Engineering and Technology Labour Market Study. Jointly sponsored by: Engineers Canada Canadian Council of Technicians and Technologists Financially supported

Engineering and Technology Labour Market Study

• Jointly sponsored by:• Engineers Canada• Canadian Council of Technicians and Technologists

• Financially supported by Human Resources and Social Development Canada

• Website: http://etlms.engineerscanada.ca

• Components:• Survey of Engineering and Technology Employers (700)• Survey of Engineers, Technicians and Technologists (15,585 of which 6,038 from Ontario)• Labour Market Conditions Tracking Model and Outlook • Changing Roles: Engineers and Technologists• Continuing Professional Development• Diversity Case Studies• Educational Choice of Young Women• International Competitiveness of Canada’s Consulting Engineering Sector


Engineering Grads• Who are they?• What types of jobs?

Who is doing Engineering

Work?

LicensureTrends

DemographicTrends

Women inEngineering Immigration

Trends

Trends inEducation

after Graduation

Career Paths

CPD

Labour Shortages vs. Skills Shortage

Skill Issues

Overlap between Technologists and Engineers

What does the labour market tell us now that we haveput the pieces together?

Educational Choice: WomenInternational Competitiveness

of Consulting Engineering


Filling in the pieces…

University Engineering Graduates

43%

52%

57%

48%

0%

10%

20%

30%

40%

50%

60%

70%

Canada Ontario

International Grads

Domestic Grads

In Ontario, the majority of university engineering graduates are international graduates.

2006 Census

University Engineering Graduates: Where are they?

Ontario’s share of total population: 38.5%

57%40% 47%

0%

10%

20%

30%

40%

50%

60%

International Grads Domestic Grads All Engineering Grads

Ontario's Share of Engineering Graduates

2006 Census

University Engineering Graduates: What types of jobs?

2006 Census

International

Grads

Domestic Grads

Engineering Occupations 17.0% 32.5%

Managerial Occupations (mostly engineering mgmt) 12.7% 17.1%

Other Natural and Applied Science Occups. 12.1% 12.7%

Occups in Govt, Social Sci, Education (most of) 5.2% 6.7%

Total – Engineering and Related 47.0% 69.0%

Technologists/Technicians 7.2% 5.3%

Sales and Service 12.5% 6.1%

Occups. in Processing, Manufacture, Utilities 8.7% 2.4%

Occups. In Primary Industries 0.7% 1.2%

Trades and Transport 12.4% 8.2%

“Under-employed” – Some proportion of: 41.5% 23.2%

Business, Finance, Administration 9.0% 6.1%

Culture, Recreation, Health 2.4% 1.7%



Work?


Who is doing Engineering Work?

30% of engineering occupations are filled by persons who are not university engineering graduates. (“Engineering Work” comprises the NOC engineering occupations, defined by StatsCan).

2006 Census

International Engineering

Grads20%

Domestic Engineering

Grads50%

International Technology

Grads1%

Domestic Technology

Grads9%

Other Professionals

20%



Work?

LicensureTrends


Licensure Trends vs. Employment Trends

Ontario

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Employed inEngineeringOccupations

Registered ProfessionalEngineers

1998 86% licensure rate

2007 71% licensure rate

• Licensure: total licensed/registered, including provisional, but excluding retirees

• Employment: engineering occupations per StatsCan Labour Force Survey

Statistics Canada LFS and PEO



Work?

LicensureTrends

DemographicTrends


Ontario: Age 15-19 Cohort (StatsCan’s Medium Population Growth Scenario)

780

800

820

840

860

880

900

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

1,00

0s

The age 15-19 cohort, from which the overwhelming majority of first year admissions are recruited, will begin to decline in Ontario in 2012. In other provinces, the decline has already started.

Statistics Canada



Work?

