Bavarian unemployment rate drops to 3.7%

Bavarian Ministerpräsident, Horst Seehofer, (CSU, Christian Social Union) is very proud of the development of the labour market in Bavaria. With an unemployment rate of only 3.7% in April 2012, Bavaria is in first place out of the 16 German free states. Seehofer said, “even in the fourth year since the start of the global financial and economic crises, Bavarian enterprises have shown how solid, robust and successful they face the challenges of the markets.” The current numbers are an impressive evidence for the dynamic of the Bavarian economy, according to Seehofer.

Also the “Bundesagentur für Arbeit” (Federal Employment Agency) confirms that as the temperatures in Germany are rising, the number of unemployed people in Bavaria keeps falling.

In April 249,517 people were without a job, around 17,000 people less than in March. This makes in total 3.7% – the lowest unemployment rate for the last 20 years. Ralf Holtzwart, chief of the Bundesagentur für Arbeit, leads this back to the remaining good business activity.

The city with the lowest unemployment rate in Bavaria is Eichstätt with only 1.7%, compared to the city of Nuernberg with 8.0%. Nevertheless, the number of unemployed people has declined in all Bavarian counties. The areas of Niederbayern, Oberpfalz, Schwaben and Unterfranken recorded an unemployment rate of only 3.4%.

However, it has to be taken into account that the demand for labour force declined in April. Time will show how this will affect the coming months. Moreover, the number of women employed in April has declined in opposite to the total number.  One reason, according to Ralf Holtzwart, is the insolvency of the drug chain giant „Schlecker“.

The unemployment rate in total Germany has again gone down below 3% during April. Compared to March it has further declined by 65,000 people to 2.96 million. This makes a total difference of 0.2% points and leads to a total unemployment rate of 7.00% in Germany.

It has to be considered that the number has declined due to seasonal affects, however, the general “positive tendencies on the labour market” will remain, according to a spokesman of the Agentur für Arbeit.


8 thoughts on “Bavarian unemployment rate drops to 3.7%

  1. I think it is not such a big surprise that in Bavaria are less people unemployed than in other federal states of Germany. The current numbers result from saisonal effects, of course, but Bavaria has been the most successful federal state in Germany for years. Companies like Siemens, BMW, MAN and Bosch are located there. However, it has to be taken in account that the Minister talked about registered unemployed people, but there are a lot unemployed who are not included in the official statistics like people in measures for further education, in partial retirement or those who received a subsidiy and are trying to get freelance. In addition, Bavaria is the most expensive region in Germany and if people get unemployed they probably leave the region and move to another where it is cheaper.

  2. Its pretty interesting for me to hear that in Germany, Bavaria is the region with the smallest rate of unemployment. I live in Austria, very near to the Bavarian border, and people in my area are thinking about looking for a job and with this moving to Bavaria, because there are a lot of big companies situated, like BMW, MAN, etc.
    As already mentioned there is definitely a number of people in education or partial retirment,… who are not involved in this calculation of unemployement rate, but this is probably the same in every country and it makes it even harder to see the real unemployment rate.

  3. I had to look up where Bavaria is, because I have never heard of it. I think that it is very good that the employment rate has went down. But since summer is coming, I’m wondering if the employment rate is down for the long run or just temporary. I know that there are a lot of season jobs that start around march/april and end in september/october. I’m wondering if that is why the unemployment rate has went down.
    I agree with the spokesman of the Agentur für Arbeit on that part. What I don’t understand is why he says that the positive tendencies on the labour market will remain. Because I think that if the unemployment rate went down because of season labour, the positive tendencies on the labour market will also be temporary and they will not remain.
    Further I think that Ralf Holtzwart is right about one reason why the number of women who were employed has declined. I think that the insolvency of the drug chain Schlecker has a lot to do with it. I remember that it was a really big drug chain that even had stores in the Netherlands. Obviously a lot of people, especially women, lost their job because of the insolvency.

  4. I also think that it is no surprise that the unemployment rate went down in the current weeks. The head of the Bavarian labor market agencies, Ralf Holtzwart is also happy about the current situation on the labor market, the spring recovery and the continued strong economy. The April unemployment rate is approximately 3.7 percent, their lowest level since 20 years ago. Only the demand for labor had declined in April. According to Holtzwart, the market is saturated. This applies particularly to the construction industry and for economic services. Here the new hires were significantly reduced.

  5. I also think, that it’s not such a big surprise, that Bavaria has one of the lowest unemployment rates among the regions in Germany. As already mentioned, one reason is, that Bavaria is an important industry region for germany. For example the area around Munich is one of the most important region for car-production, medias, and tourism. Furthermore I think that especially the economic policy from the last years has led to this positive development concerning the unemployment rate.

  6. It’s good to reed that the unemployment rate is decreasing in this area. But it’s strange that the number of women employed has declined in opposite of the total number. Possible because of insolvency of the drug chain like you say in your post. But I think the crisis is also taking part in this subject. Big companies like Siemens, BMW, MAN and Bosch have a great impact on the labour market. Sometimes big companies like these define the (un)employment rate of a city or region. In this case I think these companies are very important for Bavaria. I think there were more jobs created because of the increasing sales of these companies. The last years many people where fired because of the crisis. I think companies dare to give back jobs again and that this has a positive effect on employment and the labour market.

  7. Undoubtedly such low unemployment rate is a reason for pride. Especially, it is an achievement because of the crisis and the problems in a lot of countries. On the other hand, this fact is not surprising. Germany always distinguished itself from other countries. Moreover, the economic situation in Bavaria also promotes development. In addition, as we all know a lot of young people go to Germany from Spain, Polish, etc. to work, because there is easier to find a job.


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