European Defence Firms Benefit From Military Spending Splash

Europe’s defence industry is booming, with job growth in the sector leaving the broader labormarket behind. EU countries have ramped up defence spending by over 30% since 2021, climbing from €214 billion to €326 billion by 2024, according to the European Defence Agency. 

This sharp increase is fuelling unprecedented demand for workers, particularly in defence hotspots like France, Germany, and the UK.

The shift comes as security concerns have become impossible to ignore. Russia’s invasion of Ukraine in early 2022 triggered the most significant surge in defence hiring, and recent instability in the Middle East has kept demand elevated. 

Job postings across Europe’s defence sector have consistently outperformed the wider market since 2022, data shows.

Before the war, defence jobs and general job postings tracked similar recovery trends after the pandemic slump. But that changed dramatically after February 2022. By November that year, defence job postings had doubled their 2021 average.

Defence job postings have since cooled slightly but remain 41% higher than in 2021. Importantly, these figures exclude armed forces roles, focusing instead on private sector defence employers.

What Does This Mean for Me?

The data reflects how global tensions are reshaping labour markets and boosting the appeal of defence careers. Inevitably, if governments maintain spending momentum, the defence firms across Europe and beyond are set to enjoy the fruits of this spending splash. With increased orders, publicly-listed defence firms are likely to see their stock price boosted.