U.S. Department of Commerce

Economics and Statistics Administration

By 

David Langdon, 

George 

McKittrick, 

David Beede, 

Beethika Khan, 

and 

Mark Doms, 

Office of the 

Chief Economist 

STEM: Good Jobs Now and for the Future

July 2011

Executive Summary

ESA 

Issue Brief 

#03-11

S

cience, technology, engineering and 

mathematics (STEM) workers drive our 

nation’s innovation and competitiveness by 

generating new ideas, new companies and 

new industries. However, U.S. businesses 

frequently voice concerns over the supply 

and availability of STEM workers. Over the 

past 10 years, growth in STEM jobs was 

three times as fast as growth in non-STEM 

jobs. STEM workers are also less likely to 

experience joblessness than their non-STEM 

counterparts. Science, technology, engineering and mathematics workers play a key role 

in the sustained growth and stability of the 

U.S. economy, and are a critical component 

to helping the U.S. win the future. 

7.9%

17.0%

2.6%

9.8%

0%

3%

6%

9%

12%

15%

18%

2000-10 growth 2008-18 projected growth

STEM employment

Non-STEM employment

Source: ESA calculations using Current Population Survey public-use microdata and estimates from the Employment 

Projections Program of the Bureau of Labor Statistics.

Figure 1. Recent and Projected Growth in STEM and Non-STEM Employment

Source: ESA calculations using Current Population Survey public-use microdata and estimates from the Employment Projections Program of the Bureau of Labor Statistics.

Figure 1. Recent and Projected Growth in STEM and Non-STEM Employment

In 2010, there were 7.6 million STEM workers in the United States, representing about 

1 in 18 workers.

STEM occupations are projected to grow by 

17.0 percent from 2008 to 2018, compared 

to 9.8 percent growth for non-STEM occupations. 

STEM workers command higher wages, 

earning 26 percent more than their nonSTEM counterparts.

More than two-thirds of STEM workers have 

at least a college degree, compared to less 

than one-third of non-STEM workers. 

STEM degree holders enjoy higher earnings, 

regardless of whether they work in STEM or 

non-STEM occupations.
2 U.S. Department of Commerce, Economics and Statistics Administration

What is STEM?

In 2010, 7.6 million people or 1 in 18 workers held 

STEM jobs. Although STEM employment currently 

makes up only a small fraction of total U.S. employment, STEM employment grew rapidly from 2000 to 

2010, increasing 7.9 percent. In contrast, employment in non-STEM jobs grew just 2.6 percent over 

this period (see Figure 1). STEM jobs are projected to 

grow at a fast pace relative to other occupations. 

From 2008 to 2018, STEM jobs are expected to grow 

17.0 percent compared to just 9.8 percent for nonSTEM jobs.5 

Workers in STEM occupations also earn more on average than their counterparts in other jobs, regardless of their educational attainment. The STEM earnings differential is greatest for those with a high 

school diploma or less in comparison to their counterparts in a non-STEM field. On average, they earned 

almost $25 per hour, $9 more per hour than those in 

other occupations in 2010. It should be noted, however, that only about 1 out of every 10 STEM workers 

has a high school diploma or less. Those with graduate degrees in a STEM job earned more than $40 per 

hour, nearly $4.50 more per hour on average than 

those with non-STEM jobs.

The comparison of wage premiums raises several 

questions, including to what extent the STEMearnings premium reflects other characteristics of 

workers, such as age, and how premiums have 

evolved over time. A regression analysis – which controls for a variety of demographic, geographic, and 

other worker characteristics – helps to address these 

questions. Using Current Population Survey publicuse microdata for 1994-2010, we regressed the log of 

earnings against a standard list of characteristics that 

have typically been found to be related to earnings 

including age, marital status, race, ethnicity, region 

and industry.6 kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk

After controlling for this set of characteristics, the 

STEM Employment and Worker 

Earnings

The acronym STEM is fairly specific in nature—

referring to science, technology, engineering and 

math—however, there is no standard definition for 

what constitutes a STEM job. Science, technology, engineering and math positions consistently make the 

lists of STEM occupations, but there is less consensus 

about whether to include other positions such as educators, managers, technicians, health-care professionals or social scientists. In this report, we define STEM 

jobs to include professional and technical support occupations in the fields of computer science and mathematics, engineering, and life and physical sciences. 

