Cecilia Machado: Developed countries increasingly invest in science, engineering and mathematics

Workers in the areas of science, technology, engineering and mathematics –STEM in Portuguese, STEM in English– contribute to the creation and diffusion of new ideas and production processes.

Even when they do not directly participate in research generation or product development, they are involved in the adoption of technological innovation in their work environments, expanding the economy’s long-term growth prospects.

In developed countries, educational and immigration subsidy policies are being directed to this important sector, which is becoming increasingly strategic, as seen in the United States.

In the US economy, there are about 10 million STEM jobs in 2019, that is, almost 7% of the workforce performs functions in this area (US Census Bureau). The precise number of STEM workers is subject to some arbitrary classification, reaching up to 30 million jobs, when considering a broader definition that includes related functions or even activities performed by workers without a university degree.

Regardless of the metric, the rise in relevance of STEM work is unequivocal. For the next decade, the growth projection for jobs in the STEM sector is 40% higher compared to the non-STEM sector (Bureau of Labor Statistics, BLS).

Greater growth is expected in computing, in the roles of information security analysts, software developers, and researchers in computing and information. The growth of the digital economy, accelerated by the Internet of Things, places increasing value on the use and analysis of the enormous amount of data that is becoming available, as well as on the security and protection of this information. It is clear that behind the observed increase in STEM employment is the greater demand for this type of work, and the salary of STEM workers is more than double that of other occupations (BLS).

And in Brazil, what can be said about the STEM sector? In a study that I carried out in partnership with Rachter, Schanaider and Stussi, we established a classification of STEM occupations in different databases considering codes of Brazilian occupations. Using it in PNADC data, we calculate that 1.5 million workers are employed in the STEM sector in 2019. Compared to the United States, the size of the sector is smaller not only in absolute numbers but also in proportion of the employed population: 2% of jobs are STEM.

Although there seems to be room for growth in the sector in a comparative perspective, the composition of activities, and how these workers will be absorbed into the economy, will dictate how relevant the STEM sector will become in Brazil. The high remuneration of these workers in Brazil —with salaries almost 2.5 times higher than other workers— is an indication that there is also a demand for these professionals here.

In addition, STEM training is associated with enormous employment resilience in times of recession, an additional attraction for these occupations. During the pandemic, STEM workers were little impacted, and in the last year, employment in these sectors has grown significantly both in Brazil and in the United States. PNADC data show that while employment in non-STEM sectors has yet to recover, employment in STEM sectors grew by 18% over the same period.

Analysis of US data indicates that the resilience of STEM jobs is not associated with particular characteristics of the pandemic recession, such as that favoring remote work. On the contrary, the results reflect the importance of a set of knowledge, skills and learning in STEM training, which makes these workers adaptable to changes in the labor market.

In an economy destined to face economic cycles and recessions, like the Brazilian one, investing in STEM does not seem like a bad idea. It remains to be seen how the offer of courses in science and technology will be able to adapt to the dynamism of the digital economy, attracting and preparing our young people for the professions of the future.