LicensureTrends

DemographicTrends

Women inEngineering


-

2,000

4,000

6,000

8,000

10,000

12,000

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

0%

5%

10%

15%

20%

25%

Per Cent

Number

Female Undergraduate Enrolment in Engineering (National Data)

The female share of undergraduate enrolments peaked in 2001 (20.7%), falling thereafter to 17.5% in 2005. In absolute numbers, female enrolments peaked in 2002, falling thereafter. The female share is back to where it was in the early 1990’s. In other words, there has been virtually no sustained progress. Engineers Canada

Female Share of Various Occupations: 2006 vs 1986

Other math and science based occupations have experienced more significant increases in female participation. Women are now the majority of admissions in 13 of 17 medical schools in Canada.

1986 and 2006 Census

6%

14%

40%

23%

30%

22%

23%

12%

22%

49%

31%

37%

39%

36%

0% 10% 20% 30% 40% 50% 60%

Engineers

Technicians and Technologists

Auditors, Accountants & InvestmentProfessionals

Occupations in Physical Sciences

Occupations in Life Sciences

Lawyers and Quebec Notaries

Physicians

2006

1986

Female Share of Engineering Occupations, by Discipline

There are notable and unexplained differences across engineering disciplines.

FemaleShare

C031 Civil engineers 12.4%

C032 Mechanical engineers 8.9%

C033 Electrical and electronics engineers 10.0%

C034 Chemical engineers 22.4%

C041 Industrial and manufacturing engineers 15.5%

C042 Metallurgical and materials engineers 12.7%

C043 Mining engineers 7.2%

C044 Geological engineers 13.1%

C045 Petroleum engineers 15.2%

C046 Aerospace engineers 11.1%

C047 Computer engineers (except software engineers) 13.0%

C048 Other professional engineers, not elsewhere classified 17.8%

Total Engineers 12.3%

2006 Census



Work?

LicensureTrends

DemographicTrends


Trends


Immigration and the Labour Market

0

50,000

100,000

150,000

200,000

250,000

300,000

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Doubling of intake targets

Change from Labour Market Absorption Model to Human Capital Model

Immigration (Canada): Intended Occupation Engineering

In 2001 and 2002, more than two-thirds of the increase in the supply of new engineers in Ontario was derived from immigration and less than one-third from new graduates.

Citizenship and Immigration Canada

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Change from Labour Market Absorption Model to Human Capital Model

Educational Qualifications Compared

Three Engineering Occupations (combined totals – Canada):• Electrical and Electronics Engineers• Computer Engineers• Software Engineers

2006 Census

7%

43%

50%

28%

50%

21%

0%

10%

20%

30%

40%

50%

60%

Less than a Bachelor'sDegree

Bachelor's Degree Graduate Degree

International Educated Professionals

Domestically Educated Professionals



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation


Education beyond Bachelor’s Degree in Engineering

More than 50% of Engineering Grads have an additional academic qualification beyond their engineering degree. This is an emerging norm.

Survey of Engineers, Technicians and Technologists

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

TradeQualification

CollegeQualification

GraduateDegree in

Engineering

MBA OtherUniversity

Degree

Canadian Bachelor's Degree Non-Canadian Bachelor's Degree



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths


Career Path: Managerial Roles

60-65% of engineers move into managerial roles over the course or their career. Just under half of engineers have assumed management roles by age 45. The profession appears to bifurcate: on a snapshot basis, about 45% are in managerial roles and 55% in technical or other roles.


0%

10%

20%

30%

40%

50%

60%

70%

<25 26-35 36-45 46-55 56-65 66+

Age Group

Engineers Technologists Technicians



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD


Employer Support for CPD

61%

46%

5% 4%

0%

10%

20%

30%

40%

50%

60%

70%

Financial(Tuition,etc.)