Three management occupations are also included because of their clear ties to STEM.1

Because of data limitations, education jobs are not included.2 Further, we 

elected not to include social scientists.3 

Our STEM list contains 50 specific occupation codes 

(see Appendix Table 1), and in 2010, there were 7.6 

million workers in these jobs, or 5.5 percent of the 

workforce. To better put these jobs into context, we 

divide STEM occupations into four categories: computer and math, engineering and surveying, physical 

and life sciences, and STEM managerial occupations.4 

Across all levels of educational attainment, the largest 

group of STEM jobs is within the computer and math 

fields, which account for close to half (46 percent) of 

all STEM employment. Second are engineering and 

surveying occupations with one-third of all STEM employment, while 13 percent are in the physical and life 

sciences, and 9 percent in STEM management jobs.

Parallel to our list of STEM occupations, we also identify a set of STEM undergraduate degree fields that 

span computer science and mathematics, engineering, 

and life and physical sciences (see Appendix Table 2). 

We define STEM degree holders as persons whose primary or secondary undergraduate major was in a 

STEM field. Following similar logic to what we used in 

our occupation selection, we exclude business, healthcare, and social science majors. 
U.S. Department of Commerce, Economics and Statistics Administration 3

earning premium diminishes somewhat. However, the fundamental result that STEM workers enjoy large earnings premiums persists, 

most predominantly for workers with less than 

a college degree. STEM earnings premiums 

have also shown persistence over time, and 

have generally increased since the mid-1990s 

(see Figure 2). In 2010, workers in STEM jobs 

with less than a bachelor’s degree enjoyed a 

large premium (more than 30 percent) compared with non-STEM workers with the same education level, even after taking other influences on earnings into account.7

 The regression-based premiums in 

2010 were slightly less for workers with a bachelor’s 

(23 percent) or graduate degree (12 percent), and 

relatively closer to the premiums found in the simple 

comparison (without a regression adjustment). The 

overall regression-based STEM premium was 26 percent in 2010, up from 18 percent in 1994.8 

Average hourly earnings Difference

STEM Non-STEM Dollars Percent

High school diploma or less $24.82 $15.55 $9.27 59.6%

Some college or associate degree $26.63 $19.02 $7.61 40.0%

Bachelor's degree only $35.81 $28.27 $7.54 26.7%

Graduate degree $40.69 $36.22 $4.47 12.3%

Table 1. Average Hourly Earnings of Full-Time Private Wage and Salary Workers in STEM 

Occupations by Educational Attainment, 2010

Source: ESA calculations using Current Population Survey public-use microdata and estimates from the Employment Projections Program of the 

Bureau of Labor Statistics.

0%

5%

10%

15%

20%

25%

30%

35%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1994 1996 1998 2000 2002 2004 2006 2008 2010

Figure 2: Regression-based Hourly Earnings Premiums for STEM Workers

1994-2010

Source: ESA calculations using Current Population Survey public-use microdata files of annual merged outgoing rotation groups 

from the National Bureau of Economic research. 

Note: The estimates are for private wage and salary workers age 25 and over.

Graduate degree

Less than a bachelor's degree

Bachelor's degree

Total

Figure 2. Regression-based Hourly Earnings Premiums for STEM Workers

1994—2010

Source: ESA calculations using Current Population Survey public-use microdata files of annual merged outgoing rotation groups 

from the National Bureau of Economic research. 

Note: The estimates are for private wage and salary workers age 25 and over.

