What is STEM?

STEM stands for Science, Technology, Engineering, and Mathematics. This term encompasses a variety of disciplines, including life sciences (excluding medical sciences), physical sciences, mathematics, statistics, computing, and engineering. From an educational perspective, STEM promotes an interdisciplinary approach to learning, where theoretical concepts are integrated with real-world applications. This method encourages students to apply their knowledge in contexts that relate to their communities, industries, and global markets, ultimately fostering a higher level of STEM literacy essential for competing in today's global economy.

From a workforce perspective, the application of STEM is often focused on cultivating workers equipped with 21st-century skills that are immediately applicable in the workplace. Companies are increasingly looking for innovative thinkers who can devise quick, cost-effective solutions to problems. Fields such as biochemistry, engineering, computer programming, and emerging technologies are particularly in need of problem-solvers. Notably, industries like construction, transportation, and hospitality are also anticipating a rise in demand for STEM-skilled workers to remain competitive. The technical knowledge and problem-solving abilities required for roles in these sectors have evolved significantly, creating a challenge for HR professionals that didn't exist a decade ago (NSTA, 2012).

The Impact of STEM Shortages on Businesses

Why are HR professionals alarmed about the shortage of STEM-skilled workers? Currently, there are approximately 3.3 million technology job openings in the U.S., yet half of employers report difficulties in finding qualified candidates. STEM competencies are vital for economic development. According to the report "Refueling the U.S. Innovation Economy — Fresh Approaches to Science, Technology, Engineering and Mathematics (STEM) Education," the expansion of technology industries is heavily reliant on a skilled workforce:

"Just as we would be unable to expand industry if we lacked the natural resource materials to build the factories (e.g., cement), or energy to power the plants, we cannot expand our technology economy without the needed human resources, in this case high-quality STEM graduates."

Many businesses fear that a continuous lack of STEM-skilled workers could impede economic expansion, particularly in advanced economies like the United States.

Historically, the U.S. has been a leader in producing top research scientists and engineers, which has fueled significant advancements in science and technology. Such innovations have played a crucial role in U.S. economic prosperity, with studies indicating that half of the economic growth over the past fifty years can be traced back to productivity improvements driven by innovation. The late 20th century saw remarkable progress in computing, information technologies, and biomedical advancements, fundamentally altering life in America and around the globe.

In today’s interconnected economy, the need for STEM workers is amplified as technological advancements enhance the competitiveness of U.S. industries, promote export growth, and create high-quality jobs. The demand for STEM skills is also spreading into sectors traditionally considered non-STEM due to the integration of technology across various industries and job roles. Improved access to quality STEM education is essential for reinforcing the U.S. workforce, driving economic growth, and ensuring the country's continued competitiveness.

The forecast for STEM employment is optimistic, with projections indicating that jobs in STEM fields will grow at a faster rate than non-STEM occupations between 2010 and 2020 (Chairman's Staff of the Joint Economic Committee, 2011).

The Great Recession significantly affected employment growth in both STEM and non-STEM sectors. For example, jobs in construction and extraction are expected to rise by over 20 percent during this decade, while computing and mathematical occupations are also projected to expand by over 20 percent. The growth in construction jobs is largely attributed to recovery from past employment losses, whereas the demand for computing and mathematics roles reflects additional job creation beyond those lost during the recession.

In light of government employment growth forecasts in STEM fields, numerous reports and surveys from business organizations highlight an increasing need for qualified STEM workers, particularly individuals with specialized skills. However, there is also a desire for a workforce that possesses a broader understanding of STEM concepts. Amid the Great Recession, a survey revealed that over one-third of manufacturers were struggling to find engineers and scientists, with expectations for further shortages in the future (People and Profitability: A Time for Change, 2009). Another study indicated that more than half of manufacturers believe the public education system inadequately prepares students with the math and science skills necessary to thrive in the workforce (2005 Skills Gap Report, 2005). Additionally, concerns about the shortage of skilled workers are heightened by the impending retirement of many Baby Boomers in both private and public sectors.

As technology companies such as Apple, Facebook, Cognizant, and Amazon anticipate filling over 650,000 new positions by 2018, two-thirds of these new hires will require STEM skills (Bureau of Labor Statistics, 2010–11). Google alone recruited over 6,200 employees in 2011, primarily in computer engineering. The competition for STEM workers extends beyond tech firms, as many traditional industries like financial services, utilities, and chemicals also seek employees with STEM competencies. For instance, in the insurance sector, employers are on the lookout for graduates in mathematics, finance, physics, and engineering for roles in predictive analytics and risk modeling (O'Donnel, 2010). Similarly, the utilities sector is in need of electrical engineers to meet rising energy demands and to develop clean energy solutions (Accenture, 2008). The competition for STEM talent from appealing technology companies such as Samsung, Apple, and Twitter intensifies the challenge.

