Workers at a Ford plant in Detroit. The maker will add thousands of jobs as part of its new UAW contract.
There’s an old adage that when the economy catches a cold the auto industry comes down with pneumonia, as was apparent when Detroit’s makers struggled for survival in 2009, two of the Big Three plunging into bankruptcy. But with the overall economy now struggling to turn around it seems that the auto industry is pushing it into high gear – car sales showing newfound momentum and –according to a new study – carmakers getting ready to go on a hiring spree.
A new study by The Center for Auto Research estimates the U.S., auto industry will add 60,000 new jobs next year, and 190,000 jobs between now and 2015.
Detroit’s three makers and their “transplant” rivals have already added or announced plans to add tens of thousands of new workers but the CAR study suggests the bulk of the new jobs it is anticipating will be added by automotive suppliers.
A combination of rising car sales as well as the promised jobs included in the latest round of contract talks with the United Auto Workers Union will drive part of hiring, according to CAR labor analyst Kristen Dziczek.
She estimated that GM, Ford and Chrysler will see their combined U.S. employment surge from 171,742 in 2010 to 201,000 by 2015.
The job gains in Michigan include an estimated 12,000 salaried workers, Driczek said.
The hiring will reverse jobs losses that began more than 30 years ago, said Art Schwartz, president of Labor and Economics Associates in Ann Arbor, Mi. and a former GM labor negotiator. Back in 1978, the Detroit Three employed about 1 million workers in the U.S.
“That’s staggering when you think about it,” Schwartz said.
The employment growth for the Detroit Three will be accompanied by a 28% increase in total employment for the auto industry and an increased demand for parts that already is putting pressure on some suppliers.
“About 100,000 to 150,000 people need to be hired by suppliers over the next four years,” Dziczek said.
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