The economy of Nuremberg

Nuremberg is the second-largest city in Bavaria after Munich. According to the population register in December 2021 530,222 people had a registered main residence in Nuremberg. Within the last two Corona years, Nuremberg’s population has thus declined by 1.1%. The main reason for this is the Corona pandemic. Since October 2021, the number of inhabitants has been increasing significantly again. According to the Nuremberg and Fürth Statistical Information System, about 32.000 people moved away from Nuremberg in the year 2021.

Nuremberg was ranked among the top 25 cities with the best quality of life worldwide in a study (Worldwide Quality of Living Survey) conducted by the consulting firm Mercer, and was ranked sixth among German cities in 2010.

The overall quality of living and satisfaction of the population is continually determined every three years in most German cities. The last survey took place in 2019 with over 1,000 participants. More than 80% of all attendees from Nuremberg were satisfied with the public areas such as markets, squares, and pedestrian zones in their city. The condition of roads and buildings as well as public transport performed better than the average German city. While the job market situation seems to be above average, the residential market situation was rated rather moderately with over 40% of the attendees agreeing to property affordability being one of the biggest problems the city is facing.  Property prices in Nuremberg vary immensely, a square meter in an apartment in the district Marienberg costs over EUR 8,600.00 while Kornburg is just under EUR 3,000.00 per m². Real estate prices for houses are cheaper with EUR 4,000.00 – 5,600.00 per m², but less frequently found.

2021 had a positive employment trend in Nuremberg. Employment increased by 1% compared to the previous year but was still below the average German employment trend. At the end of 2021, the employment agency had 6,914 vacancies to record, 42.2% more than the year before.

In December 2019, before the pandemic, the unemployment rate was 4.9% – the lowest value in 28 years. In the meantime, the figure has almost fallen to pre-crisis levels. In December 2021 there were 15,991 people in Nuremberg registered as unemployed – this corresponds to an employment rate of 5.3%.

Nuremberg generates a disproportionately high gross domestic product (GDP) for its size. A balanced mix of the economic sectors gives Nuremberg’s economic stability. Both the manufacturing industry, the business-related service providers (financial management, insurance, and real estate), and the other service industries are important pillars of local value creation. In recent years, important impulses and increasing contributions to growth have been provided by the information and communications industry.

Trade tax income is highly cyclical dependent. Due to the Corona pandemic, there was a sharp decline in business tax revenues. Meanwhile, the current trade tax target has exceeded the level prior to the outbreak of the Corona pandemic (EUR 550 million in Nuremberg).

Nuremberg is a high-tech, industrial and innovative service location. The entire region is one of the most dynamic high-tech centres in Europe and it continues to develop into an innovation capital for future technologies and research & development.

 

This article was written by Magdalena Szabo, a German apprentice studying Business Administration.

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