Labor market defies weakened economy. AK-Goach: “Politics must counteract this with investments!”

2023-11-08 13:36:26

Energy prices, inflation, rising interest rates are putting a strain on Carinthia’s economy. Assessments of economic development by works councils are much more pessimistic.

Klagenfurt (OTS) – Works councils from 208 Carinthian companies, representing around 65,000 employees, took part in the AK survey from August to September – accompanied by Joanneum Research. Study author Eric Kirschner from Joanneum Research: “When it comes to the development of the order situation, negative expectations predominate. Above all, the energy-intensive and export-oriented production of goods is clouding the picture. The construction industry is also massively affected by the current deterioration in economic conditions. In the service sector, negative and positive expectations are roughly balanced.”

“Despite the poor order prospects in many areas, the assessments of employment development for the coming year remain surprisingly positive,” emphasizes Goach and underlines: “The ‘hoarding’ of workers, the hope of only a short lull, but also the demographic change clear reasons for this. The shortage of skilled workers and unfilled positions are decreasing slightly, but remain the big issue. Despite weaker economic prospects, investment expectations remain high. Investments in energy saving measures are the most important levers for responding to the sharp rise in costs.”

Failure to contain inflation

The current economic forecasts assume a decline in real gross domestic product of around 0.8 percent this year. However, a slight increase in economic output is expected for 2024. “The Austrian government has so far failed to implement sufficient inflation-dampening measures. The development of domestic demand will depend heavily on the results of the collective agreement negotiations,” warns the AK President.

Politics must take countermeasures

The public sector – as a stimulus for economic recovery – must lead the way with the necessary investments in the socio-ecological restructuring of the economy. A “municipal investment fund” is intended to serve as an instrument to promote the expansion of renewable energies, the thermal renovation of buildings, energy efficiency and the expansion of public transport.

Economic support measures

Other areas in which there is an investment backlog are also suitable for measures to support the economy: such as non-profit housing, childcare or care and health. An economic stimulus package for affordable housing is recommended. “If the number of affordable apartments increases, the increase in rents will also slow down. Existing living space is to be thermally renovated as part of the economic stimulus package, which will simultaneously reduce energy costs and help achieve climate goals. These measures would also be socially accurate, since half of the population with low incomes live almost entirely in rent!” Goach continued.

AMS has an important role to play

The labor market is currently undergoing profound structural change. Supply crises in health and care, accelerated digitalization and the climate crisis make a paradigm shift in the area of qualification necessary. “The AMS has an important role to play here. Further training is the key to meeting changing requirements. Training priorities must be set in the area of digitalization and green jobs. Labor market policy is required to accompany these processes of transformation accordingly!” emphasizes the AK President and refers to the training workshops, which make an important contribution to the training of skilled workers in the state of Carinthia.

Koralmbahn as an opportunity

The AK sees great opportunities in the Koralm Tunnel: “Carinthia and Styria will grow together and a new, promising economic area will be created,” emphasizes Goach. The new opportunities on the labor market would create commuting connections. What is particularly important here is that the regions are connected to the Koralmbahn, feeder systems are expanded and the timing at certain times is increased and generally coordinated with each other. “All Carinthians must be able to benefit from the possibilities of the Koralmbahn. The positive effects that the project of the century brings with it should not only be used economically, but also for public transport throughout the state,” concludes Goach, emphasizing the importance of investment measures in public transport that will stimulate the economy.

The Carinthian Chamber of Labor demands:

Comprehensive “qualification offensive” to combat the shortage of skilled workers and make workers fit for the job market of the future: focus on digitalization & green jobs.
The AMS’s labor market policy measures must be continued, expanded and budgeted for with the state of Carinthia.
Further expansion of childcare and all-day schools. Professions in the areas of health, care and education must be upgraded and paid appropriately.
Installation of a “municipal investment fund” to promote the expansion of renewable energies, the thermal renovation of buildings, energy efficiency and the expansion of public transport.
Offensive in non-profit housing for affordable housing.
Expansion of public transport in Carinthia for affordable mobility.

Detailed study results: kaernten.arbeiterkammert/economic situation