Higher Education Employment Report Second Quarter, 2014 / Published August 2014 Executive Summary For the fourth consecutive quarter, the number of jobs in higher education declined and the decrease in 2014 was the largest since these declines began, according to data from federal statistical sources and analyzed by HigherEdJobs. In addition, the 2014 market share of higher education jobs compared to all U.S. jobs also declined from the same period last year. Counter to the downward trend in higher education employment, the number of advertisements for job postings in academia continued to increase in 2014 and at a greater pace than a year ago. Additionally, compared to last year, institutions continued to shift their hiring towards administrative and executive positions over faculty positions, though the actual numbers of postings for both types of positions were up. The recent declines in overall higher education jobs and the increase of part-time job postings could be related to higher education funding that remains well below pre-recession levels in almost all states, according to a recent report from the Center on Budget and Policy Priorities, a Washington-based policy group, as colleges and universities are pressed to make spending cuts despite instituting tuition hikes. As of the second quarter of 2014, analyses of U.S. Department of Labor / Bureau of Labor Statistics (BLS) data on higher education employment as well as job posting trends with HigherEdJobs found: The number of jobs in higher education decreased during 2014, the fourth consecutive quarterly decrease and the largest decline since the current downward trend began. While the number of job postings for part-time faculty was up significantly compared to last year, the number of postings for full-time faculty was down incrementally. In contrast to the current declining trend in higher education employment, the number of advertisements for job openings in higher education experienced stronger growth in 2014 compared to 2013. The ratio of faculty to non-faculty (administrative and executive) postings continued to decline in 2014 and the trends diverged, indicating that academe may be anticipating the need for more new administrative and executive personnel than for new faculty. As the number of job postings for both part-time as well as full-time higher education positions continued to rise in 2014, postings for part-time grew much faster than for full-time. As seen in previous analyses of these data, the number of advertised job openings at community colleges increased at an accelerating rate in 2014, which was in contrast to the decrease in the quarterly job trend at community colleges. The Midwest region experienced the largest percentage increase in higher education job postings during 2014. John Ikenberry, Ph.D., President and Co-Founder HigherEdJobs 328 Innovation Boulevard, Suite 235 State College, PA 16803 media@higheredjobs.com 814-861-3080 (ext. 202) 2014 HIGHER EDUCATION EMPLOYMENT REPORT 1
About HigherEdJobs About this Report HigherEdJobs is the leading source for jobs and career information in academia. The company s web site, www.higheredjobs.com, receives more than 1,000,000 unique visitors a month. During 2013, more than 5,300 colleges and universities posted more than 135,000 faculty, administrative, and executive job postings to HigherEdJobs. Founded in 1996, HigherEdJobs mission is to help higher education candidates and employers connect with one another to find their dream job, or employee, as quickly as possible with the least amount of effort. HigherEdJobs is published by Internet Employment Linkage, Inc. (IEL). IEL is headquartered in State College, Pa., and has an accounting and operations office in Oak Park, Ill. The HigherEdJobs Higher Education Employment Report, published quarterly, provides summary information about employment within the higher education community. The goal of the report is to help academic leaders and policymakers better appreciate the trends we are experiencing with employment in real time. Those seeking jobs should also appreciate these same data. As background to some of the statistics we are reporting here, we define Higher Education Employment to include all types of employment at four-year colleges and universities as well as two-year community colleges. Findings on jobs in higher education and the U.S. economy are based on data from the U.S. Department of Labor / Bureau of Labor Statistics (BLS). Except where indicated otherwise, findings on advertised job postings in higher education are based on posting data from U.S. colleges and universities that have been continually subscribed to the HigherEdJobs unlimited posting plan since January 2010, a cohort of roughly 850 institutions. Each of the institutions included in this report has paid a flat fee for unlimited advertising and, consequently, has no financial deterrent to discourage it from posting any job opening on HigherEdJobs. The Higher Education Employment Report is produced by HigherEdJobs with critical analysis and expertise provided by Bruce Steinberg (www.brucesteinberg.net), an independent employment researcher. 2014 HIGHER EDUCATION EMPLOYMENT REPORT 2
