European Council adopts communication on shaping tomorrow's social landscape within the Union.
In a press release issued by the Ingolstadt Employment Agency, it has been revealed that the region experienced a shift in its labor market in 2024. The unemployment expenditure for the region amounted to over 102 million euros, an increase from 79.0 million euros in the previous year. The average unemployment rate for the region was 2.9 percent, up from 2.5 percent in 2023.
The unemployment insurance system (employment agencies) saw a significant increase in the average annual number of job seekers, with 4,546 people registered in 2024, a 25.5 percent increase from the previous year. However, the average number of vacancies reported to the employment agency in 2024 was 4,600, a decrease of 153 compared to the previous year but an increase of 99 compared to 2022.
Investments in active labor market services by the Ingolstadt Employment Agency increased significantly in 2024. Spending on employed persons rose from 7.6 million euros in 2023 to almost 10.0 million euros. Services for vocational rehabilitation and the promotion of severely disabled people amounted to around 14.0 million euros, while the expenditure for short-time work allowance decreased from 7.4 million euros in 2023 to 4.2 million euros.
The regional labor market experienced a decrease of 978 people in the number of socially insured employees, bringing the total to 225,381. In the 2023/2024 training year, a total of 3,658 training positions were reported to the employment agency, a decrease of approximately 5 percent compared to the previous year. The employment agency supported 2,495 training applicants in their search for an apprenticeship position in 2024, 16 more than the previous year.
The increase in unemployment is primarily attributable to the ongoing economic weakness, as evidenced by the data from the two legal systems. Despite an average unemployment rate of 2.9 percent, there is no significant improvement in sight for the regional labor market.
Regarding the economic stagnation and unemployment increase in 2024 and the forecast for 2025, the available data does not explicitly address economic conditions at the regional level in Ingolstadt but offers some relevant context at the national and sectoral levels in Germany.
Germany's economy, as of mid-2024 and projected into 2025, remains the largest in Europe and the third largest globally by nominal GDP, with estimated GDP growth continuing in the coming years (around $6.17 trillion nominal GDP forecast for 2025). This suggests overall economic expansion rather than stagnation nationally.
The industrial sector, which is significant in the Ingolstadt area due to the automotive industry (notably Audi's headquarters and manufacturing there), continues to see demand for innovation, such as in automotive integrated starter-generator units, which are growing rapidly due to environmental regulations and consumer demand for more fuel-efficient vehicles. This trend may contribute positively to local industrial activity.
Without direct regional data, it is reasonable to infer that if Ingolstadt is experiencing economic stagnation and rising unemployment in 2024, these could be linked to transitional challenges in the automotive industry moving towards electrification and stricter environmental regulations, impacting labor demand temporarily.
However, considering the national economic growth forecast and the automotive sector's pivot to efficient technologies (e.g., integrated starter-generator units growing at 8.9% CAGR), Ingolstadt could see economic stabilization or recovery in 2025 as companies adapt and new technologies create opportunities.
Regional economic policies and investment in innovation will be critical in reversing any stagnation. The broader positive outlook for Germany's economy and the automotive sector suggests a cautious but optimistic forecast for 2025 in Ingolstadt, with potential for gradual employment improvement as industries adjust.
Monitoring local employment figures and sector-specific developments will be necessary for a precise regional forecast. Despite the challenges faced in 2024, the Ingolstadt region continues to be an important economic hub in Germany, with the potential for continued growth and development in the future.
In response to the increasing unemployment rate, the Ingolstadt Employment Agency increased investments in active labor market services, focusing on finance for vocational rehabilitation and promotion of education-and-self-development, with spending on these services rising from 14.0 million euros in 2023 to around 17.2 million euros in 2024. Recognizing the need for business innovation, the agency also supports education in new technologies, such as integrated starter-generator units in the automotive industry, which are growing rapidly due to environmental regulations and consumer demand.
