Economy in Trades and Crafts Stagnates: WKÖ Calls for Reduced Dependencies and More Apprenticeship Promotion

"Die wirtschaftliche Lage hat sich leider kaum verbessert", says Manfred Denk, Chairman of the Federal Division of Trades and Crafts in the Austrian Federal Economic Chamber (WKÖ). Denk pointed to the ongoing reluctance of households to spend, especially in consumer-facing industries, as well as a lack of investment momentum in the construction sector. The division has not recorded any dynamic development in orders and revenue so far this year.

Enichlmair explained that the balance of the sentiment barometer remains in negative territory, with order backlog showing a slight decline of 0.2 percent in the second quarter of 2026, roughly at the level of the same period last year. She pointed to "heterogeneity" across the industries, but nevertheless noted a "seasonal slight upturn" that could be assessed positively.

Winners and Losers in the Industry Comparison

Expectations for the third quarter of 2026 are also pessimistic: only 16 percent of businesses expect an increase compared to the third quarter of 2025, 57 percent expect no change, and 27 percent expect declines. "Auftragseingangs- und Umsatzerwartungen trüben sich ein", explained Enichlmair. "Ich fürchte, wir dürfen uns nicht auf die Hoffnung verlassen, dass die Krisen ein baldiges Ende haben", Denk added.

However, the development varies: some capital-goods-related industries reported rising order backlogs in the second quarter of 2026 compared to the same period the previous year, according to KMU Forschung Austria, including stove fitters, tile layers, and ceramicists (+10.1 percent), the construction trade (+8 percent), the chemical trades (+4.7 percent), and metalworkers (+4.2 percent). Upper Austria recorded a slight upturn.

The largest declines were recorded by plastics processors at minus 15.3 percent, the construction-related trades at minus 14.9 percent, and timber construction at minus 11.5 percent. These sectors are suffering particularly from international uncertainties and weak investment appetite. "Besonders in den konsumnahen Branchen spüren wir die Kaufkraftzurückhaltung der Haushalte, während im Baubereich nach wie vor die notwendige Investitionsdynamik fehlt", Enichlmair summarized.

Political Demands from the WKÖ

WKÖ Chairman Denk formulated political demands on this basis. Austria and Europe must "selbst den Weg aus der Stagnation bahnen" ("blaze their own path out of stagnation"). Above all in construction, "unserer wichtigsten Konjunkturlokomotive" ("our most important economic locomotive"), the reluctance is felt most keenly. Without appropriate stimuli, the trades and crafts sector in Austria will not have "a positive development", Denk is certain.

A central concern of the WKÖ is apprenticeship promotion. In the double budget, 280 million euros are earmarked annually for apprenticeship promotion, as before. Denk directed criticism at Labor Minister Korinna Schumann (SPÖ): "Hören Sie auf, die Lehre schlecht zu reden", he said in her direction. He accused the minister of "die Lehre schlecht zu reden" and thereby dissuading young people from pursuing training in the trades.

Apprenticeships as an Economic Lever

The Austrian Federal Economic Chamber sees the strengthening of apprenticeship training as a key lever for addressing the skilled labor shortage and stimulating the economy in the long term. The demand for fewer dependencies and more investment in training is intended to pave the way out of stagnation.

Overall, the KMU Forschung Austria economic report for the second quarter of 2026 paints a mixed picture: while individual sectors do show positive tendencies, the overall situation remains tense. Order backlog is only slightly below the previous year's level, business sentiment is subdued, and the outlook for the third quarter is modest.