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Diversity and jobs: How migrants contribute to Vienna’s economy

International business owners in Vienna bring in billions of euros in revenue and taxes each year, according to a recent survey by the Chamber of Commerce.

Published: 17 August 2022 15:58 CEST

Diversity and jobs: How migrants contribute to Vienna's economy

Vienna's economy is boosted by entrepreneurs with a migrant background. (Photo by Jorge Franganillo on Unsplash)

New figures show that Vienna’s international entrepreneurs do more than simply boost diversity in Austria’s capital city – they also significantly contribute to the local economy.

The Wirtschaftskammer (Chamber of Commerce) has revealed that business owners in Vienna with a migration background generate € 8.3 billion in revenue and create around 45,500 jobs.

Plus, these companies pay around € 3.7 billion every year in taxes and duties, reports ORF.

READ MORE: Austrian presidential elections: Why 1.4 million people can’t vote

Walter Ruck, President of the Vienna Chamber of Commerce, said: “Companies with a migrant background not only enrich the diversity of the corporate landscape in Vienna, they are also an economic factor.”

Ruck added that more than 200 international companies move to the capital each year and said the diversity is helping Vienna to financially recover from the pandemic.

The Chamber of Commerce considers a business owner to have a migration background if they were not born in Austria and/or they have a non-Austrian nationality.

READ ALSO: What are the rules on working overtime in Austria?

According to ORF, there are 34,000 entrepreneurs in Vienna with a migration background and 7,400 of those business owners have Austrian citizenship.

Additionally, 4,500 business owners have Slovakian nationality, 3,800 are from Romania and 2,600 have German citizenship.

The most popular business sector for people in Vienna with a migration background is retail, followed by real estate and technical services.

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Austria faces major shortage of skilled workers

Austria is facing a shortage of skilled workers across several industries.

The shortage is seen as a significant threat to economic prosperity, as it lowers productivity and makes it harder to meet service needs, as reported by Der Standard.

Thousands of skilled workers missing

By 2040, there will be a shortage of around 360,000 workers in Austria, according to the Chamber of Commerce and the Federation of Austrian Industries.

Some industries are already affected by the shortage.

For example if you want to get your car repaired in Austria, you might have to wait a long time. The car mechanics business is already facing issues with contracting staff. On the AMS platform “All Jobs”, some 2,700 jobs for car mechanics in Austria are currently advertised.

Furthermore, the healthcare sector is expected to face greater challenges. Austria is projected to have a shortage of around 7,000 doctors throughoutby 2035, as there are currently too few in training.

The tourism and hospitality sector is also struggling to retain employees. In general, one out of every four workers leaves within the first year of employment.

Additionally, public transport is also affected by the lack of employees. Vienna is expected to face a shortage of 5,000 bus drivers within the next five years due to retirements and a lack of new drivers entering the field.

Aging population, lack of training, and potential workers not yet included

There are many factors contributing to the shortages. One major reason is the aging population, with many baby boomers retiring and fewer young people entering the workforce. Additionally, there is a lack of adequate training and education programs for high-demand professions like car mechanics and healthcare workers.

Another contributing factor is the reduced numbers of workers coming to Austria from Eastern Europe. Previously, Austria benefited from a significant number of workers coming from countries such as Hungary, Romania, and Croatia, but this trend is now declining.

The high turnover rates in industries like tourism and hospitality also contribute to the problem, as a large number of employees leave their jobs every year, creating challenges with keeping knowledgeable staff.

Furthermore, there are many potential workers who are not currently part of the Austrian workforce, such as refugees, individuals with health restrictions, and older but healthy workers who could be encouraged to remain employed longer.

The shortage can also lead to positive changes

Despite challenges, the shortage of skilled workers in Austria can also bring about positive changes, reported Der Standard.

Firstly, the shortage can lead to higher wages and improved working conditions for employees, particularly in lower-paid jobs. Secondly, it can result in a need for increased productivity, and encourage companies to invest more in innovation and technology, which can lead to long-term economic growth. Furthermore, the shortage might also encourage employers to create better job stability and conditions to attract employees.

READ ALSO: Healthcare in Austria: Why are there fewer ‘public’ doctors?

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