Where people are missing

Skills shortage worsens despite the crisis

Fewer and fewer young people are taking up technical professions.

(Bild: Evelyn Hronek)

Austria is experiencing its worst economic downturn for decades and unemployment is rising. Despite this, the shortage of skilled workers is worsening in many companies. 

Over the past ten years, the shortage of workers has even increased significantly in many sectors, according to an analysis by Agenda Austria. The main reason for this is that many trained specialists are retiring with the baby boomer generation, and the popularity of apprenticeships has declined overall: In 1980, for example, there were still around 200,000 apprentices, whereas most recently there were only just over 100,000. "In addition, there is a regional disparity," emphasizes economist Denes Kucsera from the think tank Agenda Austria. Unemployment is traditionally highest in Vienna, while the demand for workers is particularly high in Salzburg, Tyrol and Upper Austria.

Many skilled workers among the baby boomers
AMS boss Johannes Kopf sees this as a "paradox that despite rising unemployment, there is also a shortage of skilled workers." The main reasons are demographics - many retirements - and the decline in working hours. Although Austria is currently experiencing a record number of employees, the number of hours worked has not increased in five years. "The pandemic has pushed many people into part-time work," says Agenda expert Kucsera. When people work fewer hours on average, this further exacerbates the shortage of skilled workers.

Nurses and technicians are in demand
The shortage is great for electricians, for example, with 4638 unemployed people for every 4347 vacancies, a ratio of 1 to 1.07. For technicians (engineers, IT staff, etc.), there are 6318 available unemployed people for every 4914 vacancies. Outside of technology and skilled trades, there is also a shortage of workers in healthcare professions. There are 7323 unemployed people for every 6809 vacancies. The shortage is even more severe in the example of nursing staff: For every 2177 vacancies, there are only 705 unemployed nurses.

(Bild: Krone KREATIV/Stock Adobe)

But where are the solutions to the problem? Demographics will not change any time soon. But politicians still have levers at their disposal. "We need to increase the potential workforce, improve the employment rate for women and integrate refugees into the labor market quickly and sustainably," summarizes AMS Director Kopf. The part-time employment rate in Austria is very high at around 30 percent. According to Kucsera, this is mainly due to the progressive tax system, which means that many people do not earn enough for working overtime. In general, the work factor should be relieved.

Politicians can take countermeasures
However, the lack of childcare options also keeps many women working part-time. Kucsera also calls for the implementation of a degressive unemployment benefit to increase the incentive to take a job. To get a grip on the regional imbalance, a "mobility bonus" could also help by rewarding skilled workers who travel longer distances. In addition, Agenda Austria is once again calling for an increase in the retirement age in order to reduce the number of workers losing their jobs.

We need to increase the potential workforce, improve the employment rate for women and integrate refugees into the labor market quickly and sustainably.

AMS-Chef Johannes Kopf

Bild: APA/EVA MANHART

Kopf also emphasizes that the rapid integration of refugees into the labour market is important. They should learn basic skills such as reading, writing and German. Immigrants should use the time spent waiting for an asylum decision in a meaningful way. 

Red-White-Red Card is in demand
In addition to the integration of refugees, targeted immigration of skilled workers from abroad is also key, says Kucsera. This can alleviate the shortage in many places. In 2024, applications for the Red-White-Red Card increased significantly.