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Blog Category: Economics and Statistics Administration

Listening to Local Businesses in South Carolina

Under Secretary Nancy Potok tours South Carolina MTU, a German-owned diesel engine company with plant manager Jeorge Klisch.

Guest blog post by Nancy Potok, Commerce Deputy Under Secretary, Economics and Statistics Administration

In the heart of South Carolina’s picturesque horse community, I sat down at the Aiken County Chamber of Commerce to begin the first of two White House Business Council roundtable discussions with local business owners in Aiken and Columbia, S.C.  These discussions, focused on rural communities during the month of August, are designed to provide an intimate forum for local businesses to discuss the obstacles they face in creating jobs and growing their businesses. 

Attending that discussion, along with about 20 others was Jeorge Klisch, the plant manager of MTU, a German-owned diesel engine company formerly known as “Detroit Diesel” that has been located in Aiken about a year.  Earlier that morning I took a tour of MTU’s state of the art facility located about twelve miles outside Aiken in the once thriving manufacturing community of Graniteville, S.C.. Having grown up in Detroit with the required elementary school field trip to an automotive plant, I was expecting a hot, loud and oil covered environment.  In contrast, MTU was temperature controlled, clean and high tech.  During the tour, Klitsch shared with me their plans to  bring another 200 jobs to the Aiken area, the need for a skilled workforce, and his efforts to collaborate with surrounding area high schools and technical colleges to adjust their curriculum and support his “ work and learn” initiative that will help fill MTU’s future  need for engineers and technicians.  I noticed an absence of women in the workplace, but before I asked about it, Klisch said he want to dispel myths held by women about manufacturing jobs and plans to focus on introducing young women and girls to manufacturing, where they are significantly underrepresented at MTU.  MTU exports about 50 percent of its products and has invested more than $77 million in this new site with plans for expansion and increased production.  Very impressive and a great indication of the growth potential in the Aiken area.

BEA Computes that Rural America Personal Income Did Better than Urban America in 2009

Image of combine in a field (Photo: U.S. Census Bureau)

Guest blog post by Steve Landefeld, Director of Commerce's Bureau of Economic Analysis.

Off the top of your head, it probably seems obvious that the economies of America’s major cities differ structurally and behaviorally from our nation’s nonmetropolitan and rural areas, right? You are correct, indeed! But the really interesting question is, What can you learn about this from the Commerce Department’s Bureau of Economic Analysis?  BEA measures our regional economies in several ways, including GDP by State, GDP by Metropolitan Area, State Personal Income, Metropolitan Area Personal Income and County Personal Income (AKA: Local Area Personal Income).

To understand the differences between the big, metropolitan areas and the rural parts of the country, your best bet is to turn to BEA’s Local Area Personal Income which details earnings in all 3,143 counties in the U.S.

Technically speaking, nonmetropolitan counties are those that are not part of a metropolitan statistical area, or MSA, as defined by the Office of Management and Budget.  Population in these counties is generally less than 50,000 people. There are 2,032 nonmetropolitan counties in the U.S., almost twice the number of metropolitan counties.  Of course, not all nonmetropolitan areas are rural, nor are all rural areas excluded from official designated metropolitan areas.  Another important consideration is commuting patterns, certainly plenty of Americans live in areas which may be rural, but drive into MSAs to work which intertwines these economies. (What, you thought we’d make it that easy?)

Rural and Suburban America: When One Definition is Not Enough

Graphic of three possible ways to define Peoria, Illinois

Guest blog post by Robert M. Groves, Director, U.S. Census Bureau

Cross-posted on the Census Director's blog

Last week I was pleased to speak to the Rural Philanthropy Conference. They are a set of private and community foundations that identify problems and issues facing rural America and seek to improve the areas through foundation investments. They want to do good works and see the lives of rural peoples improve. 

There was discussion about what “rural” really means. It is fair to say that rurality as a concept has for years been derived from first identifying various types of urban areas. In that sense, rural areas are residual to urban areas; everything that’s not urban is rural.

For example, looking at the area around Peoria, Illinois, illustrates the problem (see graphic). If we use the city limits of Peoria as the urban unit, then we deduce more land as rural adjacent to it. If we identify land use patterns, then we bring into a Peoria urban area more space, mainly suburban ring areas. If we use commuting patterns and other data to describe a cohesive economic center, then the rural fringe shrinks even more.

