FRANKFURT - Young engineers in Germany are hitting a wall in job market. Max Peil, 30,a software engineer specializing in computer vision, can't find work despite sending 50 applications over last year. "Usually you just get rejected straight up," he said from Frankfurt, noting he's only landed one interview. His situation isn't unique. A friend has submitted over 60 applications without luck.
Germany's automotive sector,once haven of job security for engineers,is in trouble. Stagnant economic growth and tough competition from Chinese companies like BYD and Xpeng have shaken things up. They're biting into German automakers' sales in world's largest auto market, forcing industry to make tough changes.
While Germany's car industry hasn't plummeted like UK's or France's, it's not all rosy. Transport economist Thomas Puls from IW economic institute in Cologne says production's dropped from about six million vehicles a decade ago to four to 4.2 million today. "That's good compared to others,but the golden age is not coming back," he said.
Protests at Volkswagen sites in Germany show industry's unrest. Reports suggest company might cut up to 100,000 jobs . FEA notes that automotive sector employment fell eight percent in five years,even as Germany's overall employment edged up.
This decline ties into bigger trend dubbed "China Shock 2.0." German firms are shifting from low-value production to high-tech goods, often cheaper. This shift's edging them out of once-reliable export markets. In 2022, German exports hit 1.56 trillion euros ($1.78 trillion), nearly two percent down from the previous year . Exports to China alone dropped by almost quarter, to 81.3 billion euros .
Peil's recent traineeship at Continental,a major tire manufacturer now separating its automotive division,highlighted crisis. He saw early that company restructuring dimmed his job prospects. "Even when I started, you could see,and you'd always read about it in news," he said. "And when you see experienced colleagues going,then you know it's unlikely you'll be hired for the role."
Anja Robert,who runs the careers service at RWTH Aachen University,says even top students now endure long job searches. "There are people who come to us and say,'Wow, I've written 30 applications and heard hardly anything back: What's wrong?'" she explained . Days when BMW application meant a job offer are history.
In 2022, unemployment rate for qualified engineers rose to 3.8 percent, nearly 50 percent higher than the previous year. Electrical engineer Luca Linhsen recently snagged a software consultant role in Hamburg, but her job hunt was long and frustrating . "As engineers,we were led to understand when beginning our studies that you've practically got a job even before finishing the degree," Linhsen noted. "If you want to study engineering, do it because you have a passion for technology. Don't do it for the money or the job security."
