There is one very large problem with the results we are seeing - the standard of the exam papers.
I have friends with teenagers that have just passed their A-Levels in maths and physics and are looking to engineering as their future (I hope the decision was helped because I did a little pushing in that direction). I did rather floor them earlier in the week when I dug out my old O-level GCE papers from the 50s and let them have a go at them. They considered them much harder than their A-Level papers (they didn't want to even look at my A-level GCE papers).
From my rather small direct sample and what I see at clients employing new engineering graduates, there is a real need for the standard of the STEM examinations to be raised much higher than it is.
For that to happen there are two other things needed (apart from better teachers).
First there needs to be a cultural shift in peoples attitudes to STEM and engineering in general. Engineers, and I use that in a general all inclusive sense, are the life blood of society, without them our civilisation would grind to a halt. Despite this the public's perception is that engineers are second rate.
Second, there needs to be a shift in how employers view engineers. At the moment they appear to be considered as a necessary evil to be endured rather than encouraged. That includes pay levels being equal or above sales staff.