So, “urbanicity” (and thus “rurality”) is currently defined by various combinations of civil jurisdictions, population density, land use and economic notions.

Women in STEM: An Opportunity and An Imperative

Gender Shares of Total and STEM Jobs, 2009

Today Commerce's Economic and Statistics Administration released the second in a series of reports on science, technology, engineering and mathematics (STEM). This report, entitled Women in STEM: A Gender Gap to Innovation (PDF), looked at women and STEM. The results offer an opportunity and an imperative for women and America. The results showed that women are vastly underrepresented in STEM jobs and among STEM degree holders despite making up nearly half of the U.S. workforce and half of the college-educated workforce. That leaves an untapped opportunity to expand STEM employment in the United States, even as there is wide agreement that the nation must do more to improve its competitiveness.

Other key findings are:

  • Although women fill close to half of all jobs in the U.S. economy, they hold less than 25 percent of STEM jobs. This has been the case throughout the past decade, even as college-educated women have increased their share of the overall workforce.
  • Women with STEM jobs earned 33 percent more than comparable women in non-STEM jobs–considerably higher than the STEM premium for men. As a result, the gender wage gap is smaller in STEM jobs than in non-STEM jobs.
  • Women hold a disproportionately low share of STEM undergraduate degrees, particularly in engineering.
  • Women with a STEM degree are less likely than their male counterparts to work in a STEM occupation; they are more likely to work in education or healthcare

For more information on this topic, read Chief Economist Mark Doms's blog post about the report and ESA's first report on STEM: Good Jobs Now and For the Future.

NOAA: Cultivating the Next Generation of STEM Workers, One Student at a Time

NOAA’s Ernest F. Hollings scholarship program students on Chesapeake Bay field study  (NOAA photo)

You’ve probably heard the term in the news of late. “STEM jobs” in science, technology, engineering and mathematics, are the new “It” jobs.

A report from Commerce’s Economics and Statistics Administration discussed recently in this blog had good news for present and future STEM workers. Among its key findings, the report notes that in the past 10 years:

  • Growth in STEM jobs was three times greater than that of non-STEM jobs;
  • STEM workers earn 26 percent more than their non-STEM counterparts; and
  • Job growth in these fields will continue to grow at a faster rate than other jobs. 

As the report confirms, STEM workers are driving our nation’s innovation and competitiveness and helping America “win the future” with new ideas, new businesses and new industries.

Enter Commerce's National Oceanic and Atmospheric Administration (NOAA).

NOAA’s mission—to understand and predict changes in climate, weather, oceans and coasts, to share that knowledge and to conserve and manage coastal and marine ecosystems and resources—is central to many of today’s greatest challenges.  

Why? Climate change, extreme weather, declining biodiversity, and threatened natural resources all convey a common message: Now, more than ever, human health, prosperity and well-being depend upon the health and resilience of both natural and social ecosystems and resources.

That means we need skilled hands and inspired minds to help society prepare for and respond to weather-related events, to sustain healthy and productive ecosystems and to ensure resilient coastal communities and economies.

Acting Deputy Secretary Blank Meets with Business Leaders in Michigan, Stresses Value of Science and Innovation to Job Creation

Acting Deputy Secretary Rebecca Blank and the BathyBoat

This week Commerce’s Acting Deputy Secretary Rebecca Blank traveled to Ann Arbor, Mich., to visit the National Oceanic and Atmospheric Administration’s (NOAA) Great Lakes Environmental Research Laboratory and meet with area business leaders as part of the White House Business Council Roundtable series. Engaging with local leaders, Blank discussed the region’s economic assets, challenges, and what can be done on local, state and national levels to boost economic growth and job creation throughout Michigan.

Senior administration officials across the federal government have participated in several business roundtables around the country to keep in touch with Main Street and hear from those who are doing the innovating and hiring that support our nation’s economy.

At the Great Lakes Environmental Research Laboratory, Blank addressed a Science Advisory Board meeting focused on Great Lakes research being conducted at two NOAA facilities. She highlighted the department’s recent release of a report profiling U.S. employment in the fields of science, technology, engineering and math – or STEM – and stressed the importance of supporting the next generation of scientists, inventors and entrepreneurs and the broad scope of work that organizations like NOAA do that are critically important to U.S. social and economic welfare.