 
4 U.S. Department of Commerce, Economics and Statistics Administration

The analysis so far has focused on STEM jobs, but 

conversations about policy most often focus on 

STEM education. One source of information to analyze the link between STEM jobs and STEM education is the 2009 American Community Survey which 

collected information on college-educated individuals’ undergraduate majors. When examining the relationship between STEM education and STEM jobs, 

the following patterns emerge. 

First, a STEM degree is the typical path to a STEM 

job, as more than two-thirds of the 4.7 million STEM 

workers with a college degree has an undergraduate 

STEM degree. 9However, this does not necessarily 

mean that STEM workers’ degrees are in the same 

STEM field as their jobs. For example, only 35 percent of college-educated computer and math workers have a degree in computer science or math while 

27 percent majored in the physical or life sciences or 

engineering. 

Second, in addition to STEM jobs, STEM degrees also 

open the door to many other career opportunities. 

Almost two-thirds of the 9.3 million workers with a 

STEM undergraduate degree work in a non-STEM 

job. Life and physical science majors are the STEM 

degree holders most likely to work in non-STEM 

jobs; 81 percent of these graduates work outside the 

STEM fields. (Note that “non-STEM” occupations 

include the 28 percent of graduates who work as 

healthcare practitioners or technicians, and the 12 

percent who work in education.) In math, there is a 

strong pipeline into education jobs, as one-fifth of 

math majors go on to work in education.

As discussed above, STEM workers earn significantly 

more than their non-STEM counterparts, but what 

about the earnings of STEM degree holders who 

don’t necessarily work in STEM jobs? Using the 2009 

American Community Survey public-use microdata, 

calculations of the regression-adjusted earnings premium of college-educated workers with a STEM degree and/or STEM job showed that all STEM degree 

holders receive an earnings premium relative to 

other college graduates, whether or not they end up 

in a STEM job. Likewise, college graduates, regardless of their major, enjoy an earnings premium for 

having a STEM job. The earnings premium for having 

a STEM job or a STEM degree is quite similar, at 13 

percent and 11 percent, respectively. Still, a much 

STEM Jobs and STEM Degrees

Table 2. Employment of Workers Age 25 and Over with a Bachelor’s Degree or Higher, by 

STEM Occupation and STEM Undergraduate Degree, 2009

Employed persons in thousands

Source: ESA calculations using American Community Survey public-use microdata.

Total

STEM degree Non-STEM 

Total Computer Math Engineering degree Physical and 

life sciences

Total 41,530 9,262 1,359 646 3,706 3,551 32,268

STEM employment 4,736 3,327 763 167 1,738 659 1,409

Computer and math 2,167 1,331 637 120 447 128 835

Engineering 1,444 1,225 39 19 1,083 85 219

Physical and life 

sciences 654 484 8 9 54 413 170

STEM manager 471 287 80 19 155 33 184

Non-STEM employment 36,794 5,935 595 479 1,968 2,892 30,859
U.S. Department of Commerce, Economics and Statistics Administration 5

STEM Joblessness

larger payoff tends to come when a STEM major 

goes on to work in a STEM job, as their earnings (all 

else equal) are about 20 percent higher than those 

of non-STEM majors working in non-STEM jobs. 

In addition to higher earnings, workers in STEM occupations on average experience lower unemployment rates than workers in other fields (see Figure 

3).10 The unemployment rate for STEM workers rose 

from 1.8 percent in 2007 to 5.5 percent in 2009 before easing to 5.3 percent in 2010. The unemployment rate for non-STEM workers rose from 4.8 percent in 2007 to 9.5 percent in 2009 and then continued to increase to almost 10 percent in 2010. STEM 

workers, however, are not totally immune to economic downturns, as STEM joblessness did increase 

during the last two recessions.

