In recent years, the UK job market has softened sharply, yet one sector demonstrates exceptional resilience...Engineering.
Vacancies across both permanent and temporary positions have maintained remarkable strength. April 2025 marked a significant milestone as engineering emerged as the only sector experiencing growth in permanent job openings. This stands in stark contrast to most industries continuing to reduce their hiring activities.
This pattern represents a consistent trend: in April 2024, the engineering sector recorded the strongest growth in permanent vacancies among all monitored fields, and throughout 2024, engineering substantially outperformed other sectors.
Recent KPMG/REC data clearly indicates that demand for engineers has remained considerably more robust than the economy-wide average.
Drivers of Engineering's Resilience
Several key factors explain the sustained strength in engineering demand:
Continued infrastructure and capital spending: The UK government has maintained infrastructure and construction projects, with increased capital budgets in 2025. The recent Spring Statement confirmed additional funding for transport, housing, and skills, including a £625m boost for construction training. Large-scale projects such as transport upgrades, power grid expansion, and housing programmes typically require sustained engineering headcount over multiple quarters, supporting consistent vacancy demand.
Skills shortage: The UK has faced a long-term engineering talent shortfall. Industry bodies report that Britain needs approximately 124,000 new engineers and technicians annually to meet demand, with the current gap running into tens of thousands per year. This limited supply compels employers to maintain aggressive hiring practices even during budget constraints. The Institution of Mechanical Engineers highlights that engineers constitute the foundation of growth industries, and the current shortage impedes sectors such as clean energy and advanced manufacturing.
Project cycles and core industry needs: Engineering projects typically operate on extended timelines. With numerous public and private sector projects currently scaling up or reaching critical phases (including energy plant construction, defence equipment upgrades, and manufacturing expansions), organisations remain committed to established hiring schedules. Various industries, including automotive, aerospace, and construction, have announced multi-year plans requiring specialist engineers. This cyclical demand pattern sustains engineering jobs even as companies reduce staffing in other areas.
These combined factors maintain high competition for engineering talent, with recruiters reporting that both wages and vacancies in engineering continue to benefit from the persistent imbalance between demand and supply.
Outlook for Employers and Recruiters
The engineering jobs outlook for the upcoming summer appears cautiously optimistic.
Recent indicators suggest the economic downturn may be easing: REC's Neil Carberry notes fewer firms are reducing vacancies, and "the point at which demand from employers for new staff starts to turn around" could be approaching.
Should economic confidence stabilise, engineering, traditionally serving as an indicator sector for investment, might lead a recovery in hiring activities.
However, caution remains advisable. As KPMG's Jon Holt observes, global uncertainties and cost pressures continue to drive conservative hiring practices across companies.
Engineering maintains its position as one of the strongest performers in the UK jobs market. Its comparative strength in permanent hiring throughout the past year, unique among sectors, reflects fundamental market dynamics.
