Concerns Rise Over Carinthia's Employment Market Challenges

Recent assessments by the Head of the Public Employment Service (AMS) have raised alarms about the employment landscape in Carinthia, highlighting significant challenges that require immediate attention. Johannes Kopf emphasized that a projected decline in the working population by 17.5% by 2050 poses a serious issue for the region, particularly as it competes with other Austrian provinces for employment opportunities.

Kärnten, Austria's southernmost state, is experiencing a unique demographic shift, primarily characterized by an influx of retirees. While the nation as a whole sees a net migration of approximately 20,000 people annually, Carinthia's growth remains sluggish. Over the past two decades, Austria's population has increased by one million; however, a concerning trend is emerging where, relative to this growth, fewer individuals are working decreased hours across the country.

This phenomenon can be partly attributed to changing labor patterns, particularly among women who have transitioned from non-participation to part-time roles, thus lowering the average hours worked. Despite these shifts, the overall full-time working hours are on the decline.

Kopf noted that the growth in working hours has not kept pace with population increases. He pointed out that certain sectors offer limited opportunities for full-time employment. The gradual rise in the retirement age for women resulted in a notable increase of 14,000 workers in the labor market in its first year, with 85% of these women remaining in their jobs. As the retirement age aligns more closely with that of men, it is anticipated that an additional 12,000 to 14,000 women will join the workforce each year.

Additionally, Kopf called for expanded childcare services, acknowledging that while such initiatives may require substantial investment, proven demand indicates that reliable childcare options could stimulate workforce participation.

On the issue of immigration, he urged for more intensive support for individuals with a high likelihood of remaining in Austria. Evaluations of the integration of Ukrainian refugees suggest that their assimilation into the job market has not been successful, which has contributed to Austria's declining position in unemployment statistics compared to other EU nations. Currently, one in four unemployed individuals in Vienna is a refugee.

Kopf also identified considerable potential for increasing employment among individuals over the age of 50, countering the common belief that hiring older workers is inherently more expensive. Research from AMS suggests that biases against employing older individuals persist, and concerns regarding their integration into the workforce outweigh those related to hiring long-term unemployed individuals.

Despite these challenges, Kopf welcomed proposed reforms regarding early retirement and educational leave, noting that the current model of partial work for reduced pay remains popular yet costly. He expressed ambivalence about potential budget cuts to these programs, stating he would not strongly oppose their elimination if necessary for fiscal reasons.

Looking ahead, the AMS budget for 2025 is still under negotiation. As of the end of March, approximately 397,100 individuals were registered as unemployed or in training programs, representing a 7.4% increase compared to the previous year, with unemployment numbers rising since April 2023.