a C&EN Feature
Chemists' economic status
Chemists as a group earned annual salaries at least equal to and usually higher than the median received by their scientific peers for the past 10 years
T
he above conclusions are some of the major findings of a recent ACS study of U.S. chemists' economic status compared to other occupational groups. An overall comparison of salary data for scientists shows that chemists' median annual salaries were on a par with, if not higher than, the national median for all scientists during the 1958-68 period. In 1958, the median for all chemists was $8700. For all scientists, it was $7900, according to NSF's "American Science Manpower" report. By 1968, these figures had risen to $13,500 ( + 55%) and $13,200 ( + 6 7 % ) , respectively. On a percentage basis, Ph.D. chemists fared no better during the 195868 decade. Their median salary increased 6 1 % , whereas the gain for all U.S. Ph.D. scientists was 74%. B.S. chemists did still less well. Their salary improvement during the decade was 50%, whereas all B.S. scientists' salaries moved up about 56%. M.S. chemists held their own with all master's level scientists for a 62% gain. Percentages such as these, however, can be deceiving. Chemists, in contrast to some other professional scientific groups, have experienced a progressively sound economic position during the past three decades, possibly in part because of a continuing flow of salary reports issued by ACS as far back as 1941. Only recently, however, have biological scientists' salaries improved. Consequently, 62 C&EN DEC. 8, 1969
Overall, chemists continue to increase their annual earnings at about the same rate as most other workers, both blue- and
Despite inflationary trends, chemists' annual increases have kept them ahead of rising living costs
white-collar
on a percentage basis their economic gains have far outstripped those of chemists. In 1958 biological scientists reported a median salary of only $6900. Last year, this figure had risen 88% to $13,000, close to the national median for all scientists. Similarly, psychologists' salaries rose during the same period from $6900 to $13,200, good for a 9 1 % increase. Gains such as these accounted for a significant proportion of the jump in all scientists' earnings during the 10-year span. Too, such major shifts have led to a seeming erosion in chemists' economic situations as compared with those of their scientific colleagues. In 1958, Ph.D. chemists had a 13% salary advantage over all Ph.D. scientists as a group. Last year, that increment had slipped to 4%. Whether this represents a homogenization of scientists' salaries or a particular dimunition of the chemist's worth will bear watching. Overall, chemists' rate of salary increase, about 5.5% per year, is on a par with that of many other professional and blue-collar workers. The Bureau of Labor Statistics' "National Survey of Professional, Administrative, Technical, and Clerical Pay" reports show that accountants' median salaries rose approximately 4.5%, attorneys' 4.8%, and personnel directors' 4.2% a year. Counterbalancing these findings, however, are calculations made by
ACS on the improvement in salaries of other professional groups. A recent National Education Association survey, "Status of the Teaching Profession, 1968-69," for example, shows that the academic year salaries of instructional staffs in public schools increased from $4700 in 1958 to $7700 in 1968, an average gain of 6.4% per year. College and university teachers did still better with a 7.0% annual average increase, although their salaries were below those for chemists. Yet rate of salary growth does not tell the entire story of the chemist's current economic status. Among all scientists, for example, Ph.D. chemists' annual salaries last year were exceeded only by those for Ph.D. physicists, who received $300 more, and were higher than those for Ph.D. biologists by $1400. Physicians Physicians, probably more than any other occupational group, typify the ultimate professional and economic status goals of many chemical scientists. Not only is ACS often advised to emulate the American Medical Association in promoting professional status, but the Society is urged frequently to pull out all stops in an effort to achieve a corresponding level of economic parity for chemists. The reasons for this interest are clear. Last year, Ph.D. chemists reported a median annual salary of
David A. H. Roethel, Manager ACS Office of Professional Relations
Speculation that earnings of skilled laborers are or soon will be in direct competition with those for scientists has little
Salaries of
-
Ph.D. chemists are overshadowed by physicians' and medica scientists' earnings
factual basis
Biologists' salaries increased most on a percentage basis in the period 1958-68
l
