Hiring hesitancy, cultural shifts, new labor laws and artificial intelligence are several factors that are impacting the engineering workforce
The engineering labor landscape is evolving, presenting a range of challenges and opportunities for organizations. From the introduction of new labor laws to the shifting importance of culture and growing impact of artificial intelligence, there are noticeable changes happening that those tasked with hiring need to be aware of. According to this 2025 Workforce Planning Guide, manufacturers will need to fill over 30,000 new engineering jobs across multiple industry sectors by 2029. This article explores prevalent labor trends shaping the engineering career landscape in the post-pandemic era and provide valuable insights for both employers and candidates navigating the evolving job market.
Increased hiring hesitancy by candidates and employers
The industry is currently facing heightened hesitation in hiring, driven by a multitude of factors. Economic uncertainty looms large as the global economy grapples with geopolitical tensions, trade disputes and volatile financial markets. These factors have instilled a sense of caution in employers, who are reacting by adopting a more conservative approach to hiring. The energy and automotive sectors have been particularly affected, less so in the chemical processing space
Political developments also significantly shape the hiring landscape. Changes in government policies, regulations and taxation can profoundly impact business operations and profitability. Litigation, environmental laws and import/export adjustments have all had an influence. Misconceptions about immediately replacing technical skills and the belief that perfect candidates exist have further contributed to hiring delays. Additionally, the lack of tenure among job seekers, with an average of less than three years per employer, has raised concerns about commitment, loyalty and investment.
The hard truth is that every newly hired candidate, irrespective of their role, will require a period of learning and adjustment. Companies often believe they can find the perfect candidate with exceptional ratings. However, such ideal candidates are rare in today’s competitive job market. Delaying the hiring process and investing resources, time and effort into training a minimally qualified candidate can be detrimental to both the organization and the individual.
Shifting importance of culture
The engineering sector is experiencing a shift back to onsite work and daily in-person interactions, with companies once again prioritizing collaborative environments for stronger team dynamics and communication. While remote and hybrid schedules created silos in recent years, the pendulum is now swinging toward more open, face-to-face workplaces. Key aspects like culture, direct communication and the ability to connect in person — rather than through voicemails or video calls — are increasingly valued, as many organizations implement Return to Office (RTO) initiatives to reinforce these benefits.
This is the equalizer between the current “employer-driven” hiring market and available employees. While continuing to seek a seemingly perfect candidate, employers think they can keep looking for a better option while delaying the interview process, passing up qualified individuals, proposing inappropriately low salary offers and making other ill-advised moves in a hiring process that is not likely to end well.
However, the newest generation of workers and the majority of the workforce increasingly desire benefits, flexibility and company perks more than financial gain. Quality of life versus quantity of income is more level than ever in a candidate’s decision-making process. This shift in values reflects a growing desire for better work-life integration, whereas in the past, many employees were willing to sacrifice personal time and well-being for a high salary. However, this trend is changing as more and more people realize that there is more to life than money. Employers need to strike a balance, considering factors such as schedule flexibility, paid time off (PTO), employee recognition programs and company benefits and other perks to avoid losing top talent who value work-life integration.
Understanding new labor laws
Employers must navigate new labor laws in the workplace that affect labor and equal opportunity employment rights, such as the 2023 Fair Labor Standards Act (FLSA) and the Department of Labor’s Independent Contractor Rule that took effect in March 2024. The past year also saw new overtime exemptions and minimum wage increases that will also need to be observed.
These laws aim to address concerns about job security and potential threats to livelihoods. Unions will continue to play a significant role, and they are known for pushing back against perceived threats to their members’ jobs. Large and powerful established unions, such as the International Union of Operating Engineers (IUOE), which represents over 400,000 engineers, or the International Federation of Professional and Technical Engineers (IFPTE), which represents 90,000, are sure to hold weight on decision-making surrounding artificial intelligence (AI) deployment.
However, some companies are likely to embrace AI as a cost-effective option to replace unskilled labor. In turn, unions will be tasked with rolling out apprenticeships and applicable learning tools to ensure their members are competitively skilled and trained. Effective communication, expectation setting, gradual transitions and training programs can help employers avoid legal conflicts while supporting and educating their workforce.
