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Computer Science Market Analysis

Niraj K. Jaishwal
March 22, 2022
Introduction
Computer Science is one of the leading technological careers which is on the top list

for the best future career. Computer Science course contains many aspects of the

technological career. It deals with software and software systems, including design,

development, and application. I want to major in computer science (system track) which

mainly deals with the system and software. Computer Science has got a lot of career

opportunities where one can work. Some of them are software engineers, data analysts, java

developers, web designers, AI engineers, IT, and Video game developers. My career goal is

to be a data analyst upon graduation. As computer science provides many opportunities in the

context of a career inside the course and the job market is very high in the context of a data

analyst, I have chosen to be a data analyst. The pay scale of the computer science major is

high compared to other majors. In the context of easy settlement, computer science is one of

the best majors as it doesn’t specifically require a doctorate or a very high education level to

work. People with proper coding knowledge can work without having a college degree. The

market is unsaturated, and it is still becoming famous around the world as all the works are

dependent in some context on technology. For example, a software company doesn’t need a

petroleum engineer, but a gas project company needs a software engineer. Graduating in

computer science is like having every experience at once. Computer scientists can work in

every company regardless of their major concentrated company. The analysis of the

computer science market with their demand and supply with the potential increase in

employment and salary over time is presented.

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Employment Projection
1,100,000

1,050,000 f(x) = 15060.6060606061 x − 29347090.9090909

1,000,000
Demand

950,000

900,000

850,000

800,000
2008 2010 2012 2014 2016 2018 2020
Supply over the time

The projected employment of computer science in the U.S is greater than the supply,
from the Bureau of Labor
Statistics Job Outlook. Supply is based on National
attracting more people to come
Center for Education Statistics data on annual
Computer Science BS degrees awarded.
towards computer science. We can see

a huge increase in the projected employment due to the high demand for software developers

over time. The sharpest growth in employment occurred during the starting of half of the

1990s when the introduction of the Internet came for commercial purposes. This is the real

reason which boosted productivity and increased the demand for workers in computer

science. The demand is higher than the supply. The market is not saturated.

Over the time frame, we have found that

the Median wage for the Computer
Science Degree is higher than for
others’ bachelor’s degrees. Even more
than that, the age group between 25 to
29 has a higher income than the people Fig: 2 Relative Median Annual Wage
working in Computer Science between https://nap.nationalacademies.org/
the age group of 30 to 34. The average pay rate for read/24926/chapter/14#174
the computer science degree is about 1.2 times the
pay rate of other bachelor’s degrees. The national medium annual wage for the computer and
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information technology occupation was $86,320 in May 2018, according to the U.S Bureau
of Labour Statistics. Additionally, The Median Salary is $38,640 greater than all other
occupations.

Here, is the market analysis of Computer Science Labor in

the coming future. The S1 and D1 indicate the initial
supply, Demand of the Computer Science Labor Market.
The S2 and D2 are the final supply and demand for
computer science. Likewise, W1, L1, W2, and L2 are the
initial and final wages and Labor demands of computer
science. The E1 and E2 are the initial and final equilibrium.
There are a lot of aspects that are increasing the demand
for computer science in the labor market. With the
increasing industrialization, and automation of jobs the
demand for computer science is increasing. Computer
science is the only labor market where automation of the jobs and developing technology will
foster the job market more than expected. The substitution effects don’t imply for the
computer science market due to technology. As technology develops, and other jobs get
substituted the demand for computer science majors will increase. As the average salary of
computer science is more than another major with a bachelor’s degree, the supply of labor is
also increasing. As time passes there is an increase in demand. The supply of labor for the
computer science market is less than the demand for it. More people are invested in
developing themselves in tech careers rather than others. And this more demand and less
supply have created an imbalance in the market due to which the wages of the computer
science major are increased. As time passes, the demand for the computer science major
increases faster than its supply due to which people can expect a rise in wages. This is the
reality of technology which gives a lot of opportunities and good income in a short period.
From the graph, the demand shifts to D2 due to an increase in employment opportunities for
computer science. Due to an increase in demand, and more opportunities the supply also
shifts to the right increasing the supply to S2 from where a new equilibrium point E2 is
obtained. This is a special case where even after increasing the labor, supply, and demand,
the wages also increase due to huge demand and less supply. The technological career is so
advanced that it is impossible to substitute it with other jobs.

Having a bachelor’s degree and computer science skills matters a lot in the future as
everything for a career is curved by education. Education is the investment that is returned
through its implementation in the job, market or any other market of its appliance. Spending
thousands of dollars on education makes it worth it. People having a bachelor’s degree in the
field or some sort of computer skills or education earns more than people who choose to work
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initially without education in another field. The total cost and return of having an education
are sorted below.
The overall cost of education has become clear that I will be spending $34728.00 for 4 years
over my general University fees which include tuition, books, etc. As I have been awarded
the scholarship amount of $9500.00 per year, so I subtract the scholarship amount from the
actual tuition and other fees which make around $18182.00 per year. The accounting cost of
studying at this University equals $81,138 for 4 years.
Let’s calculate the economic profits of getting my degree here. I am calculating the total
revenue keeping in mind that I will continue to be working for additional at least 20 years of
my life after graduation. The basic minimum annual wage for Computer Science is $61,023
for 2022 according to the data provided by the Zip recruiter. I deducted the economic costs
from total revenue to find out the economic profit.
Total Cost for attending University for 4 years= $81,138
Total Income after Graduation for 20 years = $1,220,460
Total Economic Surplus = $1,139,322
This economic surplus is due to the education I will be getting at the university. Whatever the
costs would be, I believe getting a degree here is not only fruitful in terms of how much I
would make but also, I feel happy thinking about my dream of becoming a Computer Science
major and helping my country in any possible way in the path of development is not that far
away. I had not known to do analysis based on economic principles, but I can now which
gives me further motivation to complete my degree on time.
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Work Cited
1. United States Department of Labor. Bureau of Labor Statistics. “Occupational Employment
and Wages for Computer Science”. Accessed on: 01 April 2022
https://www.bls.gov/oes/current/oes172141.htm/

2. National Academies. “Relative Median Annual Wage”. Accessed on 30, March 2022
https://nap.nationalacademies.org/read/24926/chapter/14#174

3. ” Employment projection”. Bureau of Labor Statistics Job Outlook. “Supply” National Center for
Education Statistics data on annual Computer Science BS degrees awarded. Accessed on: 30,
March 2022