High Earning Workers Who Don't Have a Bachelor's Degree U.S. Department of Labor Bureau of Labor Statistics Reprinted from the Winter 1994-95 issue of the Occupational Outlook Quarterly by Theresa Cosca [Graphic Omitted] What makes a good job? To many people, it's earnings. For them, the good news is that over 9 million, or 1 in every 6, full-time salaried workers age 25 and older who didn't have a bachelor's degree in 1993 earned $700 or more a week. That's close to the median for college graduates. However, it is necessary to go beyond wages in determining whether a position is the right one for you. Job characteristics, such as the nature of the work and working conditions, are also important. Still, everyone agrees that high earnings are better than low earnings. Furthermore, earnings can be measured, but many other factors cannot. The following pages discuss occupations in which many highly paid workers do not have a college degree and point out other factors that make for a good job. Many people are concerned that high-paid jobs are no longer available for those without a bachelor's degree. Employment has declined in manufacturing, telephone communications, and some other industries that traditionally provided high-paying jobs. For men without a 4-year degree, earnings adjusted for inflation have fallen over the past 15 years, due at least in part to these declines. Rising entry requirements for some professional, managerial, and other jobs have made entry without a degree more difficult. Despite these trends, many people without college degrees, including many people under 35, still have high earnings. In fact, 1 of these workers in 20 earns $1,000 or more a week. What the Numbers Say. There is no accepted definition of high earnings. Among the more objective measures available is the median earnings of all workers, the median being the point at which half the workers earned more and half earned less. The median earnings of workers with a bachelor's degree is another possible yardstick. In 1993, the median for all workers was about $500 a week. More precisely, median weekly earnings for all full-time, year-round workers age 25 and older were $493, or about $25,600 annually. The median for those with at least a bachelor's degree was $716, or about $37,200 annually. The low figure is almost three times higher than the minimum wage ($4.25 an hour) and the high figure is more than four times higher. [Chart Omitted] In 1993, 21.4 million workers without a 4-year degree earned $500 or more a week, and 9.3 million earned $700 or more. (See chart 1.) In other words, 2 out of 5 workers without a college degree earned more than the median for all workers. (See chart 2.) As the charts show, earnings were even higher, at $1,000 or more a week, for many workers. In a few occupations, more than 10 percent of the workers without college degrees earned over $1,000 a week. Consider the top earners-the most motivated, best prepared, or most fortunate workers-in these occupations: Minimum weekly earnings of the top 10 percent Occupation 1993 Mining, manufacturing, and wholesale $ 1,051 sales representatives Production occupation supervisors 1,000 Registered nurses 961 Police and detectives 889 Administrative support occupations, supervisors 888 Engineering and related technologists and technicians 856 Carpenters 801 Truckdrivers 800 To some extent, earnings reflect the innate skill and talent of the worker. Other factors, such as geographic region, urban or rural environment, industry, size of the facility, and unionization also effect earnings. And men, on average, earn more than women. Three other factors significantly affect the proportion of workers who have high earnings: * Occupation * Age * Education and training. Occupation. Tables 1 and 2 list all occupations that have more than 50,000 full-time wage and salary workers 25 and older who usually earn $700 a week or more. For this reason, some small occupations in which workers have high earnings are not listed; among these are elevator installer and air traffic controller. Table 1 lists the occupations and the number and percentage of workers who do not have a bachelor's degree. Table 2 lists the occupations by the percentage who usually earn $700 a week or more. Tables for all workers would show somewhat lower earnings because part-timers and workers under 25 typically make less. Also, in seasonal occupations, annual earnings may be lower than implied by weekly earnings. [Chart Omitted] Age. Generally speaking, earnings increase with age, as workers gain experience and seniority. (See chart 3.) This progression usually peaks between the ages of 45 to 54. For the same reasons, the number of high wage earners is concentrated in the 35-44- and 45-to 54-age groups. Some may argue from this that highly paid workers without bachelor's degrees entered the job market