The Future of the Automotive Workforce 2025: Key Trends and Opportunities

Do you remember the Jetsons cartoon series that made its way on televisions in the 60’s? The autonomous cars, flying cars, electric rechargeable cars and other vehicles that seemed impossible are becoming reality in 2025. The hyper-modern public transport in The Jetsons is probably the inspiration for today's designs.

This rapid change in the automotive industry has new needs. It is transforming employment patterns, new skills are in demand, and global competition is reshaping the workforce. For businesses, workers, and recruiters—including those in automotive recruitment agencies—understanding these trends is critical for staying ahead.

Key Workforce Metrics for 2025

Employment Shifts: Losses and Gains

The transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) is one of the biggest disruptors in the industry. With EVs requiring fewer moving parts—up to 70% fewer than traditional gas-powered cars—OEMs are experiencing a dramatic reduction in workforce demand for mechanical assembly and traditional manufacturing roles.

Traditional OEM Jobs Shrinking: The decline in ICE vehicle production is expected to reduce some traditional roles by up to 50%, with many workers facing displacement. Companies like Ford, Stellantis, and Volkswagen have already begun scaling back production plans for ICE vehicles, leading to job cuts and restructuring.
EV Charging Growth: The expansion of EV infrastructure is a major source of new jobs. The U.S. is projected to create up to 160,000 new roles in EV charging installation and maintenance by 2032.
Battery Manufacturing Surge: Europe is aggressively investing in battery production to reduce reliance on imports, with upskilling initiatives targeting 800,000 workers by 2025.
Nearshoring Trends: 81% of automotive executives are considering relocating supply chains closer to home due to geopolitical and economic factors. However, only 2% have completed the transition, meaning job relocations and workforce shifts are still in progress.
Chinese Competition: With a 40% EV market share in China and a 17% global market share, Chinese automakers are reshaping the industry. Their cost advantages—estimated at 25% lower than Western competitors—are forcing traditional manufacturers to rethink workforce strategies. More than 3 million Chinese EVs were exported in 2024 alone, increasing pressure on global automakers.

The Workforce Trends

The auto industry is shifting from hardware-driven manufacturing jobs to technology-focused roles. The rise of software-defined vehicles (SDVs) and connected car ecosystems means automakers need expertise in AI, software development, and cybersecurity.

Software-Defined Vehicles (SDVs): 72% of passenger vehicles now have connectivity features, requiring an increasing number of software engineers to work on real-time data analysis, over-the-air (OTA) updates, and AI-powered automation.
Outsourced Engineering: R&D outsourcing is accelerating. Engineering services in lower-cost regions like India are expected to double by 2032 as automakers move development processes offshore to remain competitive.
Hybrid Resurgence: While EV sales continue to grow (7.4% YoY), hybrid vehicle sales are seeing even faster adoption (23% YoY). This is prompting manufacturers to shift their workforce focus toward hybrid propulsion systems.
Geopolitical Pressures: The COVID-19 pandemic, supply chain disruptions, and international conflicts have led many automakers to reconsider production locations, affecting employment stability in different regions.
Autonomous Vehicle Developments: While full self-driving technology remains in progress, Level 3 and early Level 4 automation advancements are creating demand for experts in AI, sensor fusion, and machine learning.

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The Skills Gap and Emerging Demands

As the automotive industry evolves, so do its skill requirements. The rise of electrification, software integration, and automation is creating a demand for new expertise.

AI & Software Development: 76% of automotive leaders prioritize AI for predictive analytics and decision-making. Automakers are now hiring more data scientists and software engineers than ever before.
Electrification & Battery Tech: Skills in battery chemistry, solid-state battery technology, and EV maintenance are crucial as automakers focus on improving range and efficiency.
Autonomous Vehicles: Advanced sensor technology, LiDAR, and in-vehicle computing (such as NVIDIA DRIVE Thor, set to debut in 2025) are driving demand for engineers specialized in self-driving technology.
Cybersecurity & Connectivity: Connected vehicles introduce cybersecurity risks. Companies are investing heavily in protecting vehicle networks, requiring expertise in encryption, intrusion detection, and cloud-based security solutions.
Green Energy & Sustainability: Alternative fuels such as e-kerosene, e-methane, and hydrogen fuel cells are gaining traction, creating new roles in research, development, and production.

Challenges in Automotive Recruitment

Despite the emergence of new opportunities, the automotive industry is facing a talent shortage that is slowing down its ability to adapt to new technologies.

Talent Shortage: 74% of employers report difficulty finding skilled workers, particularly in software engineering and AI-driven automation.
Upskilling Needs: Many automakers and suppliers are investing in training, but workforce reskilling struggles to keep pace with rapid innovation. ManpowerGroup and other workforce development firms are partnering with OEMs to address this challenge.
Location Mismatches: Job growth in EV and software-related roles isn’t necessarily happening in the same regions where traditional automotive jobs are being lost, causing workforce displacement challenges.
Workforce Consolidation: Mergers, such as the potential Honda-Nissan-Mitsubishi deal, could lead to restructuring, layoffs, and shifts in hiring priorities.

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Future-Proofing the Workforce

For businesses and workers alike, adapting to this new automotive landscape requires a proactive approach:

Invest in Training: Companies must prioritize upskilling programs to help workers transition from traditional manufacturing roles to emerging technology-based positions.
Leverage Recruitment Expertise: Automotive recruitment agencies can help businesses navigate talent shortages and find specialized candidates with the right expertise.
Monitor Global Trends: Keeping an eye on international shifts—such as China’s competitive edge and nearshoring efforts—will be key to workforce planning.
Embrace Technological Change: Upskilling in AI, software, and green energy will define the next generation of automotive professionals.

The automotive industry is in flux

The automotive workforce in 2025 is navigating a complex landscape of decline in traditional roles, growth in EV and tech jobs, and a pressing need for upskilling. While challenges like talent shortages and competition from Chinese OEMs persist, opportunities in green jobs and software innovation offer pathways for growth. Stakeholders must prioritize inclusive upskilling and strategic partnerships with recruitment and talent sourcing agencies to manage this transition effectively.

The Automotive Workforce in 2025: Trends, Challenges, and Opportunities