On March 5, 2025, Dr. Johannes Kopf, Chairman of the Austrian Public Employment Service (AMS), delivered a Policy Talk at CEU, addressing the evolving labor market in Austria and Europe. The talk explored core challenges policymakers in advanced economies are currently grappling with, such as demographic shifts, migration, digitalization, and changing workforce values.
Dr. Kopf provided a historical perspective, highlighting economic fluctuations from 2009 to 2024. While Austria initially maintained low unemployment rates, it saw significant shifts in labor market dynamics due to post-Soviet EU accession states and migration waves. COVID-19 and shifting work preferences, such as reduced hours and increased job mobility, further reshaped employment patterns.
Demographic trends pose a major challenge ahead, with population declines projected across Austria (except Vienna) by 2050. While a gradual increase in the female retirement age has temporarily slowed workforce shrinkage, Austria’s economic stagnation (-0.9% GDP growth in 2024) and evolving worker expectations - such as flexibility, work-life blending, and autonomy - are transforming how businesses attract talent.
To address labor shortages, Dr. Kopf outlined several strategies Austria can explore: third-country recruitment, longer careers, higher female workforce participation, and enhanced qualification programs. Digitalization and automation will also redefine job requirements, with 60% of jobs demanding new skills in the future.
Dr. Kopf emphasized that while technology may initially displace jobs, historical patterns suggest it could ultimately create new employment opportunities. Looking ahead, the labor market will continue evolving - becoming more flexible, digital, international, and ecological - requiring proactive policies to ensure sustainable growth.
After the talk, Dr Kopf engaged in a lively discussion with the audience.
Article by Anna Dreimann, MA in International Public Affairs student
Upcoming Policy Talks:
March 19: Psychology of Tax Behavior: Two Decades of Research at the University of Vienna - with Erich Kirchler, Professor of Economic Psychology
March 25: Mega Trends in Global Aid Architecture - with Akihiko (Aki) Nishio, World Bank Vice President for Development Finance
April 9: Policy Talks with Bernadett Szél, economist and sociologist with a unique intersection of skill sets from business management, politics, and academia.
The Policy Talks series are organized and hosted by the Department of Public Policy. The series provides a platform for engaging discussions on critical issues in public policy and brings together distinguished speakers from academia, politics, public administration, and civil society. These events are open to all members of the university and the public at large and advocate for social change and responsible governance.