Recruiting Chemical Engineers in Canada, the United

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Recruiting Chemical Engineers in Canada, the United States, the
United Kingdom and Ireland
Demand for Chemical Engineers in Calgary
Chemical Engineers have been identified as a high-demand occupation in Calgary, based on the
Calgary Labour Demand Forecast 2012.1 In 2010, there were nearly 1,700 chemical engineers in
the Calgary labour force. Between 2010 and 2020, demand for chemical engineers is expected
to increase to a total labour demand for over 2,200 workers in 2020. Calgary employers will
likely face difficulties recruiting qualified workers for both newly-created jobs and existing
positions that become vacant. During the global economic slowdown of 2007-2009, 86 per cent
of chemical engineer employers in Calgary recruited chemical engineers for vacant positions
and nearly three quarters of those who recruited (73 per cent) reported experiencing
difficulties with the hiring process.2 The combination of growing demand and limited supply
are likely to result in shortages of chemical engineers in Calgary over the next decade.
In order to meet the growing demand for chemical engineers, Calgary employers may need to
access labour markets outside of Calgary, including international labour markets, to meet a
portion of their hiring needs. To facilitate targeted recruiting efforts, Calgary Economic
Development (CED) has created this guide to identify the best cities and regions for recruiting
workers in Canada, the United States, the United Kingdom and Ireland. Top cities and regions
for recruiting are recommended based on the size of the chemical engineering labour force and
the likelihood that workers will migrate out of the area. 3
Top Locations for Recruiting in Canada
Canada’s two largest cities, Toronto and Montréal, also have the largest chemical engineering
labour force, each of which exceeds 1,000 workers. Average hourly pay for chemical engineers
in Alberta is higher than that of all of the top-recommended cities in Canada, at $43.32 per hour
(2011). By comparison, chemical engineers have average hourly pay of $40.33 in Halifax,
$38.64 per hour in Vancouver and $32.66 per hour in Toronto.4
1
See Calgary Labour Demand Forecast 2012
See Alberta Wage and Salary Survey 2009
3
An out-migration probability index of workers is estimated based on a set of factors that are indicators of future
migration. Factors include historical migration patterns, demographics of the occupational labour force, local
economic conditions, median income, and the presence of foreign workers in the labour force.
4
Data is unavailable on average hourly pay for chemical engineers in Montreal.
2
1
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Younger workers have a higher probability of making an inter-provincial move, and Montréal,
with 40 per cent of its chemical engineers under age 35, has a relatively young labour force.
Workers who are immigrants or who have made an inter-provincial move in the past also have
a higher probability of future migration. About 15 per cent of chemical engineers in Montréal
immigrated to Canada between 2001 and 2006, and about 18 per cent of the chemical engineer
labour force either immigrated or made an inter-provincial move between 2001 and 2006.
St. John’s NL has the largest percentage of workers under age 35 (64 per cent) among the toprecommended cities in Canada, however, the city also has a very small chemical engineering
labour force of about 50 workers.
Table 1 Recruiting Indicators for Chemical Engineers in Canada, by CMA
Rank
1
2
3
4
5
6
Census Metro
Area
Employment
5
(2010)
Average
Wage
Per Hour
Emigration
Probability
Index*
Percent of Occupational Labour Force
International or
NonUnder
Immigrants
Inter-Provincial
Permanent
Age 35
to Canada
Migrants
Residents
(2010)
2001-2006
6
(5 Year Period)
(2006)
30%
14%
12%
1%
40%
18%
15%
1%
40%
17%
7%
2%
40%
19%
3%
0%
40%
16%
0%
0%
42%
0%
0%
0%
Toronto
2,380
32.66
103
Montréal
1,221
n.a.
103
Vancouver
606
38.64
103
Edmonton
563
43.32
103
Halifax
204
40.33
104
Québec
149
n.a.
104
KitchenerCambridge7
Waterloo
153
32.66
103
37%
30%
10%
7%
8
St. John's, NL
51
n.a.
