Automotive as a job engine: employment up 44 percent

The automotive industry has proven to be a job engine in Saxony over the past ten years. From 2012 to 2022, employment at companies producing motor vehicles or motor vehicle parts increased by 44 percent. The increase was thus far above the general employment growth in the Free State of 11.5 percent, as the regional directorate of the Federal Employment Agency announced in response to an inquiry from the Deutsche Presse-Agentur. According to the report, more than 43,400 men and women would be working in the local automotive industry at the end of 2022. The automotive industry plays a prominent role in Saxony, said spokesman Frank Vollgold.

The heart chambers of the industry are in the regions of Leipzig and Zwickau, where the major automakers Volkswagen, BMW and Porsche have production facilities. The Erzgebirgskreis and the city of Chemnitz follow at a considerable distance in other places. According to the regional directorate, Leipzig and the Zwickau district accounted for more than 80 percent of the additional jobs recently created in Saxony's automotive industry. In addition, the industry attracts with high wages. The median monthly earnings of full-time employees are 4169 euros, more than 1,000 euros above the state average.

However, many of the more than 2,000 temporary employees at Volkswagen in Zwickau are worried about losing their jobs due to weakening demand for e-cars. VW had recently announced that it would not extend nearly 270 contracts that are about to expire. Further could follow depending upon the future development of the orders.

The regional directorate assumes that depending upon their exact qualification many concerning can seize fast in other enterprises foot. Because with many occupations frequently exercised in the car production there are bottlenecks in Saxonia, for example within the ranges metal construction and welding technology, metal processing as well as mechanical engineering and drive technology.

However the development wakes with VW concerns with supplier enterprises. Because a large number of jobs in other companies also depend on the automotive industry. This includes, for example, companies in the textile industry and the chemical industry. According to the regional directorate, a total of more than 97,800 people were employed in industries related to cars in Saxony at the end of last year.