Skilled labor collapse

Companies sound the alarm: fewer apprentices than ever before

There are currently fewer apprentices in Austria than ever before.

(Bild: Krone KREATIV/Greiner AG, voestalpine, Spar OÖ)

Qualified skilled workers are in short supply in Austria - and the problem will become even worse in the future with regard to apprentices: This is because the number of young people undergoing training in companies and vocational schools is at an all-time low. There are three reasons for the apprenticeship crisis.

The balance for 2024 is worse than ever before: only 106,452 young people were in apprenticeship training as of 31 December, which is 1814 fewer than at the end of 2023. This continues a long-standing negative trend: in 2010, there were still 129,899 apprentices in Austria. In 1990 there were 145,516 and in 1980 there were almost 200,000. Compared to 1980, there are now almost 90,000 fewer apprentices, a drop of 44.5 percent (see chart).

Significantly fewer new apprentices
The trend for new apprentices is even more worrying: the number of young people in their first year of apprenticeship fell by 5.8% year-on-year to 32,119 new starters as of December 31, 2024. Only in the coronavirus year 2020 was it even lower at 31,969. This is a real problem for our companies. Because when the upturn finally comes after the years of recession, companies will lack the new skilled workers they urgently need.

In terms of sectors, the situation is dramatic almost everywhere: the largest training sector is trade and crafts - and here the total number of apprentices fell from 102,051 to 45,420 between 1980 and 2024. That is a drop of 55.5 percent.

In industry, the number fell by 40.9 percent, from 28,669 apprentices in 1980 to 16,937 in the previous year. Nevertheless, industrial companies have increased the number of apprentices again somewhat since the low point in 2000.

The picture is different in the retail sector, where the decline has been the steepest - and has continued in recent years: in 1980, retail companies still employed 40,536 apprentices, but this figure recently fell to just 13,823 - a drop of no less than 65.9 percent.

In the accommodation and food service sector, the number of apprentices has plummeted by 55% since 1980, from 16,232 at the time to just 7298 at the end of 2024. The lowest point in this sector was during the coronavirus period in 2021 with 6914 apprentices, but since then things have been on a slight upward trend again.

But what are the main reasons for the general lack of apprentices?

1. Demographic shock - we are running out of youth: After the high-birth-rate generations, the children of the low-birth-rate generations are now reaching the age at which apprenticeships are chosen. The average annual number of 15-year-olds in 2024 was just 87,188. In 1980, by contrast, there were still 130,963 15-year-olds - the baby boomer generation, which was still young at the time! Even in 2010, there were still almost 95,000 15-year-olds. Mariana Kühnel, Deputy Secretary General of the Austrian Federal Economic Chamber (WKÖ) and responsible for apprenticeship issues: "Unfortunately, we are currently confronted with the low-birth cohorts who are now reaching the age of vocational training. And a company that would like to train but can't find an apprentice falls out of the statistics."
2. Apprenticeship? No thanks! Of the 15-year-olds we still have in Austria, fewer and fewer are opting for an apprenticeship. In 1980, for example, 47.2 percent - almost half - of young people chose an apprenticeship as their training path, but by 2024 this figure had fallen to just 36.8 percent. This is also a historic low.
3. Companies are giving up - training is becoming a luxury: fewer companies are training apprentices today than in the past. This is due to the difficult economic times. First we had the coronavirus pandemic and now we are already two years into the recession. However, companies are also increasingly complaining that applicants for apprenticeships lack basic skills such as German, math and English. Companies are also increasingly criticizing manners and punctuality. According to surveys, training companies would therefore like to see a quality offensive in schools. Kühnel: "It must be ensured that a young person who finishes school is fit to start a career and has the appropriate basic skills. This is a task for the education system and must not be offloaded onto companies."

Skills shortage as one of the biggest risks
Nevertheless, companies would like to expand their apprenticeship training again. Kühnel: "We urgently need apprentices, they are our skilled workers of tomorrow and an important piece of the puzzle in the fight against the shortage of skilled workers, which remains one of the biggest economic risks for companies."

Mariana Kühnel, apprenticeship expert and Deputy Secretary General of the WKÖ: "We urgently need apprentices!"

(Bild: Studeny Photography)

But apprenticeships are also important for the country as a whole. Kühnel: "Practical training in apprenticeships is essential for Austria as a business location, as a consistently high level of qualification ensures productivity and competitiveness. Smaller companies in particular must therefore continue to be able to train apprentices. The time, personnel and financial costs are particularly high for them and are more likely to increase than decrease due to deficits at school. A consistent reduction in bureaucracy would also help to create more scope for training in companies."

Apprentices are cheaper for the state
According to the WKÖ expert, it is also financially worthwhile for the Republic to promote apprenticeships: "Little known, but highly topical: our training companies help the state to save money. An apprentice in company-based training costs the public sector EUR 7,700 per year - including vocational school costs and all existing apprenticeship subsidies. State expenditure for BMS or BHS students - 12,000 euros - or young people in inter-company training - 23,000 euros - is considerably higher. Vocational training 'made in Austria' therefore brings enormous added value to society. Everyone benefits from supporting apprenticeships: the young people and their families, the companies, the business location and the state!"