New Jersey’s Life Sciences Industry Cluster Prepared by: New Jersey Department of Labor & Workforce Development Office of Research & Information Bureau of Labor Market Information Spring 2017 THE GOAL OF THIS REPORT IS TO GET AN “IDEA” OF WHAT LIFE SCIENCES MEANS TO NEW JERSEY Identify the types of industries and establishments that make up the life sciences industry cluster based on a standard industry classification system. Describe any similarities and differences among its components with regard to such variables as employment, wage, occupation type, education, and demographic characteristics. Examine any present distinctions within the cluster and its components that give New Jersey a competitive advantage compared to neighboring states, regions or the nation, or show areas where New Jersey could improve to add to the state’s economy. Analyze the current state of the life sciences industry cluster and provide an outlook for employment into the future. LIFE SCIENCES INDUSTRY CLUSTER: OVERVIEW NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MAJOR INDUSTRY COMPONENTS New Jersey’s Life Sciences employment in 2015 was identified within three primary components: pharmaceuticals (41.0%), biotechnology-R&D (38.3%) and medical device manufacturing (20.7%). The breakdown of the major segments are: • • • Pharmaceuticals Pharmaceutical and medicine manufacturing Soap, cleaning compound, and toiletry manufacturing Druggists' goods merchant wholesalers Consists of services related establishments primarily engaged in scientific research, development, analytic and/or diagnostics. • • Establishments that are primarily engaged in manufacturing or distribution of drug related products. • • Medical Devices Electronic instrument manufacturing Medical equipment and supplies manufacturing Biotechnology (R&D) Scientific research and development services Medical and diagnostic laboratories Establishments primarily engaged in manufacturing medical equipment and supplies. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MAJOR NEW JERSEY EMPLOYERS Some of New Jersey’s well-known employers in this cluster include: Pharmaceuticals • Actavis, Inc. • Bayer HealthCare Pharmaceutical • Bristol-Myers Squibb Co. • Daiichi Sankyo • Ethicon, Inc. • Johnson & Johnson • Merck & Co. Inc. • Novartis Pharmaceuticals • Pfizer, Inc. • Sanofi, U.S. • Teva Pharmaceuticals USA Biotechnology (R&D) • • • • • • • • • • • • • Celerion, Inc. Chugai Pharma USA Collagen Matrix, Inc. Covance, Inc. ImClone System Immunomedics, Inc. Novo Nordisk, Inc. PAREXEL International Progenitor Cell Therapy PTC Therapeutics, Inc. Quest Diagnostics Sandoz, Inc. Siemens Hearing Instruments Medical Devices • • • • • • • • • • • • Abbott Laboratories Becton Dickinson & Co. C. R. Bard, Inc. Honeywell International, Inc. Integra Life Sciences Micro Corp. Ortho McNeil Pharma Oticon, Inc. Roche Molecular Systems, Inc. Safilo USA, Inc. Sivantos, Inc. Stryker Orthopaedics Source: 2015 InfoUSA NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER OVERALL STATE IMPACT The Life Sciences Cluster has an enormous impact on providing high quality jobs and adding significant value to the State’s economic activities. Recent New Jersey highlights included: • Employment Total: averaged 116,700 or 3.5 percent of all private sector workers in the state for 2015. Nationally, the proportion was just 1.9 percent. • Well-paying Jobs: Paid over $16.9 billion in 2015 annual payrolls; 8.2 percent of the state’s total wages. • Establishments total: over 3,100 in 2015. Over a ten year period (2010-2015) – even with numerous industry related reorganizations – New Jersey’s drug & pharmaceutical component still grew (by +8.2%). Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER ALL PRIVATE SECTOR VS. INDUSTRY CLUSTER EMPLOYMENT Employment Index Year 2005 = 100% 105 • After increasing slightly from 2005 to 2007 (+2.4%), the NJ life sciences industry experienced a steady decline from 2007 to 2013 (-13.7%), flattened out from 2013 to 2014 (+0.1%), increased from 2014 to 2015 (+1.2%), and is currently below the 2005 employment level (-10.0%). • Total statewide private sector employment has led life sciences employment from 2010 to 2015 and is currently above the 2005 employment level by 0.3 percent. 100 95 90 85 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Life Sciences Total NJ Private Employment Gray area denotes U.S. economic recession as defined by the National Bureau of Economic Research (NBER) Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2005 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER EMPLOYMENT SIZE, GROWTH, SALARY & LOCATION QUOTIENT Druggists’ Goods Merchant Wholesalers Employment Growth 2010 - 2015 8,000 Medical Laboratories 6,000 4,000 2,000 0 R&D in Biotechnology -2,000 Medicinal & Botanical Mfg. -4,000 Dental Laboratories -6,000 -8,000 -10,000 Pharmaceutical Preparation Mfg. -12,000 -14,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Annual Average Wage 2015 The above bubble graph has four elements: 1. Total 2015 employment - represented by the size of the bubble. 