A 5-year UK government commitment to further investment in the sector will create thousands more jobs
After coming to a standstill during the COVID lockdowns of 2020/21, aerospace manufacturing has made a strong comeback. By 2023, the workforce had bounced back to 104,000 people, including 6,000 apprentices. Even more impressively, productivity in the sector has soared by 25% over the past decade, highlighting its resilience and growth.
Source: ADS Aerospace Sector UK Outlook 2024
…bounced back workforce by 2023 after covid lockdown…
…apprentices included
…increase in productivity over the past decade
Productivity (output per worker) in the aerospace sector
Source: ADS, UK Aerospace Outlook 2024
And news that the UK government is going to inject further funding into the sector to bolster its competitiveness – to the tune of £975m over the next five years – is set to create thousands of additional highly-skilled jobs.
“Our world-class aerospace sector added almost £40 billion to the economy last year, supporting high-skilled jobs in every part of the UK. Backing the sector with this funding will ensure the UK can continue to pioneer new technologies, all while delivering the economic growth that will be felt in communities across the country
Thousands of highly skilled jobs will be supported across the UK as the Prime Minister throws his support behind the aerospace industry – with £975 million over the next 5 years for this key growth sector.
In a boost for aerospace centres in places like Broughton, Filton and Derby, the Government has extended the Aerospace Technology Institute (ATI) Programme. The extension will speed up innovation, create job opportunities and support an industry that is a source of pride for communities across Britain.”
UK Government release
Source: News release
“The government’s investment provides industry with long-term confidence in the UK as a place to in turn invest in cutting-edge aerospace technology and help extend the UK’s global lead in wings and engine manufacturing, whilst working to deliver zero-emission flights,” the government stated in its news release.* Bidding for the funding has just closed, with projects expected to begin from Autumn 2025 onwards.
*Source: News release
The industry is already renowned for providing exceptional work opportunities: the average gross salary for those involved with the manufacture of Air & Spacecraft and Related Machinery reached a median of £50,541 and an average of £53,329 in 2024 – a notable 60% higher than the all-occupation Median (£31,602) and 40% higher than the all-occupation average (£38,224).
…higher salaries than the all-occupation median
…and 40% higher than the all-occupation average
The industry is already renowned for providing exceptional work opportunities: the average gross salary for those involved with the manufacture of Air & Spacecraft and Related Machinery reached a median of £50,541 and an average of £53,329 in 2024 – a notable 60% higher than the all-occupation Median (£31,602) and 40% higher than the all-occupation average (£38,224).
…higher salaries than the all-occupation median
…and 40% higher than the all-occupation average
Average (mean) gross employee earnings: All occupations and the Manufacture of Air & Spacecraft & Related Machinery sector
Source: Matchtech analysis of ONS data
Despite government investment aimed at driving growth, the aerospace industry remains highly sensitive to political, economic, and competitive pressures. To keep up with shifting demand, businesses are relying more on a flexible workforce and turning to contingent labour to stay agile.
This shift is particularly clear in key roles like Aviation Engineers, where the proportion of temporary and contract workers jumped from 3.7% in 2022 to 11.3% in 2024, highlighting the industry's growing need for adaptable talent.
…temporary and contract Aviation Engineers in 2022
…temporary and contract Aviation Engineers in 2024
Source: Matchtech analysis of ONS data
Matchtech’s client base reflects this trend, with a significant shift in how temporary workers are engaged. In 2024, around half of all temps and contractors placed by Matchtech and Gattaca Solutions were on a temporary PAYE basis. By 2025, this had risen to more than two-thirds, largely replacing umbrella employment as businesses adapt to evolving workforce needs. According to Dan Tchupan, Sector Head of Mobility at Matchtech, “this shift is predominantly being driven by employers, seeking compliance-focused hiring models operating through a shortened supply chain.”
Matchtech contingent Aerospace workers: 2024 engagement status
PAYE 51%
Umbrella 43%
Ltd 6%
Source: Matchtech data
Matchtech contingent Aerospace workers: 2025 engagement status
PAYE 67%
Umbrella 32%
Ltd 1%
Source: Matchtech data
“The shift to increased use of temporary PAYE engagement models is predominantly being driven by employers, seeking compliance-focused hiring models operating through a shortened supply chain.”
Dan Tchupan, Sector Head – Mobility at Matchtech
Dan Tchupan, Sector Head – Mobility
Another factor driving the rise in contingent labour within key aerospace roles is the shift away from costlier Consultancy (SOW) resources—typically on permanent payrolls. Solutions providers like Gattaca Solutions (a sister company of Matchtech’s) are helping organisations optimise their workforce by sourcing and managing contingent replacements. At NATS, for example, Gattaca Solutions has delivered average savings of 25%-40% on consultancy resources while also ensuring full compliance, a consistent service, and a single point of contact.
Restoring NATS' faith in MSP partnership through reliable delivery and cost savings
When we were appointed as NATS’ MSP partner, a key issue was over-reliance on Statement of Work (SoW) providers, due to the failure of the previous MSP provider to meet resource demand. Our reliable delivery of NATS’ key skills ensured they were able to quickly obtain the right resource via the MSP, averaging a 25-40% cheaper rate than SoW providers. Hiring managers swiftly increased engagement with the MSP, due to trust in our delivery and ease of use. This has resulted in a fourfold increase of NATS’ temporary workforce in the first two years alone, greatly reducing their reliance on consultancies and saving millions per annum on a like for like.
We continued to implement initiatives, such as enforced furlough during Christmas and Easter shutdowns, bi-annual rate card analysis and monitoring direct hire pay rates to ensure they are in line with market rates.
Following our successes in year one, NATS shortlisted Gattaca Solutions for their Supplier of the Year Award. NATS sponsored Gattaca to join the executive network of the Institute of Collaborative Working. We have worked with NATS to support them with their challenges, such as diversity, IR35, the ageing workforce and innovating to deliver smart skills as their industry becomes more automated and technology driven.
With no signs of a cessation of fluctuation demand and increased competition in sight, the ability to operate with a truly flexible resourcing model is critical within the Aerospace sector. This includes gaining access to a range of ‘contingent’ workforce operating models to enable switch-on, switch-off access to talent as required – including more cost-efficient delivery models to replace high consultancy costs.
Key takeaways and recommendations:
The UK Aerospace sector remains strong, with workforce numbers holding steady and productivity soaring by 25% over the past decade. With government funding secured for the next five years to enhance the industry’s global competitiveness, thousands of new jobs are expected to be created.
However, the sector remains highly sensitive to political, economic, and competitive pressures. With ongoing fluctuations in demand and intensifying competition, having a truly flexible and compliant resourcing model is more critical than ever. Employers should explore a range of contingent workforce solutions, ensuring they have the ability to scale talent up or down as needed. This includes cost-efficient alternatives to traditional consultancy models, helping businesses maintain agility while optimising costs.
Learn More: Matchtech sourcing for the Aerospace sector