Surge of STEM

In the US, STEM (science, technology, engineering and math) continues to be popular fields of study for students going to college. For instance, the share of bachelor’s degrees awarded in engineering rose from about 7.5% in 2012 to 9.4% in 2022. Over the same period computer science increased from about 2.5% to 5.4%. Part of STEM’s popularity might be explained by higher potential earnings and lower rates of underemployment. Underemployment is defined as working in a job that does not require the education the worker has obtained e.g., someone working as a barista while having a university degree. College graduates with computer engineering degrees have a mid-career median wage of USD 114,000 and about 18% are underemployed on average compared to liberal arts at USD 63,000 and underemployment rate of 55%.

Source: Federal Reserve Bank of New York (February, 2023).