years ago, when entry standards were lower and more high- wage manufacturing jobs were available. However, some workers without a bachelor's degree achieve high earnings at a relatively young age, and obviously did so since "the good old days." For example, 2.2 million workers without a degree, age 25 to 29, earned $500 or more a week; and 725,000, $700 or more. Education. Lack of a 4-year degree doesn't mean one has no postsecondary education or training. In fact, research done for the Occupational Outlook Handbook indicates that training other than a bachelor's degree is the most appropriate preparation for some high-paying jobs. In general, workers with more training are more likely to have high earnings. Some high-wage occupations are difficult to enter without training, and within occupations, workers with the most training tend to have the highest paid and supervisory jobs. A 1991 study of job training, discussed in the Winter 1992-93 OOQ, also found that workers who said they needed some kind of training for their jobs earned substantially more than those who said they didn't. High wage earners develop the skills they need in many ways- associate's degree programs, college courses, post-secondary vocational schools and technical institutes, apprenticeships or other formal employer training, informal on-the-job-training, and armed forces experience. Earnings data are not available for all these types of training, but chart 4 shows that earnings increase steadily with education. What's Good Besides Earnings? As was said above, many people equate high earnings with good jobs. But jobs with relatively low wages in certain areas of the country may be better than the salary indicates because living costs are also likely to be lower. And there is more to work than wages. Other important concerns when evaluating an occupation include the following: * Benefits * Projected growth and openings * Unemployment rate * Advancement potential * Nature of the work and working conditions. Depending on the importance you give each of these factors, a good job might be one with lower than average earnings. Benefits. Employee benefits, once a minor addition to wages and salaries, are an increasingly important factor in defining a good job. In 1993, benefits averaged about 29 percent of total compensation costs. Some benefits, such as health and life insurance or subsidized child care, are virtually the same as cash, because they would otherwise have to be paid for out of earnings. Paid holidays and vacation leave improve the recipients' quality of life. Most employers also provide other benefits that add to the quality of a job, such as sick leave. Some employers, like airlines, provide free or subsidized travel, while retailers may provide discounts on merchandise. [Chart Omitted] Projected growth and openings. The projected growth rate and number of job openings serve to gauge how easy or difficult it will be to find a job in an occupation, and perhaps, also to be promoted. These projections are discussed in the Occupational Outlook Handbook and in "The 1992-2005 Job Outlook in Brief," in the Spring 1994 OOQ. In some cases, information on competition for jobs is also given. Some high-wage occupations available without a college degree, such as the precision production occupations, are not expected to grow. Others are expected to grow about as fast as the average for all workers, including engineering and science technicians; construction workers; and mechanics, installers, and repairers. Registered nurse and most health technician and technologist occupations are projected to grow much faster than average. More job openings result from the need to replace workers who transfer to different occupations, retire, or stop working for some other reason than from growth. For example, employment of secretaries is projected to increase by 386,000 jobs by 2005, but net replacement needs are expected to provide more than twice as many openings. Even occupations with little or no projected job growth have some openings. For example, precision production occupations are expected to have 68,000 job openings annually due to net replacement needs. [Chart Omitted] Unemployment rate. Some occupations have high unemployment rates. This does not necessarily disqualify them as high-paying jobs. Those that provide high hourly earnings and unemployment compensation can still yield a high annual income. Furthermore, many workers in these occupations do have steady year-round jobs. High unemployment rates are common in many construction occupations, such as carpenter and electrician, as well as manufacturing jobs, such as assembler and machine operator. Unemployment rates actually reflect two kinds of unemployment: Cyclical and long-term. Recession and seasonal changes in production create cyclical unemployment in many occupations. During