Women and Work:

Prospects for Parity in the New Economy

 

 

A report of the

State Employment and Training Commission's

Council on Gender Parity in Labor and Education

 

 

 

Prepared by

 

Dr. Mary Gatta, Director of Research & Analysis

Center for Women and Work

Rutgers, The State University of New Jersey

 

May 2001

 

 

 

Donald T. DiFrancesco, Acting Governor                                                                      

 

Dianne Mills McKay, Chair

Council on Gender Parity in Labor & Education

 

            John J. Heldrich, Chairman

            State Employment & Training Commission

 


Introduction

             The New Jersey Council on Gender Parity in Labor and Education recognizes the underrepresentation of women in science and technology jobs and educational programs as a workforce issue that inhibits the full utilization of its potential workforce.  The issues surrounding the exclusion of women from these occupations and training opportunities are explored in this report and recommendations are suggested to remedy the situation.  This report and its recommendations were developed as an extension of the New Jersey State Employment and Training Commission's (SETC) Unified State Plan for New Jersey's Workforce Readiness System.  The Unified State Plan, first introduced in 1992 and revised in 1996, is an effort to address the complexities of creating a unified high-quality workforce investment system.  The Council strongly believes that this report will aid the State of New Jersey in meeting one of the core principles of the Unified State Plan: there must be full utilization of all potential workers.[1]

 

This report should be seen as an initial step in recognizing workforce issues.  Simply identifying the underrepresentation of women in science and technology fields is not enough - instead, the Council believes that strategies must be developed to increase the proportion of women in these fields.  As early as 1985, the U.S. Office on Technology Assessment found that New Jersey would be facing a shortage of scientists and engineers.  That Office encouraged recruiting women and minorities into the fields of science and technology.  It was reasoned that doing so would alleviate the shortage of workers by the twenty-first century.[2]  However, because these recommendations were not followed, New Jersey is facing the workforce crisis that it was alerted to over fifteen years ago. 

 

Gender parity in the educational and workforce training system is an economic necessity for the U.S. to remain globally competitive.  Indeed, this issue is crucial for New Jersey to attract and maintain the industries such as information technology, telecommunications, pharmaceuticals, and biotechnology, which, among other science and high-technology industries, make up an essential component of the State’s economic base.  While increasing the representation of women in these fields and educational programs is clearly good for women, it is also good for business and good for the New Jersey economy.


 

New Jersey's Economic Future: Projected Job Growth and Skill Needs

As we enter the twenty-first century, New Jersey’s economic base is shifting from an industrial goods-producing economy to a knowledge-based economy.  Much of this recent transformation has been propelled by the State’s rapid expansion in the sectors of science and technology.  New Jersey’s growth in this area has been so great that The New York Times has recently dubbed New Jersey the “Silicon Parkway.”  Northern New Jersey has 3,000 more high-technology firms than Silicon Valley; 30 of the fastest growing national high-technology companies are in New Jersey; and New Jersey ranks 5th among states with growing high-technology companies.[3]  New Jersey is quickly becoming a national and global leader in the science and technology sector, creating an increasingly large number of new jobs to fill each year.  However, as New Jersey continues to grow in this field, the State is facing a potentially devastating labor crisis.  Simply put, the labor demand is not being met by the current labor supply.  If this situation is not addressed, significant labor shortages that will occur throughout the early part of the twenty-first century will hinder the State’s economic growth.

 

New Jersey’s shift to a knowledge-based economy has drastically reshaped the overall employment picture.  New jobs and industries that require higher-level skills from workers are being created, while old ones are declining and disappearing.  Indeed, economic success is highly dependent on the talents of the workforce at all occupational levels in the new economy.  For example, since computers and machines currently perform much of the needed industrial labor, factory workers are now expected to possess the skills and leadership to manage the technology as opposed to merely engaging in physical work.   This new relationship between workers and technology requires that the workforce possess high-level skills in computers, electronics, life sciences, mathematics, and engineering, along with various combinations of those skills.  In addition, workers need flexible analytical and communication skills that will enable them to adapt their talents to changing labor market conditions.

 

As evidenced from data collected by the New Jersey Department of Labor, New Jersey's goods-producing industrial sectors are projected to decline by 2008 (see Figure 1).  Manufacturing industries are expected to continue to decline as they have throughout the 1990s, falling 7.1 percent by 2008.  This translates into a loss of 34,100 jobs in this sector.  Within the manufacturing sector, the apparel and textile industries are projected to experience the greatest decline, a loss of approximately 31.4 percent or a loss of 7,600 jobs by 2008.  Consistent with a shift to a knowledge-based economy, employment declines are predicted to be the greatest in industries that manufacture durable goods. 

