Powering Progress: STEM Occupations Are The Backbone of Innovation And Economic Strength

From climate change and energy sustainability to national security and scientific discovery, STEM occupations play a pivotal role in bolstering the economy, serving as the backbone of innovation and competitiveness.

STEM (science, technology, engineering and mathematics) workers are more educated, younger and diverse than the broader labor market, and the regions that attract them tend to be vibrant and offer a high quality of life.

Cities with the highest concentration of STEM jobs include San Jose, San Francisco, Seattle, Washington, D.C., and Austin, Texas. Markets with a young and educated population like Boston, Denver and Raleigh, North Carolina, also have strong STEM employment, according to the 2023 STEM Job Growth Index (STEMdex) compiled by RCLCO Real Estate Consulting and CapRidge Partners. The STEMdex is designed to predict where growth will go over the next five to 10 years.

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Economic Engine

Workers in the 50 largest metropolitan statistical areas (MSAs) earned an average annual salary of $108,000 in 2022, compared to $67,000 for all other industries, according to the STEMdex.

2023 STEM Job Growth Index

1. Austin, Texas

2. Denver

3. Seattle

4. Raleigh, North Carolina

5. Washington, D.C.

6. San Francisco

7. Portland, Oregon

8. San Jose, California

9. Boston

10. Dallas

11. Minneapolis

12. Salt Lake City

13. Orlando, Florida

14. Charlotte, North Carolina

15. Atlanta

16. Nashville, Tennessee

17. San Diego

18. Richmond, Virginia

19. Baltimore, Maryland

20. Philadelphia

 Source: RCLCO Real Estate Consulting/CapRidge Partners

The economy benefits from the higher wages STEM workers earn. STEM jobs support industries such as manufacturing, logistics and distribution, which concentrate around clusters of STEM jobs. According to a report from Science Is US, the economic impact of STEM jobs was $9.45 trillion in 2021, or 40.5% of the U.S. gross domestic product.

"The tech industry has been a key driver for STEM jobs and local economies the past decade, but over the past 12 to 18 months, that sector has slowed with company share prices down and hiring freezes being commonplace," CapRidge Chief Investment Officer Dan Terpening said. "Yet, the importance of science and engineering has never been greater with the advance of life and biosciences, EV plants, robotics in manufacturing, plus the heightened attention on infrastructure."

STEM jobs drive innovation, economic growth, job creation and solutions to global challenges. They contribute to individual development by fostering critical thinking and problem-solving skills. Investing in STEM education and workforce development is essential for the continued progress of societies around the world.

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