ ployment prospects by participating in a college work-study program or by undertaking an internship. Most systems programmers hold a 4-year degree in computer science. Extensive knowledge of a variety of operating systems is essential for such workers. This includes being able to configure an operating system to work with different types of hardware and having the skills needed to adapt the operating system to best meet the needs of a particular organization. Systems programmers also must be able to work with database systems, such as DB2, Oracle, or Sybase. When hiring programmers, employers look for people with the necessary programming skills who can think logically and pay close attention to detail. The job calls for patience, persistence, and the ability to work on exacting analytical work, especially under pressure. Ingenuity and creativity are particularly important when programmers design solutions and test their work for poten­ tial 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  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  interact directly with users, employers want programmers who are able to communicate with nontechnical personnel. Entry-level or junior programmers may work alone on simple assignments after some initial instruction, or they may be assigned 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 courses sponsored by their employer or by software vendors, or offered through local community colleges and universities. For skilled workers who keep up to date with the latest technol­ ogy* 1he prospects for advancement are good. In large organizations, programmers may be promoted to lead programmer and be given supervisory responsibilities. Some applications programmers may move into systems programming after they gain experience and take courses in systems software. With general business experience, pro­ grammers may become programmer-analysts or systems analysts or be promoted to managerial positions. Other programmers, with special­ ized knowledge and experience with a language or operating system, may work in research and development for multimedia or Internet technology and may even become computer 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. Certification is a way to demonstrate a level of competence, and may provide a jobseeker with a competitive advantage. In addition to language-specific certificates that a programmer can obtain, product vendors or software firms also offer certification and may require professionals who work with their products to be certified. Voluntary certification also is available through various other organizations.  Employment Computer programmers held about 455,000jobs in 2004. Program­ mers are employed in almost every industry, but the largest concen­ tration is in computer systems design and related services. Large numbers of programmers also work for telecommunications com­ panies, software publishers, financial institutions, insurance carriers, educational institutions, and government agencies. Many computer programmers are employed on a temporary or contract basis or work as independent consultants, providing com­ panies expertise with new programming languages or specialized areas of application. Rather than hiring programmers as permanent employees and then laying them off after ajob is completed, employers can contract with temporary help agencies, with consulting firms, or with programmers themselves. A marketing firm, for example, may require programming services only to write and debug the software necessary to get a new customer database running. Bringing in an independent contractor or consultant with experience in a new or advanced programming language enables the firm to complete the job without having to retrain existing workers. Such jobs may last anywhere from several weeks to a year or longer. There were 25,000 self-employed computer programmers in 2004.  Job Outlook As programming tasks become increasingly sophisticated and ad­ ditional levels of skill and experience are demanded by employers, graduates of 2-year programs and people with less than a 2-year degree or its equivalent in work experience will face strong competi­ tion for programming jobs. Competition for entry-level positions, however, also can affect applicants with a bachelor’s degree. Pros­ pects should be best for college graduates with knowledge of, and experience working with, a variety of programming languages and tools including C++ and other object-oriented languages such as Java, as well as newer, domain-specific languages that apply  Professional and Related Occupations to computer networking, database management, and Internet applica­ tion development. Obtaining vendor-specific or language-specific certification also can provide a competitive edge. Because demand fluctuates with employers’ needs, jobseekers should keep up to date with the latest skills and technologies. Individuals who want to become programmers can enhance their prospects by combining the appropriate formal training with practical work experience. Employment of programmers is expected to grow more slowly than the average for all occupations through the year 2014. So­ phisticated computer software now has the capability to write basic code, eliminating the need for many programmers to do this routine work. 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 of the programming functions can be transferred from programmers to other types of information workers, such as computer software engineers. Another factor limiting growth in employment is the outsourcing of these jobs to other countries. Computer programmers can perform their job function from anywhere in the world and can digitally trans­ mit their programs to any location via e-mail. Programmers are at a much higher risk of having their jobs outsourced abroad than are workers involved in more complex and sophisticated information technology functions, such as software engineering, because com­ puter programming has become an international language, requiring little localized or specialized knowledge. Additionally, the work of computer programmers can be routinized, once knowledge of a particular programming language is mastered. Nevertheless, employers will continue to need programmers who have strong technical skills and who understand an employer s business and its programming requirements. This means that pro­ grammers will have to keep abreast of changing programming lan­ guages and techniques. Given the importance of networking and the expansion of client/server, Web-based, and wireless environments, organizations will look for programmers who can support data com­ munications and help implement electronic commerce and intranet strategies. Demand for programmers with strong object-oriented 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. Pro­ grammers 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 pro­ grammers who are familiar with digital security issues and skilled in using appropriate security technology. Jobs for both systems and applications programmers should be most plentiful in data-processing service firms, software houses, and computer consulting businesses. These types of establishments are part of computer systems design and related services and software publishers, which are projected to be among the fastest growing in­ dustries in the economy over the 2004-14 period. As organizations attempt to control costs and keep up with changing technology, they will need programmers to assist in conversions to new computer lan­ guages and systems. In addition, numerous job openings will result from the need to replace programmers who leave the labor force or transfer to other occupations such as manager or systems analyst.  Median annual earnings of computer programmers were $62,890 in May 2004. The middle 50 percent earned between $47,580 and $81,280 a year. The lowest 10 percent earned less than $36,470; highest 10 percent earned more than $99,610. Median annual Digitized forthe FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  107  earnings in the industries employing the largest numbers of computer programmers in May 2004 are shown below: Software publishers.......................................... Computer systems design and related services Data processing, hosting, and related services. Insurance carriers............................................. Management of companies and enterprises....  $73,060 67,600 64,540 62,990 62,160  According to the National Association of Colleges and Employ­ ers, starting salary offers for graduates with a bachelor’s degree in computer science averaged $50,820 a year in 2005. According to Robert Half International, a firm providing specialized staffing services, average annual starting salaries in 2005 ranged from $52,500 to $83,250 for applications development programmers/analysts, and from $55,000 to $88,250 for software developers. Average starting salaries for mainframe systems pro­ grammers ranged from $50,250 to $67,500 in 2005.  Related Occupations  Other professional workers who deal extensively with data include computer software engineers; computer scientists and database administrators; computer systems analysts; statisticians; mathemati­ cians; engineers; 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 area s largest employers. Further information about computer careers is available Irom: ► Association for Computing Machinery, 1515 Broadway, New York, NY 10036. 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 ► National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  Computer Scientists and Database Administrators____ ____ ___ (0*NET 15-1011.00, 15-1061.00, 15-1081.00, 15-1099.99)_____ ____  Significant Points •  Education requirements range from an associate degree  •  to a doctoral degree. Employment is expected to increase much faster than the average as organizations continue to adopt increas­ ingly sophisticated technologies.  •  Job prospects are favorable.  Nature of the Work  The rapid spread of computers and information technology has generated a need for highly trained workers proficient in various job functions. These workers—computer scientists, database administrators, and network systems and data communication analysts—include a wide range of computer specialists. Job tasks and occupational titles used to describe these work­ ers evolve rapidly, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employers.  108  Occupational Outlook Handbook  Computer scientists work as theorists, researchers, or inventors. Their jobs are distinguished by the higher level of theo­ retical expertise and innovation they apply to complex problems and the creation or application of new technology. Those employed by academic institutions work in areas ranging from complexity theory to hardware to programming-language design. Some work on mul­ tidisciplinary projects, such as developing and advancing uses of virtual reality, extending human-computer interaction, or designing robots. Their counterparts in private industry work in areas such as applying theory; developing specialized languages or information technologies; or designing programming tools, knowledge-based systems, or even computer games. With the Internet and electronic business generating large volumes of data, there is a growing need to be able to store, manage, and extract data effectively. Database administrators work with database management systems software and determine ways to orga­ nize and store data. They identify user requirements, set up computer databases, and test and coordinate modifications to the computer database systems. An organization’s database administrator ensures the performance of the system, understands the platform on which the database runs, and adds new users to the system. Because they also may design and implement system security, database administrators often plan and coordinate security measures. With the volume of sensitive data generated every second growing rapidly, data integrity, backup systems, and database security have become increasingly important aspects of the job of database administrators.  Because networks are configured in many ways, network systems and data communications analysts are needed to design, test, and evaluate systems such as local area networks (LANs), wide area networks (WANs), the Internet, intranets, and other data communica­ tions systems. Systems 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 model­ ing, analysis, and planning; they also may research related products and make necessary hardware and software recommendations. Telecommunications specialists focus on the interaction between computer and communications equipment. These workers 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 mainte­ nance of Web sites and their servers. For example, webmasters are responsible for all technical aspects of a Web site, including performance issues such as speed of access, and for approving the content ol the site. Internet developers or Web developers, also called Web designers, are responsible for day-to-day site creation and design.  Working Conditions Computer scientists and database administrators normally work in offices or laboratories in comfortable surroundings. They usually work about 40 hours a week—the same as many other professional or office workers do. However, evening or weekend work may be necessary to meet deadlines or solve specific problems. With the technology available today, telecommuting is common for computer professionals. As networks expand, more work can be done from remote locations through modems, laptops, electronic mail, and the Internet. Like other workers who spend long periods in front of a computer terminal typing on a keyboard, computer scientists and database ad­ ministrators 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  Database administrators determine ways to organize and store data.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Rapidly changing technology requires an increasing level of skill and education on the part of employees. Companies look for pro­ fessionals with an ever-broader background and range of skills, in­ cluding not only technical knowledge, but also communication and other interpersonal skills. While there is no universally accepted way to prepare for a job as a network systems analyst, computer scientist, or database administrator, most employers place a pre­ mium on some formal college education. A bachelor’s degree is a prerequisite for many jobs; however, some jobs may require only a 2-year degree. Relevant work experience also is very important. For more technically complex jobs, persons with graduate degrees are preferred. For database administrator positions, many employers seek applicants who have a bachelor’s degree in computer science, infor­ mation science, or management information systems (MIS). MIS programs usually are part of the business school or college and differ considerably from computer science programs, emphasiz­ ing business and management-oriented coursework and business computing courses. Employers increasingly seek individuals with a master s degree in business administration (MBA), with a concentra­ tion in information systems, as more firms move their business to the Internet. For some network systems and data communication  Professional and Related Occupations  109  analysts, such as webmasters, an associate degree or certificate is sufficient, although more advanced positions might require a computer-related bachelor’s degree. For computer and information scientists, a doctoral degree generally is required because of the highly technical nature of their work. Despite employers’ preference for those with technical degrees, persons with degrees in a variety of majors find employment in these occupations. The level of education and the type of training that employers require depend on their needs. One factor affecting these needs is changes in technology. Employers often scramble to find workers capable of implementing new technologies. Workers with formal education or experience in information security, for example, are in demand because of the growing need for their skills and services. Employers also look for workers skilled in wireless technologies as wireless networks and applications have spread into  versities, and private training institutions offer continuing education. Additional training may come from professional development semi­ nars offered by professional computing societies. Certification is a way to demonstrate a level of competence in a particular field. Some product vendors or software firms ofler certification and require professionals who work with their products to be certified. 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 a specific type of database management. Voluntary cer­ tification also is available through various organizations associated with computer specialists. Professional certification may afford a  many firms and organizations. Most community colleges and many independent technical insti­ tutes 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 suited to the level of training that such programs offer. Employers usually look for people who have broad knowledge and experience 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 usu­ ally want systems analysts to have business management or closely related skills, while a background in the physical sciences, applied mathematics, or engineering is preferred for work in scientifically oriented organizations. Art or graphic design skills may be desirable  Computer scientists and database administrators held about 507,000 jobs in 2004, including about 66,000 who were self-employed. Employment was distributed among the detailed occupations as  for webmasters or Web developers. Jobseekers can enhance their employment opportunities by participating in internship or co-op programs offered through their schools. Because many people develop advanced computer skills in a noncomputer occupation and then transfer those skills to a com­ puter occupation, a background in the industry in which the person’s job is located, such as financial services, banking, or accounting, can be important. Others have taken computer science courses to supple­ ment their study in fields such as accounting, inventory control, or other business areas. 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 is important. Although these computer specialists sometimes work independently, they frequently work in teams on large projects. They must be able to communicate effectively with computer personnel, such as program­ mers and managers, as well as with users or other staff who may have no technical computer background. Computer scientists employed in private industry may advance into managerial or project leadership positions. Those employed in academic institutions can become heads of research departments or published authorities in their field. Database administrators may advance into managerial positions, such as chief technology offi­ cer, on the basis of their experience managing data and enforcing security. Computer specialists with work experience and consider­ able 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 uni­  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  jobseeker a competitive advantage.  Employment  follows: Network systems and data communication analysts Database administrators.......................................... Computer and information scientists, research....... Computer specialists, all other................................  231.000 104.000 22,000  149.000  Although they are increasingly employed in every sector of the economy, the greatest concentration of these workers is in the computer systems design and related services industry. Firms in this industry provide services related to the commercial use of comput­ ers on a contract basis, including custom computer programming services; computer systems integration design services; computer facilities management services, including computer systems or data processing facilities support services for clients; and other computer-related services, such as disaster recovery services and software installation. Many computer scientists and database administrators are employed by Internet service providers; Web search portals; and data processing, hosting, and related services firms. Others work for government, manufacturers of computer and electronic products, insurance companies, financial institutions, and universities. A growing number of computer specialists, such as network and data communications analysts, are employed on a temporary or contract basis; many of these individuals are self-employed, work­ ing independently as contractors or consultants. For example, a company installing a new computer system may need the services of several network systems and data communication analysts just to get the system running. Because not all of the analysts would be needed once the system is functioning, the company might contract for such employees with a temporary help agency or a consulting firm or with the network systems analysts themselves. Such jobs may last from several 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, experienced consultants then train a company’s in-house staff as a project develops.  Job Outlook Computer scientists and database administrators should continue to enjoy favorable job prospects. As technology becomes more sophisticated and complex, however, employers 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  110  Occupational Outlook Handbook  enjoy favorable employment prospects. College graduates with a bachelor’s degree in computer science, computer engineering, information science, or MIS also should enjoy favorable prospects, particularly if they have supplemented their formal education with practical experience. Because employers continue to seek com­ puter specialists who can combine strong technical skills with good interpersonal and business skills, graduates with degrees in fields other than computer science who have had courses in computer programming, systems analysis, and other information technology areas also should continue to find jobs in these computer fields. In fact, individuals with the right experience and training can work in these computer occupations regardless of their college major or level of formal education. Computer scientists and database administrators are expected to be among the fastest growing occupations through 2014. Employ­ ment of these computer specialists is expected to grow much faster than the average for all occupations as organizations continue to adopt and integrate increasingly sophisticated technologies. Job increases will be driven by very rapid growth in computer systems design and related services, which is projected to be one of the fastest growing industries in the U.S. economy. Job growth will not be as rapid as during the previous decade, however, as the in­ formation technology sector begins to mature and as routine work is increasingly outsourced overseas. In addition to growth, many job openings will arise annually from the need to replace workers who move into managerial positions or other occupations or who leave the labor force. The demand for networking to facilitate the sharing of informa­ tion, the expansion of client-server environments, and the need for computer specialists to use their knowledge and skills in a prob­ lem-solving capacity will be major factors in the rising demand for computer scientists and database administrators. Moreover, falling prices of computer hardware and software should continue to induce more businesses to expand their computerized operations and inte­ grate new technologies into them. To maintain a competitive edge and operate more efficiently, firms will keep demanding computer specialists who are knowledgeable about the latest technologies and are able to apply them to meet the needs of businesses. Increasingly, more sophisticated and complex technology is being implemented across all organizations, fueling demand for computer scientists and database administrators. There is growing demand for network systems and data communication analysts to help firms maximize their efficiency with available technology. Expansion of electronic commerce—doing business on the Internet—and the continuing need to build and maintain databases that store critical information on customers, inventory, and projects are fueling demand for database administrators familiar with the latest technology. Also, the increasing importance placed on cybersecurity—the protection of electronic information—will result in a need for workers skilled in information security. The development of new technologies usually leads to demand for various kinds of workers. The expanding integration of Internet 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. The introduction of the wireless Internet, known as WiFi, creates new systems to be analyzed and new data to be administered. The spread of such new technologies translates into a need for information tech­ nology professionals who can help organizations use technology to communicate with employees, clients, and consumers. Explosive growth in these areas also is expected to fuel demand for specialists who are knowledgeable about network, data, and communications security.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Earnings Median annual earnings of computer and information scientists, research, were $85,190 in May 2004. The middle 50 percent earned between $64,860 and $108,440. The lowest 10 percent earned less than $48,930, and the highest 10 percent earned more than $132,700. Median annual earnings of computer and information scientists employed in computer systems design and related services in May 2004 were $85,530. Median annual earnings of database administrators were $60,650 in May 2004. The middle 50 percent earned between $44,490 and $81,140. The lowest 10 percent earned less than $33,380, and the highest 10 percent earned more than $97,450. In May 2004, median annual earnings of database administrators employed in computer systems design and related services were $70,530, and for those in management of companies and enterprises, earnings were $65,990. Median annual earnings of network systems and data communica­ tion analysts were $60,600 in May 2004. The middle 50 percent earned between $46,480 and $78,060. The lowest 10 percent earned less than $36,260, and the highest 10 percent earned more than $95,040. Median annual earnings in the industries employing the largest numbers of network systems and data communications analysts in May 2004 are shown below: Wired telecommunications carriers.............................................. $65,130 Insurance carriers.......................................................................... 64,660 Management of companies and enterprises.................................. 64,170 Computer systems design and related services............................. 63,910 Local government......................................................................... 52 300 Median annual earnings of all other computer specialists were $59,480 in May 2004. Median annual earnings of all other com­ puter specialists employed in computer systems design and related services were $57,430, and, for those in management of companies and enterprises, earnings were $68,590 in May 2004. According to the National Association of Colleges and Em­ ployers, starting offers for graduates with a doctoral degree in computer science averaged $93,050 in 2005. Starting offers aver­ aged $50,820 for graduates with a bachelor’s degree in computer science; $46,189 for those with a degree in computer systems analysis; $44,417 for those with a degree in management informa­ tion systems; and $44,775 for those with a degree in information sciences and systems. According to Robert Half International, a firm providing special­ ized staffing services, starting salaries in 2005 ranged from $67,750 to $95,500 for database administrators. Salaries for networking and Internet-related occupations ranged from $47,000 to $68,500 for LAN administrators and from $51,750 to $74,520 for web developers. Starting salaries for information security professionals ranged from $63,750 to $93,000 in 2005.  Related Occupations Others who work with large amounts of data are computer pro­ grammers, computer software engineers, computer and information systems managers, engineers, mathematicians, and statisticians.  Sources of Additional Information Further information about computer careers is available from: >- Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org ► Institute of Electrical and Electronics Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. NW„ Washington, DC 20036-1992. Internet: http://www.computer.org >- National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  Professional and Related Occupations  Computer Software Engineers (0*NET 15-1031.00, 15-1032.00)  _________  _  Significant Points  •  •  Computer software engineers are projected to be one of the fastest growing occupations over the 2004-14 period. Very good opportunities are expected for college graduates with at least a bachelor’s degree in computer engineering or computer science and with practical work experience.  •  Computer software engineers must continually strive to acquire new skills in conjunction with the rapid changes that are occurring in computer technology.  Nature of the Work The explosive impact of computers and information technology on our everyday lives has generated a need to design and develop new computer software systems and to incorporate new technologies into a rapidly growing range of applications. The tasks performed by workers known as computer software engineers evolve quickly, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employers. Computer software engineers apply the principles and techniques of computer science, engineering, and mathematical analysis to the design, de­ velopment, testing, and evaluation of the software and systems that enable computers to perform their many applications. (A separate statement on computer hardware engineers appears elsewhere in the Handbook) Software engineers working in applications or systems develop­ ment analyze users’ needs and design, construct, test, and maintain computer applications software or systems. Software engineers can be involved in the design and development of many types of software, including software for operating systems and network distribution, and compilers, which convert programs for execution on a computer. In programming, or coding, software engineers instruct a computer, line by line, how to perform a function. They also solve technical problems that arise. Software engineers must possess strong programming skills, but are more concerned with develop­ ing algorithms and analyzing and solving programming problems than with actually writing code. (A separate statement on computer programmers appears elsewhere in the Handbook) Computer applications software engineers analyze users needs and design, construct, and maintain general computer applications software or specialized utility programs. These workers use dif­ ferent 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 packaged systems and systems software or create customized applications. Computer systems software engineers coordinate the construc­ tion and maintenance of a company’s computer systems and plan their future growth. Working with the company, they coordinate 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 company s intranets—networks that link computers within the organization and ease communication among the various departments. Systems software engineers work for companies that configure, implement,  and install complete computer systems. These workers https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  111  may be members of the marketing or sales staff, serving as the pri­ mary technical resource for sales workers and customers. They also may be involved in product sales and in providing their customers with continuing technical support. Since the selling of complex computer systems often requires substantial customization lor the purchaser’s organization, software engineers help to explain the requirements necessary for installing and operating the new system in the purchaser’s computing environment. In addition, systems software 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 design people, who work together until the product is released..  Working Conditions  Computer software engineers normally work in well-lighted and comfortable offices or laboratories in which computer equipment is located. Most software engineers work at least 40 hours a week; however, due to the project-oriented nature of the work, they also may have to work evenings or weekends to meet deadlines or solve unexpected technical problems. Like other workers who sit for hours at a computer, typing on a keyboard, software engineers are suscep­ tible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.  ISils-  Computer software engineers develop, design, and modify computer applications and systems.  112  Occupational Outlook Handbook  As they strive to improve software for users, many computer software engineers interact with customers and coworkers. Computer software engineers who are employed by software vendors and con­ sulting firms, for example, spend much of their time away from their offices, frequently traveling overnight to meet with customers. They call on customers in businesses ranging from manufacturing plants to financial institutions. As networks expand, software engineers may be able to use modems, laptops, e-mail, and the Internet to provide more technical support and other services from their main office, connecting to a customer’s computer remotely to identify and correct developing problems.  