Katheren Leitner
Chief Executive
Te Hononga Akoranga COMET
When we talk about STEM careers, many people picture scientists in white lab coats or programmers hunched over keyboards. However, in today's rapidly evolving economy, STEM skills (Science, Technology, Engineering and Mathematics) have become fundamental to virtually every industry in Aotearoa New Zealand — from our traditional agricultural backbone to our growing creative sector.
The silent revolution in Aotearoa New Zealand's workforce #
New Zealand's economy is undergoing a profound transformation. According to the Ministry of Business, Innovation and Employment (MBIE), over 80% of our exports now come from sectors that rely heavily on scientific innovation and technological capabilities. Yet many Kiwis still don't recognize how STEM skills power their everyday work.
STEM is everywhere: sector-by-sector impact #
Agriculture and primary industries
Agriculture has always been central to our identity and economy, contributing approximately 5% of our GDP and over 65% of our export earnings. However, today's farms bear little resemblance to those of previous generations:
- Precision agriculture uses GPS technology, sensors and data analytics to optimize crop yields and reduce environmental impact
- Automated milking systems require technicians with both animal husbandry knowledge and robotics maintenance skills
- Genetic analysis helps develop disease-resistant crops and more productive livestock
- Climate modelling helps farmers adapt to changing weather patterns
According to AgResearch, farms implementing STEM-based precision agriculture techniques have seen productivity improvements of 15-20% while reducing environmental impacts.
Construction and infrastructure
The construction industry accounts for about 6% of our GDP and employs over 250,000 people. Modern construction relies on STEM skills at every level:
- Building Information Modelling (BIM) creates digital representations of physical structures
- Structural engineering ensures buildings can withstand earthquakes in our seismically active country
- Environmental engineering develops sustainable building practices
- Project management software coordinates complex builds
The Building Research Association of New Zealand (BRANZ) reports that construction firms that embrace digital technologies show 15% higher productivity and 7% higher profit margins than those relying exclusively on traditional methods.
Healthcare
Our healthcare system employs over 220,000 people and faces unique challenges due to our aging population and geographical distribution:
- Biomedical technicians maintain increasingly complex medical equipment
- Health informatics specialists manage patient data and telehealth systems
- 3D printing technicians create customized prosthetics
- Data analysts track public health trends and optimize resource allocation
A Health Workforce New Zealand report indicates that roles requiring both clinical knowledge and technology skills are among the fastest-growing in the sector, with 28% growth projected over the next decade.
Tourism and hospitality
Prior to COVID-19, tourism was our largest export industry, contributing 20% of foreign exchange earnings. As the sector rebuilds, STEM skills are proving crucial:
- Digital marketing leverages data analytics to target ideal visitors
- Virtual and augmented reality creates immersive experiences
- Booking systems optimise accommodation and attraction capacity
- Sustainability analysis helps measure and reduce environmental impacts
Tourism Industry Aotearoa reports that businesses incorporating data-driven decision making recovered 35% faster from the pandemic downturn than those without these capabilities.
Creative industries
Our film, gaming and digital media sectors have gained global recognition and collectively contribute over $3.5 billion to our economy annually:
- Visual effects artists combine artistic talent with complex software skills
- Game developers apply physics, maths and coding
- Sound engineers use acoustic science and digital processing
- Animation specialists work with sophisticated 3D modelling tools
According to the New Zealand Game Developers Association, studios report that their most valuable employees combine creative talents with technical capabilities, particularly in mathematics and computer science.
Financial services
Banks, insurance companies and financial advisors employ over 70,000 New Zealanders, with roles increasingly requiring STEM skills:
- Financial analysts use statistical modelling to assess investment opportunities
- Cybersecurity specialists protect sensitive financial data
- Algorithm developers create automated trading systems
- Climate risk assessors evaluate how environmental changes affect assets
The Financial Markets Authority notes that financial technology (FinTech) is New Zealand's fastest-growing professional sector, with 48% annual growth in job postings requiring both financial knowledge and coding skills.
The skills gap reality
Despite STEM's growing importance across all sectors, New Zealand faces a critical skills shortage. A 2023 report from the Technology Investment Network found that:
- 68% of New Zealand businesses report difficulty finding employees with adequate STEM skills
- 43% have delayed projects or expansion due to talent shortages
- 51% have had to recruit internationally to fill critical roles
These shortages affect not just traditional technology companies but businesses across all sectors trying to modernize and remain competitive.
Education vs industry needs: Bridging the gap
Part of the challenge is that our education system hasn't kept pace with the changing demands of industry. While 75% of future jobs are projected to require STEM skills, only about 20% of our students pursue STEM subjects beyond the required curriculum.
This gap is even more pronounced for Māori and Pasifika students. As we highlighted in our previous post on the 8•16•40 Crisis, these communities will constitute 40% of our under-40 workforce in 16 years; yet they currently represent only 8% of STEM tertiary students.
What businesses can do now
New Zealand businesses can't afford to wait for the education system to catch up. Forward-thinking organisations are taking action by:
- Investing in upskilling current employees through targeted STEM training
- Engaging in STEM Community Investment projects that engage younger learners
- Partnering with educational institutions to design relevant curriculum
- Offering internships and work experience to students from diverse backgrounds
The competitive advantage
Companies that recognize and address the STEM skills gap gain significant advantages. According to MBIE's Productivity Commission, New Zealand businesses that have invested in STEM capabilities show:
- 23% higher productivity per worker
- 35% higher export revenues
- 17% better employee retention
- More successful innovation outcomes
Join the conversation
How is your industry changing due to STEM? What skills will your organisation need in the coming decade?
Next week: The role of business and industry in fixing the STEM pipeline.