Paid Time toAttend

Paid Time to Study Other Support

Survey of Engineering and Technology Employers

• 30%: passive support

• 30-35%: active CPD strategies

• 35-40%: no support

Other Professions in Canada:• a majority of regulated professions have mandatory CPD (1999)

• 48% with no policies were planning to adopt a CPD policy

• Law is now moving to mandatory CPD:

• mandatory in BC

• virtually mandatory in Ontario and Alberta

• Architects have mandatory and prescribed CPD

Engineering in Other Jurisdictions:• Japan and UK have established CPD standards in many fields

• in US, many state registration boards require CPD

Engineering in Canada:• a majority of provinces have mandatory CPD

• Ontario, BC, and Quebec do not

• Therefore a majority of engineers are not subject to mandatory policies

Average CPD Day over Past Three Years

Association policies have a discernible impact on CPD rates.

Ontario 10.4 No Policy

Nova Scotia 12.4 Voluntary / No Recommended Norms

Quebec 10.2 Voluntary / No Recommended Norms

Manitoba 13.4 Voluntary / No Recommended Norms

British Columbia 12.3 Voluntary / Recommended Norms

Average 12.1

Newfoundland 14.1 Mandatory

New Brunswick 12.3 Mandatory

PEI 15.2 Mandatory

Saskatchewan 14.8 Mandatory

Alberta 14.4 Mandatory

Average 14.1




Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD



Core Skills, Skill Breadth and Skill Depth

Core Technical Skills acquired in

University or College

Specific Industry and Technology Skills acquired through Experience and/orAdvanced Studies

Business Skills acquired through

Experience

Increased Skill Breadth

Increased Skill Depth

“Skills Shortage” vs. “Labour Shortage”

Skills Shortage: a shortage of persons with the skills depth or skill breadth that is require by employers.

Labour Shortage: a shortage of persons with core skills

• a “skills shortage” can, and often does, co-exist with a “labour surplus”

• the mechanisms to address a “skills shortage” are different than the mechanisms to address a “labour shortage”

Labour Shortage: - enrolments / immigration

Skills Shortage: - co-op and internships at undergrad level- Continuing Professional Development- labour market integration programs

- re-vamped EIT system



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD


Skill Issues


Employer Dissatisfaction with Skills

• The 13% dissatisfaction with the science-based skills of recent graduates is troubling.

• More troubling is the high rate of dissatisfaction with the non-technical skills of recent graduates.


13%

5%

11%

4%

36%

22%

30%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Engineers 0-5Years

Engineers > 5Years

Technologists0-5 Years

Technologists>5 Years

Science-Based Skills Non-Technical Skills

Essential Very Important Moderately Not but not Essential Important Important

General Communications Inter-personal Team-Working

Working with Non-Tech Staff

Report Writing

Deal with cultural/gender diversity Project Management Knowledge of Regulations & Codes

Change Management Professional Presentation Skills Leadership Skills Quality Assurance

Risk Management Contract Administration Personnel Managements

Importance of Non-Technical Skills over Career

As an engineer progresses in his or her career, the relative importance of non-technical skills increases.


Essential Very Importantbut not Essential

ModeratelyImportant

Important

Engineers: > 5 Years Experience

Engineers: 0 - 5 Years Experience



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD


Skill Issues



Distribution of Engineering and Technology FunctionsBetween Engineers and Technologists

Interviews, Focus Groups

Engineers Limited Overlap

Moderate Overlap

Significant Overlap

Techs

Engineering Design l

Engineering Mgmt l

Project Management l

Technical Specification l

Technical Approvals l

On-Site Inspection l

Technical Testing l

Technical Evaluation l

Feasibility Analysis l

Process Control l

Quality Control l

Estimating l

Technical Procurement l

Installation & Repair l

Service and Support l

Technical Sales l

High Incidence

ModerateIncidence

Very Little Incidence

VirtuallyNo Incidence

Civil l

Mechanical l

Chemical l

Aeronautical l

Environmental l

Electrical & Electronic l

Mining l

Overlap is most evident in the three largest technical fields of engineering.

Trend to Overlap by Technical Fieldbetween Engineers and Technologists



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD


Skill Issues



Educational Choice: Women

Theories and Evidence

Theory Supported by Study?

Young women are streamed out of math and science.

