In an era defined by rapid technological advancement, the acquisition and application of skills in Science, Technology, Engineering, and Mathematics (STEM) are paramount for driving innovation, fostering productivity growth, and maintaining economic competitiveness. However, a significant global challenge exists: the disparity between the capabilities of recent graduates and the proficiencies required for success in the professional world. These disparities can be broadly categorised as knowledge gaps, skill gaps, and motivation gaps. A knowledge gap occurs when individuals possess information but lack sufficient opportunities to apply it effectively, indicating that mere information acquisition does not guarantee competence. A skill gap, in contrast, highlights the necessity of practice for skills to develop, emphasising the importance of distinguishing between these two types of gaps for effective learning design. Beyond these, understanding why learners might not act on acquired knowledge or apply their skills points to motivation gaps.

A Paper on Skill and Knowledge Gaps Among STEM Graduates in India, Canada, and the USA, with a Focus on Enterprise IT, Software Engineering, and AI/Machine Learning

Introduction

In an era defined by rapid technological advancement, the acquisition and application of skills in Science, Technology, Engineering, and Mathematics (STEM) are paramount for driving innovation, fostering productivity growth, and maintaining economic competitiveness. However, a significant global challenge exists: the disparity between the capabilities of recent graduates and the proficiencies required for success in the professional world. These disparities can be broadly categorised as knowledge gaps, skill gaps, and motivation gaps. A knowledge gap occurs when individuals possess information but lack sufficient opportunities to apply it effectively, indicating that mere information acquisition does not guarantee competence. A skill gap, in contrast, highlights the necessity of practice for skills to develop, emphasising the importance of distinguishing between these two types of gaps for effective learning design. Beyond these, understanding why learners might not act on acquired knowledge or apply their skills points to motivation gaps.

This paper will delve into the manifestation of these gaps among STEM graduates, with a particular focus on the fields of Enterprise IT, Software Engineering, and AI/Machine Learning. It will draw comparisons between the experiences of STEM graduates in Canada and the United States, and infer aspects related to Indian graduates primarily through their experiences as immigrants in these Western nations, as direct data on internal Indian skill gaps were not primarily provided in the sources.

Defining Knowledge, Skill, and Motivation Gaps

At its core, a gap in learning exists as a disparity between a learner's current capabilities and the requirements needed for success. Identifying these specific gaps is crucial for tailoring effective learning experiences. For instance, a common misconception in educational design is that simply providing more information will resolve performance issues. However, information merely forms a necessary component for performance; true competence demands opportunities to practice using that information effectively in real scenarios. Skills, unlike knowledge, are fundamentally developed through practice, making the distinction between a knowledge deficit and a skill deficit critical for designing appropriate educational or training interventions. Furthermore, an understanding of motivation gaps is vital, as it explores the reasons why learners may not apply their knowledge or skills despite possessing them.

In the broader context of higher education, a persistent challenge in undergraduate STEM education is ensuring that graduates acquire the essential skills for post-graduation employment. Despite fulfilling academic program requirements, recent graduates frequently lack the key skills that employers anticipate, negatively impacting their employment outcomes. Specifically, STEM graduates often take longer to secure full-time employment, partly due to insufficient development of critical employability skills such as communication, problem-solving, critical thinking (CT), collaboration, leadership, and autonomy. Traditional test-based assessments often reinforce rote memorisation, which is not a relevant workplace skill, contrasting with highly desirable skills like scientific literacy (SL), problem-solving, CT, and communication, which are frequently reported as lacking in STEM graduates. Employers consistently seek complementary skills such as communication, problem-solving, leadership, and interpersonal skills, which are not discipline-specific and are highly valued in prospective employees.

Skill and Knowledge Gaps in Canada

Canada heavily relies on immigrants to supply its STEM-educated labour force. In 2016, immigrants constituted over half of the university-educated STEM population aged 25 to 64 in Canada, including nearly three-quarters of engineering and computer science graduates with master's or doctoral degrees. This substantial supply, however, often faces notable challenges in skill utilisation and earnings compared to their native-born counterparts.

