The U.S. faces ongoing debates about a potential shortage of STEM workers and the need to recruit more immigrant workers to fill that gap. Experts say the country needs 1 million more STEM professionals in the next decade to stay competitive in innovation.
Reports from the National Academies and the National Science Foundation highlight immigrants' critical role in sustaining science and engineering fields.
However, some argue the U.S. produces enough STEM graduates, with over 144,000 engineering bachelor’s degrees awarded in 2019, compared to 111,000 projected annual engineering job openings.
Recent changes by the new administration have further fueled this debate.
The question remains: Who is right?
Is there a shortage of STEMM workers?
It's not that simple. The problem is multidimensional
In earlier parts of this series, I explained how viewing the underrepresentation of women and minorities in STEMM as one-dimensional leads to misleading conclusions. Representation varies by field, education level, and other factors.
Similarly, conflicting reports on the STEM shortage arise from grouping all STEM fields, degree levels, genders, geographies, and other variables together.
Here are the key factors behind these inconsistencies:
1. The definition of STEM varies
As discussed in part 1 of this series, each organization defines STEM slightly differently. Some include architecture and medicine, others social sciences and manufacturing. Therefore, the data are different when you analyze data only on postsecondary educated individuals instead of including all workers such as technicians and machinists.
2. The STEM Worker Shortage Varies by Field
Several studies, including research by Michael Teitelbaum and others, indicate that there is not a widespread shortage of STEM workers, but rather imbalances in certain fields.
For example, there is high demand for computer engineers and software developers, while fields like biology and chemistry face an oversupply of workers. Similarly, nuclear and electrical engineering Ph. D.s who are U.S. citizens are in short supply, whereas biology Ph .D.s seeking professor roles face significant competition.
3. STEM Degree Holders Are Underutilized and Underpaid
Wage trends indicate a mismatch between supply and demand in STEM. If a true shortage existed, wages would rise significantly. Instead, STEM wages have been stagnant, even dropping 7% from 2019 to 2023. This suggests the issue may lie in the underutilization of STEM graduates, not a lack of them.
4. Many STEM degree holders do not work in STEM fields
Nearly 25% of STEM graduates don’t work in STEM jobs (Cheeseman Day & Martinez, 2021). This often happens when degrees don’t align with workforce demands or when barriers like lack of mentorship or financial support limit entry—challenges that disproportionately affect minorities.
Kendall’s taxi metaphor illustrates this well: a STEM graduate job-seeker is like a passenger looking for a taxi. In oversaturated fields like biomedical sciences, there are more graduates (passengers) than jobs (taxis), leading to intense competition for positions such as tenure-track roles. Conversely, in fields like aerospace or computer engineering, there are more jobs (taxis) than workers (passengers), prompting companies to hire foreign talent.
Geography also plays a role. Science and medicine jobs cluster along the coasts, while fields like petroleum engineering are concentrated in states like Texas and Oklahoma. Government STEM positions, requiring U.S. citizenship, differ from private sector roles where demand often outpaces supply.
How Foreign Talent Fills Critical Gaps
Foreign-born STEM workers are defined as those STEM workers born outside of the United States who were not citizens by birth. There are three subsets for the foreign-born population: noncitizens who live in the United States on visas (temporary visa holders), those with permanent resident status (or Green Cards), and foreign-born workers who have become U.S. citizens (naturalized citizens).
Here's where it gets interesting:
The number of foreign-born STEM workers has grown 104% since 2010.
19.1% of STEM workers in the U.S. are foreign-born (ACS). That's over 7 million professionals filling critical gaps.
43% of master’s and doctoral-level STEM professionals are foreign-born.
As shown below, while nonresidents have a minor share of all STEM degrees, they dominate doctoral degrees with 58%, revealing a significant disparity in representation at the highest education level
Mexico leads as the top contributor to the foreign-born STEM workforce in the U.S., making up 18% of all workers and 40% of middle-skill STEM jobs. Several Latin American countries are also among the top 15 sources, highlighting the region’s significant role. In total, 24 countries contribute 75% of the foreign-born STEM workforce, with India (14%), China (7%), and the Philippines (6%) following Mexico. In science and engineering (S&E) fields, India leads with 29%, while China accounts for 13%.
Do Immigrants Hurt U.S.-Born Workers?
This controversial topic warrants deeper exploration, but let’s address a few common questions used to claim immigrants harm the U.S. economy:
Does the unemployment rate for U.S.-born workers increase with more foreign-born workers?No. Unemployment rates are currently among the lowest on record.
Is the employment rate for U.S.-born individuals aged 25–54 decreasing?No. It’s actually higher than before, at approximately 81%.
Are immigrants taking high-wage jobs that could go to U.S.-born workers?No. Most of the estimated 7 million undocumented workers are in low-wage, non-STEM roles like agriculture, food preparation, janitorial work, and nursing assistance. Among the 2 million immigrants in high-wage roles (primarily legal immigrants), most work in computer science and engineering, such as software development and aerospace.
Importantly, immigrants are disproportionately likely to be doctors, making up nearly one-third of U.S. physicians.
Do immigrant workers push wages down?Research suggests stagnant wages in STEM fields during the early 2000s discouraged U.S. natives from pursuing doctoral studies. Some argue the influx of immigrant workers helped suppress wages, reducing incentives for natives and underrepresented minorities to enter these fields. Others believe the labor market could adjust to attract more native-born professionals or legal immigrants if fewer foreign workers were available.
An often overlooked point is that White and Asian immigrants in upper-wage STEM jobs earn more than White and Asian U.S.-born workers at the same level, indicating immigrants may drive wages up at higher salary levels rather than pushing them down.
It is also worth noting that even at this level, Latinos stay behind, with a very small percentage earning more than $104,000. However, as discussed in previous newsletters, the share of Latinos and Blacks in STEM is too low to significantly influence overall STEM wages.
Foreign-born STEM workers have made important contributions to the U.S. economy in terms of productivity and innovation. Research has found that immigrants are more likely than U.S.-born to obtain a patent, and immigrants account for rising shares of U.S. patents in computing, electronics, medical devices, and pharmaceuticals
Key Takeaways
The STEM workforce shortage is complex and varies by field, education level, and geography. While some STEM fields face high demand, others have an oversupply of graduates.
STEM shortages depend on the field – High demand exists in areas like computer science and aerospace, while fields like biology and chemistry have more graduates than jobs.
Many STEM graduates are underutilized – Nearly 25% work outside of STEM, often due to job-market misalignment, lack of mentorship, or financial barriers.
Wages have remained stagnant – If there were a true shortage, wages would rise. Instead, STEM salaries have dropped, discouraging U.S.-born professionals from entering the field.
Foreign-born professionals fill critical gaps – 19% of the U.S. STEM workforce is foreign-born, and they dominate advanced degrees, making up 43% of master’s and Ph.D. holders.
Immigrants do not displace U.S.-born workers – Data shows no negative impact on employment rates, and immigrants play a key role in innovation, contributing disproportionately to patents and high-tech fields.
Bottom Line:
The U.S. doesn’t just need more STEM graduates—it needs better workforce alignment, wage incentives, and investment in underrepresented domestic talent to strengthen the future of STEMM.
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