Report links science graduate growth to £6.4bn economic boost
A modest increase in the number of science graduates entering the workforce could generate an additional £6.4bn for the UK economy by 2035, according to a new report from the Centre for Economics and Business Research (Cebr) and STEM workforce consultancy SThree.
The report estimates that scientific industries, including biotechnology, drug development and research, will contribute around £77bn annually to the UK economy by 2035. However, increasing the number of graduates from science-related subjects by just 2% could raise that figure to more than £84bn.
The findings come amid growing concerns about the future STEM workforce and questions from prospective students about the value of higher education.
Rakesh Patel, managing director UK and Rest of Europe at SThree, said the UK's ambitions in areas such as life sciences depend on a strong pipeline of scientific talent.
“The UK has great strength in science and innovation, and the Government's Industrial Strategy rightly places significant emphasis on sectors such as life sciences,” he said.
“But investment and ambition won't deliver the growth that scientific industries are capable of without the bedrock of education.”
The report forms part of the STEM Skills Outlook, a study examining how changes in STEM talent supply could affect economic growth across more than 40 economies.
Researchers warn that even relatively small shifts in graduate numbers can have significant long-term consequences for innovation-intensive sectors.
Sam Miley, head of forecasting and thought leadership at Cebr, said: “A 2% shift in graduate numbers may sound small, but when it affects a sector that so greatly supports productivity and innovation, the impacts accumulate over time.”
The wider study found that STEM-intensive industries now account for nearly 15% of economic output across the countries examined, up from just over 13% a decade ago. However, several countries are already experiencing declines in STEM graduate numbers, raising concerns about future skills shortages.
The authors argue that stronger links between universities, employers and schools will be essential to maintaining the specialist workforce required to support growth in research, life sciences and other STEM-intensive industries over the coming decade.
Pic: CHEMUK
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