Yet, one critical issue threatens to undermine this momentum: the growing scarcity of skilled talent.
The defense and aerospace industry already supports over 1 million direct jobs in Europe and nearly 4 million when including indirect employment—jobs created in the wider ecosystem of suppliers, contractors, and service providers that support the core industry.
This isn’t solely a recruitment issue. It’s a workforce strategy issue.
The challenge is multifaceted. Our research shows that an aging workforce in Europe means up to 25% of the defense engineers and technicians are at or near retirement age. Simultaneously, there is fierce competition for talent, particularly those with the digital and STEM skills crucial for modern defense systems and their adjacent segments.
ASD reports critical shortages in areas like AI, cybersecurity, systems engineering, software development, and advanced manufacturing, with firms already struggling to fill vital R&D roles.
Addressing this crisis requires rethinking the entire talent ecosystem behind defense and critical infrastructure. Three shifts are essential.
Talent is the foundation for long-term readiness
Ultimately, a well-funded defense sector is not enough. Security, readiness, and resilience are only possible with the right people in place. And while the challenges are acute, they are not insurmountable.
The pandemic showed us how quickly public and private sectors can work together to mobilize talent and adapt at speed. With the challenges at hand, Europe’s defense sector can draw on that same sense of urgency and collaboration.
Sander van ’t Noordende is CEO of Randstad.
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