WHITE PAPER. UK STEM Skills Gap: Report and Analysis

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1 WHITE PAPER UK STEM Skills Gap: Report and Analysis

2 Introduction In September 2013, MathWorks and YouGov surveyed more than 300 employers across the UK and 24 of the country s leading Russell Group academics involved in teaching STEM subjects. The objective of the research was to highlight the impact of a growing skills gap in the science, technology, engineering, and mathematics (STEM) industries, help identify its causes, and discuss possible solutions. This white paper examines the results of the survey, looking at how the skills gap is perceived by both industrial leaders and those working in academia. It provides an analysis of the results and supporting interviews with respondents. Combining primary research and anecdotal evidence from those working in the field provides a framework for further discussion on addressing the shortage of skilled graduates in STEM. This report tells us two important things: first, that more needs to be done to encourage students to study STEM subjects beyond compulsory education. Second, that STEM curricula need to better prepare students for their future careers in industry in terms of employability skills, such as critical thinking and teamwork, and technical knowledge of their discipline. Dr. Coorous Mohtadi, MathWorks WHITE PAPER 2

3 Contents Key Findings... 4 Market Insight... 5 Exploring the Gap... 5 UK s STEM Investment... 6 Closing the Gap... 7 Industry Insight Conclusion Methodology WHITE PAPER 3

4 Key Findings The Extent of the Skills Gap The Extent of the Skills Gap Out of 300 employers and 24 of the country s leading Russell Group academics surveyed, 59% of businesses and 79% of universities believe there aren t enough skilled graduates to meet industry s employment requirements. More than 6 in 10 (61%) business leaders and 68% of academics who think there is a skills gap believe it will take over 10 years to close. More than 8 in 10 (83%) businesses and almost 9 in 10 (89%) academics think the skills gap needs to be bridged in order for the UK to be competitive in the world economy. More than half of both groups (51% of industry and 53% of academics) believe investment in the teaching of STEM in further education and higher education is not as high as in other countries. Industry and Academia Collaboration Universities and businesses polled are united in a belief that the skills gap can be mitigated with greater collaboration between academia and industry. More than half (52%) of employers and almost two-thirds (64%) of academics included in the study think that industry does not currently work closely enough with universities. While more than 6 in 10 (63%) businesses think industry should have a greater say and make a greater investment in the STEM curriculum in the UK, universities are less enthusiastic, with just 46% welcoming this extent of industry involvement. Of academics who want industry to have more say in the STEM curriculum, all respondents want industry to provide workplace experience to students in STEM subjects. 82% would welcome guest experts from industry to give talks at schools and universities. Approaches to Closing the Gap Whereas more than 6 in 10 (61%) businesses surveyed think more project-based learning in STEM subjects is needed to engage students in the investigation of science and real-world engineering problems, only a third (34%) of academics polled think the same. While more than half (56%) of employers believe students cannot reach their potential in the area without project-based learning, this view is shared by just over a third (37%) of academics. It s becoming increasingly difficult to find graduates to enter the profession, and particularly hard to recruit graduates with the key skills required to make an immediate impact as part of our workforce. Part of the reason for this may be the way universities now approach teaching. Graduates have domain-specific skills but seem to lack the appreciation that those skills are transferrable. This is leading to a skills silo and thinking in one direction. Senior manager, STEM graduate employer WHITE PAPER 4

5 Market Insight The skills shortage in the UK science, technology, engineering, and mathematic-based industries (STEM) is well documented. Independent reports from multiple sources have explored this structural employment imbalance, finding that there are not enough graduates to meet the needs of employers. In October 2013, the Organisation for Economic Co-operation and Development (OECD) warned that England s 16- to 24-year-olds are falling behind their Asian and European counterparts in numeracy, a core skill for continuing education or pursuing careers in STEM 1. A governmentcommissioned review, led by the chief scientific adviser to the Department for Business Innovation and Skills (BIS), said in November 2013 that there is evidence of a shortage of skilled workers in specific areas of the industry, such as engineering 2, and that if not addressed, the UK could fall behind global competitors. Another report published in October 2012 by the Royal Academy of Engineering 3 concluded that the minimum number of STEM students needed between 2012 and 2020 just to maintain today s levels is 100,000 per year. However, at the time of the report the number of STEM students graduating annually was only 90,000, with evidence that around one-third of those were finding employment in non-stem professions. The report found that the UK needs around 1.25 million STEM professionals and technicians by 2020 to support economic recovery. With an extensive customer portfolio in both industrial and academic fields, MathWorks is well placed to observe the skills gap from both sides, and to solicit feedback on how the shortage of skilled candidates can be addressed. Just as the skills gap may not be attributed to a single cause, the solution to encouraging more young students to follow STEM subjects must be examined from many angles, and possible solutions formulated based on a number of factors. Exploring the Gap Both industry leaders and academics report that the UK doesn t produce enough skilled candidates in STEM subjects (Figure 1), creating a gap between supply and demand WHITE PAPER 5