A significant concern is the underutilisation of skills among STEM-educated immigrants in Canada. Over half of STEM-educated immigrant workers in Canada held non-STEM jobs in 2016. Crucially, only about 20% of these immigrants in non-STEM jobs worked in occupations requiring a university education. This indicates a substantial underutilisation of their university-level skills, especially for the majority who do not secure STEM-related employment. Immigrant engineering graduates, particularly at the bachelor's level, demonstrated particularly poor outcomes, with only 39% finding jobs requiring a university degree, compared to 71% of Canadian-born engineers.

A significant earnings gap exists between STEM-educated immigrants and native-born workers in Canada; immigrants earned 26% less even after adjusting for sociodemographic differences. This gap was particularly pronounced for those in non-STEM jobs (34% less adjusted), while those in STEM jobs still earned 17% less (adjusted) than Canadian-born individuals. The adjusted earnings gap was widest among engineers (28.2%) and bachelor's degree holders (27.5%), with bachelor's in engineering showing the largest gap at 31.5%. For recent immigrants (those in Canada for 10 years or less), the adjusted earnings gap was even wider, at 34% overall, and 42% for those not in STEM jobs.

Several factors contribute to these outcomes:

  • Country of Education: This is a crucial determinant of economic outcomes for highly skilled immigrants. Degrees from non-Western countries (including Eastern Europe and Asia) are often less portable than those from Canada, the US, UK, and France. Immigrants educated in the Philippines, Pakistan, Africa, and parts of Asia demonstrated some of the poorest economic outcomes in Canada. Reasons include perceived lower education quality, employer preference for Western-educated candidates, issues with credential recognition, and language/cultural barriers, along with potential discrimination. For instance, only 16% of STEM-educated immigrant workers from the Philippines, a major source country, had a job requiring a university degree.
  • Immigration Selection System: Canada's points-based system traditionally did not require prearranged employment. While employers have recently gained more involvement, the traditional system may lead to mismatches.
  • Oversupply of STEM-educated Immigrants: Immigrants represent a much higher percentage of the STEM-educated workforce in Canada (42%) than in the US (30%). The Council of Canadian Academies (CCA) suggested there was no general supply-demand imbalance of STEM skills in Canada in 2016. However, a later C.D. Howe Institute report noted that evidence prior to the pandemic pointed to a STEM skills shortage in Canada and that there are significant shortages of qualified professionals in STEM-related fields. In the absence of a perceived shortage, or if an oversupply exists in specific fields like engineering, employers may prefer to hire graduates from familiar university systems or those with experience from similar economies, viewing immigrant and Canadian-born STEM workers as non-perfect substitutes.
  • Domestic Education System Issues: Canada faces a recognized shortage of STEM-trained professionals overall, which threatens its quality of life and economic competitiveness. This is partly attributed to a lack of competent and enthusiastic science instructors, leading to student disengagement and insufficient foundational learning. In 2020, only 53% of elementary and middle school teachers felt adequately prepared to teach STEM. University enrollment data show that liberal arts faculty enrollment was twice the combined enrollment in engineering, pre-medicine, and other science-based professions in 2020 at the University of British Columbia.
  • Declining Mathematics Performance: Canadian 15-year-old students' scores in mathematics on the PISA (Programme for International Student Assessment) have declined by 20 points since 2003, and there's a significant gap between high and low achievers (237 points in 2018). This is crucial as math ability is linked to STEM enrollment.
  • Gender Gap: Women are significantly underrepresented in Canadian STEM fields, particularly engineering (22% of enrollment) and mathematics/computer science (28%), despite forming the majority of science and science technology enrollment (58%). This gap contributes to gender earnings differences within STEM. Girls, even high-performing ones in math, are less likely to pursue STEM careers than boys, partly due to a comparative advantage in reading. Addressing this requires closing achievement gaps in mathematics and tackling structural factors like teaching methods, lack of mentorship, inhospitable environments, bias, and discrimination.
  • Underrepresented Groups: Indigenous people are underrepresented in STEM jobs (1.7% of STEM jobs compared to 4.3% of the working-age population) due to lower employment rates and educational gaps.
  • Brain Drain: Canada experiences a "digital brain drain" of STEM talent, especially in ICT fields, to the United States. Many international students, particularly in STEM, leave Canada after graduation due to insufficient pathways to permanent residency. For instance, 84% of the University of Waterloo software engineering class of 2020 had no plan to stay in Canada, partly due to co-op experiences in the US.

