The Disappearing Workforce: A Focus on STEM Skills Shortage
Written on
In the United States, one pressing issue for human resources (HR) experts is the diminishing number of workers proficient in STEM (science, technology, engineering, and mathematics). Many in the HR field are concerned that this shortfall will have serious repercussions for the labor market in the near future.
Understanding STEM
STEM refers to the disciplines of Science, Technology, Engineering, and Mathematics. This encompasses various fields including life sciences (excluding medical sciences), physical sciences, mathematics, statistics, computing, and engineering. From an educational perspective, STEM promotes an interdisciplinary approach where rigorous academic theories are combined with practical applications. This method allows students to engage with real-world challenges, enhancing their understanding and capacity to thrive in a globally competitive economy.
Conversely, within the workforce, the application of STEM skills has distinct implications. There is a heightened focus on equipping workers with modern skills that are immediately applicable in professional settings. In many industries, utilizing technology means innovatively addressing challenges and employing new materials. Companies, particularly in sectors like biochemistry, engineering, computer programming, and new technologies, require workers who can think critically and devise rapid, cost-effective solutions. While these industries are among the primary employers of high-skill STEM workers, other sectors, including construction, transportation, and hospitality, are also seeking STEM expertise to enhance their operational efficiency. The complexity of tasks such as understanding internal combustion engines or optimizing transportation routes demands advanced technical knowledge and problem-solving skills, creating a significant HR challenge that has emerged over the past decade (NSTA, 2012).
Concerns of Human Resources Professionals
A staggering 3.3 million tech jobs are unfilled in the U.S., with half of employers indicating difficulty in finding suitable candidates. The significance of STEM skills to economic development cannot be overstated. A report titled “Refueling the U.S. Innovation Economy — Fresh Approaches to Science, Technology, Engineering and Mathematics (STEM) Education” emphasizes that just as industry relies on natural resources to grow, the tech economy cannot expand without a sufficient number of qualified STEM graduates.
Many businesses are alarmed by the looming shortage of STEM-skilled professionals, as numerous academic analyses suggest that insufficiently skilled personnel may hinder economic expansion, particularly in developed nations like the U.S.
Historically, the U.S. has been a leader in producing top-tier research scientists and engineers, facilitating groundbreaking advancements in science and technology. Such innovations have been instrumental in propelling U.S. economic growth, with studies attributing half of the nation’s growth over the past fifty years to productivity improvements driven by innovation. The advancements in computer technology and biomedical fields since the late 20th century have had transformative effects on both the U.S. and the global landscape.
In the current global economy, the demand for STEM professionals is more urgent than ever as technological advancements enhance the competitiveness of U.S. industries, boost export growth, and create high-quality employment opportunities. The need for STEM expertise is even penetrating traditionally non-STEM sectors due to the widespread integration of technology. Enhanced technological capabilities not only improve working conditions and salaries but also necessitate that workers possess the requisite skills for success in STEM-oriented roles. Thus, fostering access to high-quality STEM education is essential for bolstering the U.S. workforce, promoting economic growth, and ensuring competitiveness.
The trend of increasing demand for STEM professionals is projected to persist. According to the New Bureau of Labor Statistics, jobs in STEM fields are anticipated to grow at a faster rate than non-STEM jobs between 2010 and 2020 (Chairman’s Staff of the Joint Economic Committee, 2011).
The economic downturn known as the Great Recession significantly impacted the growth rates of both STEM and non-STEM employment. For example, the construction and extraction sectors are projected to expand by over 20 percent in this decade. Similarly, jobs in computing and mathematics are expected to see similar growth, though the recovery in construction is largely due to previous job losses during the recession, while computing and mathematics fields have thrived despite economic challenges.
Alongside government forecasts of employment growth in STEM disciplines, numerous reports and surveys from business organizations highlight the increasing demand for qualified STEM workers, particularly those with specialized skills. Nevertheless, there is also a desire for a workforce with a broader understanding of STEM concepts. During the Great Recession, a survey revealed that over a third of manufacturers were struggling to find engineers and scientists, with many anticipating an even greater shortage in the future (People and Profitability: A Time for Change, 2009). Another study indicated that over half of manufacturers believe the public education system is failing to adequately prepare students in essential math and science skills (2005 Skills Gap Report, 2005). Moreover, the impending retirement of many Baby Boomers in both private and public sectors compounds concerns about a skilled workforce.