Training, Other Qualifications, and Advancement Most employers prefer to hire persons who have at least a bachelor’s degree and broad knowledge of, and experience with, a variety of computer systems and technologies. The usual degree concentration for applications software engineers is computer science or software engineering; for systems software engineers, it is computer science or computer information systems. Graduate degrees are preferred for some of the more complex jobs. Academic programs in software engineering emphasize soft­ ware and may be offered as a degree option or in conjunction with computer science degrees. Increasing emphasis on computer security suggests that software engineers with advanced degrees that include mathematics and systems design will be sought after by software developers, government agencies, and consulting firms specializing in information assurance and security. Students seeking software engineering jobs enhance their employment opportunities by participating in internship or co-op programs offered through their schools. These experiences provide the students with broad knowledge and experience, making them more attractive candidates to employers. Inexperienced college graduates may be hired by large computer and consulting firms that train new employees in intensive, company-based programs. In many firms, new hires are mentored, and their mentors have an input into the performance evaluations of these new employees. For systems software engineering jobs that require workers who have a college degree, a bachelor’s degree in computer science or computer information systems is typical. For systems engineering jobs that place less emphasis on workers having a computer-related degree, computer training programs leading to certification are offered by systems software vendors. Nonetheless, most training authorities feel that program certification alone is not sufficient for the majority of software engineering jobs. Persons interested in jobs as computer software engineers must have strong problem-solving and analytical skills. They also must be able to communicate effectively with team members, other staff, and the customers they meet. Because they often deal with a number of tasks simultaneously, they must be able to concentrate and pay close attention to detail. As is the case with most occupations, advancement opportunities for computer software engineers increase with experience. Entry-level computer software engineers are likely to test and verify ongoing designs. As they become more experienced, they may become involved in designing and developing software. Eventually, they may advance to become a project manager, manager of information systems, or chief information officer. Some computer software engineers with several years of experience or expertise find lucra­ tive opportunities working as systems designers or independent consultants or starting their own computer consulting firms. As technological advances in the computer field continue, employers demand new skills. Computer software engineers must continually strive to acquire such skills if they wish to remain in this   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  extremely dynamic field. For example, computer software engineers interested in working for a bank should have some expertise in finance as they integrate new technologies into the computer system of the bank. To help them keep up with the changing technology, continuing education and professional development seminars are offered by employers, software vendors, colleges and universities, private training institutions, and professional computing societies.  Employment Computer software engineers held about 800,000 jobs in 2004. Approximately 460,000 were computer applications software engineers, and around 340,000 were computer systems software engineers. Although they are employed in most industries, the largest concentration of computer software engineers—almost 30 percent—are in computer systems design and related services. Many computer software engineers also work for establishments in other industries, such as software publishers, government agencies, manufacturers of computers and related electronic equipment, and management of companies and enterprises. Employers of computer software engineers range from startup companies to established industry leaders. The proliferation of Internet, e-mail, and other communications systems is expanding electronics to engineering firms that are traditionally associated with unrelated disciplines. Engineering firms specializing in build­ ing bridges and powerplants, for example, hire computer software engineers to design and develop new geographic data systems and automated drafting systems. Communications firms need computer software engineers to tap into growth in the personal communica­ tions market. Major communications companies have many job openings for both computer software applications engineers and computer systems engineers. An increasing number of computer software engineers are employed on a temporary or contract basis, with many being selfemployed, working independently as consultants. Some consultants work for firms that specialize in developing and maintaining client companies Web sites and intranets. About 23,000 computer soft­ ware engineers were self-employed in 2004.  Job Outlook Computer software engineers are projected to be one of the fastestgrowing occupations from 2004 to 2014. Rapid employment growth in the computer systems design and related services industry, which employs the greatest number of computer software engineers, should result in very good opportunities for those college graduates with at least a bachelor’s degree in computer engineering or computer sci­ ence and practical experience working with computers. Employers will continue to seek computer professionals with strong program­ ming, systems analysis, interpersonal, and business skills. With the software industry beginning to mature, however, and with routine software engineering work being increasingly outsourced overseas, job growth will not be as rapid as during the previous decade. Employment of computer software engineers is expected to increase much faster than the average for all occupations, as businesses and other organizations adopt and integrate new tech­ nologies and seek to maximize the efficiency of their computer systems. Competition among businesses will continue to create an incentive for increasingly sophisticated technological innovations, and organizations will need more computer software engineers to implement these changes. In addition to jobs created through employment growth, many job openings will result annually from the need to replace workers who move into managerial positions, transfer to other occupations, or leave the labor force. Demand for computer software engineers will increase as com­ puter networking continues to grow. For example, the expanding  Professional and Related Occupations integration of Internet technologies and the explosive growth in electronic commerce—doing business on the Internet—have resulted in rising demand for computer software engineers who can develop Internet, intranet, and World Wide Web applications. Likewise, expanding electronic data-processing systems in business, telecom­ munications, government, and other settings continue to become more sophisticated and complex. Growing numbers of systems software engineers will be needed to implement, safeguard, and update systems and resolve problems. Consulting opportunities for computer software engineers also should continue to grow as businesses seek help to manage, upgrade, and customize their in­ creasingly complicated computer systems. New growth areas will continue to arise from rapidly evolving technologies. The increasing uses of the Internet, the proliferation of Web sites, and mobile technology such as the wireless Internet have created a demand for a wide variety of new products. As individuals and businesses rely more on hand-held computers and wireless networks, it will be necessary to integrate current computer systems with this new, more mobile technology. Also, information security concerns have given rise to new software needs. Concerns over “cyber security” should result in businesses and government continuing to invest heavily in 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. As with other information technology jobs, employment growth of computer software engineers may be tempered somewhat as more software development is contracted out abroad. Firms may look to cut costs by shifting operations to lower wage foreign countries with highly educated workers who have strong technical skills. At the same time, jobs in software engineering are less prone to be­ ing sent abroad compared with jobs in other computer specialties, because the occupation requires innovation and intense research  According to the National Association of Colleges and Employ­ ers, starting salary offers for graduates with a bachelor’s degree in computer engineering averaged $52,464 in 2005; offers for those with a master’s degree averaged $60,354. Starting salary offers for graduates with a bachelor’s degree in computer science averaged $50,820. According to Robert Half International, starting salaries for software engineers in software development ranged from $63,250 to $92,750 in 2005. For network engineers, starting salaries in 2005 ranged from $61,250 to $88,250.  Related Occupations Other workers who use mathematics and logic extensively include computer systems analysts, computer scientists and database ad­ ministrators, computer programmers, computer hardware engineers, computer support specialists and systems administrators, engineers, statisticians, mathematicians, and actuaries.  Sources of Additional Information Additional information on a career in computer software engineering is available from the following organizations: > Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org >- Institute of Electronics and Electrical Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. N.W., Washington, DC 20036-1992. Internet: http://www.computer.org > National Workforce Center for Emerging Technologies, 3000 Landerholm Circle S.E., Bellevue, WA 98007. Internet: http://www.nwcet.org  Computer Support Specialists and Systems Administrators (0*NET 15-1041.00, 15-1071.00)  Earnings  Median annual earnings of computer applications software engineers who worked full time in May 2004 were about $74,980. The middle 50 percent earned between $59,130 and $92,130. The lowest 10 percent earned less than $46,520, and the highest 10 percent earned more than $113,830. Median annual earnings in the industries employing the largest numbers of computer applications software engineers in May 2004 were as follows:  in May 2004 are as follows:  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  Rapid job growth is projected over the 2004-14 period.  •  There are many paths of entry to these occupations.  •  Job prospects should be best for college graduates who are up to date with the latest skills and technologies; certifications and practical experience are essential for persons without degrees.  Nature of the Work $79,930 78,460 76,910 70,520 68,440  Median annual earnings of computer systems software engineers who worked full time in May 2004 were about $79,740. The middle 50 percent earned between $63,150 and $98,220. The lowest 10 percent earned less than $50,420, and the highest 10 percent earned more than $118,350. Median annual earnings in the industries em­ ploying the largest numbers of computer systems software engineers  Scientific research and development services.......... Computer and peripheral equipment manufacturing Software publishers.................................................. Computer systems design and related services........  Wired telecommunications carriers.........................  ___________  Significant Points  and development.  Software publishers............................................................. Management, scientific, and technical consulting services Computer systems design and related services.................. Management of companies and enterprises....................... Insurance carriers................................................................  113  $91,390 87,800 83,670 79,950 74,370  In the last decade, computers have become an integral part of ev­ eryday life, used for a variety of reasons at home, in the workplace, and at schools. Of course, almost every computer user encounters a problem occasionally, whether it is the disaster of a crashing hard drive or the annoyance of a forgotten password. The explosive use of computers has created a high demand for specialists to provide advice to users, as well as for day-to-day administration, mainte­ nance, and support of computer systems and networks. Computer support specialists provide technical assistance, support, and advice to customers and other users. This occupa­ tional group includes technical support specialists and help-desk technicians. These troubleshooters interpret problems and provide technical support for hardware, software, and systems. They answer telephone calls, analyze problems by using automated diagnostic programs, and resolve recurring difficulties. Support specialists may work either within a company that uses com­ puter systems or directly for a computer hardware or software vendor. Increasingly, these specialists work for help-desk or  114  Occupational Outlook Handbook  support services firms, for which they provide computer support to clients on a contract basis. Technical support specialists answer telephone calls from their organizations’ computer users and may run automatic diagnostics programs to resolve problems. Working on monitors, keyboards, printers, and mice, they install, modify, clean, and repair computer hardware and software. They also may write training manuals and train computer users in how to use new computer hardware and software. In addition, technical support specialists oversee the daily performance of their company’s computer systems and evaluate software programs with regard to their usefulness. Help-desk technicians assist computer users with the inevitable hardware and software questions that are not addressed in a product’s instruction manual. Help-desk technicians field telephone calls and e-mail messages from customers who are seeking guidance on technical problems. In responding to these requests for guidance, help-desk technicians must listen carefully to the customer, ask questions to diagnose the nature of the problem, and then patiently walk the customer through the problem-solving steps. Help-desk technicians deal directly with customer issues, and com­ panies value them as a source of feedback on their products. These technicians are consulted for information about what gives customers the most trouble, as well as other customer concerns. Most computer support specialists start out at the help desk. Network administrators and computer systems administrators design, install, and support an organization’s local-area network (LAN), wide-area network (WAN), network segment, Internet, or intranet system. They provide day-to-day onsite administra­ tive support for software users in a variety of work environments, including professional offices, small businesses, government, and large corporations. They maintain network hardware and software, analyze problems, and monitor the network to ensure its availability to system users. These workers gather data to identify customer needs and then use the information to identify, interpret, and evaluate system and network requirements. Administrators also may plan, coordinate, and implement network security measures. Systems administrators are the information technology employees responsible for the efficient use of networks by organizations. They ensure that the design of an organization’s computer site allows all of the components, including computers, the network, and software, to fit together and work properly. Furthermore, they monitor and adjust the performance of existing networks and continually sur­ vey the current computer site to determine future network needs.  Administrators also troubleshoot problems reported by users and by automated network monitoring systems and make recommen­ dations for enhancements in the implementation of future servers and networks. In some organizations, computer security specialists may plan, coordinate, and implement the organization’s information security. These workers may be called upon to educate users about computer security, install security software, monitor the network for security breaches, respond to cyber attacks, and, in some cases, gather data and evidence to be used in prosecuting cyber crime. The responsibilities of computer security specialists has increased in recent years as there has been a large increase in the number of cyber attacks on data and networks. This and other growing spe­ cialty occupations reflect an increasing emphasis on client-server applications, the expansion of Internet and intranet applications, and the demand for more end-user support.  Working Conditions Computer support specialists and systems administrators normally work in well-lighted, comfortable offices or computer laboratories. They usually work about 40 hours a week, but that may include being “on call” via pager or telephone for rotating evening or weekend work if the employer requires computer support over extended hours. Overtime may be necessary when unexpected technical problems arise. Like other workers who type on a keyboard for long periods, computer support specialists and systems adminis­ trators are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome. Due to the heavy emphasis on helping all types of computer users, computer support specialists and systems administrators constantly interact with customers and fellow employees as they answer ques­ tions and give valuable advice. Those who work as consultants are away from their offices much of the time, sometimes spending months working in a client’s office. As computer networks expand, more computer support specialists and systems administrators may be able to connect to a customer’s computer remotely, using modems, laptops, e-mail, and the Internet, to provide technical support to computer users. This capability would reduce or eliminate travel to the customer’s workplace. Systems administrators also can administer and configure networks and serv­ ers remotely, although this practice is not as common as it is among computer support specialists.  Training, Other Qualifications, and Advancement  Computer support specialists often run automatic diagnostics programs to resolve problems.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Due to the wide range of skills required, there are many paths of entry to a job as a computer support specialist or systems administrator. While there is no universally accepted way to prepare for a job as a computer support specialist, many employers prefer to hire persons with some formal college education. A bachelor’s de­ gree in computer science or information systems is a prerequisite for some jobs; however, other jobs may require only a computer-related associate’s degree. For systems administrators, many employers seek applicants with bachelor’s degrees, although not necessarily in a computer-related field. A number of companies are becoming more flexible about requir­ ing a college degree for support positions. However, certification and practical experience demonstrating these skills will be essential for applicants without a degree. The completion of a certification training program, offered by a variety of vendors and product makers, may help some people to qualify for entry-level positions. Relevant computer experience may substitute for formal education. Beginning computer support specialists usually work for orga­ nizations that deal directly with customers or in-house users. Then they may advance into more responsible positions in which they  Professional and Related Occupations use what they have learned from customers to improve the design and efficiency of future products. Job promotions usually depend more on performance than on formal education. Eventually, some computer support specialists become applications developers, designing products rather than assisting users. Computer support specialists at hardware and software companies often enjoy great upward mobility; advancement sometimes comes within months of one’s initial employment. Entry-level network and computer systems administrators are involved in routine maintenance and monitoring of computer systems, typically working behind the scenes in an organization. After gaining experience and expertise, they often are able to advance into more se­ nior-level positions, in which they take on more responsibilities. For example, senior network and computer systems administrators may present recommendations to management on matters related to a company’s network. They also may translate the needs of an orga­ nization into a set of technical requirements based on the available technology. As with support specialists, administrators may become software engineers, actually involved in the designing of the system or network and not just its day-to-day administration. Persons interested in becoming a computer support specialist or systems administrator must have strong problem-solving, analyti­ cal, 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 specialists and systems administrators to communicate ef­ fectively on paper, via e-mail, or in person. Strong writing skills are useful in preparing manuals for employees and customers. As technology continues to improve, computer support specialists and systems administrators must keep their skills current and acquire new ones. Many continuing education programs are provided by employers, hardware and software vendors, colleges and universities, and private training institutions. Professional development seminars offered by computing services firms also can enhance one’s skills and advancement opportunities. Employment Computer support specialists and systems administrators held about 797,000jobs in 2004. Of these, approximately 518,000 were computer support specialists and around 278,000 were network and computer systems administrators. Although they worked in a wide range of industries, about 23 percent of all computer support spe­ cialists and systems administrators were employed in professional, scientific, and technical services industries, principally computer systems design and related services. Other organizations that em­ ployed substantial numbers of these workers include administra­ tive and support services companies, banks, government agencies, insurance companies, educational institutions, and wholesale and retail vendors of computers, office equipment, appliances, and home electronic equipment. Many computer support specialists worked for manufacturers of computers, semiconductors, and other electronic components. Employers of computer support specialists and systems ad­ ministrators range from startup companies to established industry leaders. With the continued development of the Internet, telecom­ munications, and e-mail, industries not typically associated with computers—such as construction—increasingly need computer workers. Small and large firms across all industries are expanding or developing computer systems, creating an immediate need for computer support specialists and systems administrators.  Job Outlook Job prospects should be best for college graduates who are up to date with the latest skills and technologies, particularly if they  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  115  have supplemented their formal education with some relevant work experience. Employers will continue to seek computer specialists who possess a strong background in fundamental computer skills combined with good interpersonal and communi­ cation 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 bachelor’s degree, should continue to qualify for some entry-level positions. However, certifications and practical experience are essential for persons without degrees. Employment of computer support specialists is expected to in­ crease faster than the average for all occupations through 2014, as organizations continue to adopt increasingly sophisticated technol­ ogy and integrate it into their systems. Job growth will continue to be driven by the ongoing expansion of the computer system design and related services industry, which is projected to remain one of the fastest-growing industries in the U.S. economy. Growth will not be as explosive as during the previous decade, however, as the information technology industry matures and some of these jobs are increasingly outsourced overseas. Job growth among computer support specialists reflects the rapid pace of improved technology. As computers and software become more complex, support specialists will be needed to provide technical assistance to customers and other users. New mobile technologies, such as the wireless Internet, will continue to create a demand for these workers to familiarize and educate computer users. Consulting opportunities for computer support specialists also should continue to grow as businesses increasingly need help managing, upgrading, and customizing ever more complex computer systems. However, growth in employment of support specialists may be tempered somewhat as firms continue to cut costs by shifting more routine work abroad to countries where workers are highly skilled and labor costs are lower. Physical location is not as important for computer support specialists as it is for others, because these workers can provide assistance remotely and support services can be provided around the clock. Employment of systems administrators is expected to increase much faster than the average for all occupations as firms continue to invest heavily in securing computer networks. Companies are looking for workers who are knowledgeable about the function and administration of networks. Such employees have become increas­ ingly hard to find as systems administration has moved from being a separate function within corporations to one that forms a crucial ele­ ment of business in an increasingly high-technology economy. Also, demand for computer security specialists will grow as businesses and government continue to invest heavily in “cyber security,” pro­ tecting vital computer networks and electronic infrastructures from attack. The information security field is expected to generate many opportunities over the next decade as firms across all industries place a high priority on safeguarding their data and systems. The growth of electronic commerce means that more establish­ ments use the Internet to conduct their business online. This growth translates into a need for information technology specialists who can help organizations use technology to communicate with employees, clients, and consumers. Growth in these areas also is expected to fuel demand for specialists who are knowledgeable about network, data, and communications security.  Earnings Median annual earnings of computer support specialists were $40,430 in May 2004. The middle 50 percent earned between $30,980 and $53,010. The lowest 10 percent earned less than $24,190, and the highest 10 percent earned more than $69,110. Median annual earnings in the industries employing the largest  116  Occupational Outlook Handbook  numbers of computer support specialists in May 2004 were as follows: Software publishers....................................................................... $44,890 Management of companies and enterprises.................................. 42,780 Computer systems design and related services............................. 42,750 Colleges, universities, and professional schools........................... 37,940 Elementary and secondary schools............................................... 35,500 Median annual earnings of network and computer systems administrators were $58,190 in May 2004. The middle 50 percent earned between $46,260 and $73,620. The lowest 10 percent earned less than $37,100, and the highest 10 percent earned more than $91,300. Median annual earnings in the industries employing the largest numbers of network and computer systems administrators in May 2004 were as follows: Wired telecommunications carriers.............................................. $65,120 Computer systems design and related services............................ 63,710 Management of companies and enterprises................................. 61,600 Elementary and secondary schools............................................... 51,420 Colleges, universities, and professional schools.......................... 51,170 According to Robert Half International, starting salaries in 2005 ranged from $26,250 to $53,750 for help-desk and technical support staff and from $44,500 to $63,250 for more senior technical support specialists. For systems administrators, starting salaries in 2005 ranged from $47,250 to $70,500.  Related Occupations Other computer specialists include computer programmers, com­ puter software engineers, computer systems analysts, and computer scientists and database administrators.  Sources of Additional Information For additional information about a career as a computer support specialist, contact the following organizations: >- Association of Computer Support Specialists., 333 Mamaroneck Ave., # 129, White Plains, NY 10605. Internet: http://www.acss.org ► Association of Support Professionals, 122 Barnard Ave., Watertown MA 02472. For additional information about a career as a systems admin­ istrator, contact: ► System Administrators Guild, 2560 9th St., Suite 215, Berkeley, CA 94710. Internet: http://www.sage.org Further information about computer careers is available from: ► National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  Computer Systems Analysts (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 as organizations continue to adopt increas­ ingly sophisticated technologies.  •  Job prospects are favorable.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Nature of the Work All organizations rely on computer and information technology to conduct business and operate more efficiently. The rapid spread of technology across all industries has generated a need for highly trained workers to help organizations incorporate new technologies. The tasks performed by workers known as computer systems analysts evolve rapidly, reflecting new areas of specialization or changes in technology, as well as the preferences and practices of employers. Computer systems analysts solve computer problems and apply computer technology to meet the individual needs of an organization. They help an organization to realize the maximum benefit from its investment in equipment, personnel, and business processes. Systems analysts may plan and develop new computer systems or devise ways to apply existing systems’ resources to additional operations. They may design new systems, including both hardware and software, or add a new software application to harness more of the computer's power. Most systems analysts work with specific types of systems—for example, business, accounting, or financial systems, or scientific and engineering systems—that vary with the kind of organization. Some systems analysts also are known as systems developers or systems architects Systems analysts begin an assignment by discussing the sys­ tems problem with managers and users to determine its exact nature. Defining the goals of the system and dividing the solutions into individual steps and separate procedures, systems analysts use techniques such as structured analysis, data modeling, information engineering, mathematical model building, sampling, and cost ac­ counting to plan the system. They specify the inputs to be accessed by the system, design the processing steps, and format the output to meet users’ needs. They also may prepare cost-benefit and retum-on-investment analyses to help management decide whether implementing the proposed technology will be financially feasible. When a system is accepted, systems analysts determine what com­ puter hardware and software will be needed to set the system up. They coordinate tests and observe the initial use of the system to ensure that it performs as planned. They prepare specifications, flow charts, and process diagrams for computer programmers to follow; then, they work with programmers to “debug,” or eliminate, errors from the system. Systems analysts who do more in-depth testing of products may be referred to as software quality assurance analysts In addition to running tests, these individuals diagnose problems, recommend solutions, and determine whether program requirements have been met. In some organizations, programmer-analysts design and update the software that runs a computer. Because they are responsible for both programming and systems analysis, these workers must be proficient in both areas. (A separate statement on computer programmers appears elsewhere in the Handbook) As this dual profi­ ciency becomes more commonplace, these analysts are increasingly working with databases, object-oriented programming languages, as well as client-server applications development and multimedia and Internet technology. One obstacle associated with expanding computer use is the need for different computer systems to communicate with each other. Because of the importance of maintaining up-to-date informa­ tion-accounting records, sales figures, or budget projections, for example—systems analysts work on making the computer systems within an organization, or among organizations, compatible so that information can be shared among them. Many systems analysts are involved with “networking,” connecting all the computers in­ ternally—in an individual office, department, or establishment—or externally, because many organizations rely on e-mail or the Internet. A primary goal of networking is to allow users to retrieve data from a mainframe computer or a server and use it on their desktop computer. Systems analysts must design the hardware and  Professional and Related Occupations  P #  Computer systems analysts help organizations get the most out of available technology.  