Finding: The number of jobs in higher education decreased during 2014, the fourth consecutive quarterly decrease and the largest decline since the current downward trend began. Higher Education Jobs Compared to All U.S. Jobs (Monthly) Source: HigherEdJobs, based on U.S. Department of Labor / Bureau of Labor Statistics data, which are subject to revisions. (Note: Yellow markers are March data and presented for ease of year-over-year comparison.) The number of jobs in higher education was down during 2014 compared to the same period a year ago, declining 1.1 percent or 20,100 jobs, according to an analysis of the latest data from the Bureau of Labor Statistics (BLS). Growth in the sector has been slowing recently and the second quarter decline is the fourth consecutive quarterly decline in the number of higher education jobs. Although the previous declines had been lessening from the time they first started, the decline in 2014 was the largest since the declines began. In Q3 2013, which was the first quarterly decline in higher education jobs since at least 2007, higher education jobs decreased 1.0 percent, or 16,300 jobs; in Q4 2013, they declined 0.7 percent, or about 14,300 jobs; in Q1 2014, they declined 0.5 percent, or 8,500 jobs; and in 2014, they declined 1.1 percent, or 20,100 jobs. In addition, the market share of jobs in higher education, which is the ratio of higher education jobs compared to overall U.S. jobs, continued to decline as well. This second quarter market share metric had varied by only 0.02 percentage points or less from 2010 to 2013, inclusive. But in 2014, the percentage of all U.S. jobs in higher education declined 0.03 percentage points compared to 2013, down to 1.26 percent. The decreasing market share of higher education jobs, combined with four quarters in a row of declining jobs in higher education, may suggest that the decline in higher education jobs is accelerating. Year-over-year percent change in: Higher education jobs Total overall non-farm jobs Higher education jobs as percent of all jobs Year Annual 2014-1.14 179 1.26 2013-0.1 0.36 1.67 1.29 2012 2.3 2.79 1.67 1.31 2011 2.4 2.29 0.99 1.30 2010 2.8 3.12-0.77 1.28 2009 2.7 2.87-4.67 1.23 2008 2.7 2.38-0.08 1.14 Source: HigherEdJobs analysis of U.S. Department of Labor / Bureau of Labor Statistics data. The federal government does not measure higher education employment or jobs per se. The term as used in this report is the combination of two NAICS (North American Industry Classification System) sectors: Junior Colleges (NAICS 611200), and Colleges and Universities (NAICS 611300). The data are reported by the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor. 2014 HIGHER EDUCATION EMPLOYMENT REPORT 3
Finding: In contrast to the current declining trend in higher education employment, the number of advertisements for job openings in higher education experienced stronger growth in 2014 compared to 2013. HigherEdJobs' Postings Compared to All Higher Education Jobs Sources: HigherEdJobs posting data from continuing unlimited posting subscribers; higher education jobs based upon HigherEdJobs analysis of U.S. Department of Labor / Bureau of Labor Statistics data. The number of advertised job openings in academia grew 15.9 percent from 2013 to 2014, a faster rate of increase than the 12.2 percent growth rate observed the prior year (from 2012 to 2013). These data are based on the total number of postings from colleges and universities continually subscribed to HigherEdJobs unlimited posting plan for four years or more (a cohort of roughly 850 institutions). Over the same period, higher education employment did not fare as well, declining from 2013 to 2014 by 1.14 percent (compared to higher education job postings that rose by 15.9 percent). From 2012 to 2013, higher education employment grew, but by only 0.4 percent (compared to 12.2 percent growth in higher education job postings). The increased rate of growth in higher education job postings in 2014 within an environment of accelerating decline for higher