2. 2010-2015 employment growth- shown on the Y-axis, or vertical position. 3. 2015 annual average wages - shown on the X-axis, or horizontal position. 4. Location quotient - indicated by the color of the bubble. The location quotient compares the concentration of the industry subsectors in the state to those of the nation. Industries with a location quotient above 1 are known as “basic industries” which (in theory) export a good or service from the state and in return, bring in wealth. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010-2015 Annual Averages LIFE SCIENCES INDUSTRY CLUSTER: EMPLOYMENT ANALYSIS NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER 5-YEAR EMPLOYMENT TREND Employment Trend 2010 - 2015 140,000 Annual Average Employment 122,730 121,660 120,000 26,420 26,120 100,000 116,550 115,050 115,180 24,840 24,250 23,670 24,160 41,800 40,780 39,710 44,690 116,700 80,000 42,550 43,410 60,000 40,000 53,760 20,000 2010 Pharmaceuticals 52,130 49,910 50,020 2011 2012 2013 Biotechnology Medical Device 51,800 47,850 2014 Industry Cluster 2015 • With an average of 116,700 workers employed in this NJ cluster in 2015, the employment over the 5-year period experienced a decline of 4.9 percent. • The pharmaceutical component experienced the largest total percent loss over the 5-year period (-11.0%). Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER SUB-SECTOR EMPLOYMENT In 2015, the 116,700 jobs within this New Jersey cluster were concentrated in: Pharmaceuticals Pharmaceutical & Medicine Mfg. Druggists' Goods Merchant Wholesalers Soap, Cleaning Compound, & Toiletry Mfg. Biotechnology (R&D) 46.7% Scientific Research & Development Services Medical Devices 68.2% Electronic Instrument Mfg. 50.9% 34.5% Medical & Diagnostic Laboratories 31.8% Medical Equipment & Supplies Mfg. 49.1% 18.8% • 47,850 jobs • The pharmaceuticals component accounted for 41.0 percent of the life sciences industry cluster employment. • 44,690 jobs • Scientific research and development services accounted for more than 30,400 employment. • 24,160 jobs • Medical devices is the smallest of the three components and makes up 20.7 percent of the life sciences industry. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PHARMACEUTICALS INDUSTRY TOP EMPLOYMENT, 2015 Pharmaceuticals Industry Druggists' Goods Merchant Wholesalers 16,510 Pharmaceutical Preparation Manufacturing 15,240 Toilet Preparation Manufacturing 6,460 Soap & Other Detergent Manufacturing 1,150 0 5,000 10,000 15,000 2015 Employment Due to disclosure issues, medicinal and botanical mfg., surface active agent mfg., other biological product mfg., in-vitro diagnostic substance mfg., and polish and sanitation good manufacturing are not included in the chart above. • Made up 41.0 percent of the life sciences industry cluster’s employment in 2015. • Pharmaceutical & medicine manufacturing (-31.8%) and soap, cleaning compound, and toiletry manufacturing (-2.5%) both experienced a decline from 2010 to 2015 while druggists’ 20,000 goods merchant wholesalers experienced significant growth (+40.5%). Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER BIOTECHNOLOGY INDUSTRY TOP EMPLOYMENT, 2015 Biotechnology R & D In Physical, Engineering & Life Sciences 15,310 Research & Development In Biotechnology 13,800 Medical Laboratories 10,940 Diagnostic Imaging Centers • Accounted for 38.3 percent of life sciences industry cluster’s employment in 2015. • Scientific R&D industry service sectors grew (+1.7%) over the 5-year period from 2010 to 2015. 3,290 Social Science/Humanities Research 1,350 0 4,000 8,000 12,000 2015 Employment 16,000 • Medical and diagnostic laboratories experienced significant growth over the same period (+12.9%). Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MEDICAL DEVICES INDUSTRY TOP EMPLOYMENT, 2015 Medical Devices Surgical Appliance & Supplies Mfg. • Accounted for 20.7 percent of the life sciences industry cluster’s employment in 2015. 6,670 Surgical & Medical Instrument Mfg. 2,850 Electromedical Apparatus Mfg. 1,840 Electricity & Signal Testing Instrument Mfg. 1,350 Dental Laboratories 920 Industrial Process Variable Instruments 870 Analytical Laboratory Instruments 700 Automatic Environmental Control Mfg. 270 Irradiation Apparatus Mfg. 80 Fluid Meters & Counting Devices 70 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2015 Employment Due to disclosure issues, search, detection & navigation instruments, other measuring & controlling devices, dental equipment & supplies mfg., and ophthalmic goods mfg. are not included in the chart above. • Electronic instrument manufacturing (-13.5%) and medical equipment & supplies manufacturing (-2.8%) both experienced employment loss from 2010 to 2015. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages LIFE SCIENCES INDUSTRY CLUSTER: ESTABLISHMENT ANALYSIS NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER 5-YEAR ESTABLISHMENT TREND Establishment Trend 2010 - 2015 Annual Average Establishments 3,500 3,150 3,130 3,040 3,040 3,110 3,180 3,000 690 700 1,350 1,390 1,430 950 980 1,030 1,050 2012 2013 780 760 730 700 1,390 1,400 1,370 970 970 2011 2,500 • Establishments in this cluster totaled 3,180 in 2015 after experiencing a slight growth (1.0%) from 2010 – 2015. 2,000 1,500 1,000 500 0 2010 Pharmaceuticals Biotechnology Medical Device 2014 2015 • Pharmaceuticals has seen an upward trend from 2010 to 2015, adding an additional 80 establishments. Industry Cluster Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER SUB-SECTOR ESTABLISHMENTS In 2015, New Jersey had 3,180 establishments in this cluster engaged in: Pharmaceuticals Druggists' Goods Merchant Wholesalers Pharmaceutical & Medicine Mfg. Soap, Cleaning Compound, & Toiletry Mfg. • • Biotechnology (R&D) 59.0% Scientific Research & Development Services 52.4% Medical Devices Medical Equipment & Supplies Mfg. 55.7% 24.8% Medical & Diagnostic Laboratories 47.6% Electronic Instrument Mfg. 44.3% 16.2% 1,050 establishments The pharmaceutical component accounts for 1/3 of all life sciences industry establishments. • • 1,430 establishments R&D related sub-sectors accounted for 45.0% of all life sciences establishments. • • 700 establishments The medical devices component has the least establishments of all three life sciences industry components. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PHARMACEUTICALS INDUSTRY TOP ESTABLISHMENTS, 2015 Pharmaceuticals Industry Druggists' Goods Merchant Wholesalers • Accounted for 33.0 percent of the life sciences industry cluster’s establishments in 2015. 620 Pharmaceutical Preparation Mfg. 190 Toilet Preparation Mfg. 110 Soap And Other Detergent Mfg. 40 0 200 400 600 2015 Establishments Due to disclosure issues, medicinal and botanical mfg., surface active agent mfg., other biological product mfg., in-vitro diagnostic substance mfg., and polish and sanitation good manufacturing are not included in the chart above. 800 • Establishments in the soap, cleaning compound, and toiletry manufacturing industries (-19.0%) declined from 2010 to 2015, while pharmaceutical & medicine manufacturing (+4.0%) and druggists’ goods merchant wholesalers (+21.6%) realized growth. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER BIOTECHNOLOGY INDUSTRY TOP ESTABLISHMENTS, 2015 Biotechnology (R&D) Medical Laboratories • Made up 45.0 percent of all establishments in the life sciences industry cluster in 2015 with 1,430 establishments. 460 R & D In Physical, Engineering & Life Sciences 370 Research & Development In Biotechnology 290 Diagnostic Imaging Centers 220 Social Science/Humanities Research 90 0 200 400 2015 Establishments 600 • Scientific R&D industry service sectors (+4.2%) and medical diagnostic laboratories (+1.5%) both experienced growth from 2010 to 2015. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MEDICAL DEVICES INDUSTRY TOP ESTABLISHMENTS, 2015 Medical Devices Dental Laboratories • Represented 22.0 percent of the life sciences industry cluster’s establishments in 2015 (700). 160 Surgical Appliance & Supplies Mfg. 100 Surgical And Medical Instrument Mfg. 80 Industrial Process Variable Instruments 60 Electricity & Signal Testing Instrument Mfg. 50 Electromedical Apparatus Mfg. 50 Analytical Laboratory Instruments 30 Automatic Environmental Control Mfg. 20 Irradiation Apparatus Mfg. 10 Fluid Meters And Counting Devices 10 0 20 40 60 80 100 120 140 160 180 2015 Establishments Due to disclosure issues, search, detection & navigation instruments, other measuring & controlling devices, dental equipment & supplies mfg., and ophthalmic goods mfg. are not included in the chart above. • Electronic instrument manufacturing (-6.1%) and medical equipment and supplies manufacturing (-13.3%) both declined from 2010 to 2015. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages LIFE SCIENCES INDUSTRY CLUSTER: ANNUAL AVERAGE WAGE ANALYSIS NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER ALL PRIVATE SECTOR VS. LIFE SCIENCES ANNUAL AVERAGE WAGE $160,000 $137,290 $130,410 $126,790 $114,760 $111,480 $107,550 $99,070 $92,070 $80,000 $104,310 $100,000 $119,430 $120,000 $51,380 $53,590 $54,930 $54,540 $55,740 $56,890 $58,090 $59,030 $60,150 $61,980 $20,000 $49,110 $60,000 $40,000 $144,410 $140,000 • Wages in the life sciences cluster have averaged 209.2% of the statewide annual average wage since 2005. