Salaries for new hires in 2025 are still increasing but at close to half the levels of 2023 and 2024.
2023 average increase in salary for new hires
2024 average increase in salary for new hires
2025 average increase in salary for new hires
Average increase in salary being achieved by STEM candidates when moving to a new company:
Matchtech permanent hires in Defence sector for previous 12 months
With inflation and demand for people reducing, the lower salary uplifts being achieved by new hires is not surprising.
So what.
Salary uplifts reducing for candidates seeking new opportunities has been a driver of, and reinforced, the lower attrition rates experienced by many organisations. Candidates whose motivators are aligned with salary are less inclined to move unless it’s worth it.
Interestingly 17% of permanent hires were people who had been a contractor in their last role. With contractor opportunities at lower levels, it has supported decisions for people to seek stable and secure careers, and many organisations have capitalised on this opportunity to secure great talent. Ensuring this community is kept highly engaged in the coming months, as contractor opportunities are expected to increase may be a sensible strategy.
It’s never been less about the money. Although inflation is still higher than the government would prefer, STEM people are often moving for other reasons. Flexible and Hybrid working remain high on the agenda, as do progression and development opportunities. Tapping into these motivators is critical for any talent acquisition team or recruitment partner when engaging talent.
Defence Wage Distribution 2023.
Source – JEDHub Annual Economic Report – Capturing and quantifying the contribution of the defence sector to the UK economy.
56% of Male FTE's earned £45,001+ in 2023, up from 47% in 2022.
47% of Female FTE's earned £45,001+ in 2023, up from 36% in 2022.
Average Salaries UK Industries 2023.
Surveyed mean salary for defence FTE's in 2023.
A growth of 7.16% from £53,760 in 2022.
The UK manufacturing mean full-time salary was £38,789 in 2023.
Source – JEDHub Annual Economic Report – Capturing and quantifying the contribution of the defence sector to the UK economy.
Surveyed mean salary for defence FTE's in 2023.
A growth of 7.16% from £53,760 in 2022.
The UK manufacturing mean full-time salary was £38,789 in 2023.
Source – JEDHub Annual Economic Report – Capturing and quantifying the contribution of the defence sector to the UK economy.
Estimated median salary for defence FTE's in 2023.
A 12.7% increase from £41,980 in 2022.
The median salary for all manufacturing jobs was £31,262 in 20231.
Surveyed median male defence FTE salary, 2023, up 12.3% from 2022.
Higher than the manufacturing median of £35,7882
Surveyed median female defence FTE salary, 2023, up 13.6% from 2022.
Higher than the manufacturing median of £27,0272
Source – JEDHub Annual Economic Report – Capturing and quantifying the contribution of the defence sector to the UK economy.
1The median salary is taken to be more representative of the average worker than the mean. 2Earnings and hours worked, UK region by industry by two-digit SIC: ASHE Table 5 - Office for National Statistics (ons.gov.uk) – Table 5.7a
