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Tech Talent Study
Preliminary Findings
Brian Kelsey
Civic Analytics LLC
May 2015
Purpose
• Quantify perceptions of tech “skills gap” and
create a baseline for future assessment.
• Identify critical skill (core) occupations in tech
workforce necessary for growth.
• Provide input on employer needs to education
and training providers.
• Inform ATC’s tech talent work plan focused on
strengthening public-private partnerships.
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Austin is among fastest growing tech markets in U.S.
Tech Jobs % Tech 2013-14
Projected Job Growth, ‘14-’20
Raleigh
57,838
9.5%
9.4%
Seattle
Durham-Chapel Hill
32,920
10.4%
7.2%
Salt Lake City
San Jose
294,848
27.0%
6.4%
San Francisco
San Francisco
236,525
9.7%
5.7%
Raleigh
11.4%
Austin
108,310
11.1%
5.3%
Austin
11.0%
Boston
266,409
9.6%
4.0%
Seattle
175,670
8.6%
3.8%
43,686
6.1%
2.6%
Dallas
207,012
5.8%
2.2%
Washington DC
295,106
8.8%
-2.4%
Durham-Chapel Hill
6,736,083
4.4%
2.6%
Dallas
Salt Lake City
Nation
Source: EMSI. Includes self-employment. Comparison regions selected based on anecdotal information of markets
Austin likely competes with for tech talent. No statistical procedure was used to select comparisons.
16.0%
15.5%
14.8%
Washington DC
9.9%
San Jose
8.9%
Boston
8.5%
6.0%
5.0%
3
Secondary Data Summary:
Overview of Austin’s Tech Talent Landscape
How are we defining “tech”?
ATC generally follows the methodology
used by TECNA/CompTIA/TechAmerica
for their annual Cyberstates report.* It
currently includes 49 industries.
Austin’s largest tech sectors ranked by
minimum of $1 billion contribution to
regional gross domestic product:
#1
#2
#3
#4
#5
Computer & Peripheral Equipment
IT Services & Applications
Internet & Telecommunications
Semiconductors
Software
• $22.3 billion in value-added (GDP)
• 4,182 establishments
• 108,310 jobs (120,257 by 2020)
• 67,546 “core” jobs in total tech talent
labor pool in Austin (66% in tech)
• ~6,000 avg monthly job postings for
core occupations – ~2,500 to 3,500
avg core job openings expected per
year in Austin, 2014-2024*
• 1,539 core degrees awarded (2013)
Source: EMSI, 2014. GDP is an estimate for 2013. Jobs include self-employment. *Job postings are unique, de-duplicated average monthly openings advertised online during March 2014-March 2015
and include job openings at tech and non-tech businesses (i.e. total demand for core technical workers). See full Tech Talent Report for details and explanation of methodology used for estimates.
4
Employer Survey
• Web-based survey conducted in April 2015.
• Sent via email to ATC contact database.
• Included tech and life sciences firms.
• 52 responses (8% response rate).
• 87% respondents HQ in Austin.
5
Employer Survey
Overall Perceptions
Tech companies in Austin account for
108,310 jobs. Is Austin meeting current
and future workforce needs?
Source: EMSI, 2014. Includes self-employment.
Survey Respondents (52 ATC Members)
Employees
Number % Total
21 *
Software
1 to 10
19
37%
IT Services/Apps
11 to 50
16
31%
Semiconductors
51 to 125
8
15%
E-Commerce
8
4
3
126 to 500
6
12%
Life Sciences
3
501+
3
6%
Internet/Telecom
3
Total
52
100%
Other
Source: ATC Tech Talent Employer Survey.
*Software is overrepresented in
sample compared to its share of
tech sector as measured by number
of companies or jobs. Findings may
change w/ higher response rate or
more representative sample.
10
7
70% reported moderate-significant difficulty in hiring
but majority confident in ability to grow in Austin
Overall, how difficult is it to find qualified people to
fill job openings at your company in Austin?
How confident are you that Austin will be able to
meet your future workforce demand?
