Self-employment is an important path to employment for migrants in Austria. This is the conclusion of a study by the IHS commissioned by the Integration Fund (OeIF). Migrants often fall back on informal networks of people of the same origin when starting a business.
Since they employ an average of three to four people, often acquaintances and relatives, the “domino effect” makes a major contribution to the labor market, says Julia Rothbauer of the OeIF.
A downside, however, is that this “migrant economy” is more common than average in sectors with precarious working conditions, explains Rothbauer, head of the OeIF’s knowledge management team. At the same time, it is clear that migration and thus the migrant economy mainly takes place in urban areas – 40 percent of foreign-born self-employed people in Austria (including helping relatives) work in Vienna.
Clusters in sectors depending on origin
The IHS study focused on foreign-born people. This shows that there are cumulations by origin in certain sectors. For example, people from China are strongly represented in gastronomy, but gastronomy is also much more relevant for groups with Turkish, Syrian, Thai or Maghrebi origins. People from the former Yugoslavia and Eastern Europe, but also from Turkey, often work independently in construction.
There are hardly any other legal acquisition options
Postal and courier services are highly valued by people from Asia or Africa, especially from India, Egypt or Afghanistan. “Against the background of the low educational attainment of these groups, it can be assumed that this is precarious bogus self-employment,” notes the IHS. It can be assumed that these people have hardly any other legal employment opportunities. On the other hand, people from Turkey and ex-Yugoslavia are more often than average taxi drivers. Some sectors, such as the hotel industry or agriculture, play virtually no role for migrants.
Use official support offers
The results of the study will feed into OeIF’s operational work, says Rothbauer. For example, if you can increase the use of official support offers. But you always have to accept a ‘certain vagueness’ in such a study. About 16 percent of employees in Austria were born outside the country and just over 80,000 people fall into this category. Half of them come from EU and EFTA countries.
Putting everyone in one pot doesn’t work
Although more migrants than Austrians have a lower final diploma, on the other hand there is also a group of people with an above-average education. Throwing everything in one pot doesn’t work.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
