Randall Frey

ACS members report healthy salary gains and a stable unemployment rate.

A mid another great year for the overall U.S. economy, ACS chemists’ earnings and employment security were considerably brighter this March than in March 1998, the latest ACS annual survey shows (Table1). The news is particularly good for industrial chemists, whose salary gains last year had trailed those of the combined total chemist population.

Overall, ACS chemists with bachelor’s degrees had mediocre gains compared to those with higher degrees. B.S. chemists gained 1.7%, which matched the March 1999 Consumer Price Index (CPI) annual increase. On the other hand, master’s degree chemists easily outgained the CPI with a hefty 5.7% median salary hike, as did Ph.D. chemists with a 4.1% increase over last year. Both of the advanced-degree groups had seen about 3% salary gains in the 1998 survey.

This year, industrial chemists’ median pay gains are considerably higher than those of other chemists (Table 2). Meanwhile, the most dramatic contrast to last year’s lowly figures was for industrial chemists at all education levels. B.S. industrial chemists gained 2.6% versus no growth last year; M.S. and Ph.D. industrial chemists saw 6.6 and 6.3% more in their paychecks, respectively, versus 1.6 and 2.4% last year.

The unemployment news was relatively good, too. After edging up last year to 2.3% of all chemists looking for work, the rate stayed at that same number (Figure 1). Among industrial chemists, unemployment also stayed unchanged at 2.6% (Figure 2).

Showing the Money
As in past years, industrial chemists’ median salaries are higher than those of chemists in the other employment sectors—government, other nonacademic, and academia (Figure 3). This year, there is one exception: B.S. chemists working for state, local, and federal government employers edged B.S. chemists in industry, $53,242 to $51,275. In that same sector comparison, M.S. and Ph.D. industrial chemists outearned their government counterparts by considerable margins, $65,000 to $60,400 and $85,000 to $75,427, respectively. Other nonacademic chemists (which includes self-employed chemists and those at analytical service laboratories and contract research firms) earned less than either of the first two sectors: $49,000 for B.S. chemists, $55,500 for M.S. holders, and $74,500 for Ph.D.s. Academic-employed chemists traditionally have the lowest median salaries ($36,250 B.S., $47,293 M.S., and $59,600 Ph.D. this year), but these are not adjusted for the fact that many are employed under nine- or ten-month contracts.

Within the industrial community, too, there are significant salary differentials, according to the nature of work performed (Figure 4). The top three categories at all degree levels are R&D management, general management, and marketing/sales, in that order. The three job categories with lowest median salaries are analytical services, production/QC, and basic research for B.S. chemists; for M.S. and Ph.D. holders, the lowest-paying categories were analytical services, production/QC, and applied research.

What We Mean by . . . Here’s the definition of “unemployed” used in this ACS survey report: The term applies to persons who are not working and are seeking a full-time job; it excludes anyone who is retired or otherwise not seeking a job.

Degrees over the Years
As always, the survey explicates the salary-raising value of higher degrees for industrial chemists (Figure 5). Although full-time earnings are effectively postponed for as much as five years past the initial B.S. degree, Ph.D. chemists in the 5- to 9-year bracket are making up lost ground fast, earning a median salary of $65,846 versus $42,700 for B.S. chemists and $47,700 for M.S. chemists. However, that hefty 55% differential shrinks to about 25% ($78,000 versus $61,191) a decade later, 15–19 years from the B.S.

It is surprising that this year’s survey finds M.S. chemists earning barely the same as B.S. holders ($61,100 vs. $61,191) in the 15–19-year bracket, although they held about a 10% advantage during the previous decade. In the next decade, M.S. chemists outearn B.S. chemists again by about 5%, after which (30 or more years from B.S.) a much bigger gap opens up: 15% ($78,695 vs. $67,247) at 30–34 years and 23% beyond 35 years, perhaps reflecting a career longevity advantage for the master’s level.

A Brief History of the ACS Salary Survey 1942: Origins When the Survey of the Chemical Profession was introduced in 1941 by the Committee on Economic Status, its purpose was to collect comprehensive data on the economic status of the chemical profession. The entire ACS membership was polled and the Bureau of Labor Statistics (BLS) both collected and helped analyze the data. Even while the world was at war, the ACS and BLS distributed the salary survey. Questions relating to age, gender, education level, and wartime status were added. 1955: A Time of Change In the decade following the war, extreme change occurred in the job market for chemists. Therefore, a decision was made to not undertake the survey because the slow nature of the printing process could not keep up with changes in data. However, in 1952 it was decided by the Committee on Professional Relations and Status to restart the survey, focusing on starting salaries and only polling a sample of the membership. In 1954, a resolution was passed to conduct a comprehensive survey of the entire membership for current salaries. The 1960s: Help from the NSF The survey conducted in 1960 was a joint effort with the National Science Foundation in order to update the National Register of Scientific and Technical Personnel. The entire ACS membership was surveyed and the BLS was no longer a partner in the tabulations or analysis. Throughout the 1960s, the salary survey was mailed out every two years. The Early 1970s: New Procedures In the 1970s, the survey began to be produced yearly by the Office of Professional Relations. A sample was used instead of the complete membership. The 1970s also saw the survey come back under the direction of the Committee on Economic Status. In 1973, the employment and salary surveys were combined and thereafter polled together. A question on minority status was also added. 1975: One Problem Solved In 1975 it was resolved to survey all female ACS members in order to make the results statistically valid. Also, a separate report, Women Chemists, began publication every fifth year. 1985: Rating Satisfaction In 1985 a category was added to cover supplemental income as well as questions on overall satisfaction with the position held. The new questions assessed chances for professional advancement, overall satisfaction with the job, perceived fairness, and job security. 1990: Getting Personal This year saw the addition of a section entitled Questions About Yourself, with inquiries on physical disabilities and number of dependent children. These questions were refined in later years and included in the 1995 survey. 1995: Business as Usual The Committee on Economic Status gave way to the Committee on Economic and Professional Affairs in 1994. In 1995, a full survey of all ACS members was done; the year 2000 edition will be the next such "census survey." Source: ACS Committee on Economic and Professional Affairs.