Despite the evident demand for STEM-skilled workers, the U.S. is falling short in producing an adequate supply to meet the increasing needs of employers in both STEM and non-STEM fields. The existing educational framework leaves many students without access to quality STEM education, hindering their ability to cultivate interest in STEM or to pursue relevant degrees. Current statistics on STEM education in the U.S. underscore the significant challenges facing educators and policymakers. It is clear that the U.S. must take decisive action to build a robust STEM workforce to maintain competitiveness in the global market.

International Comparisons and Educational Challenges

When compared to other nations, the U.S. lags in providing a sufficient supply of STEM graduates. Countries like Canada, Mexico, and several European nations, including Germany, produce a higher proportion of STEM graduates relative to their total degrees (Organization for Economic Co-Operation and Development). This trend persists among employed individuals aged 25–34, with the U.S. ranking 23rd globally. American students' performance on international standardized tests indicates issues within the STEM educational pipeline, suggesting that problems begin in elementary education and persist through secondary and post-secondary levels.

Why is There a STEM Shortage?

Research indicates that the shortage of STEM professionals begins earlier in the educational pipeline than previously recognized. Fundamental educational deficiencies in the U.S. may contribute to a shortage of qualified STEM workers. Without a solid foundation in math and science during elementary and secondary schooling, students may be ill-prepared to pursue careers in STEM fields. K-12 curricula often lack depth in science and technology, which may not sufficiently equip students for future STEM studies. Moreover, attracting and retaining qualified STEM educators in K-12 settings is challenging, as higher salaries and better employment opportunities exist in non-educational sectors (Temin, 2003). Although the quality of math and science instruction is the most significant factor in improving student outcomes in STEM, many K-12 educators lack practical experience in STEM fields (Business Higher Education Forum, 2007). For example, the National Science Foundation (NSF) found that 36 percent of middle school science teachers and about 30 percent of middle school math teachers lack field training (Science and Engineering Indicators, 2012).

Furthermore, there is a need to better communicate the advantages of STEM education to students. College students may lack sufficient information about career opportunities, affecting their choices in course selections. Younger students may also lack mentors who can guide them in their pursuit of STEM degrees, particularly women and minorities. Additionally, inadequate hands-on learning experiences in the classroom can diminish student interest. Students with more exposure to STEM-related activities such as science fairs and projects are more likely to pursue STEM careers.

STEM Education in Higher Learning

According to the National Science Foundation's Science and Engineering (S&E) Indicators 2012, higher education in science and engineering is critical not only for producing a knowledgeable workforce but also for fostering an engaged and informed community, which is essential for U.S. economic competitiveness. President Obama advocated for enhanced science and engineering education in his address to Congress on February 24, 2009, urging that every young American commit to at least one year of education or vocational training following high school.

Post-secondary education plays a vital role in developing a strong STEM workforce for the future. However, the U.S. higher education system often fails to retain potential STEM graduates. National statistics reveal that more than half of freshmen declaring STEM majors leave these fields before graduation (Chen 2009; Higher Education Research Institute 2010), and many STEM degree holders switch to non-STEM disciplines upon entering the workforce or graduate studies (Lowell et al. 2009; National Science Board 2012). Other research suggests that many of these dropouts are high-performing students who would have positively contributed to the STEM workforce had they remained in those fields (Seymour and Hewitt 1997; Lowell et al. 2009).

Several factors contribute to STEM attrition, including the higher dropout rates among women, underrepresented minorities, first-generation students, and individuals from low-income backgrounds (Anderson and Kim 2006; Hill, Corbett, and Rose 2010; Griffith 2010; Huang, Taddese, and Walter 2000; Kokkelenberg and Sinha 2010; Barbuti 2010). Additionally, students with weaker academic backgrounds tend to leave STEM fields more frequently (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 attitudes can also adversely affect students' motivation, self-confidence, and beliefs regarding their capabilities in learning STEM subjects. The longer completion times for STEM degrees may make financial aid availability even more critical in retaining students in these programs.

Strategies for Improvement

The STEM worker shortage is a pressing issue for many employers. To cultivate a robust STEM workforce, solutions must begin in the classroom. However, academic reforms must be accompanied by sufficient funding for research and development, along with a commitment from businesses to invest in future innovation.

Enhancing STEM education at the K-12 level and guiding more young individuals into the STEM pipeline will be ineffective if college remains unaffordable or inaccessible. If the post-secondary education system fails to successfully equip talented youth interested in STEM careers with the necessary degrees and skills, companies will continue to face challenges in filling positions. Continued support for Pell Grants and other federal educational resources is essential, as is the development of career and technical education options that provide young people with the skills and certifications needed for 21st-century jobs, even if they do not result in a bachelor's or advanced degree.

