The Production of Electric Cars Significantly Increases Jobs

Sep 27, 2024

The shift to electric vehicle (EV) production in the U.S. has created a much greater demand for labor than previously anticipated, contradicting earlier predictions that EV production would lead to job cuts in the auto industry.

A new study from the University of Michigan reveals that factories producing electric vehicles require significantly more workers than those manufacturing internal combustion engine (ICE) vehicles. In some factories, during the initial stages of the transition to EV production, up to ten times more labor was needed.

The study analyzed data from several U.S. auto plants that have shifted to producing battery electric vehicles (BEVs). Contrary to popular belief, the research shows a dramatic increase in jobs during the early stages of EV production.

In one factory that has been producing electric cars for more than a decade, the amount of labor required per vehicle remains three times higher than what is needed to produce ICE vehicles. This finding is particularly surprising, given that EVs generally have fewer mechanical components and less complex powertrains than traditional gasoline-powered vehicles.

Earlier projections suggested that the rise of EVs would result in significant job losses within the auto industry. Analysts estimated that 30% to 40% of jobs in the U.S.—over 200,000 positions—could be lost as companies transitioned to electric vehicles. However, these predictions have proven to be inaccurate.

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