software to allow the free exchange of data, custom applications, and the computer power to process it all. For example, analysts are called upon to ensure the compatibility of computing systems between and among businesses to facilitate electronic commerce.  Working Conditions Computer systems analysts work in offices or laboratories in comfortable surroundings. They usually work about 40 hours a week—the same as many other professional or office workers do. However, evening or weekend work may be necessary to meet deadlines or solve specific problems. Given the technology available today, telecommuting is common for computer professionals. As networks expand, more work can be done from remote locations through modems, laptops, electronic mail, and the Internet. Like other workers who spend long periods in front of a computer terminal typing on a keyboard, computer systems analysts are sus­ ceptible 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 employees. Companies increasingly look for professionals with a broad background and range of skills, including not only technical knowledge, but also communication andFRASER other interpersonal skills. This shift from requiring workers to Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  117  possess solely sound technical knowledge emphasizes workers who can handle various responsibilities. While there is no universally ac­ cepted way to prepare for a job as a systems analyst, most employers place a premium on some formal college education. Relevant work experience also is very important. For more technically complex jobs, persons with graduate degrees are preferred. Many employers seek applicants who have at least a bachelor’s degree in computer science, information science, or management information systems (MIS). MIS programs usually are part of the business school or college and differ considerably from computer science programs, emphasizing business and management-oriented course work and business computing courses. Employers are in­ creasingly seeking individuals with a master’s degree in business administration (MBA), with a concentration in information systems, as more firms move their business to the Internet. Despite employers’ preference for those with technical degrees, persons with degrees in a variety of majors find employment as system analysts. The level of education and type of training that employers require depend on their needs. One factor affecting these needs is changes in technology. Employers often scramble to find workers capable of implementing “hot” new technologies such as the wireless Internet. Those workers with formal education or experience in information security, for example, are in demand because of the growing need for their skills and services. Another factor driving employers’ needs is the timeframe during which a project must be completed. Employers usually look for people who have broad knowledge and experience 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 systems analysts to have business management or closely related skills, while a back­ ground in the physical sciences, applied mathematics, or engineering is preferred for work in scientifically oriented organizations. Job seekers can enhance their employment opportunities by participating in internship or co-op programs offered through their schools. Because many people develop advanced computer skills in a non-computer-related occupation and then transfer those skills to a computer occupation, a background in the industry in which the person’s job is located, such as financial services, banking, or accounting, can be important. Others have taken computer science courses to supplement their study in fields such as accounting, inventory control, or other business areas. Computer systems analysts 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 atten­ tion to detail is important. Although these workers sometimes work independently, they frequently work in teams on large projects. 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. Systems analysts may be promoted to senior or lead systems analyst. Those who show leadership ability also can become project managers or advance into management positions such as manager of information systems or chief information officer. Workers with work experience and considerable expertise in a particular subject or a certain application may find lucrative opportunities as inde­ pendent 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 universi­ ties, and private training institutions offer continuing education.  118  Occupational Outlook Handbook  Additional training may come from professional development seminars offered by professional computing societies.  Employment Computer systems analysts held about 487,000 jobs in 2004; about 28,000 were self-employed. Although they are increasingly employed in every sector of the economy, the greatest concentration of these workers is in the com­ puter systems design and related services industry. Firms in this industry provide services related to the commercial use of comput­ ers on a contract basis, including custom computer programming services; computer systems integration design services; computer facilities management services, including computer systems or data processing facilities support services for clients; and other computer services, such as disaster recovery services and software installation. Computer systems analysts are also employed by governments, insurance companies, financial institutions, Internet service providers, data processing services firms, and universities. A growing number of systems analysts are employed on a tempo­ rary or contract basis; many of these individuals are self-employed, working independently as contractors or consultants. For example, a company installing a new computer system may need the services of several systems 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 a consulting firm or with the systems analysts themselves. Such jobs may last from several months up to 2 years or more. This growing practice enables companies to bring in people with the exact skills the firm needs to complete a particular project, rather than having to spend time or money training or retraining existing workers. Often, experienced consultants then train a company’s in-house staff as a project develops.  Job Outlook Employment of computer systems analysts is expected to grow much faster than the average for all occupations through the year 2014 as organizations continue to adopt and integrate increasingly sophisti­ cated technologies. Job increases will be driven by very rapid growth in computer system design and related services, which is projected to be among the fastest growing industries in the U.S. economy. In addition, many job openings will arise annually from the need to replace workers who move into managerial positions or other occupa­ tions or who leave the labor force. Job growth will not be as rapid as during the previous decade, however, as the information technology sector begins to mature and as routine work is increasingly outsourced to lower-wage foreign countries. Workers in the occupation should enjoy favorable job prospects. The demand for networking to facilitate the sharing of information, the expansion of client-server environments, and the need for computer specialists to use their knowledge and skills in a problem-solving capacity will be major factors in the rising demand for computer systems analysts. Moreover, falling prices of computer hardware and software should continue to induce more businesses to expand their computerized operations and integrate new technolo­ gies into them. In order to maintain a competitive edge and operate more efficiently, firms will keep demanding system analysts who are knowledgeable about the latest technologies and are able to apply them to meet the needs of businesses. Increasingly, more sophisticated and complex technology is being implemented across all organizations, which should fuel the demand for these computer occupations. There is a growing demand for system analysts to help firms maximize their efficiency with available technology. Expansion of electronic commerce—doing business on the Internet—and the continuing need to build and maintain   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  databases that store critical information on customers, inventory, and projects are fueling demand for database administrators familiar with the latest technology. Also, the increasing importance being placed on “cybersecurity”—the protection of electronic information—will result in a need for workers skilled in information security. The development of new technologies usually leads to demand for various kinds of workers. The expanding integration of Internet 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. The introduction of the wireless Internet, known as WiFi, creates new systems to be analyzed. The spread of such new technologies trans­ lates into a need for information technology professionals who can help organizations use technology to communicate with employees, clients, and consumers. Explosive growth in these areas also is expected to fuel demand for analysts who are knowledgeable about network, data, and communications security. As technology becomes more sophisticated and complex, employers demand a higher level of skill and expertise from their employees. Individuals with an advanced degree in computer sci­ ence or computer engineering, or with an MBA with a concentra­ tion 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 prospects for employment, particularly if they have supplemented their formal education with practical experience. Because employers continue to seek computer special­ ists who can combine strong technical skills with good interpersonal and business skills, graduates with non-computer-science degrees, but who have had courses in computer programming, systems analy­ sis, and other information technology subjects, also should continue to find jobs in computer fields. In fact, individuals with the right experience and training can work in computer occupations regardless of their college major or level of formal education.  Earnings Median annual earnings of computer systems analysts were $66,460 in May 2004. The middle 50 percent earned between $52,400 and $82,980 a year. The lowest 10 percent earned less than $41,730, and the highest 10 percent earned more than $99,180. Median an­ nual earnings in the industries employing the largest numbers of computer systems analysts in May 2004 were: Federal Government......................................................................... $71,770 Computer systems design and related services..................................69,560 Management of companies and enterprises.......................................67,230 Insurance carriers............................................................................... 66,840 State government .............................................................................. 57,040 According to the National Association of Colleges and Em­ ployers, starting offers for graduates with a master’s degree in computer science averaged $62,727 in 2005. Starting offers averaged $50,820 for graduates with a bachelor’s degree in computer science; $46,189 for those with a degree in computer systems analysis; $44,417for those with a degree in manage­ ment information systems; and $44,775 for those with a degree in information sciences and systems. According to Robert Half International, starting salaries for systems analysts ranged from $61,500 to $82,500 in 2005.  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  Professional and Related Occupations and information systems managers, engineers, mathematicians, statisticians, operations research analysts, management analysts, and actuaries.  Sources of Additional Information Further information about computer careers is available from: >■ Association for Computing Machinery (ACM), 1515 Broadway, New York, NY 10036. Internet: http://www.acm.org ► Institute of Electrical and Electronics Engineers Computer Society, Headquarters Office, 1730 Massachusetts Ave. NW., Washington, DC 20036-1992. Internet: http://www.computer.org >- National Workforce Center for Emerging Technologies, 3000 Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org  Mathematicians_______ __________ (0*NET 15-2021.00)  _______________  Significant Points •  •  •  119  Applied mathematicians start with a practical problem, envision the separate elements of the process under consideration, and then reduce the elements to mathematical variables. They often use com­ puters to analyze relationships among the variables and solve complex problems by developing models with alternative solutions. Much of the work in applied mathematics is done by indi­ viduals with titles other than mathematician. In fact, because 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 designated as mathematicians. For example, engineers, computer scientists, physicists, and economists are among those who use mathematics extensively. Some professionals, including statisticians, actuar­ ies, and operations research analysts, actually are specialists in a particular branch of mathematics. Frequently, applied mathema­ ticians are required to collaborate with other workers in their or­ ganizations to achieve common solutions to problems. (For more information, see the statements on actuaries, operations research analysts, and statisticians elsewhere in the Handbook.)  A Ph.D. degree in mathematics usually is the minimum  Working Conditions  educational requirement, except in the Federal Govern­  Mathematicians usually work in comfortable 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 travel to attend seminars or conferences may be part of their jobs. Mathematicians who work in academia usually have a mix of teaching and research responsibilities. These mathematicians may conduct research alone or in close collabora­ tion 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.  ment. The number of jobs with the title “mathematician” is declining as the workforce becomes increasingly specialized; competition will be keen for the limited number of available jobs. Master’s and Ph.D. degree holders with a strong background in mathematics and a related field, such as computer science or engineering, should have better employment opportunities in related occupations.  Nature of the Work Mathematics is one of the oldest and most fundamental sciences. Mathematicians use mathematical theory, computa­ tional techniques, algorithms, and the latest computer technology to solve economic, scientific, engineering, physics, and business problems. The work of mathematicians falls into two broad class­ es—theoretical (pure) mathematics and applied mathematics. These classes, however, are not sharply defined and often overlap. Theoretical mathematicians advance mathematical knowledge by developing new principles and recognizing previously unknown relationships between existing principles of mathematics. 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 furthering 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—postsec­ ondary elsewhere in the Handbook.) Applied mathematicians, on the other hand, use theories and tech­ niques, such as mathematical modeling and computational methods, to formulate and solve practical problems in business, government, and engineering and in the physical, life, and social sciences. For example, they may analyze the most efficient way to schedule air­ line routes between cities, the effects and safety of new drugs, the aerodynamic characteristics of an experimental automobile, or the cost-effectiveness of alternative manufacturing processes. Applied mathematicians working in industrial research and development may develop or enhance mathematical methods when solving a difficult problem. Some mathematicians, called cryptanalysts, analyze and decipher encryption systems designed to transmit military, political, or law enforcement-related information in code. Digitized financial, for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Training, Other Qualifications, and Advancement A Ph.D. degree in mathematics usually is the minimum educational requirement for prospective mathematicians, except in the Federal  Government. In the Federal Government, entry-level j ob candidates usually must have a 4-year degree with a major in mathematics or a 4-year degree with the equivalent of a mathematics major—24 semester hours of mathematics courses. In private industry, candidates for mathematician jobs typically need a Ph.D., although there may be opportunities for those with a master’s degree. Most of the positions designated for mathematicians  ■  ncs division ■ ■  L ;, A? - . ;  Mathematicians sometimes collaborate to solve problems.  120  Occupational Outlook Handbook  are in research and development laboratories, as part of technical teams. In such settings, mathematicians engage either in basic research on pure mathematical principles or in applied research on developing or improving specific products or processes. The ma­ jority of those with a bachelor’s or master’s degree in mathematics who work in private industry do so not as mathematicians but in related fields such as computer science, where they have titles such as computer programmer, systems analyst, or systems engineer. A bachelor’s degree in mathematics is offered by most colleges and universities. Mathematics courses usually required for this degree include calculus, differential equations, and linear and ab­ stract algebra. Additional courses might include probability theory and statistics, mathematical analysis, numerical analysis, topology, discrete mathematics, and mathematical logic. Many colleges and universities urge or require students majoring in mathematics to take courses in a field that is closely related to mathematics, such as computer science, engineering, life science, physical science, or economics. A double major in mathematics and another related discipline is particularly 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 2004, about 200 colleges and universities offered a master’s degree as the highest degree in either pure or applied mathematics; about 200 offered a Ph.D. degree in pure or applied mathematics. In graduate school, students conduct research and take advanced courses, usually specializing in a subfield of mathematics. For jobs in applied mathematics, training in the field in which the mathematics will be used is very important. Mathematics is used extensively in physics, actuarial science, statistics, engineer­ ing, and operations research. Computer science, business and in­ dustrial management, economics, finance, chemistry, geology, life sciences, and behavioral sciences are likewise dependent on applied mathematics. Mathematicians also should have substantial knowledge of computer programming, because most complex mathematical com­ putation and much mathematical modeling are done on a computer. Mathematicians need good reasoning ability and persistence to identify, analyze, and apply basic principles to technical problems. Communication skills also are important, as mathemati­ cians must be able to interact and discuss proposed solutions with people who may not have extensive knowledge of mathematics.  Employment Mathematicians held about 2,500 jobs in 2004. Many people with mathematical backgrounds also worked in other occupations. For example, about 53,000 persons held positions as postsecondary mathematical science teachers in 2004. Many mathematicians work for Federal or State governments. The U.S. Department of Defense is the primary Federal employer, accounting for about three-fourths of the mathematicians employed by the Federal Government. Many of the other mathematicians em­ ployed by the Federal Government work for the National Aeronautics and Space Administration (NASA). In the private sector, major employers include scientific research and development services and management, scientific, and technical consulting services. Some mathematicians also work for software publishers, insurance com­ panies, and in aerospace or pharmaceutical manufacturing.  should have the best opportunities. Many of these workers have job titles that reflect their occupation, such as systems analyst, rather than the title mathematician, reflecting their primary educational background. Advancements in technology usually lead to expanding ap­ plications of mathematics, and more workers with knowledge of mathematics will be required in the future. However, jobs in industry and government often require advanced knowledge of related scientific disciplines in addition to mathematics. The most common fields in which mathematicians study and find work are computer science and software development, physics, engineering, and operations research. More mathematicians also are becom­ ing involved in financial analysis. Mathematicians must compete for jobs, however, with people who have degrees in these other disciplines. The most successful jobseekers will be able to apply mathematical theory to real-world problems and will possess good communication, teamwork, and computer skills. Private industry jobs require at least a master’s degree in mathematics or in a related field. Bachelor’s degree hold­ ers in mathematics usually are not qualified for most jobs, and many seek advanced degrees in mathematics or a related discipline. However, bachelor’s degree holders who meet State certification requirements may become primary or secondary school mathematics teachers. (For additional information, see the statement on teachers—preschool, kindergarten, elementary, middle, and secondary elsewhere in the Handbook.) Holders of a master’s degree in mathematics will face very strong competition for jobs in theoretical research. Because the number of Ph.D. degrees awarded in mathematics continues to exceed the number of university positions available, many of these graduates will need to find employment in industry and government.  Earnings Median annual earnings of mathematicians were $81,240 in May 2004. The middle 50 percent earned between $60,050 and $101,360. The lowest 10 percent had earnings of less than $43,160, while the highest 10 percent earned over $120,900. In early 2005, the average annual salary for mathemati­ cians employed by the Federal Government in supervisory, nonsupervisory, and managerial positions was $88,194; that for mathematical statisticians was $91,446; and for cryptanalysts the average was $70,774.  Related Occupations Other occupations that require extensive knowledge of mathemat­ ics or, in some cases, a degree in mathematics include actuaries, statisticians, computer programmers, computer systems analysts, computer scientists and database administrators, computer software engineers, and operations research analysts. A strong background in mathematics also facilitates employment as teachers—post secondary; teachers—preschool, kindergarten, elementary, middle, and secondary; engineers; economists; market and survey researchers; financial analysts and personal financial advisors; and physicists and astronomers.  Sources of Additional Information Job Outlook Employment of mathematicians is expected to decline through 2014, reflecting the reduction in the number of jobs with the title “mathematician.” As a result, competition is expected to be keen for the limited number of jobs as mathematicians. Master’s and Ph.D. degree holders with a strong background in mathematics and a related discipline, such as engineering or computer science,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  For more information about careers and training in mathematics, especially for doctoral-level employment, contact; > American Mathematical Society, 201 Charles St., Providence, RI029042294. Internet: http://www.ams.org For specific information on careers in applied mathematics, contact: ► Society for Industrial and Applied Mathematics, 3600 University City Sci­ ence Center, Philadelphia, PA 19104-2688. Internet: http:// www.siam.org  Professional and Related Occupations Information on obtaining positions as mathematicians 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 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.  Operations Research Analysts (0*NET 15-2031.00)  Significant Points •  Employers generally prefer applicants with at least a master’s degree in operations research or management science, or a closely related field such as computer sci­ ence, engineering, business, mathematics, or informa­ tion systems.  •  Employment growth is projected to be slower than average, reflecting slow growth in the number of jobs with the title “operations research analyst.”  •  Individuals with a master’s or Ph.D. degree in manage­ ment science, operations research, or equivalent should have good job opportunities as operations research ana­ lysts or in closely related occupations, such as systems analysts, computer scientists, or management analysts.  Nature of the Work “Operations research” and “management science” are terms that are used interchangeably to describe the discipline of applying ad­ vanced analytical techniques to help make better decisions and to solve problems. The procedures of operations research have been used effectively during wartime in areas such as deploying radar, searching for enemy submarines, and getting supplies to where they were needed most. New analytical methods have been developed, and numerous peacetime applications have emerged, leading to the use of operations research in many industries and occupations. The prevalence of operations research in the Nation’s economy reflects the growing complexity of managing large organizations that require the effective use of money, materials, equipment, and people. Operations research analysts help determine better ways to coordinate these elements by applying analytical methods from mathematics, science, and engineering. Analysts often find multiple possible solutions for meeting the particular goals of a project. These potential solutions are then presented to managers, who choose the course of action that they perceive to be best for the organization. Operations research analysts often have one area of specializa­ tion, such as working in the transportation or the financial services industry, but the issues and industries in which operations research can be used are many. In general, operations research analysts may be involved in top-level strategizing, planning, forecasting, allocating resources, measuring performance, scheduling, design­ ing production facilities and systems, managing the supply chain, pricing, coordinating transportation and distribution, or analyzing large databases. The duties of the operations research analyst vary according to the structure and management of the employer’s or client’s Digitizedorganization. for FRASER Some firms centralize operations research in one https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  121  department; others use operations research in each division. Operations research analysts also may work closely with senior managers to identify and solve a variety of problems. Some organi­ zations contract with consulting firms to provide operations research services. Economists, computer systems analysts, mathematicians, industrial engineers, and others may apply operations research techniques to address problems in their respective fields. (These occupations are discussed elsewhere in the Handbook.) Regardless of the type or structure of the client organiza­ tion, operations research entails following a standard set of procedures and conducting analysis to help managers improve performance. Managers begin the process by describing the symp­ toms of a problem to the analyst, who then formally defines the problem. For example, an operations research analyst for an auto manufacturer may be asked to determine 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 result in an unintended halt in production. Operations research analysts study such problems, breaking them into their components. Analysts then gather information about each of the components from a variety of sources. To determine the optimal inventory, for example, operations research analysts might talk with engineers about production levels, discuss purchasing arrangements with buyers, and examine storage-cost data provided by the accounting department. With the relevant information in hand, the analyst determines the most appropriate analytical technique. Techniques used may include Monte Carlo simulation, linear and nonlinear program­ ming, dynamic programming, queuing and other stochastic-process models, Markov decision processes, econometric methods, data envelopment analysis, neural networks, expert systems, decision analysis, and the analytic hierarchy process. Nearly all of these techniques involve the construction of a mathematical model that attempts to describe the system being studied. 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,  Operations research analysts use computers to perform in-depth analyses ofproblems in many fields.  122  Occupational Outlook Handbook  the amount of fuel required to fly the routes, projected levels of passenger demand, varying ticket and fuel prices, pilot scheduling, and maintenance costs. By assessing different possible schedules, the analyst is able to determine the best flight schedule 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 consider dif­ ferent assumptions before presenting the final recommendation. Once managers reach a decision, the analyst usually works with others in the organization to ensure the plan’s successful implementation.  Working Conditions Operations research analysts generally work regular hours in an office environment. However, because they work on projects that are of immediate interest to top managers, operations research analysts often are under pressure to meet deadlines and may work more than a 40-hour week.  Training, Other Qualifications, and Advancement Employers generally prefer applicants with at least a master’s degree in operations research or a closely related field, such as computer science, engineering, business, mathematics, information systems, or management science, coupled with a bachelor’s degree in computer science or a quantitative discipline such as economics, mathemat­ ics, or statistics. Dual graduate degrees in operations research and computer science are especially attractive to employers. Operations research analysts must be able to think logically, use computers proficiently, work well with people, and demonstrate good oral and written communication skills. In addition to supporting formal education in one manner or another, employers often sponsor training for experienced work­ ers, helping them keep up with new developments in operations research techniques and computer science. Some analysts attend advanced university classes on these subjects at their employer’s expense. Computers are the most important tools used by operations research analysts for performing in-depth analysis. As a result, training and experience in programming are required. Analysts typically need to be proficient in database collection and manage­ ment, programming, and the development and use of sophisticated software packages. Beginning analysts usually perform routine work under the supervision of more experienced analysts. As the novices gain knowledge and experience, they are assigned more complex tasks and are given greater autonomy to design models and solve problems. Operations research analysts can advance by assuming positions as technical specialists or supervisors. Analysts also gain valuable insights into the industry or field in which they specialize and may assume higher level nontechnical managerial or admin­ istrative positions. Operations research analysts with significant experience may become consultants, and some may even open their own consulting practices.  Employment Operations research analysts held about 58,000jobs in 2004. Major employers include computer systems design firms; insurance carri­ ers and other financial institutions; telecommunications companies; management, scientific, and technical consulting services firms; and Federal, State, and local governments. More than 4 out of 5 operations research analysts in the Federal Government work for the Department of Defense, and many in private industry work directly or indirectly on national defense.