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2025: Engineers face an uncertain jobs market, but high demand persists for those with the right skills

Published on: 6 Jan 2025

With the engineering sector always at the cutting edge of science and technology, the jobs market can be subject to major changes year-on-year and 2025 is no exception. This post looks at what is in store for engineering jobseekers in the coming year.

2025: Engineers face an uncertain

High demand but talent shortages persist
The engineering sector shows a Net Employment Outlook of +24%, yet hiring is set to slow compared to recent quarters. This contradiction stems from an ongoing talent crunch, with 81% of companies finding it hard to secure suitable applicants. 

Benefits and compensation
Since 54% of employees place wages at the top of their list when weighing job offers, businesses must provide attractive pay and perks to draw in the best candidates. This involves not only higher salaries but also full benefits packages and a positive workplace environment. 

Greater emphasis on ‘soft skills’
With growing using of AI and automation, people skills like talking, teamwork, and tackling problems are growing more crucial. Companies may feel the need to tweak their hiring methods to evaluate these abilities alongside technical know-how. 

Hybrid work
The increase in hybrid work arrangements has made it harder to separate work from personal time. Companies must find a balance between encouraging office attendance and teamwork while ensuring their employees' well-being and freedom to choose. This change brings both hurdles and chances for engineering businesses to overcome and seize. 

Economic uncertainty
Experts predict the UK economy will grow by about 1.5% to 2% in 2025, but this might not lead to more hiring. Changes in government rules, like higher National Insurance payments for employers and increased minimum wages, could affect jobs and pay rates.

Work culture
Building a good work culture and making employees happy will play a big role in getting and keeping the best workers. This means giving chances to grow careers caring about worker health, and creating a helpful workplace. 

Opportunities in specific fields 
Some fields, like clean energy and building projects, will grow and hire more people. These areas will give chances to engineers who have special skills and know-how. 

High demand for skilled workers will persist in the UK engineering job market in 2025, but a lack of those with the right skills will persist. Companies may also need to change how they hire to focus on people skills, alongside a mix of office and home work, and keeping workers happy in a competitive market.