Demand for engineering talent is high, but are enough graduates entering the industry?
Certain industries are booming – with the manufacturing sector being one of these.
Insights reveal that the number of manufacturing establishments in the U.S. grew by more than 11% between Q1 2019 and Q2 2023. And industry growth drives the need for more workers with varied skill sets.
But there is a shortage of potential candidates applying for the positions being created by this growth. This labor shortage, particularly in the manufacturing and engineering sectors, has been a topic of conversation for years.
However, according to recent reports, many business leaders in these industries (over 65%) cited the “inability to attract and retain employees” as their primary challenge in the first quarter of 2024.
In addition, statistics from the U.S. Bureau of Labor revealed that around 750,000 jobs are currently unfilled in the manufacturing sector – even though U.S. unemployment is at historically low levels.
A joint report by The Manufacturing Institute and Deloitte has predicted that an estimated 2.1 million manufacturing jobs will remain unfilled in the U.S. by 2030. And these unfilled jobs are costing the economy $2.5 trillion, according to McKinsey estimates.
Overall, this paints a picture of an ongoing issue with the supply of new talent not meeting industry demand and that it is unlikely to do so for some time, especially as older generations retire. This, in turn, has a financial impact, as the limited workforce will stunt further growth.
Even with the increased adoption of automation and the demand for more varied skill requirements — spread between technical manufacturing, digital skills, and soft skills — the current labor crisis in manufacturing (in particular) is intensifying. With this in mind, we decided to do some of our own research. As a business that seeks to support our industrial customers with growth and maintenance challenges, we recognize the impact of this current situation on their day-to-day operations.
Our report: What we’ve looked at
We’ve gathered data that has enabled us to compare the number of engineering graduates in the U.S. with current advertised roles.
While not all jobs in this industry require an engineering degree, our research has revealed that this type of qualification is in high demand.
Credible figures on engineering graduates are also accessible and can be compared directly with advertised roles requiring this education level and type of expertise to give a more concrete comparison of the current situation.
We also examined the current workforce size, gender split, and state-by-state variations in supply and demand. Furthermore, we’ve identified average engineering salaries, compared them to the U.S. average, and pinpointed hotspot locations for top salaries.
Overall, our aspiration is that this report presents an informed and current view of the engineer recruitment challenge faced by businesses across the U.S while offering some of our expert thoughts on how we believe this situation could be eased in the coming decade.
The current engineering workforce in the U.S.
As a starting point, we looked into the current U.S. engineering workforce to help set the scene.
A recent workforce report estimated around 5.38 million people work in the engineering field across the U.S., and this has been rising by approximately 3.5% year-on-year. 3.5% year-on-year.
Software developers comprise the largest engineering workforce segment (nearly 9%), followed by civil engineers (6%).
| Size of Workforce | % of total | |
| Software developers | 426,806 | 8.84% |
| Miscellaneous engineers | 354,623 | 7.34% |
| Civil engineers | 293,115 | 6.07% |
| Mechanical engineers | 208,907 | 4.33% |
| Electrical engineers | 161,883 | 3.35% |
| Industrial engineers | 117,620 | 2.44% |
| Postsecondary engineering teachers | 108,135 | 2.24% |
| Architectural engineers | 108,566 | 2.23% |
| Aerospace engineers | 93,580 | 1.94% |
| Chemical engineers | 55,917 | 1.16% |
Currently, around 74% of the graduate workforce in this field is male, although the number of female employees (and graduates) has been steadily increasing. Still, women make up around 50% of the U.S. workforce, so this field is still quite behind in having a gender-balanced workforce.
The average age of the engineering workforce is 43, although the most common age of degreed employees in this field is 29. According to a report by The Manufacturing Institute Center for Manufacturing Research, in partnership with the Alfred P. Sloan Foundation, around one-quarter of the manufacturing workforce is over 55 years old. Overall, this reveals that this workforce is growing but also increasingly aging, and while female employee numbers are rising, there is still room for growth.
