Defence Industry Employment 2024
The UK defence industry is facing significant challenges in 2024, with increased threats from overseas, particularly from Russia, and a continued reduction in defence investment. The UK's armed forces are struggling with gaps in capabilities and personnel due to long-standing budget cuts. Notably, Germany's 2024 defence budget has surpassed the UK's for the first time since WWII, underscoring the disparity in funding between NATO allies.
While the UK government has pledged continued support for Ukraine and its military efforts, funding for conventional forces, including munitions and maintenance, has not risen in real terms since 2022.
The UK has responded by initiating strategic reviews and commitments to increase long-term investment in national defence. However, the ongoing commitment to support Ukraine and NATO has placed additional strains on the national defence budget. These circumstances are compounded by recruitment challenges, as the armed forces face difficulties in attracting and retaining talent, particularly in highly technical areas like cybersecurity and advanced manufacturing.
In this context, the UK is also prioritizing the integration of advanced technologies like AI, which is anticipated to play a larger role in both military operations and defence supply chains to improve resilience.
Nonetheless, the UK defence industry is at a crossroads, balancing urgent strategic needs with constrained resources and a competitive global defence landscape.
The UK Armed Forces have seen considerable shifts in both employment rates and their overall size due to budget constraints, evolving global security threats, and strategic changes in defence policy.
Size of the UK Armed Forces:
The UK armed forces have seen a gradual reduction in size over recent years, mainly due to funding constraints and an evolving security landscape. As of 2024, the UK Armed Forces consist of:
Royal Navy: Approximately 30,000 personnel.
British Army: Around 76,000 personnel, a reduction from over 100,000 in the past decade.
Royal Air Force: About 35,000 personnel.
This marks a trend of declining military personnel numbers, particularly in the British Army, where reductions have been a core part of strategic reviews and cost-saving measures. This decline has been seen as detrimental by some experts, as it reduces the ability to quickly mobilize and respond to external threats.
Defence Industry Employment:
Employment in the UK defence sector spans beyond the military personnel in the armed forces and includes a wide range of civilian roles in defence contractors, manufacturing, engineering, and technology. The defence industry is a significant employer, supporting around 250,000 jobs across the UK, from the Ministry of Defence (MoD) to contractors like BAE Systems and Lockheed Martin UK
However, the industry has faced challenges in recruitment, particularly in specialist roles related to cybersecurity, artificial intelligence, and advanced engineering. As the UK places a greater emphasis on AI and technology integration into defence systems, there is increasing demand for skilled professionals in these areas
. The Royal Navy and RAF have faced particular difficulties in recruiting and retaining personnel, with lower-than-expected enlistment figures in recent years
Impact of Defence Budget Cuts:
The UK’s defence budget has been under pressure, especially as global geopolitical tensions rise, such as the war in Ukraine. The defence budget has remained relatively stable in real terms, but when adjusted for inflation, it has not kept pace with the increasing costs of modern defence technologies and infrastructure. In 2024, while there have been commitments to continue support for Ukraine, especially in the form of financial and military aid, the broader defence spending remains constrained. This impacts the growth of the armed forces and defence sector employment
Efforts to Address Recruitment and Skills Gaps:
To counter recruitment challenges and employment gaps, the UK Ministry of Defence has focused on efforts to modernize and make military careers more attractive. These include improving work-life balance, offering better pay and benefits, and emphasizing technological training to align with the growing importance of cyber capabilities and artificial intelligence in defence strategy
In summary, while the UK defence industry and armed forces are adapting to modern security needs, they face challenges due to employment issues, reduced personnel, and budget constraints. The shift toward technological integration offers new opportunities, particularly for skilled professionals in cybersecurity and AI, yet these challenges continue to affect the UK's ability to maintain a robust and ready military force.