Skills Mismatch

When Skills Go Unused: Why Many Migrants Work Below Their Qualifications in Austria

Inara Habibzadeh
Study Skills Mismatch

Austria needs skilled workers. At the same time, many migrants with strong qualifications are working in jobs far below their training. This phenomenon does not only negativel affect the concerned individuals, but also the labour market and society as a whole. An EMN Austria study takes a closer look at why this happens and what can help change it.

What does “skills mismatch” mean?

Skills mismatch describes a situation where a person’s education or experience does not match the requirements of their job. A common form is overqualification, where someone with higher education works in a role that requires much less training. This is not a rare exception. In Austria, it affects migrants more often than people born in the country.

Why migrants are especially affected

Migrants are not a heterogenous group, and their paths into the labour market differ widely. Still, the study shows several recurring challenges. Language barriers play a central role. Limited German skills can also hinder access to jobs that match a person’s qualifications.

Another major factor is the system of recognition of foreign qualifications. Procedures are often complex, time-consuming and costly. As a result, many migrants decide not to apply for recognition at all and instead accept any available job to secure income and residence.

Contextual factors that facilitate skills mismatch

Migrants often live in regions where suitable jobs are scarce, while labour shortages exist elsewhere. At the same time, income requirements for residence permits can create pressure to find work quickly – sometimes at the expense of long-term career prospects.

Austria’s labour market system, with its strong focus on formal certificates and vocational pathways, can also be difficult to navigate for people who were trained abroad.

Gendered differences

The study highlights that women are more frequently affected by skills mismatch. This is particularly visible in regulated professions, such as parts of the health sector. Limited access to networks, care responsibilities and a lack of tailored support can further restrict opportunities for migrant women.

What is already being done – and what is missing

Austria has introduced a range of measures to address skills mismatch. These include counselling on qualification recognition, language courses, mentoring programmes and qualification training. Most of these initiatives focus on supporting (migrant) employees directly.

Less attention is given to employers, for example through incentives or guidance to encourage hiring in line with qualifications. The study suggests that better results require approaches that involve both sides of the labour market.

Why the findings matter

When skills go unused, everyone loses. Migrants face lower incomes and fewer opportunities. Employers miss out on talent. The economy loses productivity and innovation. 

The EMN Austria study explores this issue in detail and outlines where policy and practice can better support qualification-adequate employment. Readers interested in labour market integration, or migration policy are encouraged to explore the complete publication.

EMN Austria Study by Anna Ammann & Leila Hadj Abdou

Sustainable Labour Market Integration of Migrants - Drivers of Skills Mismatch and Skills Matching Policies and Initiatives