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Job Outlook Employment of operations research analysts is expected to grow more slowly than the average for all occupations through 2014, re­ flecting slow growth in the number ofjobs with the title “operations research analyst.” Job opportunities in operations research should be good, however, because organizations throughout the economy will strive to improve their productivity, effectiveness, and competitive­ ness and because of the extensive availability of data, computers, and software. Many jobs in operations research have other titles, such as operations analyst, management analyst, systems analyst, and computer scientist. Individuals who hold a master’s or Ph.D. degree in operations research, management science, or a closely related field should find good job opportunities because the number of openings generated by employment growth and the need to replace those leaving the occupation is expected to exceed the number of persons graduating with these credentials. Organizations face pressure today from 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 optimize 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 utilize the technology in the best way. Opportunities 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 analysts will be best in management, scientific, and technical consulting firms. Opportunities in the military will exist as well, but will depend on the size of future military budgets. Military leaders will rely on operations research analysts to test and evaluate the accuracy and effectiveness of new weapons systems and strategies. (See the Handbook statement on job opportunities in the Armed Forces.)  Earnings Median annual earnings of operations research analysts were $60,190 in May 2004. The middle 50 percent earned between $45,640 and $78,420. The lowest 10 percent had earnings of less than $36,180, while the highest 10 percent earned more than $95,990. The average annual salary for operations research analysts in the Federal Government in nonsupervisory, supervisory, and managerial positions was $89,882 in 2005.  Related Occupations Operations research analysts apply advanced analytical methods to large, complicated problems. Workers in other occupations that stress advanced analysis include computer systems analysts, com­ puter scientists and database administrators, computer programmers, engineers, mathematicians, statisticians, economists, and market and survey researchers. Because its goal is improved organizational ef­ fectiveness, operations research also is closely allied to managerial occupations such as computer and information systems managers, and management analysts.  Sources of Additional Information Information on career opportunities for operations research analysts is available from: >- Institute for Operations Research and the Management Sciences, 7240 Park­ way Dr., Suite 310, Hanover, MD 21076. Internet: http://www.informs.org For information on operations research careers in the Armed Forces and the U.S. Department of Defense, contact: ► Military Operations Research Society, 1703 N. Beauregard St., Suite 450, Alexandria, VA 22311. Internet: http://www.mors.org  Professional and Related Occupations Information on obtaining positions as operations research analysts with the Federal Government is available from the Office of Personnel Management through USAJOBS, the Federal Gov­ ernment’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.  Statisticians (0*NET 15-2041.00)  Significant Points •  •  •  •  About 41 percent of statisticians work for Federal, State, and local governments; other employers include 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 more slowly than average because many jobs that require a degree in statistics will not carry the title “statistician.” Individuals with a degree in statistics should have favorable job opportunities in a variety of disciplines.  Nature of the Work Statistics is the scientific application of mathematical principles to the collection, analysis, and presentation of numerical data. Statisti­ cians contribute to scientific inquiry by applying their mathematical and statistical knowledge to the design of surveys and experiments; the collection, processing, and analysis of data; and the interpretation of the results. Statisticians may apply their knowledge of statistical methods to a variety of subject areas, such as biology, economics, engineering, medicine, public health, psychology, marketing, edu­ cation, 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. 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, televi­ sion-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 experi­ ments to determine the failure time of engines exposed to extreme weather conditions by running individual engines until failure and breakdown. Working for a pharmaceutical company, statisticians might develop and evaluate the results of clinical trials to determine and effectiveness of new medications. And, at a computer Digitizedthe for safety FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  123  software firm, statisticians might help construct new statistical software packages to analyze 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. Statisticians also may manage assets and liabilities, determining the risks and returns of certain investments. Statisticians also are employed by nearly every government agency. Some government statisticians develop surveys that measure population growth, consumer prices, or unemployment. Other stat­ isticians work for scientific, environmental, and agricultural agencies and may help determine the level of pesticides in drinking water, the number of endangered species living in a particular area, or the number of people afflicted with a particular disease. Statisticians also are employed in national 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 professional designations. For example, a person using statistical methods to analyze economic data may have the title econometrician, while statisticians in public health and medicine may hold titles such as biostatistician, biometrician, or epidemiologist.  Working Conditions Statisticians usually work regular hours in comfortable offices. Some statisticians travel to provide advice on research projects, supervise and set up surveys, or gather statistical data. While advanced com­ munications 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 require the statistician to be present, such as during meetings or while gathering data. Some in this occupation may have duties that vary widely, such as designing experiments or performing fieldwork in various communities. Statisticians who work in academia generally have a mix of teaching and research responsibilities.  Training, Other Qualifications, and Advancement Although employment opportunities exist for individuals with a bachelor’s degree, a master’s degree in statistics or mathematics is usually the minimum educational requirement for most statistician jobs. Research and academic positions in institutions of higher educa­ tion, for example, require at least a master’s degree, and usually a Ph.D.,  7  Statisticians usually work in offices, though they may travel to consult with clients, supervise or set up surveys, or gather statistical data.  124  Occupational Outlook Handbook  in statistics. Beginning positions in industrial research often require a master’s degree combined with several years of experience. The training required for employment as an entry-level statisti­ cian in the Federal Government, however, is a bachelor’s degree, including at least 15 semester hours of statistics or a combination of 15 hours of mathematics and statistics, if at least 6 semester hours are in statistics. Qualifying as a mathematical statistician in the Federal Government requires 24 semester hours of mathemat­ ics and statistics, with a minimum of 6 semester hours in statistics and 12 semester hours in an area of advanced mathematics, such as calculus, differential equations, or vector analysis. In 2004, approximately 230 universities offered a degree program in statistics, biostatistics, or mathematics. Many other schools also offered graduate-level courses in applied statistics for students 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, operations 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 courses that undergraduates should take include linear algebra, design and analysis of experiments, applied multivariate analysis, and math­ ematical statistics. Because computers are used extensively for statistical applications, a strong background in computer science is highly recommended. For positions involving quality and productivity improvement, training in engineering or physical science is useful. A background in biological, chemical, or health science is important for positions involving the preparation and testing of pharmaceuti­ cal or agricultural products. Courses in economics and business administration are helpful for many jobs in market research, business analysis, and forecasting. Good communications skills are important for prospective statisticians in industry, who often need to explain technical matters to persons without statistical expertise. An understanding of busi­ ness and the economy also is valuable for those who plan to work in private industry. Beginning statisticians generally are supervised by an experi­ enced statistician. With experience, they may advance to positions with more technical responsibility and, in some cases, supervisory duties. However, opportunities for promotion are greater for per­ sons with advanced degrees. Master’s and Ph.D. degree holders usually enjoy independence in their work and may become quali­ fied to engage in research; develop statistical methods; or, after a number of years of experience in a particular area, become statistical consultants.  Employment Statisticians held about 19,000 jobs in 2004. Twenty percent of these jobs were in the Federal Government, where statisticians were concentrated in the Departments of Commerce, Agriculture, and Health and Human Services. Another 20 percent were found in State and local governments, including State colleges and universities. Most of the remaining jobs were in private industry, especially in scientific research and development services, insur­ ance carriers, and pharmaceutical and medicine manufacturing. In addition, many professionals with a background in statistics were among the 53,000 postsecondary mathematical science teachers. (See the statement on teachers—postsecondary elsewhere in the Handbook.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Job Outlook Employment of statisticians is projected to grow more slowly than the average for all occupations over the 2004-14 period, because many jobs that require a degree in statistics will not carry the title “statistician.” However, job opportunities should remain favorable for individuals with a degree in statistics. For example, many jobs involve the analysis and interpretation of data from economics, biological science, psychology, computer software engineering, and other disciplines. Despite the limited number of jobs resulting from growth, a number of openings will become available as statisticians transfer to other occupations or retire or leave the workforce for other reasons. The use of statistics is widespread and growing. Among graduates with a master’s degree in statistics, those with a strong background in an allied field, such as finance, biology, engineer­ ing, or computer science, should have the best prospects of find­ ing jobs related to their field of study. Federal agencies will hire statisticians in many fields, including demography, agriculture, consumer and producer surveys, Social Security, health care, and environmental quality. Because the Federal Government is one of the few employers that considers a bachelor’s degree an adequate entry-level qualification, competition for entry-level positions in the Federal Government is expected to be strong for persons just meeting the minimum qualifications for statisticians. Those who meet State certification requirements may become high school statistics teachers. (For additional information, see the statement on teachers—preschool, kindergarten, elementary, middle, and secondary elsewhere in the Handbook.) Manufacturing firms will hire statisticians with master’s and doctoral degrees for quality control of various products, includ­ ing pharmaceuticals, motor vehicles, aircraft, chemicals, and food. For example, pharmaceutical firms will employ statisticians to assess the effectiveness and safety of new drugs, to decide whether to market them, and to make sure they comply with federal standards. To address global product competition, motor vehicle manufacturers will need statisticians to improve the quality of automobiles, trucks, and their components by developing and test­ ing new designs. Statisticians with knowledge of engineering and the physical sciences will find jobs in research and development, working with teams of scientists and engineers to help improve design and production processes to ensure consistent quality of newly developed products. Many statisticians also will find opportunities developing statistical software for computer soft­ ware manufacturing firms. Firms will rely heavily on workers with a background in statistics to forecast sales, analyze business conditions, and help to solve management problems to maximize profits. In addition, consult­ ing firms increasingly will offer sophisticated statistical services to other businesses. Because of the widespread use of computers in this field and the growing number of widely used software packages, statisticians in all industries should have good computer program­ ming skills and knowledge of statistical software.  Earnings Median annual earnings of statisticians were $58,620 in May 2004. The middle 50 percent earned between $42,770 and $80,690. The lowest 10 percent earned less than $32,870, while the highest 10 percent earned more than $100,500. The average annual salary for statisticians in the Federal Gov­ ernment in nonsupervisory, supervisory, and managerial positions was $81,262 in 2005, while mathematical statisticians averaged $91,446. According to a 2005 survey by the National Association of Colleges and Employers, starting salary offers for mathematics/statis­ tics graduates with a bachelor’s degree averaged $43,448 a year.  Professional and Related Occupations  Related Occupations People in a wide range of occupations work with statistics. Among these are actuaries, mathematicians, operations research analysts, computer scientists and database administrators, computer systems analysts, computer programmers, computer software engineers, engineers, economists, market and survey researchers, and financial analysts and personal financial advisors. Some statisticians also work as secondary or postsecondary teachers.  Sources of Additional Information For information about career opportunities in statistics, contact: ► American Statistical Association, 1429 Duke St., Alexandria, VA223143415. Internet: http://www.amstat.org  125  For more information on doctoral-level careers and training in mathematics, a field closely related to statistics, contact: >■ American Mathematical Society, 201 Charles St., Providence, RI029042213. 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 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 tollfree, and charges may result.  Architects, Surveyors, and Cartographers Architects, Except Landscape and Naval (Q*NET 17-1011.00)  Significant Points •  About 1 in 4 architects was self-employed—more than three times the proportion for all professional and related occupations.  •  Licensing requirements include a professional degree in architecture, 3 years of practical work training, and passing all divisions of the Architect Registration Ex­ amination.  •  Architecture graduates may face competition, especial­ ly for jobs in the most prestigious firms; opportunities will be best for those with experience working for a firm while still in school and for those with knowledge of computer-aided design and drafting technology.  Nature of the Work People need places in which to live, work, play, learn, worship, meet, govern, shop, and eat. These places may be private or public; indoors or outdoors; or rooms, buildings, or complexes, and together, they make up neighborhoods, towns, suburbs, and cities. Architects—licensed professionals trained in the art and sci­ ence of building design—transform these needs into concepts and then develop the concepts into images and plans of buildings that can be constructed by others. Architects design the overall aesthetic and look of buildings and other structures, but the design of a building involves far more than its appearance. Buildings also must be functional, safe, and economi­ cal and must suit the needs of the people who use them. Architects consider all these factors when they design buildings and other structures. Architects provide professional services to individuals and or­ ganizations planning a construction project. They may be involved in all phases of development, 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 of time explaining their ideas to clients, construction contrac­ Digitized deal for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tors, 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 various pre­ design services—conducting feasibility and environmental impact studies, selecting a site, or specifying the requirements the design must meet. For example, they may determine space requirements 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, architects develop final construction plans that show the building’s appearance and details for its construction. Accompanying these plans are draw­ ings of the structural system; air-conditioning, heating, and ventilat­ ing systems; electrical systems; communications systems; plumbing; and, possibly, site and landscape plans. The plans also specify the building materials and, in some cases, the interior furnishings. In developing designs, architects follow building codes, zoning laws, fire regulations, and other ordinances, such as those requiring easy access by disabled persons. Throughout the planning stage, they make necessary changes. Computer-aided design and drafting (CADD) technology has replaced traditional paper and pencil as the most common method for creating design and construction drawings. Continual 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 contracts. As construction proceeds, they may visit building sites to make sure that contractors follow the design, adhere to the schedule, use the specified materials, and meet work quality standards. The job is not complete until all construction is finished, required tests are conducted, and construction costs are paid. Sometimes, ar­ chitects also provide postconstruction services, such as facilities management. They advise on energy efficiency measures, evaluate how well the building design adapts to the needs of occupants, and make necessary improvements. Architects design a wide variety of buildings, such as office and apartment buildings, schools, churches, factories, hospitals, houses, and airport terminals. They also design complexes such as urban centers, college campuses, industrial parks, and entire communities. In addition, they may advise on the selection of building sites, prepare cost analysis and land-use studies, and do long-range planning for land development. Architects sometimes specialize in one phase of work. Some spe­ cialize in the design of one type of building—for example, hospitals,  126  Occupational Outlook Handbook  schools, or housing. Others focus on planning and predesign services or construction management and do minimal design work. They often work with engineers, urban planners, interior designers, landscape architects, and other professionals. In fact, architects spend a great deal of their time coordinating information from, and the work of, others engaged in the same project. Many architects—particularly at larger firms—use the Internet and e-mail to update designs and communicate changes efficiently. Architects also use the Internet to research product specifications and government regulations.  Working Conditions Architects usually work in a comfortable environment. Most of their time is spent in offices consulting with clients, develop­ ing 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 All States and the District of Columbia require individuals to be licensed (registered) before they may call themselves architects and contract to provide architectural services. During this time between graduation and becoming licensed, architecture school graduates generally work in the field under supervision of a licensed architect who takes legal responsibility for all work. Licensing requirements include a professional degree in architecture, a period of practical  t-  - a * ~  : III*]  I *  «*  5  ««:«** • Silt * ntt* <5  Architects often produce scale models of their designs. i in.i-i  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  training or internship, and a passing score on all divisions of the Architect Registration Examination (ARE). In most States, the professional degree in architecture must be from one of the 113 schools of architecture that have degree pro­ grams accredited by the National Architectural Accrediting Board (NAAB). However, State architectural registration boards set their own standards, so graduation from a non-NAAB-accredited program may meet the educational requirement for licensing in a few States. Three types of professional degrees in architecture are available through colleges and universities. The majority of all architectural degrees are from 5-year Bachelor of Architecture pro­ grams, intended for students entering university-level studies from high school or with no previous architectural training. In addition, a number of schools offer a 2-year Master of Architecture program for students with a preprofessional undergraduate degree in architecture or a related area, or a 3- or 4-year Master of Architecture program for students with a degree in another discipline. The choice of degree depends upon each individual’s preference and educational background. Prospective architecture students should consider the available options before committing to a program. For example, although the 5-year Bachelor ofArchitecture program offers the fastest route to the professional degree, courses are specialized, and if the student does not complete the program, transferring to a program offered by another discipline may be difficult. A typical program includes courses in architectural history and theory, building design, structures, technology, construction methods, professional practice, math, physical sciences, and liberal arts. Central to most architectural programs is the design studio, where students put into practice the skills and concepts learned in the classroom. During the final semester of many programs, students devote their studio time to creating an architectural project from beginning to end, culminating in a three-dimensional model of their design. Many schools of architecture also offer postprofessional degrees for those who already have a bachelor’s or master’s degree in ar­ chitecture or other areas. Although graduate education beyond the professional degree is not required for practicing architects, it may be for research, teaching, and certain specialties. Architects must be able to communicate their ideas visually to their clients. Artistic and drawing ability is helpful, but not essential, to such communication. More important are a visual orientation and the ability to conceptualize and understand spatial relationships. Good communication skills, the ability to work independently or as part of a team, and creativity are important qualities for anyone interested in becoming an architect. Computer literacy also is required for writing specifications, for two- and three­ dimensional drafting, and for financial management. Knowledge of CADD is essential and has become a critical tool for architects. Most schools now teach students CADD programs and methods that adhere to the National CAD Standards. All State architectural registration boards require architecture graduates to complete a training period—usually 3 years—before they may sit for the ARE, the third and final requi rement for becoming licensed. Every State, with the exception ofArizona, 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 and diversified training under the su­ pervision of a licensed architect over a 3-year period. 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. Architecture students who complete internships in architectural firms while still in school can count some of that time toward the required 3-year training period.  Professional and Related Occupations Interns in architectural firms may assist in the design of one part of a project, help prepare architectural documents or drawings, 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. After completing their on-the-job training period, interns are eligible to sit for the ARE. The examination tests a candidate’s knowledge, skills, and ability to provide the various services required in the design and construction of buildings. The test is broken down into 9 divisions consisting of either multiple choice or graphical ques­ tions; States give candidates an eligibility period for completion of all divisions of the exam that varies by State. Candidates who pass the ARE and meet all standards established by their State Board become licensed to practice in that State. Most States require some form of continuing education to main­ tain 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 credits annually or biennially through workshops, formal university classes, confer­ ences, self-study courses, or other sources. A growing number of architects voluntarily seek certification by the NCARB, which can facilitate an individual’s becoming licensed to practice in additional States. This practice is known as “reciprocity.” Certification is awarded after independent verification of the candidate’s educational transcripts, employment record, and professional references. Certification is the primary requirement for reciprocity of licensing among State Boards that are NCARB members. In 2004, approximately one-third of all licensed architects had NCARB certification. After becoming licensed and gaining experience, architects take on increasingly responsible duties, eventually managing entire projects. In large firms, architects may advance to supervisory or managerial positions. Some architects become partners in estab­ lished firms, while others set up their own practices. Graduates with degrees in architecture also enter related fields, such as graphic, interior, or industrial design; urban planning; real estate develop­ ment; civil engineering; and construction management.  Employment Architects held about 129,000 jobs in 2004. Approximately 3 out of 5 jobs were in the architectural, engineering, and related ser­ vices 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 construction of government buildings, such as the U.S. Departments of Defense and Interior, and the General Services Administration. About 1 in 4 architects was self-employed.  Job Outlook Employment of architects is expected to grow about as fast the average for all occupations through 2014. Besides employment growth, additional job openings will arise from the need to re­ place the many architects who are nearing retirement, and oth­ ers who transfer to other occupations or stop working for other reasons. Internship opportunities 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 es­ pecially 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 Digitized advantage for FRASERin obtaining intern positions after graduation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  127  Employment of architects is strongly tied to the activity of the construction industry. Strong growth is expected to come from nonresidential construction as demand for commercial space increases. Residential construction, buoyed by low interest rates, is also expected to grow as more and more people become homeowners. If interest rates rise significantly, this sector may see a falloff in home building. Current demographic trends also support an increase in demand for architects. As the population of Sunbelt States continues to grow, the people living there will need new places to live and work. As the population continues to live longer and baby-boom­ ers begin to retire there will be a need for more healthcare facili­ ties, nursing homes, and retirement communities. In education, 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. Some types of construction are sensitive to cyclical changes in the economy. Architects seeking design projects for office and re­ tail 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 institutional 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 sensitive and some parts of the Nation may have fewer new building projects than others. Also, many firms specialize in specific buildings, such as hospitals or office towers, and demand for these buildings may vary by region. Architects may find it increasingly necessary to gain reciprocity in order to compete for the best jobs and projects in other States. In recent years, some architecture firms have outsourced to architecture firms overseas the drafting of construction documents for large-scale commercial and residential projects. This trend is expected to continue and may have a negative impact on employment growth for lower level architects and interns who would normally gain experience by producing these drawings. However, most firms will keep design services in-house, and opportunities will be best for those architects that are able to distinguish themselves from others with their creativity.  Earnings Median annual earnings of wage and salary architects were $60,300 in May 2004. The middle 50 percent earned between $46,690 and $79,230. The lowest 10 percent earned less than $38,060, and the highest 10 percent earned more than $99,800. Those just starting their internships can expect to earn considerably less. Earnings of partners in established architectural firms may fluctu­ ate because of changing business conditions. Some architects 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.  Related Occupations Architects design buildings and related structures. Construction managers, like architects, also plan and coordinate activities con­ cerned with the construction and maintenance of buildings and facilities. Others who engage in similar work are landscape archi­ tects, civil engineers, urban and regional planners, and designers, including interior designers, commercial and industrial designers, and graphic designers.  128  Occupational Outlook Handbook  Sources of Additional Information Head:Information about education and careers in architecture can be obtained from: >- The American Institute of Architects, 1735 New York Ave. NW„ Wash­ ington, DC 20006. Internet: http://www.aia.org >• Intern Development Program, National Council of Architectural Regis­ tration Boards, Suite 1100K, 1801 K Street NW., Washington, D.C. 20006­ 1310. Internet: http://www.ncarb.org  Landscape Architects (0*NET 17-1012.00)  Significant Points •  More than 26 percent of all landscape architects are self-employed—more than 3 times the proportion for all professionals.  •  A bachelor’s degree in landscape architecture is the minimum requirement for entry-level jobs; many employers prefer to hire landscape architects who also have completed at least one internship.  •  Landscape architect jobs are expected to increase due to a growing demand for incorporating natural elements into man-made environments, along with the need to meet a wide array of environmental restrictions.  Nature of the Work Everyone enjoys attractively designed residential areas, public parks and playgrounds, college campuses, shopping centers, golf courses, parkways, and industrial parks. Landscape architects design these areas so that they are not only functional, but also beautiful, and compatible with the natural environment. They plan the location of buildings, roads, and walkways, and the arrangement of flowers, shrubs, and trees. Landscape architects work for many types of organizations—from real estate development firms starting new projects to municipalities constructing airports or parks—and they often are involved with the development of a site from its conception. Working with architects, surveyors, and engineers, landscape architects help determine the best arrangement of roads and buildings. They also collaborate with environmental scientists, foresters, and other professionals to find the best way to conserve or restore natural resources. Once these decisions are made, landscape architects create detailed plans indi­ cating new topography, vegetation, walkways, and other landscaping details, such as fountains and decorative features. In planning a site, landscape architects first consider the nature and purpose of the project and the funds available. They analyze the natural elements of the site, such as the climate, soil, slope of the land, drainage, and vegetation; observe where sunlight falls on the site at different times of the day and examine the site from various angles; and assess the effect of existing buildings, roads, walkways, and utilities on the project. After studying and analyzing the site, landscape architects prepare a preliminary design. To account for the needs of the client as well as the conditions at the site, they frequently make changes before a final design is approved. They also take into account any local, State, or Federal regulations, such as those protecting wetlands or historic resources. In preparing designs, computer-aided design (CAD) has become an essentia] tool for most landscape architects. Many land­ scape architects also use video simulation to help clients envision the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  proposed ideas and plans. For larger scale site planning, landscape architects also use geographic information systems technology, a computer mapping system. Throughout all phases of the planning and design, landscape architects consult with other professionals, such as civil engineers, 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 reports, 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. Landscape architects then mainly monitor the imple­ mentation of their design, with general contractors or landscape contractors usually directing 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 residential development, street and highway beautification, waterfront improvement projects, parks and playgrounds, or shopping centers. Still others work in regional planning and resource management; feasibility, environmental im­ pact, and cost studies; or site construction. Increasingly, landscape architects are becoming involved with projects in environmental remediation, such as preservation and restoration of wetlands or abatement of stormwater run-off in new developments. Historic land­ scape preservation and restoration is another important area where landscape architects are increasingly playing an important role. Most landscape architects do at least some residential work, but relatively few limit their practice to individual homeowners. Res­ idential landscape design projects usually are too small to provide suitable income compared with larger commercial or multiunit resi­ dential projects. Some nurseries offer residential landscape design services, but these services often are performed by design profes­ sionals with fewer formal credentials such as landscape designers, or by others with training and experience in related areas. Landscape architects who work for government agencies do site and landscape design for government buildings, parks, and other public lands, as well as park and recreation planning in national parks and forests. In addition, they prepare environmental impact statements and studies on environmental issues such as public land-use planning. Some restore degraded land, such as mines or landfills. Other landscape architects use their skills in traffic-calm­ ing, the “art” of slowing traffic down through use of traffic design, enhancement of the physical environment, and greater attention to aesthetics.  