Unemployment is rising in the Allgäu: economic shock hits the region!

The economic situation in the Allgäu will show a worrying development in 2024. Loud Mercury Unemployment figures rose slightly in the region, which can be attributed to an overall weakening German economy. Maria Amtmann, head of the Kempten-Memmingen employment agency, provided the latest statistics on the labor market.

The average unemployment rate for 2024 was 2.9 percent, 0.2 percentage points higher than in the previous year. An average of 11,592 people were registered as unemployed in the agency district, which is around 900 more than in 2023. In addition, the number of jobs fell by around 800 jobs to around 6,900 reported jobs. This development is accompanied by a moderate increase in the number of employees subject to social insurance contributions, especially in the part-time sector, with the increase predominantly affecting foreign nationals.

Causes for the developments

The rise in unemployment is attributed to several factors. According to the Allgäu hit The key causes are a weak economy, an ongoing crisis in the automotive industry and a noticeable decline in consumption among the population. In addition, an acute shortage of skilled workers made it difficult for unemployment to rise sharply.

In the area of ​​active labor market policy, an average of 4,600 people were in corresponding measures over the course of the year, which corresponds to an increase of around 500 compared to the previous year. The employment agency reported a moderate overall development in the number of employees subject to social insurance contributions in 2024, with an increase of 3,325 people, most of whom work part-time. Nevertheless, the number of jobs fell to 6,911, approximately 800 fewer than in 2023.

Although the situation remains tense, a wave of insolvencies in the Bavarian Allgäu region was largely avoided, although a slight increase in insolvencies was nevertheless recorded. The employment agency paid around 6.5 million euros in insolvency money in 2024, which represents a significant increase compared to 2.3 million euros in the previous year.