The terrible real estate prices in Salzburg are also a reason for many vacancies. Waiter, nurse and saleswoman: Especially in the low-wage sector, it is difficult to attract new staff to the state due to expensive rents.
It is not only Salzburg residents who do not own property who suffer from high housing costs. This is evident from research by the economic research institute WIFO on behalf of the Chamber of Labour. Gruesome prices in the real estate sector, which also includes rental prices, have a double or triple negative impact on the local business location.
This starts with the fact that many businesses in the state are desperate for new employees. They prefer not to choose Salzburg and opt for Upper Austria or Carinthia, because the rent consumes less of their salary. In contrast, companies can rarely afford to dampen housing costs through salary increases.
“The vacancy level in Salzburg has been higher than average for years,” says study author Michael Klien. “In addition to housing and catering, this applies to retail, healthcare and social services. A labor shortage in these sectors is consistent with the expectation that employees in low-wage sectors in particular have difficulty bearing the high housing costs in Salzburg. Nurse, waiter and saleswoman: these jobs make things even worse.
Vacancy slows down growth. But these problems and the high housing costs also cause problems in other areas. “Measured by common indicators such as the number of start-ups, business fluctuations or the share of fast-growing companies, business dynamics in Salzburg are below average,” adds housing expert Klien.V.Snobe.
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.