Fresh talent: Engineering graduates
So, we know the industry needs new talent. But how many people are entering the industry with a degree each year?
Overall graduate numbers
Well, according to figures from the Integrated Postsecondary Education Data System (IPEDS), approximately 141,000 students graduate with a bachelor’s degree in engineering each year across the U.S.
There are also approximately 50,000 master’s degrees and 12,000 doctorates awarded each year.
And there has been a strong 48% increase in the number of students gaining bachelor’s degrees in engineering since 2000.
Based on records, 1985-86 saw the biggest year-on-year increase in engineering graduates (approximately 10%), followed by 2019-20 (7.3%) and 2020-21 (7.0%).
Typically, though, the growth rate has been steadier with an approximately 6% annual increase in engineering graduates since the 1970s.
The gender split
Around 25% of engineering bachelor’s degree students in the U.S. are female currently. This percentage of female engineering students has been increasing steadily since the 1950s (when it was just 0.3%).
There has been a 37% increase in female engineering students since 2015, suggesting the industry drive for more female talent in STEM areas is having the desired effect, although there is still work to be done. Georgia Institute of Technology in Atlanta and Northeastern University in Boston have the highest percentage of female engineering students (34%).
| Total | Male % | Female % | |
| Purdue University-Main Campus | 3,402 | 74% | 26% |
| Texas A & M University-College Station | 3,363 | 74% | 26% |
| Georgia Institute of Technology-Main Campus | 3,430 | 66% | 34% |
| University of Michigan-Ann Arbor | 2,555 | 73% | 27% |
| Northeastern University | 2,656 | 66% | 34% |
Engineering specialisms
Aerospace engineering has been the fastest-growing major for graduates, with a nearly 103% increase in bachelor’s degrees awarded between 2002 and 2012. Civil engineering is also another growing area of specialization—the number of bachelor’s degree graduates with this major was up by nearly 71% between 2002 and 2012.
Mechanical engineering represents the biggest cohort of graduates, though—representing around 25% of all engineering-related bachelor’s degrees awarded. Electrical engineering is the second biggest cohort, with nearly 21% of engineering students specializing in this area.
Graduates by state
California awards the most engineering degrees — 11% of the U.S. total. This was followed by Texas and New York (both 7%).
On a more local level, Los Angeles County took the top spot (0.3% of the U.S. total), followed by Suffolk County in Massachusetts (0.2%). Several institutions offering engineering degrees in Los Angeles are likely to have influenced this figure. These include, but aren’t limited to, USC (University of Southern California), UCLA, The University of California, California Institute of Technology (Caltech), and California State Polytechnic University, Pomona (Cal Poly, Pomona).
| Top states – engineering degrees 2022 | % of total | ||
| 1 | California | 224,000 | 11% |
| 2 | Texas | 142,613 | 7% |
| 3 | New York | 141,368 | 7% |
| 4 | Florida | 111,638 | 6% |
| 5 | Pennsylvania | 84,229 | 4% |
| Top counties – engineering degrees 2022 | % of total | ||
| 1 | Los Angeles County, CA | 6,334 | 0.32% |
| 2 | Suffolk County, MA | 3,892 | 0.20% |
| 3 | Fulton County, GA | 3,449 | 0.17% |
| 4 | Tippecanoe County, IN | 3,404 | 0.17% |
| 5 | Brazos County, TX | 3,362 | 0.17% |
| 6 | Santa Clara County, CA | 3,016 | 0.15% |
| 7 | New York County, NY | 2,925 | 0.15% |
| 8 | San Diego County, CA | 2,912 | 0.15% |
| 9 | Middlesex County, MA | 2,878 | 0.14% |
| 10 | Maricopa County, AZ | 2,875 | 0.14% |
| Institutions with the most awarded degrees in engineering 2022 | Completions | % of total | |
| 1 | Georgia Institute of Technology | 3,430 | 1.84% |
| 2 | Purdue University | 3,404 | 1.82% |
| 3 | Texas A&M University | 3,362 | 1.80% |
| 4 | Northeastern University | 2,652 | 1.42% |
| 5 | University of Michigan-Ann Arbor | 2,557 | 1.37% |
| 6 | University of Illinois Urbana-Champaign | 2,541 | 1.36% |
| 7 | University of California-Berkeley | 2,451 | 1.31% |
| 8 | North Carolina State University at Raleigh | 2,302 | 1.23% |
| 9 | Ohio State University-Main Campus | 2,203 | 1.18% |
| 10 | Arizona State University Campus Immersion | 2,182 | 1.17% |
The demand for engineers: Advertised roles
So, we can see that graduate numbers are slowly increasing, and more female talent is coming through, but how does this compare with advertised roles?