Leading tech firms in the U.S., such as Apple, Facebook, Cognizant, and Amazon, are projected to create over 650,000 new jobs by 2018, with two-thirds of these positions requiring STEM skills (Bureau of Labor Statistics, 2010–11). Google, for example, aggressively hired more than 6,200 employees in 2011, primarily in computer engineering roles. However, it’s not only technology companies that are on the lookout for STEM talent; established sectors like finance, utilities, and chemicals are also seeking individuals with STEM proficiencies. For instance, the insurance industry is in search of graduates in mathematics, finance, physics, and engineering who can conduct advanced predictive analytics and comprehensive risk assessments (O’Donnell, 2010). Similarly, the utilities sector is grappling with a shortage of electrical engineers to meet rising energy demands and innovate clean energy and smart grid technologies (Accenture, 2008). This competition for STEM talent from industries such as utilities and insurance is intensified by the appeal of tech companies.
Despite the evident demand for STEM-skilled workers, the U.S. is falling short in producing a sufficient supply to meet the needs of both STEM and non-STEM employers. The current educational system in America leaves many students without access to quality STEM education, whether in igniting an interest in the field or equipping those with the potential and capability to pursue STEM careers. Existing statistics on STEM education underscore the substantial challenges facing educators and policymakers, highlighting the urgent need for the U.S. to strengthen its STEM workforce in order to remain competitive globally.
The U.S. is lagging behind other nations in producing an adequate number of STEM graduates. Countries such as Canada, Mexico, and several European nations, including Germany, graduate a higher proportion of STEM students relative to total degrees than the U.S. (Organization for Economic Co-Operation and Development). This trend persists when examining STEM graduates among employed individuals aged 25–34, where the U.S. ranks 23rd globally. Furthermore, American students' performance on international assessments reveals issues in the STEM pipeline, suggesting that challenges in U.S. STEM education begin at the elementary level and persist through secondary and post-secondary education.
Exploring the Shortage
Research indicates that the shortage of STEM professionals originates earlier in the education pipeline than previously thought. Fundamental issues in the U.S. educational system may contribute to this shortage. Without a solid foundation in math and science from a young age, students may be ill-prepared to pursue STEM-related careers. K-12 curricula often lack depth in science and technology, which is insufficient for preparing students for STEM fields. Moreover, attracting and retaining qualified individuals to teach STEM subjects at the K-12 level is challenging due to more lucrative opportunities outside of education (Temin, 2003). While the quality of math and science instruction is crucial for enhancing student performance in STEM areas, many K-12 educators lack hands-on experience in these fields (Business Higher Education Forum, 2007). The National Science Foundation (NSF) has reported that a significant percentage of middle school science and math teachers lack formal training in their subjects (Science and Engineering Indicators, 2012).
Additionally, there is a pressing need to emphasize the advantages of STEM education to students. College students may lack essential information regarding career opportunities, hindering informed decisions about their academic paths. Younger students, on the other hand, may not have adequate mentors to guide them. Mentorship is vital in influencing students’ choices to pursue STEM degrees and careers, particularly for women and underrepresented minorities. Furthermore, the absence of hands-on activities in classrooms can diminish student interest; those who engage in STEM-related extracurricular activities, such as science fairs and clubs, are more likely to pursue careers in these fields.
STEM in Higher Education
The importance of higher education in science and engineering extends beyond cultivating a skilled workforce; it fosters an informed and engaged citizenry, which is essential for U.S. economic competitiveness. President Obama has advocated for enhanced science and engineering education, encouraging every young American to commit to a year of education or vocational training following high school.
Post-secondary education is critical for developing a robust STEM workforce for the future. However, the U.S. often loses potential STEM graduates. National statistics indicate that over half of freshmen who initially declare STEM majors abandon these fields before graduation (Chen, 2009; Higher Education Research Institute, 2010). Additionally, more than half of STEM bachelor’s degree holders transition to non-STEM disciplines upon entering graduate school or the job market (Lowell et al., 2009; National Science Board, 2012). Other studies suggest that many students leaving STEM were high achievers who could have contributed significantly to the workforce (Seymour and Hewitt, 1997; Lowell et al., 2009).
Several factors contribute to this STEM attrition. Women, underrepresented minorities, first-generation college students, and those from low-income backgrounds leave STEM fields at higher rates than their peers (Anderson and Kim, 2006; Hill, Corbett, and Rose, 2010; Griffith, 2010; Huang, Taddese, and Walter, 2000; Kokkelenberg and Sinha, 2010; Barbuti, 2010). Furthermore, students with weaker academic foundations experience higher rates of attrition in STEM fields (Astin and Astin, 1992; Kokkelenberg and Sinha, 2010; Mendez et al., 2008; Shaw and Barbuti, 2010; Strenta et al., 1994; Whalen and Shelley, 2010). Cultural factors also negatively influence students’ motivation, self-confidence, and perception of their abilities in STEM subjects. Additionally, STEM degrees often require more time to complete than other fields, making financial aid crucial for retention.
