U.S. Auto Manufacturing Jobs and Wages – March 2025
Last updated: March 6, 2025 (includes latest tariff delay news)
How Many Auto Manufacturing Jobs Are Available in the US?
As of March 6, 2025, U.S. auto manufacturing employment stands at a crossroads, shaped by shifting trade policies, corporate strategies, and recent labor trends. For those asking how many auto manufacturing jobs are available in the U.S., the latest data from January 2025 shows approximately 995,800 workers in vehicle and parts production. Yet, with monthly fluctuations, declining hours, and looming policy changes, this figure could shift significantly throughout the year.
This report explores the key factors driving employment in the sector, drawing on recent news, labor statistics, and wage data to assess the current landscape and its potential trajectory.
Tariffs: A Double-Edged Sword
On March 4, 2025, President Donald Trump announced a 25% tariff on goods from Canada and Mexico, a move dubbed the "Trump Effect" by Fox News. However, following pushback from automakers like General Motors, Ford, and Stellantis, the White House delayed implementation until April 2, 2025, as reported on March 6. This reprieve aims to protect the integrated North American supply chain, where parts often cross borders multiple times before assembly.
For more on how steel tariffs are increasing costs for automakers, see our analysis in Steel Shock: Auto Makers Brace for 25% Tariff Hit.
The delay offers temporary stability, but the tariff threat persists. If enacted, it could raise vehicle production costs by $4,000 to $10,000 per unit, per industry estimates. Higher prices might dampen demand, risking production cuts and layoffs—potentially affecting tens of thousands of jobs.
Conversely, the policy could spur long-term growth. Breitbart highlighted Honda’s decision to shift Civic hybrid production from Mexico to Indiana by 2028, a move tied to tariff pressures that could create hundreds of jobs in assembly and logistics over time.
The Washington Examiner frames this as a “major win” for states like Indiana and Michigan, with Rep. Jim Banks (R-Ind.) calling it “great news for Hoosiers.” Yet, with full production years away and uncertainty over further exemptions, the immediate job impact remains unclear.
Current Employment Snapshot
January 2025 labor data pegs U.S. auto manufacturing jobs at 995,800, but the sector has trended downward recently:
November 2024: -900 jobs
December 2024: -5,400 jobs
January 2025: -9,700 jobs
This 15,000-job decline over three months contrasts with gains elsewhere:
Health care: +44,000 jobs
Retail: +34,000 jobs
Social assistance: +22,000 jobs
These losses reflect broader pressures—supply chain disruptions, softening EV demand, and market jitters—setting a challenging baseline for 2025. Regional data paints a mixed picture:
Michigan saw a 5.7% employment increase in motor vehicle manufacturing (50,000 workers in December 2024), while parts manufacturing dropped 6.0% (115,100 workers).
Indiana, despite Honda’s plans, saw a 2.7% decline (55,100 workers), highlighting uneven impacts across key states.
(Source: Current Employment Statistics),
Wages and Hours: A Deeper Look
Despite employment declines, wages in the sector are rising. In January 2025, production and nonsupervisory workers in motor vehicles and parts manufacturing earned an average of $31.84 per hour, up 6.1% from January 2024.
Vehicle manufacturing workers earned $38.42.
Parts manufacturing workers earned $29.99.
However, average weekly hours dropped to 42.1 (seasonally adjusted), down 0.5 hours from December 2024, signaling reduced production schedules that align with the job losses.
This combination of rising wages and falling hours suggests cost pressures: automakers may be cutting hours to manage expenses while offering higher pay to retain skilled workers amid labor shortages. However, if production continues to slow—especially with tariff uncertainty—further job cuts could follow.
Honda’s Move: A Glimmer of Hope
Honda’s tariff-driven shift, detailed by Fox News, relocates Civic hybrid production from Guanajuato, Mexico, to Greensburg, Indiana, targeting 210,000 vehicles annually by May 2028.
While not immediate, this could boost demand for engineers, technicians, and assembly workers as early as 2026, with preparatory hiring potentially starting sooner. For a region hit by past manufacturing declines, it’s a promising signal—though its scale won’t offset near-term losses, especially given Indiana’s current 2.7% employment drop.
Alongside workforce expansion, maintaining high standards is critical. Learn why quality control plays a vital role in automotive manufacturing as production scales and new models enter the market.
Economic Risks and Opportunities
The tariff debate hinges on trade-offs. Critics, cited by Fox Business, warn of price hikes that could shrink sales, threatening jobs at plants reliant on affordable imports. Retaliatory tariffs from Canada and Mexico could further snarl supply chains, impacting the 30% of U.S. auto production tied to North American parts. Reduced hours and employment in parts manufacturing—down 7,400 jobs in Michigan alone—already reflect this strain.
Yet, Commerce Secretary Howard Lutnick, per Fox News, hints at possible exemptions for USMCA-compliant goods, which could stabilize jobs if finalized.
Long-term, sustained tariffs might force more production stateside, but automakers face hurdles: high setup costs, long product cycles, and a potential recession. Rising wages could give workers leverage, but this may be offset by layoffs if demand drops due to price hikes.
The question of how many auto manufacturing jobs are available in the U.S. hinges on this balance.
How Timpl Can Help
In March 2025, U.S. auto manufacturing blends opportunity and uncertainty. Tariff delays and shifts like Honda’s offer hope, but recent job losses, declining hours, and regional disparities underscore persistent challenges.
At Timpl, we’re equipped to support this evolving sector with:
A talent pool for manufacturing and logistics roles, prepared for wage-competitive hiring.
Flexible staffing for growth spurts or downturns, addressing fluctuating hours and production needs.
Workforce strategies to adapt to market shifts, including regional variations.
If you're navigating uncertainty in production schedules or demand, temporary staffing is an essential solution for automotive manufacturers.
If you’re hiring engineers, technicians, or other skilled professionals, explore our guide on how to hire engineers and other high-demand automotive professionals to stay competitive.
Looking Ahead
The number of auto manufacturing jobs in the U.S. will evolve with policy, wage trends, and market responses.
Looking beyond today’s challenges, explore our Complete Guide of the Automotive Industry’s Future.
Learn how automation is driving the future of automotive and what it means for tomorrow’s workforce.
We’ll track monthly data and updates—especially the April 2 tariff deadline—to keep you informed on this year’s employment trends.
