Austria bets on immigration to tackle labour shortages

Austria will try to attract more than 15,000 skilled workers from non-EU countries each year by 2027, Labour Minister Martin Kocher (ÖVP) announced in a statement on Tuesday after talks with Social Affairs Minister Johannes Rauch (Greens) and representatives of the social partners.

These skilled workers are to be brought into the country through the Red-White-Red Card system, which entitles holders to settle and work for a certain employer or be self-employed.

However, from the start of the year until June, skilled workers were given 3,795 Red-White-Red immigration cards, marking a 47% increase compared to the same period in 2022.

“The reform of the Red-White-Red Card was thus an important first step to facilitate access to the Austrian labour market for qualified personnel,” Kocher stressed.

To enhance the recruitment of skilled workers from abroad, he added that closer cooperation among relevant organisations will expedite procedures such as the Red-White-Red Card approval and the recognition of qualifications required abroad.

However, workers from EU countries who are not hired through that system are still highly sought after, according to Kocher. To meet this high demand, the government is banking on expanding the European job network Eures, intending to gradually increase recruitment through this channel to reach 2,000 individuals per year.

In June, Austria had 118,566 job vacancies, with companies across multiple sectors experiencing severe staff shortages, according to the labour market service (AMS). The Social Affairs Ministry predicts a need for 76,000 more employees in the care sector by 2030.

Still, reform of the care sector would have improved employment conditions for foreign care workers by allowing them to work while working towards a degree and streamlining the assessment of foreign training – something Rauch said would allow for faster integration of third-country care workers into the labour market.

“Now, however, we urgently need to work on the whole employment policy so that people are made to understand: You are welcome!” he emphasised.

Support for the measures came from key organisations such as the Chamber of Commerce (WKÖ), the Federation of Austrian Industries (IV), and the Tourism State Secretariat.

WKÖ Secretary General Karlheinz Kopf and IV Secretary General Christoph Neumayer urged for their swift implementation, while State Secretary Susanne Kraus-Winkler (ÖVP) highlighted the significance of the Red-White-Red Card for the tourism sector.

However, the Chamber of Labour and the Austrian Federation of Trade Unions responded with criticism. Chamber of Labour President Renate Anderl emphasised that the Red-White-Red Card is not a “cure-all”, and companies must improve working conditions to attract workers.

(Chiara Swaton | EURACTIV.de)