Industry Concerned About Brain Drain From Austria
A recent study commissioned by the Federation of Austrian Industries (IV) highlights an alarming issue, as highly qualified workers are leaving Austria. While immigration figures overall exceed emigration, the composition of migration flows raises concerns.
Figures on labor migration paint “a worrying picture” for the Federation of Austrian Industries (IV). / Picture: © Wikimedia Commons / Buchhändler [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0)]
A recent study commissioned by the Federation of Austrian Industries (IV) paints a worrying picture for the Austrian labor market. Between 2011 and 2023, around 170,000 skilled workers in permanent employment left Austria. The majority of these emigrants come from wealthy EU and OECD countries, which the IV study considers to be a loss of urgently needed human capital.
The analysis by migration researcher Rainer Münz shows that, in recent years, immigration has been higher than emigration overall (around 2.2 million new arrivals compared to 1.4 million emigrants). However, according to the study, “less well-integrated people tend to stay in Austria longer,” while highly qualified immigrants from the EU leave the country at a disproportionately high rate. Of the immigrants who arrived between 2017 and 2019, more than half had already left again after only four years.
IV President Georg Knill and political reactions
IV President Georg Knill does not see this development as a problem of a lack of willingness to integrate, but rather as an expression of structural location disadvantages. He cites high taxes, excessive bureaucracy, and a lack of prospects as the main causes. To stop this trend, Knill is calling for a reduction in non-wage labor costs and an acceleration and simplification of the procedures for the Red-White-Red Card. In addition, he emphasizes the importance of high-quality childcare and a genuine culture of welcome.
As reported by ORF, Integration Minister Claudia Plakolm (ÖVP) emphasized the reorientation of migration and labor market policy in response to the study. Her credo is: “Employment from day 1” should become a core element of the integration program. Asylum seekers with a high probability of recognition should therefore be prepared for the labor market from the outset. Plakolm sees work as the key to integration and self-sufficiency. In this context, the Integration Ministry plans to involve the ÖIF Skilled Labor Service more closely and simplify recognition procedures.
A Europe-wide problem
The migration of skilled workers is a Europe-wide phenomenon often referred to as “brain drain.” This term describes the emigration of highly qualified workers or scientists from one country to another, which means a loss of human capital for the country of origin. In Austria, this problem has already been addressed in various studies in the past. A study by the Austrian Federal Economic Chamber (WKO) from 2023 also highlights the challenges of retaining skilled workers in the country. It highlights similar factors such as the high tax burden and bureaucratic hurdles.
International organizations such as the OECD (Organization for Economic Cooperation and Development) also regularly point out in their reports the importance of migration policy and integration for economic development. According to these reports, a country's competitiveness depends heavily on how successful it is in not only attracting international talent but also retaining it in the long term.