6 90% 80% No, 79% 70% 60% No, 59% 50% 40% 30% 20% 10% 0% Industry Academia Figure 1. Are there enough skilled candidates from UK universities to meet UK STEM employers requirements? This gap is seen as having a potentially negative impact on UK economic growth, with 83% of industry and 89% of academics believing that the skills gap needs to be bridged in order for the UK to remain competitive in the world economy. To begin to explore solutions to the skills gap, we asked respondents to cite possible reasons why a disparity between the number of graduates and demand from employers exists. The survey results show that there is overall agreement between industry and academia on the reasons for the gap: 51% of employers and 53% of academics believe that there isn t enough investment in teaching STEM subjects when compared with other countries. In addition, more than half (52%) of employers and almost two-thirds (64%) of academics included in our survey concluded that collaboration between industry and academia is not close enough and called for an increased focus on bringing these parties together. UK s Investment in STEM Teaching Comparing the education systems of different countries is difficult. Students across the world start school at different ages, progress at different rates, and sit different exams. But one method for making a fair comparison comes from the OECD Programme for International Student Assessment (PISA) results, which are published every three years and test 510, year-olds in 65 countries and economies across the world on reading, mathematics, and science. WHITE PAPER 6

7 The latest edition of the PISA study (released in December 2013) 4 has placed UK students in the middle of international education rankings, suggesting that those in education in the UK do not excel in comparison to counterparts from many other regions. The MathWorks study did touch on a sentiment-based analysis of quality finding that nearly half (47%) of senior managers believe the UK has better STEM graduates than other industrialised countries. But, more importantly, the study asked about the level of investment in the teaching of STEM compared with other countries. More than half of both groups (51% of industry and 53% of academics) believe investment in the teaching of STEM in further education and higher education is not as high as in other countries, and called for this to be improved in order to encourage young people to enter careers in STEM (Figure 2). 60% 50% Yes, 51% Yes, 53% 40% 30% 20% 10% 0% Industry Academia Figure 2. Should investment in STEM teaching be increased? Closing the Gap The MathWorks study s findings, when combined with primary interviews with employers of STEM graduates and those teaching in Russell Group universities, provided a view on how the skills gap can be mitigated and, ultimately, closed. 4 WHITE PAPER 7

8 Industry and Academic Collaboration As Figure 3 shows, there is agreement that there should be greater collaboration between industry and academia; 64% of managers feel that industry should make a greater investment in and have a greater influence over the STEM curriculum in further education and higher education. This was echoed by academia, albeit to a slightly lesser extent (52%). 70% Yes, 64% 60% 50% Yes, 52% 40% 30% 20% 10% 0% Industry Academia Figure 3. Should industry collaborate more closely with academia in curriculum development? Open dialogue is critical to successful collaboration. While higher education needs to prepare students for the commercial realities of a job outside academia, industry must commit relevant resources to universities, making new product releases and code available for academic use and research, in a way that is cost-effective. We need to continually evolve new ways of interacting and collaborating. Head of Engineering department at a leading UK university 88% of industry managers and 100% of academics felt workplace experience is the best way for industry to have a greater say in the shape of STEM curricula and would provide the most efficient way to make that investment. Managers interviewed indicate that internships in the UK are becoming more commonplace, particularly summer placements with programmes available that fully integrate students within a working team. WHITE PAPER 8

