28th January 2026

UK Aerospace Industry Update: What It Means for Hiring in 2026

The UK aerospace sector is entering 2026 with unprecedented opportunity alongside acute talent challenges. For engineering and manufacturing organisations, understanding these dynamics is critical to securing the skilled professionals needed for growth.

Record Demand Amid Critical Skills Gaps

Despite being the world's second-largest aerospace industry, the UK faces a growing skills paradox. With 16,000 aircraft orders representing £257 billion of potential work and 13 years of production, the sector has enviable job security. Commercial orders surged 84% in August 2025, yet production remains constrained by a fundamental challenge: people.

Despite median wages 39%-40% above the national average at £48,700 and 26,000 apprentices annually, over 10,000 vacancies remain unfilled across aerospace, defence, and space sectors. This skills gap is delaying deliveries and hampering the industry's ability to capitalise on its order backlog.

Defence Investment: Driving Recruitment Demand

UK defence spending is set to reach 2.6% of GDP by April 2027 and to 3.5 per cent by 2035, representing the largest sustained increase since the Cold War. The Global Combat Air Programme's Tempest fighter will support an average of 21,000 workers annually from 2026 to 2050 and contribute an estimated £26.2 billion to the economy by 2050.

This creates sustained demand for engineering talent, project managers, quality assurance professionals, and technical specialists with security clearance capabilities.

Sustainability: Creating New Skill Requirements

Net-zero aviation targets are reshaping workforce needs. The UK's Sustainable Aviation Fuel requires fuel suppliers to blend a minimum of 2% SAF into the total jet fuel supplied for flights taking off from the UK, with this rising incrementally to 10% by 2030 and further to 22% by 2040. With £250 million announced for green aerospace technologies and the Aerospace Technology Institute receiving £975 million for 2026-30, demand is surging for professionals skilled in hydrogen systems, electric propulsion, and sustainable manufacturing.

Traditional aerospace engineers need evolving capabilities while entirely new roles emerge at the aerospace-environmental technology intersection.

AI and Digital Transformation

With 82% of aerospace executives viewing AI as a growth driver, manufacturers are integrating AI into core operations. This demands data scientists with aerospace applications knowledge, machine learning engineers for predictive maintenance, and evolved traditional roles where quality engineers interpret AI insights and production managers optimise AI-driven scheduling.

Strategic Talent Planning as Competitive Advantage

Organisations thriving in 2026 treat talent acquisition as a strategic imperative, integrating workforce planning with business strategy and building employer brands that resonate with aerospace professionals' values.

With £257bn of secured work, accelerating defence programmes, and sustainability-driven innovation, the industry's trajectory is clear. The question is whether your organisation has the talent strategy to participate fully in this growth.

Owen Daniels delivers specialist STEM recruitment solutions for aerospace and defence. With dedicated account management and deep sector expertise, we treat our clients' business as our business.