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $0 Life Sciences • Annual average wages for the cluster have risen +56.9% over the ten year period from 2005 to 2015. All Industries Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2005 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER 5-YEAR AVERAGE ANNUAL WAGES TREND 250,000 0 Industry Sectors $55,740 $61,980 $88,270 $112,940 $89,420 $102,220 $67,640 $65,640 $208,620 $129,780 50,000 $132,810 $172,760 100,000 $80,350 $87,630 150,000 $143,190 $148,880 Wages 200,000 2010 2015 • This cluster’s average annual wage was $144,410 in 2015, which was 133.0 percent higher than the state’s total private sector’s average annual wage of $61,980. • All three of this cluster’s components had 2015 wages that were significantly higher than the state’s total average annual wage. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PHARMACEUTICALS INDUSTRY TOP ANNUAL AVERAGE WAGE, 2015 Pharmaceuticals Industry Druggists' Goods Merchant Wholesalers $172,760 Pharmaceutical Preparation Mfg. • Annual average wages increased $15,460 (or +11.9%), from $130,160 in 2010 to $145,620 in 2015. $146,830 Toilet Preparation Mfg. $83,740 Soap & Other Detergent Mfg. $74,730 $0 $50,000 $100,000 $150,000 $200,000 2015 Annual Average Wage Due to disclosure issues, medicinal and botanical mfg., surface active agent mfg., other biological product mfg., in-vitro diagnostic substance mfg., and polish and sanitation good manufacturing are not included in the chart above. • Increases in the industry sectors ranged from pharmaceutical and medicine manufacturing (+4.0%) to druggists’ goods merchants wholesalers (+30.1%) in annual average wages from 2010 to 2015. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER BIOTECHNOLOGY INDUSTRY TOP ANNUAL AVERAGE WAGE, 2015 Biotechnology (R&D) • Annual average wages were $163,090 in 2015, up +46.4 percent from $266,220 $111,380 in 2010. Research & Development In Biotechnology R & D In Physical, Engineering & Life Sciences $167,340 Social Science/Humanities Research $88,280 Diagnostic Imaging Centers $68,330 Medical Laboratories $64,830 $0 $100,000 $200,000 • The industry sectors experienced mixed results: from medical & diagnostic laboratories, which declined (-3.0%), to scientific R&D services which realized an increase (+60.7%) over the same 5-year period. $300,000 2015 Annual Average Wage Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MEDICAL DEVICES INDUSTRY TOP ANNUAL AVERAGE WAGE, 2015 Medical Devices Surgical & Medical Instrument Mfg. Surgical Appliance & Supplies Mfg. Analytical Laboratory Instruments $93,340 Electromedical Apparatus Mfg. $90,910 Electricity & Signal Testing Instrument Mfg. $90,910 Irradiation Apparatus Mfg. $81,020 Industrial Process Variable Instruments $80,290 Automatic Environmental Control Mfg. • Annual average wages $130,790 were $107,480 in 2015, $127,270 up +20.9% from $88,890 in 2010. $71,670 Fluid Meters & Counting Devices $59,830 Dental Laboratories $51,520 $0 $40,000 $80,000 $120,000 2015 Annual Average Wage Due to disclosure issues, search, detection & navigation instruments, other measuring & controlling devices, dental equipment & supplies mfg., and ophthalmic goods mfg. are not included in the chart above. • Growth for the industry sectors ranged from +14.3% (electronic instrument manufacturing) to +28.0% (medical equipment and supplies manufacturing) over the 5-year period. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010 - 2015 Annual Averages LIFE SCIENCES INDUSTRY CLUSTER: REGIONAL AND COUNTY ANALYSIS NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER EMPLOYMENT BY COUNTY, 2015 ANNUAL AVERAGES 18,000 • In 2015, more than one-third of Bergen County’s employment was found in Medical and Diagnostic Laboratories (5,490). • 12.5 percent of the employment found in Morris County was in the pharmaceutical and medicine manufacturing industry (1,920). 16,380 16,000 14,000 12,000 10,000 15,390 13,910 11,370 9,940 8,000 6,000 4,000 2,000 5,930 4,810 4,360 2,880 1,550 1,230 1,050 940 730 320 260 200 130 130 0 Due to disclosure issues, Essex and Middlesex Counties are not included in the chart above. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER LIFE SCIENCES ANNUAL AVERAGE WAGE BY REGION 5-YEAR TREND Life Sciences Annual Average Wage Trend • Northern Region - (Bergen, Essex, Hudson, Hunterdon, Morris, Passaic, Somerset, Sussex, Union, and Warren Counties) – Annual average wage increased 28.1 percent from 2010 - 2015. • Central Region – (Mercer, Middlesex, Monmouth, and Ocean Counties) – Annual average wage experienced a 20.7 percent growth over the five-year period. • Southern Region – (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem Counties) –Smallest annual average wage increase over the period amongst the regions (+13.7%). $170,000 $158,330 $160,000 $152,856 $144,444 Annual Average Wage $150,000 $135,919 $140,000 $129,532 $130,000 $123,594 $126,406 $121,343 $110,000 $118,991 $114,303 $120,000 $104,695 $107,325 $100,000 $90,000 $94,241 $82,898 $85,707 $83,872 2011 2012 $86,982 $89,758 $80,000 2010 Northern Region Central Region 2013 2014 2015 Southern Region Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2010-2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER COUNTIES IN THE NORTHERN REGION The highlighted region to the left consists of Essex, Passaic, Morris, Somerset, Union, Hudson, and Bergen Counties. • Establishments – A majority of the Life Science industry related establishments can be found along major highways in NJ within a close proximity to New York, NY. • Employment – Represent more than half of the life sciences employment in New Jersey in 2015. • Average Wage – The average wage for these counties in life sciences related industries is above the NJ average for life sciences industry employment ($158,330 vs. $144,410). Due to disclosure issues, Essex County life sciences employment is not included in the map to the left. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER CENTRAL NEW JERSEY ESTABLISHMENTS The highlighted region to the left consists of Mercer, Middlesex, Monmouth, and Ocean Counties. • Establishments - These counties account for more than a quarter of all establishments in the life sciences industry cluster in New Jersey. • Employment – Employment for these five counties makes up nearly one third of employment in the life sciences industry cluster. • Average Wage – The average wage for these counties in life sciences related industries is below the NJ average for life sciences industry employment ($126,410 vs. $144,410). Due to disclosure issues, Middlesex County life sciences employment is not included in the map to the left. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER SOUTHERN NEW JERSEY ESTABLISHMENTS The highlighted region to the left consists of Burlington, Camden, and Gloucester Counties. • Establishments – Having a close proximity to Philadelphia, PA these three counties account for eight percent of all life sciences industry establishments in New Jersey. • Employment – The three counties have slightly more than 8,730 employment. • Average Wage – The average wage for these counties in life sciences related industries is below the NJ average for life sciences industry employment ($96,880 vs. $144,410). These counties account for 5.0 percent of total life sciences annual average wages paid in 2015. Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2015 Annual Averages LIFE SCIENCES INDUSTRY CLUSTER: OCCUPATIONAL ANALYSIS NEW JERSEY TECHNOLOGY INDUSTRY CLUSTER TOP OCCUPATIONAL GROUPS, 2015 Occupational Title All Life Sciences Occupations 2015 2015 Average Employment Salary Life Sciences Industry Cluster 116,590 $75,680 Production 21,820 $37,480 Office & Administrative Support 15,930 $39,240 Life, Physical, & Social Science 14,070 $82,730 Management 13,020 $142,470 Business & Financial Operations 8,530 $79,990 Healthcare Practitioners & Technical 7,400 $89,540 Computer & Mathematical 7,380 $94,550 Architecture & Engineering 7,190 $87,780 Sales & Related 6,250 $43,550 Transportation & Material Moving 4,620 $34,670 Healthcare Support 4,110 $30,190 Installation, Maintenance, & Repair 2,650 $51,640 Life, Physical, & Management Social Science 11.3% 12.3% Office & Administrative Support 13.9% Business & Financial Operations 7.4% Healthcare Practitioners & Technical 6.5% Architecture & Engineering 6.3% Production 19.0% Other 16.9% Computer & Mathematical 6.4% *Note: Due to disclosure issues, of the total 116,590 jobs identified, only 98.4% percent of the estimates could be used for this occupational analysis. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER INDUSTRY CLUSTER TOP 20 OCCUPATIONS BY EMPLOYMENT, 2015 New Jersey Life Sciences Cluster's Top 20 Occupations NAICS and Occupational Title 51-9111 19-2031 43-4051 41-4012 51-9061 19-1021 19-1042 19-4031 31-9097 15-1132 29-2011 11-9121 11-1021 51-1011 53-7064 51-9023 51-9011 43-9061 19-4021 51-9041 Packaging & Filling Machine Operators & Tenders Chemists Customer Service Representatives Sales Representatives, Wholesale & Manufacturing, Except Technical & Scientific Products Inspectors, Testers, Sorters, Samplers, & Weighers Biochemists & Biophysicists Medical Scientists, Except Epidemiologists Chemical Technicians Phlebotomists Software Developers, Applications Medical & Clinical Laboratory Technologists Natural Sciences Managers General & Operations Managers First-Line Supervisors of Production & Operating Workers Packers & Packagers, Hand Mixing & Blending Machine Setters, Operators, & Tenders Chemical Equipment Operators & Tenders Office Clerks, General Biological Technicians Extruding, Forming, Pressing, & Compacting Machine Setters, Operators, & Tenders 2015 Employment Education 3,900 3,640 3,020 2,430 2,340 2,270 2,260 2,260 2,230 2,150 1,900 1,860 1,860 1,800 1,630 1,630 1,520 1,480 1,380 1,360 High school diploma or equivalent Bachelor's degree High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent Doctoral or professional degree Doctoral or professional degree Associate's degree Postsecondary non-degree award Bachelor's degree Bachelor's degree Bachelor's degree Bachelor's degree High school diploma or equivalent No formal educational credential High school diploma or equivalent High school diploma or equivalent High school diploma or equivalent Bachelor's degree High school diploma or equivalent Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PHARMACEUTICAL COMPONENT, 2015 Office & Administrative Support 14.5% Management 11.3% Life, Physical, & Social Science 9.8% Sales & Related 8.5% Production 27.6% Other 9.3% Healthcare Practitioners & Technical 4.7% • An occupational analysis of 47,840* jobs revealed that five major occupational groups in this component accounted for nearly threefourths (71.8%) of the employment. • Sales and related and Business & Financial transportation and material Operations occupational groups are in 7.6% the top seven components for the pharmaceuticals sub Transportation & Material Moving sector and not for the total 6.6% industry cluster. *Note: Due to disclosure issues, of the total 47,860 jobs identified, 47,840 could be used for this occupational analysis. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PHARMACEUTICAL’S MAJOR OCCUPATIONAL GROUPS, 2015 Pharmaceutical & Medicine Manufacturing Office & Administ rative Support 9% Management 12% Life, Physical, & Social Science 14% • • Other 23% Production 42% Soap, Cleaning Compound, & Toilet Preparation Manufacturing Installati on, Mainten ance, & Repair 7% Transportation & Material Moving 14% Office & Administ rative Support 16% Other 26% Production 37% Drugs & Druggists' Sundries Merchant Wholesalers Healthcare Practitioners & Technical 13% Management 14% Other 31% Office & Administrative Support 21% Sales & Related 21% In all three industry groups, office & administrative support workers account for a significant portion of the employment. A majority of occupations in pharmaceutical and medicine manufacturing and soap, cleaning compound, and toilet preparation manufacturing are production related while occupations in drugs & druggists sundries merchant wholesalers are sales and related occupations. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER TOP PHARMACEUTICAL OCCUPATIONS, 2015 4,000 $90,000 3,500 $80,000 $70,000 $50,000 2,000 $40,000 1,500 $30,000 1,000 1,470 1,580 1,710 1,740 1,770 2,260 500 $20,000 3,690 2015 Employment $60,000 2,500 2015 Average Salary 3,000 0 $10,000 $0 Packaging & Filling Machine Operators & Tenders Chemists Customer Service Inspectors, Sales Mixing & Representatives Testers, Sorters, Representatives, Blending Samplers, & Wholesale & Machine Setters, Weighers Manufacturing, Operators, & Except Technical Tenders & Scientific Products Chemical Equipment Operators & Tenders Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER BIOTECHNOLOGY (R&D) COMPONENT, 2015 Healthcare Office & Practitioners & Computer & Administrative Technical Mathematical 11.4% Support 13.9% 13.1% Management 11.1% Life, Physical, & Social Science Healthcare Support 20.5% 9.2% Other 8.1% Architecture & Engineering 5.6% Business & Financial Operations 7.2% • An occupational analysis of 44,590* jobs revealed that five major occupational groups in this component accounted for more than twothirds (69.9%) of the employment. • Life, physical, and social science occupations employed the most in this component with more than 9,100 jobs, and accounted for more than one-fifth of the component. *Note: Due to disclosure issues, of the total 44,610 jobs identified, 44,590 could be used for this occupational analysis. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER BIOTECHNOLOGY (R&D) MAJOR OCCUPATIONAL GROUPS, 2015 Scientific Research & Development Services Office & Administrative Support 8% Architecture & Engineering 8% Other 11% Business & Financial Operations 9% Life, Physical, & Social Science 30% Management 15% Medical and Diagnostic Laboratories Office & Administrative Support 24% Healthcare Support 29% Other 14% Healthcare Practitioners & Technical 33% Computer & Mathematical 19% • • Biotech’s occupational groups show that these industry groups utilize a significant portion of professional, scientific, and technical workers with in-depth skills and knowledge related to science and healthcare. Nearly 90% of occupations found in the medical and diagnostic laboratories can be found in three major occupational groups: office and administrative support, healthcare support, and healthcare practitioners and technical. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER TOP BIOTECHNOLOGY (R&D) OCCUPATIONS, 2015 2,500 $120,000 $100,000 $80,000 1,500 $60,000 1,000 $40,000 500 2015 Average Salary 1,340 1,380 1,580 1,900 1,920 1,970 $20,000 2,230 2015 Employment 2,000 0 $0 Phlebotomists Medical Scientists, Except Epidemiologists Software Developers, Applications Medical & Clinical Laboratory Technologists Biochemists & Biophysicists Chemical Technicians Chemists Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MEDICAL DEVICE COMPONENT, 2015 Architecture & Engineering 16.2% Production 37.4% Office & Administrative Support 14.1% Management 11.9% Other 12.8% Business & Financial Operations 7.5% • An occupational analysis of 22,600* jobs revealed that five major occupational groups in this component accounted for nearly ninety percent of the employment (87.2%). • Production occupations employed the most in this component with 8,460 jobs, and accounted for nearly half of the component (37.4%). *Note: Due to disclosure issues, of the total 24,120 jobs identified, only 22,600 could be used for this occupational analysis. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER MEDICAL DEVICES MAJOR OCCUPATIONAL GROUPS, 2015 Navigational, Measuring, Electromedical, & Control Instruments Manufacturing Management 13% Production 30% Architecture & Engineering 25% • • Transportation & Material Moving 8% Architecture & Engineering 8% Business & Financial Operations Other 9% 9% Office & Administrative Support 14% Medical Equipment and Supplies Manufacturing Management 11% Other 15% Production 44% Office & Administrative Support 14% While the percentages differ, the top four occupational groups reveal that these two industry groups both have a need for many of the same type of workers. Occupations found in the medical devices component are production based, but other occupational family groups that make up a significant percentage are architecture and engineering, and business and financial. Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER TOP MEDICAL DEVICE OCCUPATIONS, 2015 1,200 $200,000 $180,000 $160,000 $140,000 800 $120,000 600 $100,000 $80,000 400 $60,000 2015 Average Salary $40,000 500 510 580 630 670 820 200 1,070 2015 Employment 1,000 0 $20,000 $0 Electrical & Electronic Equipment Assemblers Mechanical Engineers Dental Laboratory Technicians Medical Appliance Technicians Inspectors, Testers, Sorters, Samplers, & Weighers First-Line Supervisors of Production & Operating Workers General & Operations Managers Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2015 LIFE SCIENCES INDUSTRY CLUSTER: 2015 DEMOGRAPHIC OVERVIEW NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER EDUCATION CHARACTERISTICS Educational Breakdown Doctoral degree 7.1% Master's/ Professional degree 23.5% Bachelor's degree 32.2% High School or less 15.9% Some college/ Associates degree 21.3% • It is often mentioned that life sciences related employers require a welleducated and highly skilled workforce to meet the high level and technical demands of many of the occupations they need to fill. • Nearly two-thirds of New Jersey’s workforce employed in this cluster hold at least a Bachelor’s degree, many holding even more advanced degrees. Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER NJ RESIDENTS IN LIFE SCIENCES INDUSTRY CLUSTER WORKFORCE Life Sciences Female 52% Male 48% All Industries Females outnumber males by 4.8%. Female 47% Male 53% Life Sciences The life sciences workforce has a greater proportion of NJ residents who are Asian (19.6%). Life Sciences Hispanic 13% All Industries Hispanic 19% NonHispanic 87% NonHispanic 81% Other 8.8% Other 5.9% Asian 19.6% White 63.6% Black 10.9% All Industries Asian 9.6% White 68.4% Black 13.2% The life sciences workforce has fewer Hispanics than average. Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER LIFE SCIENCES INDUSTRY CLUSTER VS. TOTAL NONFARM Age Breakdown of Workers in Life Sciences and All Industries New Jersey, 2015 Less than 25 • The workforce of the Life Sciences industry is older than average with slightly less than 50 percent aged 45 and up compared to only 47 percent overall. 