108
64%
18%
20%
0%
9
Ottawa
104
32.66
103
30%
12%
5%
0%
10
Hamilton
98
32.66
103
33%
11%
0%
0%
Calgary
1,678
43.32
103
36%
31%
19%
2%
*See footnote 3 for additional information about the Emigration Probability Index. Note: Data is measured for Census
Metropolitan Areas unless otherwise noted. Figures for Calgary may differ from information presented earlier in this report
describing labour demand for the Calgary Economic Region. Sources: Labour Force Survey, 2006 Census of Canada, RDA Global,
Labour Market Information - HRSDC WorkingInCanada.gc.ca
5
Figures for employment in Calgary are for the Calgary Economic Region. Figures for other cities are for the census
metropolitan area (CMA)
6
International and inter-provincial migration statistics are analyzed based on data collected in the 2001 and 2006
Census. The data required to analyze this migration pattern for the most recent 5 year period is not available at
the time of this analysis.
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Table 2 Wages for Chemical Engineers in Canada, by CMA
Recent Wage Range (CAD)
Census Metro Area
Provincial Annual
7
Wages or Salary, 2005
Average
Reference
High Wage
Median
Average
Wage
Year
Toronto
18.63
32.66
49.90
2010*
76,986
80,804
Montréal
n.a.
n.a.
n.a.
68,491
73,093
Vancouver
21.92
38.64
57.69
2011*
73,503
81,055
Edmonton
39.86
43.32
52.50
2011
91,946
110,403
Halifax
28.80
40.33
55.95
2010
n.a.
n.a.
Québec
n.a.
n.a.
n.a.
68,491
73,093
Kitchener-Cambridge-Waterloo
18.63
32.66
49.90
2010*
76,986
80,804
St. John's, NL
n.a.
n.a.
n.a.
n.a.
n.a.
Ottawa
18.63
32.66
49.90
2010*
76,986
80,804
Hamilton
18.63
32.66
49.90
2010*
76,986
80,804
Calgary
39.86
43.32
52.50
2011
101,597
108,367
Note: Data is measured for Census Metropolitan Areas unless otherwise noted. *Wage data reflects provincial average.
Sources: 2006 Census, Labour Market Information - HRSDC WorkingInCanada.gc.ca
Low Wage
Top Locations for Recruiting in the United States
In the United States, the occupation most closely aligned with NOC 2134 Chemical Engineers is:
SOC 17-2041: Chemical Engineers.
There are about 29,000 chemical engineers in the US labour force but only Houston and Boston
have a chemical engineer labour force that exceeds 1,000 workers (about 2,700 in Houston and
1,100 in Boston). These two cities are recommended for recruiting due to the size of the labour
force and the fact that each city has a relatively young labour force of chemical engineers and a
high percentage of workers who are non-US citizens (13 per cent in Houston and 15 per cent in
Boston). The mean annual salary for chemical engineers in Houston was USD $110,140 in
Houston in 2010 which is similar to the mean base pay in Calgary at CAD $108,400 in 2009. The
average annual salary was slightly lower in Boston at USD $90,400 in 2010.
Smaller markets of interest include Chicago (780 workers), Los Angeles (L.A., 560 workers),
Denver (310 workers), and Cincinnati (520 workers). Of these markets, Chicago is the largest
with the lowest mean annual salary at about USD $88,200, however, historically chemical
engineers in Chicago have shown a lower than average rate of out-migration. Chicago and L.A.
had high unemployment rates in September-November 2011 at 9.6 per cent and 10.7 per cent
respectively.
7
Calgary median annual salary is calculated based on average hours worked per week and median hourly wage
rate reported in the 2009 Alberta Wage and Salary Survey. The average annual salary is the actual figure from the
survey. Annual figures for other cities in Table 2 are from HRSDC.
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Non-US citizens have a higher than average probability of making a long-distance move and
they comprise a relatively large percentage (17 per cent) of the L.A. chemical engineering
labour force. Chemical engineers in Cincinnati and Denver have high out-migration probability
index scores at 118 and 120 respectively (US average score for all chemical engineers is 115).
Chemical engineers in those locations are relatively young and mobile, compared to other
recommended US cities.
