Few unemployed

Tyrolean economy in the black, but not all rosy

Economic growth in Tyrol is low, but positive.

(Bild: Christof Birbaumer)

Economic growth in Tyrol is low, but still positive: despite a shortage of labor and high inflation, the figures are in the black! The Chamber of Labor is concerned about the rise in youth unemployment and low wages for women.

The state of Tyrol has now presented the Tyrolean Economic and Labor Market Report 2024, which takes a close look at past developments - especially in 2023. The general tenor is: Tirol can be satisfied. And this year, the economy is once again growing overall.

To summarize: Tirol stands on stable pillars and is doing all it can to overcome the current challenges.

LH Anton Mattle (ÖVP)

Bild: Johanna Birbaumer

Several challenges
"We are still facing a shortage of labor and skilled workers, high non-wage labor costs and challenging commodity prices. Nevertheless, we can expect low, but at least positive economic growth. Positive growth impetus is currently coming from the information and consulting sectors and, above all, tourism. We have the strongest tourism sector in Austria. To summarize: Tyrol stands on stable pillars and is doing all it can to overcome the current challenges," said LH Anton Mattle (ÖVP) with conviction. The report will be submitted to the provincial parliament for discussion and resolution.

(Bild: Krone KREATIV/stock.adobe)

Warning against "overtourism" over
Whereas before and during the pandemic there were warnings about so-called "overtourism", i.e. too much tourism, we no longer hear anything about it these days. "Summer tourism is becoming increasingly relevant and many businesses are pushing for year-round tourism, which can also achieve greater safety and job stability," says Mattle. Most tourists still come from Germany, accounting for almost 60 percent of foreign summer visitors.

Female start-up founders

21.3 percent of start-ups in Tirol were founded by women. This is an above-average number, as can be read in the Tyrolean Economic and Labor Market Report. "Above average" in this case means not even a quarter of start-ups. A total of 3342 start-ups were founded last year.

Leading the way in Austria in the life sciences sector
The number of companies also increased - by 1.7 percent. Almost 70 percent of these are sole proprietorships. With 16 percent of all start-ups in the life sciences sector, Tyrol is the leader in Austria. Nationwide, the figure is only 13 percent.

Tyrol has a particular problem with women's incomes - and this applies to all forms of work, even with full-time, year-round employment. Here we are even in last place compared to the rest of Austria.

Tiroler AK Präsident Erwin Zangerl

Economy wins, but more and more people at risk of poverty
The Tyrolean Chamber of Labor does not see the situation quite as rosy, even though it considers the unemployment figures to be extremely positive. "However, we must not ignore the fact that youth unemployment is on the rise, which is never a good sign," AK President Erwin Zangerl comments on the economic report. "In addition, Tyrol is still lagging far behind in terms of income and has a problem with women's incomes in particular - and this applies to all forms of work, even with full employment all year round. Here we are even in last place compared to the rest of Austria."

Tyrolean AK President Erwin Zangerl

(Bild: Birbaumer Christof)

Earn little - live expensively: Tyrol is top of the league when it comes to the cost of living, so employees are still struggling with inflation, as Zangerl explains. "The increasing number of people at risk of poverty and those who cannot make ends meet despite having a job also show that there are problems," concludes Zangerl and warns against resting on the laurels of Tyrol's comparatively low unemployment rate.