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After a successful visit to the Aerospace Wales Expo in Llandudno at the tail end of Q1, we sat down with aerospace, defence and space SMEs and employment lawyers to discuss the upcoming Employee Rights Act and how it impacts hiring strategy, culture and retention in the context of the new financial year. The Employee Rights Act 2025 is the biggest shake up in employment law that many of us will have seen in our lifetimes. It's a silent change in risk, workforce control and support and, potentially, programme delivery stability.
The UK labour market is tightening for junior engineers. Youth unemployment has risen to ~16% amongst 16-24 year olds, with nearly one million young people being NEET (not in employment, education or training). Engineering apprenticeships have fallen by approximately 40% since 2017, yet the UK manufacturing sector still needs an estimated 168,000 new workers per year. This creates a paradox: a skills shortage alongside a hiring bottleneck for junior candidates.
The UK space sector is growing at pace, but access to skilled talent is getting harder. According to the UK Space Agency, the UK space sector generates over £17 billion in annual income and employs more than 45,000 people. Growth ambitions continue to remain high, particularly in satellite technology, launch capability and space-enabled services. However, employers consistently report skills shortages across systems engineering, satellite communications, propulsion and ground segment operations.
