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Munich – a hub of digital skills

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Study by the City of Munich, the Chamber of Industry and Commerce and LinkedIn

(Nov 15, 2018) Munich is more than “just” an economic powerhouse. According to a study by the City of Munich, the Chamber of Industry and Commerce for Munich and Upper Bavaria and LinkedIn, the world's biggest network for professionals, 31 percent of the 662,000 LinkedIn members in and around Munich have professional digital skills or skills as users.

On average, anyone who possesses such skills is four times more in demand than someone who doesn't. The Munich region is clearly also successfully luring bright digital minds away from other large cities. Work nevertheless remains to be done on gender distribution, as women still account for a far smaller proportion of the digital-savvy labor force.

Digital map of the labor market

Referring to the study, Deputy Mayor Josef Schmid, head of the Department of Labor and Economic Development, had this to say: “The Munich region is a pre-eminent hotspot for all matters relating to digitization. Munich's economy has systematically taken on board the digital impetus emanating from its traditionally strong information and communication sector and translated it into innovative products and business fields. All of Munich's key economic sectors are well placed in response to the digital demands of our day.”

LinkedIn's aim with this study was to provide valuable insights into the current dynamics of and trends on the labor market. To this end, the network of professionals took part for the first time in a study in Germany, which it produced in cooperation with the City of Munich and the Chamber of Industry and Commerce for Munich and Upper Bavaria.

The key findings

  • 203,000 LinkedIn members in and around Munich (31 percent of the total) have digital skills on a technical level or as users. An above-average number of employees (39 percent) are in possession of these skills at the six Munich-based companies listed on the DAX index of Germany's top blue-chip companies.
  • Munich is attracting digital skills away from other large cities. Unlike Hamburg, Frankfurt, Cologne and Stuttgart, for example, Munich is witnessing positive net inward migration in terms of professional digital skills.
  • Digitization is permeating many areas of the local economic structure. Digital skills can be found above all in the information and communication sector (e.g. IT, software, telecommunications and media) and in manufacturing (e.g. automotive and other areas of production), but also among freelancers, in the scientific community and in the technical service segment.
  • In 64 percent of all cases were new recruits are taken on, candidates with digital skills are selected. In the past twelve months, demand was especially strong for people with a knowledge of machine learning, programming and/or the ability to develop user interfaces.
  • Fewer women have digital skills. Of the 662,000 LinkedIn members in and around Munich, only 8 percent are women with digital skills as users and 7 percent are women with professional digital skills. Conversely, women with professional digital skills account for an above-average proportion of employees in the healthcare and social welfare sectors, in the arts and entertainment, and in teaching and childcare.

Go here to download the study Digital skills in Munich, 2018 (PDF, 544 KB). (English summary)

Methodology for the Digital skills in Munich study

What digital skills are available? Which ones are in demand? The study answers these and other questions by analyzing the profiles of 662,000 LinkedIn members in anonymized form. It covers the profiles of users who cited “Munich” or a zip code in the Munich region as their location. Reference universe: A total of 1.4 million people are currently in socially insured employment in the Munich region (data from 2017). The study distinguishes between professional digital skills (such as programming and development) and the skills of digital users (such as the ability to handle social media applications).