BLS Data on Cost Estimators

The Bureau of Labor Statistics shows that the Cost Estimating community is 209,130 people strong and making an average annual wage of $64,340. They provide some neat charts and breakdowns by industry and location. The highest concentration of cost estimators is in Delaware (2.8 per thousand jobs) and the highest average annual wages for the 310 people in Alaska ($89,900). So how do we compare to the occupations as a whole? (The below are charts I made from the BLS OES dataset.)

Cost Estimator Wages and Employment Over Time

Cost Estimators make roughly double the wages of the median worker. But notice that the employment level (area, right axis) tends to mirror the economy's performance at large. The demand for cost estimators appears pro-cyclical, where more are hired in the boom years and many laid off in the down years.

This is intuitive as cost estimators are primarily needed to inform decision-making on large investments and new operations. Somewhat conversely, in the DOD cost estimators become important during a budget squeeze, not in the throws of war (but they are probably not laid off during war).

Here are some data on cost estimator wage dispersion by location in 2013:

Cost Estimator Wages by Percentile in Different Metro Areas

So how does the growth rate of cost estimators' wages rank?

Cost Estimators Wage Growth Rankings: 1997-2013 and 2008-2013

We seem to do OK, but not stellar. Wages since 2008 have been particularly stagnant (1.08% annualized growth), but in both time-frames cost estimators are in the bottom half of the available distribution. These trends appears to hold across localities.

Is it possible cost estimators are on the wrong end of the skills-gap? I don't think so. There are many explanations such as shifting demographics of the occupation, but those are difficult to tease out.

On the bright side, Financial Managers have dropped out of the top 5 between 2008-13 (but only fell to #79).

Note: the BLS defines Cost Estimators as those who "Prepare cost estimates for product manufacturing, construction projects, or services to aid management in bidding on or determining price of product or service. May specialize according to particular service performed or type of product manufactured."