Undeclared work as a trivial crime: two-thirds of the Austrian population share this view. This means that approvals have increased by 3 percentage points since 2021. The demand for bunglers is high – precisely because of the crisis and inflation, a sharp increase in the shadow economy should be expected in the coming year.
Bunglers are primarily used in and around the house or apartment. The current study by Friedrich Schneider, a professor at Johannes Kepler University in Linz, found that undeclared workers would continue to be used primarily for electronic work (20 percent), cars (20 percent), and beauty care and massage (15 percent). But odd jobs in the garden and tutoring are also popular.
Nominal increase of EUR 900 million
Two-thirds of the population have the impression that, especially during the crisis, many things can no longer be afforded without undeclared work. As real incomes have fallen due to high inflation and high energy costs, according to Schneider, a strong increase in the shadow economy can be expected for the current year. Therefore, according to his forecast, it will rise this year by a nominal 3.2 percent or 900 million euros to 28.72 billion euros.
Confidence in state institutions has also fallen with the crisis. Because only 43 percent are satisfied with the goods and services offered by the federal government. In the polls of previous years, this was still 70 percent of the respondents.
In one-tenth of households, at least one person is engaged in tampering. The average hourly wage is estimated at 20 euros. 66 percent of the bunglers are also officially employed. About 16 percent went to organized crime and 17 percent to early retirees and the unemployed. But 40 percent of undeclared work would not be a question, according to the investigation into official rates. And 25 percent of this work would otherwise be done yourself.
containment measures
In addition to increased penalties, Friedrich Schneider recommends incentive-based measures to curb undeclared work. By abolishing the cold progression, he expects tampering to be reduced by 700 million euros a year. Introducing a tax deductibility for household services and household investments of up to around 2,000 euros would reduce tampering by another 800 million euros.
The shadow economy can also be curbed by reducing non-wage labor costs. Another measure would be to deny companies access to public contracts for several years if they work or have them work illegally.
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.
