Engineering Talent Market Update 2025

We’re officially halfway through 2025 – and if there’s one thing we can say with confidence, it’s that the engineering jobs market isn’t slowing down anytime soon. Across every market, we’re seeing demand for engineering talent surge, but the supply of skilled professionals just isn’t keeping up. Whether you’re hiring or job hunting, here’s what’s happening across the Engineering Talent market right now.

Engineering Workforce Snapshot

UK

According to Engineering UK’s May 2025 report, there are now 6.4 million people working in engineering and technology roles across the UK – that’s about 1 in 5 workers (19.3% of the total workforce).

There’s been a small but positive shift in gender diversity: women now represent 16.9% of the UK engineering workforce, up from 16.5% last year. Good news – but let’s be honest, there’s still a long way to go.

Ethnic diversity however is still playing catch-up. 14% of engineers in the UK come from minority ethnic backgrounds, compared to 18% across the wider UK workforce. And when it comes to disability inclusion, only 14% of engineering professionals identify as disabled, versus 19% across other UK sectors. Accessibility and inclusion remain big topics for the industry.

The UK’s data centre market is experiencing significant growth, driven by the increasing demand for AI and cloud computing. The current data centre capacity stands at approximately 1.7 GW, with projections indicating a rise to 4 GW across 21.5 million sq. ft. in the coming years. London leads the upcoming data centre market in the UK with over 60% of the total power capacity.

This expansion is creating a surge in demand for engineers skilled in AI infrastructure, cloud systems, mechanical, electrical, and mission-critical systems. If you’re in this space as a candidate, now is the time to get noticed.

Middle East (GCC)

The engineering talent race in the GCC continues at full speed in 2025. Saudi Arabia’s Vision 2030 and megaprojects like NEOM and The Line are driving huge demand for engineers across infrastructure, MEP, and project management. Meanwhile, the UAE’s push towards smart cities, clean energy, and a booming data centre market means demand is sky-high for both local and expat talent.

The numbers tell the story with the GCC data centre market is set to grow from $3.48 billion in 2024 to $9.49 billion by 2030, fuelled by cloud computing, AI demand, and digital transformation.

But skills shortages remain a top concern. Gulf employers are struggling to fill engineering roles, and nationalisation targets (especially in Saudi and UAE) are putting extra pressure on local hiring pipelines.

Amidst the challenges, there’s a bright spot for diversity. 56% of STEM graduates in the UAE are women – one of the highest rates globally!

United States

The US engineering sector is experiencing a significant surge in demand, particularly in fields like civil, electrical, and environmental engineering. According to the US Bureau of Labor Statistics (BLS), engineering job openings remain significantly above pre-pandemic levels.

The growth of data centres is a major driver. Data centre power demand in the US is expected to double to 35 GW by the end of the decade, with Northern Virginia, Dallas-Fort Worth, Phoenix, Chicago, and Silicon Valley being major contributors .

This expansion is fuelling a significant demand for skilled professionals in AI and related technologies. If you’re an engineer specialising in these areas, opportunities abound.

Skills Shortages Are A Global Challenge

The global engineering talent crunch is intensifying. In the UK alone, industry bodies estimate a shortfall of 37,000 to 59,000 engineers per year. This gap is widening due to an ageing workforce and underinvestment in training over the last decade.

In the Middle East and the US, the picture is similar. Companies are loosening job specifications, offering relocation packages, and embracing remote-friendly roles to stay competitive.

At Energi People, we’re seeing more clients requesting passive candidate sourcing, international search support, and speed-to-market recruitment campaigns.

2025 Hiring Trends: What’s Changing?

Here’s what’s shaping recruitment across all three regions:

• AI-Powered Hiring: From CV screening to interview scheduling, AI is making processes faster—but concerns about fairness and algorithmic bias are growing.

• Skills-First Recruitment: Employers are focusing on transferable skills and potential, especially for emerging sectors like green energy, AI infrastructure, and smart buildings.

• Regional Talent Migration: The UK’s ‘brain drain’ from the North to the South continues. In the Gulf, talent shifts between the UAE and Saudi Arabia are evident as salaries and benefits compete.

• Remote & Hybrid Flexibility: Employers offering flexible working models- especially for design, consultancy, and project management roles – are attracting top talent. This is high on the priority list for Engineers.

• Diversity and Inclusion: There’s growing recognition that engineering needs to reflect the communities it serves. From school outreach programmes in the UK to women-in-tech initiatives in the US and GCC-wide diversity targets, businesses are stepping up.

What Does This Mean for Employers?

If you’re hiring engineers in 2025, here’s our advice:

• Move fast: The best candidates won’t wait.

• Be open to transferable skills: Especially from similar sectors.

• Offer development, flexibility, and competitive packages.

• Partner with specialist recruiters (👋 Hi there…) who know your sector inside out.

What About Candidates?

If you’re an engineer considering a move – Yes it’s still very much a candidate-driven market.

Whether you’re UK-based, looking at Middle East opportunities, or considering a US move, your skills are in demand. Now’s the time to:

• Upskill in growth areas: AI, renewables, digital infrastructure.

• Get your CV in shape.

• Explore roles you might not have considered before.

Need Help Navigating This Market?

Whether you’re hiring or job hunting, Energi People’s engineering recruitment specialists are here to help. Get in touch with us today for tailored advice.