Foreign students

Every second graduate leaves Austria again

After graduation, many are moving back home.

(Bild: APA/dpa/Fabian Stratenschulte)

Every year, thousands of foreign students graduate from an Austrian university. However, almost half of them leave our country again after less than a year - in view of the shortage of employees in many companies, the location is missing out on numerous skilled workers.

Despite the economic downturn and a drop in orders, there is still a shortage of employees in many areas. More than 80 percent of Austrian companies are affected by the shortage of skilled workers, according to the Chamber of Commerce's new labor radar. 

193,000 vacancies unfilled across Austria
There is currently a shortage of 193,000 employees across Austria, with the greatest shortage in the tourism, trade and transport sectors. The majority of job advertisements are aimed at people with an apprenticeship qualification. In addition, more than half of the entrepreneurs surveyed stated that they would like to train more apprentices, also in order to keep them in the company in the long term. However, there is often a lack of suitable applicants. But it is not just apprentices who are in short supply; the Austrian economy is also missing out on a lot of talented university graduates.

Of the 16,000 students who graduated in 2021, almost half returned to their home country after less than a year.

(Bild: APA/Helmut Fohringer)

Foreign graduates are particularly noticeable here, as a special analysis by Statistics Austria shows that of the 16,000 or so international graduates in 2020/21, almost half (46%) left Austria again within 12 months. These are, of course, those who completed their studies in Austria; Erasmus students, who naturally leave after their studies, are not included.

The healthcare sector is missing out on a particularly large number of graduates
Among graduates, the drop-out rate is particularly high in subjects such as natural sciences, health or business and law. Over 50 percent of science students leave the country less than a year after graduating (see chart). The situation is similar for students from the health and social services sector, where 51% also return home within a year. The rate of departure is lower in education and computer science, where only between 30 and 40 percent leave within a year.

Among international students, there is a potential for the labor market that has been largely overlooked to date.

Karlheinz Kopf, Generalsekretär der Wirtschaftskammer

Bild: APA/Georg Hochmuth

In terms of countries of origin, it is evident that students from outside Europe in particular usually leave Austria again, whereas people from European third countries (e.g. the Western Balkans) stay here for longer. Frequent reasons for turning their backs on the university location are language and cultural barriers on the one hand, but also a lack of prospects on the other. The Chamber of Commerce is therefore calling for better identification of potential on the Austrian labor market.

34,000 additional skilled workers by 2040
Karlheinz Kopf, Secretary General of the Chamber of Commerce, calculates: "If we manage to target this previously forgotten potential and inspire an additional 2,000 graduates a year to stay and work in Austria, we could gain a total of 34,000 additional skilled workers by 2040."

(Bild: Krone KREATIV)

This would also have an economic impact. University education costs the state a great deal of money every year, but this money should then flow back into the country from high-earning graduates. If students leave Austria again in large numbers after graduation, the public sector will not get off easy.

The lack of employees is already having a direct impact on companies. Around 80 percent of company bosses see additional burdens for themselves and their employees due to the shortage. The cost of recruiting staff is also increasing. Despite the economic downturn, 56% still state that they are unable to accept orders due to the shortage of skilled workers, resulting in a drop in turnover.

Entrepreneurs want more incentives to work
According to the Chamber of Commerce, there are many recipes to combat the shortage. Most entrepreneurs would like to see more incentives for the unemployed to accept employment and to make full-time work more attractive. Seven out of ten entrepreneurs are also in favor of improving apprenticeship training.

Karlheinz Kopf appeals: "We urgently need to stop and reverse the trend towards fewer and fewer jobs." Two thirds of entrepreneurs even state that they believe the shortage will worsen in the coming years. Baby boomers are gradually retiring and the balance on the labor market is in danger.