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Executive Summary – The Workforce of the Future

The Workforce of the Future study, produced by the ACEC Research Institute as part of its Firm of the Future initiative, examines the demographic, educational, and organizational forces reshaping the engineering workforce over the next decade. Released in October 2025, the research integrates national population and education data, in-depth interviews, and a large-scale workforce survey to provide a comprehensive view of who is entering the profession, how engineers experience work across their careers, and where critical pressure points are emerging. The findings highlight growing structural constraints on talent supply alongside significant opportunities for firms that modernize culture, workforce models, and leadership development strategies.

Why This Research Matters

  • The engineering profession faces a tightening labor market driven by demographic shifts, retirements, and a shrinking traditional college-age population.
  • While engineering degree production grew over the past decade, recent declines since 2019 signal intensifying competition for early-career talent.
  • Firms must simultaneously address talent supply constraints and evolving workforce expectations related to flexibility, culture, purpose, and professional growth.

Key Findings

  • Between 2013 and 2022, the U.S. college-age population declined by 3.3 percent, while engineering degree completions peaked around 2019 and have since fallen by more than 10,000 graduates.
  • In 2022, approximately 184,000 engineers exited the workforce through retirements and separations, creating an estimated annual gap of 18,000 engineers overall and more than 8,400 in core civil, mechanical, and electrical disciplines.
  • International students are a critical pipeline source, yet only about nine percent of recent international engineering graduates obtain H-1B visas, limiting long-term workforce retention.
  • Survey data show that more than 40 percent of current engineering staff are early-career professionals, underscoring the importance of structured mentoring, knowledge transfer, and succession planning.
  • Students and young professionals place high value on purpose-driven work, learning opportunities, and manageable workloads, while executives emphasize leadership depth, initiative, and organizational resilience.

Implications for the Industry

The research demonstrates that workforce challenges are driven by both arithmetic and design: demographic and policy realities constrain supply, while firm practices determine whether talent thrives. Firms that proactively expand pipelines, modernize operating models, rebalance incentives, and invest in inclusive leadership development are better positioned to retain talent and remain competitive through 2035 and beyond.

Methodology

The study integrates three complementary research components: a quantitative analysis of population, education, and immigration data; 38 in-depth interviews conducted between June and July 2025 with students, professionals, executives, and non-engineering staff; and a national workforce survey of 2,097 respondents fielded between August and September 2025. Statistical testing was conducted at a 95 percent confidence level to ensure robustness of findings.

Practical Applications

This research enables engineering firm leaders to assess workforce risks, strengthen recruiting and retention strategies, and plan for succession in a constrained labor market. Policymakers and educators can use the findings to inform workforce development and immigration policy discussions. Industry stakeholders can apply the insights to build resilient, inclusive organizations capable of attracting and sustaining the next generation of engineering talent.

 

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Topic Area

Firm of the Future

Date

October 31, 2025

Resource Link

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