Europe’s Defence Ambitions Are Being Undermined by a Workforce Crisis

Europe’s defence industry is experiencing its most significant expansion since the Cold War, propelled by geopolitical tensions and a collective push for strategic autonomy.

European governments have pledged up to €800 billion in additional military spending by 2028. However, this surge in demand has exposed a critical vulnerability: a severe shortage of skilled labour.

Major defence firms, including Rheinmetall and KNDS, are struggling to recruit the necessary workforce to meet production targets.

Rheinmetall plans to increase its workforce by around 29%, or up to 9,000 employees, by 2028, focusing on roles such as product developers, engineers, welders, and electronics technicians.

Despite these efforts, the specialised talent pool remains insufficient, threatening to delay critical defence projects and undermine Europe's strategic goals.

A Systemic Talent Pipeline Failure

The labour shortage is not merely a hiring issue but a systemic failure in the talent pipeline.

Decades of underinvestment in defence-related education and training have led to a dearth of qualified professionals.

Many technical universities have deprioritised defence applications, and a generation of talent has gravitated towards sectors like technology and renewable energy.

This has resulted in a significant skills gap. According to McKinsey, 43% of European employers face worker shortages in data analytics skills, while 26% report talent deficits in IT, web design, and management.

These shortages are particularly acute in the defence sector, where specialised skills are essential.

Strategic Autonomy at Risk

The labour crisis poses a direct threat to Europe's strategic autonomy.

The European Union aims to shift a substantial portion of its defence procurement spending back from the U.S. to domestic firms.

However, without a robust and skilled workforce, these ambitions may remain unfulfilled.

The shortage of skilled labour could delay or downsise orders for critical defence equipment, such as tanks, air defence systems, and ammunition.

In the worst-case scenario, some contracts may be outsourced to countries outside the EU with better labour capacity, undermining the bloc’s ambition to retain its defence industrial base.

Policy Responses: Urgent and Coordinated Action Needed

Addressing this crisis requires urgent and coordinated action from industry stakeholders, educational institutions, and policymakers.

The European Commission has tools at its disposal, such as coordinated EU-wide training funds and enhanced support for defence-linked skills.

However, as of now, no comprehensive EU-wide strategy has been announced.

Member States are largely left to compete against each other for the same dwindling pool of engineers.

Some countries, like Poland and Estonia, are recruiting foreign workers, including from Ukraine, while others are calling for fast-track migration pathways for skilled defence sector talent.

Conclusion: The Time to Act Is Now

If Europe is serious about its long-term defence posture, this labour crisis must be addressed with the same urgency as procurement contracts.

Building hardware is only half the battle. Without welders, engineers, and technicians, Europe’s defence ambitions risk remaining paper plans.

The time to act is now, not when production delays hit headlines or military readiness is compromised.