Extremely difficult
Extremely confident
8
Very difficult
5
Very confident
9
8
Confident
Difficult
16
19
Somewhat confident
Somewhat difficult
Not difficult
12
3
≥ Difficult: 70%
Source: ATC Tech Talent Employer Survey.
15
Not confident
I don’t know
5
2
≥ Confident: 57%
8
Smaller companies may be feeling disproportionate
impact of perceived shortage – “2nd Stage” effect?
Overall, how
difficult is it to
find qualified
people to fill
job openings at
your company
in Austin?
1 = Not difficult
2 = Somewhat difficult
3 = Difficult
4 = Very difficult
5 = Extremely difficult
How confident
are you that
Austin will be
able to meet
your future
workforce
demand?
1 = Not confident
2 = Somewhat confident
3 = Confident
4 = Very confident
5 = Extremely confident
0 = I don’t know
31% respondents reported that unfilled jobs
having harmful to extremely harmful effect.
Not harmful/didn’t know: 33%
Employees
Respondents Difficulty Confidence
Number* Average
Average
1 to 10
19
3.1
2.8
11 to 50
15
3.5
2.5
51 to 125
7
3.6
2.4
126 to 500
6
2.5
2.8
501+
3
2.3
3.7
50
3.1
2.7
Total (Ans)
Source: ATC Tech Talent Employer Survey. Second-stage firms have reached a growth stage of $1M to $50M in receipts and 10 to 100 employees. For more on second-stage company
research see Edward Lowe Foundation at http://edwardlowe.org/who-we-serve/secondstage. *Complete responses only (n = 50). Differences not statistically significant.
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Employer Survey
Core Occupations
There are more than 250 different types
of occupations reflected in Austin’s tech
workforce, including 19 core occupations
foundational to Austin’s tech talent
pipeline based on required technical
skills, high volume of job postings, and
projected employment growth.
Developers likely driving perceptions of shortages
but could be “spiky” by industry & growth stage
How difficult is it to find qualified people
to fill job openings in Austin?
Occupation
1 = Not difficult
3 = Difficult
5 = Extremely difficult
2 = Somewhat difficult 4 = Very difficult N/A = Not applicable
Average
N/A
Occupation
Average
N/A
Comp & Info Research Scientists
3.2 65%
Electronics Engineers
2.7 76%
Information Security Analysts
3.2 65%
Network & Comp Systems Admins
2.7 52%
Software Developers, Apps
3.2 18%
Computer Hardware Engineers
2.5 78%
Software Developers, Systems
3.2 29%
Computer & Info Systems Managers
2.4 51%
Computer Network Architects
3.1 55%
Computer Miscellaneous (QA, testers)
2.3 51%
Electrical Engineers
3.1 71%
Industrial Engineers
2.3 82%
Computer Programmers
2.9 40%
Comp Network Support Specialists
2.0 61%
Database Administrators
2.8 51%
Electrical/Electronics Engin Techs
2.0 76%
Web Developers
2.8 41%
Computer User Support Specialists
1.8 53%
Computer Systems Analysts
2.7 69%
Developers accounted for 43% of reported job openings.
Source: ATC Tech Talent Employer Survey. Scores were averaged from number of respondents providing a rating or answering N/A (i.e. blank responses were excluded).
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Employer Survey
Supply-Side Issues
Are secondary & postsecondary programs
aligned to needs of employers in Austin?
Are postsecondary institutions graduating
enough students to meet labor demand?
Tech skills should be CTE priority in K-12 but current
offerings in Austin not aligned w/ employer needs
Career & tech education (CTE)
Employer Needs
Avg
1.9 44%
JavaScript
3.8
Cisco Net Associate (CCNA)
1.8 47%
Linux
3.5
A+
1.8 50%
Java
3.4
Cisco Entry Net Tech (CCENT)
1.7 47%
C++
3.1
60% of respondents reported
that all certifications currently
offered in Austin area school
districts were not applicable
or not important.
