IV President calls for:

“Pay more into the social security system with part-time work”

IV President Georg Knill

(Bild: APA/GEORG HOCHMUTH)

In view of falling working hours and productivity, the volume of work must be increased rather than reduced, IV President Georg Knill demands. Those who voluntarily work part-time should make higher contributions to the social security system.

The shortage of skilled workers and labor is a major problem throughout Europe, said Knill. In Austria, it is exacerbated by the particularly high part-time rate. "There have been one million more people working in Austria in recent years and we are working less overall," explained Knill on Tuesday evening in the "C3 Business Talk". "Of the four million salaried employees in Austria, 30 percent work part-time." Of these, 60 percent are women. At the same time, the costs for pensions, health and care are rising. Anyone who says, like SPÖ leader Andreas Babler, that we can afford this welfare state with less work is a "fairy tale uncle", said Knill.

Anyone who says, like SPÖ leader Andreas Babler, that we can afford this welfare state with less work is a fairy tale uncle.

IV-Präsident Georg Knill

"In Austria, the number of working hours per employee has fallen sharply in recent years - from 2015 to 2023, these working hours fell from 1,520 to 1,448." The volume of work therefore urgently needs to be increased.

30 minutes of extra work per day for economic growth
According to a study by EcoAustria, which was commissioned by the Federation of Austrian Industries, an extra half hour of work per day in Austria would lead to economic growth of 1.2 percent per year. This measure alone could double economic growth in Austria. Annual taxes would therefore increase by two billion. This could employ 30,000 people, for example in childcare or nursing, argues Knill.

Europe is falling behind
However, Europe has even more problems that are causing the EU to fall further and further behind in international competition, said Knill. These include "home-made issues" such as over-regulation and bureaucratic requirements, high energy, labor and capital costs as well as long approval procedures.

Europe must be active and self-confident externally and expand trade agreements with partner countries and regions. Foreign trade policy must also be viewed from a security policy perspective. Europe must be able to defend itself in order to maintain the European models of democracy and prosperity. The European single market must be strengthened and trade barriers removed. This includes the simplification of cross-border services and the establishment of a genuine capital markets union.

Investing in AI, rethinking the climate crisis
IV Secretary General Christoph Neumayer called for a massive increase in investment in the future topic of artificial intelligence. "Our recommendation in this context is that the 10th EU research funding program be increased by around 100 billion euros, i.e. from 100 billion to 200 billion euros."

The energy crisis has not been handled as well in the EU as the coronavirus crisis. The separation of the electricity price zone from Germany alone is costing Austria two billion euros a year. Unfair practices such as the gas storage levy in Germany and Italy must be stopped.

Nevertheless, the EU is a success story and Austria as an export nation would be inconceivable without the EU, emphasized Knill.