AK Report: Austria with Declining Prosperity

The Chamber of Labor (AK) has identified a further deterioration in prosperity in Austria. This is evident from its eighth prosperity report, which was presented at a press conference in Vienna. Only isolated slight improvements can be seen, such as in the employment rate and the reduction of greenhouse gases. The fight against inflation, fair distribution, and achieving climate goals remain core issues.

Five Defined Goals

Since 2018, the report has annually analyzed five defined societal goals, which according to Sybille Pirklbauer, head of the social policy department, "belong to prosperity and a good life." The assessment of the development of the target areas is based on specific indicators. "In four out of five goals, we have overall recorded a setback," said Pirklbauer.

In the goal of "fairly distributed material prosperity," there is still a strong wealth inequality - even in comparison with the EU. Although the income of the middle class increased due to good wage agreements, the gap between high and low incomes widened, especially due to setbacks in social benefits. The gender pay gap is closing only slowly.

In "full employment and good work," the slightly increased employment rate is positive, but it is currently deteriorating again, according to Pirklbauer. The number of underemployed people - those who are not allowed to increase their working hours - is increasing significantly. Inequality also remains high in care work: women continue to take on the majority of unpaid care for relatives.

Decline in "Quality of Life"

The "quality of life" has overall also decreased: Life satisfaction has declined, but also the risk of poverty and social exclusion and low qualification, which would, however, be below the target value. More and more people would have problems managing daily expenses, emphasized Pirklbauer.

In the area of "intact environment," Lukas Oberndorfer, head of the climate and environment department, highlighted the decreasing greenhouse gas emissions, which would slowly approach climate targets - however, mainly due to weak economic conditions, mild winters, and high energy prices. The supply of public transport has slightly improved.

In the goal of "overall state stability," Matthias Schnetzer, AK chief economist, emphasized that "price stability in Austria is not given" and thus planning and investments are made more difficult. The years of productivity growth are flattening, but labor productivity is above the EU average.

Demands from AK

In response to the developments, the AK recently called for measures against inflation, such as a price database along the value chain, an anti-inflation commission, the abolition of the Austria surcharge, as well as a rent cap and an end to temporary contracts. Additionally, a basic child security and a fairly financed welfare state, among other things through progressive inheritance and wealth taxes.

(APA/Red)

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