Tourism boom

“Almost full employment” in Salzburg and Tyrol

In view of a good summer tourism season, Salzburg and Tyrol are experiencing almost full employment. At the end of June, the unemployment rate was 3.3 percent in Salzburg and 3.4 percent in Tyrol. In contrast, the unemployment rate in Vienna was 10.7 percent.

At less than 3 percent, experts speak of full employment because there is always a certain number of unemployed people due to job hunting and seasonal work. The regional managing director of AMS Tirol, Sabine Platzer-Werlberger, spoke of "virtually full employment" in view of the low unemployment rate and despite rising unemployment figures. The situation can still be described as "surprisingly stable".

Further increase possible
"For us and also in Salzburg, a lot now depends on the summer season, which is just getting underway - over the summer months, we expect unemployment to be traditionally very low and employment to continue to rise. Never before have so many people worked in Tyrol as right now," reported the AMS regional managing director.

"Not a new phenomenon"
The shortage of workers and skilled workers is "currently the biggest challenge on the Tyrolean labor market, especially if the economy picks up again with a delay next year". Quick placement, qualification, mobilization of the "hidden reserve", immigration, etc. - all of these are necessary to counteract this. "Labor shortages are not a new phenomenon in Tyrol, but now they are affecting all sectors and areas. And it has come to stay," emphasized Platzer-Werlberger. According to a recent AMS report, 8013 vacancies were registered in Tyrol at the end of June.

More job vacancies than unemployed
In Salzburg, there are already more job vacancies than unemployed people. "We still have 71 more vacancies than unemployed people," said Salzburg's AMS boss Jacqueline Beyer. Although Salzburg is currently also experiencing a downturn, it is starting from a low level. "We have little industry compared to Upper Austria, and we are stable in tourism." Nevertheless, there is not only a shortage of skilled workers in Salzburg, but also a shortage of labor. This has been known in tourism for a very long time, which is also due to the very strong growth in this sector. Beyer sees the solution as increasing the potential workforce, for example by recruiting asylum seekers. There are now quite a few asylum seekers in apprenticeships in tourism. "That's increasing, but it's taking longer."

Even if the economy were to grow much more strongly again next year, the labor shortage in Salzburg could hardly get any worse than it currently is, according to the head of Salzburg's AMS. But the signs need to change. "Currently, only 57 percent of over-55s are in employment, and only 49 percent of women. We need to create good framework conditions so that people are happy and healthy to stay in work for longer."

"Currently, only 57 percent of over-55s are in employment, compared to 49 percent of women. We need to create good framework conditions so that people enjoy staying in work for longer in good health.

Salzburgs AMS-Chefin Jacqueline Beyer

"Urgent need for labor market reform"
Peter Buchmüller, President of the Salzburg Chamber of Commerce, is putting his finger in an open wound with the question of the situation on the labor market. "The parameters are no longer right. We urgently need a labor market reform," he said. On the one hand, the potential of the domestic workforce must be increased: "One third of people in Austria only work part-time - two thirds of whom have no caring responsibilities." More full-time work, better childcare, better tax conditions for pensioners willing to work, "and, and, and ..." are needed, said Buchmüller.

The Chamber President also sees an urgent need for action in the area of foreign workers. "We need to get more red-white-red cards as quickly as possible, not only for skilled workers, but also for workers." Currently, this quota is "limited by people who have no idea. We need the people that our companies need, not the ones that are being dictated to us. We urgently need more people from third countries so that Germany doesn't take them away from us."

Skills shortage in Tyrolean companies
Barbara Thaler (ÖVP), President of the Tyrolean Chamber of Commerce, emphasized when asked that we are currently "very close" to full employment. This is due, on the one hand, to demographic change and, on the other, to the tourism sector, which is very employment-intensive in Tyrol during the summer months. For the coming months, however, Thaler expects a stagnation phase with very moderate growth of a maximum of one percent. The unemployment rate is expected to level off at around 4.1 percent or slightly higher. Irrespective of this, the shortage of jobs and skilled workers remains a problem for many Tyrolean companies.

Tyrol's President of the Federation of Austrian Industries, Max Kloger, cited a decline in unemployment in industry and construction - compared to January of this year - as a positive development. In view of the difficult framework conditions for companies, however, it cannot be ruled out that the number of unemployed will rise again in the coming months, Kloger echoed Thaler and spoke of still high raw material and energy prices, high labor costs due to "historically high collective bargaining agreements" and weak demand for industrial goods at home and abroad.

Massive reduction in non-wage labor costs required
In order for industrial companies to remain competitive, the Tyrolean IV President called for a "massive reduction in non-wage labor costs so that employees have more net from gross and our companies have more room for maneuver in pricing."