Over the past six months, the engineering industry has given job seekers mindful optimism due to the rapid evolution of AI, shifting employer hiring practices and demands, and rising opportunities for work. The engineering job market is a significant source of optimism, aligning with the Bureau of Labor Statistics, which projects architecture and engineering occupations will grow faster than the average of all occupations over the next decade.
So, what are the engineering job market trends that are driving this growth through 2025 and beyond?
The Business of Engineering
In their first quarterly report for 2025, The American Council of Engineering Companies (ACEC) reported that on average, 9% of engineering positions remain unfilled, which is one point more than the previous quarter. Additionally, the ACEC predicted that 75% of engineering firms will experience an increase in hiring over the next 12 months. This data suggests that the engineering job market is experiencing sustained growth and opportunity, which is especially reassuring for engineers searching for jobs amidst the rapidly evolving industry changes.
Adding to the optimism in the engineering job market, there has been a notable demand for engineers across various industries. For example:
- According to the World Economic Forum’s Future of Jobs Report 2025, some of 2025’s fastest-growing roles include Fintech Engineering, Environmental and Renewable Energy Engineering, and Electrotechnology Engineering
- Companies involved in automation, including those that utilize machinery and robotics, are also aggressively searching for engineers with technical skills as more products are being manufactured with AI and other smart technologies.
A Shift in Employer Demands
Amidst increased return-to-office work policies in place and a shift to hybrid work environments. There are some segments of the engineering field, such as mechanical engineers, that still see their fair share of remote work. Additionally, many job postings for engineers that require hands-on, in-person work will specify hybrid or on-site days, indicating a growing trend of allowing engineers to set flexible schedules.
Along with where engineers sit for work, there has been a significant trend among IT and engineering employers this year in prioritizing hiring skills rather than qualifications. Particularly for technology-based engineers, skills-based hiring has enabled tech companies to address their talent shortages by opening the door to candidates who may not possess all the qualifications but exhibit the necessary skills required for the job.
This hiring strategy doesn’t always directly correlate to traditionally trained engineers. However, there has been a growing trend for engineers to complement their strong foundational skills in engineering with crossover skills from other disciplines, augmented explicitly with technical skills. It is known as the T-Shaped Skills Model, and engineering is a prime example of having specialized knowledge as your base, with overarching supplemental skills to support that knowledge and the work at hand.
Not only does skills-based hiring widen the talent pool, but it also allows companies to fill skill gaps, enabling them to leverage their technical innovation and gain a competitive advantage over competitors as they rapidly develop new products. This means that aspiring tech and IT engineers have an opportunity to secure a competitive position, as employers are shifting their emphasis from traditional qualifications to the various skills candidates possess.
AI Impacts the Engineering Job Market
There is significant discussion revolving around artificial intelligence (AI) and its many implications for the job market. Fortunately for engineers, AI presents an opportunity for more work and job positions. Specifically, the ACEC noted in their first quarterly report for 2025 that the rise of data centers will have a positive effect on engineering jobs soon. The development of private data centers will require talent to support the growing capabilities of AI, with the engineering job market reaping the positive benefits of these recent developments.
Moreover, in the same quarterly report, the ACEC found that 78% of engineering firms believe that AI will have a positive impact on their firm in the coming year. Tech and engineering employers are anticipating prosperity due to AI and will be more likely to increase their hiring of engineers within the next six months to a year.
The engineering job market is well-positioned for a period of positive growth, not only in the tech and IT industry, but also in the finance, environmental, and automation industries, among others. Coupled with the addition of AI, the engineering job market will experience new job opportunities in a developing field. As we head into the second half of 2025, the field of engineering is forecasted to have optimistic sentiments, providing candidates searching for a position positive reassurance and those already in the industry an opportunity to grow.