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Program Endorsement Brief: Cloud Computing Los Angeles/Orange County Center of Excellence, December 2020

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Program Endorsement Brief: Cloud Computing Los Angeles/Orange County Center of Excellence, December 2020 REGIONAL PROGRAM PRE-APPROVAL LMI REPORT Program Endorsement Brief: Cloud Computing Los Angeles/Orange County Center of Excellence, December 2020 Summary Analysis Endorsed: Endorsed: Not Program Endorsement: All Criteria Met Some Criteria Met Endorsed Program Endorsement Criteria Supply Gap: Yes No Living Wage: (Entry-Level, 25th) Yes No Education: Yes No Emerging Occupation(s) Yes No The Los Angeles/Orange County Center of Excellence for Labor Market Research (COE) prepared this report to provide Los Angeles/Orange County regional labor market supply and demand data for nine occupations related to cloud computing: computer systems analysts (15-1211), information security analysts (15-1212), computer user support specialists (15-1232), computer network architects (15-1241), network and computer systems administrators (15-1244), database administrators and architects (15-1245), software developers and software quality assurance analysts and testers (15-1256), web developers and digital interface designers (15-1257), and computer occupations, all other (15-1299). This report is intended to help determine whether there is demand in the local labor market that is not being met by the supply from community college programs that align with the relevant occupations. Based on the available data, there appears to be a supply gap for occupations related to cloud computing in the region. For the purposes of regional pre-approval, the supply gap is large enough that if each college were to create a cloud computing program or expand on their existing program, a supply gap would still exist due to the high demand for these computing occupations. Furthermore, all of the annual openings for the occupations in this report have typical entry-level wages that exceed the living wage in Los Angeles County. However, the majority of annual openings in the region typically require a bachelor’s degree. Therefore, due to some of the criteria being met, the COE endorses this proposed program. Detailed reasons include: Demand: Supply Gap Criteria – Over the next five years, there is projected to be 14,695 jobs available annually in the region due to new job growth and replacements, which is more than the 4,261 awards conferred annually by educational institutions in the region. P a g e 1 | 16 Living Wage Criteria –Within Los Angeles County, all of the annual job openings for these nine cloud computing occupations have entry-level wages above the county’s living wage ($15.04/hour).1 Educational Criteria –Within the LA/OC region, the majority (76%) of annual job openings for occupations related to cloud computing typically require a bachelor’s degree. o The national-level educational attainment data indicates between 11.3% and 40.7% of workers in the field have completed some college or an associate degree, and only three occupations in this report have 30% or more workers in the field that have completed some college or an associate degree as their highest level of education (computer user support specialists, network and computer systems administrators, and computer network architects). Supply: All 28 community colleges in the LA/OC region issue awards related to IT and/or cloud computing, conferring an average of 1,299 awards annually between 2016 and 2019. Between 2014 and 2017, there was an average of 2,962 awards conferred annually in related training programs by non-community college institutions throughout the region. Occupational Demand Exhibit 1 shows the five-year occupational demand projections for cloud computing-related occupations. In Los Angeles/Orange County, the number of jobs related to these occupations is projected to increase by 7% through 2024. There will be nearly 15,000 job openings per year through 2024 due to job growth and replacements. This report includes employment projection data by Emsi which uses EDD information. Emsi’s projections are modeled on recorded (historical) employment figures and incorporate several underlying assumptions, including the assumption that the economy, during the projection period, will be at approximately full employment. To the extent that a recession or labor shock, such as the economic effects of COVID-19, can cause long-term structural change, it may impact the projections. At this time, it is not possible to quantify the impact of COVID-19 on projections of industry and occupational employment. Therefore, the projections included in this report do not take the impacts of COVID-19 into account. 