According to the New York Times, by 2015 the employment in the auto industry will return to prerecession levels with carmakers and suppliers adding 167,000 jobs. The job growth would represent a 28 percent increase from the current level. Much like the article posted on the increase of jobs within small businesses, the jobs created by the auto industry will increase but are expected to be on the lower of the two pay scales. Also, the added jobs will only replace one third of the jobs that were lost in the last 10 years.
Even with the newly added jobs being on the lower half of the pay scale, the increase is a great sign of growth for the market. The Center for Automotive Research in Michigan stated that it was set to hire 14,750 hourly employees over the next four years. Though workers hired before 2007 earned close to $29/hr, these newly hired workers would be earning entry level wages at $16 to $19/hr. According to the Center, 80 percent of the new jobs would be at auto suppliers and 15 percent would be at Detroit automakers. The rest of the jobs would be accounted for by foreign automakers.
Currently there are close to 590,000 people that work in the auto industry which is 13 percent more than the amount of workers in July of 2009. By 2015, the number is expected to rise to 756,800. Though much of the new jobs will be in Detroit, where automakers cut nearly half of their workforce a decade ago, it is a sign of growth in the job market for Americans all over the country.
SOURCE: The New York Times
IMAGE: Cars Biz Buzz
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