Appeal to the government

Shortage of skilled workers exacerbated, “overall strategy” needed

According to the Court of Audit, the government lacks an "overall strategy" in the fight against the shortage of skilled workers. The retirement of the "baby boomer" generation from working life will exacerbate this in the medium and long term, and the potential workforce will not be exhausted for a long time. 

The ministries could counteract this with training and further education, increasing the participation of older people, women and migrants in the workforce and with qualified immigration.

As a rule, the ACA audits the financial management of public bodies and specific measures, but this time it provided an inventory of the labor market. It examined the situation on the Austrian labor market from 2008 to mid-2023, stating that although the responsible ministries and federal states have taken initiatives to combat the shortage of skilled workers, an "overall strategy" is still lacking.

Pupils often lack basic knowledge
In order to counteract the shortage of skilled workers, measures are needed in the area of education: "A medium and high level of qualification has a positive effect on employment opportunities and income, and it reduces the risk of unemployment," said the auditors. In addition, a "non-negligible proportion" of pupils would have "insufficient basic skills" in reading and mathematics.

31.2 percent of employees work part-time
The Court of Audit also pointed out the high part-time employment rate: Although the employment rate in 2022 was almost six percent higher than in 2008, the amount of hours worked remained largely constant. In Germany, 31.2 percent of employees worked part-time two years ago, according to the report. The recommendation was that the potential workforce should be exploited and mobilized.

According to the Court of Audit, more than half of employed women worked part-time in 2022, compared to 11.9% of men. An important starting point for increasing the participation of women in the labor market is the availability and quality of childcare. Tax and subsidy conditions as well as the design of social benefits also play a role.

Labor force potential not exhausted
The ACA also called for older workers to remain in employment and for migrants to be integrated into the labor market. The labor force potential of foreign nationals living in Austria was not being fully exploited in some cases.