$15,600, but scientists with medical degrees reported earnings of $20,000. Highest paid of all were physicians in private practice who, according to a Medical Economics report, were estimated to have earned in excess of $35,500 last year. Even hospital staff physicians received median net earnings, that is, salary plus fees, and the like, of $19,600 in 1967, according to a Hospital Physician survey. ACS projects that this figure probably was about $21,600 last year. Not accounted for in such figures, of course, are fringe benefits received by the chemist as indirect compensation. These benefits—pension plans, holiday pay, vacation salary—can account for about 25% in additional income. In contrast, M.D.'s must usually provide these fringes themselves at a reduction in total income. In any event, the resulting data probably confirm that chemists, even at the doctoral level, haven't been in the same economic ballpark with their medical counterparts during the past 10 years, and probably not during any prior period either. Moreover, judging by present salary trends, it is likely that this gap will widen. In 1962, for example, there was about a 100% difference between the Ph.D. chemist's median salary, $12,000, and the net earnings of physicians in private practice, $24,300. By last year, the difference had increased to 125%. The observation is that physicians improve their annual earnings by a factor of 10%, according to the best data available from medical sources. Ph.D. chemists, however, have experienced only an average 6% gain each year during the past decade. The fact that many Ph.D. chemists, especially in academia, supplement their earnings from consulting fees, honoraria, and the like is of some significance when comparing their total income to that of physicians, but the net result is much the same. Blue-collar
workers
Nonexempt employees and other blue-collar workers constitute another group whose economic status the professional chemists tends to view with increasing concern. Although many chemists sense that the economic status of such groups is vastly improved from what it was a decade or even a quarter of a century ago, there is still a nagging suspicion that many a plumber or truck driver enjoys a standard of living not distantly remote from that of professional scientists. Adding fuel to such fires are reports of union negotiations in cities such as Philadelphia where plumbers' salaries
DEC. 8, 1969 C&EN 63
Median annual salary or income for various occupational groups 1958-68 Accountants Attorneys Biologists Chemists, all degrees B.S. chemists Ph.D. chemists Directors of personnel Engineers Mathematicians Physicists Psychologists Scientists, all degrees and fields B.S. scientists Ph.D. scientists Scientists with medical degrees Teachers, public schools Teachers, university level Family income
1958
1959
1960
— —
— —
— —
$ 6,900 8,700 8,000 9,700
— — — —
$ 8,000 10,000 9,000 11,000
—
—
—
8,800 7,600 8,500 6,900 7,900 7,700 8,600 11,300 4,700 6,000 5,100
— — — — — — — — $4,900 — 5,400
9,600 9,000 10,000 8,000 9,000 9,000 10,000 12,000 5,200 6,700 5,600
1961
1962
1963
1964
1965
1966
1967
1968
$ 7,500 $ 7,700 $ 8,100 $ 8,400 $ 8,700 $ 8,800 $ 9,400 $ 9,900 11,800 12,400 13,000 13,500 14,400 14,700 15,100 15,600 10,000 — 10,700 — 12,000 13,000 — — 10,000 — 11,000 — 12,000 13,500 — — 9,000 — 9,900 — 10,500 12,000 — — 12,000 — 13,000 — 14,000 15,600 — — 10,500 10,700 11,000 12,000 12,000 12,300 12,800 13,600 10,400 — 11,300 — 12,500 15,000 — — 10,000 — 11,000 — 12,000 13,000 — — 11,000 — 12,000 — 12,500 14,000 — — 9,000 — 10,300 — 11,500 13,200 — _ 10,000 — 11,000 — 12,000 13,200 — — 9,000 — 10,000 — 11,000 12,000 — — 11,000 — 12,000 — 13,200 15,000 — — 14,000 — 15,500 — 17,200 20,000 — — 5,400 5,700 5,900 6,200 6,500 6,800 7,100 7,700 7,500 — 8,200 — 9,100 10,200 — — 5,700 6,000 6,200 6,600 7,000 7,500 8,000 8,500°
a Estimated. S o u r c e s : E n g i n e e r i n g M a n p o w e r c o m m i s s i o n , E n g i n e e r s J o i n t C o u n c i l ; U.S. D e p a r t m e n t of L a b o r ; H o s p i t a l P h y s i c i a n ; M e d i c a l E c o n o m i c s ; N a t i o n a l E d u c a t i o n a l A s s o c i a t i o n ; U.S. D e p a r t m e n t of C o m m e r c e
Average annual increase in wage or salary for various occupational groups 1958-68 Occupation
Per cent
Psychologists Biologists Ph.D. scientists Mathematicians Teachers, university level Engineers, all fields and degrees Median family income Scientists, all fields and degrees Physicists Teachers, public schools M.S. chemists M.S. scientists, all fields Ph.D. chemists
9.1% 8.8 7.4 7.1 7.0 7.0 6.8 6.7 6.5 6.4 6.3 6.2 6.1
Occupation
B.S. scientists, all fields Carpenters Chemists, all degrees Plumbers Workers, all building trades Journeymen, all building trades Electricians, inside wiremen B.S. chemists Attorneys Accountants Directors of personnel Consumer Price Index
Per c e n t
5.6% 5.6 5.5 5.4 5.4 5.3 5.2 5.0 4.8° 4.5° 4.3" 2.1
a E i g h t - y e a r p e r i o d , 1961-68.
1968 median annual earnings for various occupational groups Occupation
Salary
Occupation
Physicians, private practice Physicians, hospital staff Scientists with medical degrees Attorneys, Class IV-VII° Ph.D. engineers, all fields College deans Ph.D. physicists Ph.D. chemists Attorneys, Class l-VMa Ph.D. scientists, all fields Full professor, all fields Ph.D. biologists B.S. engineers, all fields Directors of personnel B.S. physicists
$35,500 21,600 20,000 18,300 17,300 16,100 15,900 15,600 15,600 15,000 14,700 14,200 13,900 13,600 12,600
B.S. chemists B.S. scientists, all fields Associate professors, all fields Teachers, university level Accountants B.S. biologists Assistant professors, all fields Plumbers Electricians, inside wiremen Journeymen, all building trades Carpenters Family income 6 Workers, all building trades Teachers, public schools
a D e p a r t m e n t of Labor classification. b E s t i m a t e d a t 7% a b o v e 1967.
