Despite cuts

Job market soaks up the unemployed like a sponge

Difficult: The industry is in recession.

(Bild: Wenzel Markus)

From Fronius to Hammerer Aluminum Industries to KTM: Large companies in Upper Austria are increasingly cutting back on staff, with hundreds of employees having to leave. These cuts in personnel are not currently a cause for concern for Markus Achleitner, the Provincial Councillor for Economic Affairs.

Fronius is cutting a total of 1000 employees in Upper Austria, the Czech Republic and Germany; Hammerer Aluminum Industries cut 250 jobs this year; motorcycle manufacturer KTM cut around 500 employees and relocated parts of its production to Asia - the reports of the last few weeks and months have already set alarm bells ringing for some.

We used to have exploding unemployment figures when there was zero growth or a recession. Now this is partly being offset by demographic trends. That should not be overlooked.

Markus Achleitner, Oberösterreichs Wirtschaftslandesrat

Bild: Land OÖ/Daniela Sternberger

Markus Achleitner is less concerned. "Due to the economic situation, overcapacities in the workforce that were built up during the boom years are being reduced again here and there," says the ÖVP Economic Councillor on the developments.

"More uncertain than ever"
It is normal for there to be a phase of economic dip after a boom. "The only question is how long this period will last - that is as uncertain as it rarely is," he confirms.

It has become difficult for companies to access short-time working, which makes cuts almost inevitable. Do adjustments need to be made here? Achleitner says: "The labor market is like a dry sponge. If 100 or 200 people enter the labor market, they are immediately taken up again by others."

Forecast horizon extended to 2040
Together with the WifOR Institute in Darmstadt, the Business Upper Austria location agency presented the update of the Skilled Labor Monitor for Upper Austria on Wednesday. The forecast horizon has been extended to 2040. Conclusion: In 16 years, there will be a shortage of around 151,000 skilled workers in Upper Austria if countermeasures are not taken in time.