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Navigating the workforce challenges in Australia's Aerospace and Defence industry

By Vangie Daquilanea and Bridhe Doidge | May 30, 2025

A&D is experiencing growth and transformation, driven by investments, technological advancements, and market dynamics. However, workforce challenges must be addressed to maintain momentum.
Aerospace|Employee Experience|Ukupne nagrade |Work Transformation
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Industry overview

The Australian government has demonstrated its commitment to strengthening this sector through substantial funding for major defence projects, such as the continuous shipbuilding plan and the modernisation of the Australian Defence Force (ADF). Initiatives like the Defence Industry Skilling and STEM Strategy further underscore efforts to develop a skilled workforce capable of supporting these ambitious projects.

At the heart of this transformation lies a network of local and international collaborations. Australia's defence industry has partnered with global defence contractors to secure crucial technology transfers and nurture domestic capabilities. High-profile partnerships, like AUKUS with the United States and the United Kingdom, underscore the strategic importance of these alliances in ensuring national security and technological progression.

WTW Talent Intelligence: In-demand roles and skills in aerospace and defence

Top 10 jobs in demand (global)

  1. Software Engineer
  2. Systems Engineer
  3. Mechanical Engineer
  4. Design Engineer
  5. Electrical Engineer
  6. Field Service Engineer
  7. Production Operator
  8. Program Manager
  9. Quality Engineer
  10. Cybersecurity Engineer

The sector is currently experiencing strong demand for engineering and technical roles including software engineer, systems engineer, mechanical engineer and electrical engineer. These roles are critical as the industry leverages advanced technologies to drive innovation and maintain competitiveness.

Given the highly regulated nature of the sector, compliance and quality assurance roles are also in demand. Positions such as quality engineers, quality assurance engineers and test engineers are vital for ensuring organisations meet stringent regulatory requirements and industry standards.

Additionally, there is a strong focus on cybersecurity and data analysis. While this skills are important across various industries, they are particularly critical in aerospace and defense. Cybersecurity engineers protect sensitive information and systems from cyber threats, while data scientists help organisations analyse complex data to inform strategic decisions and optimise performance.

Top 10 skills in demand (global)

  1. Compliance Management
  2. Standard Operating Procedures (SOP)
  3. Software Development
  4. Project Management
  5. Technical Reporting
  6. Mechanical Testing
  7. Mechanical Engineering
  8. Programming/Scripting
  9. Automation
  10. Documentation & Records Management

The most in-demand skills globally in the aerospace and defense industry reflect a mix of technical and analytical expertise. According to WTW’s recent Talent Intelligence research, skills such as compliance management, standard operating procedures (SOPs), software development and project management are highly sought after. These skills are essential for ensuring project success and regulatory compliance.

Companies in this highly specialised industry should also focus on maintaining strict technical standards by developing expertise in areas such as mechanical testing and mechanical engineering.

Workforce challenges in Australia’s aerospace and defence industry

  1. 01

    Skills shortages

    • Notable shortage of skilled workers in key areas such as engineering, cybersecurity, AI and data analytics.
    • The rapid pace of technological change means that the existing workforce may lack the necessary skills for emerging roles.
  2. 02

    Aging workforce

    • Many professionals are nearing retirement, which could exacerbate the skills shortage.
    • Attracting younger talent and providing clear development pathways is essential.
  3. 03

    Training and education

    • Existing education and training systems may not be fully aligned with the evolving needs of the sector.
    • More targeted and practical programs, such as vocational education and training (VET) and apprenticeships, are needed.
  4. 04

    Attracting talent

    • The industry competes with other sectors for high-demand skills, particularly in technology.
    • Competitive salaries, stronger employer branding and clearer career progression paths can help attract talent.
  5. 05

    Gender diversity

    • Aerospace and defence continue to be male-dominated, and achieving gender diversity remains a challenge.
    • Initiatives to increase participation from women and underrepresented groups are essential to broadening the talent pool.
  6. 06

    Geographical challenges

    • Many defence projects are located in remote areas, which can deter potential employees due to relocation needs or lifestyle preferences.
    • Solutions might include offering relocation incentives or leveraging remote work technologies where feasible.

Strategic responses

To address these challenges, the industry should adopt a range of coordinated strategies:

  • Build stronger partnerships: collaborate with educational institutions to ensure curriculum relevance and provide hands-on opportunities for students.
  • Invest in upskilling and reskilling: facilitate continuous learning for current employees to keep them updated with technological advancements.
  • Consider skilled migration policies: to attract international talent with specialised expertise.
  • Implement diversity and inclusion initiatives: strengthen workforce depth by promoting diversity and inclusion programs.
  • Develop long-term workforce planning: create policies that include leadership and succession strategies to ensure a sustainable talent pipeline.

Ultimately, a strategic and inclusive approach to workforce development is essential for unlocking the full potential of Australia's aerospace and defence industry. By cultivating a dynamic, diverse, and technologically-adept workforce, the sector will be well-prepared to meet future demands and sustain long-term growth.

To empower your HR decisions with expert insights on talent acquisition, compensation trends, and workforce planning, visit our Aerospace and Defence Talent and Compensation trends page. Discover comprehensive resources and tailored strategies to help you navigate the unique challenges and opportunities in this dynamic industry. Whether you’re looking to attract top talent, optimise your compensation packages or develop robust workforce plans, our team is here to support you every step of the way.

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