Top Occupations

Why does it matter?

The importance of measuring occupational data is so that our community can make career choices that may benefit the individual, as well as the development within the region. When we evaluate job openings and postings, we can estimate a confidence interval for the occupational “demand” within the two counties. This allows us to find which high-demand occupations to focus on for new educational opportunities and developmental programs.

From there, individuals entering the job market or seeking new career paths may reference several indicators (such as annual earnings or job growth) to value the opportunity costs of said occupation.

Where are we now?

From 2015 to 2021, Annual Average Earnings are increasing across the top occupations. The top three Systems and Organization Controls (SOC) occupations based on earnings are Management occupations, Architecture and Engineering occupations and Computer and Mathematical occupations. Management occupations declined from 2015 to 2020, while Architecture and Engineering as well as Computer and Mathematical occupations increased.

Job openings are most abundant in the Food Preparation and Serving Related occupations. The other occupations with a high frequency of job openings is Office and Administrative Support followed by Sales and Related occupations. Overall, job openings have fallen from 2015 to 2021.

Job Postings increased over a five-year period. Monthly job posting data captures the total job postings related to a specific occupation. Since it is monthly, we can see the volatility in occupations occurring over a seasonal period. Naturally, COVID-19 spiked an increase in the need for health care workers, though these occupations were already high-demand positions prior to the pandemic. Notice the smooth, but steep increase in the demand for Food Preparation and Serving Related occupations from June to December 2020. Likely, layoffs were disproportionately higher in Food Service occupations as mandated shutdowns left businesses unable to continue operation when COVID-19 hit. As society normalized, demand returned for these occupations.

Jobs are increasing from 2015 to 2021 for the region. The top job suppliers in the region are Office and Administrative Support occupations, Food Preparations and Serving and Sales and Related occupations. These are three prominent occupations with over 20,000 jobs per year. The remaining occupations supplied 15,000 jobs or less each, making the top three a bulk of the local economy.

Since total job numbers do not always paint the full picture, we can evaluate the percent change in jobs. From 2015 to 2021, the top growing occupations were Legal (41.07%), Transportation and Material Moving (33.40%) and Business and Financial Operations (32.81%). While most occupations are growing, only three occupations suffered a job loss during this period: Military, Office and Administrative Support and Building and Grounds Cleaning and Maintenance. Unclassified occupations were removed from the occupational data sample.

Finally, the location quotient, or LQ, is a national index used to compare weighted employment metrics across regions. The highest location quotient of the occupations belongs to Food Preparation and Serving as well as Protective Services. In 2021 Legal occupations and health care practitioners tied, although Legal occupations grew significantly from 2015 to 2021.

How do we measure it?

There are twenty-four 2-digit SOC codes used to categorize standard occupations. Each section ranks the top 10 occupations by the greatest values. Unclassified occupations were removed from the occupational data sample. For measuring how the average yearly compensation differs across occupations, we use the dollar value of annual average earnings. To assess the occupational demand, we chose to measure the total number of unique job openings per year. Job openings approach demand conservatively, accounting for job growth while estimating replacement needs of workers changing careers or retiring.

We also measure the monthly job postings. Job postings represent the ceiling of demand for a job. However, this only holds true if employers are actively advertising online. It’s likely that true demand falls somewhere between job postings and job openings. Jobs are measured annually as a total per occupation. The top growing occupations are determined by the highest, positive percent change in total jobs from 2015 to 2021. Finally, the location quotient is a ratio of an area's employment, ownership type and number of employees as it compares to a specific reference region.

What call to action is linked to this indicator?

A simple call to action can start with directing educational programs towards occupations with high wages, growth rates and increasing demand. Given the institutions for higher education in the region, there are many opportunities to use this as a tool for both the community and the individual. Targeting how current programs at the University of West Florida and Pensacola State College fit into these occupations can better assist in growing the workforce in a proficient and efficient manner.