Proposed Solutions
The shortage of STEM workers is a significant concern for employers. To boost the number of qualified STEM employees and establish a strong workforce, solutions must start in educational settings. Nevertheless, reforms in academia must be paired with adequate funding for research and development, alongside a commitment from businesses to invest in future innovations.
Enhancing STEM education in K-12 settings and guiding more young people into STEM pathways will be ineffective if higher education remains unaffordable or inaccessible. If the post-secondary system fails to support talented youth interested in STEM careers, providing them with the necessary degrees and skills, companies will continue to struggle. Maintaining Pell Grants and other federal support for higher education is crucial. It is also essential to focus on developing vocational education options that equip young individuals with STEM skills and certifications relevant to 21st-century jobs, even if they do not lead to a bachelor’s or advanced degree.
Improving science and math education in American elementary and secondary schools is vital for harnessing the economic benefits of technological innovation and ensuring equitable distribution of those gains. Unfortunately, educational budgets have faced severe cuts due to the recession. At least 23 states have implemented significant reductions in pre-kindergarten and K-12 funding (Leachman, Johnson, Williams, 2011). Regrettably, science programs are often the first to face cuts as funding dwindles and they are not prioritized under No Child Left Behind (Bryant). Substantial reductions in federal education funding will further impede the U.S.’s ability to prepare its youth to compete in the global economy.
I advocate for legislation that supports K-12 STEM education, such as the Innovate America Act, which directs the Secretary of Education to provide grants to expand STEM-focused secondary schools and requires the National Science Foundation to award colleges that see significant increases in STEM degree recipients. This bill was assigned to a congressional committee on November 21, 2013, for further consideration.
Another noteworthy piece of legislation is the Effective STEM Teaching and Learning Act of 2011, which aims to offer competitive grants to states to enhance K-12 STEM education, including improving professional development for STEM educators and resources used in STEM curricula. This bill allows states to allocate up to 20 percent of their grant for state-level STEM initiatives, such as developing comprehensive state STEM plans. This bill was introduced to Congress on March 2, 2011, but did not pass; it is critical that this issue is revisited.
The Preparing Students for Success in the Global Economy Act of 2011 is another initiative aimed at improving STEM education by providing grants to state educational agencies, which will then be used to support high-need local agencies in enhancing preschool, elementary, and secondary STEM education. The act emphasizes recruiting, training, and supporting STEM teachers, as well as developing high-quality STEM curricula. Finally, this bill promotes the integration of STEM instruction with other academic subjects.
The STEM 2 Act instructs the Secretary of Education to award competitive planning grants to states, tribal organizations, nonprofits, and educational institutions for creating effective STEM networks that facilitate collaboration among public and private STEM stakeholders. It also aims to identify future STEM occupational skills needed in the workforce and includes a grant program for developing, implementing, and assessing STEM training programs for K-12 educators.
Addressing the labor shortage early in the STEM pipeline can significantly increase the supply of qualified STEM professionals. However, HR departments in various companies can also proactively tackle this issue by instituting internships and training programs designed to equip workers with diverse skills across industries. For instance, Bayer Corp. has partnered with community colleges to train students as process technology operators, successfully hiring a majority of their interns. They have also launched a manufacturing trainee program across North America, recruiting high-potential graduates for internships and rotational engineer positions. Additionally, Bayer is testing a volunteer STEM retention program at its Pittsburgh facility, where employees gain leadership training and serve as nonprofit board members. They are also re-evaluating job qualifications, allowing certain positions to be filled by candidates with a bachelor's degree or lab technician experience instead of requiring a Ph.D.
It’s important to note that not all individuals with STEM degrees are employed in STEM roles; many graduates in fields like chemistry or engineering are drawn into finance or sales. This phenomenon creates an artificial shortage of STEM workers, as the demand for STEM skills spans various occupations. Therefore, STEM education should encompass skills applicable across multiple disciplines.
Other strategies include passing national legislation to simplify STEM visa processes for foreign students with relevant skills. Approximately 60 percent of foreign graduate students in the U.S. are enrolled in science and engineering programs. As Bill Gates, co-founder of Microsoft, points out, restrictive immigration policies hinder U.S. economic competitiveness. If a foreign student is offered a job with a salary above $100,000, discouraging that opportunity is counterproductive.
Despite over 40 percent of students in Master's and Ph.D. programs being foreign-born, navigating the visa landscape is challenging for them, often forcing them to leave after their student visas expire. Many U.S. companies, particularly smaller ones, face difficulties and high costs in recruiting qualified STEM employees and securing work visas. Moreover, those on work-specific visas may be deterred from starting their businesses due to visa expiration issues (Franta-Abdalla, 2014).
