Engineering Talent 2024 Market Update

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Posted 01.08.24

Engineering Talent 2024 Market Update

Some Positivity amid Challenges

As a recruitment consultancy with two decades of experience within the engineering sector, we’ve seen a number of market ups and downs over the years. The engineering talent market right now is presenting a mix of opportunities and challenges. However despite some seasonal slowdowns and economic uncertainties pre and post election, there’s actually a lot to be optimistic about. Mainly thanks to the high demand for specialised roles and ongoing project demands.

So here is the Engineering Talent 2024 market update from Director James Mowat.

Market Trends and Seasonal Effects

The engineering market has always been influenced by seasonal trends. In springtime, we usually see a hiring surge as companies push to meet mid-year targets. However, during the summer months, we often experience a slight dip, especially in contract roles, as summer holidays affect the availability of candidates and hiring managers.

Despite these seasonal slowdowns, the demand for permanent placements remains strong. This trend shows a growing preference for long-term investments in talent, particularly for roles requiring specialised skills and experience.

Need for Specialised Roles

One of the most encouraging trends we are seeing in the market is the increasing demand for specialist engineering roles. Recent reports highlight the significant rise in hiring for positions related to sustainable engineering, digital transformation, and infrastructure development. Roles that are critical as businesses and governments push for greener solutions and smarter infrastructure.

  • With a bigger emphasis on sustainability, there’s significant demand for engineers working on projects aimed at reducing carbon footprints and improving energy efficiency. Roles in renewable energy, waste management, and sustainable construction are particularly in demand.
  • The rise in reliance on digital infrastructure has led to a surge in demand for engineers with data centres and mission-critical expertise. As more businesses depend on cloud computing, the need for professionals who can design, build, and maintain these critical facilities has never been higher. Roles in this sector are seeing significant growth, driven by the need for reliable and secure data management.
  • Government initiatives and private investments in infrastructure projects continue to fuel demand for civil, structural, and transportation engineers. These projects are crucial for economic development and urban planning.

Contract vs. Permanent Placements

While the summer slowdown affects contract placements, there’s a different story for permanent roles. According to the latest statistics from EngineeringUK and Institution of Engineering and Technology (IET):

  • Permanent Placements: There’s been a 15% increase in permanent placements compared to the same period last year. This growth is driven by organisations wanting stability and long-term expertise to navigate their growth and project goals.
  • Contract Placements: Contract roles, though experiencing a seasonal dip, have shown resilience with only a 5% decrease during the summer months. This slight contraction is not unusual and typically bounces back come September/October as projects pick up post-holidays.

What is Driving Demand?

Investment in smart city initiatives and infrastructure upgrades, are creating a steady demand for engineers in town planning, transportation, and utilities. That coupled with governments setting ambitious renewable energy targets, projects in solar, wind, and hydroelectric power are requiring a specialised workforce.

The expansion of data centres and focus on data security and resilience are driving demand for skilled engineers with both LV and HV experience, especially power management and cooling solutions.

Looking Ahead

The outlook for the engineering talent market for the rest of the year remains pretty optimistic despite seasonal fluctuations. The need for specialist roles, mixed with the steady flow of infrastructure and sustainability projects, is ensuring an optimistic rest of the year.

While the summer months may bring a temporary slowdown in placements, the overall state of the engineering talent market is one of growth and optimism. We are excited to continue our role in shaping the future of the built environment by placing the right talent in the right roles, ensuring success for both our clients and candidates.

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