25-34 • The largest disparity among age cohorts occurs in the 35-44 year old age group, where nearly 30 percent of the life sciences industry cluster is found. 35-44 45-54 55-64 Life Sciences 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% 65 & over • 4.4 percent of the current NJ resident life sciences workforce is aged 65 and older. All Industries Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016 NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER NJ RESIDENTS PERSONAL EARNINGS Personal Earnings 2015 40.0% Life Sciences 34.6% 30.0% All NJ industries 8.8% 3.6% 7.0% 3.0% 0.0% 9.0% 5.0% 18.1% 10.0% 12.5% 9.5% 15.0% 16.4% 16.8% 20.0% 20.8% 23.5% 25.0% 16.3% Total Percent of Workers 35.0% • Nearly two-thirds of the worker (62.9%) in this cluster earned over $50,000, whereas 58.1% of all workers (in all industries combined) earned less than $50,000. • The percentage of workers making $150,000 or greater is almost a 3:1 ratio in favor of this cluster. Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016 LIFE SCIENCES INDUSTRY CLUSTER: TOP OCCUPATIONS OUTLOOK NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER TOP LIFE SCIENCES OCCUPATIONS OUTLOOK ACROSS ALL INDUSTRIES Occupational Title Phlebotomists Laborers & Freight, Stock, & Material Movers, Hand Medical & Clinical Laboratory Technologists Biochemists & Biophysicists Packers & Packagers, Hand Customer Service Representatives General & Operations Managers Pharmacy Technicians Natural Sciences Managers Chemical Technicians Packaging & Filling Machine Operators & Tenders Sales Representatives, Wholesale & Manufacturing, Except Technical & Scientific Products Secretaries & Administrative Assistants, Except Legal, Medical, and Executive Chemists Industrial Engineers Inspectors, Testers, Sorters, Samplers, & Weighers First-Line Supervisors of Production & Operating Workers Mixing & Blending Machine Setters, Operators, & Tenders Chemical Equipment Operators & Tenders Extruding, Forming, Pressing, & Compacting Machine Setters, Operators, & Tenders Employment Change 2014 Actual Projected 2024 2014 2024 Number Percent 4,880 5,890 1,010 20.7 83,850 95,360 11,510 13.7 4,850 5,470 620 12.8 3,700 4,130 430 11.6 30,170 33,280 3,110 10.3 66,030 71,660 5,630 8.5 47,200 51,150 3,960 8.4 9,200 9,890 700 7.6 4,090 4,390 310 7.5 4,430 4,630 200 4.6 14,610 15,020 420 2.8 43,610 44,820 1,210 65,690 5,520 3,760 10,490 13,850 4,900 3,040 3,830 66,020 5,540 3,730 10,340 13,440 4,650 2,700 3,370 330 20 -30 -150 -400 -250 -340 -460 Average Annual Job Openings Total Growth Replacement 200 100 100 3,650 1,150 2,500 180 60 120 140 40 100 1,110 310 800 2,190 560 1,630 1,590 400 1,200 160 70 90 120 30 90 150 20 130 560 40 520 2.8 1,020 0.5 0.3 -0.9 -1.4 -2.9 -5.1 -11.3 -12.0 730 120 110 260 220 110 100 140 120 900 30 0 0 0 0 0 0 0 690 120 110 260 220 110 100 140 Source: New Jersey Department of Labor and Workforce Development, 2014–2024 Industry and Occupational Employment Projections. Note: Total job openings may not add up exact due to rounding. NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PROJECTED ANNUAL AVERAGE OPENINGS FOR TOP OCCUPATIONS 2014-2024 Projected Annual Average Job Openings Laborers & Freight, Stock, & Material Movers, Hand Customer Service Representatives Packers & Packagers, Hand Secretaries & Administrative Assistants, Except Legal, Medical, & Executive 30 690 520 0 260 0 1,020 900 120 1,590 1,110 800 310 Packaging & Filling Machine Operators & Tenders 40 Inspectors, Testers, Sorters, Samplers, & Weighers 1200 400 3,650 2,190 1630 560 General & Operations Managers Sales Representatives, Wholesale & Manufacturing, Except Technical & Scientific Products 2500 1150 730 560 260 500 Growth 1000 1500 Replacement 2000 2500 3000 3500 4000 Source: New Jersey Department of Labor and Workforce Development, 2014–2024 Industry and Occupational Employment Projections. Note: Total job openings may not add up exact due to rounding. NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER COPYRIGHT STATEMENT This workforce product was funded by a grant awarded by the U.S. Department of Labor’s Employment and Training Administration. The product was created by the recipient and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This product is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner. NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER CONTACT INFORMATION New Jersey Department of Labor & Workforce Development http://lwd.dol.state.nj.us/ P.O. Box 057 Trenton, NJ 08625-0057 Office of Research and Information http://lwd.dol.state.nj.us/labor/lpa/LMI_index.html Alex Ancianis– Labor Market Analyst Tel: (609)984-9683 Email: [email protected]
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