Unemployment in Austria rises dramatically by 6.9 percent!

Unemployment in Austria rises dramatically by 6.9 percent!

At the end of May 2023, a total of 375,347 people in Austria were registered with the Public Employment Service (AMS) as unemployed or in training. Of these, 296,140 people were unemployed, while 79,207 participants were in AMS training courses. Compared to the same month last year, the number of unemployed and training participants rose by 6.9 percent, which corresponds to 24,196 additional people. This led to an increase in the unemployment rate of 0.5 percentage points to 6.9 percent, as the standard reported.

The increase in unemployment numbers in Austria has been observed since April 2023. Economic researchers from Wifo and IHS predict a third year of recession for 2023 and expect a further increase in unemployment. AMS board member Johannes Kopf commented on the current situation and emphasized that without substantial economic growth, unemployment will not decrease despite an increasing labor supply.

Industry-specific developments

Several key sectors are particularly affected by rising unemployment. In goods production and industry, there was the largest percentage increase in unemployed people and training participants compared to the same month last year, with an increase of 13.8 percent. Unemployment also rose by 12 percent in the health and social services sector, while the retail sector recorded an increase of 9.3 percent. In addition, there was an increase in transport and warehousing of 6.8 percent and in catering and accommodation of 6.5 percent, so sn.at.

Unemployment in construction and temporary employment remained almost unchanged, with increases of just 0.1 percent and 0.3 percent. These developments show a clear sector dependency of unemployment and highlight the challenges facing the economy.

Forecasts for the future

A number of 3.965 million employed people is forecast for May 2025, which corresponds to an increase of 2,000 employees compared to the previous year. However, such positive employment figures could be clouded by persistently high unemployment and economic uncertainties. It remains to be seen whether economic policy can provide the necessary stimulus to reduce the unemployment rate.