The President has made a substantial commitment to furthering innovation and education in the STEM fields by setting a goal of investing 3 percent of our GDP in research and development and moving American students to the top of the pack internationally.  The President’s 2012 budget included a $206 million commitment toward STEM training and related programs – an investment that will pay off not just for students but for the country.

Economics and Statistics Administration Releases New Report on STEM: Good Jobs Now and For the Future

Recent and Projected Growth in STEM and Non-STEM Employment

The U.S. Department of Commerce’s Economics and Statistics Administration (ESA) today released a new report that profiles U.S. employment in the science, technology, engineering and mathematics (STEM) fields. STEM: Good Jobs Now and for the Future offers an inside look at workers who are driving our nation’s innovation and competitiveness and helping America win the future with new ideas, new companies and new industries.

In 2010, 7.6 million people or 5.5 percent of the labor force worked in STEM occupations. Key findings from the new report show that over the past 10 years, growth in STEM jobs was three times greater than that of non-STEM jobs, and STEM jobs are expected to continue to grow at a faster rate than other jobs in the coming decade. Meanwhile, STEM workers are also less likely to experience joblessness.

Further findings show STEM workers command higher wages, earning 26 percent more than their non-STEM counterparts. STEM degree holders also enjoy higher earnings, regardless of whether they work in STEM or non-STEM occupations. Likewise, college graduates – no matter what their major – enjoy an earnings premium for having a STEM job.

ESA wrote up their findings on their blog and have released the complete report: STEM: Good Jobs Now and for the Future.

Tapping Experts to Improve Federal Statistics: The Federal Economic Statistics Advisory Committee

FESAC members with Acting  Deputy Secretary Rebecca Blank

Guest blog by Robert Groves, Director, U.S. Census Bureau.

Major economic statistics tell us fundamental facts about the state of the economy – where we have been and how we are doing.  They allow citizens, businesses, and governments to assess how things are going.  Examples of such statistics include Gross Domestic Product (GDP), produced by the U.S. Bureau of Economic Analysis (BEA); U.S. international trade in goods and services, produced by the U.S. Census Bureau; and the consumer and producer price indexes, produced by the U.S. Bureau of Labor Statistics (BLS).  While each example statistic is issued by only one statistical agency, some – such as GDP - hit the statistical “trifecta” because they are built from data from all three agencies.

Keeping those statistics up-to-date and relevant to an ever-changing economy is central to the credibility of statistical organizations such as the Census Bureau, BEA, and BLS.  It is also a significant challenge for the agencies. We use many tactics and strategies to make sure our data are current and relevant.  Getting good advice from experts in relevant fields, through advisory committees, is one of those strategies.  Hearing about both the strengths and weaknesses of our data in an open and public setting is essential to improving our data and maintaining their credibility.

I am excited that we get advice from the Federal Economic Statistics Advisory Committee (FESAC).  FESAC advises the heads of the Census Bureau and BEA – both in the Department of Commerce – as well as the Department of Labor’s BLS. FESAC’s mission -- to recommend research to address important technical problems -- aims at improving exactly complex economic statistics relying on data from not just one, but two or three of these agencies. 

2010 Census Shows Nation’s Hispanic Population Grew Four Times Faster than the Total U.S. Population, While Overall Population is Aging

Official census taker pushing a doorbell

The U.S. Census Bureau today released two 2010 Census briefs summarizing important demographic trends on the Hispanic population and Age and Sex Composition in the United States over the past decade.

The Hispanic Population: 2010 looks at an important part of our nation’s changing ethnic diversity with a particular focus on groups of Hispanic origin, including Mexican, Dominican and Cuban. Between 2000 and 2010, the Hispanic population grew by 43 percent – four times the 9.7-percent growth of the total U.S. population. The increase was a difference of 15.2 million people and accounted for more than half of the total population increase of 27.3 million people.

Age and Sex Composition: 2010 reports on our nation’s changing age and sex composition and shows that while Americans have gotten older, the male population has grown faster than the female population over the last decade. Of the total 2010 Census population, 157.0 million people, or 50.8 percent, were female and 151.8 million, or 49.2 percent, were male. 

For more information on today’s 2010 Census releases, visit www.2010.census.gov/news.