Another recommendation is to attract and retain more women in STEM fields. A 2011 study by the U.S. Department of Commerce found that only about 24 percent of employees in computer science and math roles are women. Gender barriers persist, preventing women from entering STEM jobs, and those who do often exit these roles early in their careers. Women represent half of the U.S. workforce, and if they entered STEM fields at rates comparable to men, the skills shortage would likely be resolved.
Additionally, developing alternative education programs, such as apprenticeships, could provide viable pathways for employers seeking STEM workers. Initiatives like Enstitute, which offers a two-year apprenticeship for 18-24 year-olds, could help bridge this gap. Participants work at tech startups while receiving training in both front and back-end development.
Conclusion
The shortage of STEM-skilled workers in the U.S. has sparked considerable discussion. As the economy gradually recovers and millions of job openings are anticipated in the coming years, the demand for educated individuals to fill these roles is growing. Without proactive measures, the U.S. risks stifling innovation and competitiveness, hampering the development of new ideas, businesses, and industries. Consequently, HR departments across all sectors are racing to recruit qualified STEM professionals.
Thus, it is vital that legislation supporting STEM initiatives is enacted, ensuring adequate funding for STEM education, especially at the foundational levels, while employers make concerted efforts to attract, retain, and train the right talent for STEM careers.
References
(National Science Teachers Association (NSTA), 2012)
Atkinson, R. & Mayo, M. (2010). Refueling the U.S. Innovation Economy: Fresh Approaches to Science, Technology, Engineering and Mathematics (STEM) Education,” The Information Technology & Innovation Foundation: Accenture: Institute for High Performance. Retrieved April 1, 2014, from http://www.accenture.com
U.S. Department of Commerce’s Economics and Statistics Administration report, “STEM: Good Jobs Now and for the Future.” ESA Issue Brief #03–11. July 2011. Retrieved April 1, 2014, from esa.doc.gov/sites/default/files/reports/documents/stemfinalyjuly14_1.pdf
Deloitte Consulting LLP, The Manufacturing Institute, and Oracle Corporation. “People and Profitability: A Time for Change.” 2009. Available at deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_pip_peoplemanagementreport_100509.pdf.
Deloitte Consulting LLP and The Manufacturing Institute. “2005 Skills Gap Report–A survey of the American Manufacturing Workforce.” 2005. Available at doleta.gov/wired/files/us_mfg_talent_management.pdf.
Organization for Economic Co-Operation and Development. OECD.StatExtracts. Graduates by Field of Education. Retrieved on April 18, 2014 at stats.oecd.org/Index.aspx
Temin, P. (2003). “Low Pay, Low Quality.” Education Next. Vol. 3. Summer 2003. Retrieved on April 18, 2014 at educationnext.org/low-pay-low-quality/
Business Higher Education Forum. “An American Imperative: Transforming the Recruitment, Retention, and Renewal of Our Nation’s Mathematics and Science Teaching Workforce.” 2007. Retrieved on April 18, 2014 at bhef.com/solutions/documents/AnAmericanImperative.pdf.
The percentage of teachers lacking in-field training drops to seven percent for high school biology/life sciences teachers, 18 percent for high school physical sciences teachers, and 12 percent for high school math teachers; See National Science Foundation, National Science Board. “Science and Engineering Indicators 2012.” NSB 12–01. 2012. Retrieved on April 18, 2014 at nsf.gov/statistics/seind12/pdf/seind12.pdf.
Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2010–11 Edition, Computer Systems Design and Related Services. Retrieved April 21, 2014 at http://www.bls.gov/oco/cg/cgs033.htm.
O'Donnell, A. (2010). “Demand for Sophisticated Risk Management Capabilities Increasing,” Insurance & Technology, April 15, 2010. Retrieved April 21, 2014 at http://www.insurancetech.com/security/224400279?pgno=1.
Accenture. (2008). “Talent management at peak capacity: The utilities industry’s challenge and the way forward to achieve high performance.”
Leachman, M., Johnson, N., & Williams, E. (2011). “State Budget Cuts in the New Fiscal Year Are Unnecessarily Harmful.” Center on Budget and Policy Priorities. July 28, 2011. Retrieved April 21, 2014 at cbpp.org/cms/index.cfm?fa=view&id=3550.
Bryant, J. (2011). “Starving America’s Public Schools: How Budget Cuts and Policy Mandates are Hurting our Nation’s Students.” Campaign for America’s Future and the National Education Association. Retrieved April 21, 2014 at ourfuture.org/files/documents/starving-schools-report.pdf.
Franta-Abdalla, L. (2014). “Something Amazing Would Happen to America if We Passed Immigration Reform”. Retrieved April 21, 2014 at http://www.policymic.com