The Munich labor market
Companies of all shapes and sizes across a broad spread of industries combine with close links between high-tech businesses and manufacturing operations to create what has become known as the unique “Munich mix”. This mix is instrumental in making the Bavarian capital one of the most stable business hubs in Germany.
Very impressive labor market figures keep Munich out in front in statistical comparisons of Germany's major cities. No other city of more than 600,000 people has a lower unemployment rate. In 2019, the figure ranged as low as 3.3 % for the Munich branch of the Federal Employment Agency.
Munich's population is growing. At the same time, the city's employment figures too are plotting an extremely positive graph. On average for the whole of 2019, a new record figure of 897,140 people were employed in socially insured jobs in Munich. Overall, in 2019 the number of employees registered for social insurance was up by about 23,000 in Munich, a year-on-year increase of 2.6 %.
A population of 1.56 million makes Munich Germany's third-largest city, after Hamburg and Berlin. Munich is already Germany's second largest venue for employment. Munich's current growth phase has continued unbroken for more than 17 years. Since the last population forecast in 2013, the number of residents has grown by around 30,000 per annum. In the process, Munich is becoming more cosmopolitan and the proportion of young people is increasing.
Industries and demand
In absolute terms in 2019, most new jobs were created in the service sector (+23,041 jobs), with 'Freelance, scientific and technical services' making a particularly notable contribution of + 3.1 % (4,073 new jobs). Overall the 'information and communication' sector delivered the largest growth (+ 5,555 new jobs: Again also 'healthcare and social services' experienced rising demand for labor and saw a 2.4 % increase in employment (2,364 jobs).
As in the preceding years, the Munich labor market remained very dynamic. According to data from the Federal Employment Agency, demand continued to be especially strong in MINT jobs (Mathematics, Information Technology, Natural and Technical Sciences), in manufacturing, retail, healthcare and social services.
The effects of the coronavirus pandemic have seriously compromised economic life in Munich, too. Many companies have switched to short-time working or announced redundancies. It is therefore almost impossible to predict how the unemployment rate will evolve in 2020.
The economic effects vary greatly from sector to sector. In Munich the catering and manufacturing industries, the retail and culture sectors and the creative economy have been particularly badly hit, while other economic sectors have reported only mild or even positive effects.