Skill and Knowledge Gaps in the United States

In the United States, immigrants also represent a significant portion of the STEM-educated labour force, holding 30% of STEM jobs among workers with at least a bachelor's degree in 2015-2017. Foreign-born workers account for 45% of doctoral workers in Science and Engineering (S&E) occupations.

Key differences in outcomes and contributing factors in the US include:

  • Occupational Skill Utilisation: While over half of STEM-educated immigrants held non-STEM jobs, the situation was better in the US than in Canada: 48% of these immigrants found jobs requiring a university education, compared to only 20% in Canada. This suggests better utilisation of skills even outside direct STEM occupations.
  • Earnings Gaps: There was virtually no earnings gap between STEM-educated immigrants and native-born workers in the US, even after adjusting for sociodemographic differences. In fact, STEM-educated immigrants in STEM jobs earned 4% more than their native-born counterparts (adjusted). The earnings gap for those in non-STEM jobs was much smaller (7% less adjusted) compared to Canada (34% less adjusted). Past research indicates that any small entry earnings gap for STEM-educated immigrants in STEM jobs disappeared in about six years, after which they earned more than their American-born counterparts.
  • Positive Selection and Selection Processes: The United States has a reputation for attracting immigrants at the top of the ability distribution, which may result in higher average skills among STEM-educated immigrants entering the US. The US immigration system often involves a job offer upon arrival (e.g., H-1B or other visa programs) or involves international students who can easily be interviewed by prospective employers. Immigrants entering the US with prearranged employment or on student/temporary work visas are more likely to secure skilled jobs and have wage, patenting, and publishing advantages. Fluctuations in H-1B admissions of scientists and engineers have significantly influenced the rate of Indian and Chinese patenting in US cities and firms.
  • Education Quality and Curriculum Design: While not explicitly detailed as a 'gap' for graduates, there's a criticism of US curricula being "a mile wide and an inch deep," suggesting superficial coverage that may hinder the development of competencies for future learning and work. The US ranks 25th out of 37 OECD countries in mathematics literacy among 15-year-olds, which is lower than the OECD average, though its science literacy ranking is higher (7th).

India's Context as a Source Country for STEM Graduates

The sources primarily address India's role as a significant source of STEM-educated immigrants to Canada and the United States, rather than focusing on internal skill/knowledge gaps within India itself.

  • Supply of STEM Graduates: India is noted as a major source country for immigrants to Canada, particularly for bachelor's degree holders in STEM fields.
  • Outcomes in Canada: STEM doctoral graduates educated in India, Iran, and Africa have some of the lowest STEM employment rates in Canada, below 50%. Overall, STEM immigrants educated in non-Western countries, including parts of Asia and Pakistan, generally have poorer economic outcomes in Canada compared to those educated in Western countries. This is attributed to factors such as perceived lower education quality, employer preference for graduates from familiar Western university systems, issues with credential recognition (especially in regulated fields like engineering), and language or cultural barriers.
  • Outcomes in the United States: STEM-educated doctoral recipients from China and India have relatively high intended stay rates in the United States after graduation (78% to 81% for life, physical, and computer and mathematical sciences and engineering). The H-1B visa program has been noted for its significant role in US innovation, particularly through the contributions of Indian and Chinese scientists and engineers to patenting. This suggests a better integration and utilisation of highly skilled Indian STEM graduates in the US labour market compared to Canada.

Skill and Knowledge Gaps in Enterprise IT, Software Engineering, and AI/Machine Learning

These specific fields are frequently highlighted as areas of both significant demand and existing gaps across Canada and the US:

