Labour Market Overview: UK Defence, Aerospace, Space & Nuclear Industries Show Signs of Hiring Stability Amid Economic Headwinds

Emily Squance • July 1, 2025

Modest growth in job postings, despite dip in active vacancies

The UK labour market saw modest movement in May 2025, with 726,084 new job postings recorded – a 0.3% increase on April's figures. However, the total number of active vacancies dipped by 1.8%, to 1,440,792, as older listings expired. While this shift signals a maturing phase in the broader hiring cycle, the data reflects a sector-specific resilience that is particularly relevant for high-value, strategically critical industries like Defence, Aerospace, Space Research, and Nuclear.


According to the latest Labour Market Tracker from the Recruitment and Employment Confederation (REC) and Lightcast, there is cautious optimism underpinning hiring efforts across the UK – particularly in Scotland (9.2%) and the South West (4.7%), where job postings saw the most notable regional increases. These growth areas include key hubs for advanced manufacturing, defence technology development, nuclear engineering, and aerospace R&D – all sectors aligned with the UK’s long-term security and innovation agenda.

Market conditions set the stage for strategic investment

With the UK past its interest rate peak, holding a stable geopolitical climate, and showing progress on international trade alignment, industries operating in defence and advanced technologies are well-positioned to take advantage of medium- to long-term growth opportunities. We are beginning to see promising movements in industrial strategy and the growth of new tier 1 and 2 contractors creating an outpouring of opportunity within the UK jobs market.


For defence, space and nuclear employers, the coming months will be pivotal. As infrastructure investments and industrial strategy announcements unfold, the emphasis must be on creating conditions that support sustainable hiring in sectors fundamental to both national security and technological sovereignty. The modest uptick in new postings, combined with targeted regional growth, offers a tentative signal of momentum, but the true test lies in how effectively policy aligns with the needs of strategic industries in the months ahead.


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