The UK engineering sector is entering a transformative phase in 2025, shaped by shifting skills demands, economic uncertainty, and a new government agenda. While concerns are mounting among some employers due to Labour’s recent budget announcements, there’s also plenty of optimism. Increased investment in manufacturing, clean energy, and skills development is laying a strong foundation for job growth in engineering across the country.
Whether it’s harnessing digital twin technology, integrating AI and robotics, or prioritising sustainable design, engineering firms will need forward-thinking professionals with adaptable and highly specialised skills.
Based on the 2025 Hays Salary & Recruiting Trends guide, which draws insights from over 10,000 salary data points and nearly 400 professionals across the engineering and manufacturing sectors, we’ve identified the roles that are expected to see the highest demand and salary growth this year.
Why Engineering Salaries Are Rising Skills shortages continue to challenge employers across the engineering landscape. An overwhelming 98% of engineering employers reported difficulty in finding the right talent over the past year a figure that’s remained steady year-on-year. In response, salaries have increased, particularly for professionals in niche and in-demand roles.
Over the past 12 months, 82% of engineering employers raised salaries, with an average increase of 4.1% up from 3.6% the previous year. Looking ahead, 79% of employers say they plan to give further pay rises in 2025. This upward trend reflects not only a response to inflation and competition, but also the urgent need to secure the right technical skillsets to keep projects moving forward.
The Most In-Demand Engineering Jobs for 2025
Hiring activity is particularly strong in areas where digital and traditional engineering skills intersect. Employers are actively seeking candidates who can bridge gaps between hardware and software, and who can support the shift toward renewable energy and smart infrastructure.
Here are the top 10 engineering jobs to watch in 2025:
- Embedded Software Engineer
Combining electronics and software expertise, these engineers are crucial for modern automation, IoT, and smart device development. - Data Engineer
With engineering projects increasingly data-driven, demand is high for professionals who can build and optimise data infrastructure. - Electrical Engineer
The push for electrification and renewable energy is driving hiring in everything from grid upgrades to EV charging infrastructure. - Mechanical Engineer
Mechanical expertise remains essential across manufacturing, energy, and construction, with growing emphasis on sustainability. - Civil Engineer
Infrastructure projects, including transport and green building developments, continue to create demand for skilled civil engineers. - Chemical Engineer
From pharmaceuticals to green energy processes, chemical engineers are key players in innovation and production. - Project Engineer
These professionals help deliver complex engineering projects on time and within budget—skills in high demand across sectors. - Environmental Engineer
As climate and environmental regulations tighten, these specialists are vital in designing sustainable systems and processes. - Structural Engineer
Essential for ensuring the safety and resilience of infrastructure, especially in urban development and retrofit projects. - Systems Engineer
With projects growing in complexity, systems engineers are needed to integrate multidisciplinary technologies and ensure functionality.
Retention Challenges and the ‘Great Dissatisfaction’
While hiring plans are strong 76% of employers intend to recruit in the next 12 months retention remains a concern. A significant 34% of engineering professionals report dissatisfaction in their current role, with the leading cause being a lack of career progression.
Interestingly, the desire for career advancement has now overtaken salary and benefits as the top reason for moving on. In fact, 41% of engineers cite limited future opportunities as their primary motivation to leave a job, up sharply from just 16% the year before.
For employers, this is a wake-up call. It’s not always about pay. Providing visibility into career pathways, offering learning opportunities, and supporting long-term growth will be essential for holding onto top talent.
What This Means for Job Seekers
If you’re considering a career move in 2025, now is a promising time. With three-quarters of employers planning to hire, opportunities are plentiful particularly for those with in-demand skills or experience in high-growth areas like software, sustainability, and infrastructure.
To stand out, ensure your CV is up to date and reflects recent projects, certifications, or technical skills. Emphasise your adaptability and any cross-disciplinary knowledge you bring to the table.
For more detailed insights into pay, job opportunities, and what employers are looking for, explore our full UK Salary & Recruiting Trends 2025 report.