STEM Talent Shortage Could Cost U.S. $1.4 Trillion

A new report warns that the United States could lose up to $1.4 trillion in economic output over the next decade if the supply of STEM talent fails to keep pace with demand. Commissioned by the Centre for Economics and Business Research and Specialist Staffing Group, “STEM Skills Outlook 2026” examines how shortages in engineering and other technological fields could affect major economies. 

Among 42 economies, the global outlook concludes the U.S. is facing the largest potential loss of STEM-driven output. At the same time, the report identified significant strengths within the U.S. innovation ecosystem. Research and development expenditures account for 3.5 percent of U.S. GDP, placing the country among the world’s leading investors in innovation. 

Despite those strengths, the U.S. ranked 18th overall in the report’s STEM Skills Index and fourth among G7 nations. Researchers found particular weaknesses in foundational STEM education and engineering talent development, while noting that STEM accounted for just 11 percent of total U.S. output—a below-average share that places the nation behind 33 other economies.