9 To bridge this gap we need a change in the culture of universities and industry to cooperate even more closely for the good of the whole. There are a variety approaches for effective collaboration, for example, from internship programmes and guest lectures, to the provision of hardware or software, the use of which can complement traditional learning methods. Senior manager, STEM graduate employer Abstract Thinking and Project-Based Learning The study suggested that a key way to address the skills shortage is to integrate project-based learning approaches into curricula, complementing traditional learning approaches. Project-based learning engages students in the hands-on investigation of science and real-world engineering problems. It s clear from the survey results that there is general agreement about the necessity of project-based learning in helping prepare students for the workplace; in total, 74% of industry respondents agree that it is important for graduates to have experienced project-based learning. Nearly 6 in 10 (59%) of academics agree (Figure 4). 80% Yes, 74% 70% 60% Yes, 59% 50% 40% 30% 20% 10% 0% Industry Academia Figure 4. Is it important for graduates to have experience with project-based learning? Both industry (78%) and academia (79%) agree that project-based learning approaches can help students develop transferrable skills such as critical thinking, problem solving, and collaboration, which are crucial to meet the demands of an industry environment that is competitive and continually changing. Among those who strongly agree that project-based learning helps develop these skills, it is the board members of engineering companies who are most in favour of the practice (77%); within academia, the sector that showed most agreement was engineering (70%) perhaps an indication that the more practical a subject, the more project-based learning can help. WHITE PAPER 9

10 While 40 years ago it would have been common for graduates to enter the workforce and go through a two- or three-year training programme, now industry demands that new graduates are able to make an immediate impact. To achieve this, project-based learning, through which students can experience hands-on the challenges of real-life work situations, is vital. Industry-standard software and hardware can also be used in education, giving students hands-on experience with engineering tools and practices they will use in employment. This reflects a view that, although education shouldn t be solely a training ground for today s industry, academic institutions do need to look at the problems that industry will face in the future. And, as universities cannot teach students to solve all the problems they will encounter during their working lives, it is important that graduates leave education with a combination of knowledge and skills knowledge that constitutes the bedrock of future innovations and skills that enable them to tackle the grand challenges of engineering. All young people need to be exposed to technology as well as the men and women who create it, who can act as strong role models. This exposure will help them to understand that technology is something that everybody can, and should, get involved with from school age onward. Dr. Tanya Morton, MathWorks In addition, the study confirms the importance of incorporating project-based learning teaching approaches into curricula at an early age. 74% of industry respondents see the value of project-based learning at secondary school, in order to inspire and encourage the best STEM students to continue their studies. In comparison, 42% of academia agreed, showing significant support for the practice. You cannot innovate in a vacuum you need to be facing real problems. If we want to create a new generation of British innovators and remain competitive in the world economy, we need to confront students with authentic problems. It s only when we set these challenges and put students into groups that team-building and other important employability skills develop. And this should be incorporated into education from the earliest age. Dr. Coorous Mohtadi, MathWorks Industry Insight While the survey results provide unbiased statistics on how industry and academia feel about the STEM skills gap in general, opinion from individuals directly connected to the issue offers further insights. The following statements were recorded during interviews conducted with senior managers of leading STEM-based UK companies. They are clearly subjective but offered by people in positions of authority within companies that are actively hiring and developing STEM graduates, and so can be seen as valid opinions about the cause and possible solution to the STEM skills gap. WHITE PAPER 1 0

11 Skills Profile With comments from industry professionals like graduates over the last few years have been of a high calibre, it may seem that the skills that graduates have are sufficient to meet employers needs. However, this initially positive impression is challenged by further comments from senior managers that highlight deeper concerns, such as maths skills are a particular problem and problem solving skills can be poor. This leads to concerns over finding graduates that meet expectations, and despite the calibre being seen as high, senior managers report: It s becoming more difficult to find graduates with key skills when they initially enter the profession. The requirements of industry aren t necessarily aligned with university curricula. My impression is that UK graduates favour a deeper, less broad knowledge; while other EU countries seem to be better at producing graduates able to think in a wider way. Closer alignment between industry and academia is important because not all companies want or need deep knowledge, especially at the cost of wider engineering skills. Manager, employer of STEM graduates The impact of this focus is apparent: I often see graduates over-engineering a possible solution, when a fast assessment would do, explained one manager from an engineering firm, leading to an explanation of the basic issue. It s difficult to find an experimentalist today. But it seems senior executives in STEM companies are clear about what the industry needs. The ability to conceptualise and think abstractly leads to original ideas, and that s essential for innovation, reported one executive. We need to encourage students to entertain engineering, through initiatives like the BLOODHOUND Project 5. Next-Generation Managers Some senior managers and executives now believe that any efforts to encourage students to pursue a career in a STEM subject need to take a more holistic view of the career path, highlighting the choices graduates may face as their career progresses, potentially through to becoming the next generation of senior managers. One employer of engineering graduates felt that there was a need to groom the next generation of managers. Tomorrow s engineers should be educated to a level where they re able to contribute in the way that best suits them, he commented. There s room in companies for both specialists and generalists in the field. Part of the route to achieving this may be to change, to some extent, the profile of engineering, or as one manager put it: It would help to engage with students earlier not necessarily to label it as engineering, but focus on the breadth and diversity of the job. 5 WHITE PAPER 1 1

