Automotive Is Losing the Race for Engineering Talent. Here’s How to Catch Up.

Software-defined vehicles. Changing consumer values. A generation rethinking what they want from work. Automotive is transforming fast, but the way companies hire engineers hasn’t kept up. The role is evolving, skills are shifting, and the race for talent is on. 

 

But where will tomorrow’s engineering talent come from? It’s not just the work that’s changing, it’s the map. Countries like the US are trying to pull production home, but can they find the talent to match? Will European or Asian consumers buy American-made cars if they clash with regional preferences? For engineering leaders, the stakes are high. Do you double down on local hubs to de-risk your supply chain? Or invest in globally distributed teams connected through simulation and shared platforms? 

 

The tariffs turmoil 

The ongoing tariffs in the automotive industry are creating significant ripple effects on recruitment, leading to fewer opportunities and stalled growth. Companies are suspending projects that would have otherwise created new roles, leaving potential job openings in limbo and reducing the overall demand for talent. Even when a perfect candidate is identified, job offers are often placed on hold due to market uncertainty, delaying critical hiring decisions and creating frustration for both employers and jobseekers. This economic volatility is also causing candidates to hesitate when considering a career move, fearing instability in a sector heavily impacted by trade barriers and the potential for further disruptions. As businesses grapple with unpredictable costs and constrained budgets, they are forced to deprioritise workforce expansion, further exacerbating the slowdown in hiring activity. As a result, automotive recruitment is facing a challenging landscape where both businesses and talent are stuck in a holding pattern, limiting innovation, stalling growth, and threatening the industry's ability to remain competitive. 

 

These aren’t future problems. They’re already here. According to Gi Group Holding’s Automotive Global HR Trends report, based on insights from 6,500 respondents across 11 countries, the race for engineering talent is reshaping how companies hire, build teams, and stay competitive. 

 

From role redefinition to reskilling, inclusion to geopolitics, here’s what the data reveals and what employers need to consider next. 

 

 

Reengineering the engineer 

Our research shows that automotive engineers are the sector’s most needed white-collar hire, with 36% of employers struggling to find them. Furthermore, we uncovered the 10 roles with the highest demand growth rate in the past 24 months: 

 

1. Software Engineer 

2. Mechanical Engineer  

3. Industrial Engineer 

4. Electrical Engineer 

5. Software QA Engineer / Tester 

6. Manufacturing Engineer 

7. Mechatronics Engineer 

8. Electronics Engineer 

9. Industrial / Mechanical Engineering Technician 

10. Validation Engineer 

 

This data highlights how engineering decisions are no longer just technical. The most valuable professionals now think like systems architects: not just for the vehicle, but for the dynamic, fragile business model behind it. They don’t just build: they simulate, optimise and solve for cost, compliance and continuity.  

 

The engineering talent is out there. How to drive it your way? 
Global demand for engineering talent is growing, and so is the competition to attract it. But for all the innovation happening in automotive, it’s struggling to capture hearts and minds. 

 

 

Our survey ranked automotive 12th out of 16 for overall sector attractiveness behind tech, finance, even mining. Among Gen Z and Millennials, automotive barely cracks the top 10. Why? Outdated perceptions about lack of purpose, agility and inclusion.  

 

Today’s early-career professionals are looking for impact, mobility and learning. Automotive has all three - in theory. It’s a sector solving real-world problems: from decarbonisation to autonomous mobility to rethinking the grid.  

 

Automotive can change the story. Despite its challenges, this industry has plenty to offer. What’s needed now is a new narrative that speaks not only to innovation, but to inclusion, purpose and agility. And a hiring approach that recognises the value of cross-border talent, transferable skills, and non-linear career paths. 

 

If you want the best engineers, start by including them 
Automotive doesn’t just have a skills shortage. It has a visibility problem, and an inclusivity gap that continues to narrow its talent pool. Women remain grossly underrepresented in the industry. As our report notes, women account for just 20% of the automotive workforce across much of Europe; even less in the technical roles driving innovation. Many respondents cite a lack of female leaders, poor work-life balance, and outdated gender stereotypes as key barriers to entry. 

 

At a time when engineering demand is soaring and the skills pool is strained, automotive is turning away a generation of women who could drive the next wave of innovation. The good news? Change is already underway. Flexible job design, remote tooling, and smart automation are lowering barriers to entry for women in both technical and manufacturing roles. A new generation of leaders is stepping up, and smart employers are rethinking how they recruit, retain and promote. It’s not enough to say everyone is welcome; you need to show it: visibly, structurally, and from the top down. 

 

The skills exist. The people are out there. But the rules of engagement have changed. From rethinking where you hire to reimagining who qualifies, at Grafton, we understand the pressures and know where to find the people driving change.  

 

 

Ready to talk? Get in touch with our expert team and let’s engineer sustainable talent solutions, together.