The value of a Ph.D. is particularly highlighted by the fact that among newly minted doctoral graduates, female chemists achieve salary parity (Figure 6). The median pay rates at the 5- to 9-year point are $65,610 for males and $66,000 for females—perhaps reflecting a supply-and-demand situation that initially favors women (fewer than half the number of male survey respondents were in this category). Once in the workforce, however, the advantage soon turns back to the males, and by 25 years from a B.S., the medians are $95,000 for men and $86,055 for women. The nuances of gender factors for career chemists will be explored further next year, when the ACS survey expands in scope and numbers for the five-year census.

And Bonuses, Too If you worked full-time as an industrial chemist during 1998, the odds are about 8 to 1 that you received a bonus in addition to your salary. Some 88% of industrial chemists responding to the survey reported collecting bonuses, and the median was $5000. However, as is the case with salaries, the amount of your bonus varied greatly according to your educational status. The median bonus for B.S. chemists in industry was $3000; for M.S. chemists it was $4060; and for Ph.D. chemists it was $8000, more than double that of the B.S. level.

The Unemployment Story
The good news is that overall, unemployment didn’t go up; the bad news is that it didn’t go down, either. But obviously for industrial chemists, unemployment varies according to which industry one works in (Figure 7). This year, the highest unemployment rate was 4.9%, for petroleum chemists—not surprising given the mergers and consolidation going on in the petroleum industry. Other high rates were in the food and medical device sectors, both at 4.5%. On the low side, it is again not surprising that the expanding industry of pharmaceuticals (see Industry Today column, page 45) registers only a 1.4% jobless rate, bettered only by the rubber industry at 1.2%. Another low rate reported was for the basic chemicals industry at 1.9%.

That said, we can turn to “the rest of the story” (with apologies to radio’s Paul Harvey): For industrial chemists, the unemployment story (Figure 7) is largely about age. The overall jobless rate of 2.6% washes out a highly significant variable, the age of the individual chemist. The fact is that if you are under 30, your age group’s unemployment rate is only 1.3%, half the overall rate. Even for those under 45, the jobless rate is still a moderate 1.8%. But from age 45 to 59, the rate jumps to 3.2%, and past the age of 60 it doubles again to 6.4%. Perhaps this statistic reflects a phenomenon of “forced” early retirement, after which individuals age 60 or over either get no job offers or are offered work at pay rates they choose not to accept. This survey does not measure such factors, but the ACS Committee on Economic and Professional Affairs was concerned enough about the phenomenon to conduct a separate survey of older chemists. With data being gathered through October of this year, the “Mature Career Chemist” results will be published next year as a full report from the ACS Department of Career Services.

Worth Repeating All salary figures referenced in this article are medians, or 50th percentiles of the given categories. As explained in last year’s coverage of the ACS salary survey, the median—the value above and below which there are an equal number of data points—provides a better descriptive measure for salary comparisons than the average or mean because it is not influenced by a handful of atypically high or low salaries at the extremes of the range. However, median salaries are useful for making comparisons among various types of jobs or assessing changes over time. But for individual chemists, the median is of limited value for judging how his or her salary stacks up against that of colleagues.

The Survey Itself
All statistical data used in this article were derived from the March 1999 Comprehensive Salary and Employment Status Survey of a random sample of 21,000 ACS members. This year the response rate was also good: 10,605 chemists returned questionnaires, compared with under 9000 last year. The survey is conducted by the ACS Department of Career Services under the guidance of the Committee on Economic and Professional Affairs (see sidebar, A Brief History of the ACS Salary Survey). The sample is drawn from all ACS members (excluding the categories of student, retired, and emeritus) living in the United States who are under 70 years of age. Senior Workforce Analyst Mary W. Jordan of ACS Career Services greatly aided and facilitated interpretation of the survey data for this article, but any errors of analysis are solely the responsibility of the author.

More detailed survey data and analysis, including information on ACS members employed in academia, will be published this fall in the report Salaries 1999. Printed and bound copies of the report will be available for $150 per copy from the ACS Office of Society Services, 1155 16th St. N.W., Washington DC 20036. The annual report has been published since 1973, and copies of back issues are available. Every fifth year since 1975, the survey goes to all eligible ACS members rather than to a sample; next year’s edition will be such a “census survey” of approximately 100,000, with about 60,000 respondents expected.

Randall Frey is an assistant editor of Today’s Chemist at Work.

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