Europe’s defense companies are struggling to find enough skilled workers as Russia’s invasion of Ukraine drives unprecedented demand for military equipment. The industry needs thousands of new employees to meet growing production needs, creating both challenges and opportunities across the European defense sector.
Major defense contractors like Rheinmetall, KNDS, and Leonardo are actively recruiting to expand their workforces. Rheinmetall plans to add 3,000 new employees this year alone after already hiring 6,500 workers since early 2022. The German arms manufacturer has become a symbol of Europe’s renewed focus on military capabilities, with its share price soaring more than 450% since Russia’s invasion of Ukraine.
“We are in a war economy in Europe,” said Rheinmetall CEO Armin Papperger at a recent industry conference. His company has expanded production to meet surging demand for artillery shells and other military equipment desperately needed by Ukraine.
The labor shortage affects companies across the continent. French-German tank maker KNDS aims to hire 1,500 new workers this year, while Italian defense group Leonardo seeks to add 5,000 staff. These hiring sprees mark a dramatic shift for an industry that had been downsizing for decades following the Cold War.
Many defense firms now compete for the same talent pool of engineers, technicians, and skilled manufacturing workers. This competition extends beyond the defense sector, as these specialists are also sought by automotive, aerospace, and technology companies. The shortage is particularly acute for those with expertise in emerging technologies like artificial intelligence, cybersecurity, and advanced electronics.
“Everyone is fishing in the same pond,” explained Eric Beranger, CEO of European missile maker MBDA, highlighting the industry-wide struggle to attract qualified personnel.
Defense companies are getting creative to address the worker shortage. Many firms have established partnerships with technical schools and universities to develop specialized training programs. Others offer substantial signing bonuses, relocation packages, and accelerated promotion tracks to attract talent.
Some companies have turned to automation and digital manufacturing technologies to boost productivity with fewer workers. Advanced robotics and AI-assisted production lines help maximize output while reducing labor requirements. These innovations may reshape the industry’s workforce needs over time.
The labor crunch reflects broader demographic challenges facing Europe. Many countries have aging populations and declining numbers of young people entering technical fields. This demographic reality complicates recruitment efforts across all manufacturing sectors, with defense companies facing additional hurdles.
Security clearance requirements create another obstacle. Defense work often requires extensive background checks and citizenship restrictions that limit the available talent pool. Unlike other industries that can easily recruit internationally, defense contractors must typically hire from within their home countries or NATO allies.
The situation has sparked policy discussions about defense industrial capacity across Europe. Government officials increasingly recognize that maintaining robust defense production requires not just funding for equipment but also investment in workforce development. Several European nations have launched initiatives to encourage more students to pursue careers in defense-related fields.
Germany’s government recently announced funding for specialized training programs targeting defense manufacturing skills. France has expanded scholarship programs for engineering students willing to commit to the defense sector, while Poland is offering tax incentives to companies that create defense industry apprenticeships.
For workers, the boom presents unique opportunities. Salaries in the defense sector have increased significantly as companies compete for talent. Many firms also offer exceptional job security, as defense contracts typically span multiple years and government backing provides stability.
“Defense work combines technical challenges with a sense of purpose,” noted a recruitment manager at a major European defense firm. “We’re finding that younger workers are increasingly attracted to the industry not just for the compensation but because they see the importance of security in today’s geopolitical environment.”
The Ukrainian conflict has fundamentally changed public perception of defense work. What was once viewed with skepticism by some is increasingly seen as essential for European security. This shift has helped defense companies attract candidates who might previously have preferred other industries.
Analysts expect the labor shortage to persist for years. European defense spending is projected to remain elevated for the foreseeable future, with NATO members recommitting to spending targets and many countries launching major procurement programs. The resulting production demands will continue to drive workforce expansion.
“This isn’t a temporary spike,” explained a defense industry analyst at a leading European investment bank. “We’re seeing a structural shift in European defense posture that will require sustained industrial capacity. The companies that solve their workforce challenges will be best positioned to capture this growth.”
As Europe’s defense renaissance continues, the battle for talent remains as crucial as the development of new military technologies. The industry’s ability to attract, train, and retain skilled workers may ultimately determine which companies emerge as leaders in this new era of European defense production.
