Original post by SmackWho have you been hearing from?
Statistically, engineering is a very highly employable degree. This is partly because there have been lots of vacancies within engineering, and also partly because the skills taught are appreciated by a range of employers, not just engineering.
However, jobs are not guaranteed upon graduation. You still need to possess the knowledge and skills required by employers and there also has to be, as you have identified, positions that require to be filled. Depending on the popularity of the discipline of the available disciplines, there may be lots of people chasing them, making them highly competitive.
Some disciplines are more widely applicable than others, and some industries are growing, or have lots of work going on, whilst others are more stagnant, or even declining. Things can change quite quickly, too - for example, the oil & gas industry.
There are quite detailed statistics published via Unistats for each course at each university, which can be found on their website. These stats show how many graduates from that degree went into work, further study, etc. and also a rough breakdown of the type of occupations they went into - e.g. engineering, IT, etc. However at the moment these stats are for those who graduated in summer 2014, but they should be updated in the next few months for the 2015 graduating class.
This doesn't answer your question too specifically, I know, but I can't really say for sure what the overall "health" of the engineering sector is in the UK, given it's breadth. From what I can see, the civil engineering, infrastructure and construction sector is very hot at the moment, whereas I know the oil & gas sector is struggling. I'm not sure about the various other sectors, such as defence, aerospace, power generation, etc., though. The overall health will be a sum of all the different sectors, and will vary by discipline, and what type of jobs you're willing to do.