Meeting the Demand for Electrical Engineers: Solutions to Hiring Challenges

According to projections from the U.S. Bureau of Labor Statistics (BLS), electrical engineering employment is expected to grow by 9% from 2023 to 2033. This projection indicates that approximately 9,000 new electrical engineering positions will be available, demonstrating a growth rate that exceeds that of all other job categories.

Innovation and new technology drive the demand for these well-qualified experts. Consequently, hiring and recruiting electrical engineers has become a top priority for businesses employing engineers.

The reasons driving the growth of recruitment of electrical engineers are:

• Amplifying the need for retired engineers to be replaced.
• Increasing demand for expertise in designing, installing, and repairing power distribution systems.
• New technology development, research, and advancement in the field of electronics.
• High-scale use of energy and electric power.

The heightened investment in the flourishing semiconductor and energy sectors has created a pressing need for proficient electrical engineers. However, the current workforce needs to catch up on these engineers, which endangers production efficiency and inflates expenses. In this blog, we will discuss the reasons for the demand for electrical engineers and how to mitigate their shortage.

Why is There Such a Huge Demand for Electrical Engineers?

Industry Demand

• The global semiconductor industry is projected to grow by over one trillion dollars by 2030, driven by increasing demands for renewable energy, electric vehicles, semiconductors, and electronics, which require more electrical engineers skilled in designing complex systems and components.
• The semiconductor sector in the United States alone will require about 250,000 additional employees, including 50,000 engineers and 200,000 technicians, to manage equipment maintenance and fab operations.

The Government's Initiative

• The Federal CHIPS Act of 2022 will spend USD 280 billion to increase domestic microchip manufacture, which might increase demand for electrical engineers and require tens of thousands of graduates over the next decade.
• Companies seek to build manufacturing facilities using Chip and Science Act subsidies, surpassing the country's electrical engineering graduation rates.

Causes of the Current Talent Shortage:

The United States is home to over 295,000 electrical and electronics engineers. However, projections forecast a decline of 1,100 engineers in the coming years. This anticipated decline is due to the forecasted 17,800 job openings resulting from a wave of retirements and transitions, with only 16,700 new engineers projected to enter the workforce.

• Fewer Young Engineers: A recent survey indicates that the insufficient number of students pursuing electrical engineering hinders 76% of firms from finding suitable engineers. The stagnation in engineering graduates in the United States is linked to a lack of undergraduate education, insufficient funding, and a decline in interest in the field. Currently, the annual influx of new electrical engineering graduates is merely between 20,000 and 30,000. This situation arises largely because many college students gravitate towards alternative employment opportunities such as those available on Wall Street, in consulting, or at high-paying, reputable corporations like Google and Amazon.
• Visible Decline in Students' Interest: Over the last five decades, a notable transformation has emerged in academic choices, as evidenced by a 90% increase in students pursuing computer science (CS) as their major, contrasted by a 90% decline in those opting for electrical engineering. The causes of this shift are: While many electrical engineers usually need a bachelor's/master' s/doctorate degree to attain specialized or higher responsibilities, software engineers frequently only need to earn certificates to specialize in their profession. From USD 103,320 in 2019 to 2029, the need for software engineers is projected to grow faster than electrical engineers, with a projected growth rate of 22% as opposed to 5% to 7% for the former. According to BLS data, computer scientists make a median salary of USD 136,620, compared to electrical engineers' USD 103,320. Software positions often offer greater starting wages than hardware jobs.

• Senior Employees leaving the job There is more competition for electrical engineers since older workers are retiring earlier. Research indicates that the retiring baby boomers, who possess essential legacy knowledge and have driven numerous improvements, may not be adequately replaced by new engineering talent. This makes transferring knowledge, finding replacements, and closing labor shortages difficult.

What Can Be Done To Cater To The Demand For Electrical Engineers?

• Requirement for Additional Funding To encourage young students to pursue electrical engineering, more financing is needed to create such projects and programs. Businesses can secure a future talent pipeline with this investment. Examples of such projects include The IEEE's ISEC Annual Conference fosters innovative research on integrated STEM education to engage the next generation of engineers. The Manufacturing Institute's MFG opens factory doors to students to spark an early interest in manufacturing jobs.

• Enhanced Hiring for Contract and Immigration Positions To address the market's elevated demands, firms are modifying their strategies by hiring more contract engineers. According to BLS, most job openings for electrical engineers will emerge from engineering services firms as companies turn to contracting to reduce expenses. Immigration rules may also need to change to encourage more graduates to stay and work in the U.S. However, this is a challenge due to its contentious issue.

To overcome these challenges, companies must invest in education initiatives to attract and develop future talent, promote STEM engagement, and leverage alternative hiring strategies like contract positions and immigration. Partnering with a staffing agency can significantly streamline the hiring process, helping companies source specialized talent quickly and efficiently, filling critical gaps in the workforce while adapting to market demands.