Skills shortage in Austria: What companies can do now

Why do positions remain unfilled longer?

The bottleneck is structural, not cyclical. Large birth cohorts are retiring, and the following cohorts are smaller in number. At the same time, digitalization is shifting the required skills faster than educational systems can adapt. The result: for many roles, there are simply fewer suitably qualified people available than there are vacancies.

It’s important to distinguish between a real skills shortage and a self-inflicted candidate shortage. A real shortage exists when the market barely provides the qualifications. A candidate shortage often arises internally: due to overloaded job profiles, a sluggish process, a dull employer profile, or a salary that doesn’t fit the role. The first step in any strategy is therefore the honest question of which of the two scenarios truly applies.

Which professions are particularly affected?

The shortage is not evenly distributed. The Public Employment Service (AMS) annually publishes a skills shortage radar with a list of shortage occupations—a good, continuously updated reference for where the market is truly tight. Traditionally, technical, craft, healthcare, and IT-related professions are heavily affected.

• Technology & Craft: Electrical, metal, and construction professions, often with long training periods and little new talent.
• IT & Digitalization: Software development, data security, system administration—the demand grows faster than education.
• Health & Care: high demand with simultaneously high stress and attrition from the profession.
• Gastronomy & Tourism: seasonal fluctuations exacerbate an already tight market.

For your specific vacancy, the general headlines matter less than the concrete market situation: How many people with exactly this qualification exist within reach, and how many employers are competing for them? This sober assessment determines whether an ad is sufficient or if active outreach is needed.

Which levers really work?

There is no single switch that resolves the shortage. The interplay of several levers is effective—most of them lie within your control and cost mainly persistence, not budget.

1. 01

   Active outreach instead of waiting

   Directly and personally contact suitable individuals (Active Sourcing) instead of waiting for applications. This way, you reach the passively searching majority, who don’t read ads.

2. 02

   Accelerate the process

   Weeks often pass between first contact and offer. The best candidates are taken by then. A few days to the first interview is a real competitive advantage.

3. 03

   Honestly prioritize requirements

   Separate must-haves from nice-to-haves. Listing ten mandatory criteria is searching for a unicorn. Two to three genuine requirements plus development willingness open the market significantly.

4. 04

   Enable career changes

   Evaluating competencies instead of resumes and providing structured onboarding opens up to people others may overlook—such as those from related industries or after reskilling.

5. 05

   Refine employer profile

   Why should someone switch? Concrete, verifiable reasons (task, team, flexibility, development) outperform generic phrases.

6. 06

   Retain existing employees

   The most cost-effective specialist is the one who stays. Retention is part of the recruiting strategy, not its opposite—every avoided resignation is one less vacancy.

How fast must the process be?

In a tight market, speed is not a luxury but a selection criterion. Taking too long unintentionally signals low priority—and results in losing candidates to competitors who decide faster. It's not about haste, but a streamlined process without delays.

How important is salary?

Salary is necessary but rarely decisive on its own. In Austria, the Equal Treatment Act (§ 9 GlBG) mandates including the collective agreement (Kollektivvertrag) minimum salary and willingness to pay more in the ad. Transparency here conveys seriousness. Ultimately, factors that a job ad cannot compel—role, leadership, development, and compatibility—make the difference.

What's also important is the overall value of the position, not just the number on the paycheck. Flexible hours, home office, training, additional benefits, and a clear path to the next role carry more weight for many people than a few percentage points more in base salary—and are often cheaper for the company to provide.

Develop and retain in-house instead of just poaching

In an exhausted market, poaching alone is not enough—the pool will eventually run dry. More sustainable is to nurture specialists in-house and retain existing ones. This shifts the focus from short-term filling to mid-term securing.

• Take apprenticeships and dual training seriously: Today’s trainees become the specialists others are searching for in a few years.
• Promote retraining and career changes: structured onboarding, mentorships, and a clear learning path reduce the risk of poor placement.
• Continued education as retention: People stay where they can grow. A visible development path is a strong retention argument.
• Welcome returnees: Former employees, those returning from parental leave, and people after a break are often overlooked sources of experienced specialists.