Some of the difference in unemployment rates between STEM and non-STEM workers reflects differences in educational attainment. On balance, workers with a higher educational level tend to experience lower unemployment, and STEM workers tend to be better educated. Looking at workers with a bachelor’s degree or graduate degree, 

one finds less of a difference in unemployment 

rates between STEM and non-STEM workers 

than for those with less education. During the 

latest recession, the unemployment rate for college-educated STEM workers edged above the 

non-STEM rate in 2009, but the rate for both 

groups converged to 4.7 percent in 2010 (see 

Figure 4). While college-educated STEM workers 

were less likely to be jobless than other workers 

during the latter part of the last two economic 

expansions, they were more likely to be jobless 

during and after the 2001 recession. The decrease in the demand for information technology workers following the Y2K efforts and the 

crash of the Internet dot-com bubble likely 

played a role. 

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1994 1996 1998 2000 2002 2004 2006 2008 2010

Figure 3: Unemployment Rates in STEM and Non-STEM Occupations, 1994-2010

Source: ESA calculations using Current Population Survey public-use microdata.

Note: The estimates are for the civilian labor force age 16 and over. Shading indicates recession.

STEM

Non-STEM

Figure 3. Unemployment Rates in STEM and Non-STEM Occupations, 1994-2010

Source: ESA calculations using Current Population Survey public-use microdata.

Note: The estimates are for the civilian labor force age 16 and over. Shading indicates recession.
6 U.S. Department of Commerce, Economics and Statistics Administration

Educational Attainment of 

STEM Workers

One of the more distinguishing characteristics of 

STEM workers is their educational attainment. More 

than two-thirds (68 percent) of STEM workers have a 

bachelor’s degree or higher, compared to just under 

one-third (31 percent) of other workers age 16 and 

over (see Figure 5). Among the four STEM occupational groups, the physical and life sciences have the 

highest-educated workforce, with nearly 40 percent 

holding a graduate degree – about double the share 

for computer, math and engineering jobs. Nonetheless, because STEM includes professionals as well as 

first-tier support jobs, we find that a number of STEM 

workers have less than a four-year college degree; 

nearly one-quarter (23 percent) have completed an 

associate degree or at least some college, and 9 percent have a high school diploma or less. So while it is 

certainly true that the majority of STEM workers tend 

to have at least a bachelor’s degree, opportunities 

also exist for STEM workers with lower education 

levels.

The greatest advancements in our society from 

medicine to mechanics have come from the minds of 

those interested in or studied in the areas of STEM. 

Although still relatively small in number, the STEM 

workforce has an outsized impact on a nation’s competitiveness, economic growth, and overall standard 

of living. Analysis of data from the U.S. Census Bureau’s American Community Survey and Current 

Population Survey provide new insights into the 

growing STEM workforce that is central to our economic vitality. STEM jobs are the jobs of the future. 

They are essential for developing our technological 

innovation and global competitiveness. 

0%

1%

2 %

3%

4%

5 %

6%

1994 1996 1998 2000 2002 2004 2006 2008 2010

Figure 4: Unemployment Rates in STEM and Non-STEM Occupations, Workers 

with a Bachelor's Degree or Higher, 1994-2010

Source: ESA calculations using Current Population Survey public-use microdata.

Note: The estimates are for the civilian labor force age 25 and over with a bachelor's degree or higher. Shading indicates recession.

STEM

Non-STEM

Source: ESA calculations using Current Population Survey public-use microdata.

Note: The estimates are for the civilian labor force age 25 and over with a bachelor's degree or higher. Shading indicates recession. 

Figure 4. Unemployment Rates in STEM and Non-STEM Occupations, Workers 

with a Bachelor’s Degree or Higher, 1994-2010

Conclusions
U.S. Department of Commerce, Economics and Statistics Administration 7

These factors make STEM workers highly desirable 

to companies developing or operating on the technological forefront and extremely important to the 

U.S. economy, as competitive businesses are the 

foundation of a competitive economy. As this 

analysis highlights, STEM jobs should also be highly 

desirable to American workers. Regardless of educational attainment, entering a STEM profession is 

associated with higher earnings and reduced joblessness. For college graduates, there is a payoff 

in choosing to pursue a STEM degree, and for 

America’s workers, an even greater payoff in 

choosing a STEM career. 

