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Wages and Employment of Workers in 

Automobile Manufacturing

By Jeffrey Holt

Jeffrey Holt is an economist in the Division of Occupational Employment 

Statistics, U.S. Bureau of Labor Statistics

1

 This figure does not include company headquarters, sales, or distribution 

centers. This article was written with data collected in May 2005 by the 

Occupational Employment Statistics program. 

The 1.1 million1 workers employed in automobile manufacturing in the United States in 2005 received, on average, a wage that was 11 percent higher than the U.S. 

average. Autoworkers earned a mean hourly wage of $20.53, 

whereas the U.S. mean hourly wage for all occupations across 

all industries was $18.21. This wage premium, however, was 

not evenly distributed across all automobile manufacturing 

occupations: employees in less skilled occupations were paid 

more than their counterparts in other industries, while those 

in highly skilled occupations, such as engineers, were paid 

less than their counterparts in other industries. This article 

examines employment and wages in three groups of the automobile manufacturing industry—motor vehicle manufacturing (NAICS 3361), motor vehicle body and trailer manufacturing (NAICS 3362), and motor vehicle parts manufacturing 

(NAICS 3363)—for various occupations.

Motor vehicle parts manufacturing (NAICS 3363), the 

largest industry group, accounted for 693,120 workers, or 

62 percent of the industry’s workforce. The mean hourly 

wage paid to these workers fell between the other two industry groups at $19.79. The 256,700 workers in motor vehicle manufacturing (NAICS 3361) were paid the highest 

mean hourly wage of $25.03. Finally, motor vehicle body 

and trailer manufacturing (NAICS 3362) employed the fewest workers in automobile manufacturing and paid the lowest 

mean hourly wage. This industry group employed 168,840 

workers, or 15 percent of the industry’s workforce. These 

workers earned a mean hourly wage of $16.73. The variation 

in employment and wages persisted when looking at individual occupations.

Engineering managers accounted for a small percentage of 

the automobile manufacturing industry with 5,140 workers. 

Their mean hourly wage of $46.09 was very high in comparison to the rest of the industry. However, this wage was 

lower than the cross-industry mean hourly wage of $50.71. 

Engineering managers were an example of workers in higher 

skilled occupations who received a lower wage in automobile 

manufacturing than their counterparts in other industries.

The wages and employment of engineering managers 

fluctuated between the three industry groups. Motor vehicle 

manufacturing (NAICS 3361) employed a total of 610 engineering managers, earning a mean hourly wage of $50.36, 

the highest of the three industry groups. Motor vehicle parts 

manufacturing (NAICS 3363) employed the largest number 

of engineering managers with a total of 3,960. These managers earned a mean hourly wage of $46.18. Motor vehicle 

body and trailer manufacturing (NAICS 3362) employed the 

fewest engineering managers and paid the lowest wage. This 

industry group employed 570 engineering managers and paid 

a mean hourly wage of $40.90.

Another well-paying occupation in the automobile manufacturing industry in 2005 was industrial production managers. According to the Standard Occupational Classification 

Manual, 2000, industrial production managers planned, directed, or coordinated the work activities and resources necessary for manufacturing products in accordance with cost, 

quality, and quantity specifications. As with engineering 

managers, they represented a small percentage of employment in the automobile manufacturing industry with total 

employment of 8,270. The wages that they earned were 

high, in comparison to the rest of the automobile manufacturing industry, with a mean hourly wage of $38.29. Industrial 

production managers were another example of workers in a 

higher skilled position earning a lower wage in the automobile industry than across all industries. As mentioned, their 

mean hourly wage in automobile manufacturing was $38.29, 

whereas in other industries, their mean hourly wage was 

slightly higher at $39.41.

A more pronounced variation in wages and employment 

was present depending on which industry group employed 

industrial production managers. The industry group that paid 

the highest wages for this occupation was motor vehicle manufacturing (NAICS 3361). The 1,550 workers in this group 

earned a mean hourly wage of $41.67. Motor vehicle parts 
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manufacturing (NAICS 3363) employed the most industrial 

production managers with a total of 5,490. These managers 

earned a mean hourly wage of $38.31. Finally, motor vehicle 

body and trailer manufacturing (NAICS 3362) employed the 

fewest industrial production managers and paid the lowest 

mean hourly wage. These 1,230 managers earned a mean 

hourly wage of $33.94.

An integral part of automobile manufacturing is the 

production of the vehicle’s engine. In 2005, the automobile manufacturing industry employed 16,570 engine and 

other machine assemblers who earned a mean hourly wage 

of $19.51. This wage surpassed the mean hourly wage of 

$17.38 earned by engine and other machine assemblers who 

worked in other industries.

Another large employer of engine and other machine assemblers was agriculture, construction, and mining machinery 

manufacturing (NAICS 333100), which paid a mean hourly 

wage of $16.11. Other general purpose machinery manufacturing (NAICS 333900) also employed a large number of engine and other machine assemblers and paid a mean hourly 

wage of $15.04. This was an example of a lower skilled, 

lower paid occupation that received higher wages in the automobile manufacturing industry than in other industries.

