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High Wages, High Demand:Professional, Scientific, and Technical Services Subsector in the Twin Cities

tim-oneill

by Tim O'Neill
June 2018

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The professional, scientific and technical services subsector is the fastest-growing industry in the Twin Cities.

With 10,472 establishments supplying nearly 125,000 jobs, professional, scientific and technical services (a subsector of professional and business services) is one of the largest and most highly-specialized industries in the Twin Cities. It also happens to be the region’s fastest-growing industry, according to the most recent data available from 2012 to 2017. This article examines the professional, scientific and technical services subsector in the Metro Planning Region.

An Assortment of Specialized Industries

So what exactly is professional, scientific and technical services? According to the North American Industry Classification System, the subsector comprises businesses that specialize in a variety of activities, including legal advice and representation; accounting, bookkeeping and payroll; architectural, engineering and specialized design; computers; consulting; research; advertising; photography; translation and interpretation; and veterinary services.1 Specific industries within professional, scientific and technical services include those listed in Table 1.

Table 1. Professional, Scientific and Technical Services in the Metro Area, 2017
Industry Title Number of Establishments Number of Jobs Share of Minnesota Employment Average Annual Wage
Total, All Industries 79,538 1,732,448 60.7% $62,816
Professional, Scientific and Technical Services 10,472 124,798 78.0% $96,720
Computer Systems Design and Related Services 2,109 28,723 78.4% $104,312
Management, Scientific and Technical Consulting Services 1,757 26,117 87.9% $111,540
Architectural, Engineering and Related Services 1,037 17,782 77.8% $87,984
Legal Services 1,580 14,993 82.2% $107,224
Accounting, Tax Preparation, Bookkeeping and Payroll Services 1,140 10,368 66.1% $79,612
Other Professional, Scientific and Technical Services 1,533 9,609 61.1% $58,604
Advertising and Related Services 666 9,421 81.0% $80,756
Scientific Research and Development Services 203 6,116 81.6% $118,976
Specialized Design Services 447 1,667 83.6% $69,472
Source: DEED Quarterly Census of Employment and Wages

With over 28,700 jobs, computer systems design and related services is the largest-employing professional, scientific and technical services subsector in the Twin Cities. Jobs within this industry include writing, modifying, testing and supporting software to meet customer needs; planning and designing computer systems that integrate computer hardware, software and communication technologies; providing on-site management and operation of client computer systems or data processing facilities; and installing software. This industry has the highest concentration of information technology jobs in the Twin Cities and the state.

Over 26,000 jobs in the subsector are in management, scientific and technical consulting services. Typical occupations within this industry include management analysts, market research analysts, general and operations managers, customer service representatives and statisticians. These workers provide operating and financial advice to businesses, human resources assistance, marketing and sales forecasting, or environmental evaluations, among other services.

It should be noted that while the Metro accounts for 60.7 percent of Minnesota's total employment, it accounts for 87.9 percent of the state's employment within management, scientific and technical consulting services. Zooming out, the Metro Planning Region accounts for 78 percent of the state's professional, scientific and technical services employment (see Table 1).

Other high-employing industries include architectural, engineering and related services; legal services; accounting, tax preparation, bookkeeping and payroll services; and advertising and related services. The majority of occupations within these industries, whether it's a civil engineer or a lawyer, require higher education. In fact, DEED's fourth quarter 2017 job vacancy results reveal that 60 percent of professional and technical services job vacancies in the Metro require a bachelor's degree or more. By comparison, 19 percent of all job vacancies require a bachelor's degree or more.2

High Demand, High Wage

Between 2012 and 2017, professional, scientific and technical services added nearly 23,000 jobs, growing by 22.5 percent. This subsector grew 2.5 times as fast as total employment in the region, which expanded by 8.9 percent.

Adding just under 14,600 jobs, management, scientific and technical consulting services contributed the most to the subsector's growth during the five-year period, expanding by an incredible 126.7 percent. Computer systems design and related services and architectural, engineering and related services added 3,244 jobs and 2,932 jobs, respectively, during the period. Only legal services lost jobs, declining by 2.7 percent.

In addition to being large and fast-growing, professional, scientific and technical services is also high-paying. The average annual wage for the sector was $96,720 in 2017, or 54 percent higher than wages for all industries combined in the Metro.

Common occupations within this subsector, such as software developers, accountants, engineers and lawyers, all have high median wages. Most of these occupations require a bachelor's degree or more (see Table 2).

Table 2. Top-Employing Occupations within Professional, Scientific, and Technical Services
Industry Estimated Number of Jobs Metro Share of MN Jobs (Percent) Percentile Wage Typical Education Required
25th 75th
Total, All Occupations 1,769,290 62.3 $14.20 $34.43 -
Accountants and Auditors 18,330 76.5 $26.96 $32.67 Bachelor's degree
Lawyers 9,210 82.4 $37.80 $54.43 Graduate degree
Office Clerks, General 33,570 60.2 $13.51 $22.10 High School Diploma or Equivalent
Software Developers, Applications 15,190 87.7 $34.28 $56.13 Bachelor's degree
Legal Secretaries 2,610 74.1 $22.50 $28.72 High School Diploma or Equivalent
Paralegals and Legal Assistants 4,310 85.9 $20.07 $34.35 Associate Degree
Computer Systems Analysts 14,670 88.2 $34.47 $43.77 Bachelor's Degree
Management Analysts 12,090 88.4 $28.60 $49.14 Bachelor's Degree
General and Operations Managers 29,620 65.2 $34.19 $73.53 Bachelor's Degree
Bookkeeping, Accounting, and Auditing Clerks 19,000 59.2 $17.98 $25.27 High School Diploma or Equivalent
Sales Representatives, Services, All Other 16,550 77.4 $20.42 $39.04 No Typical Education Requirement
Customer Service Representatives 41,960 73.3 $15.28 $24.02 High School Diploma or Equivalent
Business Operations Specialists, All Other 18,630 80.2 $25.37 $42.96 No Typical Education Requirement
Software Developers, Systems Software 6,200 75.7 $44.55 $67.64 Bachelor's Degree
Computer User Support Specialists 9,180 75.0 $21.28 $32.99 Associate Degree
Market Research Analysts and Marketing Specialists 12,230 83.6 $25.77 $43.62 Bachelor's Degree
Executive Secretaries and Executive Administrative Assistants 9,090 73.8 $22.87 $32.86 High School Diploma or Equivalent
Civil Engineers 3,930 80.4 $32.45 $50.78 Bachelor's Degree
Computer Programmers 3,700 74.7 $28.49 $48.35 Bachelor's Degree
Computer and Information Systems Managers 7,930 83.0 $55.04 $82.17 Bachelor's Degree
Source: DEED Occupational Employment Statistics (OES), Occupational Staffing Patterns, Educational Requirements for Occupations

1North American Industry Classification System, United States Census Bureau, Aug. 17, 2016. Accessed June 12, 2018.

2North American Industry Classification System, United States Census Bureau, Aug. 17, 2016. Accessed June 12, 2018.

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