For the past few years we’ve noticed a strong trend in the data, which is certainly corroborated by anecdotal evidence: managers are in demand. Businesses at every level are extremely dependent on good managers and management teams. To illustrate how the labor market data supports this notion, we selected 13 management occupations to see how they have performed over the last two years.
Overall, these occupation categories (as defined by SOC codes) added 83,000 jobs from 2010 to 2012 — an increase of 3%. Given the anemic economy, this is fine growth. However, much more impressive is the large amount of turnover in management occupations. We estimate that in those two years, 127,000 management jobs were left open because of turnover, which tells us that more jobs need to be refilled than are actually being created. This kind of churn is likely keeping a lot of businesses on their toes.
See this data table for more detail:
Management Occupation Detail
|Description||2010 Jobs||2012 Jobs||Change||% Change||Turnover||Median Hourly Earnings||Education Level|
|Source: QCEW Employees, Non-QCEW Employees & Self-Employed - EMSI 2012.4 Class of Worker BETA|
|Computer and Information Systems Managers||307,667||321,044||13,377||4%||10,034||$56.19||Bachelor's or higher degree, plus work experience|
|Sales Managers||339,493||350,332||10,839||3%||20,701||$47.87||Bachelor's or higher degree, plus work experience|
|Medical and Health Services Managers||295,717||304,765||9,048||3%||14,770||$40.97||Bachelor's degree|
|Industrial Production Managers||151,687||160,523||8,836||6%||7,445||$42.14||Bachelor's or higher degree, plus work experience|
|Financial Managers||502,479||510,340||7,861||2%||19,686||$50.77||Bachelor's or higher degree, plus work experience|
|Marketing Managers||178,168||185,255||7,087||4%||10,739||$54.05||Bachelor's or higher degree, plus work experience|
|Architectural and Engineering Managers||185,030||192,105||7,075||4%||7,434||$58.60||Bachelor's or higher degree, plus work experience|
|Administrative Services Managers||253,302||259,183||5,881||2%||12,741||$38.24||Work experience in a related occupation|
|Transportation, Storage, and Distribution Managers||94,328||97,633||3,305||4%||4,681||$38.49||Work experience in a related occupation|
|Human Resources Managers||89,702||92,851||3,149||4%||4,681||$45.98||Bachelor's or higher degree, plus work experience|
|Purchasing Managers||67,482||70,179||2,697||4%||4,314||$46.67||Bachelor's or higher degree, plus work experience|
|Education Administrators, Postsecondary||109,171||111,282||2,111||2%||6,499||$40.16||Master's degree|
|Public Relations and Fundraising Managers||55,492||57,110||1,618||3%||3,244||$44.86||Bachelor's or higher degree, plus work experience|
First, here are a few general observations:
- Bachelor’s level education is pretty standard among all these occupations, but even more common is the need for on-the-job experience. All but two occupations (administrative services managers and transportation, storage, and distribution managers) have bachelor’s or higher degrees plus work experience. In other words, if you want to be a manager, you’d better be willing to bide your time.
- The average median hourly wage for these jobs is nearly $48 per hour. This translates to $100,000 per year, which is almost $59,000 above the national average salary.
- Altogether, these 13 occupations account for an estimated 2.7 million jobs.
- Computer and information systems managers added the most jobs (13,400) in two years, which isn’t too surprising given the nature of this sector. It is also the second-highest paying occupation. The estimated turnover from 2010 to 2012 was 10,000 jobs.
- Sales managers is the second largest occupation category on our list and added the second highest number of new jobs (11,000). Sales managers also had the highest amount of turnover (21,000), which might strike us as odd since financial managers is a much bigger category (more on that under #4).
- Industrial production managers had the highest percent growth (6%). In addition, the occupation grew by 9,000 jobs and had about 15,000 as a result of turnover. The re-emergence of domestic manufacturing combined with an aging workforce is likely driving this demand.
- Financial managers employs more than half a million nationwide, making it the largest occupation on our list. It also has the lowest growth rate (2%, tied with admin services managers), adding 8,200 jobs in two years. We estimate that a little less than 20,000 financial managers turned over from 2010 to 2012 — a much greater turnover rate than for sales managers, which indicates that the sales management occupation is a lot more volatile.
- The highest paying occupation on our list is architectural and engineering managers. Right now they make nearly $60 per hour and from 2010 to 2012 added 7,000 jobs. Nearly 7,500 jobs turned over during that same time.
Now, whenever we look at data like this, we like to do a geographic breakdown to better understand how these jobs shake out across the 50 largest metro areas. Here we’re going to rank the best cities according to jobs that were added between 2010 and 2012.
