As geopolitical tensions continue to reshape the global order, European nations are ramping up defense spending at a pace unseen in decades. In 2024, the region’s defense turnover reached over €290 billion—a 10.1% increase year-on-year. Through substantial investments in land systems, military aviation, cybersecurity, and naval forces, Europe has signaled a clear ambition to play a more autonomous role in global security.
Yet, one critical issue threatens to undermine this momentum: the growing scarcity of skilled talent.
Defense investments outpace workforce supply
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.
But beneath the numbers lies a structural challenge. The European Union alone could face a tech talent gap of up to 3.9 million people by 2027, according to McKinsey, with demand outpacing supply by as much as 4 to 1. At the same time, Randstad analysis shows that the defense industry is expected to grow from 1 million to over 1.46 million direct jobs by 2030—a surge that will intensify competition for critical skills across engineering, cybersecurity, and advanced manufacturing. Already, 60% of employers cite talent shortages as a key barrier to digital transformation—a major risk for a sector racing to modernize its systems and supply chains.
And it’s not just high-tech specialists. Analysis at Randstad shows that the industry is also contending with a talent gap related to skilled trades—CNC machinists, aircraft technicians, and welders are retiring faster than they’re being replaced. In some trades, 40% of the workforce will exit by 2030.
This isn’t solely a recruitment issue. It’s a workforce strategy issue.
The talent paradox: growth meets scarcity
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.
Attrition in the EU defense workforce now stands at 13%—more than four times the U.S. rate. Professionals, especially engineers, are drawn to adjacent sectors like IT and automotive, often lured by more dynamic environments, faster growth opportunities, and significantly higher compensation—sometimes 20%-50% more for comparable roles. Adding to the complexity are long delays in security clearances and a perception among some younger professionals of a rigid culture.
A collective call to action
Addressing this crisis requires rethinking the entire talent ecosystem behind defense and critical infrastructure. Three shifts are essential.
Broaden the definition of where talent comes from. Randstad analysis indicates that Europe has over 17 million skilled professionals in adjacent industries—automotive, aerospace, tech—who could transition into defense roles with the right support. Engineers who design electric vehicles, for example, already have significant skills overlap with those needed in advanced defense manufacturing. Governments and companies must invest in talent mobility pathways and retraining programs to tap this underused potential. Build a “full potential” talent strategy. That means investing in upskilling, reskilling, and modern vocational training—particularly in digital skills now required even in traditional roles. From project management to drone simulation to cybersecurity, Europe’s defense future depends on a workforce ready to work at the intersection of physical and digital. Make defense a career of choice. This involves more than just salary. Workers—especially younger generations—value purpose, flexibility, progression, and equity. The defense sector must modernize its employer brand and organizational culture to meet these expectations. It could also do more to ensure women (who hold just 20% of positions in the industry, following Randstad data), underrepresented groups, and mid-career changers can see themselves in this space.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.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
This story was originally featured on Fortune.com
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