The human factor as a location factor

The economic strength of the region depends largely on the people who work, study and set up businesses here. Skills, securing a skilled workforce and openness to the international community are key to the success of transformation, innovation and growth.

Linz is a strong business location: more than half of the resident population is part of the labour force, and the employment rate for 15- to 64-year-olds stands at over 70%. At the same time, the city acts as a regional driver of employment: more than half of the jobs in Linz are held by commuters.

However, the data also highlight structural challenges: more than half of those who are unemployed have only completed compulsory education. By contrast, the employment rate rises significantly with the level of education, reaching almost 87 % among university graduates. The level of education has a direct impact on economic participation.

Untapped potential is also becoming apparent: the proportion of women working part-time is over 50 % - an indication that efforts to secure a skilled workforce must also address issues of work-life balance and work organisation.

Against a backdrop of technological upheaval, demographic trends and increasing globalisation, competition for skilled workers is becoming ever more intense. The pool of international skilled workers, students and start-up founders is increasingly becoming a key location factor.

Challenge: Skilled workers urgently needed

The 2024 Upper Austria skilled personnel monitor indicates a shortfall of around 22,000 skilled workers in the Linz-Wels region. Current forecasts suggest that there will be a shortfall of up to 83,000 skilled workers by 2040 in almost all sectors. In academic professions, this particularly affects STEM subjects (-30.8 %), business executives (-34.8 %), healthcare professions (-21.6%) and ICT specialists (-33.6%), and also, for example, skilled workers and semi-skilled labourers in the construction and transport sectors.

Apprentices are the skilled workforce of the future. In Linz, 4,117 apprentices are training at one of the 641 training companies, which together account for 19.2 % of Upper Austrian apprentices. There is a general downward trend in the number of training companies and apprentices due to demographic changes - the number of young people is falling. In Linz, the decline is less pronounced (-1.2 %) than in the rest of the province (-3.5 %).

In the competition for skilled workers, the cultural openness of a location is a decisive factor, alongside quality of life and affordability. An open-minded attitude, a sufficient range of integration programmes such as language courses, language proficiency and a welcoming culture all influence whether international talent, students and businesses see long-term prospects and potential for development in Linz.