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Working in Germany: Where are the most jobs in the car industry?

Germany's world-renowned automotive industry is going through a tough time, but it's still one of the country's biggest employers. We looked at where the jobs are across the Bundesrepublik.

Working in Germany: Where are the most jobs in the car industry?
Archive picture shows Porsche AG employees in Stuttgart. Photo: DPA

According to figures from the Federal Statistical Office (Destatis) and reported on by trades magazine Wirtschafts Woche, more than 850,000 people were working in Germany's automotive industry in 2018. That is 17 percent more than in 2009, when there were still about 730,000 employees.

Meanwhile, the number of auto firms have remained constant during that time at just under 1360.

But there's no doubt that Germany's world famous car industry is going through a tough time due to weak global growth, the costly shift to electric vehicles and threats by US President Donald Trump to impose car tariffs.

The industry has also been battling for years to escape the after-effects of the “dieselgate” emissions cheating scandal that broke over Volkswagen in 2015 and has since spread to other manufacturers.

Several major carmakers including VW and Daimler have announced thousands of job cuts for the coming years.

READ ALSO:

And a forecast for the number of cars set to roll off German production lines this year showed the figure at a 22-year low of 4.67 million.

Yet hopes are high that US electric pioneer Tesla's first European factory just outside Berlin will boost German carmakers.

So just how important is the sector to the economy in numbers?

Well, Germany's car industry generated roughly €426 billion in total sales in 2018, compared to €423 billion the year before.

READ ALSO: New Tesla factory near Berin to create 'up to 10,000 jobs'

Which states have the most car industry jobs?

A look at the federal states shows that the industry has a different presence depending on the region.

For example, in Baden-Württemberg, the front-runner, the industry employs over 233,000 people, followed by Bavaria with just under 208,000 people.

According to official statistics no other federal state is home to auto employees in the six-digit range.

Photo: DPA

This does not mean, however, that there are no other car jobs across the country.

Official car industry employment statistics for Bremen, Hamburg and Lower Saxony are not published because of so-called statistical secrecy. Thenumbers are so small that statistics could result in individual details being identified.

For Bremen and Hamburg this makes sense, as there is not a large amount of companies with lots of employees.

Lower Saxony, on the other hand, is home to Volkswagen, one of the largest German car manufacturers. But if too many employees work for one employer alone, the statisticians believe that secrecy can be violated and choose not to publish the figures.

But VW itself steps in here: according to its own figures, the group employs more than 131,000 people in Lower Saxony alone. This puts the state in third place among Germany's car employees.

READ ALSO: German car sales plummet as new pollution rules bite

Here's a breakdown of the number of employees in Germany's auto industry in 2018 compared to 2009, according to official figures:

Baden-Württemberg – 233,296 (2009 – 196,417)

Bavaria – 207,829 (2009 – 207,829)

Lower Saxony – 131,000 (2009 – 111,348) *VW figures

North Rhine-Westphalia – 83,809 (2009 – 81,983)

Saxony – 38,053 (2009 – 24,164)

Rhineland-Palatinate – 22,314 (2009 – 27,211)

Saarland – 22,314 (2009 – 22,733)

Thuringia – 17,497 (2009 – 14,592)

Brandenburg – 6984 (2009 – 5797)

Schleswig-Holstein – 3916 (2009 – 4010)

Saxony-Anhalt – 3877 (2009 – 2799)

Berlin – 3383 (2009 – 3631)

Mecklenburg-Western Pomerania – 3182 (2009 – 2145)

A VW e-Golf in production hangs in the Dresden factory. Photo: DPA

Who are the big employers?

The number of companies is also particularly large in the two states in the south (Bavaria: 240, Baden-Württemberg: 285).

It is interesting to note that North Rhine-Westphalia (NRW), with a total of 246 companies, has even more firms than Bavaria. But with just under 84,000 staff, there’s only a fraction of the number of employees.

In Bavaria, the car multinational BMW alone employs 77,000 people, almost as many as those who work in the car industry in NRW as a whole.

Another heavyweight is Audi in Ingolstadt. In NRW, on the other hand, there are mainly small and medium-sized companies with comparatively few employees.

The state of Rhineland-Palatinate has suffered the most from the crisis in the automotive industry so far.

In 2009, 27,000 people were still working in the 'motor vehicles and parts' sector, as defined by Destatis. Nine years later the figure was only 22,000. Even so, the auto industry remains the second most important sector in the state.

READ ALSO: How Germany is preparing for the rise of the electric car

Which cities employ the most people?

The official statistics not only provide data by federal state, but even down to the level of counties and cities.

The data shows that the car sector in Germany is mainly concentrated in regional clusters. In the Stuttgart district alone, for example, almost 160,000 people work in the motor vehicle and parts sector.

No wonder, given that Mercedes-Benz and Porsche, Bosch and suppliers such as ElringKlinger all manufacture there.

Upper Bavaria, with BMW and Audi, also has a particularly large workforce of 105,000.

So far, the crisis in the automotive industry has not been reflected in the employment figures for the sector – quite the opposite. 

According to their own figures, both VW and BMW have significantly increased the number of employees between 2009 and 2019, from 62,000 to 77,000 (BMW in Bavaria) and from 95,000 to 131,000 (VW in Lower Saxony).

But there are fears that the switch to electromobility could result in serious job losses in Germany's auto industry.

A recent study found that 410,000 jobs are at risk of being cut by the end of the decade.

However, not everyone believes that will happen. 

“The assumption that up to 410,000 jobs could be lost in the coming years is based on an unrealistic extreme scenario,” said German Association of the Automotive Industry (VDA) Managing Director Kurt-Christian Scheel.

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WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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