Austria's industry in crisis: 15,000 jobs in danger!

Austria's industry in crisis: 15,000 jobs in danger!

Vienna, Österreich - The economic situation in Austria industry remains tense. Since the start of the recession, the industry has lost around 15,000 jobs. This is confirmed by the Industry Association (IV) , which blames different factors for this. IV General Secretary Christoph Neumayer is particularly critical of a expectation that is too optimistic that is coupled to the "principle of hope", especially in the context of the customs dispute with the USA.

The high location costs, a stressful bureaucracy and a falling competitiveness also add industry in Austria. At the moment, the wage costs with around 95 euros per employee lesson are alarming in an international comparison, especially compared to 76 euros in Germany, 35 euros in Slovenia and 20 euros in Bulgaria.

job cuts and order situation

A third of companies are planning to reduce jobs for the coming months. According to the IV job barometer, the recession could cost a further 15,000 positions in the next few months, of which 3,500 could be dismantled in the foreseeable future. Many companies suffer from an extremely poor order situation, which becomes particularly clear in construction and industry. The statistics Austria recorded a decline in sales in the industry of 7.8 % compared to the previous year and in the construction area of 10.2 %.

The order situation in industry remains tense. Previous assessments show that the mood is particularly bad due to the development of wages in Austria. The purchasing managers in the euro zone report falling expectations regarding new orders and a lower production volume. This suggests that the downward trend is expected to continue.

Influence of international markets

Uncertainty in international trade, especially threatened tariffs of 30 percent, could generate additional cost pressure for the Austrian industry. Neumayer appeals for a trade agreement between the EU and the USA to avoid counter -duties. However, the industrial environment could also develop positively, since the order stock has increased slightly for the next six months. Nevertheless, it should be noted that this increase may be exaggerated, since the euro upgrading compared to the dollar was not taken into account.

In the current situation, there are also differences between the European and international economy. While countries like the USA and China have slight growth, emerging countries such as India, Indonesia and Brazil benefit from a more stable economic situation that is not affected by the consequences of the energy price shock. In Austria, on the other hand, further lowering of consumer price inflation is expected, but slower than in the rest of the euro zone.

Overall, the Austrian industry faces major challenges. The high energy prices, wages and weak economic growth are identified as the main brakes for export -oriented companies. The Chamber of Commerce underlines the need to make fundamental changes to ensure competitiveness in the long term.