Average salaries for chemical engineers in Boston, Chicago, Dallas, Cincinnati, Baton Rouge, and
Washington DC are lower than that of Calgary. Workers recruited from the recommended US
cities could experience pay increases of $10,000 to $20,000 or more (non-exchange rate
adjusted) by relocating to Calgary.
Table 3 Out-Migration Indicators of Chemical Engineers in Top 10 US Cities, 2010
Pct. of
Pct. Of
OutWorkers
Mean
Workers
Migration
Unemployment
Rank
Metro Area
who are
Age
Under Age
Probability
Rate
Non-US
35
Index*
Citizens
1
Houston-Brazoria, TX
2,710
13%
43
30%
117
7.6
2
Boston, MA-NH
1,090
15%
40
43%
116
5.7
3
Chicago, IL
780
7%
43
28%
114
9.6
4
Dallas-Fort Worth, TX
740
5%
46
22%
114
7.4
5
Cincinnati-Hamilton, OH/KY/IN
520
7%
38
47%
118
7.8
6
Los Angeles-Long Beach, CA
560
17%
45
26%
116
10.7
7
Wilmington, DE/NJ/MD
570
7%
47
23%
113
9.9
8
Baton Rouge, LA
530
6%
44
28%
113
6.6
9
Washington, DC/MD/VA
500
24%
45
27%
114
5.4
10
Denver-Boulder, CO
310
8%
43
32%
120
7.9
United States
28,720
9%
42
30%
115
8.2
*The Out-Migration Probability Index gives an indication of the number of workers in the target occupation in each metropolitan
area that have made an interregional move in the past 5 years. The index also reflects factors that may affect worker migration,
such as historical migration patterns, demographics of the occupational labour force, local economic conditions, median income,
and the presence of foreign workers in the labour force. US Average Out-Migration Probability = 100 (for all US workers in all
occupations).
Number
of
Workers
4
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Table 4 Wages of Chemical Engineers in Top Ranked Cities for Recruiting in the United States, 2010
Mean
Mean
Median Salary by Quartile (USD)
Hourly
Annual
Metropolitan Statistical Area
Workers
Lower
Lower
Upper
Upper
Wage**
Salary**
Median
10%
25%
25%
10%
(USD)
(USD)
Houston-Brazoria, TX
2,710
52.95
110,140
71,090
86,870 103,930
126,210 158,220
Boston, MA-NH
1,090
43.46
90,410
61,060
72,530
87,600
107,210 128,130
Chicago, IL
780
42.40
88,180
62,050
71,280
82,460
102,500 129,710
Dallas-Fort Worth, TX
740
47.99
99,820
62,870
71,860
94,890
117,550 150,410
Cincinnati-Hamilton, OH/KY/IN
520
44.85
93,280
47,360
61,210
82,850
107,640 142,120
Los Angeles-Long Beach, CA
560
54.33
113,000
58,520
83,230 106,710
152,890
n.a.
Wilmington, DE/NJ/MD
570
57.23
119,030
79,740
97,750 122,760
142,450 163,660
Baton Rouge, LA
530
47.28
98,330
66,180
80,410
97,350
117,120 136,550
Washington, DC/MD/VA
500
46.56
96,850
62,050
73,620
99,100
115,740 133,260
Denver-Boulder, CO
310
54.48
113,320
67,370
81,270 102,740
132,930 148,350
United States
28,720
45.48
94,590
56,520
70,940
90,300
112,630 139,670
Calgary (in $ CAD)
1,678
$43.32
$108,367
n.a.
**Source for Calgary wage and salary figures is the 2009 Alberta Wage and Salary Survey. Results are updated every 2 years.
At the time of this analysis 2011 figures were not yet published. US Data Sources: Bureau of Labour Statistics Occupational
Employment Database, American Community Survey, US Census 2010. Analysis by RDA Global.
Recruiting in the United Kingdom and Ireland
In the United Kingdom and Ireland, the occupation most closely related to chemical engineers
is: UK/IE SOC 2125 Chemical Engineers.
In 2010, there were approximately 23,000 chemical engineers in the UK labour force.
