Higher qualification: key to new jobs

centrope newsletter

Education and qualification: the key to further employment growth in CENTROPE

While fears surrounding the opening of the Austrian labour market for employees from neighbouring country are overblown, the real challenge lies in raising educational levels. It is only with a bigger share of highly qualified persons that CENTROPE can become fit for the knowledge economy.

New frame condition for CENTROPE: a common labour market

Few topics of recent years were as contentious as the transition period granted to the Austrian labour market for employees from eight Member States which had acceded to the European Union in 2004. The expectations generated by the opening-up of the labour market were understandably different on either side of the former Iron Curtain. In Austria, the emphasis was principally on the negatives rather than on the positives. However, the job market opening can bring more gain than loss, as Johannes Kopf, member of the Board of Directors of AMS (Public Employment Service Austria), underlines. During a panel debate at the Győr CENTROPE Summit, he emphasised that fears about cheaper workers from neighbouring countries “stealing” jobs from Austrians are unfounded: people will choose to look for a job in Austria only if there are enough jobs available.

Raising qualification and educational levels is essential for the welfare of the region

Meanwhile, the real challenge for maintaining employment and creating new jobs lies elsewhere: only high levels of qualification and education will ensure the competitiveness of CENTROPE in the knowledge economy. However, this is where CENTROPE is facing problems, as its workforce is too low on persons with a tertiary degree. While an average 20% of the EU 27 working-age population has completed a university or university-type curriculum, this figure for CENTROPE stands at only 15.4%. The facts that the share of persons with only compulsory education is considerably lower in CENTROPE than the EU average and that a remarkable 62% have secondary education give only small comfort. This situation is further exacerbated because many young people with tertiary education decide to leave CENTROPE and try their luck elsewhere, making brain drain a very real hazard for the region.

Thus boosting the educational potential of the region, especially with regard to the tertiary sector, is essential for CENTROPE in the context of global competition. This means not only that more people should attend universities and further education; rather, improved co-ordination between the educational systems of the four countries, the facilitation of cross-border employment and mutual recognition of qualifications are also called for. However, a satisfactory level of harmonisation of educational standards has not yet been achieved, as higher education in CENTROPE still lacks a systematic approach at cross-border level, as Ivo Nesrovnal, Deputy Governor of the Bratislava Region, comments. This systemic change may be achieved through the fostering of high qualification standards and research and development throughout the region. The way towards these goals is eased by the recent opening-up of the Austrian labour market – one of many steps towards an integrated and highly efficient CENTROPE common market.