the taxes on eonsumption are on international level and direet taxes are eon- siderably lower. Possibilities of redueing the tiseal burden on the faetor of labour may be found e.g. in the seetor of the "Kommunalabgabe" (municipal tax), "Familienlastenausgleieh" (system of tinancing transfers to families) and Wohnbauförderungsbeitrag (tiseal eharges for subsidizing the eonstruetion of housing). These eharges eould be replaeed by other forms of taxation, but eomprehensive ehanges of the tax and tiseal burden on the faetor of labour re- quire an all-European solution. 2. Recommendations 2.1. Skills 2.1.1. Skil/s as a Locational Factor For highly developed industrial eountries, the skills of the employees repre- sent a decisive eompetitive element. The Austrian edueational system must therefore reaet swiftly and flexibly to eeonomic and teehnieal ehanges. In its "Jobs Study" the OECD points out that poor flexibility of the edueational sys- tem ean eontribute to inereasing unemployment. Edueation and voeational training are of great importanee for the attraetive- ness as an industrial loeation and for the prospeets in the labour market. An inerease in the level of ability does not only strengthen the employment oppor- tunities of the individual but also inereases the eompetitiveness of the eeon- omy as a whole as weIl as the flexibility in the labour market. 2.1.2. Further Vocationa/ Training This study eoncentrates on further voeational training which increases its importanee in a rapidly changing working world. Further vocational training starts after the initial education and should be possible any time as Iifelong leaming and voeational training. lt should be interlinked with work in various stages, taking into account the aeeess of groups not yet ineorporated into fur- ther vocational training and making participation feasibIe for companies. The numerous forms of further vocational training include vocationaI training for adults, in-eompany training, upgrading qualitication training for employees e.g. master qualiflcations in trade on a supervisory level, as weIl as training for unemployed. In general, Austria has quite a good starting position, beeause at least in ur- ban centers it provides a well-developed system of vocational training. In cer- tain flelds, however, the development of a demand-oriented voeational training system taking into aeeount regional requirements is inadequate. In eooperation with the regional authorities, the faeilities offering voca- tional training must see that further training is offered universally and ean ac- 19