A shortage of skilled workers remains the biggest worry for Austria’s small and medium-sized businesses (SMEs), with over two-thirds of firms seeing it as a major threat, according to a new survey by consultancy EY.
The study, conducted in August and September 2024, found that 67% of the 500 companies surveyed described the skills shortage as a “very” or “fairly” serious problem. An economic slowdown ranked as the second-biggest concern, troubling 65% of respondents.
Firms are also grappling with uncertainty around inflation and energy prices. Despite these challenges, 23% of businesses plan to take on more staff in the near future, compared to 18% expecting to cut jobs. Vienna is the most optimistic, with 32% of companies planning to expand their workforce, while Burgenland trails behind, with only 14% reporting similar intentions.
Struggle to Find Skilled Workers
Seven in ten businesses said they are finding it tough to recruit qualified staff, with 25% describing the task as “very difficult” and 46% as “fairly difficult.” However, this marks an improvement from January 2023, when 87% of firms reported severe hiring difficulties.
Erich Lehner, an EY expert, highlighted the strain in property and construction. “The situation in construction is likely to worsen as the industry recovers from its current economic slump,” he warned. Other sectors, including tourism and manufacturing, are also feeling the pinch.
The shortage of skilled workers is taking a toll on revenues. According to the survey, 35% of businesses said they had suffered financial losses as a result, with 7% reporting revenue drops of over 5%.
Changing Expectations
The study pointed to shifting attitudes among younger workers as a major factor in the shortage, with 61% of firms blaming this trend. Demographic changes were the second most-cited reason, mentioned by 39%, followed by a lack of training and qualifications among applicants, cited by 36%.
In response, 54% of businesses are investing in training and upskilling their current staff. About half are also offering flexible working hours and “attractive perks” to attract potential recruits.
Calls for Government Action
Many firms are urging the government to do more. Over half (54%) want increased investment in training programmes for skilled workers. Strengthening partnerships with educational institutions was supported by 44%, while 43% are pushing for greater support for lifelong learning. Meanwhile, 39% favour targeted immigration to plug labour gaps.
Lehner weighed in on a proposal by the far-right Freedom Party (FPÖ) and the People’s Party (ÖVP) to abolish education leave, should they form a coalition government. “It’s reasonable to question whether education leave has always been used effectively,” he said but emphasised the need for alternatives.
“The half-life of knowledge has decreased significantly, highlighting the importance of lifelong learning,” he added. Lehner also called for measures to make full-time work more attractive and said targeted immigration could be key to addressing the shortage of skilled workers.
