Twin Cities Trends in Information Technology

By Rachel Vilsack
April 2010

Some professions, like computer and information technologists, are employed in every industry sector to some degree. With more than 81,800 people employed in computer-related professions, Minnesota ranked 17th among states nationwide that employed such professions in 2008.[1] These professionals fuel Minnesota’s high-tech industries, from hardware and software manufacturing, information technology (IT) services and network communications, and all the IT-intensive sectors. More than 83 percent of Minnesota employment in computer-related occupations is concentrated in the Twin Cities region, and recent survey results suggest that employers are hiring computer professionals, a welcome sign after the lengthy economic downturn.

Information Technology: The Profession

The Bureau of Labor Statistics of the U.S. Department of Labor charges each state with the collection of labor market statistics — like current employment, wages and employment projections — for individual occupations. To ensure comparability among these statistics across states or regions, every possible occupation is grouped into one of 800 nationally defined occupations called the Standard Occupational Classification System. There are currently 13 IT-related occupations for which labor market statistics are collected, including one categorized as a teaching profession. Table 1 details the employment and median wages for these occupations.

While these occupations are clearly defined, their titles may not immediately reflect the types of computer professions we hear about or the more common terms used by individuals who work in these fields, like Web developer, network security analyst, or helpdesk specialist.[2] One occupational category, “computer specialists, all other,” serves to “catch” those occupations not previously classified. This category may include small specialty computer occupations or computer-related occupations with multiple job duties.

Occupational employment totaled more than 1,659,000 jobs during second quarter 2008 in the Twin Cities region. Of this, approximately 4.5 percent, or 75,000 jobs, were in computer-related occupations. Computer software engineers who specialize in applications development are the largest IT occupation in the Twin Cities with more than 13,300 workers.

The median wage for all occupations in the Twin Cities region was $18.74 per hour during fourth quarter 2009. Median wages for computer-related occupations, at $36.83 per hour, were above the regional average and reflect the high level of education and training required for many of these professions.

Table 2 displays the occupational location quotients for computer-related occupations. In general, location quotients are ratios that compare the concentration of a resource or activity, such as employment, in a defined area to that of a larger area or base. For example, location quotients can be used to compare state employment to that of the nation or to compare employment in a region to that in the state. Minnesota stands out in several different IT occupational areas, most notably in computer and information systems managers, computer software engineers, applications, and network and computer systems administrators. Location quotients for these occupations illustrate that Minnesota has a higher concentration of workers in these occupations than the national average.

Regional employment projections through 2016 show strong growth in computer-related occupations (see Table 3). In fact, some of the fastest growing occupations in the Twin Cities region are computer-related. Only one occupation — computer programmers — is projected to see a decline in employment between 2006 and 2016. Replacement workers will be needed in all occupations as people retire or otherwise leave their occupation. While growth is projected to be strong, the education and skills needed for this future workforce may change as technology continues to advance, particularly as it relates to new applications.

Some IT occupations may also be affected by the increasing push toward green business practices. While IT occupational duties will remain the same, increased awareness of energy conservation and life cycle practices will become more important. The Computer Technology Industry Association (CompTIA), a nonprofit trade organization that provides IT certification programs, now offers a Strata Green IT certification.[3] Professionals demonstrate their knowledge of power management cost savings and virtualization techniques, environment-friendly waste disposal, and global standards and regulations, among others.

Expanded Labor Market Information for IT Occupations

Starting in 2010 the nationally defined occupational classification system will expand to include new classifications of IT professions. New occupational categories have been created for:

• Information Security Analysts
• Web Developers
• Computer Network Architects
• Computer User Support Specialists
• Computer Network Support Specialists

These occupations may have been previously defined elsewhere in the classification system.[4] Full implementation of the new occupational coding system may take some time, as sufficient data are needed to produce employment and wage estimates and other occupation-specific labor market statistics such as job vacancies, occupations in demand, and employment projections.

Information Technology: The Industry

While many businesses employ a computer support professional for their general computing needs, there is a larger, more defined information technology cluster. In the Twin Cities this sector includes core industries such as hardware and software manufacturing, IT services, and network communications. Additionally there are more IT-intensive industries — such as finance and insurance, advanced manufacturing, and publishing — that employ workers with skills in both the general computing services (hardware, software, and computer support) as well as more advanced applications like accounting systems, precision manufacturing equipment, and medical coding and record keeping.

Table 4 highlights employment in these major IT sectors. The computer and electronic product manufacturing sector and computer systems design services had the most jobs in the Twin Cities during third quarter 2009 at 34,640 and 21,870, respectively. Finance and insurance is the largest IT-intensive industry with almost 102,000 jobs.

Following the general economic trends in the Twin Cities region, employment has declined for many IT-related industries since the onset of the 2007 recession. Employment declines in electromedical and electrotherapeutic apparatus manufacturing (625 jobs), food manufacturing (183 jobs), and testing laboratories (105 jobs) have been modest compared to more significant declines in other sectors.

Information Technology: Demand for Workers       

After the dot-com bubble in the late 1990s, hiring for IT professionals has fluctuated with the state of the economy. Since 2001 the number of job vacancies for computer and mathematical occupations peaked at more than 3,700 job openings during second quarter 2007 and reached a low during fourth quarter 2002 and second quarter 2003 with 480 openings both quarters. The most recent survey identified 1,230 job openings during fourth quarter 2009, a 30.3 percent increase in vacancies over fourth quarter 2008.

Recent job vacancy survey findings show strong demand for some IT professionals in the Twin Cities during fourth quarter 2009. Computer support specialists (260 jobs), computer systems analysts (225 jobs), network and computer systems administrators (179 jobs), and computer software engineers, applications (168 jobs) displayed the largest numbers of job openings. In terms of demand — or the number of job openings based on current employment — database administrators (2.9 percent), network systems and data communications analysts (2.8 percent), computer support specialists (2.6 percent), and computer systems analysts (2.4 percent) display the greatest need for workers in the Twin Cities.

Minnesota IT Workforce Collaborative

Over the past few years the Minnesota Department of Employment and Economic Development has awarded grants to collaborative organizations that strategically integrate workforce development, economic development, and education. Known as the Framework for Integrated Regional Strategies, or FIRST, these grants seek to provide an opportunity for new cross-sector leadership around a shared vision. One of the FIRST grant recipients in 2008 was the Minnesota IT Workforce Collaborative, which focuses on increasing the number and capabilities of IT professionals working in Minnesota. Its strategies include increasing the number and the preparation of high school and college graduates with IT career interests, identifying pathways to assist displaced workers to transition into IT careers, and increasing the capabilities of current IT professionals, among others.[5] Currently the Minnesota IT Workforce Collaborative is conducting a survey of Minnesota employers to identify the IT workforce needs of businesses.

[1]Bureau of Labor Statistics, Occupational Employment Statistics, see www.salarysurvey.org .

[2]Web developers and network security analysts are categorized under network systems and data communications analysts; helpdesk specialists are categorized under computer support specialists.

[3]CompTIA. Retrieved from www.comptia.org/certifications/strata/greenit.aspx .

[4]For an overview of the 2010 changes to the Standard Occupational Classification (SOC) System, see www.bls.gov/soc/soc_2010_user_guide.pdf .

[5]Minnesota IT Workforce Collaborative. Retrieved from www.mnitworkforce.org .

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