 In 2005, motor vehicle manufacturing (NAICS 3361) was 

the largest employer of engine and other machine assemblers 

with a total of 8,250 people employed. These workers were 

paid higher wages than their counterparts in the other two 

industry groups with a mean hourly wage of $21.36. Motor 

vehicle parts manufacturing (NAICS 3363) employed 7,590 

engine and other machine assemblers and paid a mean hourly 

wage of $17.98. Finally, motor vehicle body and trailer manufacturing (NAICS 3362) employed the fewest engine and 

other machine assemblers and, also, paid the lowest mean 

hourly wage. There were 730 engine and other machine assemblers working in this industry group who earned a mean 

hourly wage of $14.47, in this case, less than the cross-industry average.

Employment and wages for engine and other machine assemblers varied dramatically by State. Kansas paid the highest mean hourly wage of $22.61, while Nebraska paid the 

lowest mean hourly wage of $11.04. Ohio was the largest 

employer of engine and other machine assemblers with 3,360 

people employed, and Iowa employed the highest concentration of these workers with a total of 2,020.

Welders, cutters, solderers, and brazers made up roughly 

3 percent of the total automobile manufacturing employment 

with 36,490 workers. They earned a cross-industry group 

mean hourly wage of $15.72. As seen previously in different 

occupations, employment and wages for welders, cutters, solderers, and brazers can vary widely across industry groups. 

Motor vehicle manufacturing (NAICS 3361) employed the 

fewest of these workers with an employment count of 3,250 

yet paid the highest mean hourly wage of $20.65. Motor 

vehicle body and trailer manufacturing (NAICS 3362) employed the highest number of welders, cutters, solderers, and 

brazers, with a total of 18,650. This industry group also paid 

the lowest mean hourly wage, $13.77. Finally, motor vehicle 

parts manufacturing (NAICS 3363) employed 14,590 welders, cutters, solderers, and brazers and paid a mean hourly 

wage of $17.11.

The largest occupation by employment in the automobile manufacturing industry in 2005 was team assemblers. 

Team assemblers accounted for 211,100 workers, or roughly 

19 percent of total industry employment. Team assemblers 

working in the automobile manufacturing industry earned a 

much higher wage than their counterparts working in other 

industries. The mean hourly automobile industry wage for 

these workers was $15.31, roughly 18 percent higher than the 

cross-industry mean hourly wage of $12.50.

Motor vehicle manufacturing (NAICS 3361) employed 

60,530 team assemblers and paid the highest mean hourly 

wage, $19.98. Motor vehicle parts manufacturing employed 

the most team assemblers with a total of 107,740, while motor vehicle body and trailer manufacturing (NAICS 3362) 

employed the fewest assemblers with a total of 42,830. The 

wage level for team assemblers did not vary significantly between motor vehicle body and trailer manufacturing and motor vehicle parts manufacturing; however, it was significantly 

lower than motor vehicle manufacturing.

The mean hourly wage and employment counts for team 

assemblers varied widely by State. Delaware paid the highest wage with a mean hourly wage of $17.56, while Michigan placed second on the list paying a mean hourly wage of 

$14.50 and employing a total of 54,110. California employed 

the most team assemblers with 95,710 of these workers.

Some occupations had a greater dispersion of wages than 

others. For instance, the mean hourly wage for electricians 

fluctuated by as much as $11.18 between the three industry 

groups. Conversely, the mean hourly wage for helpers–production workers as well as fiberglass laminators and fabricators 

did not vary significantly between the three industry groups.

Employment concentration between industry groups varied widely by occupation in 2005. Employment for computer-controlled machine tool operators, metal and plastic, was 

heavily weighted towards one industry group, motor vehicle 

parts manufacturing, which employed 14,710 of these workers, or 91 percent of their total in the automobile manufacturing industry. Similarly, employment of electrical and electronic equipment assemblers was not equally divided between 

industry groups. Motor vehicle parts manufacturing (NAICS 

3363) accounted for 8,790 workers, or 88 percent of electrical and electronic equipment assemblers’ employment in the 

automobile manufacturing industry. Employment for industrial engineering technicians was also similarly distributed. 

Motor vehicle parts manufacturing (NAICS 3363) employed 

4,140 technicians, or 82 percent of the auto manufacturing 

workers in this occupation.

Variations existed in the employment and wages of autoworkers across the three industry groups as well as in comparison to cross-industry employment and wages. On average, 
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workers in the automobile manufacturing industry earned a 

wage 11 percent higher than workers doing the same job in 

other industries. However, this increase did not extend to all 

occupations in the industry. Higher skilled occupations were 

often paid less than their cross-industry counterparts, while 

lower skilled occupations received a higher wage than their 

counterparts in other industries. Mean wages also varied, 

sometimes dramatically, in the same occupation across different industry groups. Likewise, employment fluctuations 

were very common within the three industry groups.