The last year 2023 was quite a mixture of gains and losses especially for the auto industry, the big sharks in the industry have seen significant ups and downs in their sales and employment behaviours. The uncertain economic conditions around the world have made the unemployment skyrocket and so does in the auto industry. many job opportunities were open but very few of the skilled people were able to fill the positions. However, the hiring process was recorded as the toughest one for the auto business ventures.
The automotive business is subject to continuous change due to factors such as global economic fluctuations, market trends, and technology breakthroughs. The hiring activity in the industry is one important factor that reflects these shifts, especially when it comes to potential future job possibilities. The Automotive: recruiting Trends & Signals Q4 2023 study from GlobalData explores in-depth recruiting trends, job positions, skills demand, geographic trends, and key issues influencing the workforce requirements of the automotive industry. What this report finds and how the data shocked the industry experts is another tale. However, let’s have a look at what this paper has to reveal.
How is employment reduced in the market?
The job market was recorded as the most uncertain period for almost every industry. the auto industry is no exception. The report from GlobalData has explored this factor in great detail and found something very interesting.
Comparing Q4 2023 to Q1 2022, the global car industry saw a notable 22% drop in new job ads about future work. Even though the reduction is significant, it is a little better than the 34% decline that was seen in Q4 2022, whether in the market of used cars in UAE or the USA. It suggests a subtle change in the industry’s employment practices and priorities, impacted by many variables like organizational strategies, market dynamics, and technology disturbances. Furthermore, the major influencing factor was the uncertain economic situation around the world due to different war situations and other political instabilities that impacted the global auto industry.
Another noteworthy reason was that the expert and skilled employees were retiring from their jobs but to fill their positions, no better alternative was there which forced the old employees to continue their jobs until the industry found their replacement. This has also disturbed the job market in almost every part of the world.
What job roles and trends were reported?
With a noteworthy 20% share of new job posts in Q42023, Computer and Mathematical Occupations emerged as the most popular job roles among the numerous career roles spanning future work in the automotive sector. Nonetheless, compared to the prior quarter, there was a 12% drop in new job ads for these positions, indicating a recalibration in the demand for particular skill sets within this industry.
Occupations in architecture and engineering came in second, with a share of new job posts of 17%. Even while recruiting for these positions has decreased by 17%, they are still crucial to the industry’s innovation and growth, especially in fields like design, research, and technology application.
However, the management occupations (which account for 8% of the total) and installation, maintenance, and repair (which account for 7% of the total) are two more important job categories that will influence recruiting in the future. These positions are vital to managing operations in the auto industry, guaranteeing functional effectiveness, and preserving the integrity of automotive processes and systems. When the job market will be disturbed, there will be a significant impact on the entire industry.
Leading businesses and regional patterns
The existence and tactics of important players also influence the recruiting environment in the car sector. The top employers in Q4 2023 for new job listings about future positions were Ford Motor, Tesla, Continental, AB Volvo, and Zhejiang Geely Holding Group. Taken as a whole, they constituted a sizeable 37% of all newly created employment in this field, underscoring their emphasis on expanding the workforce and attracting talent in line with changing market demands.
Geographically, the US emerged as the main centre of future hiring activity connected to work, accounting for a significant 53.18% of all new job posts in Q4 2023. This supremacy highlights the US automobile sector’s technological competence and innovation-focused mindset. India and Germany came in second and third, with 9.05% and 5.95% of the market share, respectively, showing that the talent acquisition efforts in the business are distributed globally.
What possible difficulties may come forward?
The industry’s short-term plans and difficulties are called into question by the drop in hiring activity, but it also presents an opportunity for innovation, upskilling, and strategic workforce planning. An active strategy for talent acquisition and development is required as a result of the ongoing transformation of work roles and skill needs brought about by the integration of emerging technologies like robots, artificial intelligence, and autonomous systems.
The automobile industry is rapidly shifting and new technologies are being introduced daily. In this situation, the young generation having the command of these techs will be more suitable to take on board as these young minds have more to bring to the table. However, the expertise and skill of the old employees can never be underestimated. The short-term training and guidance sessions given by these retiring workers to the young ones will be more useful in the future.
On the other hand, the companies need to arrange workshops, training sessions and meetup conferences to connect the young talent with the experienced ones so that the exposure might be expanded.
What to look ahead in 2024?
To help recruiters in the automotive sector deal with the difficulties of hiring and close the skill gap in 2024, consider the following ideas:
Stress Tech Skills
Candidates with strong technical skills, such as competence in software development, data analysis, artificial intelligence, and robotics, should be given priority in light of the growing integration of technology in automotive roles.
Invest in Training Programs
To close skill gaps in your current staff and get them ready for changing job positions and technology improvements, create comprehensive training and upskilling programs.
Work Together with Educational Institutions
Establish alliances with colleges, technical institutions, and online learning environments to access a wide range of talent and promote lifelong learning and skill enhancement.
Encourage Diversity and Inclusion
Establish inclusive hiring procedures and cultivate a broad staff to attract a range of viewpoints, boost creativity, and successfully meet the changing demands of the business.
Use AI in Recruitment
To expedite the hiring process, find top talent quickly, and shorten the time to hire, make use of AI-powered tools and platforms for candidate sourcing, screening, and assessment.
Wrap up
GlobalData’s analysis of the hiring patterns and indicators for the automotive sector in Q4 2023 offers a sophisticated perspective on the changing nature of the labour market. Strategic talent management and skill alignment will continue to be essential in fostering sustainable growth, innovation, and competitiveness in the global auto sector as the industry navigates through technology changes and market transformations.