slack periods, workers may face temporary layoffs but can expect to be reemployed when conditions improve. On the other hand, long-term unemployment or even permanent job loss may be caused by restructuring or plant closings. Jobs in organizations or industries with good long term prospects are obviously more desirable. Even if you lose your job, you are more likely to find another one in such an industry. [Graphic Omitted] Advancement potential. Some occupations offer a natural progression of career advancement, such as from electrician apprentice to journey level electrician to electrician supervisor or contractor. Workers in other occupations may need to carve their own paths to success, following less orthodox routes. Still other occupations or jobs offer few if any chances for advancement. Often, promotion potential varies from employer to employer. In general, fast growing occupations and organizations offer better promotion prospects. Large employers offer better prospects, at least without the need to change employers, but small organizations may offer broader responsibilities and opportunities to learn a wider range of skills. In any job, it is important to be ready to act on opportunities as they arise. Nature of the work. For most people, a good job is one that they find interesting, that fully uses their skills, or that satisfies their needs in other ways. Almost everybody appreciates a job where they can see the results of their work and feel a sense of accomplishment. Others seek a job related to an interest, such as cars, music, or children. Helping others is often the central satisfaction for those in health, teaching, or social work occupations. Satisfying aspects of a job may include analyzing data or information, coordinating events and activities, teaching or mentoring, selling to or persuading others, operating or fixing machinery, or designing or creating new ideas, concepts, or works of art. Other characteristics that define a good job include the level of physical exertion necessary, cleanliness and safety of the workplace, level of contact with people, ability to decide how work is to be done, and the level of stress. For some, no amount of money is worth the grueling hours and stress that many physicians live with, or the physical exertion, danger, or dirt faced by coal miners and some construction workers, or the boredom of assembly line work. Others find job pressures exciting, don't mind the danger or dirt, or welcome the stress. ("Matching Yourself With the World of Work in 1992," in the Fall 1992 OOQ, classifies occupations by characteristics such as these. Reprints of the article are for sale by the Government Printing Office, price: $1.) For many, working with people that they like and respect and having a good supervisor are essential elements of a good job. They may also want an employer whose goals and policies they agree with. Likewise, some workers seek the security of a salaried job with a well-established, stable organization, but others find stimulation in risk-taking -running their own business, working for a fledgling organization, or selling on commission. Where a job is located may also be important. Some people do not want a long commute or a geographic relocation. For them, a good job is one that is available where they live. Finally, the steady hours that high pay demands may be just the opposite of what a worker wants. Some only want part-time work, due to family responsibilities, school, or other pursuits. Will You Be Ready? Despite the public's perception that the economy is creating mostly lower skill, low wage jobs, examination of the data reveals that there are many good jobs for those who do not have a bachelor's degree-not only jobs with high wages, but also jobs that are good for other, less tangible reasons. Any job is a complicated medley of positives and negatives. One factor seldom makes a job good or bad. Get to know all you can about occupations you are considering. It is extremely important to research the entry requirements and other characteristics so that you will know what to expect out of the job. Above all, remember that it is important to make a career choice that is good for you. The demand for skilled workers will remain strong. Will you be ready? Table 1 Occupations of workers with less than a bachelor's degree, 1993 Total of Number Occupation* all workers Percent (thousands)** 54,095 71 Accountants and auditors 313 28 Administrators and officials, public administration 215 42 Assemblers 845 96 Automobile mechanics 480 96 Bus, truck, and stationary engine mechanics 274 98 Carpenters 606 93 Computer operators 367 82 Computer programmers 197 40 Computer system analysts and scientists 190 31 Correctional institution officers 261 91 Designers 154 53 Electrical and electronic engineers 121 26 Electrical and electronic equipment repairers 