Working Conditions Landscape architects spend most of their time in offices creating plans and designs, preparing models and cost estimates, doing re­ search, 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 completed, they may spend additional time at the site observing or supervising the construction. Those who work in large national or regional firms may spend considerably more time out of the office traveling to sites away from the local area. Salaried employees in both government and landscape archi­ tectural firms usually work regular hours; however, they may work overtime to meet a project deadline. Hours of self-employed land­ scape architects vary depending on the demands of the projects on which they are working.  Professional and Related Occupations  129  use of computer-aided design, geographic information systems, and video simulation. In 2004,47 States required landscape architects to be licensed or registered. Licensing is based on the Landscape Architect Registra­ tion Examination (L.A.R.E.), sponsored by the Council of Landscape Architectural Registration Boards and administered in two portions, graphic and multiple choice. Each portion of the testing is conducted over two days. 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 registered landscape architect, although standards vary from State to State. Currently, 14 States require that a State examination be passed in addition to the L.A.R.E. to satisfy registration requirements. State examinations, which usually are 1 hour in length and completed at the end of the L.A.R.E., focus on laws, environmental regulations, plants, soils, climate, and any other characteristics unique to the State. Because State requirements for licensure are not uniform, land­ scape architects may not find it easy to transfer their registration 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 registered landscape architect, and passing the L.A.R.E. can satisfy requirements in most States. Through this means, a landscape architect can obtain certi­ fication from the Council of Landscape Architectural Registration Boards, and so gain reciprocity (the right to work) in other States. In the Federal Government, candidates for entry positions should have a bachelor’s or master’s degree in landscape architecture. The Federal Government does not require its landscape architects to be  Landscape architects spend much time in the office, reviewing plans of the site.  Training, Other Qualifications, and Advancement A bachelor’s or master’s degree in landscape architecture usually is necessary for entry into the profession. A bachelor’s degree in landscape architecture takes 4 or 5 years to complete. There also are two types of accredited master’s degree programs. The most common type of master’s degree is a 3-year first professional de­ gree program designed for students with an undergraduate degree in another discipline. The second type of master’s degree is a 2year second professional degree program for students who have a bachelor’s degree in landscape architecture and who wish to teach or specialize in some aspect of landscape architecture, such as regional planning or golf course design. In 2004, 59 colleges and universities offered 77 undergradu­ ate and graduate programs in landscape architecture that were accredited by the Landscape Architecture Accreditation Board of the American Society of Landscape Architects. College courses required in these programs usually include technical subjects such as surveying, landscape design and construction, landscape ecol­ ogy, 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 landscape archi­ tecture curriculums. Whenever possible, students are assigned real projects, providing them with valuable hands-on experience. While working on these projects, students become more proficient in the  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  licensed. Persons planning a career in landscape architecture should ap­ preciate nature, enjoy working with their hands, and possess strong analytical skills. Creative vision and artistic talent also are desirable qualities. Good oral communication skills are essential; landscape architects must be able to convey their ideas to other professionals and clients, and to make presentations before large groups. Strong writing skills also are valuable, as is knowledge of computer appli­ cations 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. The ability to draft and design using CAD software is essential. Many employers recommend that prospective landscape architects complete at least one summer internship with a landscape architecture firm in order to gain an understanding of the day-to-day operations of a small business, including how to win clients, generate fees, and work within a budget. In States where licensure is required, new hires may be called “apprentices” or “intern landscape architects” until they become 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 landscaped. Some are allowed to participate in the actual design of a project. However, interns must perform all work under the supervi­ sion of a licensed landscape architect. Additionally, all drawings and specifications must be signed and sealed by the licensed landscape architect, who takes legal responsibility for the work. After gaining experience and becoming licensed, landscape architects usually can carry a design through all stages of development. After several years, they may become project managers, taking on the responsibility for meeting 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 because start-up costs, after an initial investment in CAD software, are relatively low. Self-discipline, business acumen, and good marketing skills  130  Occupational Outlook Handbook  are important qualities for those who choose to open their own business. Even with these qualities, however, some may struggle while building a client base. Those with landscape architecture training also qualify for jobs closely related to landscape architecture, and may, after gaining some experience, become construction supervisors, land or environmental planners, or landscape consultants.  Employment Landscape architects held about 25,000 jobs in 2004. Almost 6 out of 10 workers were employed in firms that provide architectural, landscape architectural, engineering, and landscaping services. State and local governments were the next largest employers. About 1 out of 4 landscape architects was self-employed. Employment of landscape architects is concentrated in urban and suburban areas throughout the country; some landscape architects 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 increase faster than the average for all occupations through the year 2014. In addition to growth, the need to replace landscape architects who retire or leave the labor force will produce some additional job openings. Employment will grow because the expertise of landscape architects will be highly sought after in the planning and develop­ ment of new residential, commercial, and other types of 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. In addition, new demands to manage stormwater run-off in both existing and new landscapes, combined with the growing need to manage water resources in the Western States, should cause increased demand for this occupation’s services. New construction also is increasingly contingent upon compli­ ance with environmental regulations, zoning laws, and water restric­ tions, which will spur demand for landscape architects to help plan sites that meet these requirements and integrate new structures with the natural environment in the least disruptive way. Landscape archi­ tects also will be increasingly involved in preserving and restoring wetlands and other environmentally sensitive sites. Continuation of the Transportation Equity Act for the TwentyFirst Century also is expected to spur employment for landscape architects, particularly through State and local governments. This Act, known as TEA-21, provides funds for surface transportation and transit programs, such as interstate highway construction and maintenance and environment-friendly pedestrian and bicycle trails. In addition to the work related to new development and construc­ tion, landscape architects are expected to be involved in historic preservation, land reclamation, and refurbishment of existing sites. They are also doing more residential design work as house­ holds spend more on landscaping than in the past. Because land­ scape architects can work on many different types of projects, they may have an easier time than other design professionals finding em­ ployment when traditional construction slows down. Opportunities will vary from year to year, and by geographic region, depending 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. New graduates can expect to face competition for jobs in the largest and most prestigious landscape architecture firms, but should face good job opportunities overall as demand increases, while the number of graduates of landscape architecture holds steady or only   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  goes up slightly. Opportunities will be best for landscape architects who develop strong technical skills—such as computer design—and communication skills, as well as knowledge of environmental codes and regulations. Those with additional training or experience in urban planning increase their opportunities for employment in landscape architecture firms that specialize in site planning as well as landscape design. Many employers prefer to hire entry-level land­ scape architects who have internship experience, which significantly reduces the amount of on-the-job training required.  Earnings In May 2004, median annual earnings for landscape architects were $53,120. The middle 50 percent earned between $40,930 and $70,400. The lowest 10 percent earned less than $32,390 and the highest 10 percent earned over $90,850. Architectural, engineering, and related services employed more landscape architects than any other group of industries, and there the median annual earnings were $51,670 in May 2004. In 2005, the average annual salary for all landscape architects in the Federal Government in nonsupervisory, supervisory, and managerial positions was $74,508. Because many landscape architects work for small firms or are self-employed, benefits tend to be less generous than those provided to workers in large organizations.  Related Occupations Landscape architects use their knowledge of design, construction, land-use planning, and environmental issues to develop a landscape project. Others whose work requires similar skills are architects, except landscape and naval; surveyors, cartographers, photogrammetrists, and surveying technicians; civil engineers; and urban and regional planners. Landscape architects also must know how to grow and use plants in the landscape. Some conservation scientists and foresters and biological scientists study plants in general and do related work, while environmental scientists and geoscientists work in the area of environmental remediation.  Sources of Additional Information Additional information, including a list of colleges and universities offering accredited programs in landscape architecture, is available from: >- American Society of Landscape Architects, Career Information, 636 Eye St. NW., Washington, DC 20001-3736. Internet: http://www.asla.org General information on registration or licensing requirements is available from: >- Council of Landscape Architectural Registration Boards, 144 Church Street NW., Suite 201, Vienna, VA 22180-4550. Internet: http://www.clarb.org  Surveyors, Cartographers, Photogrammetrists, and Surveying Technicians (0*NET 17-1021.00, 17-1022.00, 17-3031.01, 17-3031.02)  Significant Points •  About 2 out of 3 jobs were in architectural, engineer­ ing, and related services.  •  Opportunities will be best for surveyors, cartographers, and photogrammetrists who have a bachelor’s degree and strong technical skills.  •  Applicants for jobs as technicians may face competition.  Professional and Related Occupations  Nature of the Work Surveyors, cartographers, and photogrammetrists are responsible for measuring and mapping the earth’s surface. Traditionally, surveyors establish official land, airspace, and water boundaries. They write descriptions of land for deeds, leases, and other legal documents; define airspace for airports; and take measurements of construction and mineral sites. Other surveyors provide data relevant to the shape, contour, location, elevation, or dimension of land or land features. Cartographers compile geographic, political, and cultural information and prepare maps of large areas. Photogrammetrists measure and analyze aerial photographs that are subsequently used to prepare detailed maps and drawings. Surveying and mapping technicians assist these professionals in their duties by collecting data in the field and using it to calculate mapmaking information for use in performing computations and computer-aided drafting. 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 refer­ ence points, and determine the precise location of important features in the survey area. Surveyors research legal records, look for evidence of previous boundaries, and analyze the data to determine the location of boundary lines. They also record the results of surveys, verify the accuracy of data, and prepare plots, maps, and reports. Surveyors who establish boundaries must be licensed by the State in which they work. Surveyors are sometimes called to provide expert testimony in court cases concerning matters pertaining to surveying. Cartographers measure, map, and chart the earth’s surface. Their work involves everything from performing geographical research and compiling data to actually producing maps. Cartographers collect, analyze, and interpret both spatial data—such as latitude, longitude, elevation, and distance—and nonspatial data—for example, popu­ lation density, land-use patterns, annual precipitation levels, and demographic characteristics. Their maps may give both physical and social characteristics of the land. They prepare maps in either digital or graphic form, using information provided by geodetic surveys, aerial photographs, and satellite data. Photogrammetrists prepare detailed maps and drawings from aerial photographs, usually of areas that are inaccessible, difficult, or more costly to survey by other methods. Map editors develop and verify the contents of maps, using aerial photographs and other reference sources. Some States require photogrammetrists to be licensed as surveyors. Some surveyors perform specialized functions closer to those of cartographers than to those of traditional surveyors. For example, geodetic surveyors use high-accuracy techniques, including satel­ lite observations (remote sensing), to measure large areas of the earth’s surface. Geophysical prospecting surveyors mark sites for subsurface exploration, usually in relation to 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. There is more to surveying and cartography than meets the eye. Chains, transits, theodolites, and plumb lines have given way to cutting-edge technology such as the Global Positioning System (GPS), laptops, and robotic total stations as the preferred tools of surveyors. Advanced computer software known as Geographic In­ formation Systems (GIS) have become an invaluable tool to booth surveyors and cartographers. Surveyors are able to use GPS to locate reference points with a high degree of precision. To use this system, a surveyor places a satellite signal receiver—a small instrument mounted on a tri­ pod—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  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  131  position. The receiver also can be placed in a vehicle for tracing out road systems. Because receivers now come in different sizes and shapes, and because the cost of receivers has fallen, much more sur­ veying work can be done with GPS. Surveyors then must interpret and check the results produced by the new technology. Fieldwork is done by a survey party that gathers the information needed by the surveyor. A typical survey party consists of a party chief and one or more surveying technicians and helpers. The party chief, who may be either a surveyor or a senior surveying techni­ cian, leads day-to-day work activities. Surveying technicians assist the party chief by adjusting and operating surveying instruments, such as the total station, which measures and records angles and distances simultaneously. Surveying technicians or assistants posi­ tion and hold the vertical rods, or targets, that the operator sights on to measure angles, distances, or elevations. In addition, they may hold measuring tapes, if electronic distance-measuring equipment is not used. Surveying technicians compile notes, make sketches, and enter the data obtained from surveying instruments into computers either in the field or at the office. Survey parties also may include laborers or helpers who perform less skilled duties, such as clearing brush from sight lines, driving stakes, or carrying equipment. GIS software is capable of assembling, integrating, analyzing, and displaying data identified according to location and compiled from previous surveys and mappings. GIS software has become an important tool of both surveyors and cartographers. A GIS typically is used to handle maps which combine information that is useful for environmental studies, geology, engineering, planning, business marketing, and other disciplines. As more of these systems are de­ veloped, a new type of mapping scientist is emerging from the older specialties of photogrammetrist and cartographer; the geographic information specialist combines the functions of mapping science and surveying into a broader field concerned with the collection and analysis of geographic data.  Working Conditions Surveyors and surveying technicians usually work an 8-hour day, 5 days a week, and may spend a lot of time outdoors. Sometimes they work  Illt®SS  Knowledge of GIS and GPS technologies will enhance one’s employment prospects.  132  Occupational Outlook Handbook  longer hours during the summer, when weather and light conditions are most suitable for fieldwork. Seasonal demands for longer hours are related to demand for specific surveying services. For example, construc­ tion-related work may be limited during times of inclement weather and aerial photography is most effective when the leaves are off the trees. Surveyors and technicians engage in active, sometimes strenu­ ous, work. They often stand for long periods, walk considerable distances, and climb hills with heavy packs of instruments and other equipment. They also can be exposed to all types of weather. Trav­ eling is sometimes part of the job, and land surveyors and technicians may commute long distances, stay away from home overnight, or temporarily relocate near a survey site. Although surveyors can spend considerable time indoors while planning surveys, searching court records for deed information, analyzing data, and preparing reports and maps, cartographers and photogrammetrists spend virtually all of their time in offices using computers and seldom visit the sites they are mapping.  Training, Other Qualifications, and Advancement Most people prepare for a career as a licensed surveyor by combining postsecondary school courses in surveying with extensive on-thejob training. However, as technology advances, a 4-year college degree is increasingly becoming a prerequisite. A number of uni­ versities now offer 4-year programs leading to a bachelor’s degree in surveying. Junior and community colleges, technical institutes, and vocational schools offer 1 -year, 2-year, and 3-year programs in both surveying and surveying technology. All 50 States and all U.S. territories license surveyors. 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 examination prepared by the State licens­ ing board. In addition, candidates must meet varying standards of formal education and work experience in the field. In the past, many with little formal training in surveying started as members of survey crews and worked their way up to become licensed surveyors. Currently, the route to licensure is most often a combination of 4 years of college, followed by passage of the Fundamentals of Surveying Exam. After passing this exam, most candidates continue to work under the supervision of an experienced surveyor for another 4 years and then take the Principles and Practice of Surveyors Exam for licensure. Specific requirements for train­ ing and education vary among the States. An increasing number of States require a bachelor’s degree in surveying or in a closely related field, such as civil engineering or forestry (with courses in surveying), regardless of the number of years of experience. Some States require the degree to be from a school accredited by the Ac­ creditation Board for Engineering and Technology (ABET). Many States also have a continuing education requirement. High school students interested in surveying should take courses in algebra, geometry, trigonometry, drafting, mechanical drawing, and computer science. High school graduates with no formal training in surveying usually start as apprentices. Beginners with postsecondary school training in surveying usually can start as technicians or assistants. With on-the-job experience and formal training in surveying—either in an institutional program or from a correspondence school—workers may advance to senior survey technician, then to party chief, and, in some cases, to licensed sur­ veyor (depending on State licensing requirements). However, it is becoming increasingly difficult to gain licensure without a formal education in surveying. The National Society of Professional Surveyors, a member organization of the American Congress on Surveying and Mapping, has a voluntary certification program for surveying technicians.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Technicians are certified at four levels requiring progressive amounts of experience, in addition to the passing of written examinations. Although not required for State licensure, many employers require certification for promotion to positions with greater responsibilities. Surveyors should have the ability to visualize objects, distances, sizes, and abstract forms. They must work with precision and ac­ curacy, because mistakes can be costly. Members of a survey party must be in good physical condition, because they work outdoors and often carry equipment over difficult terrain. They need good eyesight, coordination, and hearing to communicate verbally and manually (using hand signals). Surveying is a cooperative opera­ tion, so good interpersonal skills and the ability to work as part of a team are important. Good office skills also are essential, because surveyors must be able to research old deeds and other legal papers and prepare reports that document their work. Cartographers and photogrammetrists usually have a bachelor’s degree in cartography, geography or a related field such as survey­ ing, engineering, forestry, or a physical science. Although it is possible to enter these positions through previous experience as a photogrammetric or cartographic technician, nowadays most car­ tographic and photogrammetric technicians have had some special­ ized postsecondary school training. With the development of GIS, cartographers and photogrammetrists need additional education and stronger technical skills—including more experience with comput­ ers—than in the past. The American Society for Photogrammetry and Remote Sensing has a voluntary certification program for photogrammetrists. To qualify for this professional distinction, individuals must meet work experience standards and pass an oral or a written examination.  Employment Surveyors, cartographers, photogrammetrists, and surveying tech­ nicians held about 131,000 jobs in 2004. The following tabulation shows the distribution of employment by occupational specialty: Surveying and mapping technicians............................................. Surveyors...................................................................................... Cartographers and photogrammetrists.........................................  65,000 56,000 11,000  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 2 out of 3 jobs for these workers. Federal, State, and local governmental agencies provided almost 1 in 6 jobs. Major Federal Government employers are the U.S. Geological Survey (USGS), the Bureau of Land Management (BLM), the National Geodetic Survey, and the Army Corps of Engineers. Most surveyors in State and local government work for highway departments or urban planning and redevelopment agencies. Construction, mining and utility companies also employ surveyors, cartographers, photogram­ metrists, and surveying technicians. Only a small number were self-employed in 2004.  Job Outlook Overall employment of surveyors, cartographers, photogrammetrists, and surveying technicians is expected to grow about as fast as the average for all occupations through the year 2014. The widespread availability and use of advanced technologies, such as GPS, GIS, and remote sensing, will continue to increase both the accuracy and productivity of these workers, limiting job growth to some extent. However, job openings will continue to arise from the need to replace workers who transfer to other occupations or who leave the labor force altogether. Many of the workers in these occupations are approaching retirement age.  Professional and Related Occupations Opportunities for surveyors, cartographers, and photogrammetrists should remain concentrated in architectural, engineering, and related services firms. Areas such as urban planning, emer­ gency preparedness, and natural resource exploration and map­ ping also should provide employment growth, particularly with regard to producing maps for the management of emergencies and updating maps with the newly available technology. However, employment may fluctuate from year to year as a function of construction activity or with mapping needs for land and resource 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 were in the past. Opportunities for technicians should be available in basic GIS-related data-entry work. However, many persons possess the basic skills needed to qualify for these jobs, so applicants for technician jobs may face competition. 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 surveying services, will mean better opportunities for cartographers and photogram­ metrists who are involved in the development and use of geographic and land information systems. New technologies, such as GPS and GIS, also may enhance employment opportunities for surveyors, and for surveying technicians who have the educational background and who have acquired technical skills that enable them to work with the new systems. At the same time, upgraded licensing requirements will continue to limit opportunities for professional advancement for those without a bachelor’s degree.  Earnings  Median annual earnings of cartographers and photogrammetrists were $46,080 in May 2004. The middle 50 percent earned between $35,160 and $59,830. The lowest 10 percent earned less than $28,210 and the highest 10 percent earned more than $74,440. Median annual earnings of surveyors were $42,980 in May 2004. The middle 50 percent earned between $31,940 and $57,190. The lowest 10  133  percent earned less than $24,640 and the highest 10 percent earned more than $71,640. Median hourly earnings of surveyors employed in archi­ tectural, engineering, and related services were $41,710 in May 2004. Median annual earnings of surveying and mapping technicians were $30,380 in May 2004. The middle 50 percent earned between $23,600 and $40,100. The lowest 10 percent earned less than $ 19,140, and the highest 10 percent earned more than $51,070. Me­ dian annual earnings of surveying and mapping technicians employed in architectural, engineering, and related services were $28,610 in May 2004, while those employed by local governments had median annual earnings of $34,810.  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. Cartography and geodetic surveying are related to the work of environmental scien­ tists and geoscientists, who study the earth’s internal 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 to be used.  Sources of Additional Information For career information on surveyors, cartographers, photogram­ metrists, and surveying technicians, contact: >- 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 requirements, and the surveying technician certification program is available from: > National Society of Professional Surveyors, Suite 403,6 Montgomery Vil­ lage Ave., Gaithersburg, MD 20879. Internet: http://www.acsm.net/nsps For information on a career as a geodetic surveyor, contact: > American Association of Geodetic Surveying (AAGS), Suite 403, 6 Montgomery Village Ave., Gaithersburg, MD 20879. Internet: http://www.acsm.net/aags General information on careers in photogrammetry and remote sensing is available from: > ASPRS: Imaging and Geospatial Information Society, 5410 Grosvenor Ln., Suite 210, Bethesda, MD 20814-2160. Internet: http://www.asprs.org  Engineers (0*NET 17-2011.00, 17-2021.00, 17-2031.00, 17-2041.00, 17-2051.00, 17-2061.00, 17-2071.00, 17-2072.00,17-2081.00, 17-2111.01,17­ 2111.02, 17-2111.03, 17-2112.00,17-2121.01,17-2121.02, 17-2131.00. 17-2141.00, 17-2151.00, 17-2161.00, 17-2171.00, 17-2199.99)  Significant Points • • •  Overall job opportunities in engineering are expected to be good, but will vary by specialty. A bachelor’s degree is required for most entry-level jobs. Starting salaries are significantly higher than those of college graduates in other fields.  •  Continuing education is critical for engineers wishing to enhance their value to employers as technology evolves.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 perceived social needs and commercial ap­ plications. Engineers consider many factors when developing a new product. For example, in developing an industrial robot, engineers precisely specify the functional requirements; design and test the robot’s components; integrate the components to produce the final design; and evaluate the design’s overall effectiveness, cost, reli­ ability, and safety. This process applies to the development of many different products, such as chemicals, computers, gas turbines, helicopters, and toys. In addition to design and development, many engineers work in testing, production, or maintenance. These engineers supervise production in factories, determine the causes of component failure, and test manufactured products to maintain quality. They also  134  Occupational Outlook Handbook  estimate the time and cost to complete projects. Some move into engineering management or into sales. In sales, an engineering background enables them to discuss technical aspects and assist in product planning, installation, and use. Supervisory engineers are responsible for major components or entire projects. (See the statements on sales engineers and 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 system operates; and to generate specifications for parts. Many engineers also use computers to monitor product quality and control process efficiency. The field of nanotechnology, 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. This section provides details on the 17 engineering specialties covered in the Federal Govern­ ment’s Standard Occupational Classification system and on engineering in general. Numerous specialties are recognized by professional societies, and the major branches of engineering have numerous subdivisions. Some examples include structural and transportation engineering, which are subdivisions of civil engineering; and ceramic, metallurgical, and polymer engineer­ ing, which are subdivisions of materials engineering. Engineers also may specialize in one industry, such as motor vehicles, or in one type of technology, such as turbines or semiconductor 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 aeronautical engineers, and those working specifically with spacecraft are astronautical engineers. Aerospace engineers develop new technologies for use in aviation, defense systems, and space exploration, often specializing in areas such as structural design, guidance, navigation and control, instrumentation and communication, or production methods. They also may specialize in a particular type of aerospace product, such as commercial aircraft, military fighter jets, helicop­ ters, spacecraft, or missiles and rockets, and may become experts  .  ■  :.  ■  ..........   Engineers use computer models to develop and test new designs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  in aerodynamics, thermodynamics, celestial mechanics, propulsion, acoustics, or guidance and control systems.  • Agricultural engineers apply knowledge of engineering tech­ nology and science to agriculture and the efficient use of biological resources. (See biological scientists and agricultural and food scien­ tists elsewhere in the Handbook.) They design agricultural machinery and equipment and agricultural structures. Some specialize in areas such as power systems and machinery design; structures and envi­ ronment engineering; and food and bioprocess engineering. They develop ways to conserve soil and water and to improve the process­ ing 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 principles and practices. Many do research, along with life scientists, chem­ ists, and medical scientists, to develop and evaluate systems and products such as artificial organs, prostheses (artificial devices that replace missing body parts), instrumentation, medical information systems, and health management and care delivery systems. (See biological scientists, medical scientists, and chemists and materi­ als scientists elsewhere in the Handbook.) Biomedical engineers may also design devices used in various medical procedures, imaging systems such as magnetic resonance imaging (MRI), and devices for automating insulin injections or controlling body functions. Most engineers in this specialty need a sound back­ ground in another engineering specialty, such as mechanical or electronics engineering, in addition to specialized biomedical training. Some specialties within biomedical engineering include biomaterials, biomechanics, medical imaging, rehabilitation engi­ neering, 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 manufacturing products and treating byproducts, and supervise production. Chem­ ical engineers also work in a variety of manufacturing industries other than chemical manufacturing, such as those producing energy, electronics, food, clothing, and paper. They also work in healthcare, biotechnology, and business services. Chemical engineers apply principles of chemistry, physics, mathematics, and mechanical and electrical engineering. (See chemists and materials scientists, physicists and astronomers, and mathematicians elsewhere in the Handbook.) Some may specialize in a particular chemical process, such as oxidation or polymerization. Others specialize in a particular field, such as materials science, or in the development of specific products. They must be aware of all aspects of chemicals manufac­ turing 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 regu­ lations and potential environmental hazards such as earthquakes. Civil engineering, considered one of the oldest engineering disciplines, en­ compasses many specialties. The major specialties are structural, water resources, construction, environmental, transportation, 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 installation of computer hardware and supervise  Professional and Related Occupations its manufacture and installation. Hardware refers to computer chips, circuit boards, computer systems, and related equipment such as keyboards, modems, and printers. (Computer software engineers—often simply called computer engineers—design and develop the software systems that control computers. These work­ ers are covered elsewhere in the Handbook.) The work of computer hardware engineers is very similar to that of electronics engineers, but, unlike electronics engineers, computer hardware engineers work exclusively with computers and computer-related equipment. The rapid advances in computer technology are largely a result of the research, development, and design efforts of computer hardware engineers.  • Electrical engineers design, develop, test, and supervise the manufacture of electrical equipment. Some of this equipment includes electric motors; machinery controls, lighting, and wiring in buildings; automobiles; aircraft; radar and navigation systems; and power-generating, -controlling, and transmission devices used by electric utilities. Although the terms “electrical” and “electron­ ics” engineering often are used interchangeably in academia and industry, electrical engineers have traditionally focused on the generation and supply of power, whereas electronics engineers have worked on applications of electricity to control systems or signal processing. Electrical engineers specialize 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 provide the location of a vehicle. Electronics engineers 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 related exclusively to computer hardware are considered computer hardware engineers. Electronics engineers specialize in areas such as communications, signal processing, and control sys­ tems or have a specialty within one of these areas—industrial robot 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 engineers con­ duct 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 mu-  ■W / , ■•!  Collaboration speeds design work and introduces novel approaches   to problems. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  135  nicipal water supply and industrial wastewater treatment systems. They conduct research on the environmental impact of proposed construction projects, analyze scientific data, and perform qual­ ity-control checks. Environmental engineers 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 depletion. They may also be involved in the protection of wildlife. Many environmental engineers work as consultants, helping their clients to comply with regulations and to clean up hazardous sites.  • Health and safety engineers, except mining safety engineers and inspectors, promote worksite or product safety by applying knowledge of industrial processes and mechanical, chemical, and hu­ man performance principles. Using this specialized knowledge, they identify and measure potential hazards to people or property, such as the risk of fires or the dangers involved in the handling of toxic chemicals. Health and safety engineers develop procedures and designs to reduce the risk of injury or damage. Some work in manufacturing industries to ensure the designs of new products do not create unnecessary hazards. They must be able 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, materials, informa­ tion, and energy—to make a product or to provide a service. They are mostly concerned with increasing productivity through the manage­ ment of people, methods of business organization, and technology. To solve organizational, production, and related problems efficiently, industrial engineers carefully study the product requirements, use mathematical methods to meet those requirements, and design manufacturing and information systems. They develop management control systems to aid in financial planning and cost analysis, and de­ sign 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, as well as determine the most efficient plant locations. Industrial engineers develop wage and salary administration systems and job evaluation programs. Many industrial engineers move into management positions because 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 related equipment. They design and supervise the construction of every­ thing from aircraft carriers to submarines, and from sailboats 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. Workers who operate or supervise the operation of marine machinery on ships and other vessels also may be called marine engineers or, more frequently, ship engineers. (These workers are covered under water transportation occupations elsewhere in the Handbook.) • Materials engineers are involved in the development, process­ ing, and testing of the materials used to create a range of products, from computer chips and television screens to golf clubs and snow skis. They work with metals, ceramics, plastics, semiconductors, and composites to create new materials that meet certain mechani­ cal, electrical, and chemical requirements. They also are involved in selecting materials for new applications. Materials engineers have developed the ability to create and then study materials at an atomic level, using advanced processes to replicate the characteristics of materials and their components with computers. Most materi­ als engineers specialize in a particular material. For example,  136  Occupational Outlook Handbook energy—or on the development of fusion energy. Some specialize in the development of nuclear power sources for spacecraft; others find industrial and medical uses for radioactive materials, as in equipment used to diagnose and treat medical problems.  Not all engineering work is done at a desk; many engineers spend part of their time in laboratories andfactories. metallurgical engineers specialize in metals such as steel, and ceramic engineers develop ceramic materials and the processes for making ceramic materials into useful products such as glassware or fiber optic communication lines.  • Mechanical engineers research, develop, design, manu­ facture, and test tools, engines, machines, and other mechanical devices. They work on power-producing machines such as electric generators, internal combustion engines, and steam and gas turbines, as well as power-using machines such as refrigeration and air-condi­ tioning equipment, machine tools, material handling systems, eleva­ tors and escalators, industrial production equipment, and robots used in manufacturing. Mechanical engineers also design tools that other engineers need for their work. Mechanical engineering is one of the broadest engineering disciplines. Mechanical engineers may work in production operations in manufacturing or agriculture, maintenance, or technical sales; many are administrators or managers.  • Petroleum engineers search the world for reservoirs con­ taining oil or natural gas. Once these resources are discovered, petroleum engineers work with geologists and other specialists to understand the geologic formation and properties of the rock con­ taining the reservoir, determine the drilling methods to be used, and monitor drilling and production operations. They design equip­ ment and processes to achieve the maximum profitable recovery of oil and gas. Because only a small proportion of oil and gas in a reservoir flows out under natural forces, petroleum engineers de­ velop 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 techniques 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. Working Conditions Most engineers work in office buildings, laboratories, or industrial plants. Others may spend time outdoors at construction sites and  • 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 trans­ porting minerals to processing plants. Mining engineers are respon­ sible for the safe, economical, and environmentally sound operation of mines. Some mining engineers work with geologists and metal­ lurgical engineers to locate and appraise new ore deposits. Others develop new mining equipment or direct mineral- processing opera­ tions that separate minerals from the dirt, rock, and other materials with which they are mixed. Mining engineers frequently specialize in the mining of one mineral or metal, such as coal or gold. With increased emphasis on 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 inspect walls and roof surfaces, monitor air quality, and examine mining equipment for compliance with safety practices.  • Nuclear engineers research and develop the processes, instruments, and systems used to derive benefits from nuclear energy and radiation. They design, develop, monitor, and operate nuclear plants to generate power. They may work on the nuclear fuel cycle—the production, handling, and use of nuclear fuel and the safe disposal of waste produced by the generation of nuclear  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Engineering work requires strong math skills and attention to detail.  Professional and Related Occupations oil and gas exploration and production sites, where they monitor or direct operations or solve onsite problems. Some engineers travel extensively to plants or worksites. Many engineers work a standard 40-hour week. At times, dead­ lines or design standards may bring extra pressure to a job, requiring engineers to work longer hours.  Training, Other Qualifications, and Advancement A bachelor’s degree in engineering is required for almost all entrylevel engineering jobs. College graduates with a degree in a physical science or mathematics occasionally may qualify for some engineer­ ing jobs, especially in specialties in high demand. Most engineering degrees are granted in electrical, electronics, mechanical, or civil engineering. However, engineers trained in one branch may work in related branches. For example, many aerospace engineers have training in mechanical engineering. This flexibility allows employ­ ers to meet staffing needs in new technologies and specialties in which engineers may be in short supply. It also allows engineers to shift to fields with better employment prospects or to those that more closely match their interests. Most engineering programs involve a concentration of study in an engineering specialty, along with courses in both mathematics and the physical and life sciences. General courses not directly related to engineering, such as those in the social sciences or humanities, are often a required component of programs. Many programs also include courses in general engineering. A design course, sometimes accompanied by a computer or laboratory class or both, is part of the curriculum of most programs. In addition to the standard engineering degree, many colleges offer 2- or 4-year degree programs in engineering technology. These programs, which usually include various hands-on laboratory classes that focus on current issues in the application of engineering prin­ ciples, 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 technician and an engineer. Graduate training is essential for engineering faculty positions and many research and development programs, but is not required for the majority of entry-level engineering jobs. Many engineers obtain graduate degrees in engineering or business administration to learn new technology and broaden their education. Many highlevel executives in government and industry began their careers as engineers. About 360 colleges and universities offer bachelor’s degree programs in engineering that are accredited by the Accredita­ tion Board for Engineering and Technology (ABET), Inc. and about 230 colleges offer accredited programs in engineering technology. ABET accreditation is based on an examination of an engineering program’s student achievement, program improve­ ment, faculty, curriculum, facilities, and institutional commitment to certain principles of quality and ethics. Although most institu­ tions offer programs in the major branches of engineering, only a few offer programs in the smaller specialties. Also, programs of the same title may vary in content. For example, some programs 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, students should investigate curriculums and check accreditations carefully before Digitized forselecting FRASERa college. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  137  Admissions requirements for undergraduate engineering schools include a solid background in mathematics (algebra, geometry, trigo­ nometry, 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 com­ plete their studies. In a typical 4-year college curriculum, the first 2 years are spent studying mathematics, basic sciences, introductory engineering, 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 curriculum; students then specialize on the job or in graduate school. Some engineering schools and 2-year colleges have agreements whereby the 2-year college provides the initial engineering edu­ cation, 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. All 50 States and the District of Columbia require licensure for engineers who offer their services directly to the public. Engineers who are licensed are called professional engineers (PE). This licensure generally requires a degree from an ABET-accredited engineering program, 4 years of relevant work experience, and successful completion of a State examination. Recent graduates can start the licensing process by taking 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 acquiring 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 requirements. 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. Engineers should be creative, inquisitive, analytical, and detail oriented. They should be able to work as part of a team and to com­ municate well, both orally and in writing. Communication abilities are important because engineers often interact with specialists in a wide range of fields outside engineering. Beginning engineering graduates usually work under the su­ pervision of experienced engineers and, in large companies, also may receive formal classroom or seminar-type training. As new engineers gain knowledge and experience, they are assigned more difficult projects with greater independence to develop designs, solve problems, and make decisions. Engineers may advance to become technical specialists or to supervise a staff or team of engineers and technicians. Some may eventually become engineering managers or enter other managerial or sales jobs. (See the statements under management and business and financial operations occupations and under sales and related occupations elsewhere in the Handbook.)  Employment  In 2004 engineers held 1.4 million jobs. The distribution of employ­ ment by engineering specialty is as follows:  138  Occupational Outlook Handbook  Specialty Total, all engineers......................... Civil....................................... Mechanical......................... Industrial.................................. Electrical..................... Electronics, except computer... Computer hardware..................... Aerospace............................... Environmental....................... Chemical.......................... Health and safety, except mining safety................................. Materials.............................. Nuclear.............................. Petroleum............................ Biomedical........................ Marine engineers and naval architects Mining and geological, including mining safety.............................. Agricultural.............................. All other engineers...................  Employment 1 440 non  .......  143,000  Percent 100 1£ A 15.6 12.2 10.8 9.9 5.3 5.2 'X 4 2.1 1.8  ......  6,800  1.1 0.7 0.5 0.4 0.2 11.8  About 555,000 engineering jobs were found in manufacturing industries, and another 378,000 wage and salary jobs were in the professional, scientific, and technical services sector, primarily in archi­ tectural, engineering, and related services and in scientific research and development services. Many engineers also worked in the construction and transportation, telecommunications, and utilities industries. Federal, State, and local governments employed about 194,000 engineers in 2004. About 91,000 of these were in the Federal Gov­ ernment, mainly in the U.S. Departments of Defense, Transportation, Agriculture, Interior, and Energy and in the National Aeronautics and Space Administration. Most engineers in State and local government agencies worked in highway and public works departments. In 2004, about 41,000 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 areas with sizable petroleum deposits, such as Texas, Louisiana, Oklahoma, Alaska, and California. Others, such as civil engineering, are widely dispersed, and engineers in these fields often move from place to place to work on different projects. Engineers are employed in evety major industry. The industries employing the most engineers in each specialty are given in table 1, along with the percent of occupational employment in the industry.  There are many well-trained, often English-speaking engineers available around the world willing to work at much lower salaries than are U.S. engineers. The rise of the Internet has made it relatively easy for much of the engineering work previously done by engineers in this country to be done by engineers in other countries, a factor that will tend to hold down employment growth. Even so, the need for onsite engi­ neers to interact with other employees and with clients will remain. Compared with most other workers, a smaller proportion of engi­ neers leave their jobs each year. Nevertheless, many job openings will arise from replacement needs, reflecting the large size of this profession. Numerous job openings will be created by engineers who transfer to management, sales, or other professional occupations; additional openings will arise as engineers retire or leave the labor force for other reasons. Many engineers work on long-term research and development proj­ ects 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 resulted in significant layoffs of engineers in the past. The trend toward contracting for engineering work with engineering services firms, both domestic and foreign, has had the same result. It is important for engineers, as it is for those working in other technical and scientific occupations, to continue their education throughout their Table 1.  Percent concentration of engineering specialty employment in key industries, 2004  Specialty  Industry  Aerospace  Aerospace product and parts manufacturing................................. 59.6 State and local government................... 22.6 Scientific research and development services..................... 18.7 Pharmaceutical and medicine manufacturing................................. 15.6 Chemical manufacturing...................... 27.8 Architectural, engineering, and related services................................ 16.3 Architectural, engineering, and related services............................... 46.0 Computer and electronic product manufacturing................................. 43.2 Computer systems design and related services................................ 15.0 Architectural, engineering, and related services................................ 19,6 Navigational, measuring, electromedical, and control instruments manufacturing................................. 10.8  Agricultural Biomedical  Chemical Civil Computer hardware  Electrical  Job Outlook Overall engineering employment is expected to grow about as fast as the average for all occupations over the 2004-14 period. Engineers have traditionally been concentrated in slow-growing 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 employ­ ment growth. Overall job opportunities in engineering are expected to be favorable because the number of engineering graduates should be in rough balance with the number ofjob openings over this period. However, job outlook varies by specialty, as discussed later in this section. Competitive pressures and advancing technology will force companies to improve and update product designs and to optimize their manufacturing processes. Employers will rely on engineers to further increase productivity as investment in plant and equipment increases to expand output of goods and 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 other fields, however, technological advances are not expected to limit employment opportunities substantially, because Digitized FRASER theyfor will permit the development of new products and processes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Electronics, except computer Environmental Health and safety, except mining safety Industrial Marine engineers and naval architects Materials Mechanical  Percent  Telecommunications............................. 17.5 Federal government............................. 14.4 Architectural, engineering, and related services................................ 28.9 State and local government................. 19.6 State and local government................... 12.4 Machinery manufacturing..................... 7.8 Motor vehicle parts manufacturing..... 7.1 Architectural, engineering, and related services................................ 34.5 Computer and electronic product manufacturing................................. 14.3 Architectural, engineering, and related services................................ 18.1 Machinery manufacturing................... 13.4  Mining and geological, including mining safety Mining.................................................. 49.9 Nuclear Electric power generation, transmission and distribution......... 36.1 PetroleumOil and gas extraction......................... 47.4  Professional and Related Occupations careers because much of their value to their employer depends on their knowledge of the latest technology. Engineers in high-technology areas, such as advanced electronics or information technology, may find that technical knowledge can become outdated rapidly. By keeping current in their field, engineers 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 passed over for promotions or vulnerable to layoffs. The following section discusses job outlook by engineering specialty.  •Aerospace engineers are expected to have slower-than-average growth in employment over the projection period. Although increases in the number and scope of military aerospace projects likely will generate new jobs, increased efficiency will limit the number of new jobs in the design and production of commercial aircraft. Even with slow growth, the employment outlook for aerospace engineers through 2014 appears favorable: the number of degrees granted in aerospace engineering declined for many years because of a perceived lack of opportunities in this field, and, although this trend is reversing, 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 about as fast as the average for all occupations through 2014. The growing interest in worldwide standardization of agricul­ tural equipment should result in increased employment of agricul­ tural engineers. Job opportunities also should result from the need to feed a growing population, develop more efficient agricultural production, and conserve resources. • Biomedical engineers are expected to have employment growth that is much faster than the average for all occupations through 2014. The aging of the population and the focus on health issues will drive demand for better medical devices and equipment designed by biomedi­ cal engineers. Along with the demand for more sophisticated medical equipment and procedures, an increased concern for cost- effectiveness will boost demand for biomedical engineers, particularly in pharma­ ceutical manufacturing and related industries. However, 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 forjobs. Unlike the case for many other engineering specialties, a gradu­ ate degree is recommended or required for many entry-level jobs.  • Chemical engineers are expected to have employment growth about as fast as the average for all occupations though 2014. 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 exist­ ing chemicals. Among manufacturing industries, pharmaceuticals may provide the best opportunities for jobseekers. However, most employ­ ment growth for chemical engineers will be in service industries such as scientific research and development services, particularly in energy and the developing fields of biotechnology and nanotechnology. • Civil engineers are expected to see average employment growth through 2014. Spurred by general population growth and an increased emphasis on infrastructure security, more civil engineers will be needed to design and construct safe and higher capacity transportation, water supply, and pollution control systems, as well as large build­ ings and building complexes. They also will be needed to repair or replace existing roads, bridges, and other public structures. Because construction and related industries—including those providing design services—employ many civil engineers, employment opportunities will vary by geographic area and may decrease during economic slowdowns, when construction often is curtailed. • Computer hardware engineers are expected to have average employment growth through 2014. Although the use of information  technology continues to expand rapidly, the manufacture of computer https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  139  hardware is expected to be adversely affected by intense foreign com­ petition. As computer and semiconductor manufacturing contract out more of their engineering needs, much of the growth in employment should occur in the computer systems design and related services industry. However, use of foreign computer hardware engineering services also will serve to limit job growth. Computer engineers should still have favorable employment opportunities, as the number of new entrants is expected to be in balance with demand.  • Electrical engineers should have favorable employment opportuni­ ties. The number ofjob openings resulting from employment growth and from the need to replace electrical engineers who transfer to other occupa­ tions or leave the labor force is expected to be in rough balance with the supply of graduates. Employment of electrical engineers is expected to increase about as fast as the average for all occupations through 2014. Al­ though international competition and the use of engineering services per­ formed in other countries may limit employment growth, strong demand for electrical devices such as giant electric power generators or wireless phone transmitters should boost growth. Prospects should be particularly good for electrical engineers working in engineering services firms provid­ ing technical expertise to other companies on specific projects. • Electronics engineers, except computer, should have good job opportunities, and employment is expected to increase about as fast as the average for all occupations through 2014. Although rising demand for electronic goods—including advanced communications equipment, defense-related electronic equipment, medical electronics, and consumer products—should continue to increase employment, foreign competition in electronic products development and the use of engineering services performed in other countries will act to limit employment growth. Job growth is expected to be fastest in service-providing industries—particu­ larly consulting firms that provide expertise in electronics engineering. • Environmental engineers should have favorable job opportuni­ ties. Employment of environmental engineers is expected to increase much faster than the average for all occupations through 2014. 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 controlling those that already exist, as well as increasing public health concerns, also will spur demand for environmental engineers. Even though employment of environmental engineers should be less affected by eco­ nomic conditions than that of most other types of engineers, a signifi­ cant economic downturn could reduce the emphasis on environmental protection, reducing environmental engineers’job opportunities. • Health and safety engineers, except mining safety engineers and inspectors, are projected to experience average employment growth through 2014. Because the main function of health and safety engineers is to make products and production processes as safe as possible, their services should be in demand as concern for health and safety within work environments increases. As new technologies for production or processing are developed, health and safety engineers will be needed to ensure their safety.  • Industrial engineers are expected to have employment growth about as fast as the average for all occupations through 2014. As firms seek to reduce costs and increase productivity, they increas­ ingly will turn to industrial engineers to develop more efficient processes to reduce costs, delays, and waste. Because their work is similar to that done in management occupations, many industrial engineers leave the occupation to become managers. Many open­ ings will be created by the need to replace industrial engineers who transfer to other occupations or leave the labor force. • Marine engineers and naval architects likely will experience employment growth that is slower than the average for all occupations. Strong demand for naval vessels and for yachts and other small craft should more than offset the long-term decline in the domestic design and  140  Occupational Outlook Handbook  construction of large oceangoing vessels. There should be good prospects for marine engineers and naval architects because of growth in employ­ ment, the need to replace workers who retire or take other jobs, and the limited number of students pursuing careers in this occupation.  • Materials engineers, including mining safety engineers, are expected to have employment growth about as fast as the average for all occupations through 2014. Although many of the manufacturing industries in which materials engineers are concentrated are expected to experience declining employment, materials engineers still will be needed to develop new materials for electronics, biotechnology, and plastics products. Growth should be particularly strong for materials engineers working on nanomaterials and biomaterials. As manufacturing firms contract for their materials engineering needs, employment growth is expected in professional, scientific, and technical services industries.  Earnings Earnings for engineers vary significantly by specialty, industry, and education. Even so, as a group, engineers earn some of the highest average starting salaries among those holding bachelor’s degrees. The following tabulation shows average starting salary olfers for engineers, according to a 2005 survey by the National Association of Colleges and Employers. Curriculum Bachelor’s Aerospace/aeronautical/ astronautical.......................... .. $50,993 Agricultural............................... .. 46,172 Bioengineering and biomedical....... .. 48,503 Chemical........................... .. 53,813 Civil................................ .. 43,679 Computer....................... S? 464 Electrical/electronics and communications......................... .. 51,888 Environmental/environmental health. .. 47,384 Industrial/manufacturing................. .. 49,567 Materials.......................... .... SO Q82 Mechanical....................... ,. 50,236 Mining and mineral.................. „ 48,643 Nuclear................................ .. 51,182 Petroleum............................ . 61,516  Master’s  Ph.D.  $62,930 53,022 59,667 57,260 48,050 60,354  $72,529  64,416  80,206  _ 56,561  85,000  59,880  68,299  79,591 59,710 69,625  • Mechanical engineers are projected to have an average rate of employment growth through 2014. Although total employment in manufacturing industries—in which employment of mechanical engineers is concentrated—is expected to decline, employment of mechanical engineers in manufacturing should increase as the demand for improved machineiy and machine tools grows and as industrial ma­ chinery and processes become increasingly complex. Also, emerging technologies in biotechnology, materials science, and nanotechnology will create new job opportunities for mechanical engineers. Additional opportunities for mechanical engineers will arise because the skills acquired through earning a degree in mechanical engineering often can be applied in other engineering specialties.  engineers in the various branches of engineering also is significant. For engineers in specialties covered in this statement, earnings distributions by percentile in May 2004 are shown in the following tabulation.  • Mining and geological engineers, including mining safety engineers, are expected to have good employment opportunities, despite  Specialty  a projected decline in employment. Many mining engineers currently employed are approaching retirement age, a factor that should create some job openings over the 2004-14 period. In addition, relatively few schools offer mining engineering programs, and the small number ofyearly graduates is not expected to increase substantially. Favorable job oppor­ tunities also may be available worldwide as mining operations around the world recruit graduates of U.S. mining engineering programs. As a result, some graduates may travel frequently or even live abroad. Employment of mining and geological engineers, including mining safety engineers, is projected to decline through 2014, primarily because most of the industries in which mining engineers are concentrated—such as coal, metal, and copper mining—tire expected to experience declines in employment.  • Nuclear engineers are expected to have good opportunities because the small number of nuclear engineering graduates is likely to be in rough balance with the number of job openings. Employ­ ment of nuclear engineers is expected to grow more slowly than the average for all occupations through 2014. Most openings will result from the need to replace nuclear engineers who transfer to other occupations or leave the labor force. Although no commercial nuclear powerplants have been built in the United States for many years, nuclear engineers will be needed to operate existing plants. In addition, nuclear engineers may be needed to research and develop future nuclear power sources. They also will be needed to work in defense-related areas, to develop nuclear medical technology, and to improve and enforce waste management and safety standards. • Petroleum engineers are expected to have a decline in employ­ ment through 2014 because most of the potential petroleum-producing areas in the United States already have been explored. Even so, fa­ vorable opportunities are expected for petroleum engineers because the number of job openings is likely to exceed the relatively small number of graduates. All job openings should result from the need to replace petroleum engineers who transfer to other occupations or leave the labor force. Petroleum engineers work around the world and, in fact, the best employment opportunities may be in other countries. Many foreign employers seek U.S.-trained petroleum engineers, and many U.S. employers maintain overseas branches.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  _  58,814 58,000  — Variation in median earnings and in the earnings distributions for  Lowest 10%  Aerospace................. $52,820 Agricultural.............. 37,680 Biomedical............... 41,260 Chemical.................. 49,030 Civil......................... 42,610 Computer hardware... 50,490 Electrical.................. 47,310 Electronics, except computer............. 49,120 Environmental.......... 40,620 Health and safety, except mining safety...... 39,930 Industrial.................. 42,450 Marine engineers and naval architects .... 43,790 Materials.................. 44,130 Mechanical.............. 43,900 Mining and geological, including mining safety................... 39,700 Nuclear.................... 61,790 Petroleum................ 48,260  Lowest 25%  Median  Highest 25%  Highest 10%  $64,380 $79,100 $94,900 $113,520 43,270 56,520 77,740 90,410 51,620 67,690 86,400 107,530 60,920 76,770 94,740 115,180 51,430 64,230 79,920 94,660 63,730 81,150 102,100 123,560 57,540 71,610 88,400 108,070 60,280 50,740  75,770 66,480  92,870 83,690  100,050  49,900 52,210  63,730 65,020  79,500 79,830  92,870 93,950  54.530 53,510 53,070  72,040 67,110 66,320  89,900 83,830 82,380  109,190  50,500 73,340 65,350  64,690 84,880 88,500  83,050 100,220  103,790 118,870 140,800  113,180  112,200  101,120  97,850  In the Federal Government, mean annual salaries for engineers ranged from $100,059 in ceramic engineering to $70,086 in agri­ cultural engineering in 2005.  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; computer and information systems managers; computer programmers; computer software engineers; mathematicians; drafters; engineering techni­ cians; sales engineers; science technicians; and physical and life scientists, including agricultural and food scientists, biological scientists, conservation scientists and foresters, atmospheric sci­ entists, chemists and materials scientists, environmental scientists and hydrologists, geoscientists, and physicists and astronomers.  Professional and Related Occupations Sources of Additional Information Information about careers in engineering is available from: > JETS, 1420 King St., Suite 405, Alexandria, VA 22314-2794. Internet: http://www.jets.org Information on ABET-accredited engineering programs is available from: >- Accreditation Board for Engineering and Technology, Inc., 111 Market Place, Suite 1050, Baltimore, MD 21202-4012. Internet: http://www.abet.org Those interested in information on the Professional Engineer licensure should contact: >- National Society of Professional Engineers, 1420 King St., Alexandria, VA 22314-2794. Internet: http://www.nspe.org ► National Council of Examiners for Engineering and Surveying, P.O. Box 1686, Clemson, SC 29633-1686. Internet: http://www.ncees.org Information on general engineering education and career resources is available from: >• American Society for Engineering Education, 1818 N St. NW„ Suite 600, Washington, DC 20036-2479. Internet: http://www.asee.org Information on obtaining positions as engineers 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 interactive voice response telephone system at (703) 724-1850 or TDD (978) 461­ 8404. These numbers are not tollfree, and charges may result. For more detailed information on an engineering specialty, contact societies representing the individual branches of engineering. Each can provide information about careers in the particular branch. Aerospace engineers >• Aerospace Industries Association, 1000 Wilson Blvd., Suite 1700, Arlington, VA 22209-3901. Internet: http://www.aia-aerospace.org ► American Institute of Aeronautics and Astronautics, Inc., 1801 Alexander Bell Dr., Suite 500, Reston, VA 20191-4344. Internet: http://www.aiaa.org  141  Civil engineers  > American Society of Civil Engineers, 1801 Alexander Bell Dr., Reston, VA 20191-4400. Internet: http://www.asce.org  Computer hardware engineers > IEEE Computer Society, 1730 Massachusetts Ave. NW., Washington, DC 20036-1992. Internet: http://www.computer.org  Electrical and electronics engineers >- Institute of Electrical and Electronics Engineers-USA, 1828 L St. NW., Suite 1202, Washington, DC 20036. Internet: http://www.ieeeusa.org  Environmental engineers > 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  Materials engineers > The Minerals, Metals, & Materials Society, 184 Thom Hill Rd., Warrendale, PA 15086-7514. Internet: http://www.tms.org >- ASM International, 9639 Kinsman Rd., Materials Park, OH 44073­ 0002. Internet: http://www.asminternational.org  Mechanical engineers > The American Society of Mechanical Engineers, 3 Park Ave., New York, NY 10016-5990. Internet: http://www.asme.org >- American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Inc., 1791 Tullie Circle NE„ Atlanta, GA 30329. Internet: http://www.ashrae.org >• Society of Automotive Engineers, 400 Commonwealth Dr., Warrendale, PA 15096-0001. Internet: http://www.sae.org  Marine engineers and naval architects >- Society of Naval Architects and Marine Engineers, 601 Pavonia Ave., Jersey City, NJ 07306. Internet: http://www.sname.org  Agricultural engineers  Mining and geological engineers, including mining safety  ► American Society of Agricultural and Biological Engineers, 2950 Niles Rd., St. Joseph, MI 49085-9659. Internet: http://www.asabe.org Biomedical engineers ► Biomedical Engineering Society, 8401 Corporate Dr., Suite 225, Landover, MD 20785-2224. Internet: http://www.bmes.org Chemical engineers >- American Institute of Chemical Engineers, 3 Park Ave., New York, NY 10016-5991. Internet: http://www.aiche.org ► American Chemical Society, Department of Career Services, 115516th St NW., Washington, DC 20036. Internet: http://www.chemLstry.org/portal/Chemi.stry  engineers > The Society for Mining, Metallurgy, and Exploration, Inc., 8307 Shaffer Parkway, Littleton, CO 80127-4102. Internet: http://www.smenet.org Nuclear engineers > American Nuclear Society, 555 North Kensington Ave., LaGrange Park, IL 60526. Internet: http://www.ans.org  Petroleum engineers >- Society of Petroleum Engineers, P.O. Box 833836, Richardson, TX 75083-3836. Internet: http://www.spe.org  Drafters and Engineering Technicians Nature of the Work  Drafters  ______ ________  (0*NET 17-3011.01, 17-3011.02, 17-3012.01, 17-3012.02, 17-3013.00)  Significant Points •  The type and quality of postsecondary drafting pro­ grams vary considerably; prospective students should be careful in selecting a program. • Employment is projected to grow more slowly than average. • Opportunities should be best for individuals with at least 2 years of postsecondary training in drafting and considerable skill and experience using computer-aided design and drafting (CADD) systems. • Demand for drafters varies by specialty and depends on the needs of local industry, particularly architectural  and engineering services and manufacturing. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Drafters prepare technical drawings and plans used by production and construction workers to build everything from manufactured products such as toys, toasters, industrial machinery, and space­ craft to structures such as houses, office buildings, and oil and gas pipelines. Drafters’ drawings provide visual guidelines; show the technical details of the products and structures; and specify dimensions, materials, and procedures. Dralters fill in technical details using drawings, rough sketches, specifications, codes, and calculations previously made by engineers, surveyors, architects, or scientists. For example, drafters use their knowledge of standardized building techniques to draw in the details of a structure. Some use their knowledge of engineering and manufacturing theory and stan­ dards to draw the parts of a machine to determine design elements, such as the numbers and kinds of fasteners needed to assemble the machine. Drafters use technical handbooks, tables, calculators, and computers to complete their work. Traditionally, drafters sat at drawing boards and used pencils, pens, compasses, protractors, triangles, and other drafting devices  142  Occupational Outlook Handbook  to prepare a drawing manually. Most drafters now use CADD systems to prepare drawings. Consequently, some drafters may be referred to as CADD operators. CADD systems employ computers to create and store drawings electronically that can then be viewed, printed, or pro­ grammed directly into automated manufacturing systems. These sys­ tems also permit drafters to quickly prepare variations of a design. Al­ though drafters use CADD extensively, it is only a tool. Persons who produce technical drawings with CADD still function as drafters and need the knowledge of traditional drafters, in addition to CADD skills. Despite the nearly universal use of CADD systems, manual drafting and sketching still are used in certain applications. Drafting work has many specialties, and titles may denote a particular discipline of design or drafting. Aeronautical drafters prepare engineering drawings detailing plans and specifications used in the manufacture of aircraft, mis­ siles, and related parts. Architectural drafters draw architectural and structural features of buildings and other structures. These workers may specialize in a type of structure, such as residential or commercial, or in a kind of material used, such as reinforced concrete, masonry, steel, or timber. Civil drafters prepare drawings and topographical and relief maps used in major construction or civil engineering projects, such as highways, bridges, pipelines, flood control projects, and water and sewage systems. Electrical drafters prepare wiring and layout diagrams used by workers who erect, install, and repair electrical equipment and wir­ ing in communication centers, powerplants, electrical distribution systems, and buildings. Electronics drafters draw wiring diagrams, circuit board assembly 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, in­ dicating dimensions, fastening methods, and other requirements. Process piping or pipeline drafters prepare drawings used in the layout, construction, and operation of oil and gas fields, refineries, chemical plants, and process piping systems.  ip  Drafters produce the detailed technical drawings necessary for construction or manufacturing.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Working Conditions Most drafters work a standard 40-hour week; only a small number work part time. Drafters usually work in comfortable offices furnished to accommodate their tasks. They may sit at adjustable drawing boards or drafting tables when doing manual drawings, although most drafters work at computer terminals much of the time. Because they spend long periods in front of computer terminals doing detailed work, drafters may be susceptible to eyestrain, back discomfort, and hand and wrist problems.  Training, Other Qualifications, and Advancement Employers prefer applicants who have completed postsecond­ ary school training in drafting, training that is offered by techni­ cal institutes, community colleges, and some 4-year colleges and universities. Employers are most interested in applicants with well-de­ veloped drafting and mechanical drawing skills; knowledge of drafting standards, mathematics, science, and engineering technology; and a solid background in CADD techniques. In addition, communication and problem-solving skills are important. Training and coursework differ somewhat within the drafting specialties. The initial training for each specialty is similar. All incor­ porate math and communication skills, for example, but coursework relating to the specialty varies. In an electronics drafting program, for example, students learn how to depict electronic components and circuits in drawings. Many types of publicly and privately operated schools provide some form of training in drafting. Because the kind and quality of programs vary considerably, prospective students should be careful in selecting a program. They should contact prospective employers regarding their preferences and ask schools to provide information about the kinds of jobs that are obtained by the school’s graduates, the types and conditions of the instructional facilities and equipment, and the faculty’s qualifications. Technical institutes offer intensive technical training, but less general education than do junior and community colleges. Cer­ tificates or diplomas based on the completion of a certain number of course hours may be awarded. Many technical institutes offer 2-year associate degree programs, which are similar to, or part of, the programs offered by community colleges or State university systems. Their programs vary considerably in both length and type of courses offered. Some area vocational-technical schools are postsecondary public institutions that serve local students and emphasize the type of training preferred by local employers. Many offer introductory drafting instruction. Most require a high school diploma or its equivalent for admission. Other technical institutes are run by private, often for-profit, organizations sometimes called proprietary schools. Community colleges offer curricula similar to those in technical institutes but include more courses on theory and liberal arts. Often, there is little or no difference between technical institute and com­ munity college programs. However, courses taken at community colleges are more likely than those given at technical institutes to be accepted for credit at 4-year colleges. After completing a 2-year associate degree program, graduates may obtain jobs as drafters or continue their education in a related field at 4-year colleges. Most 4-year colleges usually do not offer training in drafting, but college courses in engineering, architecture, and mathematics are useful for obtaining a job as a drafter. Technical training obtained in the Armed Forces also can be applied in civilian drafting jobs. Some additional training may be necessary, depending on the technical area or military specialty. The American Design Drafting Association (ADDA) has es­ tablished a certification program for drafters. Although employers usually do not require drafters to be certified, certification dem­  Professional and Related Occupations onstrates an understanding of nationally recognized practices and standards of knowledge. Individuals who wish to become certified must pass the Drafter Certification Test, which is administered pe­ riodically at ADDA-authorized sites. Applicants are tested on their knowledge and understanding of basic drafting concepts, such as geometric construction, working drawings, and architectural terms and standards. Individuals planning careers in drafting should take cours­ es in mathematics, science, computer technology, design, and computer graphics, as well as any high school drafting courses available. Mechanical ability and visual aptitude are important. Prospective drafters should be able to draw well and perform detailed work accurately and neatly. Artistic ability is helpful in some specialized fields, as is knowledge of manufactur­ ing and construction methods. In addition, prospective drafters should have good interpersonal skills because they work closely with engineers, surveyors, architects, and other professionals and, sometimes, with customers. Entry-level or junior drafters usually do routine work under close supervision. After gaining experience, they may become intermedi­ ate drafters and progress to more difficult work with less supervision. At the intermediate level, they may need to exercise more judgment and perform calculations when preparing and modifying drawings. Drafters may eventually advance to senior drafter, designer, or supervisor. Many employers pay for continuing education, and, with appropriate college degrees, drafters may go on to become engineering technicians, engineers, or architects.  Employment Drafters held about 254,000 jobs in 2004. Architectural and civil drafters held 43 percent of all jobs for drafters, mechanical drafters held about 32 percent of all jobs, and about 15percent of jobs were held by electrical and electronics drafters. About 44 percent of all jobs for drafters were in architectural, engineering, and related services firms that design construction projects or do other engineering work on a contract basis for other industries. Another 27 percent of jobs were in manufacturing in­ dustries such as machinery manufacturing, including metalworking and other general machinery; fabricated metal products manufac­ turing, including architectural and structural metals; computer and electronic products manufacturing, including navigational, measuring, electromedical, and control instruments; and transporta­ tion equipment manufacturing, including aerospace products and parts manufacturing, as well as ship and boat building. Most of the rest were employed in construction, government, wholesale trade, utilities, and employment services. Approximately 6 percent were self-employed in 2004.  Job Outlook Employment of drafters is expected to grow more slowly than the average for all occupations through 2014. Industrial growth and increasingly complex design problems associated with new products and manufacturing processes will increase the demand for drafting services. Further, drafters are beginning to break out of the traditional drafting role and do work traditionally performed by engineers and architects, thus also increasing de­ mand for drafters. However, drafters tend to be concentrated in slowly growing or declining manufacturing industries. CADD systems that are more powerful and easier to use also should limit demand for lesser skilled drafters as simple tasks are increasingly done quickly and easily by other drafters or other technical professionals, resulting in slower-than-average over­ all employment growth. Because some drafting work can be done in other locations using the Internet to send CADD files  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  143  internationally, the offshoring of some drafting jobs also should dampen growth. Most job openings are expected to arise from the need to replace drafters who transfer to other occupations, leave the labor force, or retire. Opportunities should be best for individuals with at least 2 years of postsecondary training in a drafting program that provides strong technical skills, as well as considerable experi­ ence with CADD systems. CADD has increased the complex­ ity of drafting applications while enhancing the productivity of drafters. It also has enhanced the nature of drafting by creating more possibilities for design and drafting. As technology con­ tinues to advance, employers will look for drafters with a strong background in fundamental drafting principles, a high level of technical sophistication, and the ability to apply their knowledge to a broader range of responsibilities. While growth is expected to be greatest for mechanical, archi­ tectural, and civil drafters, demand for particular drafting special­ ties varies throughout the country because employment usually is contingent on the needs of local industry. Employment of drafters remains highly concentrated in industries that are sensitive to cyclical changes in the economy, primarily manufacturing industries. During recessions, drafters may be laid off. However, a growing number of drafters should continue to find employment on a temporary or contract basis as more companies turn to the employment services industry to meet their changing needs.  Earnings Drafters’ earnings vary by specialty, location, and level of responsibility. Median annual earnings of architectural and civil drafters were $39,190 in May 2004. The middle 50 percent earned between $31,460 and $47,800. The lowest 10 percent earned less than $25,670, and the highest 10 percent earned more than $57,670. Median annual earnings for architectural and civil drafters in architectural, engineering, and related services were $38,760. Median annual earnings of mechanical drafters were $43,000 in May 2004. The middle 50 percent earned between $34,090 and $54,240. The lowest 10 percent earned less than $27,490, and the highest 10 percent earned more than $67,650. Median annual earnings for mechanical drafters in architectural, engineering, and related services were $44,560. Median annual earnings of electrical and electronics drafters were $43,180 in May 2004. The middle 50 percent earned between $33,920 and $56,110. The lowest 10 percent earned less than $27,600, and the highest 10 percent earned more than $72,050. In architectural, engineering, and related services, median annual earnings for electrical and electronics drafters were $42,200.  Related Occupations Other workers who prepare or analyze detailed drawings and make precise calculations and measurements include architects, except landscape and naval; landscape architects; commercial and industrial designers; engineers; engineering technicians; science technicians; and surveyors, cartographers, photogrammetrists, and surveying technicians.  Sources of Additional Information Information on schools offering programs in drafting and related fields is available from; >- Accrediting Commission of Career Schools and Colleges of Tech­ nology, 2101 Wilson Blvd., Suite 302, Arlington, VA 22201. Internet: http://www.accsct.org Information about certification is available from: >- American Design Drafting Association, 105 E. Main St., Newbem, TN 38059. Internet: http://www.adda.org  144  Occupational Outlook Handbook  Engineering Technicians (0*NET 17-3021.00, 17-3022.00, 17-3023.01, 17-3023.02, 17-3023.03, 17-3024.00, 17-3025.00, 17-3026.00, 17-3027.00, 17-3029.99)  Significant Points •  Because the type and quality of training programs vary considerably, prospective students should carefully investigate training programs before enrolling.  •  Electrical and electronic engineering technicians make up 34 percent of all engineering technicians.  •  Employment of engineering technicians often is influenced by the same local and national economic conditions that affect engineers; as a result, job outlook varies with industry and specialization.  •  Opportunities will be best for individuals with an as­ sociate degree or extensive job training in engineering technology.  Nature of the Work Engineering technicians use the principles and theories of sci­ ence, engineering, and mathematics to solve technical problems in research and development, manufacturing, sales, construc­ tion, inspection, and maintenance. Their work is more lim­ ited in scope and application-oriented than that of scientists and engineers. Many engineering technicians assist engineers and scientists, especially in research and development. Others work in quality control, inspecting products and processes, conducting tests, or collecting data. In manufacturing, they may assist in prod­ uct design, development, or production. Although many workers who repair or maintain various types of electrical, electronic, or mechanical equipment are called technicians, these workers are covered in the Handbook section on installation, maintenance, and repair occupations. Engineering technicians who work in research and devel­ opment build or set up equipment; prepare and conduct ex­ periments; collect data; calculate or record results; and help engineers or scientists in other ways, such as making prototype versions of newly designed equipment. They also assist in design work, often using computer-aided design and drafting (CADD) equipment. Most engineering technicians specialize, learning skills and working in the same disciplines as engineers. Occupational titles, therefore, tend to reflect engineering specialties. Some branches of engineering technology for which there are accred­ ited programs of study are not covered in detail in the Handbook, such as chemical engineering technology (the development of new chemical products and processes) and bioengineering technology (the development and implementation of biomedi­ cal equipment). Aerospace engineering and operations technicians con­ struct, test, and maintain aircraft and space vehicles. They may calibrate test equipment and determine causes of equipment malfunctions. Using computer and communications systems, aerospace engineering and operations technicians often record and interpret test data. Civil engineering technicians help civil engineers plan and build highways, buildings, bridges, dams, wastewater treatment systems, and other structures, as well as do related research. Some estimate construction costs and specify materials to be used, and  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  some may even prepare drawings or perform land-surveying duties. Others may set up and monitor instruments used to study traffic conditions. (Cost estimators; drafters; and surveyors, cartog­ raphers, photogrammetrists, and surveying technicians are covered elsewhere in the Handbook.) Electrical and electronics engineering technicians help design, develop, test, and manufacture electrical and electronic equipment such as communication equipment; radar, industrial, and medical monitoring or control devices; navigational equip­ ment; and computers. They may work in product evaluation and testing, using measuring and diagnostic devices to adjust, test, and repair equipment. (Workers whose jobs are limited to repairing electrical and electronic equipment, who often are referred to as electronics technicians, are included with electrical and electronics installers and repairers elsewhere in the Handbook.) Electromechanical engineering technicians combine funda­ mental principles of mechanical engineering technology with knowledge of electrical and electronic circuits to design, develop, test, and manufacture electrical and computer-controlled mechani­ cal systems. Their work often overlaps that of both electrical and electronics engineering technicians and mechanical engineering technicians. Environmental engineering technicians work closely with en­ vironmental engineers and scientists in developing methods and devices used in the prevention, control, or correction of environ­ mental hazards. They inspect and maintain equipment related to air pollution and recycling. Some inspect water and wastewater treatment systems to ensure that pollution control requirements are met. Industrial engineering technicians study the efficient use of per­ sonnel, materials, and machines in factories, stores, repair shops, and offices. They prepare layouts of machinery and equipment, plan the flow of work, make statistical studies, and analyze production costs. Mechanical engineering technicians help engineers design, develop, test, and manufacture industrial machinery, consumer  L  . ■ : "H;  jif&ess  •  wmsmaPevacsSK V-T-  Engineering technicians assist engineering staff in aspects ofdesign, development, and testing.  Professional and Related Occupations products, and other equipment. They may assist in product tests—for example, by setting up instrumentation for auto crash tests. They may make sketches and rough layouts, record and analyze data, make calculations and estimates, and report on their findings. When planning production, mechanical engineer­ ing technicians prepare layouts and drawings of the assembly process and of parts to be manufactured. They estimate labor costs, equipment life, and plant space. Some test and inspect machines and equipment or work with engineers to eliminate production problems.  Working Conditions Most engineering technicians work at least 40 hours a week in laboratories, offices, manufacturing or industrial plants, or on con­ struction sites. Some may be exposed to hazards from equipment, chemicals, or toxic materials.  