The growing impact of AI
Contrary to fears of AI replacing workers, AI is rather seen as a tool that can protect and eliminate redundant tasks, allowing engineers to focus on more complex and higher-level issues. AI integration can enhance safety and efficiency in handling hazardous, volatile and dangerous processes that eliminate human risk and enable engineers to explore more innovative methods, technologies and other critical aspects of their roles. Maximizing AI integration or its use in engineering can be vital for safety and efficiency.
This shift reduces the risk of human injury and allows engineers to engage in more innovative endeavors, exploring new methods, technologies and solutions that can further improve operational processes. The integration of AI into engineering not only elevates the efficiency of operations, but also opens the door to groundbreaking advancements in design, problem-solving and process management, ultimately transforming the role of engineers into that of innovators and leaders in their fields.
To ensure the safe and effective adoption of AI in engineering, employers must take a proactive approach to address safety concerns, such as cybersecurity vulnerabilities, system failures and the risks that arise from inaccurate calibrations. This can be achieved through comprehensive training programs that ensure employees are well-prepared to operate AI technologies responsibly and competently. Additionally, it is essential to implement robust security protocols to protect against cyberattacks, data breaches and other security threats. Precise and well-thought-out implementation strategies are also critical, ensuring that AI is integrated seamlessly into existing systems without compromising data integrity or operational reliability. By prioritizing these areas, employers can maximize the benefits of AI while ensuring that its deployment enhances both safety and efficiency across engineering operations.
Regarding efficiency, companies can eliminate the need for engineers to repetitively perform status checks on various aspects of chemical processes by leveraging AI. With AI’s precision in monitoring and analysis, engineers can confidently shift their focus to “the next step” in any process, project, product or program. This shift away from mundane tasks frees up valuable time and mental energy, empowering engineers to tackle previously unforeseen complex challenges and develop innovative solutions to problems they previously lacked the bandwidth or technology to address.
Emails and company domains face constant phishing attempts daily, as do the advanced technologies being deployed across national and international scales. AI has significant potential to help mitigate a variety of security risks associated with these threats. For instance, AI can reduce the likelihood of human error, which remains a leading cause of security breaches. By automating and continuously monitoring systems, AI can also identify and prevent system failures, detect malicious activity such as hacking, malware or ransomware attacks, and protect against data breaches. Additionally, AI can assist in ensuring accurate data readings and analysis, reducing the impact of faulty data inputs that could lead to incorrect decision-making. AI can be employed to monitor and guide individuals interacting with complex systems, especially when those individuals may not be fully trained in handling sophisticated technologies, ultimately enhancing the security, reliability and efficiency of engineering technologies.
Navigating trends and innovations
Utilizing a talent solutions resource for workforce planning can help hiring managers understand these trends, and by leveraging AI’s potential, engineering firms can create a skilled, engaged and innovative workforce. Some of the benefits are listed below:
- Formal and trade interdisciplinary courses. Colleges, universities and Vocational schools will offer engineering courses that include lessons on AI, robotics, sustainability and ethics
- Upskilling and continuous learning. Companies will likely need to invest more in training programs to help engineers learn new skills in emerging technologies like AI, machine learning and blockchain, and mentor others in these areas
- More data education. Additional data scientists and data engineers who build pipelines that transport data from one system to another are expected to be among the top tech roles in 2025
- Automation and technological integration. Automation will take over repetitive tasks, creating a demand for roles that require creative problem-solving and technical expertise
- Augmented or virtual reality. The technology that overlays digital information on the actual physical world will quickly become a powerful tool for engineers.
- Embracing new roles and skills. AI specialists, data analysts and machine learning (ML) engineers will provide important skills in the workforce ♦
Edited by Mary Page Bailey
Author
Jim Gerlock is a national practice manager for Addison Group’s talent solutions division. He is an experienced recruiting professional with deep expertise in the engineering, direct hire and executive search industries. He has overseen operations across Addison’s Houston and Chicago offices. A subject matter expert in technical searches across engineering, operations, and manufacturing, Gerlock has a proven track record of successfully matching top talent with the right opportunities. His leadership and commitment to client satisfaction have made him a successful advisor, driving results and building lasting relationships in the industry. His areas of expertise include executive searches and direct hiring in the fields of engineering, manufacturing, supply chain and information technology (IT).