The Munich labor market

Current developments

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.

Good labor market figures keep Munich out in front in statistical comparisons of Germany's major cities. Munich and Stuttgart are the two German cities of more than 600,000 people with the lowest unemployment rates. In 2021, the figure ranged 4.5 % for the Munich branch of the Federal Employment Agency.

Rising employment

Munich's population is growing. At the same time, the city's employment figures too are plotting a positive graph, barely showing any pandemic effects. On average for the whole of 2021, a new record figure of 908,457 people were employed in socially insured jobs in Munich. Overall, in 2021 the number of employees registered for social insurance showed a year-on-year increase of 1.2 %.

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 until the pandemic for more than 17 years. Since the last population forecast in 2013, the number of residents was growing 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 2021, most new jobs were created in the 'information and communication' sector (+ 22 223 new jobs). Next came 'corporate services' (all in all + 19 530 new jobs) with 'legal and tax advice, auditing and business consulting' making a particularly notable contribution of 19.9% . More than ever, also boosted by pandemic needs, 'healthcare and social services' experienced rising demand for labor and saw a 11 % increase in employment (10 682 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.

Trend

The effects of the coronavirus pandemic still compromised economic life in Munich, too. Infrastructure establishments such as Munich Messe and Airport have been particularly hard hit in terms of both business and income. The 2021 impact was  also still visible in tourism.

However, there are some positive trends to report. Munich’s strength is not limited to the services sector, but can also be found in manufacturing and especially in the innovative and dynamic sectors focused on digitalisation and innovation. This is also reflected in the strong development of Munich’s start-up and entrepreneurial scene as well as the major investment over the last year in Munich’s young high-tech companies.

Status: 4/2022