No Support

Broad socio-cultural factors shape different career preferences.

Supported

Too few parents encourage their daughters to take math and science or to consider engineering and technology careers.

Study math & science: No Support

Engineering Careers: Parental influence appears to be markedly weaker

Peer influence No Support

Male dominance in classrooms. No Support (except possible for IT)

Theories and Evidence

Interviews, Focus Groups

Theory Supported by Study?

Gender bias in curriculum materials. No Support.

Limited or no knowledge about engineering careers

Strongly supported

Negative perceptions about engineering

Strongly supported

Few female role models Strongly Supported



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD


Skill Issues





$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

I 199

5

I 199

6

I 199

7

I 199

8

I 199

9

I 200

0

I 200

1

I 200

2

I 200

3

I 200

4

I 200

5

I 200

6

I 200

7

I 200

8

$ M

illio

ns

Exports

Imports

Canada is a significant net exporter of engineering services.

Roughly 15-20% of engineers in the consulting sector are supported, in whole or in part, by international work.

Import and Export of Engineering and Technical Services.

Canada’s Share of the International Market (ENR Estimates).

2.1% 2.2% 2.0%

2.5%

4.1%

5.6%

6.1%

3.8%3.4%

3.0%3.3%

3.6%3.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Canada follows the US and UK in the international market. Recently we have held the number three rank. Major competitors for that position: France and the Netherlands.

75.0

100.0

125.0

150.0

175.0

200.0

225.0

250.0

275.0

I 199

5

II 19

96

III 1

997

IV 1

998

I 200

0

II 20

01

III 2

002

IV 2

003

I 200

5

II 20

06

III 2

007

IV 2

008

Architecture,Engineering,and OtherTechnicalServices

C$

C$ and Export Performance

There is only a weak link between export performance for engineering services and the C$.

Key Fields / Key Skills in the International Market

Key Fields:

1. Energy

2. Infrastructure

3. Mining and Metallurgy

Key Skills:

1. Advanced or specialized design skills

2. Advanced project management skills

3. High levels of practical experience (risk mitigation)

4. Proprietary technologies



Work?

LicensureTrends

DemographicTrends


Trends

Trends inEducation

after Graduation

Career Paths

CPD


Skill Issues


What does the labour market tell us now that we haveput the pieces together?



The Ground has Shifted…

1. The regulatory system and the system of professional affiliation are increasingly ‘out of sync’ with the realities of the labour market.

2. Immigration has changed and will continue to change the profile of the profession and ‘supply side’ conditions in the labour market.

3. Demographic trends are shrinking the pool from which universities historically have recruited >80% of undergraduates. The gender composition of admissions is unchanged.

4. Labour market data are telling us that an engineering degree needs to be a “foundation degree”, as well as a “professional degree”. In the long run, this will change expectations about curriculum and possibly the structuring of professional education in engineering.

- 5th year - co-op / internship models - linking to other degrees, notably MBA - architecture (“professional degree” is a graduate degree) - “European Model” – Bologna Accord (3 years +2 years)

The Ground has Shifted…

5. The profession lags other professions in dealing with continuing professional development, which is increasingly seen as one of the defining attributes of a ‘profession’.

6. ‘Junior Engineer’ positions are disappearing:• substitution of technologists,• off-shoring of ‘commodity engineering’ work,• less competitive scope to train.

This has significant implications for the viability of the currentinternship model.

7. Non-technical skills have increased in importance and are now critical to a successful engineering career. There are troubling signs of employer dissatisfaction with the skills of recent engineering graduates.

8. Globalization (import and export of engineering services) has attained ‘critical mass’ and is now demonstrably having an influence on the skills profile by paying a premium for some skills and putting downward pressure on others.


John O’Grady

Prism Economics and Analysis

www.prismeconomics.com

[email protected]

http://etlms.engineerscanada.ca

Documents

Engineering and Technology Labour Market Study. Jointly sponsored by: Engineers Canada Canadian Council of Technicians and Technologists Financially supported