U.S. Auto Manufacturing Jobs and Wages – April 2025
Last updated: April 16, 2025
Key Takeaways from March 2025 Data
Wages are rising, but most employers are holding hours steady or trimming them slightly—a sign of caution amid persistent labor shortages.
New 25% tariffs on non-USMCA-compliant Canadian and Mexican auto imports began April 3, 2025, creating early disruptions and long-term uncertainty for supply chains and labor.
Hyundai’s $21B investment into U.S. operations through 2028 could reshape domestic manufacturing, particularly in EV infrastructure—but benefits won’t be immediate.
EV market targets have been revised down to 30% by 2030, potentially slowing hiring at EV-exclusive plants and shifting momentum back to traditional manufacturing.
A growing gap is emerging between vehicle assembly hubs and parts-producing regions, with parts suppliers slower to recover due to trade friction and limited incentives.
Michigan is rebounding in assembly jobs, but parts manufacturing continues to decline. Kentucky and Alabama show signs of stability, while California faces long-term contraction in auto manufacturing.
How Many Auto Manufacturing Jobs Are Available in the U.S.?
As of March 2025, the U.S. auto manufacturing industry is showing cautious signs of recovery. According to the latest BLS data, there are now 1,005,700 workers employed in motor vehicles and parts manufacturing (seasonally adjusted)—an increase of 8,400 jobs from January. While modest, this is the second month in a row of net gains, signaling a potential turning point after the steep losses seen at the end of 2024.
Employment Breakdown:
Motor vehicles and parts: 1,005,700 jobs
Growth since Jan 2025: +8,400 jobs
Early 2025 Trends: Modest Recovery Amid Ongoing Volatility
Between November 2024 and January 2025, the industry lost over 15,000 jobs. The rebounds in January and March reflect a possible stabilization, though many manufacturers remain cautious. Gains have been concentrated in parts manufacturing rather than full vehicle assembly, suggesting suppliers are beginning to ramp up in anticipation of future demand.
Wages and Hours: Growth with Caution
Average Hourly Earnings (Not Seasonally Adjusted)
March 2025: $32.88/hour
March 2024: $30.15/hour
Year-over-year increase: +8.7%
Average Weekly Hours (Seasonally Adjusted)
March 2025: 43.1 hours/week
Down slightly from 43.4 in February
Wages have climbed steadily as employers look to retain experienced workers amid persistent labor shortages. However, most are holding weekly hours steady or trimming slightly to balance rising labor costs. It’s a sign of caution: pay is up, but production schedules are still guarded.
Tariff Fallout: Immediate Disruptions and Long-Term Uncertainty
New 25% tariffs on Canadian and Mexican auto imports went into effect April 3, 2025, but currently apply only to non-USMCA-compliant vehicles and parts.
It may take until the April and May jobs reports to fully see how these tariffs ripple through employment.
Check out Critical Mineral Tariffs Could Reshape Auto Supply Chains in 2025
Domestic Investment: Hyundai’s $21 Billion Commitment
In a strategic response to reshoring incentives, Hyundai Motor Group has pledged $21 billion for U.S. expansion through 2028. The plan includes:
A new steel plant in Louisiana
Scaling up U.S. production to 1.2 million vehicles annually
Heavy investment in domestic EV infrastructure and localized parts sourcing
This aligns with U.S. labor rules encouraging domestic assembly, especially where 40–45% of labor earns $16/hour or more. The long-term impact could be significant for high-wage job creation, but benefits won’t be immediate.
EV Outlook
With emissions targets loosened, the expected U.S. EV market share for 2030 has been revised down to 30% (from 40%). This policy shift may slow hiring at EV-exclusive plants and give a temporary lift to traditional manufacturing—although long-term uncertainty still clouds both sectors.
A Growing Gap: Parts vs. Assembly Regions
The gap between states that build vehicles and those that make the parts is becoming more visible. Some assembly-heavy regions are starting to rebound, helped by new investment and production ramp-ups.
But in parts-focused states, job growth has been slower. Suppliers appear more cautious—possibly due to lingering shipping delays, trade-related uncertainty, and fewer direct incentives. While automakers are hiring again, some parts of the supply chain may be slower to follow.
Michigan: Assembly Rebounds, Parts Still Weak
Michigan added 8,200 vehicle manufacturing jobs in February, bouncing back from a steep drop in January. It’s nearly back to December levels and slightly ahead of where it was this time last year.
But while assembly is recovering, parts manufacturing is heading the other way—down 400 jobs since January, 2,000 over the last three months, and nearly 6,000 year-over-year.
Takeaway: Michigan’s OEMs are picking up steam, but their suppliers haven’t caught up yet.
Kentucky: Cautious Progress
Vehicle manufacturing in Kentucky grew modestly in February—up 700 jobs from January—but still short of its December mark and down 500 from last year. Parts production is up slightly across both the one- and three-month views, yet it remains below 2024 levels.
Takeaway: The recovery is there, but it’s cautious and uneven.
Alabama: Consistent and Stable
Alabama’s auto employment hasn’t shifted much. Assembly job counts have held steady since December, and parts employment is inching upward—though still slightly lower than last year.
Takeaway: Alabama continues to offer rare stability in a volatile sector.
California: Subtle Declines, Long-Term Pressure
Assembly jobs in California nudged upward by 400 since January and 200 over three months. But year-over-year, employment is still down 6,500. Without parts data, it’s hard to see the full picture—but the long-term trend points to contraction.
Takeaway: Even with recent gains, California’s manufacturing footprint is shrinking.
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