The effect of the corona crisis on the labour market in Austria



Based on the latest report from EY Austria, this German-speaking country has been struggling to find qualified and experienced and experienced employees, across all sectors, for several years now.


According to their comments, three out of every four medium-sized businesses in Austria (76 %) have difficulty obtaining sufficient skilled personnel, with 23 % having significant issues. Only three out of a hundred firms, on the other hand, say they have no trouble finding qualified staff. This implies that the skilled employee’s problem is no longer as pressing from the perspective of firms, owing to the economy-related reluctance to hire people. Still, it remains a severe burden for businesses.


Two years ago, in 2020, the greatest threat for SMB’s was the shortage of skilled workforce (69%), while now, in 2022, due to Corona, most SMB’s fear a new outbreak of Corona and an oncoming economic slump (71 %) as the greatest threats to their development. Nonetheless, the scarcity of competent personnel, along with a 57 % increase in unemployment, continues to have a detrimental influence on the growth of Austrian medium-sized businesses.


Hesitance in hiring new employees

Although the financial crisis is presently driving the economy’s requirement for staff to shrink drastically, it only temporarily alleviates the lack of a competent workforce -it is painfully catching up with many industries even while the crisis is ongoing, despite high unemployment rates. There will be a shortage of qualified professionals in the medium and long run. Companies are again hesitant to hire new employees in light of the economic uncertainty, which has now been worsened by the advent of a new virus type. Like it did the previous year, the labour market crisis is hurting Austrian companies’ expansion plans.

According to the EY Austria study,


Austrian medium-sized businesses expect to hire new personnel in the next six months.


Sales figures are down with vacancies across all sectors

More than a third of the interviewed companies have expressed that the talent shortage has lowered their sales numbers. The implications of a skilled labour shortage are most evident in the energy and water supply industry (57 %), followed by the finance and service sector, where almost half of the enterprises (44 %) report lost revenues owing to unfilled jobs.

The most present lack of talent is the technical area, where jobs remain unfilled in one out of every four businesses (26 % ). In addition, the digitalization drive spurred by the financial crisis has also increased the shortage of trained personnel in the IT sector, with 15% of enterprises reporting openings.

The conclusion is clear –like many other developed countries, Austria is experiencing a sharp decline in quality talent, affecting their further economic development.

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