  • Demand and Shortages: There is a rapidly growing demand for digital skills, including those in Enterprise IT, Software Engineering, and AI/Machine Learning, across various industries (ICT, financial services, manufacturing, healthcare, public sector). Computer science skills and general data science and analytical skills were in demand by 28% and 22% of Canadian employers in 2019, respectively, with 16% and 14% reporting shortages in these specialised digital skills. In the scientific research and development services industry, 62% of employers needed computer science skills, with about half reporting shortages.
  • Enrolment and Brain Drain (Canada): While Canadian enrolment in STEM fields grew significantly faster than non-STEM fields between 2010 and 2019, with mathematics, computer and information sciences seeing a 115% increase, only a fraction of STEM graduates tend to work in STEM occupations. There is evidence of a "digital brain drain" of ICT talent, particularly software engineering, computer engineering, and computer science graduates, from Canadian universities (e.g., Toronto, British Columbia, Waterloo) to the United States. A significant number of international students, highly represented in mathematics and computer and information sciences programs (40% of graduates in 2019), may not intend to stay in Canada after graduation, further impacting the supply of digital skills.
  • Employer Expectations and Preparedness: A 2022 survey showed a drop in the share of Canadian employers reporting that recent graduates had the necessary technical skills, from 96% in 2018 to 83.6%. This suggests a gap in the work readiness of some STEM graduates, highlighting the importance of practical, hands-on experience.
  • Specific Program Needs (Canada): In 2019, only fifteen public universities in Canada offered undergraduate or graduate AI and/or data science courses and programs. Provinces are encouraged to expand these offerings to fill this gap.
  • Alternative Pathways: Not all jobs in the ICT sector require a university degree; in 2017, 45% of ICT workers in Canada did not hold a university degree. This points to the relevance of alternative training options like micro-credential programs, certifications (e.g., Google's professional certificates), and upskilling programs for in-demand job skills. Employers are also urged to shift focus from degrees to skills and recognise non-formal training.
  • Teacher Preparedness: In Canada, only 53% of elementary and middle school teachers felt adequately prepared to teach STEM in 2020, impacting foundational learning for future STEM fields like computer science.
  • Role of Immigrants (US): In the US, foreign-born workers constitute a significant portion of doctoral workers in S&E occupations, indicating a reliance on international talent for advanced roles, including those likely in AI and complex software engineering.
  • Importance of "Soft Skills": Alongside technical skills, employers consistently identify a need for complementary "soft skills" such as critical thinking, problem-solving, communication, collaboration, and leadership, which are often found lacking in STEM graduates and are crucial for success in Enterprise IT roles. Authentic assessments in education, which mimic workplace expectations and require problem-solving and communication, can help develop these transferable skills.

Conclusion

The analysis reveals a complex landscape of skill and knowledge gaps among STEM graduates across India, Canada, and the USA, with distinct patterns emerging in each context, particularly within Enterprise IT, Software Engineering, and AI/Machine Learning.

In Canada, despite a robust supply of STEM-educated immigrants, there is a significant issue of skill underutilisation and substantial earnings gaps for these newcomers, especially those with bachelor's degrees and in engineering fields, and notably for those educated in non-Western countries. While sources present conflicting views on a general STEM labour shortage in Canada, there is clear evidence of specific digital and AI/Machine Learning skill shortages and a "digital brain drain" of Canadian-trained STEM talent, particularly in ICT fields, to the US. Challenges within Canada's domestic education system, such as declining math scores, gender disparities in certain STEM fields, and teacher preparedness, further exacerbate these gaps.

In contrast, the United States appears to integrate STEM-educated immigrants more effectively, demonstrating better occupational skill utilisation and minimal earnings gaps. This is partly attributed to a more positive self-selection of high-ability immigrants and immigration policies that often tie entry to job offers. However, concerns remain about the depth of STEM education, as highlighted by "mile wide, inch deep" curricula critiques.

Graduates from India, largely considered within the "non-Western educated immigrant" category in the sources, often face significant hurdles in Canada, including challenges with credential recognition, perceived quality differences in education, and language barriers, leading to underemployment and lower earnings. In the US, highly skilled Indian doctoral graduates in STEM tend to have high retention rates, suggesting better integration into advanced scientific and engineering roles.

Across both nations, and particularly relevant for Enterprise IT, Software Engineering, and AI/Machine Learning, there's a strong demand for both advanced technical skills and crucial "soft skills" such as communication, problem-solving, and critical thinking. Employers report that recent graduates often lack these essential workplace-ready skills. Solutions proposed include reforming education systems, increasing STEM enrolment and graduation rates, developing specialised AI/Data Science programs, expanding work-integrated learning opportunities, investing in micro-credentials and adult upskilling, and enhancing efforts to retain international STEM talent. Ultimately, addressing these skill and knowledge gaps requires a concerted, multi-faceted approach involving governments, educational institutions, and employers to ensure a globally competitive and adaptable STEM workforce.