Training, Other Qualifications, and Advancement Although it may be possible to qualify for certain engineering technician jobs without formal training, most employers prefer to hire someone with at least a 2-year associate degree in engi­ neering technology. Training is available at technical institutes, community colleges, extension divisions of colleges and universi­ ties, public and private vocational-technical schools, and in the Armed Forces. Persons with college courses in science, engineer­ ing, and mathematics may qualify for some positions but may need additional specialized training and experience. Although employers usually do not require engineering technicians to be certified, such certification may provide jobseekers a competi­ tive advantage. Prospective engineering technicians should take as many high school science and math courses as possible to prepare for postsecondary programs in engineering technology. Most 2-year associate degree programs accredited by the Technology Accredi­ tation Commission of the Accreditation Board for Engineering and Technology (ABET) require, at a minimum, college algebra and trigonometry and one or two basic science courses. Depending on the specialty, more math or science may be required. About 230 colleges offer ABET-accredited programs in engineering technology. The type of technical courses required also depends on the specialty. For example, prospective mechanical engineering tech­ nicians may take courses in fluid mechanics, thermodynamics, and mechanical design; electrical engineering technicians may need classes in electrical circuits, microprocessors, and digital electronics; and those preparing to work in environmental engineering technol­ ogy need courses in environmental regulations and safe handling of hazardous materials. Because many engineering technicians assist in design work, creativity is desirable. Because these workers often are part of a team of engineers and other technicians, good com­ munication skills and the ability to work well with others also are important. Engineering technicians usually begin by perlorming routine duties under the close supervision of an experienced technician, technologist, engineer, or scientist. As they gain experience, they are given more difficult assignments with only general supervision. Some engineering technicians eventually become supervisors. Many publicly and privately operated schools provide technical training, but the type and quality of training vary considerably. Therefore, prospective students should be care­ ful in selecting a program. They should ascertain prospective  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  145  employers’ preferences and ask schools to provide information about the kinds of jobs obtained by program graduates, about instructional facilities and equipment, and about faculty qualifications. Graduates of ABET-accredited programs usu­ ally are recognized as having achieved an acceptable level of competence in the mathematics, science, and technical courses required for this occupation. Technical institutes offer intensive technical training through application and practice, but they provide less theory and general education than do community colleges. Many technical institutes offer 2-year associate degree programs and are similar to or part of a community college or State university system. Other technical institutes are run by private, often for-profit organizations, some­ times called proprietary schools. Their programs vary considerably in length and types of courses offered, although some are 2-year associate degree programs. Community colleges offer curriculums that are similar to those in technical institutes but include more theory and liberal arts. There may be little or no difference between programs at technical institutes and community colleges, as both offer as­ sociate degrees. After completing the 2-year program, some graduates get jobs as engineering technicians, whereas others continue their education at 4-year colleges. Flowever, there is a difference between an associate degree in pre-engineering and one in engineering technology. Students who enroll in a 2-year pre-engineering program may find it very difficult to find work as an engineering technician if they decide not to enter a 4-year engineering program, because pre-engineering programs usu­ ally focus less on hands-on applications and more on academic preparatory work. Conversely, graduates of 2-year engineering technology programs may not receive credit for some of the courses they have taken if they choose to transfer to a 4-year en­ gineering program. Colleges with these 4-year programs usually do not offer engineering technician training, but college courses in science, engineering, and mathematics are useful for obtaining a job as an engineering technician. Many 4-year colleges offer bachelor’s degrees in engineering technology, but graduates of these programs often are hired to work as technologists or applied engineers, not technicians. Area vocational-technical schools, another source of tech­ nical training, include postsecondary public institutions that serve local students and emphasize training needed by local employers. Most require a high school diploma or its equivalent for admission. Other training in technical areas may be obtained in the Armed Forces. Many military technical training programs are highly regarded by employers. However, skills acquired in military programs are often narrowly focused and may be of limited applicability in civilian industry, which often requires broader training. Therefore, some additional train­ ing may be needed, depending on the acquired skills and the kind of job. The National Institute for Certification in Engineering Tech­ nologies has established a voluntary certification program for engineering technicians. Certification is available at various levels, each level combining a written examination in 1 of about 30 specialties with a certain amount of job-related experience, a supervisory evaluation, and a recommendation.  Employment Engineering technicians held 532,000 jobs in 2004. About a third were electrical and electronics engineering technicians, as indicated by the following tabulation.  146  Occupational Outlook Handbook  Electrical and electronic engineering technicians......................... 182,000 Civil engineering technicians........................................................ 94,000 Industrial engineering technicians................................................ 69,000 Mechanical engineering technicians............................................. 48,000 Environmental engineering technicians........................................ 20,000 19,000 Electro-mechanical technicians.............. Aerospace engineering and operations technicians...................... 9,500 Engineering technicians, except drafters, all other...................... 91,000 About 36 percent of all engineering technicians worked in manufacturing, mainly in the computer and electronic equip­ ment, transportation equipment, and machinery manufacturing industries. Another 22 percent worked in professional, scien­ tific, and technical service industries, mostly in engineering or business services companies that do engineering work on contract for government, manufacturing firms, or other orga­ nizations. In 2004, the Federal Government employed 37,000 engineering technicians. State governments employed 39,000, and local govern­ ments employed 27,000.  Job Outlook Opportunities will be best for individuals with an associate degree or extensive job training in engineering technology. As technol­ ogy becomes more sophisticated, employers will continue to look for technicians who are skilled in new technology and require a minimum of additional job training. An increase in the number of jobs related to public health and safety should create job opportuni­ ties for engineering technicians with the appropriate training and certification. Overall employment of engineering technicians is ex­ pected to increase about as fast as the average for all oc­ cupations through 2014. Competitive pressures will force companies to improve and update manufacturing facilities and product designs, resulting in more jobs for engineering technicians. In addition to growth, many job openings will stem from the need to replace technicians who retire or leave the labor force. Growth of engineering technician employment in some de­ sign functions may be dampened by increasing globalization of the development process. To reduce costs and speed project completion, some companies may relocate part of their develop­ ment operations to facilities overseas, impacting both engineers and the engineering technicians that support them—particularly in electronics and computer-related areas. However, much of the work of engineering technicians requires on-site presence, so demand for engineering technicians within the US should continue to grow. Because engineering technicians work closely with engi­ neers, employment of engineering technicians is often influ­ enced by the same local and national economic conditions that affect engineers. As a result, the employment outlook varies with industry and specialization. Growth in the largest spe­ cialty—electrical and electronics engineering technicians—is expected to be about as fast as the average, while employment of environmental engineering technicians is expected to grow faster than average to meet the environmental demands of an ever-growing population.  Earnings Median annual earnings in May 2004 of engineering technicians by specialty are shown in the following tabulation.  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Aerospace engineering and operations technicians...................... $52,500 Electrical and electronic engineering technicians........................ 46,310 Industrial engineering technicians.................................................. 43,590 Mechanical engineering technicians............................................... 43,400 Electro-mechanical technicians...................................................... 41,440 Environmental engineering technicians.......................................... 38,550 Civil engineering technicians.......................................................... 38,480 Median annual earnings of electrical and electronics engineer­ ing technicians were $46,310 in May 2004. The middle 50 percent earned between $36,290 and $55,750. The lowest 10 percent earned less than $29,000, and the highest 10 percent earned more than $67,900. Median annual earnings in the industries employing the largest numbers of electrical and electronics engineering technicians in May 2004 are shown below. Federal Government....................................................................... $64,160 Wired telecommunications carriers.............................................. 51,250 Architectural, engineering, and related services............................. 44,800 Navigational, measuring, electromedical, and control instruments manufacturing............................................ 42,780 Semiconductor and other electronic component manufacturing............................................................................. 41,300 Median annual earnings of civil engineering technicians were $38,480 in May 2004. The middle 50 percent earned between $29,880 and $48,590. The lowest 10 percent earned less than $24,180, and the highest 10 percent earned more than $57,550. Me­ dian annual earnings in the industries employing the largest numbers of civil engineering technicians in May 2004 are shown below. Local government.......................................................................... $43,700 Architectural, engineering, and related services........................... 37,470 State government.......................................................................... 35,970 In May 2004, the average annual salary for aerospace engineering and operations technicians in the aerospace products and parts manu­ facturing industry was $52,250, and the average annual salary for en­ vironmental engineering technicians in the architectural, engineering, and related services industry was $36,530. The average annual salary for industrial engineering technicians in the semiconductor and other electronic component manufacturing industry was $40,020. In the architectural, engineering, and related services industry, the average annual salary for mechanical engineering technicians was $43,190.  Related Occupations Engineering technicians apply scientific and engineering principles usually acquired in postsecondary programs below the baccalaureate level. Similar occupations include science technicians; drafters; survey­ ors, cartographers, photogrammetrists, and surveying technicians; and broadcast and sound engineering technicians and radio operators.  Sources of Additional Information For information about careers in engineering technology, contact: >- IETS (lunior Engineering Technical Society)-Guidance, 1420 King St., Suite 405, Alexandria, VA 22314-2794. Internet: http://www.jets.org Information on ABET-accredited engineering technology programs is available from: > Accreditation Board for Engineering and Technology, Inc., 111 Market Pic., Suite 1050, Baltimore, MD 21202-4012. Internet: http://www.abet.org Information on certification of engineering technicians, as well as job and career information, is available from: >■ National Institute for Certification in Engineering Technologies, 1420 King St., Alexandria, VA 22314-2794. Internet: http://www.nicet.org  Professional and Related Occupations  147  Life Scientists Agricultural and Food Scientists (0*NET 19-1011.00, 19-1012.00, 19-1013.01, 19-1013.02)  Significant Points • •  •  About 1 in 4 agricultural and food scientists work for Federal, State, or local governments. A bachelor’s degree in agricultural science is sufficient for some jobs in applied research; a master’s or Ph.D. degree is required for basic research or teaching. Over 1 in 3 agricultural and food scientists are self-em­ ployed.  Nature of the Work The work of agricultural and food scientists plays an important part in maintaining the Nation’s food supply by ensuring agricultural productivity and the safety of the food supply. Agricultural scien­ tists study farm crops and animals, and develop ways of improving their quantity and quality. They look for ways to improve crop yield with less labor, control pests and weeds more safely and effectively, and conserve soil and water. They research methods of converting raw agricultural commodities into attractive and healthy food products for consumers. Agricultural science is closely related to biological science, and agricultural scientists use the principles of biology, chemistry, physics, mathematics, and other sciences to solve problems in agriculture. They often work with biological scientists on basic biological research and on applying to agriculture the advances in knowledge brought about by biotechnology. In the past two decades, rapid advances in basic biological knowledge related to genetics spurred growth in the field of biotechnology. Some agricultural and food scientists use this technology to manipulate the genetic material of plants and crops, attempting to make organisms more productive or resistant to disease. These advances in biotechnology have opened up research opportunities in many areas of agricultural and food science, including commercial applications in agriculture, environmental remediation, and the food industry. Another emerging technology expected to affect agriculture is nanotechnology—a future mo­ lecular manufacturing technology which promises to revolutionize methods of manufacturing and distribution in many industries. Many agricultural scientists work in basic or applied research and development. Others manage or administer research and develop­ ment programs, or manage marketing or production operations in companies that produce food products or agricultural chemicals, supplies, and machinery. Some agricultural scientists are consultants to business firms, private clients, or government. Depending on the agricultural or food scientist’s area of special­ ization, the nature of the work performed varies. Food science. Food scientists and technologists usually work in the food processing industry, universities, or the Federal Gov­ ernment, and help to meet consumer demand for food products that are healthful, safe, palatable, and convenient. To do this, they use their knowledge of chemistry, physics, engineering, microbiology, biotechnology, and other sciences to develop new  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  or better ways of preserving, processing, packaging, storing, and delivering foods. Some food scientists engage in basic research, discovering new food sources; analyzing food content to determine levels of vitamins, fat, sugar, or protein; or searching for substi­ tutes for harmful or undesirable additives, such as nitrites. They also develop ways to process, preserve, package, or store food ac­ cording to industry and government regulations. Traditional food processing research into functions involving baking, blanching, canning, drying, evaporation, and pasteurization will continue to be conducted and will find new applications. Other food scientists enforce government regulations, inspecting food processing areas and ensuring that sanitation, safety, quality, and waste manage­ ment standards are met. Food technologists generally work in product development, applying the findings from food science research to the selection, preservation, processing, packaging, distribution, and use of safe, nutritious, and wholesome food. Plant science. Agronomy, crop science, entomology, and plant breeding are included in plant science. Scientists in these disciplines study plants and their growth in soils, helping produc­ ers of food, feed, and fiber crops to continue to feed a growing population while conserving natural resources and maintaining the environment. Agronomists and crop scientists not only help increase productivity, but also study ways to improve the nutritional value of crops and the quality of seed, often through biotechnology. Some crop scientists study the breeding, physiology, and management of crops and use genetic engineering to develop crops resistant to pests and drought. Entomologists conduct research to develop new technologies to control or eliminate pests in infested areas and to prevent the spread of harmful pests to new areas, as well as technologies that are compatible with the environment. They also conduct research or engage in oversight activities aimed at halting the spread of insect-bome disease. Soil science. Soil scientists study the chemical, physical, biological, and mineralogical composition of soils as they relate to plant or crop growth. They also study the responses of various soil types to fertilizers, tillage practices, and crop rotation. Many soil scientists who work for the Federal Government conduct soil surveys, classifying and mapping soils. They provide information and recommendations to farmers and other landowners regarding the best use of land, plant growth, and methods to avoid or correct problems such as erosion. They may also consult with engineers and other technical personnel working on construction projects about the effects of, and solutions to, soil problems. Because soil science is closely related to environmental science, persons trained in soil science also apply their knowledge to ensure environmental quality and effective land use. Animal science. Animal scientists work to develop better, more efficient ways of producing and processing meat, poultry, eggs, and milk. Dairy scientists, poultry scientists, animal breeders, and other scientists in related fields study the genetics, nutrition, reproduction, growth, and development of domestic farm animals. Some animal scientists inspect and grade livestock food products, purchase live­ stock, or work in technical sales or marketing. As extension agents or consultants, animal scientists advise agricultural producers on how to upgrade animal housing facilities properly, lower mortality rates, handle waste matter, or increase production of animal products, such as milk or eggs.  148  Occupational Outlook Handbook 'V  J  ItlCA  A bachelor’s degree in agricultural science is sufficientfor somejobs as an agricultural or food scientist in applied research; a master’s or Ph.D. degree is required for basic research or teaching. Working Conditions Agricultural scientists involved in management or basic research tend to work regular hours in offices and laboratories. The work environment for those engaged in applied research or product development varies, depending on the discipline of agricultural science and on the type of employer. For example, food scientists in private industry may work in test kitchens while investigating new processing techniques. Animal scientists working for Federal, State, or university research stations may spend part of their time at dairies, farrowing houses, feedlots, or farm animal facilities, or outdoors conducting research associated with livestock. Soil and crop scientists also spend time outdoors conducting research on farms and agricultural research stations. Entomologists work in laboratories, insectories, or agricultural research stations, and also may spend time outdoors studying or collecting insects in their natural habitat.  Training, Other Qualifications, and Advancement Training requirements for agricultural scientists depend on their specialty and on the type of work they perform. A bachelor’s degree in agricultural science is sufficient for some jobs in ap­ plied research or for assisting in basic research, but a master’s or doctoral degree is required for basic research. A Ph.D. in agricultural science usually is needed for college teaching and for advancement to administrative research positions. Degrees   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  in related sciences such as biology, chemistry, or physics or in related engineering specialties also may qualify persons for some agricultural science jobs. All States have a land-grant college that offers agricultural science degrees. Many other colleges and universities also of­ fer agricultural science degrees or some agricultural science courses. However, not every school offers all specialties. A typical undergraduate agricultural science curriculum includes communications, mathematics, economics, business, and physical and life sciences courses, in addition to a wide variety of technical agricultural science courses. For prospective animal scientists, these technical agricultural science courses might include animal breeding, reproductive physiology, nutrition, and meats and muscle biology. Graduate students typically specialize in a subfield of agricultural science, such as animal breeding and genetics, crop science, or horticulture science, depending on their interest and the kind of work they wish to do. For example, those interested in doing genetic and biotechnological research in the food industry need to develop a strong background in life and physical sciences, such as cell and molecular biology, microbiology, and inorganic and organic chemistry. However, students normally need not specialize at the undergraduate level. In fact, undergraduates who are broadly trained have greater flexibility when changing jobs than if they had narrowly defined their interests. Students preparing as food scientists take courses such as food chemistry, food analysis, food microbiology, food engineering, and food processing operations. Those preparing as crop or soil scientists take courses in plant pathology, soil chemistry, entomol­ ogy, plant physiology, and biochemistry, among others. Advanced degree programs include classroom and fieldwork, labora­ tory research, and a thesis or dissertation based on independent research. Agricultural and food scientists should be able to work indepen­ dently or as part of a team and be able to communicate clearly and concisely, both orally and in writing. Most of these scientists also need an understanding of basic business principles, and the ability to apply basic statistical techniques. Employers increasingly prefer job applicants who are able to apply computer skills to determine solutions to problems, to collect and analyze data, and to control various processes. The American Society of Agronomy offers certification programs in crop science, agronomy, crop advising, soil science, plant pathol­ ogy, and weed science. To become certified, applicants must pass designated examinations and have at least 2 years of experience with at least a bachelor’s degree in agriculture or 4 years of experi­ ence with no degree. To become a certified crop advisor, however, candidates do not need a degree. Agricultural scientists who have advanced degrees usually be­ gin in research or teaching. With experience, they may advance to jobs such as supervisors of research programs or managers of other agriculture-related activities.  Employment Agricultural and food scientists held about 30,000 jobs in 2004. In addition, several thousand persons held agricultural science faculty positions in colleges and universities. (See the statement on post­ secondary teachers elsewhere in the Handbook.) About 1 in 4 salaried agricultural and food scientists work for Federal, State, or local governments. One out of 7 worked for State governments at State agricultural colleges or agricul­ tural research stations. Another one out of 10 worked for the Federal Government in 2004, mostly in the U.S. Department of Agriculture. Some worked for agricultural service companies; others worked for commercial research and development labo­  Professional and Related Occupations ratories, seed companies, pharmaceutical companies, wholesale distributors, and food products companies. About 10,000 agricultural scientists were self-employed in 2004, mainly as consultants.  Job Outlook Employment of agricultural and food scientists is expected to grow about as fast as the average for all occupations through 2014. Past agricultural research has resulted in the develop­ ment of higher yielding crops, crops with better resistance to pests and plant pathogens, and chemically based fertilizers and pesticides. Research is still necessary, particularly as insects and diseases continue to adapt to pesticides and as soil fertility and water quality continue to need improvement, resulting in job op­ portunities in biotechnology. Agricultural scientists are using new avenues of research in biotechnology to develop plants and food crops that require less fertilizer, fewer pesticides and herbicides, and even less water for growth. Emerging biotechnologies and nanotechnologies will play an increasingly larger role in creating more plentiful global food supplies. Biotechnological research will continue to offer possibilities for the development of new food products. This research will allow agricultural and food scientists to develop techniques to detect and control food pathogens, and should lead to better understanding of other infectious agents in foods. Agricultural scientists will be needed to balance increased agricultural output with protection and preservation of soil, water, and ecosystems. They will increasingly encourage the practice of “sustainable agriculture” by developing and implementing plans to manage pests, crops, soil fertility and erosion, and animal waste in ways that reduce the use of harmful chemicals and do little damage to farms and the natural environment. Further studies at scientific research and development services firms will result in more job opportunities for food scientists and technologists. This research will be stimulated by a heightened public focus on diet, health, changes in food safety, and biosecurity—preventing the introduction of infec­ tious agents, such as foot and mouth disease into a herd of animals. Increasing demand for these workers also will stem from issues such as a growing world population, availability and cost of usable water, shrinking natural resources including the loss of arable land, and deforestation, environmental pol­ lution, and climate change. Graduates with a bachelor’s degree should find work in a variety of fields, mostly in the private sector, although many of the positions may be related to agricultural or food science rather than as an agricultural or food scientist. A bachelor’s degree in agricultural science is useful for managerial jobs in businesses that deal with ranchers and farmers, such as feed, fertilizer, seed, and farm equipment manufacturers; retailers or wholesalers; and farm credit institutions. In some cases, persons with a 4-year degree can provide consulting services or work in sales and marketing—promoting high-demand products such as organic foods. Bachelor’s degree holders also can work in some applied research and product development positions under the guidance of a Ph.D. scientist, but usually only in certain subfields, such as food science and technology. The Federal Government hires bachelor’s degree holders to work as soil scientists. Four-year degrees also may help persons enter occupations such as farmer, or farm or ranch manager; cooperative extension service agent; agricultural products inspector; or purchasing or sales agent for agricultural commodity or farm supply companies. Opportunities may be better for those with a master’s degree, particularly  for graduates seeking applied research positions https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  149  in a laboratory. Master’s degree candidates also can seek to become a certified crop advisor, helping farmers better manage their crops. Those with a Ph.D. in agricultural and food sci­ ence will experience the best opportunities, especially in basic research and teaching positions at colleges and universities as retirements of faculty are expected to accelerate during the projection period. Fewer opportunities for agricultural and food scientists are expected in the Federal government, mostly because of budgetary cutbacks at the U.S. Department of Agriculture. Employment of agricultural and food scientists is relatively stable during periods of economic recession. Layoffs are less likely among agricultural and food scientists than in some other occupa­ tions because food is a staple item and its demand fluctuates very little with economic activity.  Earnings Median annual earnings of food scientists and technologists were $50,840 in May 2004. The middle 50 percent earned between $36,450 and $72,510. The lowest 10 percent earned less than $28,410, and the highest 10 percent earned more than $91,300. Median annual earnings of soil and plant scientists were $51,200 in May 2004. The middle 50 percent earned between $37,890 and $69,120. The lowest 10 percent earned less than $30,660, and the highest 10 percent earned more than $88,840. In May 2004, median annual earnings of animal sci­ entists were $49,920. The average Federal salary for employees in nonsupervisory, supervisory, and managerial positions in 2005 was $87,025 in animal science and $73,573 in agronomy. According to the National Association of Colleges and Em­ ployers, beginning salary offers in 2005 for graduates with a bachelor’s degree in animal sciences averaged $30,614 a year; plant sciences, $31,649 a year; and in other agricultural sciences, $36,189 a year. Related Occupations The work of agricultural scientists is closely related to that of other scientists, including biological scientists, chemists, and conservation scientists and foresters. It also is related to the work of managers of agricultural production, such as farmers, ranchers, and agricultural managers. Certain specialties of agricultural science also are related to other occupations. For example, the work of animal scientists is related to the work of veterinarians, and horticulturists perform duties similar to duties of landscape architects.  Sources of Additional Information Agricultural career brochures are available from: >• American Society of Agronomy, Crop Science Society of America, Soil Science Society of America, 677 S. Segoe Rd., Madison, WI 53711­ 1086. Internet: http://www.agronomy.org Information on careers in agricultural science is available from: ► Food and Agricultural Careers for Tomorrow, Purdue University, 1140 Agricultural Administration Bldg., West Lafayette, IN 47907-1140. Information on acquiring a job as an agricultural scientist 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 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 tollfree, and charges may result.  150  Occupational Outlook Handbook  Biological Scientists (0*NET 19-1020.01, 19-1021.01, 19-1021.02, 19-1022.00, 19-1023.00, 19-1029.99)  Significant Points •  A Ph.D. degree usually is required for independent re­ search, but a master’s degree is sufficient for some jobs in applied research or product development; a bache­ lor’s degree is adequate for some nonresearch jobs.  •  Doctoral degree holders face competition for basic research positions; holders of bachelor’s or master’s degrees in biological science can expect better opportu­ nities in nonresearch positions.  •  Biotechnological research and development will con­ tinue to drive employment growth.  Nature of the Work Biological scientists study living organisms and their relationship to their environment. They research problems dealing with life processes and living organisms. Most specialize in some area of biology, such as zoology (the study of animals) or microbiology (the study of microscopic organisms). (Medical scientists, whose work is closely related to that of biological scientists, are discussed elsewhere in the Handbook.) Many biological scientists work in research and development. Some conduct basic research to advance knowledge of living organisms, including viruses, bacteria, and other infectious agents. Basic bio­ logical research continues to provide the building blocks necessary to develop solutions to human health problems and to preserve and repair the natural environment. Biological scientists mostly work independently in private industry, university, or government laboratories, often exploring new areas of research or expanding on speciali