Wifo and AK demand: Use “hidden reserves” in the labor market

2023-10-13 11:24:04

The labor shortage is partly self-inflicted, as the “hidden reserve” of people who are willing to work but not looking for it, as well as underemployed part-time workers, is not being used. This is the result of a study by the economic research institute Wifo for the AK. Accordingly, there are more people in hidden reserves and in unwanted part-time work than unemployed people. Women and migrants in particular are being pushed into part-time work.

At the same time, companies’ willingness to provide training and further education is also decreasing. “But if you need skilled workers, you also have to train them,” says Silvia Hofbauer, head of the AK labor market department. It’s regarding turning several screws. “In addition to good working conditions and fair pay, it is also regarding public accessibility to jobs, affordable housing or social infrastructure such as child care,” she said. She called on the government to equip the AMS with personnel and finances so that the hidden reserves can also be raised. Attempts to achieve this through pressure are “the wrong approach”.

For AK economist Markus Marterbauer, it is clear that the labor shortage might significantly improve the living and working conditions of the population, accelerate structural change and increase prosperity. “To this end, we need a labor market and employment policy that focuses on improving working conditions – moving away from the mentality ‘any job is better than no job’ towards a policy of ‘good and meaningful jobs for everyone'”, emphasized Marterbauer. For him, the study is an appeal to the government and the social partners to form a working group to look for integration solutions.

Wifo economic expert Helmut Mahringer also referred to the “significant workforce potential” that Austria still has and called for action. “The activation of this potential can often only be achieved by reducing obstacles to employment, such as incompatibility with care tasks, a lack of skills, a lack of suitable workplaces for people with health problems or poor language skills,” says Mahringer.

According to the Wifo study “Labor market potential that can be activated and ‘hidden reserves’ in Austria”, around 312,000 people are considered to be without a job but are not actively looking. There are also 139,000 involuntary part-time workers.

The economic researchers have played through what things might look like in 2040. By then, the number of full-time employees will fall by 80,000 people and the number of unemployed people by 57,000 people. The number of part-time employees will increase by 175,000 people. The number of pensioners in the population group up to 64 years old is falling by 206,000. In return, 35 percent more people would not take part in working life for health reasons. The number of people who are only in part-time employment or who do not participate in working life for other reasons is also expected to fall: by 17,000 or 93,000 people.

At a press conference today, the Chamber of Labor called for “healthy full-time work”, which, according to studies, is between 30 and 35 hours per week. At the same time, the regulations on the 12-hour day passed in 2018 would have to be withdrawn.

The Industrial Association (IV) said it was important to “set positive performance incentives”. “Inactivity traps must be eliminated and those people who are willing to work extra must be rewarded,” emphasized IV General Secretary Christoph Neumayer. From the industry’s perspective, it is crucial to make full-time work more attractive, for example by creating tax relief.

In addition to the still untapped national workforce potential, demographic change alone will also require qualified immigration in order to “be able to begin to cover” the demand for personnel.

Rolf Gleißner, head of the WKÖ’s social policy department, stated: “There is no way around the goal of exploiting the entire workforce potential available in Austria. But it is an illusion that this would solve the labor shortage.” He explained: “Taking on a job has to be worth it. The current possibility of earning a little extra money while receiving unemployment benefit and for an unlimited period of time is counterproductive here.”

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