The UK's engineering sector continues to demonstrate remarkable resilience, with employers maintaining strong demand for skilled professionals even as wider recruitment activity remains under pressure.
The latest KPMG and Recruitment and Employment Confederation (REC) UK Report on Jobs shows engineering was one of only two sectors to record an increase in demand for permanent staff during June. Temporary engineering vacancies also continued to grow, highlighting the sector's importance to business investment and long-term economic growth.
The figures contrast with the broader labour market, where overall demand for permanent staff weakened during June as businesses remained cautious about recruitment amid continuing economic uncertainty.
Industry experts say engineering employers are continuing to recruit because projects involving infrastructure, advanced manufacturing, automation, renewable energy and digital transformation cannot easily be delayed without affecting future growth.
Businesses across aerospace, defence, electronics, manufacturing, energy and civil engineering are reporting continued demand for experienced engineers, technicians and specialist project professionals.
Recruitment firms say employers are increasingly competing for candidates with expertise in automation, robotics, software engineering, artificial intelligence, semiconductor technology and electrical engineering as organisations accelerate investment in new technologies.
At the same time, engineering employers continue to face one of the UK's most persistent skills shortages.
Recent business research from the British Chambers of Commerce (BCC) found that nearly three-quarters of employers attempting to recruit new staff continue to experience hiring difficulties, with skills shortages remaining a major obstacle to business growth. The organisation is calling for greater investment in workforce development and practical support to help employers train and retain skilled workers.
The shortage of engineering talent is encouraging many organisations to invest more heavily in apprenticeships, graduate recruitment and internal training programmes to develop future skills.
Engineering recruiters also report growing demand for professionals who combine traditional engineering expertise with digital skills, including data analysis, artificial intelligence and industrial automation.
Industry leaders believe these hybrid skillsets will become increasingly valuable as manufacturers modernise production facilities and infrastructure projects incorporate more digital technologies.
While many sectors continue to recruit cautiously, engineering employers are pressing ahead with hiring plans because technical vacancies often take considerably longer to fill than roles in other industries.
Specialist recruitment consultancies report that engineering recruitment continues to outperform much of the wider labour market, driven by ongoing investment in innovation, automation, clean technologies and advanced manufacturing.
Despite economic uncertainty, employers remain optimistic about long-term demand for engineering professionals as both public and private sector investment continues across infrastructure, defence, renewable energy and advanced manufacturing projects.
Recruitment experts believe addressing the engineering skills gap will remain a priority over the coming years, with employers expected to increase investment in apprenticeships, technical education and workforce development to secure the specialist talent needed to support future growth.
Sources
- KPMG & Recruitment and Employment Confederation (REC) – UK Report on Jobs, July 2026
- British Chambers of Commerce (BCC)
- Redline Group – UK Labour Market Insights: Engineering and Technology Recruitment