Figure 1:

Notes:

TCPU - Transportation, Communications, and Public Utilities

FIRE  -  Finance, Insurance and Real Estate

 

Source: Projections 2008 New Jersey Employment and Population in the 21st Century.  Vol. 1 Industry and Occupational Employment Projections for New Jersey 1998-2008.   Part A (State Projections, July 2000) NJ Department of Labor Market and Demographic Research.

 

Alternatively, New Jersey's growth throughout the first decade of the twenty-first century is expected to occur primarily in service-producing industries.  This sector includes New Jersey's two largest industries, business services and health services.  Business services industries are projected to be the fastest growing state industry, creating 135,500 new jobs to fill by 2008.  The expansion of business services is primarily propelled by continued strong growth in computer and data processing services.  Most significantly, this growth reflects the creation and expansion of information technology occupations.  While there are many different ways to define information technology, the Council chose to adapt a definition used by the Women and Minorities in Information Technology Forum:  Information technology jobs involve the creation, storage, exchange, and/or use of information through technological means.  Specific information technology jobs include designing and developing software and hardware systems, providing technical support for computer systems, and creating and supporting network systems and databases.[4]  As evident from the definition, information technology jobs are represented in all New Jersey industries, not just technical specialties.  This requires workers in all industries to possess a general set of technical skills regardless of occupation.[5]

 

            These projected industrial shifts, along with the proliferation of technology in all labor sectors, correspond to changes within New Jersey's occupational structure.   By the year 2008, professional and technical specialty occupations are projected to experience the largest employment growth, at least double that of all other occupational categories.  Specifically, from 1998 to 2008, two out of every five new jobs in New Jersey will be in the professional and technical occupational category (see Figure 2).  This will create 193,000 new jobs in New Jersey including computer scientists, systems analysts, and engineers.  Most of the occupations included within this category are high-skilled jobs in the service producing industries.  In contrast, the occupational categories expected to experience relatively slow growth are: operators, fabricators, and laborers; and precision production, crafts, and repairers.  These areas will create only 33,600 and 16,000 new jobs respectively.

 

Figure 2:

Source:           Projections 2008: New Jersey Employment and Population in the 21st Century, June 2000, NJ Department of Labor Market and Demographic Research.

Almost half a million new jobs are projected to be created by 2008, however, the total number of job openings in New Jersey is expected to be even greater.  This results from the movement of workers out of the labor force (as a result of retirement, death, permanent disability and/or career change).  In New Jersey, on average, 146,660 jobs will need to be filled each year, with approximately two-thirds of those jobs resulting from individuals leaving the workforce.  In replacement jobs, as in new jobs, the most openings are projected to occur in the professional and technical occupations, approximately 38,000 jobs each year (see Figure 3).

 

Figure 3:

Source:           Projections 2008: New Jersey Employment and Population in the 21st Century, June 2000, NJ Department of Labor Market and Demographic Research.

 

These occupational categories include many sets of occupations that represent specific employee skills needs.  For example, the top five occupations that will experience the greatest percentage growth between 1998 and 2008 are in science, engineering, and technology fields.  In contrast, the occupations that are expected to decline are concentrated in industrial sectors (see Table 1). 


Table 1:

State of New Jersey Occupations With The Greatest Percentage Change*,

1998-2008

 

1998

2008

Change: 1998-2008     Annual Average Job Openings

Occupation

Number

Number

Number

Percent

Total

Growth

Replacements

Computer Support Specialists

18,600

35,500

16,800

90.4

1,800

1,680

120

Systems Analysts

28,800

52,500

23,700

82.0

2,540

2,370

180

Computer Engineers

13,400

24,400

10,900

81.2

1,180

1,090

80

Medical Assistants

8,400

13,800

5,400

63.9

750

540

210

Home Health Aides

22,000

35,900

13,700

61.8

1,680

1,370

310

Social/Human Service Assistants

7,500

11,600

4,100

54.0

600

410

190

Teachers & Instructors, NEC

5,600

8,600

3,000

53.3

360

300

60

Dental Assistants

8,000

11,900

3,900

48.0

510

390

120

Telmktrs/Door Sales/Related Wkrs

24,500

34,500

9,900

40.4

1,620

990

630

Teachers, Preschool

9,600

13,400

3,800

39.5

590

380

210

 

 

 

 

 

 

 

 

Sewing Machine Opers, Garment

9,700

5,700

-4,000

-41.7

130

0

130

Word Processors & Typists

18,500

13,100

-5,400

-29.4

360

0

360

Computer Oprs, Ex Peripheral Eq

7,300

5,300

-1,900

-26.7

100

0

100

Bank Tellers

16,200

13,000

-3,200

-19.8

690

0

690

Switchboard Operators

6,800

5,500

-1,300

-18.8

150