Lower Austria's industry expects job cuts: Economic barometer falls to minus 28.8 points

Economic barometer continues to fall

The economic barometer of the Federation of Austrian Industries Lower Austria (IV-NÖ) fell in the second quarter of 2026 from minus 19.8 to minus 28.8 points. The already negative trend has thus intensified further. IV-NÖ Managing Director Michaela Roither sees this as a clear signal: "Wenn Betriebe dennoch mit weniger Personal rechnen, zeigt das, wie ernst die wirtschaftliche Lage ist", says she.

WKNÖ President Wolfgang Ecker presented the results of the survey. He sees at least initial signs of stabilization, but does not yet speak of a trend reversal. "Es gibt keine echte Trendwende, aber zumindest Zeichen für eine Stabilisierung", says Ecker. The planned relief of 1.5 billion euros is important, but not sufficient.

Main demands: Non-wage labor costs and reduction of bureaucracy

According to the survey, two topics are at the top of the demands on policymakers: In first place is the reduction of non-wage labor costs, which 80 percent of companies demand, followed by the reduction of bureaucracy. "Die geplante Senkung der Lohnnebenkosten im Jahr 2028 kann nur der erste Schritt sein", emphasizes Ecker. Companies expect noticeable and, above all, rapid relief.

The loss of skilled workers is also a cause of concern for companies. "Niemand plant leichtfertig, gut ausgebildete Fachkräfte abzubauen", it says from the Economic Chamber. Nevertheless, many companies evidently feel compelled, given the order situation, to reduce positions or at least not refill them.

Differences between sectors

There are clear differences between sectors. While the chemical, wood, and electrical and electronics industries are comparatively stable, the situation in the metal sector remains "äußerst angespannt" according to IV-NÖ. Even within industry, sentiment is therefore not uniform; the pressure is concentrated above all on individual sectors.

Overall, the summer economic radar paints a mixed picture: A real trend reversal is not in sight according to the survey, while at the same time companies see initial signs of stabilization. The coming months will show whether the announced political relief measures – above all the planned reduction of non-wage labor costs – can sustainably improve sentiment in Lower Austrian industry.