- Defence sector continues to show growth in employment across
the UK, delivering on the Prime Minister’s priority to grow the
UK economy.
- Defence activity showed resilience during the COVID-19
pandemic, with defence turnover growing by 2.1% in the surveyed
companies.
- Approximately 130,000 indirect jobs supported by the Defence
Growth Partnership companies in the UK supply chain in 2021, with
many in highly-skilled roles.
- High wages with 8.2% wage growth since 2020 in the surveyed
companies.
Delivering on one of the Prime Minister’s key priorities, the
Defence industry has been recognised as a key contributor to the
UK economy, with jobs, businesses and exports being boosted, a
new
report has detailed today.
Building on the inaugural Joint Economic Data Hub (JEDHub) report
published last year, this year’s report highlights several
insights, including the important contribution international
business makes supporting UK defence turnover, with around 40% of
defence turnover in surveyed companies coming from international
sources in 2021.
Continuing to show significant growth in employment, the report
also highlights that, despite wider manufacturing contractions,
there has been a 3.5% growth in surveyed defence full-time
employees from 2020, also showing how the sector is driving
demand for high productivity, highly skilled and high wage jobs
across the UK.
The report found that 130,000 indirect jobs were supported in the
UK supply chain by the 11 Defence Growth Partnership (DGP)
companies in 2021, with a quarter of new recruits made up of
apprentices and graduates in 2021.
Additionally, of the companies surveyed, 45% of the roles were in
STEM-related employment and over 25% of activity was in Research
and Development, contributing to future skills, technologies and
defence capabilities.
Minister for Defence Procurement, said:
This second JEDHub report provides new insights into how the
defence sector continues to contribute to the economic wellbeing
of communities right across the UK, including through high-paying
jobs.
I am delighted that industry and government are continuing to
work together in helping us grow our understanding of that vital
contribution.
The report recognised high average wages in the sector, with an
8.2% growth on 2020; and provides greater insights on skills,
apprenticeships and graduates, the defence supply-chain and
defence capabilities.
The report also shows a significant level of activity across each
of the lifecycle activities, contributing to a diverse skill-set,
with the growth in R&D activity contributing to future
skills, technologies and defence capabilities. 7.9% of surveyed
defence employment is made up of trainees on apprenticeship and
graduate trainee programmes, with growing investment in trainee
programmes in the defence sector ensuring future skills
availability.
This report draws on the results of a JEDHub industry survey as
well as data from other sources, including the Office for
National Statistics. Based at the UK Defence Solutions Centre
(UKDSC), the JEDHub is a collaborative initiative, supported by
government, industry and academia to improve understanding of the
defence sector’s contribution to the UK economy, and was an
important deliverable of the 2021 Defence and Security Industrial
Strategy (DSIS).
Chief Executive of ADS, Kevin Craven, said:
The second JEDHub report highlights how the strong and agile UK
defence sector continues to grow as global threats and volatility
increase in a challenging geopolitical environment.
The ability to use impartial and objective statistics and data to
identify the strengths of the UK defence sector are essential for
its future success.
The JEDHub project is another example of successful Government
and industry collaboration which is essential to strengthen UK
capability. We look forward to timely projects including on
international alliances and programmes such as AUKUS and GCAP
which exemplify the UK’s enduring commitment to supporting global
defence and security.
The latest JEDHub Annual Economic Report builds on the success of
last year’s report and an all-new industry survey, providing a
detailed picture of the UK defence sector in 2021.
This year’s report captures economic data in 2020 and 2021, which
includes the period during the COVID-19 pandemic which will have
uniquely impacted key metrics such as recruitment and turnover.