1 Living wage data was pulled from California Family Needs Calculator on 11/20/2020. For more information, visit the California Family Needs Calculator website: https://insightcced.org/2018-family-needs-calculator/. P a g e 2 | 16 Exhibit 1: Occupational demand in Los Angeles and Orange Counties2 2019-2024 2019-2024 Annual Geography 2019 Jobs 2024 Jobs Change % Change Openings Los Angeles 110,536 117,902 7,367 7% 10,129 Orange 50,336 53,501 3,165 6% 4,566 Total 160,872 171,403 10,531 7% 14,695 Wages The labor market endorsement in this report considers the entry-level hourly wages for all of the cloud computing-related occupations in this report (middle-skill and above middle-skill) in Los Angeles County as they relate to the county’s living wage. Orange County wages are included below in order to provide a complete analysis of the LA/OC region. Detailed wage information, by county, is included in Appendix A. Los Angeles County—All of the annual openings for these cloud computing-related occupations have entry-level wages above the California Family Needs Calculator hourly wage (living wage) for one adult ($15.04 in Los Angeles County).3 Typical entry-level hourly wages are in a range between $21.25 and $44.48. Experienced workers can expect to earn wages between $34.00 and $72.56, which are higher than the living wage estimate. Orange County— All of the annual openings for these cloud computing-related occupations have entry-level wages above the California Family Needs Calculator hourly wage (living wage) for one adult ($17.36 in Orange County). Typical entry-level hourly wages are in a range between $20.32 and $43.48. Experienced workers can expect to earn wages between $34.14 and $70.77, which are higher than the living wage estimate. Job Postings There were 136,345 online job postings for cloud computing-related occupations listed in the past 12 months. The highest number of job postings were for software engineers, senior software engineers, DevOps Engineers, data analysts, and systems engineers. The top skills were: SQL, software development, Java, software engineering, and Python. The top employers, by the number of job postings, in the region were: Northrop Grumman, Anthem Blue Cross, and The Boeing Company. Cloud Computing Skillset: Over the last twelve months, 20,870 of the 136,345 employer job postings (15%) sought candidates with Cloud Computing, Solutions, and Storage skills. The top three occupations, by the number of job postings, were software developers and software quality 2 Five-year change represents new job additions to the workforce. Annual openings include new jobs and replacement jobs that result from retirements and separations. 3 Living wage data was pulled from California Family Needs Calculator on 11/20/2020. For more information, visit the California Family Needs Calculator website: https://insightcced.org/2018-family-needs-calculator/. P a g e 3 | 16 assurance analysts and testers, computer occupations, all other, and computer user support specialists. It is important to note that the job postings data included in this section reflects online job postings listed in the past 12 months and does not yet demonstrate the impact of COVID-19. While employers have generally posted fewer online job postings since the beginning of the pandemic, the long-term effects are currently unknown. Educational Attainment The Bureau of Labor Statistics (BLS) lists the following typical entry-level education requirements for the cloud computing-related occupations studied in this report: Bachelor’s degree: computer systems analysts (15-1211), information security analysts (15-1212), computer network architects (15-1241), network and computer systems administrators (15-1244), database administrators and architects (15-1245), software developers and software quality assurance analysts and testers (15-1256), and computer occupations, all other (15-1299) Associate degree: web developers and digital interface designers (15-1257) Some college/no degree: computer user support specialists (15-1232) In the LA/OC region, the majority of annual job openings (76%) typically require a bachelor’s degree. While the national-level educational attainment data indicates between 11.3% and 40.7% of workers in the field have completed some college or an associate degree, only three occupations in this report have 30% or more workers in the field that have completed some college or an associate degree as their highest level of education (computer user support specialists, network and computer systems administrators, and computer network architects). Of the 56% of cloud computing-related job postings listing a minimum education requirement in Los Angeles/Orange County, 90% (67,863) requested a bachelor’s degree, 8% (5,817) requested a high school diploma and 3% (2,131) requested an associate degree. Educational Supply Community College Supply— Exhibit 2 shows the annual and three-year average number of awards conferred by community colleges in the related TOP codes: Information Technology, General (0701.00), Computer Information Systems (0702.00), Software Applications (0702.10), Computer Science (Transfer) (0706.00), Computer Software Development (0707.00), Computer Programming (0707.10), Database Design and Administration (0707.20), Computer Systems Analysis (0707.30), Computer Infrastructure and Support (0708.00), Computer Networking (0708.10), Computer Support (0708.20), World Wide Web Administration (0709.00), and E- Commerce (Technology emphasis) (0709.10), and Other Information Technology (0799.00). The colleges with the most completions in the region are: Mt.
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