Internet & Comp Core Cert (IC3)
1.7 48%
PHP
3.1
Sun Cert Java Associate (SCJA)
1.6 47%
Python
3.1
Adobe Dreamweaver
1.5 48%
Ruby
3.0
Internet Webmaster (CIW)
1.5 48%
C#
2.9
Others:
Lisp 1.7/40%
Go 1.5/45%
Strata IT Fundamentals
1.3 55%
Perl
2.6
TestOut PC Pro
1.3 54%
Haskell
2.0
1 = Not important
2 = Somewhat important
3 = Important
4 = Very important
5 = Extremely important
N/A = Not applicable
Write-ins:
Objective-C
Swift
ISD Certifications Offered
Avg
Network+
Source: ATC Tech Talent Employer Survey. List of certifications offered in Austin area school districts was provided by E3 Alliance (October 2014).
Scores were averaged from number of respondents providing a rating or answering N/A (i.e. blank responses were excluded).
N/A
13
Hiring every local graduate of core related programs
would still fall short of meeting core labor demand
Postsecondary institutions in Austin awarded
1,539 degrees (2013) in programs preparing
students for critical skill (core) occupations.
Core Related Programs
Degrees Awarded
The University of Texas at Austin
836
Texas State University
269
~450 bachelor’s degrees awarded in comp &
information science & related fields. 20% of
total is associate’s degrees/certifications.
ITT Technical Institute-Austin
126
Austin Community College District
123
The Art Institute of Austin
58
The number of students graduating with core
credentials is growing slowly, ~70 per year.
CyberTex Institute of Technology
56
Saint Edward's University
38
MakerSquare & other non-traditional educ &
training programs not reflected in data.
Huston-Tillotson University
10
Strayer University-Texas
10
6,075 avg monthly job postings online for core
positions at Austin companies.* ~2,500-3,500
core openings expected per year, 2014-2024.
Southwestern University
8
Various
5
Total
1,539
Source: EMSI, 2013 (latest available). Includes only data reported to the National Center for Education Statistics and therefore may not be comprehensive. *Job postings are unique, de-duplicated average monthly
openings advertised online during March 2014-March 2015 and include job openings at tech and non-tech businesses (i.e. total demand for core technical workers). See full report for details & methodology.
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Austin is trailing other leading regional tech markets
in # of degrees awarded from core tech programs
Study Follow-Up:
No single, authoritative
source for collecting,
validating, and tracking
postsecondary data for
labor market research
exists in Austin. This is
one area of opportunity
for ATC & its members.
See Recommendations
for more on this.
Washington DC
8,811
Boston
4,705
Dallas
3,923
Seattle
3,600
Salt Lake City
2,209
San Jose
2,158
San Francisco
2,152
Raleigh
1,744
Austin
Durham-Chapel Hill
1,539
635
Source: EMSI, 2013 (latest available). Includes only data reported to the National Center for Education Statistics and therefore may not be comprehensive.
Nationally, there were 228,731
degrees awarded in core tech
occupation programs in 2013.
Figures include only accredited
postsecondary institutions that
report data to National Center
for Education Statistics (i.e. no
data for MakerSquare, etc.).
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Job Postings for Core Occupations (March 2015)
37% respondents reported
outsourcing work to firms
outside Austin to mitigate
impact of unfilled jobs.
Study Follow-Up:
What is impact on Austin’s
economic development of
outsourcing work outside
Austin as a result of talent
shortages at tech firms?
422
124
377
104
171
94
148
85
133
80
124
78
Source: ATC Tech Talent Employer Survey, EMSI. Job postings are unique, de-duplicated average monthly openings advertised online in March 2015 and include job openings at tech and non-tech businesses
(i.e. total demand for core technical workers). Only top 12 companies listed here based on number of job postings. More than 50 companies in Austin had at least 25 job postings as of March 2015.
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Employer Survey
Demand-Side Issues
What are the opportunities & challenges
associated with strengthening Austin’s
tech talent pipeline?
Tech Talent Pipeline Opportunities
• 67% respondents estimated at least 50% of
new hires are already living in Austin – and
nearly half respondents said at least 75%.
• 33% of respondents reported employees w/
certificates and associate’s degrees – not all
tech jobs require advanced degrees.
• 71% respondents hire student interns and
48% respondents reported preference for
hiring more local graduates.
Source: ATC Tech Talent Employer Survey.
