Car crisis takes toll on Germany’s young engineers
Trained in computer vision, a critical part of autonomous and intelligent driving systems, Peil could once have expected a job at one of Germany’s industrial giants.
But years of stagnant growth in Europe’s largest economy and increasingly tougher Chinese competition are now taking a toll on young engineers like Peil.
“You are often rejected outright,” the 30-year-old told AFP in the western city of Frankfurt.
“I had an interview. Same thing happened with my friends, one sent over 60 applications.”
The ‘golden age’ is over
Known worldwide for its advanced technology and innovative design, Germany’s export-supported auto industry has so far managed to avoid the major decline seen in countries such as the UK, France and Italy. But Chinese automakers such as BYD and Xpeng have cannibalized German automakers’ sales in the world’s largest auto market, prompting painful adjustments at home.
“Ten years ago we were producing around six million vehicles a year, and now we are around four, stabilized at 4.2 million,” Thomas Puls, a transport economist at the IW economics institute in Cologne, told AFP.
“Compared to other European countries, this is a good thing, but we now have to accept that the golden age will not return.”
In a sign of the times, workers on Thursday protested at Volkswagen plants across the country over reports that Germany’s largest automaker plans to cut up to 100,000 jobs.
Total employment in the German automotive sector has fallen by eight percent in the five years to 2025, despite rising by just over one percent overall, according to data from the Federal Employment Agency (FEA).
German industry as a whole is struggling with what some are calling “China Shock 2.0” as firms in the country move away from low-value manufacturing and towards producing higher-tech products, often at lower prices.
This is pushing German companies out of once reliable export markets.
According to data from statistical office Destatis, Germany’s total exports amounted to 1.56 trillion euros ($1.78 trillion) last year; This was down almost two percent from the peak in 2022.
Meanwhile, exports to China fell by almost a quarter to 81.3 billion euros over the same period.
For Peil, who completed an internship at tire maker and industrial supplier Continental last year before quitting his automotive job, the crisis meant it was clear he would not be hired.
“Even when I started you could see this or that part of the business being restructured, and you would read about it in the news all the time,” he said.
“And when you see experienced colleagues leaving, then you know you’re unlikely to be hired for that role.”
‘What’s the problem?’
Anja Robert, who has run the careers service at one of Germany’s leading engineering schools for 20 years, told AFP that even some of the best students now have to spend some time researching.
“They came to us and said, ‘Wow, I wrote 30 applications and got almost no response: What’s the matter?'” says Robert, head of careers at RWTH Aachen University. “There are people who say,” he said.
“It’s no longer a matter of applying to BMW and getting a job.”
According to FEA data, the unemployment rate of qualified engineers reached 3.8 percent last year; This is an increase of almost 50 percent compared to 2022.
Electrical engineer Luca Linhsen is one of the luckier ones; He started working as a software consultant in Hamburg this month.
But he still had to endure a “frustrating” months-long job search.
“When we started our studies as engineers, we were made to understand that you practically get a job before you finish the degree,” he told AFP.
“If you want to study engineering, do it because you have a passion for technology. Don’t do it for the money or job security.”
