SUPPLY AND UTILIZATION 



Unemployment 



For most of the 1960's the production of new 

 scientists and engineers could not match the de- 

 mand for their services. In recent years, how- 

 ever, the demand for scientists and engineers de- 

 clined as a result of several converging factors: 

 R&D funding (in constant dollars) declined on 

 the average by 1 percent per year between 1967 

 and 1972, due primarily to an average annual de- 

 cline of 3.3 percent in Federal R&D funding; con- 

 currently, the Nation underwent a fairly steady 

 period of inflation, reduced economic growth, 

 and less emphasis on space and defense. 



However, because of the long timelags in the 

 response of the educational system, the produc- 

 tion of scientists and engineers continued in 

 spite of the fall in demand, creating a supply/de- 

 mand mismatch. Unemployment of scientists 

 and engineers accelerated from 1969, reaching 

 about 2.6 percent for scientists and 2.9 percent 

 for engineers by early 1971 (figure 48). National 

 Science Foundation surveys show that 

 unemployment in 1971 was more severe for 

 engineers than for scientists, as indicated in 

 figure 4*5; that, generally, those with higher de- 

 grees were less likely to be unemployed; and that 

 younger scientists and engineers were most 

 adversely affected. Unemployment rates were 

 more severe in the defense and aerospace areas 

 and in specific disciplines such as physics. Among 

 unemployed scientists and engineers, defense 

 (11 percent) and space-related activities (4 per- 

 cent) were most frequently cited as the last areas 

 of employment. 



Although there was a relative increase in the 

 unemployment of scientists and engineers, the 

 base level for such a comparison was low. Even 

 with the large relative increases up to 1971 the 

 overall science and engineering unemployment 

 rate was still only about half that for all workers. 



The unemployment situation has improved 

 somewhat since then. The unemployment rate 

 for scientists and engineers declined in 1972, as 

 has that for all professional workers, and 

 employment prospects for new graduates were 

 reported as better in 1972, although still not as 

 good as those in the mid-1960's. 



Underemployment 



Although unemployment has been relatively 

 small, the change from a "sellers' market" to a 



Figure 48 



Unemployment Rates, 1963-72 



(PeccentI 



•* Scientists 



J_ 



J L 



1963 '64 '65 '66 '67 

 SOURCE US Department of Labor. 



'69 '70 '71 '72 



"buyers' market" has tended to produce under- 

 employment — employment that fails to fully 

 utilize the training of scientists and engineers. 

 Although a real problem, underemployment is 

 difficult to assess since "underutilization of 

 training" is a subjective judgment. Some indica- 

 tion of underemployment of new Ph.D.'s can be 

 inferred from a survey of university depart- 

 ment chairmen conducted by the National Re- 

 search Council.-" The survey found that in 

 January 1971, 1.2 percent of new (1968-09) 

 Ph.D.'s were listed as employed in positions that 

 did not make appropriate use of their graduate 

 training, and that this percentage was double 

 that reported the year before. 



' National Research Council, Employment of Neii' Ph.D'iand 

 Posldoc>orah m 1971. Washington, D.C., 1971. 



59 



