Katheren Leitner
Chief Executive — Te Hononga Akoranga COMET
We often think of education as an expense. Something we must fund. What if we flipped the thinking?
When it comes to STEM (science, technology, engineering and maths), education is not a cost; it’s an investment. Like any smart investment, it pays off.
What’s the return? #
According to the New Zealand Treasury's 2023 report, The Economic Impact of STEM Education, every $1 invested in STEM education returns $3.50 to the economy over 20 years.
For example, if New Zealand invests $1 billion in STEM education, it can expect a $3.5 billion return. That’s not just in numbers on a balance sheet. It shows up in higher wages, more jobs and stronger businesses.
Graduates with STEM qualifications earn 20–35% more than the average graduate.
For Māori and Pasifika students, the benefit is even greater. STEM graduates from these communities earn up to 45% more than peers without STEM qualifications.
For instance, if a non-STEM graduate from these communities earns $40,000, a STEM graduate could earn $58,000. They also experience faster salary growth and have much lower unemployment — even during downturns.
Why it matters for Aotearoa NZ #
We’re facing a global talent race. Other countries are investing heavily in STEM, while here in New Zealand, only 8% of STEM tertiary students are Māori or Pasifika — even though these groups will make up 40% of our young workforce within 16 years.
Currently, only 16% of New Zealand’s workforce is employed in STEM-related fields, while countries such as Ireland have a 25% STEM employment rate. At the same time, New Zealand has over 10,000 open STEM-related job positions, with that number projected to grow by 5% annually over the next five years.
If we don’t close that gap, we’re not just failing communities; we’re also risking our economic future. Treasury estimates show that addressing the STEM participation gap for Māori and Pasifika could add $11–15 billion to New Zealand’s GDP over the next two decades.
What businesses can do now #
Businesses aren’t just beneficiaries — they’re key players. Whether it’s internships, school partnerships or mentoring, the return on investing in STEM talent is clear:
- 23% higher productivity
- 35% higher export earnings
- 17% better staff retention
Companies that invest in internal development for technical roles see 94% retention, compared to 68% for external hires. It’s cheaper, smarter and future-focused.
The cost of doing nothing? #
A shrinking talent pipeline. Delayed projects. Recruitment challenges. Missed innovations. Stalled growth. If we don’t act now, we’ll fall behind — economically, socially and globally.
The bottom line #
Smart countries invest in STEM. Not because it’s trendy but because it works.
Ireland's focused investment in STEM education has been instrumental in transforming its economy from an agriculture-based economy to a knowledge-driven one, fostering innovation and attracting global industry leaders. This approach underscores the profound impact that prioritising STEM disciplines can have on a nation's economic development and global standing.
STEM builds people. It builds industries. And it builds futures.
Next week: A call to action — what needs to happen next.