Trade affected

Weakening economy causes employment to fall

A lot of hope is pinned on the upcoming Christmas business, as far as the currently weakening economy is concerned.

(Bild: Johanna Birbaumer)

The retail sector in Tyrol has been particularly affected by households' reluctance to spend. Insurance companies and banks, on the other hand, are increasing the number of employees.

The ongoing economic weakness is now clearly reflected in the employment statistics. The number of people employed in Tyrol's commercial economy fell from 268,290 in 2023 to 266,042 (0.8%). The retail sector was particularly affected with a decrease of 1080 employees (decline from 50,285 to 49,205). According to the Tyrolean Chamber of Commerce, the marked reluctance of households to spend is particularly noticeable here. The picture is not much different in other economic sectors. For example, employment in industry fell for the second time in a row. While there were still 40,293 employees in 2022, this figure fell to 40,126 in 2023 and 39,954 this year. In comparison: in 2015, 42,524 people were still employed in industry.

Fewer jobs in trade and crafts too
There was also a drop in employment in the trade and crafts sector of 849 employees compared to 2023 (decline from 69,555 to 68,705, which corresponds to a decrease of 1.2%). "These figures clearly show the decline in the (international) competitiveness of the manufacturing sector in Tyrol due to the high energy and labor costs in recent years," says Stefan Garbislander, Head of Economic Policy at the WK Tirol.

These figures clearly demonstrate the decline in the (international) competitiveness of the manufacturing sector in Tyrol due to the high energy and labor costs in recent years.

Stefan Garbislander, Leiter Wirtschaftspolitik in der WK Tirol

There has also been a decline in employment in the tourism and leisure industry. There was a decrease of 432 employees (-0.7 %). However, it should be noted that employment in this sector has risen by 8,000 jobs compared to 2015 (from 50,800 to 58,864 as at 31 July 2024).

On the other hand, two areas stand out positively: Banks and insurance companies saw an increase of 259 employees to 7790 compared to 2023, while the information and consulting sector saw a slight increase of 174 employees (from 16,991 to 17,165).

The majority of all companies in Tyrol are one-person businesses
The total number of businesses in Tyrol also fell compared to the previous year: from 51,227 to 51,118 companies (a decrease of 0.3%). The majority of businesses are so-called one-person businesses (EPU), of which there are 29,614 in total (57.9%). And: 115 commercial businesses in Tyrol have more than 250 employees (2023: 117 businesses).