In trade and craft, both orders and staff are running out. That said Christina Enichlmair of KMU Forschung Austria on Thursday. The situation is particularly bad in construction and related professions.
These companies would feel the slump in private housing, said Renate Scheichelbauer-Schuster, chairman of the Federal Department of Trade and Crafts in the Austrian Economic Chamber (WKO). The consumer-related areas such as the health professions, automotive engineering or hairdressing would in turn suffer from the fact that many consumers are saving. “Not only has normality not returned, but crisis mode has also returned,” Enichlmair said at a news conference.
Energy-intensive sectors such as bakeries – with a 200 percent increase in energy costs – as well as trade and commerce are particularly affected by the crisis. “A carpenter who usually has 30 or 40 orders at that time has nothing now,” Renate Scheichelbauer-Schuster gave as an example. If you still have orders, please complete previous orders. “What we’re seeing now is no future orders coming.” While the economy was still good in 2021 and early 2022, the tide turned with the outbreak of war in Ukraine.
60,000 to 70,000 skilled workers are missing
Another problem is the shortage of skilled workers. According to calculations by KMU Forschung Austria, there is a shortage of 60,000 to 70,000 skilled workers in trade and commerce. According to Scheichelbauer-Schuster, the announced abolition of the blocked exit scheme will provide relief, as older employees will stay in work longer in this way. Students are currently being sought in all sectors. The crafts and crafts sector currently has about 47,000 apprentices, which is half of all Austrian apprentices.
Process the energy cost subsidy quickly
To help the affected companies, the industry representatives are calling for a quick and unbureaucratic processing of the energy cost subsidy and for extended working capital loan guarantees until the end of 2023. The federal spokeswoman for the green economy, Sabine Jungwirth, subsequently recalled in a broadcast that it was still not possible for smaller companies to benefit from energy cost subsidies. “The Federal Ministry of Economics clearly believes that the Austrian economy consists only of industrial companies and large companies,” she criticized.
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.
