Germany's automotive sector crisis drives engineer unemployment

Germany's car industry is facing a deep hiring slump, leaving many young engineers unable to find work. Software engineer Max Peil, trained in computer‑vision, has sent out around 50 applications and secured only one interview, a situation echoed by his peers. Unemployment among qualified engineers rose to 3.8%, up about 50% from the previous year.

Production has fallen from roughly six million vehicles a decade ago to about 4.2 million this year, while exports slipped 2% to €1.56 trillion, with sales to China down a quarter. Competition from Chinese manufacturers such as BYD and Xpeng is cited as a key factor. Workers protested at Volkswagen sites over reports that the group may cut up to 100,000 jobs, and overall automotive employment fell 8% over the past five years, even as the broader German job market grew modestly. Analysts describe the disruption as a “China Shock 2.0,” reflecting a shift toward lower‑cost, high‑tech production that threatens traditional German export markets.