It's strong, and it's still growing. Defence spending now supports a large share of the UK workforce, and the trend is up. 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 MOD supported employment estimates 2023/24 - GOV.UK. That builds on a run of yearly rises.
The direction of travel is clear. The total number of MOD-supported UK jobs reached 239,000 in 2022/23, an increase of 6% on the previous financial year MOD supported employment estimates 2022/23 - GOV.UK. Recruitment activity has been climbing too, with surveyed recruitment in the defence sector growing by 17.8% in 2022 Defence sector continues contributing significantly to UK economy - GOV.UK.
Fresh money is fuelling more of the same. 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 Defence dividend delivers thousands of UK jobs following exceptional foreign investment - GOV.UK. For shipyards working through longer order books, that means a steady, multi-year pipeline of work and the hiring that comes with it.
Engineering sits at the centre of it. Shipbuilding leans on naval architects, marine and structural engineers, welders, fabricators, electrical and systems specialists, and the project managers who hold complex programmes together. The problem is supply. 76% of engineering employers struggle to recruit for key roles, with technical and specialist sustainability skills topping the list Institution of Engineering and Technology (IET).
There's a homegrown angle to this too. For the engineering profession, the vast majority of new hires come from the resident labour force, indicating low reliance on international recruitment GOV.UK - Professionals in IT and engineering. In other words, the people you need are largely here already, so the task is finding, attracting and keeping them rather than looking overseas.
One warning sign is worth watching. In engineering, entry-level hiring has fallen to -19% while senior hiring sits at -10%, a 9-percentage-point gap GOV.UK - A snapshot of entry-level hiring in the UK. If yards don't bring in and train new starters now, the shortage of experienced hands only deepens as today's skilled workers retire.
Start with the pipeline, not the single vacancy. Longer order books give you rare certainty about future demand, so plan hiring across the life of the programme. Map the roles you'll need in two years, not just this quarter, and build apprenticeships and early-career routes to close that entry-level gap GOV.UK - A snapshot of entry-level hiring in the UK before it bites.
Compete on more than the role. With 76% of engineering employers struggling to recruit for key roles Institution of Engineering and Technology (IET), speed and clarity matter. Write plain job descriptions, be upfront about security clearance and site requirements, and move quickly once someone strong appears. In a tight market, a slow process loses good people to faster competitors.
Look close to home first. Since most engineering hires come from the resident labour force GOV.UK - Professionals in IT and engineering, invest in local talent: partner with colleges near your yards, retrain workers from adjacent sectors, and keep the people you already have by offering progression. Retention is recruitment when skills are this scarce.
When demand is high and skilled people are scarce, the edge is speed and reach. We search a database of 15 million candidates to find people with the engineering and skilled-trade backgrounds these programmes need, then rank a shortlist so you can move fast. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost, through Reed.ai. Tell us the role and see your shortlist today.
