Is There a Shortage of Talent in the Engineering Industry?

Home » Blog » Is There a Shortage of Talent in the Engineering Industry?


In the last couple of years, key managers have observed a worrying trend in the market. The population of qualified engineers is diminishing in many industries every year. The U.S. Bureau of Labor Statistics estimates a shortfall in the engineering workforce of 6 million between 2016 to 2026. To combat this urgent issue, industry leaders, policymakers, and educators must take the essential steps to ensure a steady supply of qualified engineering talents.

To deal with this demand and supply gap of skilled professionals, providing more work permits for foreign talent is one strategy. Nevertheless, that is not a permanent solution to the problem. We might recruit more young people and teach the next generation about these important professions if we devote more resources to the STEM fields. In this article, we will examine the causes of the shortage, its impact, and the ongoing efforts to address it. 


Understanding the Engineering Talent Shortage

Current Statistics and Projections

The U.S. Bureau of Labor Statistics projects a 13 percent increase in engineering skill employment from 2023 to 2031. Every year, the U.S. needs approximately 400,000 new engineers (source), yet they may not fill one in every three positions until at least 2030. This shortage is affecting industries and plans such as the Build Back Better Act.

Other countries have also reported facing the same issue, including Japan and Germany. The demand for engineers in robotics and automation is also very high, especially in Japan. Germany requires more engineers, particularly in the car and manufacturing sectors.


Impact of the Shortage on Various Sectors

Technology and Innovation

Organizations’ initiatives are time-bound, and innovations also take longer because firms cannot attract the right human capital. This does not encourage innovation, hence affecting the rate of coming up with new technologies to suit the international market.

Infrastructure and construction

Resource shortages in the infrastructure and construction fields lead to delays in project development and increased costs. Road construction, the construction of bridges, and other public structures are time-consuming and expensive due to the unavailability of adequate engineers.


Factors Contributing to the Talent Shortage

Educational Trends and Challenges

One major reason for the shortage is fewer students are interested in STEM (Science, Technology, Engineering, and Mathematics) fields. Schools often have outdated programs, not enough hands-on training, and lack support for students.

Societal Perceptions and Influences 

Societal views also play a part. Many young people see engineering as difficult and less exciting compared to other careers like technology or finance. This makes fewer students choose engineering.


Changing Skill Requirements

Evolution of Engineering Roles

Engineering roles are changing. New competencies in data analytics, software engineering, and artificial intelligence are in greater demand. This shift means that even trained engineers may not have the skills needed for today’s jobs.


Workforce Demographics

Aging Engineering Workforce

Many experienced engineers are retiring, and not enough new graduates are coming in to replace them. This creates a big gap in the workforce.

Lack of Diversity and Inclusion

There is also a lack of diversity. Only 13% of U.S. engineers are women, and other groups are also underrepresented. This limits the talent pool and makes the shortage worse. 


The Impact of the Talent Shortage

Economic Implications

The shortage of engineering talent has significant lessons in economics. The difficulty in employing key employees, who are essential to the growth of any nation’s economy, affects the GDP and productivity.

Cost of Unfilled Positions

Unfilled positions are costly. Companies lose potential revenue, and delays in projects can be expensive.


Innovation and competitiveness

Delayed Projects and Innovations

The shortage of qualified engineers causes a slowdown in projects and inventions. This makes the companies struggle to compete internationally and hinders progress in technology.

Global Competitiveness

A shortfall of engineers in many countries may impact the development of infrastructural pivotal industries, rendering the nation less competitive on international markets.


Business Operations

Strain on Existing Employees

There is increased pressure on the available employees in the organization. Employees who prefer to work such extra shifts become overworked and end up dissatisfied with their jobs.

Outsourcing and International Recruitment

Many companies turn to outsourcing and hiring from other countries to fill the gap. While this helps temporarily, it doesn’t solve the root cause of the shortage.


Efforts to Address the Talent Shortage

Educational Initiatives

The deficiency of engineering talent is costly to businesses and the economy. It affects the GDP and productivity as more companies experience talent shortages, which hampers the development of the economy.

Recruiting Retired People

Many companies are reaching out to those engineers who have retired in the last few years, to work for them. As these professionals have retired recently, they have the expertise to work on the current technology and businesses do not have to train them. They can hit the ground running.


Collaboration Between Stakeholders

Public-Private Partnerships

Working together is essential. PPPs can implement the training schemes to meet the needs of industries.

Industry Associations and Professional Organizations

Professional bodies and industry organizations provide some of the training, resources, and assistance for engineers.


Future Outlook

Long-Term Trends and Potential Solutions

The demand for engineers will continue to rise even in the future. Some solutions are the promotion of effective training programs, the encouragement of diversity, and the improvement of STEM education.

Emerging Fields and Opportunities

Engineers can master opportunities such as artificial intelligence, automation, and renewable energies in developing new industries. Focusing on these areas could potentially attract new talent to the company.



The shortage of engineers is a problem that affects everyone and everywhere. Therefore, this article elucidates the reasons behind the shortage and propose strategies to guarantee a sufficient supply of qualified engineers in the future. By virtue of its global presence and understanding of the local scene, Tek Ninjas, a reliable professional engineering staffing firm, can help companies find the people that they need to ensure a steady business growth. We have assisted numerous organizations in hiring and retaining the best talents through our proven, expert staffing solutions. For more information, contact us or visit our website.

Share it