The German automotive industry is undergoing a pro

The German automotive industry is undergoing a profound transformation. A comprehensive study commissioned by the German Association of the Automotive Industry (VDA) and conducted by the Prognos Institute reveals the significant impact of this transformation on employment. With changing global market conditions, including strong external growth, the transition to electric vehicles, digitalization, and economic policy uncertainties, the employment landscape in Germany's automotive sector is undergoing a major shift.

Due to the electrification of powertrains, the total number of jobs required for automobile production has decreased, and significant changes have occurred in employment sectors. Traditional high-demand positions, such as those in mechanical engineering, industrial technology, and metalworking, have become less important, while careers in automotive technology, technical R&D, information technology, electrical engineering, and software development are growing. For example, the number of IT-related jobs in the automotive industry has increased by about a quarter since 2019 and by 85% since 2013.

An analysis of various occupational categories shows that about a quarter of employees will retire within the next decade. While this may support the transition for some professional groups, there is a serious risk of bottlenecks in fields such as electrical engineering, energy technology, and information technology. The study identifies four combinations of occupational importance and labor supply:

Increasing importance but decreasing supply: Likely to exacerbate the shortage of skilled workers.

Decreasing importance and decreasing supply: Primarily affecting occupations such as metal structures and welding technology.

Increasing importance and increasing supply: Applicable to positions in IT, mechatronics, etc.

Decreasing importance but increasing supply: Mainly involving corporate business management and administration.

Since 2013, employment in human resources has increased by 36%, indicating that companies are facing both the challenge of recruiting skilled labor and increasing regulatory pressures. The automotive industry's workforce is undergoing significant adjustments, with a clear shift in focus and the creation of new jobs, though the overall employment balance remains negative. If current trends continue, by 2035, employment in Germany's automotive sector will be 186,000 jobs fewer than in 2019, primarily due to the transition from internal combustion engines to electric drives. From 2019 to 2023, 46,000 jobs were already lost, and an additional 140,000 jobs are expected to be lost by 2035.

Hildegard Müller, President of the German Association of the Automotive Industry (VDA), emphasized that the industry's transformation is a formidable task. Companies are making substantial investments in R&D and factory restructuring, but the shift to electric vehicles will still lead to job losses. Political frameworks are crucial, as they will determine the direction of future investments and job creation. Germany faces challenges in electricity prices, taxation, and bureaucracy, leading to declining international competitiveness and affecting corporate investment plans. 82% of companies have postponed, relocated, or canceled investment plans in Germany, while 37% plan to move investments abroad. Therefore, creating competitive conditions and appropriate political frameworks is urgent, including reducing energy prices, cutting bureaucracy, speeding up planning and approval processes, optimizing tax and tariff systems, and increasing free trade agreements. These measures are essential to retain and create more jobs, ensuring the successful transformation of Germany's automotive industry.