Nearly half of Tyrol’s industrial firms expect to cut jobs

Forty-four percent of industrial companies in Tyrol expect to employ fewer people over the next three months, according to a survey by the Tyrol branch of the Federation of Austrian Industries, reported by ORF. The figure nearly doubled from 23 percent in the previous quarter.

Across Austria, the share of companies expecting to reduce staff fell from 28 percent to 24 percent. The federation said it was unclear how many jobs in Tyrol could be affected.

The Tyrol survey was conducted for the federation by the Institute for Applied Economic Research in Innsbruck. Thirty-three companies, with almost 20,000 employees between them, took part, representing nearly half of the region’s industrial firms.

The business climate index, based on assessments of current conditions and expectations for the following six months, fell in Tyrol from 24 to 20.5 points.

Federation director Michael Mairhofer said the prospect of staff cuts was a serious concern. Weaker orders and uncertainty are making it harder for companies to plan investments, he said. A shortage of skilled workers is also prompting some businesses to automate individual work processes.

Companies are trying to retain skilled employees despite weaker orders because it can be difficult to hire them back when business improves, Mairhofer said. But he said some firms could cut jobs if orders continue to decline.

Despite the short-term employment outlook, the Institute for Applied Economic Research forecasts that Tyrol’s industry excluding construction will grow by 1.8 percent next year. It expects growth of 0.9 percent for the region’s industry overall. Mairhofer said orders were strong in the energy and environmental sectors, and the pharmaceutical industry was also performing positively. Whether the forecast growth for 2027 will create more jobs remains uncertain.