Advanced trade, technical and professional qualifications – matching supply to demand
There is a limited number of areas where it is clear that increasing the number of people with trade, technical or professional qualifications would definitely reduce skill shortages. These areas are in engineering, building and medical professions. Demand in these areas has been driven by increased use of technology, increased construction activity and increased demand for health services. In other areas examined in the report, improving the quality and relevance of qualifications is likely to be as important, or even more important, than increasing the number of people graduating.
This is report is the second in a series of three reports looking at the supply of and demand for advanced trade, technical and professional qualifications. The first report, looking at demand for qualifications is available on Education Counts.
Author: David Earle [Ministry of Education]Date Published: July 2008
5 - Engineering and related technologies
The first report identified unmet demand for people with engineering qualifications at both diploma and bachelors level and above in professional and technician and associate professional occupations. Unmet demand for people with level 4 engineering certificates was also identified in the trades. Demand is being driven by technology changes, as well as the growth in the construction industry.
5.1 Match of qualifications to occupation
People with engineering qualifications are more likely to work in the associated professional and technical occupation groups, and in trade occupations, than people with qualifications at the same level in other fields.
Figure 5.1 shows that people with level 4 certificates are more likely to work in the trades. People with diplomas are spread across professions, associate professions and the trades. People with bachelors and above are more concentrated in the professions.
5.2 Unemployment
Figure 5.2 shows that males with engineering qualifications are less likely to be unemployed than males with qualifications in other fields. However, females with engineering qualifications are much more likely to be unemployed than people with the same level of qualification in other fields.
Unemployment rates are lower for qualifications below degree level.
5.3 Income
There is clear evidence of income premiums being paid for people with engineering qualifications across levels and occupations.
Figure 5.3 shows that people with engineering qualifications below degree level are paid more than others with the same level of qualification across all occupational groups. At bachelors level the premium applies to those working as managers, professionals and associate professionals. It shows that people with qualifications in engineering are particularly valued as managers.
Figure 5.1: Are people with engineering qualifications more likely to work in related occupations?
Compared with people with the same level of qualification in other fields.
Figure 5.2: Are people with engineering qualifications more likely to be unemployed?
Compared with people with the same level of qualification in other fields.
Figure 5.3: Are people with engineering qualifications likely to earn more?
Compared with people with the same level of qualification in other fields.
Proportion earning more than $50,000 a year for certificates and diplomas and more than $70,000 for bachelors and above.
5.4 Demand for specialties
The first report indicated strong unmet demand for manufacturing engineers (with level 4 certificate), automotive engineers (level 4 certificate), mechanical and industrial engineers (all levels), civil engineers (diploma, bachelors and above) and electrical and electronic engineers (all levels).
These comparatively higher levels of demand are not as strongly evident with regard to unemployment rates and income, with the exception of civil and geomatic engineers,1 who have lower unemployment and higher incomes at both diploma and bachelors level. There are also income premiums for level 4 electrical and aerospace engineers.
Figure 5.4: Which engineering specialties are more likely to be unemployed?
Compared with rate for all engineering at the same level.
Figure 5.5: Which engineering specialties are more likely to earn more?
Compared with rate for all engineering at the same level.
Proportion earning more than $50,000 a year.
Footnote
- Civil engineers are trained in the areas of building, construction, public works and infrastructure. Geomatic engineers are trained in mapping and surveying. The two areas are therefore quite closely connected.