271 87 except telephone Electrical and electronic technicians 212 83 Electrical power installers and repairers 101 96 Electricians 475 95 Financial managers 203 42 Firefighting occupations 155 90 Health technologists and technicians 808 79 Industrial, mechanical, and all other engineers 274 27 Industrial machinery repairers 487 96 Insurance sales occupations 200 55 Investigators and adjusters, insurance and other 673 75 Machine operators and tenders, except precision 3,667 96 Machinists and precision metalworking occupations 669 96 Mail carriers and postal clerks 513 89 Managers, marketing, advertising, and public relations 181 41 Managers, properties, and real estate 201 65 Managers, food service and lodging establishments 469 78 Managers and administrators not elsewhere classified 2,065 57 Other financial officers 249 43 Personnel, training, and labor relations specialists 164 47 Plumbers, pipefitters, and steamfitters 287 96 Police and detectives 353 75 Purchasing agents and buyers 260 66 Rail transportation occupations 95 94 Real estate sales occupations 168 54 Registered nurses 656 51 Sales occupations, other business services 190 53 Sales representatives, mining and manufacturing 635 56 and wholesale Science and engineering technicians 287 75 Secretaries 2,326 90 Stationary engineers and other plant and system 230 91 operators Supervisors, police and firefighting 92 71 Supervisors, mechanics and repairers 181 89 Supervisors, construction occupations 419 88 Supervisors, production occupations 1,010 87 Supervisors, administrative support occupations 519 73 Supervisors and proprietors, sales occupations 1,658 72 Telephone and telephone line installers and 211 95 repairers Truck drivers 2,000 96 Welders and cutters 438 98 All other occupations 26,021 70 * Includes only occupations with at least 50,000 workers with less than a bachelor's degree whose usual weekly earnings are $700 or more. Source: Current Population Survey. ** Employed wage and salary workers. Table 2 Workers with less than a bachelor's degree and usual weekly earnings of $700 or more, by occupation, 1993 Number Occupation* (thousands)*** Percent Total 9,269 17 Electrical and electronic engineers** 81 67 Industrial, mechanical, and all other engineers** 165 60 Rail transportation occupations 56 59 Computer system analysts and scientists** 108 56 Supervisors, police and firefighting 50 54 Electrical power installers and repairers 55 54 Computer programmers 107 54 Managers, marketing, advertising, and public 91 50 relations** Supervisors, mechanics and repairers 81 45 Firefighting occupations 69 44 Telephone and telephone line installers and repairers 92 44 Financial managers** 87 43 Managers and administrators not elsewhere classified 874 42 Supervisors, construction occupations 177 42 Registered nurses 269 41 Real estate sales occupations 65 39 Police and detectives 135 38 Electrical and electronic technicians 75 35 Designers 52 34 Sales representatives, mining and manufacturing 212 33 and wholesale Stationary engineers and other plant and system 75 33 operators Supervisors, production occupations 326 32 Sales occupations, other business services 61 32 Personnel, training, and labor relations 52 32 specialists** Other financial officers 79 32 Electricians 149 31 Administrators and officials, public administration 66 30 Electrical and electronic equipment repairers, 82 30 except telephone Plumbers, pipefitters, and steamfitters 78 27 Insurance sales occupations 52 26 Supervisors, administrative support occupations 134 26 Managers, properties and real estate** 51 25 Machinists and precision metalworking occupations 165 25 Science and engineering technicians 69 24 Industrial machinery repairers 116 24 Supervisors and proprietors, sales occupations 378 23 Accountants and auditors** 68 22 Mail carriers and postal clerks 109 21 Purchasing agents and buyers 51 20 Bus, truck, and stationary engine mechanics 53 19 Truck drivers 382 19 Correctional institution officers 50 19 Managers, food service and lodging establishments 83 18 Carpenters 107 18 Automobile mechanics 81 17 Welders and cutters 64 15 Computer operators 50 14 Health technologists and technicians 106 13 Assemblers 96 11 Investigators and adjusters, insurance and other 73 11 Machine operators and tenders, except precision 255 7 Secretaries 117 5 All other occupations 2,687 10 * Includes only occupations with at least 50,000 workers with less than a bachelor's degree. ** A bachelor's degree is usually required for entry. Those without a degree may have entered the occupation when requirements were lower or may be in the limited number of positions that do not require a degree. *** Employed wage and salary workers. Source: Current Population Survey. Theresa Cosca is an economist in the Office of Employment Projections, BLS (202) 606-5712 Occupational Outlook Quarterly/Winter 1994-95