IAS-Research.com: Strategic Innovation and Technical Guidance IAS-Research.com contributes to SME AI adoption through its focus on "Research Strategy & Innovation" and "IT Consulting". Specifically, it can help by:

  • Customized Training Programs Offering tailored programs, such as those on TRIZ for innovation, competitive strategy, and growth hacking, to equip SME teams with the skills needed to understand, integrate, and leverage AI agents effectively, thereby addressing skills gaps.
  • Strategic AI Integration Assisting SMEs in identifying the most impactful AI use cases that align with their business goals, ensuring that AI investments are strategic and deliver measurable outcomes, and preventing scattered efforts or over-engineering.
  • Access to Advanced Methodologies Providing access to methodologies like TRIZ (Theory of Inventive Problem Solving) to help SMEs creatively tackle complex challenges that AI agents can solve, such as process optimization or customer service enhancement.
  • Growth Hacking with AI Guiding SMEs in using AI tools for data-driven marketing, A/B testing, social media analytics, and customer segmentation, which directly translates to improved customer acquisition and retention for businesses with limited marketing budgets.

KeenComputer.com: Digital Transformation and Practical AI Implementation KeenComputer.com, with four decades of expertise in Information and Communication Technology (ICT) and Management-based strategic solutions, facilitates SMEs' digital transformation and practical AI implementation. Its core offerings address many SME challenges by:

  • Cost-Effective Digital Transformation Providing affordable website development, e-commerce solutions, and digital marketing services tailored to SME budgets, establishing a foundational digital presence often required for AI agent integration.
  • Simplified, User-Friendly Solutions Implementing user-friendly content management systems (CMS) and offering ongoing support, making AI functionalities accessible without requiring extensive technical knowledge or dedicated IT teams.
  • Integration with Existing Systems Possessing expertise in "engineered IT solutions" and "complex systems level solutions," allowing for the integration of new AI agent tools with an SME's existing legacy infrastructure, minimizing disruption.
  • Practical AI Agent Deployment Focusing on "Digital Transformation & Growth" and "Efficiency & Innovation" to deploy AI tools such as AI-powered chatbots for 24/7 customer support, automating workflows like inventory management and lead generation, and integrating analytics for insights into performance and customer behavior.
  • Training and Empowerment Offering training sessions to enhance digital literacy among small business owners, empowering them to make informed decisions and manage their online presence and fostering internal capabilities for AI adoption.
  • Security and Compliance Likely embedding robust security measures and ensuring compliance in their solutions, addressing a key concern for SMEs handling sensitive data.

Synergy and a Strategic Roadmap for SMEs The combined strengths of IAS-Research.com (strategic foresight and advanced methodologies) and KeenComputer.com (practical digital transformation and technology implementation) create a powerful synergy for SMEs adopting AI agents. Their collaborative approach offers a strategic roadmap for SMEs, which includes:

  • Strategic Assessment (leveraging IAS-Research.com's focus) to identify high-value AI use cases, develop an AI strategy, and provide skill development.
  • Foundational Digital Transformation (leveraging KeenComputer.com's expertise) to establish a robust digital presence, ensure data readiness, and integrate core systems.
  • Phased AI Agent Implementation through collaborative pilot projects, iterative development, and scalable deployment.
  • Ongoing Support and Optimization (from both providers) encompassing continuous monitoring, ensuring security and compliance, and integrating human oversight into AI systems.

This strategic partnership is crucial for democratizing AI for SMEs, bridging knowledge and resource gaps, and unlocking the full potential of autonomous AI for sustainable growth.

Beyond AI agent adoption, these companies offer a broader range of IT and strategic solutions. For instance, in the context of the 4 Disciplines of Execution (4DX), KeenComputer.com provides engineering-led IT services, scorecard implementation, DevOps automation, and RAG system support, while IAS-Research.com offers Model-Based Systems Engineering, innovation KPI design, execution science, and RAG-LLM lifecycle support. In enterprise e-commerce development, KeenComputer.com handles custom e-commerce solutions, platform migration, and optimization, while IAS-Research.com provides technology roadmapping, digital transformation consulting, and AI/data integration. They also address general SMB IT pain points through managed IT services, cloud solutions, and cybersecurity (KeenComputer.com) and IT market research, vendor analysis, and cost-benefit analysis (IAS-Research.com). Their combined expertise also supports continuous discovery habits, offering solutions for feedback tools, rapid prototyping, data-driven insights, and strategic consulting.