Overall advertised roles
Well, there are currently more than 966,000 advertised engineering roles in the U.S. That’s approximately 13% of all the available advertised roles (8.7 million) right now – which is a high percentage for one specific sector. More than 9,100 roles are specifically advertised as new graduate hires, which is only about 0.95% of the total open positions listed for engineering overall. However, many employers don’t specifically reference ”graduate,” even though they’re open to new talent. With around 141,000 engineering graduates in the U.S. each year, this suggests that only around 15% of ”open” roles can be filled by new talent per year—leaving a massive 825,000 (85%) employee deficit. This doesn’t even account for people retiring.
Most sought-after sectors
According to Adzuna, the engineering disciplines with the most advertised roles right now are electrical, mechanical, and manufacturing.
| Role | Advertised jobs – August 2024 |
| Electrical engineer | 148,688 |
| Mechanical engineer | 84,683 |
| Manufacturing engineer | 76,400 |
Electrical engineering roles represent more than 15% of all open positions, while open mechanical and manufacturing engineer positions represent around 9% and 8%, respectively.
Incentivizing engineering talent: Average salaries
It’s clear that demand for engineers is high. But is there sufficient incentivization to enter this field and remain in it?
Overall advertised salaries
The average wage for those working in the engineering sector is currently over $131,000 per year. And reports estimate that wages have increased by approximately 8% in the last year alone. At around $103,000, advertised engineering role salaries are 72% higher (a difference of $43,000) than the average U.S. advertised salary ($approximately $60,000).
Advertised engineering graduate salaries (over $83,000) are nearly 39% higher than the U.S. average.
Overall, this could indicate that businesses are offering above-average salaries to try to attract new talent.
Highest paying roles
According to Adzuna, the engineering roles with the highest advertised salaries right now are highlighted in the following table:
| Highest paid | ||
| 1 | Healthcare systems engineer | $129,766 |
| 2 | Engineering project manager | $106,308 |
| 3 | Process engineer | $105,946 |
| 4 | Quality assurance engineer | $104,310 |
| 5 | Electrical engineer | $103,385 |
Highest paying locations
Southeastern San Mateo County, California, currently offers the highest engineering salaries at $283,000. This was followed by southeast Westchester County in New York at $269,000 and then southwest Santa Clara County in California at $265,000.
The average engineering salary in Santa Clara County’s Cupertino, Saratoga, and Los Gatos neighborhoods is 86% higher than the average salary for all other roles in this area.
