As the manufacturing sector moves into the latter half of 2025, the recruitment landscape has shifted considerably. From surging demand for digital skills to rising wages despite hiring chills, we explore the most critical changes affecting mid-level and senior recruitment strategies.
Structural slowdown + localised resilience
The UK manufacturing industry has grappled with a downturn, with output and new orders declining - prompting roughly 50% of companies to freeze recruitment, while more than a quarter consider redundancies. At the same time, sectors like engineering maintain strong demand, even amid a broader hiring slowdown. Engineering vacancies remain resilient while overall UK hiring cooled.
Skills shortages and rising salaries
Despite fewer job postings overall, wages continue to rise significantly in manufacturing, reports show a 7% increase in advertised salaries year-on-year, especially in maintenance and manufacturing roles. Meanwhile, a persistent skills gap is straining recruitment. Employers increasingly struggle to find candidates with the right technical expertise.
Digitisation and automation demand
There's growing demand for candidates who can navigate automation and digital systems. Roles like maintenance engineers with dual mechanical-electrical proficiency and electrical design engineers for automation are especially sought after. This mirrors a larger global trend where manufacturers must invest in automation and knowledge management to replace retiring expertise and stay agile.
AI, recruitment tech & fair hiring
AI continues to transform hiring, from streamlining CV screening and job matching to enhancing transparency and candidate engagement. However, with automation comes the need for fairness and inclusion, our recent blog urges caution around biases in AI recruitment systems and calls for rigour in D&I integration.
Apprenticeships, upskilling & skill-based hiring
The chronic talent shortage is pushing employers to invest in apprenticeships, internal training, and reskilling across all levels. A shift toward skill-based hiring is also underway. For roles tied to AI or sustainability, skills increasingly outweigh formal qualifications, offering opportunities for non-traditional candidates.
Economic & regulatory pressures
Rising employment taxes, National Minimum Wage increases, and general cost pressures have prompted many businesses to delay hiring or investments. At the same time, fluctuating vacancy numbers and cautious hiring have created a market where employer budgets face increasing scrutiny.
Brand perception and Gen Z engagement
Modern manufacturing must shed outdated stereotypes to attract younger talent. In fashion manufacturing, for example, companies are refreshing job titles and emphasising sustainability and high-tech innovations to win over Gen Z. This trend is likely mirrored across advanced manufacturing, where appealing to younger professionals demands storytelling and alignment with ESG values.
Key takeaways for mid-level & senior professionals
For mid-level and senior professionals, the key takeaways in manufacturing recruitment for 2025 are clear. Strategic hiring remains essential, with a focus on digital-savvy engineers, automation specialists, and resilience-building roles that directly impact productivity. An upskilling culture is critical, with apprenticeships and internal training programmes helping businesses address skills gaps before they become disruptive. Recruitment technology, particularly AI, should be adopted with care - leveraged for efficiency but balanced with strong bias mitigation and robust diversity and inclusion policies. A skill-first approach is also gaining traction, with employers valuing practical expertise and certifications as highly as formal qualifications, widening the candidate pool. At the same time, employer branding has become a powerful magnet for talent, with technology, sustainability, and flexible work opportunities key to engaging and retaining younger generations such as Gen Z. Finally, economic agility is vital - leaders must be prepared for recruitment freezes during downturns but act decisively when hiring activity resumes to secure top talent quickly.
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