California’s economic outlook for 2022 shows a robust employment market. The state currently leads the U.S. in employment in tech, biotech, entertainment, manufacturing, and more. The Employment Development Department (EDD)’s September Labor Report shows the state has gained an average of 101,500 jobs per month since February. It also quickly recovered 63.5% of the jobs lost due to the COVID-19 Pandemic.
2022 is expected to see continued growth in employment with UCLA’s Anderson School of Management projecting the unemployment rate to go down to 5.2% next year, and the employment rate is expected to grow by 4%.
Engineers, in particular, should anticipate continued demand for their skills for the next decade. The EDD is forecasting workforce growth for Mechanical Engineers to increase 7.4% annually between 2022 and 2028; 9% for Electrical Engineers and 13% for Manufacturing Engineers (classified as Industrial Engineers).
With so many options available, which markets are expected to hire more engineers?
INDUSTRIAL AUTOMATION – A recent study made by Meticulous Research found the industrial automation market is expected to grow at an annual rate of 9.3%, to reach $306.2 billion by 2027. The industry’s valuation in 2020 alone was worth $164.2 billion due to the high demand for robotics and automated products from businesses that were hit hard with labor shortages. The primary drivers for this boost are the Hospitality, Food and Beverage, and Tourism markets. Meticulous Research said due to popular orders for robots that prep and serve food to direct consumers, the Food Automation market is expected to see an annual growth rate of 9.5% from 2020 to 2027, and reach $29.4 billion by 2027. The Job Site Zippia ranked California as the best state for robotics engineers with over 1,000 automation companies listed and 2,936 current job openings.
AUTOMOTIVE – California is currently the epicenter for 2 pioneering automotive markets: Electric Vehicles (EV) and Autonomous-Driving Vehicles.
- In a study by Bloomberg New Energy Finance, it’s to be expected that 34% of new car purchases will be under the Zero Emission Vehicle (ZEV) classification. This includes a mixture of EVs and Hybrid vehicles. By 2050, the number will go up to 88%. With the U.S. and Europe’s recent clean energy initiatives and investments, EVs are expected to be California’s biggest manufacturing global exports, which will lead to a continuous rise in hiring for automotive engineering and manufacturing professionals.
- In the past 5 years, tech giants such as Apple, Amazon, Uber, and Google have invested more than $50 Billion in the development of autonomous-driving vehicles. Proponents of this technology from the Coalition for Future Mobility say that these vehicles will increase safety on the roads since many car-related accidents, traffic congestion, and injuries are caused by human errors. It will also increase mobility for disabled individuals who are not able to drive themselves. Employment in the autonomous driving sector is expected to go up by 39.3%, with the main industry key players headquartered in San Francisco, San Jose, and Los Angeles.
AEROSPACE – According to California’s Manufacturing Network, though Aerospace saw major disruptions in orders and productions due to the COVID-19 Pandemic, the industry is optimistic it will see a great rebound with more innovations and investments expected to take place in the fields of Space Exploration, Unmanned Aerial Systems (UAS)/Drones, and Zero-Fuel Aircrafts. Leading the Aerospace’s growth forecast is the Space Exploration sector with a projection of $1 trillion in revenue by 2040. Its applications for defense and telecommunications are expected to be the primary sources of sales. Next is the drone market with a projection of $36 billion by 2030 and an annual growth rate of 14% up by 2030, followed by the zero-emission aircraft which are anticipated to grow annually by 8% up to 2035.
The California EDD Employment Forecast for Aerospace Engineers is expected to grow 11.4% annually up to 2028, with an average of 1,400 additional jobs per year, making the state an attractive draw for engineers seeking employment within the Aerospace sector for the next decade.
BIOTECH AND LIFE SCIENCES – At the height of the COVID-19 Pandemic, California’s Biotech and Life Science manufacturers’ ability to quickly produce diagnostic equipment, therapeutics, and vaccines helped stabilize and sustain the growth of the state’s economy. A report conducted by Biocom California stated the life science industry provided over 1.38 million jobs in the state, with payroll amounting to $131 billion, as well as generating $405 billion in business sales in 2020 alone. Grand View Research Inc. estimates the global biotechnology market is expected to reach $2.44 trillion and an annual growth rate of 15.83% by 2028. It’s expected that hiring within the biotech sector will stay resilient as demand for research and products for viral detection, immunization, and treatment continues to expand.
Given that there’s such an abundance of engineering career options in 2022, the prospect of job hunting could be daunting. Working with SoloPoint can help focus and refine your search. Our recruiters can filter and present options that meet your long-term career objectives, as well as market your skills attractively to employers. To get started, contact us at (408)246-5945 or visit our job board today.