8.8%

23.1%

44.1%

24.0%

39.4%

29.5%

20.3%

10.8%

0%

10%

20%

30%

40%

50%

0%

10%

20%

30%

40%

50%

High school

or less

Some college or 

associate degree

Bachelor's

degree

Graduate

degree

STEM managers

Physical and life sciences

Engineering

Computer and math

Non-STEM jobs

Source: ESA calculations using Current Population Survey public-use microdata.

Note: The estimates are for all employed persons age 16 and over.

Figure 5. Percent Distribution of STEM and Non-STEM Employment

by Educational Attainment, 2010

Figure 5. Percent Distribution of STEM and Non-STEM Employment

by Educational Attainment, 2010

Source: ESA calculations using Current Population Survey public-use microdata.

Note: The estimates are for all employed persons age 16 and over. 
8 U.S. Department of Commerce, Economics and Statistics Administration

Appendix Table 1. Detailed STEM occupations and Standard Occupational Classification (SOC) 

codes

Occupation

SOC 

code Occupation SOC code

Computer and math occupations

Computer scientists and systems analysts 15-10XX Network systems and data communications 

analysts 15-1081

Computer programmers 15-1021 Mathematicians 15-2021

Computer software engineers 15-1030 Operations research analysts 15-2031

Computer support specialists 15-1041 Statisticians 15-2041

Database administrators 15-1061 Miscellaneous mathematical science occupations 15-2090

Network and computer systems administrators

15-1071

Engineering and surveying occupations

Surveyors, cartographers, and photogrammetrists 17-1020 Materials engineers 17-2131

Aerospace engineers 17-2011 Mechanical engineers 17-2141

Agricultural engineers 17-2021

Mining and geological engineers, including 

mining safety engineers

17-2151

Biomedical engineers 17-2031 Nuclear engineers 17-2161

Chemical engineers 17-2041 Petroleum engineers 17-2171

Civil engineers 17-2051 Engineers, all other 17-2199

Computer hardware engineers 17-2061 Drafters 17-3010

Electrical and electronic engineers 17-2070 Engineering technicians, except drafters 17-3020

Environmental engineers 17-2081 Surveying and mapping technicians 17-3031

Industrial engineers, including health and 

safety 17-2110 Sales engineers 41-9031

Marine engineers and naval architects 17-2121

Physical and life sciences occupations

Agricultural and food scientists 19-1010 Physical scientists, all other 19-2099

Biological scientists 19-1020 Agricultural and food science technicians 19-4011

Conservation scientists and foresters 19-1030 Biological technicians 19-4021

Medical scientists 19-1040 Chemical technicians 19-4031

Astronomers and physicists 19-2010 Geological and petroleum technicians 19-4041

Atmospheric and space scientists 19-2021 Nuclear technicians 19-4051

Chemists and materials scientists 19-2030

Other life, physical, and social science technicians 19-40XX

Environmental scientists and geoscientists 19-2040

STEM managerial occupations

Computer and information systems managers 11-3021 Natural sciences managers 11-9121

Engineering managers 11-9041
U.S. Department of Commerce, Economics and Statistics Administration 9

