Labor Market in Austria 2024: Number of Vacancies Significantly Decreased

The number of job vacancies in Austria fell significantly in 2024 compared to the previous year. According to the latest figures from Statistics Austria, companies reported an annual average of 173,800 vacancies. This corresponds to a decrease of 15.8 percent compared to 2023. Despite this decline, the shortage of skilled workers remains a key problem for the Austrian economy.

“Nevertheless, the number of vacancies in 2024 is the third-highest figure ever recorded. The skills and labor shortage remains a bottleneck factor,” emphasized Statistics Austria Director General Tobias Thomas in a press release.

Particularly affected: Trade and the service sector

The so-called vacancy rate - i.e. the proportion of vacancies in relation to all available positions - averaged four percent for the year. The trade and services sector was particularly affected, accounting for the largest share of the labor demand with 57.5 percent of advertised vacancies. In contrast, the number of vacancies in the public and social sectors remained relatively stable.

The trend shows that the decline in vacancies was particularly noticeable in the manufacturing and industrial sectors. Companies there increasingly reported economic uncertainties, rising costs, and a weakening economy as reasons for their reluctance to hire new staff. At the same time, companies continue to complain about a shortage of qualified specialists, which seems to contradict the falling number of advertised vacancies.

Persistent skills shortage with rising unemployment

Despite the decline in vacancies, the shortage of skilled workers remains a major issue. Many companies continue to complain that it is difficult to find qualified workers, particularly in technical professions, nursing, and the IT sector. At the same time, the unemployment rate in Austria according to the national definition (AMS) rose to 8.3% in December 2024 - compared to 7.8% in the same month last year.

The number of unemployed people registered with the AMS rose from 329,328 to 352,873 in the same period. This underlines the seemingly paradoxical situation in the labor market: on the one hand, some vacancies cannot be filled, while on the other, unemployment is on the rise.

Causes of the contradiction between fewer jobs and a shortage of skilled workers

A central problem is the mismatch in the labor market. While fewer jobs are being advertised in some sectors - particularly in industry and construction - the demand for skilled workers in technical professions, the IT sector, and care remains high. The labor market is not homogeneous: Companies urgently need qualified staff in certain sectors, while jobs are being cut or held back in others.

Another factor is economic uncertainty. Companies are more cautious about hiring new staff due to the economic situation. This does not mean that the need for skilled workers does not exist - rather, new hires are delayed or only made for particularly critical positions in times of economic uncertainty.

Added to this is the demographic trend. The retirement wave of the baby boomer generation is causing increasing shortages in certain occupational groups. At the same time, the number of available workers is not growing at the same rate, which is intensifying competition for skilled workers.

Rising wage levels for advertised jobs

According to Statistics Austria, the majority of vacancies are full-time positions. A noticeable increase in salary levels is striking: while only 15.6% of vacancies were advertised with a gross salary of EUR 3,100 or more in 2023, this proportion was already 21.7% in 2024.

“This is a sign that companies are increasingly trying to compete for skilled workers with more attractive salaries,” explained Thomas. The increase in the salary level on offer could indicate that companies have had to adjust their salary structures due to the shortage of qualified workers.

Educational requirements and search duration

Concerning educational requirements, the data showed that a compulsory school leaving certificate was sufficient for 41.6 percent of vacancies, while an apprenticeship qualification was required for 29.4 percent. A school-leaving certificate was required for 11.1 percent of vacancies, while 11.5 percent of advertised positions required a higher qualification.

The duration of the quest for suitable applicants also decreased slightly. For 28.2 percent of vacancies, the search lasted longer than three months, while 29 percent of positions remained permanently advertised. This could be an indication that companies either need more time to find suitable skilled workers or that certain positions simply cannot be filled.

A difficult year for the labor market

The year 2024 was characterized by a significant decline in vacancies, a rising unemployment rate, and a persistent shortage of skilled workers. While some sectors are struggling with falling demand, competition for qualified workers remains high in many areas. At the same time, economic uncertainties and demographic trends are exacerbating the problem.

However, the German government has announced that it will step up measures to recruit international skilled workers and further promote training in shortage occupations. It remains to be seen whether these strategies will be effective in the short term. The challenges for companies and employees remain.

Statistics Austria