Shortage of skilled workers in the automotive industry: innovative solutions to combat the bottleneck
The ongoing shortage of skilled workers poses considerable challenges for the automotive industry in 2025. With the shift toward electromobility and digitalization, the need for specialized skilled workers keeps on growing. Companies and institutions are therefore developing innovative strategies to counteract this bottleneck and ensure the industry’s competitiveness.
Current challenges at a glance
According to an analysis by the auditing and consulting firm EY, sales in the German automotive industry fell by five percent to EUR 536 billion in 2024. At the same time, the number of employees also went down, with almost 19,000 jobs being lost over the course of 2024. Automotive suppliers were particularly hard hit, with their sales shrinking by eight percent and the number of employees declining significantly.
Investment in reskilling and upskilling
To cope with the shift, governments and companies are investing heavily in reskilling and upskilling programs. In Europe, the European Battery Academy is aiming to train around 800,000 workers by the end of 2025 in order to meet the growing demand for skilled workers in battery technology. Automotive manufacturers such as Jaguar Land Rover, BMW and Peugeot are implementing extensive training programs to teach their employees new skills, particularly in digital areas and in dealing with high-voltage systems.
Technology integration to boost efficiency
Integrating technologies like artificial intelligence (AI) offers companies the opportunity to optimize processes and reduce the need for highly qualified technicians. AI can be used in vehicle diagnostics, for example, to identify faults faster and make repair processes more efficient.
Cooperation with educational institutions
Cooperation with technical colleges and training programs creates direct access to young talent. Through partnerships, companies can ensure that training content meets the current requirements of the industry and that graduates have the necessary skills. For example, Charles Darwin University TAFE and the Motor Trade Association SA/NT have signed an agreement to establish an Automotive Training Industry Reference Group to ensure that training programs keep pace with the latest technological developments.
Promoting a positive corporate culture
A positive working environment that offers flexible working hours, competitive pay and recognition helps attract and retain employees in the long term. According to the 2025 Voice of Technician Survey, 78% of technicians surveyed said that higher pay was the most pressing issue that needed to be addressed in order to fix the shortage of skilled workers. In addition, 70% of technicians reported that their company does not offer a clear career path, highlighting the need for structured promotion opportunities.