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The automotive sector is quite active. The two largest automakers in the world are

Toyota Motor Vehicle and Volkswagen AG, respectively worth $250 and $245 billion in

annual sales. Despite its lucrative nature, the car sector is vulnerable to external factors such

as falling real GDP, increasing unemployment, and increasing inflation (Bhuiyan &

Chowdhury, 2020). In this paper, I would be looking at the unemployment rate in the car

sector. The unemployment rate in the automobile industry has been rising steadily since 2008

and according to projections, the jobless rate has even been higher in 2020 and 2021. In times

of unemployment or reduced income, people often hold on to the cars they already have

instead of buying new ones. Car dealers and company owners may benefit from using the

unemployment rate to predict how customers would purchase automobiles in the future.

Since the car industry's unemployment rate tends to fluctuate wildly. The graph in

Excel shows that the unemployment rate in the car industry was quite low during the years,

1994 and 2007. The low unemployment rate can be attributed to the high demand for

automobiles, which in turn sparked a high demand for workers. In 2008, however, there was

a discernible rise in the unemployment rate (Yusuf & Nasrulddin, 2021). Moreover, evidence

suggests that the COVID-19 pandemic greatly raised the unemployment rate in the

automobile industry in 2020.

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Despite recent improvements, the car sector still has a high unemployment rate. The

automobile sector has seen a precipitous decline in the need for employees from 2008

through 2020. The need for workers in the automobile sector dropped in large part because of

the financial crisis of 2008. Unemployment in the car sector was expected to be particularly

high between 2009 and 2018 due to the impact of technological advancements. Additionally,

significant rates of unemployment in the automobile industry in 2020 can be attributed to the

pandemic of COVID-19 (Viau, Reagor & Lu, 2021). One of the best ways to deal with

unemployment in the car sector is for the government to spend more money on incentives and

subsidiaries.
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References

Bhuiyan, E. M., & Chowdhury, M. (2020). Macroeconomic variables and stock market

indices: Asymmetric dynamics in the US and Canada. The Quarterly Review of

Economics and Finance, 77, 62-74.

Viau, M., Reagor, N., & Lu, T. (2021). * WINNER* Car Crash: The effect of COVID-19 on

Supply and Demand in the Automotive Industry. Proceedings of Student Research

and Creative Inquiry Day, 5.

Yusuf, N., & Nasrulddin, V. (2021). Employment Sustainability and Prospects of the

Automotive Industry in Saudi Arabia. European Journal of Sustainable Development,

10(3), 63-63.

https://www.stlouisfed.org/on-the-economy/2019/april/us-auto-labor-market-nafta