12 Opportunities More positively, interviewees felt that the skills gap has resulted in greater opportunities for those students who do pursue a career in a STEM subject. Part of the challenge is making sure the right candidates are identified and companies are increasing their use of screening, as illustrated by one comment: The assessment process is a tough ride, but it means that those who do get taken on are ready, willing, and able to contribute. The increasingly diverse career opportunities in STEM also offer a positive outlook on the future workforce. A significant opportunity open to graduates with STEM skills is in processing, understanding, and finding value in the enormous amount of data now being generated, in all sectors, as one senior executive pointed out: Data is the new paradigm; it could reverse the skills drain. By that, the impression is that this paradigm will create more opportunities for those equipped with the necessary STEM skills to excel here. Recent reports 6 are holding up data scientists as the new rockstars, and, as one manager pointed out: There s growing demand for an appreciation of big data analysis, which is becoming a new skill set and falls under the heading of data science. Technology consulting firm McKinsey is forecasting that the US faces a shortage of data scientists that will reach 190,000 by and that education companies are now producing online tutorials the help anyone master the basics of data science. Conclusion This report provides clear evidence of a STEM skills shortage in the UK, and indication of its impact on the current and forecasted commercial viability for British industry. It also demonstrates that maintaining the status quo will result in a widening gap and that both academia and industry have a responsibility to address the problem. Collaboration between industry and academia is shown to be a possible solution to closing the gap. And while no one solution is proven viable in isolation, project-based learning, using hands-on projects and complemented by industry-standard software and hardware, is shown as a compelling tactic to fuel interest and engagement in STEM subjects. This report demonstrates an immediate need for industry to make a greater investment and have a greater say in the shape of the STEM curriculum in the UK. From Constructionarium 8 to initiatives such as BLOODHOUND SSC and local maker labs, more needs to be done to get students and younger children into contact with industry professionals simply to see the possibilities of what can be achieved working in the field. And lastly, this need isn t limited to university students. More needs to be done with younger students to encourage and inspire students to continue their STEM studies. The future of the industry is bright, but only if we invest in fostering talented engineering talent at grass roots eandt.theiet.org/explore/students/2013/bridging-skills-gap-academia-industry.cfm WHITE PAPER 1 2

13 Methodology The STEM survey was carried out independently by YouGov PLC, the most quoted research company in the UK, with a panel of over 400,000 members. Two groups were identified: Group A was composed from industry, and Group B was composed from academia. Sixteen questions were posed to both groups. The sample size for Group A was 307 senior managers within companies active in industries that hire STEM graduates. The sample size for Group B was 24 academics working in a STEM-based subject. The fieldwork for Group A was carried out between 28 August and 9 September The fieldwork for Group B was carried out between 2 and 16 September The questions addressing the impact of a skills gap were answered only by those who believe a skills gap exists, which equates to 60% of Group A and 79% of Group B. In the development of this white paper, MathWorks spoke to industry leaders and academics, who helped analyse the research findings and provided suggestions on how both parties should work to close the skills gap The MathWorks, Inc. MATLAB and Simulink are registered trademarks of The MathWorks, Inc. See mathworks.com/trademarks for a list of additional trademarks. Other product or brand names may be trademarks or registered trademarks of their respective holders. WHITE PAPER v00 2/14