education employment (see previous finding) could Year HigherEdJobs postings Annual Year-over-year change (in percent) HigherEdJobs postings Total overall non-farm jobs Total Higher Education Jobs 2014 15.9 1.79-1.14 2013 13.8 12.2 1.67 0.36 2012 13.8 20.5 1.67 2.79 2011 21.3 20.8 0.99 2.29 Sources: HigherEdJobs posting data from continuing unlimited posting subscribers; Higher education jobs based on HigherEdJobs analysis of U.S. Department of Labor / Bureau of Labor Statistics data. indicate colleges and universities are facing more challenges finding qualified staff as the economy improves and creates more employment opportunities outside of academe. In addition, as detailed in subsequent findings in this report that found large increases for part-time job postings, colleges and universities may be seeking as much flexibility as possible, perhaps due to the tenuous and unknown state of current and future funding, and that is resulting in a greater desire to hire for part-time positions. The blue bars (January data highlighted in yellow for ease of year-over-year comparisons) in the chart above signify monthly job openings posted to HigherEdJobs by U.S. colleges and universities that have continuously subscribed to the company s unlimited posting plan since Jan. 1, 2010 (roughly equating to the retail sector s reporting of annual changes of same-store sales ). 2014 HIGHER EDUCATION EMPLOYMENT REPORT 4
Finding: The ratio of faculty to non-faculty (administrative and executive) postings continued to decline in 2014 and the trends diverged, indicating that academe may be anticipating the need for more new administrative and executive personnel than for new faculty. Faculty Job Postings Compared to Administrative and Executive Job Postings Source: HigherEdJobs posting data from continuing unlimited posting subscribers. The ratio of faculty job postings compared to administrative and executive job postings declined in 2014, and by a greater amount compared to recent years. The movement in 2014 could indicate that although the number of faculty positions is still growing in number, institutions continue to anticipate even greater need for administrative and executive personnel. From 2013 to 2014, the ratio of job postings for faculty positions decreased 2.2 percentage points, from 27.6 percent to 25.4 percent. This appears to be significantly different than the 0.4 percentage point decline in 2013 as well as the 0.6 percentage point decline in 2012. Year Faculty Positions Percent of job postings that were: Quarter Two Administrative and Executive Positions 2014 25.4 74.2 Faculty Positions Annual Administrative and Executive Positions While the ratio of faculty to administrative and executive job postings decreased 2.2 percentage points in 2014, the actual number of advertisements for faculty positions increased 6.5 percent. However, this was less than the 9.5 percent, 18.0 percent, and 10.9 percent increase in the number of faculty job postings in the second quarters of 2011, 2012, and 2013, respectively. 2013 27.6 72.4 31.1 68.9 2012 28.0 72.0 31.9 68.1 2011 28.6 71.4 32.8 67.2 2010 31.5 68.5 35.1 64.9 Source: HigherEdJobs posting data from continuing unlimited posting subscribers. Similarly, the actual number of administrative and executive positions has also changed along similar trends. In 2014, the number of administrative and executive job postings rose 14.5 percent, which, although greater than the 12.8 percent growth seen in 2013, was not as high as the 26.0 percent or 21.5 percent increases seen in the second quarters of 2011 and 2012, respectively. Note: No distinction is made between tenure track and non-tenure track faculty positions. Administrative and executive positions cover a wide variety of jobs including academic VPs, provosts, deans, IT managers, network administrators, fundraisers, administrative assistants, counselors, comptrollers, etc. 2014 HIGHER EDUCATION EMPLOYMENT REPORT 5
