The economy is failing to get going – and the consequences for the labor market are devastating: according to a current survey, around one in five medium-sized companies plan to cut jobs in the next six months. At the same time, companies have a shortage of highly educated qualified workers.
According to the latest survey by consultancy EY among 500 domestic mid-sized companies with 30 to 2,000 employees, the outlook for the labor market remains bleak, with 18 percent of companies saying they will have to cut jobs in the next six months. This share was only higher in early 2009, at the height of the global financial and economic crisis.
One of the weakest developments in recent years
The bottom line is that companies surveyed plan to reduce their workforce by 3.5 percent over the next six months. This is also one of the weakest developments in recent years.
The prospects are particularly poor in Carinthia, where 23 percent of companies want to cut jobs. In Lower Austria, Upper Austria and Salzburg this is 21 percent, in Burgenland 19 percent and in Styria 17 percent. The situation is relatively best in Vienna and Vorarlberg, where “only” 14 percent of companies plan to cut jobs.
Companies in Vienna are the most likely to be optimistic
After all, 23 percent of companies across Austria plan to hire new staff in the next six months. Here too, companies in Vienna are the most optimistic, followed by companies from Styria and Tyrol. Burgenland comes last, where only 14 percent of companies expect to create more jobs.
Paradoxically, at the same time, companies are suffering from a huge shortage of qualified specialists: two-thirds of companies still consider the shortage of skilled workers as the biggest risk to their own growth. 71 percent find it difficult to find suitable staff. And a third of Austrian companies are already losing turnover due to a lack of employees. There are vacancies at every second medium-sized company.
The shortage of skilled workers is most worrying in Carinthia and Burgenland
According to the research, companies in Carinthia and Burgenland have the greatest problems recruiting skilled personnel. In Vorarlberg, companies find it relatively easiest to find new and suitable staff.
Too few applicants want to work full-time
The companies surveyed said that the main reason for the shortage of skilled workers in Austrian companies was the lack of willingness among applicants or employees to work full-time (61 percent).
From a business perspective, the second most important reason is demographic change or the aging of the population (39 percent). According to companies, the lack of training and qualifications of applicants is also a cause of the shortage of skilled workers (36 percent).
Ask for political support
84 percent of companies assume that the shortage of skilled workers will continue to increase. That is why the call for political support remains loud. “Politicians must act and, above all, set the course for the long term,” emphasizes Erich Lehner, partner and medium-sized business expert at EY Austria.
Lehner: “Educational initiatives, more efficient recognition procedures and targeted support for further training programs are important levers. What is needed now is a clear commitment to sustainable solutions to strengthen medium-sized companies and combat the shortage of skilled workers. If we don’t act quickly here, we risk losing touch with international competition and missing out on long-term economic opportunities.”
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.