64 C&EN DEC. 8, 1969
Salary
$12,000 12,000 11,400 10,200 9,900 9,600 9,500 9,200 8,900 8,700 8,600 8,500 8,200 7,700
Union wages in the building trades Average hourly rates a Occupation
I960
1962
1964
1966
1968
All building tradesmen Carpenters Electricians, inside wiremen Plumbers All journeymen
$3.66 3.78 4.00 4.01 3.86
$3.95 4.07 4.37 4.31 4.15
$4.25 4.36 4.68 4.70 4.46
$4.59 4.74 4.98 5.08 4.83
$5.14 5.35 5.57 5.73 5.43
Estimated annual income 6 Occupation
I960
1962
1964
1966
1968
All building tradesmen Carpenters Electricians, inside wiremen Plumbers All journeymen
$5,900 6,000 6,400 6,400 6,200
$6,300 6,500 7,000 6,900 6,600
$6,800 7,000 7,500 7,500 7,100
$7,300 7,600 8,000 8,100 7,700
$8,200 8,600 8,900 9,200 8,700
a Not including employer contributions for benefits. b Based on 1600 hours at above hourly rate.
seemingly could go as high as $19,000 a year. This gives rise to speculation that, if the pace of union bargaining negotiations during recent times is continued in the future, blue-collar workers easily might overtake and perhaps even outdistance the economic status of many professionals. Although reports of extraordinarily high blue-collar hourly earnings can be verified, the number of examples of such earnings is relatively small. In fact, data obtained by ACS show that these situations are the exception rather than the rule. Moreover, such earnings cannot often be translated into true annual income. Bearing this out is the observation that most labor unions place virtually all emphasis on hourly earnings and little on annual income. Granted, a journeyman being paid $6.00 per hour could earn approximately $12,500 annually, based on a 40-hour, 52-week year. This assumption, however, is invalid since about 60 cents of this hourly wage consists of employer contributions for fringe benefits. Also, labor leaders are on record in Congressional testimony as identifying a "target" of 1600 hours for their work year. This is about 80% of the total potential for which the professional man is paid. Needless to say, deviations from this target figure depend on the type of trade, geographic area, and general trend in a given industry. More often than not, too, the target is not hit. Hence, the annual likely income of journeymen in the building trades for 1968 was $8700, as estimated by ACS after deducting for employer fringe benefit contributions. This figure is in line with their estimated annual income of $8000-$ 10,000 based on a 1600-hour work year that some locals in the nation's capital report for their members. Of course, some skilled
tradesmen more than likely keep busy during their off-target hours and manage to up their earnings over the $10,000 level. Cost of living index The Consumer Price Index is an often mentioned indicator of current economic conditions. The CPI represents a composite of many cost of living items, both services and goods, which the average wage earner is apt to purchase during a year. Only too well known is the fact that the CPI has gone up steadily since 1957, while the value of the dollar has decreased in like proportion. At one time in its salary reporting program, ACS measured chemists' salary growth against changes in the index, but as the bureau of Labor Statistics manual on the CPI cautions, it was designed to apply only to economic factors that affects families of wage earners and clerical workers. It specifically excludes professional, technical, and kindred workers, such as engineers, teachers, chemists, and physicians. A year ago BLS was known to be considering a separate index for the latter group, but apparently has shelved such plans for the time being. Even though not directly applicable, the index does reflect changes in certain living costs as they apply to all consumers, including both white- and blue-collar ones. During the 1958-68 period, the CPI (1957-59 = 100) for all items rose an average of 2.1% a year to 121.2. Medical care accounted for the greatest increase in spending with a rise to 149.1 in 1968, while food (119.3),, transportation (119.6), and housing (122.3) more closely followed the overall index rise during the decade. For what they may be worth, com-
parisons of the chemist's salary improvement with a rise in consumer prices show that the chemist is more than keeping pace with the economy, although many other groups have done better on a percentage basis. Yet, as many chemists will point out, their social and professional obligations tend to subject them to higher expenses than the average blue-collar worker. Insurance, educational, and housing costs are three examples often cited. Until a better economic indicator can be developed, it looks as though the CPI will have to serve as one touchstone upon which the chemist can measure his economic progress. However, BLS has done some studies of living standards against which chemists and other professionals can gage their own situations—"Three Standards of Living for an Urban Family of Four Persons/' for example. Overall, it appears that chemists are holding their own on the economic front. Although not yet attaining the economic level of physicians, they have maintained a reasonably comparable economic level vis-a-vis the average U.S. worker for the past 10 years. Barring any drastic changes in the nation's economy, this pattern likely will continue in the foreseeable future. This analysis of the chemist's economic status was recommended by the Committee on Professional Relations and authorized by the Council at the 1969 spring national meeting in Minneapolis. The collection of data and preliminary analysis was performed by Charles R. Counts of the staff Office Of Professional Relations. This report was prepared by David A. H. Roethel, manager of the office.
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