The job vacancies and long-term unemployment rates continued to rise last year. This suggests a growing mismatch between the skills workers have, and those employers require.
Austria’s participation rate is expected to continue to grow this year, easing pressure in the labour market.
Some of the upwards pressure on the labour market has been offset by improved education flexibility. This reflects a higher share of the population holding degrees.
Managing Director, Hays Austria
As Austria’s labour market participation rate is expected to grow further this year, the relative easing of the wider labour market is also set to continue. However, the pressure is still increasing, specifically in highly-skilled sectors, and we are finding that the demand for IT, life science, engineering and finance professionals has risen even further. In addition, talent mismatch has increased, which means that there is a growing discrepancy between the skills that workers in Austria have and the skills that employers require. As a result, Austria has been experiencing a heightened job vacancy rate. The new Government has shown a strong tendency to much more employer friendliness in some of its legislative endeavours thus reducing the insecurity of companies within the Austrian economy.
Mark Frost, Managing Director, Hays Austria
In 2017, GDP increased by 3.2%, its fastest annual rate of growth since 2007. This boosted the demand for labour, with employment also growing at its fastest annual rate since 2007.
Both unemployment and vacancies have reacted to the robust growth in output. The number of unemployed people fell by 8% in the year, taking the unemployment rate to 5.5% in 2017. The number of vacancies increased by 34% in 2017. Some 63% of the jobs advertised were in the private service sector, 22% in the private production sector and the remainder in the public sector.
The stock of vacancies as recorded by Statistics Austria is 39% of the numbers who are unemployed. This is consistent with some degree of skills mismatch.