Record Low in Apprenticeship Providers as Labor Shortages Worsen

Record Low in Apprenticeship Providers as Labor Shortages Worsen

APA/dpa/Marcel Kusch
APA/dpa/Marcel Kusch

Austria experienced a significant decline in the number of companies offering apprenticeships in 2023, hitting a new long-term low of 27,083 businesses. According to a Ministry of Labor and Economy report, the most substantial decreases occurred in the trades, crafts, and retail sectors. In response, the government has increased funding for apprenticeship programs, raising it from 270 million euros in 2023 to 280 million euros this year in an effort to boost the number of apprentices.

Despite the overall drop in apprenticeship providers, the number of first-year apprentices in 2023 reached 34,082, slightly surpassing the levels seen before the COVID-19 pandemic in 2019. The total number of apprentices at the end of 2023 also showed a modest increase, with approximately 100,000 young people enrolled.

However, the tourism and hospitality sectors, which are particularly affected by labor shortages in Austria’s western regions, saw a significant decline in apprenticeship numbers. In 2023, only 7,189 apprentices were active in these industries, less than half the number recorded in 2008, when 14,755 apprentices were enrolled. According to Labor and Economy Minister Martin Kocher, this represents the most substantial decline in apprenticeships in any sector over the past 15 years, a situation exacerbated by the lingering effects of the COVID-19 pandemic.

With the ongoing reduction in apprenticeship opportunities and an anticipated wave of retirements in the coming years, the Ministry emphasized the importance of state support in addressing the skilled labor shortage. Upper Austria led the nation in apprenticeship numbers with 22,521 apprentices in 2023, although this marked a slight decrease from 2022. Conversely, Vienna saw the largest increase, rising from 17,697 apprentices in 2022 to 18,215 in 2023.

The report also noted a significant rise in apprenticeships in the IT sector, with numbers growing from 520 in 2017 to 968 in 2023. However, the sector continues to struggle with gender imbalance, as only 18.4 percent of IT apprentices were female last year.

Nationwide, around 39 percent of each age group chose to start an apprenticeship in 2023, maintaining a stable participation rate. However, the report highlighted regional disparities, with a more significant shortage of skilled workers in the western federal states compared to the east, despite a higher proportion of young people starting apprenticeships in the west. The dropout rate for apprenticeships stood at 19.8 percent in 2022. The Ministry stressed that mandatory education is crucial in reducing apprenticeship dropouts.

 

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