European lawmakers' weapon production plans may be derailed by an unexpected issue
Europa's Arms Race, Labor Crunch, and the Hunt for Skills
Europe is gearing up for war and rearming swifter than ever. Defense spending is on the rise and orders for military equipment are pouring in for European defense companies. The European military industrial complex (MIC) is riding a golden wave. The earnings of European defense companies are soaring like bread rising. However, ambitious plans for both government officials looking to rearm and defense barons seeking riches could stumble upon an unexpected hurdle - a simple lack of workforce.
Qualified workers for the MIC in Europe are in desperately short supply. There's an intense hunt for skilled workers who can work on military facilities and factories.
"If there were qualified workers on the European job market, we'd snatch them up right away," reported Pavol Kecal, vice-president of Czech defense company PBS Group, which manufactures rockets and drone engines, to Reuters.
Kecal employs 800 workers, but needs twice as many. This year, PBS Group raised workers' salaries by 8% and plans to hike them another 10% by the end of the year, but still struggles with staff shortage.
Such a situation prevails on most European defense companies, which over the next few years plan to spend €800 billion on defense and hope to create hundreds of thousands of jobs. In high demand are experts in artificial intelligence and data work, as well as welders and mechanics.
Apart from raising salaries, defense barons are scouring adjacent industries for labor. Recruiters for defense companies are scouring institutes and even schools for potential hires. Companies are also opening preparatory courses, where they train anyone willing to learn the required skills.
French-German company KNDS, which manufactures self-propelled guns CAESAR, have extended the length of work shifts on the main production site in Bourges, France, and are planning to increase personnel numbers by 50% this year.
"European independence in the defense sector is only possible through a very sharp increase in defense spending," explains the situation, which arose after Donald Trump returned to the White House, analyst Guido Hertele of consulting firm Kearney remarked.
German defense giant Rheinmetall plans to boost its workforce by nearly 29%, aiming for 9,000 new hires by 2028 to meet rising demand for military vehicles, air defense systems, and ammunition. Shipbuilder and frigate maker Thyssenkrupp is looking to hire 1,500 workers for its shipyard in Wismar.
"The problem isn't money, but human resources, labor shortage," is certain Godfrey Jordan, head of Paris recruitment company Headhunting Factory.
The European defense industry is currently facing a significant labor shortage driven by several interrelated causes, resulting from decades of underinvestment in defense-focused education, a lack of qualified engineers, cybersecurity specialists, advanced manufacturing technicians, and other critical roles. Furthermore, top technical talent is increasingly attracted to civilian sectors such as technology, renewable energy, and finance, which often offer higher salaries and more flexible work environments, further draining the talent pool available to defense companies.
To bridge the gap, European countries must boost vocational and technical training, engage underutilized demographics, invest in automation and advanced manufacturing processes, beef up public-private partnerships, innovate their recruitment strategies, and bolster defense funding to ensure long-term workforce development. Failing to do so could result in delays in modernization programs, reduced production tempo, outsourcing of contracts outside Europe, as well as a compromise of strategic autonomy and industrial sovereignty.
- The European defense industry is grappling with a significant workforce shortage, specifically for skilled workers in artificial intelligence, data work, welding, mechanics, and other defense-related fields.
- Defense companies in Europe are scouring institutes, schools, and even opening preparatory courses to train potential hires, as the labor crunch poses a potential threat to their ambitious plans for modernization and expansion.