| Highest paid U.S. locations for engineers | ||
| 1 | San Mateo County (Southeast) | $282,962 |
| 2 | Westchester County (Southeast) | $268,957 |
| 3 | Santa Clara County (Southwest) | $264,579 |
| 4 | NYC-Manhattan Community Districts 1 & 2 | $257,286 |
| 5 | NYC-Manhattan Community District 7 | $256,448 |
| 6 | Santa Clara County (Northwest) | $253,152 |
| 7 | Western Central PUMA, CT | $251,913 |
| 8 | NYC-Manhattan Community District 4 | $249,183 |
| 9 | Santa Clara County (Northeast) | $240,941 |
| 10 | San Mateo County (East Central) | $232,786 |
| Locations where the average engineering wage is a lot higher than other wages (% more than average) | ||
| 1 | Santa Clara County (Northwest)–Sunnyvale City | 87.0% |
| 2 | Santa Clara County (Northwest)–Santa Clara City | 86.3% |
| 3 | Santa Clara County (Southwest)–Cupertino, Saratoga Cities & Los Gatos Town | 86.2% |
| 4 | Oakland County (East Central)–Troy & Rochester | 86.2% |
| 5 | Loudoun County (East Central)–Ashburn & Dulles | 85.8% |
| 6 | Wayne County (Northwest) | 85.5% |
| 7 | Huntsville (North & Far West), Madison (East) & Triana Cities | 85.4% |
| 8 | Oakland County (Southwest) | 85.1% |
| 9 | Washington County (Central)–Hillsboro City | 84.5% |
| 10 | Snohomish County (South Central)–Bothell (North), Mill Creek Cities & Silver Firs | 84.2% |
The operator gap
Of course, it is important to note that not all engineering roles require degrees, and people with the technical skills required to take on operator roles, for example, are also in high demand.
Overall, according to data from Adzuna (supplied in August 2024), there were approximately 250,000 advertised process operator roles in the U.S. and a further 77,500 machine operator roles. These represented close to 4% of all the advertised roles in the U.S. right now (8.9 million).
| Role | Advertised jobs – August 2024 | Advertised salary – average |
| Process operator | 243,609 | $86,293 |
| Machine operator | 65,888 | $54,321 |
Operators are typically responsible for operating and monitoring machinery or equipment. These jobs may involve basic maintenance or focus more on the day-to-day use of equipment, but they are still considered skilled professionals, with specialized training often required.
It is worth noting that, as these roles don’t typically require a degree, average salaries are typically lower than in related professions. While the average advertised salary for an engineer (again, according to Adzuna in August 2024) were $103,000 per year, for operators, this was closer to $54,000 per year.
As with engineers, reports show there is a severe shortage of people willing to take on operator roles. Research by Deloitte indicates that the U.S. semiconductor industry alone could require around more than one million additional skilled workers by 2030 (which is expected to include technicians and operators), equating to more than 100,000 annually.
Operators often perform repetitive tasks, some of which could be automated by AI, robotics, or other technologies. While this might deter some from entering the profession, it’s important to note that these technologies are meant to enhance human capabilities, not replace them. This shift can make the job more appealing by reducing monotony and allowing operators to focus on more complex, rewarding tasks.
Retraining as technicians
Industry leaders are encouraging those with the skills to take on operator positions and explore or retrain as technicians, citing them as ”the future” of the manufacturing sector.
Skills for technicians include logic, programming, critical thinking, and understanding how to manage AI technologies to get the best possible output. Technicians are expected to fix broken automated machines, and they typically understand production lines, system processes, and equipment management.
Retraining in this area is expected to offer greater long-term job security as well as more attractive development opportunities and salaries.
RS case study: Assisting a client through labor shortages with comprehensive solutions
Our client, the largest service and solutions dealer for a globally renowned construction and mining equipment manufacturer, has faced significant challenges due to labor shortages, space constraints, and unprecedented growth. Consequently, they sought a partner who could reliably assist with the assembly of cables and control boxes while minimizing the need for multiple new vendors.
The company faced two main concerns: limited technical resources and time constraints, which led them to create designs reactively, often using parts from platforms like non-franchised marketplaces, raising concerns about counterfeit products. Additionally, their in-house inventory management system, based on the honor system, faced discrepancies from products not being readily available.
In response, RS supplied design services to simplify their designs and helped them source reliable products from trusted manufacturing partners to ensure counterfeit control. Our team supported their assemblies by assisting with a control box used in multiple applications, relieving their in-house labor burden. We collaborated with our network to provide quotes for 12 distinct cables used in the same application.