Finding: As the number of job postings for both part-time as well as fulltime higher education positions continued to rise in 2014, postings for part-time grew much faster than for full-time. Average Percentage of Part-Time Postings Source: HigherEdJobs posting data from continuing unlimited posting subscribers. The number of job postings for both full-time and part-time positions increased in 2014 compared to the same quarter a year earlier. However, the growth rate for part-time job postings was nearly three times the increase for fulltime postings. Although the rates of change for these metrics often fluctuate, the changes observed in 2014 were more extreme than seen in earlier periods indicating that academia may be relying more heavily on part-time positions. In the second quarter of 2011 through 2013, inclusive, the growth in part-time job postings ranged from 16.2 percent to 22.2 percent. But in 2014, they increased by 35.5 percent, which was more than twice the growth rate in the same quarter a year earlier. The number of postings for full-time positions followed the same basic, but not exact, pattern and with less variation. A year ago, in 2013, the number of full-time job postings grew at a lesser rate than the previous year. Then, during the most recent period, in 2014, the number full-time job postings grew 12.6 percent but that was only one percentage point higher than the previous year s second quarter growth. In addition, the percentage of part-time postings in 2014 reached at least a five-year second quarter high at 19.7 percent; the highest it had been previously was one year earlier in 2013 when it was 16.4 percent. Average percentage of part-time postings 2010 2011 2012 2013 2014 14.5 15.0 15.3 16.4 Furthermore, the difference between the growth rates of parttime and full-time job postings did not exceed 4.6 percentage unlimited posting subscribers. Source: HigherEdJobs posting data from continuing points for at least three years prior until 2014 when part-time postings grew at 22.9 percent percentage points faster than the number of full-time postings. 2010 2011 2012 2013 2014 15.7 16.0 15.8 16.4 19.7 Change in number of part-time job postings (in percent) 2011 2012 2013 2014 22.2 19.4 16.2 35.5 Change in number of full-time job postings (in percent) 2011 2012 2013 2014 20.5 20.7 11.6 12.6 2014 HIGHER EDUCATION EMPLOYMENT REPORT 6
Finding: While the number of job postings for part-time faculty was up significantly compared to last year, the number of postings for full-time faculty was down incrementally. Portion of Job Postings that are Part-Time Source: HigherEdJobs posting data from continuing unlimited posting subscribers. The overall trends for part-time faculty and administrative jobs postings were similar to one another in 2014 they both rose. However, the pattern for full-time faculty job postings was much different than the trend for full-time administrative postings. Part-time faculty job postings rose in 2014 by 22.7 percent, slightly less than the 23.4 percent they rose in 2013. Meanwhile, part-time administrative job postings also rose in 2014 but by 31.0 percent, much greater than the 7.2 percent they rose in 2103. In contrast, full-time faculty job postings incrementally declined in 2014 by 0.4 percent, a reverse of direction from the rise of 6.3 percent a year earlier in 2013. Full-time administrative job postings rose in 2014 by 13.0 percent, which was only slightly less than the 13.2 percent increased observed in 2103. Year Detail of Full-Time Compared to Part-Time Jobs Postings (in percent) Annual Change Annual Change Ratio of Change in in Full-Time in Part-Time Faculty Full-Time Faculty Faculty Faculty Postings for Postings (Annual) Postings Postings Part-Time 2014-0.4 22.7 34.6 2013 6.4 6.3 23.4 30.1 2012 9.1 17.4 19.4 27.0 2011 10.8 4.5 26.2 26.7 Year Change in Full-Time Administrative Postings (Annual) Annual Change in Full-Time Administrative Postings Annual Change in Part-Time Administrative Postings Ratio of Administrative Postings for Part-Time 2014 13.0 31.0 9.4 2013 15.3 13.2 7.2 8.2 2012 15.8 22.3 19.5 8.6 2011 26.2 27.5 17.3 8.8 Source: HigherEdJobs posting data from continuing unlimited posting subscribers. Therefore, although the number of all faculty job postings grew 6.5 percent in 2014 (discussed in further detail in the finding on page 5), this increase was driven by part-time faculty job postings, which tend to peak in the second quarter before declining in subsequent third and fourth quarters. Similarly, the 14.5 percent rise in all administrative and executive postings (again, see the finding on page 5) was also driven by part-time administrative and executive postings, but to a lesser degree. 2014 HIGHER EDUCATION EMPLOYMENT REPORT 7