Computer majors

Computer and information 

systems

Computer science Computer administration 

management and security

Computer programming and 

data processing Information sciences Computer networking and telecommunications

Math majors

Mathematics Statistics and decision science Mathematics and computer 

science

Applied mathematics

Engineering majors

General engineering Environmental engineering Petroleum engineering

Aerospace engineering Geological and geophysical 

engineering Miscellaneous engineering

Biological engineering Industrial and manufacturing 

engineering Engineering technologies

Architectural engineering Materials engineering and 

materials science

Engineering and industrial 

management

Biomedical engineering Mechanical engineering Electrical engineering technology

Chemical engineering Metallurgical engineering Industrial production 

technologies

Civil engineering Mining and mineral 

engineering

Mechanical engineering related 

technologies

Computer engineering Naval architecture and marine 

engineering

Miscellaneous engineering 

technologies

Electrical engineering Nuclear engineering Military technologies

Engineering mechanics physics 

and science

Physical and life sciences majors

Animal sciences Genetics Physical sciences

Food science Microbiology Astronomy and astrophysics

Plant science and agronomy Pharmacology Atmospheric sciences and 

meteorology

Soil science Physiology Chemistry

Environmental science Zoology Geology and earth science

Biology Miscellaneous biology Geosciences

Biochemical sciences Nutrition sciences Oceanography

Botany Neuroscience Physics

Molecular biology Cognitive science and 

biopsychology

Nuclear, industrial radiology, and 

biological technologies

Ecology

Appendix Table 2. Detailed STEM undergraduate majors
10 U.S. Department of Commerce, Economics and Statistics Administration

impact of those unidentified common characteristics as 

well as the pure premium from working in a STEM job.

9 As mentioned earlier, a person whose primary or secondary major was in a STEM field is counted as having a 

STEM undergraduate degree.

10 In the Current Population Survey, occupations are 

assigned to persons based on their most recent work 

experience. As a result, unemployment rates by occupation are sometimes referred to as the “experienced 

unemployment rate.” Thus, if we define USTEM as the 

number of unemployed persons whose most recent job 

was in a STEM occupation and ESTEM as the number of 

persons currently employed in a STEM occupation, then 

the STEM unemployment rate is calculated as USTEM / 

(ESTEM + USTEM).

Endnotes

1 These occupations are computer and information systems managers, engineering managers, and natural 

sciences managers.

2 Although our principal data sources, the monthly Current Population Survey (CPS) and the 2009 American 

Community Survey (ACS), collect detailed information 

on workers’ occupations, they do not break out educators by their specific field. As a result, it is not possible 

to distinguish math and science professors from other 

professors. Data from the Bureau of Labor Statistics’ 

Occupational Employment Statistics program show that 

there are roughly 200,000 postsecondary teachers in 

STEM fields, and so their exclusion is unlikely to materially affect our results.

3 The National Science Foundation does count social 

scientists among “science and engineering jobs” in 

keeping with the agency’s mission supporting “all fields 

of fundamental science and engineering, except for 

medical sciences.”

4 The distinction between “scientists” rather than 

“science occupations” is more than just semantic as 

“science occupations” covers not just scientists but also 

science technicians. Likewise, engineering and surveying occupations include engineering technicians and 

drafters, and computer occupations range from computer support specialists to computer software engineers.

5 Using 2008-18 employment projections from the Bureau of Labor Statistics (BLS), ESA calculated the projected employment growth of STEM occupations. BLS’s 

Employment Projections Program’s homepage is http://

www.bls.gov/emp and detailed occupational projections are available at http://www.bls.gov/emp/

ep_table_106.htm

6 More specifically, the earnings regressions control for 

age (up to a fourth degree polynomial of age), gender, 

marital status, race and Hispanic origin, nativity and 

citizenship, educational attainment, metropolitan area, 

region, union representation, major industry, STEM 

occupation, time, and STEM occupation interacted with 

time.

7 For the regression analysis, we combined workers that 

had completed some college, high school, or less into a 

single “less than a bachelor’s degree” category because 

of small sample concerns.

8 One caveat with these results is that the STEM premium may also capture other unidentified factors that 

systematically distinguish STEM workers from other 

workers. STEM workers may have more in common 

than just their career fields, such as a similar work ethic 

or affinity, and the STEM premium could reflect the net 

U.S. Department of Commerce

Economics and Statistics Administration

1401 Constitution Ave., NW

Washington, DC 20230

www.esa.doc.gov

The authors are economists in the Office of the Chief 

Economist of the U.S. Department of Commerce’s 

Economics and Statistics Administration. 

Technical inquiries:

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