According to the Annual Survey of Hours and Earnings (UK) the mean annual pay for chemical
engineers in the UK was £49, 423 in 2011, or about CAD $78,940.8 Earnings in both the UK and
Ireland are lower than the average base pay for chemical engineers in Calgary at CAD $108,367
in 2009. A worker relocating from the UK to Calgary could potentially experience a 37 per cent
increase in earnings (adjusted for exchange rate).
Based on analysis of demographic data available through the Quarterly British Labour Force
Survey and the Central Statistics Office of Ireland, chemical engineers in the UK and Ireland
both have a higher-than-average probability of out-migration from the country, compared to
other occupations. Foreign workers represent a growing share of people migrating out of the
UK; as of 2010, non-British citizens represented 65 per cent of long-term migrants leaving the
UK, up from 43 per cent in 2005.9 About 29 per cent of chemical engineers in UK are non-UK
citizens. Younger workers are also more likely to make a long-distance move and about 34 per
cent of chemical engineers in the UK are under age 35.
8
Exchange rate of $1.5972 CAD to £1 GBP.
Source: United Kingdom International Passenger Survey (IPS); Estimates of long-term international migration,
rolling annual data to Q4 2010.
9
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In 2010, there were approximately 1,900 chemical engineers in the Irish labour force. Official
data on wages of chemical engineers in Ireland is not available from government sources but
salary figures presented in Table 6 are sourced from Irish-based global professional recruitment
consultancy, Morgan McKinley’s 2011 Salary Guide for Irish occupations.10 According to the
salary guide, Irish chemical engineers are paid between €34,000 and €67,000 per year
(approximately CAD $46,000 to $91,000).
Due to data suppression, there no statistics available on the size or characteristics of the
chemical engineer labour force in regions of the UK or Ireland, but in discussions with the
Engineering Council (UK) and Engineers Ireland11 in August-September 2011, officials indicated
that a national recruiting approach will be effective for chemical engineers.
Foreign Credential Recognition
When recruiting chemical engineers in the UK and Ireland, Alberta employers are advised to
consult the Association of Professional Engineers, Geologists, and Geophysicists of Alberta
(APEGGA) to determine which workers are most likely to meet the requirements for licensure in
Alberta.
Information on foreign credential recognition for chemical engineers in the UK and Ireland is
available from the Alberta Department of Human Services at:
http://www.albertacanada.com/immigration/working/occupations.aspx
Table 5 Recruiting Indicators for Chemical Engineers - UK and Ireland, 2010
Country
Number of
Workers
Percentage of
Workers who are
Non-National
Citizens
12
Percentage of
Workers who
are Non-EU
Citizens
Median
Age*
Pct. Of
Workers
Under
Age 35
OutMigration
Probability
Index**
United Kingdom
23,000
29%
9%
39
34%
111
Ireland
1,900
n.a.
n.a.
37
29%
106
*British data source reports median age figures, while Irish and US data sources report mean age figures. ** Out-Migration
index scores for the UK are not directly comparable with those of cities in the US or Ireland. Sources: Quarterly British Labour
Force Survey, Annual Survey of Hours and Earnings (UK, 2010), Central Statistics Office Ireland (2010), Analysis by RDA Global.
10
The Salary Guide is available online at: www.slideshare.net/toneill123/morgan-mckinleys-2011-salary-guide
The Engineering Council (UK) and Engineers Ireland are national regulatory bodies for engineers in the UK and
Ireland.
12
Official sub-national employment and wage data could not be identified for this occupation.
11
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Table 6 Annual Incomes for Chemical Engineers - UK 2010 and Ireland 2011
Country
GBP/Euro
$ CAD
UK National
£49, 423
$78,940
Ireland Low Salary
€34,000
$ 46,000
Ireland High Salary
€67,000
$ 91,000
Calgary
n.a.
$108,000
Sources: Annual Survey of Hours and Earnings (UK, 2010); Morgan McKinley’s 2011 Salary Guide:
www.slideshare.net/toneill123/morgan-mckinleys-2011-salary-guide; 2009 Alberta Wage and Salary Survey, Calgary Economic
Region. Average month-end annual exchange rates: €1=$1.3652 CAD and £1=$1.59717 CAD.
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