Demand is climbing fast. MOD expenditure with industry supported a total of 272,000 direct jobs in 2023/24, an increase of 11% compared to the previous financial year, according to the MOD supported employment estimates for 2023/24. That builds on the year before, when the total number of MOD-supported UK jobs reached 239,000 in 2022/23, an increase of 6% on the previous financial year, as set out in the MOD supported employment estimates for 2022/23.
The sector is also drawing in fresh investment. More than 1,700 new jobs are being created across the UK defence sector following at least £1.4 billion in foreign direct investment committed since July 2024, the government reported in 2025. And hiring momentum was already strong: the defence sector continued to be an attractive employer, with surveyed recruitment growing by 17.8% in 2022, per GOV.UK figures on the sector's economic contribution.
So the pipeline question matters more than ever. As the Engineering the Future of Defence study launches in 2026, employers need a clear read on where the people will come from, with 76% of engineering employers already struggling to recruit for key roles Institution of Engineering and Technology (IET).
Engineering talent is scarce and sought after. 76% of engineering employers struggle to recruit for key roles, with technical and specialist sustainability skills topping the list, according to the Institution of Engineering and Technology in 2025. And the people already in post are restless: 79% of UK technical professionals plan to change employers in 2026, found recruitment firm Rise Technical's Insights Report surveying over 500 employers and 1,000 candidates, as reported by Engineering and Technology Jobs.
The entry-level picture is a worry for long-term supply. In engineering, entry-level hiring has fallen to -19% while senior hiring sits at -10%, a 9-percentage-point gap, according to a GOV.UK snapshot of entry-level hiring in the UK. That gap narrows the junior pipeline just as demand grows.
The longer view confirms the pressure. Occupations in digital, adult social care, construction and engineering have the greatest additional employment demand between 2025 and 2030, per Skills England's assessment of priority skills to 2030. More broadly, demand for key occupations will grow by nearly 25% in the next decade, with 1.8 million new priority jobs expected by 2035, according to a 2026 Skills England report on skills gaps.
Start with the talent you can realistically reach. For the engineering profession, the vast majority of new hires come from the resident labour force, indicating low reliance on international recruitment, according to a GOV.UK review of professionals in IT and engineering. That means competing well at home: clear role definitions, fast decisions and a hiring process that respects people's time.
Move quickly on the people who are open to a change. With 79% of UK technical professionals planning to change employers in 2026, per Rise Technical's Insights Report via Engineering and Technology Jobs, a slow process loses good people to faster rivals. Shorten the gap between first contact and interview, keep communication warm and be upfront about security clearance timelines.
Build the junior pipeline deliberately. With entry-level engineering hiring at -19%, per the GOV.UK entry-level hiring snapshot, apprenticeships, graduate schemes and early-careers routes protect your supply for the decade ahead. Treat training as a recruitment advantage, not a cost.
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