Skilled Labor Shortages: The Bavarian Case

The region of Bavaria is known as a powerhouse in Europe. Its recent economic history is characterized by innovation, steady growth, high wealth generation, and low unemployment rates. The abundance and continuous availability of low- and high-skilled labor due to good educational infrastructure and thoughtful policymaking have been a keystone for this development. However, different issues in the educational systems, as for example the decreasing attractiveness of apprenticeships, and the demographic change slowly deprive the region of this great competitive advantage. The problem of skilled labor shortage in Bavaria is a serious long-term threat to economic performance and therefore needs to be addressed in several ways. This essay considers policies addressing the educational system, labor market mismatches, as well as the demographic change. We propose strategies like increasing the potential workforce through the integration of immigrants, low-educated and older people, and qualifying them adequately through apprenticeships and education programs.