Improving science and mathematics education in U.S. elementary and secondary schools is a prerequisite for capitalizing on the economic benefits of technological innovation and for ensuring equitable access to those benefits. Unfortunately, education budgets have been significantly reduced due to the recession, with at least 23 states implementing severe cuts to pre-kindergarten and K-12 funding (Leachman, Johnson, Williams, 2011). Regrettably, science programs are often among the first to be cut, as they are not assessed under No Child Left Behind (Bryant). Substantial reductions in federal education funding will hinder efforts to prepare young people for competitive roles in the global economy.

Legislation supporting K-12 STEM education, such as the Innovate America Act, is crucial. This act directs the Secretary of Education to allocate grants to state educational agencies to expand STEM-focused secondary schools and mandates the National Science Foundation to reward colleges with significant increases in STEM degree recipients. This bill was submitted to congressional committees on November 21, 2013, for consideration.

Another legislative initiative worth noting is the Effective STEM Teaching and Learning Act of 2011, which proposes a program to provide competitive grants to states to enhance STEM education from preschool to grade 12, including bolstering professional development for STEM teachers and improving curriculum resources. This bill was presented to Congress on March 2, 2011, but did not pass; however, it merits renewed consideration.

The Preparing Students for Success in the Global Economy Act of 2011 aims to allocate formula grants to states and subsequently award competitive sub-grants to high-need local educational agencies to improve STEM education across preschool, elementary, and secondary levels. This initiative would require sub-grants to support activities such as recruiting, evaluating, and training STEM educators, as well as enhancing high-quality STEM curricula and instructional materials.

The STEM 2 Act directs the Secretary of Education to offer competitive planning grants to states, tribal organizations, nonprofit entities, or institutions of higher learning for the development of effective STEM networks, fostering collaboration among public and private STEM stakeholders. It also aims to identify the future skill requirements within STEM occupations and establish competitive grant programs for developing and assessing STEM education training for K-12 teachers and administrators.

To enhance the supply of quality STEM workers, addressing the labor shortage early in the educational pipeline is vital. However, HR departments can also proactively tackle the shortage by implementing internships and training programs that allow workers to gain experience across various sectors. For instance, Bayer Corp. has partnered with community colleges to train students as process technology operators, hiring 90 percent of their 54 interns for positions at their facility. They have also initiated a manufacturing-focused trainee program in North America to recruit high-potential graduates from engineering programs for internships and full-time rotational positions. Additionally, Bayer is piloting a STEM retention program at its Pittsburgh facility, where employees receive training on nonprofit leadership and contribute to consulting teams for nonprofits. They are also reviewing job qualifications to potentially allow chemists with bachelor's degrees to fill roles that previously required a Ph.D., provided they receive specialized training from Bayer.

It is important to note that not all STEM graduates are engaged in STEM roles; many hold positions in sales or finance. Consequently, there exists an artificial vacuum for STEM workers, driven by the increasing demand for STEM competencies in various occupations. Therefore, STEM education should encompass skills applicable across multiple disciplines.

Further recommendations include passing national legislation to streamline STEM visa processes and facilitate the recruitment of foreign students with relevant skills to work in the U.S. Approximately 60 percent of all foreign graduate students in the U.S. are enrolled in science and engineering programs. As Bill Gates, founder of Microsoft, stated:

"The U.S. is undermining its own economic competitiveness through restrictive immigration policies. If a job offer exceeds $100,000, we should not hinder companies from pursuing that opportunity."

Despite over 40 percent of students in master's and Ph.D. programs being foreign-born, many are unable to invest their skills into U.S.-based enterprises due to challenges in obtaining H-1B visas or green cards after their student visas expire. As a result, numerous American companies, particularly smaller firms with limited resources, find it both costly and time-consuming to recruit qualified STEM employees and secure the necessary work visas. Foreign workers with valid visas may also be discouraged from launching their own ventures if their residency depends on the visa's expiration (Franta-Abdalla, 2014).

An additional strategy to boost the STEM workforce is to enhance the participation of women in STEM fields. A 2011 report from the U.S. Department of Commerce indicated that only 24 percent of employees in computer science and mathematics are women. Gender disparities continue to hinder women's entry into STEM roles, and even among those who succeed, many leave these positions early in their careers. As women constitute half of the U.S. workforce, increasing female representation in STEM fields could significantly alleviate the current shortage.

Lastly, alternative education programs, such as apprenticeships, should be developed to attract and retain STEM workers. Programs like Enstitute, which offers a two-year full-time apprenticeship for 18–24-year-olds, can provide valuable skills. Participants work at technology startups while receiving training in front-end and back-end development, ultimately specializing in areas such as technical development, design, or business in their second year.