The gap in economic development between regions narrowed significantly in 1998. Much of the effect can be explained by the increasing maturity of the business cycle, i.e., a boom that is fuelled not just by exports but also by domestic demand components. Nevertheless, those Länder which had obtained the greatest benefit from the international upswing already in its initial phase – "industrialised" Styria and Upper Austria – still enjoyed the strongest economic growth. Carinthia, Tyrol and Vorarlberg narrowed the gap; and Lower Austria and Burgenland derived benefits from decentralisation in the eastern region. Labour market data, broken down by districts, give rise to the conclusion that other highly centralised areas have structural problems similar to those in Vienna. In Salzburg, the boom in new companies founded in the late 1960s and early 1970s may well be the reason for the greater need of reorganisation currently felt. In seven Länder, employment grew by 1 to 1.5 percent, while in Vienna and Salzburg figures remained virtually unchanged over the previous year. High productivity growth rates achieved by Burgenland and Styria in particular indicate a rapid pace of structural change.