Given a strong summer tourism season, Salzburg and Tyrol are experiencing nearly full employment. At the end of June, the unemployment rate in Salzburg was 3.3 percent and in Tyrol 3.4 percent. In contrast, the unemployment rate in Vienna was 10.7 percent. Experts consider under 3 percent to be full employment because there is always a certain number of unemployed people due to job searches and seasonal work.
The state director of the AMS Tirol, Sabine Platzer-Werlberger, described the situation to APA as “quasi full employment” despite the recent increase in unemployment figures. The situation remains “surprisingly stable.” “In both our region and Salzburg, much depends on the just-starting summer season. We expect traditionally very low unemployment and a further increase in employment over the summer months. More people are working in Tyrol now than ever before,” reported the AMS state director.
The shortage of labor and skilled workers is currently the biggest challenge in the Tyrolean labor market, “especially if the economy picks up again next year.” Quick placement, training, mobilizing the “silent reserve,” and immigration are all necessary to counteract this. “Labor shortages are not a new phenomenon in Tyrol, but now they affect all sectors and areas. And they are here to stay,” emphasized Platzer-Werlberger. According to a recent AMS report, there were 8,013 job vacancies in Tyrol at the end of June.
In Salzburg, there are already more job vacancies than unemployed people. “We still have 71 more job vacancies than unemployed people,” said Salzburg’s AMS chief Jacqueline Beyer to APA. Currently, Salzburg is also experiencing a downturn, but at a low level. “Compared to Upper Austria, we have little industry, and tourism is stable.” Nevertheless, Salzburg faces a shortage of not only skilled workers but also general labor. The tourism sector has long been familiar with this issue due to its strong growth. Beyer sees increasing the labor potential, such as through asylum seekers, as a solution. There are already many asylum seekers in apprenticeship training in tourism. “This is increasing, but it takes time.”
Even if the economy grows significantly next year, the labor shortage in Salzburg is unlikely to worsen, said Salzburg’s AMS chief. However, the signs need to change. “Currently, only 57 percent of people over 55 are employed, and only 49 percent of women. We need to create good conditions for people to work longer, happily, and healthily.”
For Salzburg’s Chamber of Commerce President Peter Buchmüller, the labor market situation is a pressing issue. “The parameters no longer fit. We urgently need labor market reform,” he told APA. On the one hand, the domestic labor potential must be raised: “One-third of people in Austria work part-time – two-thirds of them have no caregiving responsibilities.” More full-time jobs, better childcare, and better tax conditions for willing retirees are needed, said Buchmüller.
The Chamber President also sees an urgent need for action regarding foreign workers. “We urgently need more Red-White-Red Cards not only for skilled workers but also for general labor.” Currently, this quota is limited by “people who have no idea. We need the people our businesses need, not those who are imposed on us. We urgently need more people from third countries so that Germany doesn’t take them from us.”
Tyrol’s Chamber of Commerce President Barbara Thaler (ÖVP) emphasized that the region is currently “very close” to full employment. This is due to demographic changes and the employment-intensive tourism sector in the summer months. Thaler expects a stagnation phase with very moderate growth of a maximum of one percent in the coming months. The unemployment rate is expected to settle at around 4.1 percent or slightly above. Regardless, the shortage of labor and skilled workers remains a problem for many Tyrolean companies.
Tyrol’s Industrial Association President Max Kloger noted a positive development, with a decrease in unemployed people in industry and construction compared to January this year. However, given the difficult conditions for businesses, it is not ruled out that the number of unemployed people will rise again in the coming months. Kloger mentioned high raw material and energy prices, high labor costs due to “historically high collective agreement conclusions,” and weak demand for industrial goods domestically and internationally. To keep industrial companies competitive, Kloger called for a “massive reduction in ancillary wage costs so that employees get more net income from their gross pay and our companies have more room for maneuver in pricing.”