As has been the case in many of our previous occupation reports, the San Jose metro (San Jose – Sunnyvale – Santa Clara, CA) is the leading area for jobs. From 2010 to 2012, these 13 management jobs grew by 8% and 3,000 jobs, which is the fastest growth for the top 50 metros. With 41,000 jobs, the San Jose metro is more than twice as concentrated for management jobs than the typical U.S. region. Not only that, but wages are the highest by far: managers in San Jose make about $71 per hour.
Other cities with higher levels of growth (roughly 7%) are Detroit, Houston, Oklahoma City, and San Francisco. See the comparison chart below. (The projection line is based on historical data and isn’t an economic forecast.)
Hartford, CT (Hartford – West Hartford – East Hartford, CT) has the second highest concentration of management occupations, but the performance in this economy is far below that of San Jose. From 2010 to 2012 there really wasn’t any job growth and the wages are only $44 per hour, which is below the national average for managers. Right now there are about 21,000 jobs in the region.
After San Jose and Hartford, the cities with the highest concentration of management jobs are Minneapolis (Minneapolis – St. Paul – Bloomington, MN-WI), Boston (Boston – Cambridge – Quincy, MA-NH), and Washington DC (Washington – Arlington – Alexandria DC-VA-MD-WV). These cities, which employ 57,000, 75,000, and 92,000 respectively, grew by 3% from 2010 to 2012.
Not surprisingly, the NYC metro area (the very expansive New York – Northern New Jersey – Long Island, NY-NJ region) is the biggest employer (206,000 jobs) and the region that added the most jobs (4,600 in two years). It is also the second highest paying region ($65 per hour average).
For more information on the top 50 metros, see the table below.
|MSA Name||2010 Jobs||2012 Jobs||Change||2012 Annual Openings||Median Hourly Earnings||2010 Nation Location Quotient|
|San Jose-Sunnyvale-Santa Clara, CA||38,100||41,003||2,903||8%||$70.64||2.20|
|Hartford-West Hartford-East Hartford, CT||20,812||20,638||(174)||-1%||$44.27||1.78|
|Minneapolis-St. Paul-Bloomington, MN-WI||54,938||56,651||1,713||3%||$51.52||1.64|
|San Francisco-Oakland-Fremont, CA||57,598||61,373||3,775||7%||$61.65||1.46|
|Charlotte-Gastonia-Rock Hill, NC-SC||21,385||22,441||1,056||5%||$54.87||1.34|
|Atlanta-Sandy Springs-Marietta, GA||57,727||60,616||2,889||5%||$48.67||1.33|
|New York-Northern New Jersey-Long Island, NY-NJ-PA||201,444||206,080||4,636||2%||$64.65||1.25|
|Milwaukee-Waukesha-West Allis, WI||19,057||19,576||519||3%||$46.01||1.24|
|Los Angeles-Long Beach-Santa Ana, CA||130,072||133,445||3,373||3%||$53.40||1.19|
|Austin-Round Rock-San Marcos, TX||17,911||18,976||1,065||6%||$52.35||1.16|
|Houston-Sugar Land-Baytown, TX||55,325||58,994||3,669||7%||$55.46||1.09|
|Oklahoma City, OK||12,286||13,119||833||7%||$39.16||1.09|
|San Diego-Carlsbad-San Marcos, CA||29,572||30,292||720||2%||$51.20||1.08|
|Providence-New Bedford-Fall River, RI-MA||14,092||14,259||167||1%||$50.05||1.08|
|Dallas-Fort Worth-Arlington, TX||61,222||63,806||2,584||4%||$50.98||1.07|
|Louisville/Jefferson County, KY-IN||12,173||12,754||581||5%||$40.48||1.07|
|Kansas City, MO-KS||18,738||19,046||308||2%||$44.86||0.99|
|Salt Lake City, UT||11,732||12,427||695||6%||$43.66||0.98|
|St. Louis, MO-IL||24,321||24,711||390||2%||$46.06||0.97|
|New Orleans-Metairie-Kenner, LA||8,486||8,561||75||1%||$41.70||0.82|
|Buffalo-Niagara Falls, NY||8,108||8,293||185||2%||$46.27||0.80|
|Riverside-San Bernardino-Ontario, CA||19,031||19,664||633||3%||$43.65||0.77|
|Las Vegas-Paradise, NV||12,009||12,239||230||2%||$42.50||0.76|
|San Antonio-New Braunfels, TX||13,026||13,495||469||4%||$45.29||0.74|
|Tampa-St. Petersburg-Clearwater, FL||15,236||15,649||413||3%||$49.48||0.70|
|Miami-Fort Lauderdale-Pompano Beach, FL||28,602||29,081||479||2%||$49.98||0.65|
|Virginia Beach-Norfolk-Newport News, VA-NC||9,931||10,049||118||1%||$46.52||0.63|
Data and analysis for this infographic came from Analyst, EMSI’s web-based labor market tool. Follow us on Twitter @desktopecon. Email Rob Sentz if you have any questions or comments, or would like to see further data.