18
Tech Talent Pipeline Opportunities
• 92% respondents support outside education
& training for employees (38% respondents
subsidize tuition and/or training costs).
• Only 1 respondent could name a program in
Austin that provides employers w/ publiclyfunded job training assistance – how can we
increase awareness & participation?
• 27% respondents are active in schools, job
shadowing, and/or STEM non-profits.
Source: ATC Tech Talent Employer Survey.
19
Tech Talent Pipeline Challenges
• 42% of respondents require at least 5 years
of work experience for job applicants to be
considered qualified for technical jobs.
• 25% of respondents don’t hire recent college
graduates and 24% don’t offer internships.
• Only 12% of respondents reported that they
consider recent college graduates qualified,
or don’t ask for min years work experience.
Source: ATC Tech Talent Employer Survey.
20
Austin’s challenges may be impacting tech recruitment
Salary
Traffic
Housing
Why do candidates
living outside Austin
typically turn down
job offers?
Source: ATC Tech Talent Employer Survey.
Transit
Of the respondents who ask
candidates why they decline
job offers in Austin, 47% said
that low salary was a factor.
Nearly 1 in 5 respondents do
not ask candidates why they
decline job offers in Austin.
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Cost of living is (still) lower in Austin, but salary gaps
are significant with other leading regional markets
Table shows wage comparisons for
core occupation (19) jobs in tech
as of 2013 (latest available).
Bottom 10% and Top 10% refer to
the wage level signifying that 10%
of all jobs pay below (or above).
Wages do not include benefits.
Study Follow-Up:
We need better grasp on
impact of lower salaries in
Austin to understand how
talent supply is affected –
e.g., where are most job
offer declines occurring,
early-career, mid, senior?
Median Wage Bottom 10%
Top 10%
San Jose
$116,314
$74,110
$178,693
Seattle
$102,066
$66,706
$148,824
Washington DC
$101,712
$62,899
$154,565
San Francisco
$100,547
$63,398
$155,480
Boston
$96,616
$61,797
$148,387
Durham-Chapel Hill
$88,691
$56,992
$135,886
Raleigh
$83,054
$53,955
$123,386
Dallas
$81,848
$50,710
$127,150
Austin
$80,454
$49,150
$127,442
Salt Lake City
$75,254
$47,424
$111,155
National
$81,037
$49,275
$129,480
Source: EMSI, U.S. Bureau of Labor Statistics. Data is for 2013. Includes self-employment. Wages do not include benefits.
22
Summary Observations
• Tech talent shortage not at critical level yet
overall, but may be for second-stage firms –
a serious concern for Austin growth model.
• Graduates of core programs are increasing,
but slowly – capacity for education/training
may be adequate, but what about demand?
• Significant mismatch in certifications offered
in K-12 and skills demanded by tech firms in
Austin – greater alignment only possible w/
stronger public-private partnerships.
23
Recommendations
• We need more data to make more informed
conclusions – repeat employer survey to get
better response rate & more representative
sample of all tech companies in Austin.
• Collect and integrate completion data from
MakerSquare & other non-traditional educ
and training providers to improve estimate
for locally-produced tech talent supply.
24
Recommendations
• Explore feasibility of partnering with higher
education institution (Ray Marshall Center)
to create a Tech Talent Institute to improve
access to data & sustain effort.
• Convene K-12 & postsecondary education &
workforce development partners to review
and validate study findings & develop plan
for achieving greater alignment w/ hiring
needs of local tech companies.
25
Recommendations
• Develop an employer-driven strategy & peerto-peer marketing campaign to increase the
number of employers in Austin who are able
to invest in work-study experience – it’s only
way to increase # of work-ready graduates.
• Work through ATC Foundation to identify &
prioritize federal & state programs that can
subsidize STEM education/training projects.
26
Recommendations
• Engage in discussions about how proposed
Innovation District anchored by UT Medical
School could be leveraged as testing ground
for pilot tech talent initiatives.
• Develop and commit to regional tech talent
strategy w/ SMART goals for improving the
pipeline – we’ll be having this conversation
again five years from now otherwise.
27
7600 Burnet Road, Suite 108
Austin, Texas 78757
@civicanalytics
http://civicanalytics.com