Labor market in Austria – Ukrainians: Mostly overqualified, low wages

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Displaced persons from Ukraine mainly work in the low-wage sector in this country. Many are also overqualified. This is the conclusion of an analysis by the Vienna Institute for International Economic Comparisons (wiiw). According to this report, the number of working Ukrainians in Austria more than doubled from 5,516 people in February 2022 to 14,157 in February 2023.

According to the analysis, Ukrainians in Austria increasingly work in gastronomy, in the hotel industry, in retail and in building cleaning.

There is a need to catch up on the integration of women in the labor market
A strong employment trend can be observed in particular among the 50 to 59-year-olds, while the group of 30 to 39-year-olds, especially women, is still lagging behind, the wiiw writes. According to the institute, the labor potential in this group is particularly high: nearly 95,000 displaced persons (as of the end of March) were mainly women of working age. Since many of them have come to Austria with children and there is a lack of childcare, the institute criticizes that it is currently difficult for them to start their career.

Moreover, a large proportion of the displaced persons from Ukraine who now work in this country are overqualified for their jobs. They would generally have a high level of education while at the same time being placed in sectors that increasingly offer low-paid jobs. It is true that over-qualification at the beginning of labor market integration is common due to the long time it takes for educational qualifications to be recognised.

Call a politician
In the longer term, however, over-qualification leads to problems because it leads to frustration among those involved and makes their integration more difficult. Politicians must therefore create opportunities that enable them to make full use of their potential, the wiiw demands.

Improved access for Ukrainians to the labor market through change
The amendment to the Labor Code for Foreigners, which came into force in April, has made it easier for Ukrainians displaced by the war to access the labor market. Since then, a work permit from the Public Employment Service (AMS) is no longer necessary, provided that the persons involved are in possession of a displaced person’s identity card.

AMS boss Johannes Kopf recently appealed via Twitter to refugees to contact the employment service to support them in their integration into the labor market.

To this end, about 50,000 displaced persons from Ukraine will be informed by letter about their access to the labor market, Kopf announced on ORF radio on Friday.

Source: Krone

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