Finding: As seen in previous analyses of these data, the number of advertised job openings at community colleges increased at an accelerating rate in 2014, which was in contrast to the decrease in the quarterly job trend at community colleges. Job Postings and Employment at Community Colleges Sources: HigherEdJobs posting data from continuing unlimited posting subscribers; U.S. Department of Labor / Bureau of Labor Statistics. The number of job postings for open positions at community colleges continued to increase and at a faster rate of growth in 2014. This is in contrast to the actual number of jobs at community colleges, which continued to decrease compared to previous second quarters, but the rate of decline appears to be consistently lessening. In addition, the number of community college jobs sequentially increased in the last month of 2104, which has not occurred in at least five years. Advertisements for job openings at community colleges increased 27.5 percent in 2014, a much faster rate of growth than the 16.4 percent rise experienced in 2013. In contrast, the number of jobs at community colleges decreased 9.7 percent during 2014 compared to the same period the year before (a 10.7 percent decline in 2013 and an 11.5 percent decline in 2012). In addition, 2014 marks the 12th consecutive quarter of job declines at community colleges. However, the number of jobs at community colleges grew 3.0 percent in June 2014 from the previous month (May 2014), the first June that this metric did not sequentially decrease since June 2008 (data earlier than 2010 not presented in this report) when the number of community college jobs increased 1.9 percent. Although a single statistical observation does not indicate a trend, the June 2014 growth in community college jobs, coupled with the trend of the decelerating quarterly declines in the number of community college jobs, could indicate that job growth may be returning to this segment, perhaps as more students seek out less expensive alternatives for higher education. Year Year-over-year change (in percent) Community College Job Postings (HigherEdJobs) Community College Jobs (BLS) 2014 27.5-9.7 2013 16.4-10.7 2012 21.1-11.5 2011 8.1 1.2 Sources: HigherEdJobs posting data from continuing unlimited posting subscribers; community college jobs from Department of Labor / Bureau of Labor Statistics. Note: Even though most two-year institutions now designate themselves as Community Colleges, the U.S. Bureau of Labor Statistics still categorizes these institutions as Junior Colleges. To avoid confusion, Junior Colleges are referred to as Community Colleges in this finding. The red markers, and right-hand scale, indicate Community College jobs. 2014 HIGHER EDUCATION EMPLOYMENT REPORT 8
Finding: The Midwest region experienced the largest percentage increase in higher education job postings during 2014. Change in Higher Education Job Postings by Census Division 2013 to 2014 Source: HigherEdJobs job postings from unlimited posting subscribers in 2013 and 2014. In the second quarter of 2014, the Midwest region outperformed all other regions for higher education job postings, increasing 19.2 percent. The next highest region was the Northeast, increasing 17.5 percent. The South region experienced the lowest growth rate for higher education job postings, increasing only 5.9 percent. Interestingly, the South region included both the area with the highest growth rate in higher education job postings (East South Central increasing 28.0 percent) as well as the area with the deepest percentage decline (South Atlantic decreasing 3.2 percent). Nationally, this 2014 cohort, which includes unlimited posting subscribers for the past 12 months, experienced an 11.6 percent rate of growth nationally for all types of higher education job postings. Region percent change in 2014 Area percent change in 2014 WEST 7.2 Pacific 7.6 Mountain 6.5 MIDWEST 19.2 West North Central 1.8 East North Central 26.0 SOUTH 5.9 West South Central 12.4 East South Central 28.0 South Atlantic -3.2 NORTHEAST 17.5 Middle Atlantic 22.6 New England 10.9 Source: HigherEdJobs job postings from unlimited posting subscribers in 2013 and 2014. However, as observed in past quarterly analysis of these data, the range of growth rates between geographic areas continued to narrow. In 2014, the difference between areas with the fastest growth rate both in the South region as noted above was 31.2 percentage points. In 2013, the difference between areas with the highest growth rate (Pacific, 35.8 percent) and the lowest rate, which was a decline (East North Central, -3.1 percent), was 38.9 percentage points. Note: The regions and areas used for this analysis are consistent with the official U.S. Census regions and divisions. (www.census.gov/geo/maps-data/maps/pdfs/reference/us_regdiv.pdf) 2014 HIGHER EDUCATION EMPLOYMENT REPORT 9
Higher Education Employment Report Second Quarter, 2014 / Published August 2014 For more information, contact: John Ikenberry, Ph.D. President and Co-Founder HigherEdJobs 328 Innovation Boulevard, Suite 235 State College, PA 16803 media@higheredjobs.com 814-861-3080 (ext. 202) Published by