The outcome was a successful partnership with technical experts, ensuring reliable product sourcing, avoiding long lead times, and mitigating counterfeit risks. By redesigning the product to reduce reliance on tribal knowledge and reducing their vendor base with a single-source solution, they simplified the order process and streamlined the assembly process. Most importantly, they could redeploy their labor resources to more effectively meet growing demand.
Report conclusion
While there are more engineering graduates in the U.S. than ever before, and more female graduates, too, there still isn’t enough new talent coming through to meet industry demand. This, in turn, could stunt the ongoing growth of various sectors, such as manufacturing.
There is a significant deficit in ”supply” of engineers, versus open roles (based on current advertised jobs), and even the higher advertised salaries are not proving to be enough to attract the required volume of new employees.
In some locations and role sectors, demand and salaries are especially high, and engineers here are more likely to find themselves in a strong negotiating position if they seek out a new role. However, moving elsewhere only involves reallocating talent, not fixing the deficit.
Overall, businesses seeking engineers are likely to find it challenging to hire the skilled employees they need now, and this could remain an issue for several years to come.
Even those seeking operators without degrees may find this challenging as lower salaries make this a less compelling option, as does the more repetitive nature of the role. Demonstrating the potential to retrain as technicians and gain new skills that help future-proof these positions is more essential than ever to retain workers, as well as attract new employees.
Encouraging more people across the U.S. to retrain in engineering and technician roles could greatly benefit the industry, but this will take time. Driving more young people (for example, at high school age) to undertake engineering and other STEM degrees is recommended ongoing, although this is a longer-term strategy that is unlikely to resolve the current “supply vs. demand” challenge.
Jim Davis, Director of Technical Solutions at RS, commented:
Our clients in the industrial manufacturing, automation, and electronics sectors are reporting resource shortages to us in two key places.
The first is general staff shortages, with the impact of limited employee resources being that some customers are struggling to complete all their projects within expected timeframes. The second is skill shortages. Our customers are reporting that they simply don’t have the skillsets required to complete certain projects.
While there is no overnight solution for these challenges, we’ve encouraged our clients to seek out opportunities to advance their manufacturing & engineering processes to help ease their resourcing pressure points. The growth of digital factories creates potential to both improve processes and to broaden the range of skills required from the industrial sector workforce. Engineers with skills such as electrical control, software development, networking, and mechanical design are in especially high demand.
Sources and methodology
Data sourced from:
- https://www.ed.gov/data
- https://nces.ed.gov/ipeds
- https://nces.ed.gov/ipeds/search?query=engineering&query2=engineering&resultType=all&page=1&sortBy=relevance
- https://ncses.nsf.gov/pubs/nsb202332#:~:text=U.S.%20higher%20education%20institutions%20awarded,(S%26E)%20fields%20in%202021.
- https://ncsesdata.nsf.gov/explorer/datatables?topic=Fields%20of%20Study&variable=Academic%20Discipline-Science%20and%20Engineering%20Fields&matchedVariable=Academic%20Discipline-Science%20and%20Engineering%20Fields&page=1
- https://datausa.io/profile/cip/engineering
- https://www.bls.gov/ooh/field-of-degree/engineering/engineering-field-of-degree.htm
- https://www.nsf.gov/nsb/sei/edTool/data/engineering-01.html
- https://www.adzuna.com/search#stats (August 2024)
- https://www.qualitymag.com/articles/97986-bridging-the-gender-gap-solving-the-skilled-labor-shortage
- https://www2.deloitte.com/content/dam/Deloitte/us/Documents/technology-media-telecommunications/us-tmt-global-semiconductor-shortage-pov-v3.pdf
Please note: Aside from Adzuna, which is ‘live’ data (collected on 14th August 2024), the majority of the insight featured in this report covers until the end of the 22/23 education year.
In any instances where data is older, this has been specifically cited in the supporting tables or commentary.
