Industry's call for help

Permanent recession: companies expect job cuts

The industry is feeling the effects of the ongoing recession - many companies are expecting to have to cut jobs.

(Bild: Krone KREATIV/stock.adobe.com/KerkezPhotography.com)

There has been no recovery in Carinthian industry for three and a half years. The recession is taking its toll on companies. In a survey, more than half expect to have to cut jobs.

"The situation in Austrian industry is serious," says Timo Springer, President of the Federation of Austrian Industries (IV), and warns: "Production is shrinking and more and more companies are relocating abroad. As a result, the country is losing industrial added value and technical expertise." Many Carinthian industrial companies that took part in an IV survey seem to share this assessment.

57 percent expect fewer employees
22,000 people are employed by the 61 participating companies; how many of them will still have their jobs at the end of the year is currently up in the air. "What is more than worrying is that 57% of companies in Carinthia are already predicting a decrease in the number of employees in the coming months," says Springer. Not a single company wants to take on more staff, while 43 percent expect to at least be able to maintain the number of employees.

High costs for personnel and energy, strict regulation and locational disadvantages are weighing heavily on companies, especially in energy-intensive sectors.

Timo Springer, IV-Präsident

Bild: Helge Bauer

And companies are not particularly hopeful when it comes to the coming months - more than half doubt that the situation will improve noticeably. "The economy continues to stagnate. This is clearly reflected in the companies' assessment of the business situation, earnings situation and order backlog," explains IV Managing Director Claudia Mischensky. "However, this does not contradict the fact that companies are continuing to make intensive efforts to recruit the employees of the future. And these are primarily the apprentices."

With a view to a new federal government, Springer demands: "It must make decisions that strengthen Austria and secure the basis for prosperity and stability. The industry is ready to make its contribution. But it needs a policy capable of taking action."