Defense industry rushing to hire workers as military spending spikes
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There's an "unprecedented" scramble underway to find defense industry workers, per a new FT report and survey of nearly two dozen U.S. and European companies in the sector.
Why it matters: Russia's invasion of Ukraine more than two years ago coupled with evolving geopolitical risk have pushed global military spending to new highs.
- In 2023, countries spent $2.4 trillion on defense in total — the most ever recorded by the Stockholm International Peace Research Institute.
- U.S. military expenditures represented 37% of the world's share, trailed by China at 12%, Russia at 4.5% and India at 3.4%.
At the same time, defense giants have been on their heels after decades of competition with Big Tech over talent.
Driving the news: Businesses built to serve defense ambitions are now recruiting at the fastest rate since the end of the Cold War, the FT reports.
- Lockheed Martin, Northrop Grumman and General Dynamics, whose combined market cap exceeds $250 billion, have nearly 6,000 roles to fill.
- Ten more major players are aiming to add roughly 37,000 positions altogether — or about 10% of their collective workforce — ranging from apprentices, engineers, software developers and analysts to senior executives.
- The Nuclear Skills Delivery Group, a trade organization in the U.K., forecasts more than 30,000 new jobs will be needed in the nuclear sector alone this decade.
The big picture: A trustworthy supply chain and reliable munitions production is critical to waging war.
- Sloppy logistics, for example, crippled Moscow's war machine in the opening months of the Russia-Ukraine war.
- Dependencies on foreign parts can also jeopardize critical technologies in wartime. To that end, the U.S. Army and Navy have reduced their reliance on Chinese suppliers.
What they're saying: Hiring and training have been "unprecedented in recent times," Beccy Pleasant at the Nuclear Skills Delivery Group told FT.
- "We don't adequately recognize or cultivate nontraditional career paths and skills, which are becoming more and more essential as warfare and defense technologies evolve," U.S. Army Recruiting Command Chief of Innovation Col. Kristin Saling said at a public meeting this spring.
What we're watching: Apprenticeships, increased work flexibility and streamlined security clearance processes could help with private sector recruiting.
- Meanwhile, government agencies and the armed services are rolling out incentives, such as bonuses for cyber talent, to attract and retain workers.
- Talent exchanges — where troops circulate across private-sector, academic and military projects, as has been floated by the Pentagon — could also grow the workforce pipeline.
