338,051 without a job

Unemployment up 9.9 percent in June

(Bild: APA//ROBERT JAEGER)

The stagnating economy continues to cause unemployment figures to rise. At the end of June, 338,051 people were registered as unemployed or in training with the Public Employment Service (AMS), of which 264,018 were unemployed and 74,033 were in AMS training measures. Compared to the same month last year, the number of unemployed and AMS training participants rose by 9.9% or 30,319 people. The unemployment rate increased by 0.5 percentage points to 6.2 percent.

As long as the economic dynamics do not become stronger, the labor market will be under pressure, said Minister of Economy and Labor Martin Kocher (ÖVP) at a press conference in Vienna on Monday. It will "take some time" before the economic upturn expected for the fall makes itself felt on the labor market. However, Kocher pointed out that we currently have "the third-lowest unemployment rate of the last ten years on June 30" and that there are "a lot of vacancies". "Only in 2022 and 2023 was the unemployment rate even lower due to catch-up effects after the coronavirus pandemic."

Largest increases in unemployment in goods production and construction
Compared to the same month last year, the largest increases in unemployed persons and people undergoing AMS training at the end of June were in goods production/industry (+16.4%), construction (+16.2%), transport and storage (+12.5%), trade (+12%) and catering and accommodation (+11.2%). The rise in unemployment in the temporary employment sector (+8.1 percent) and in the health and social services sector (+7.6 percent) was somewhat lower, but still strong.

AMS boss: "Economy has a lot to do with psychology"
AMS Director Johannes Kopf hopes that the success of the Austrian soccer team at the European Championships will have a positive psychological effect on Austria's economy. As there is "currently no silver lining on the horizon" in the AMS figures and "the economy has a lot to do with psychology", "we are grasping at straws": "May further successes by our national team create the euphoria that will allow companies and households to regain confidence," said the AMS boss in a statement.

Decline in job vacancies
The weakening economic development in Austria is also making itself felt on the job market. At the end of June, just under 98,000 vacancies were registered as immediately available at the Public Employment Service, a fall of around 17 percent compared to the same month last year. The ÖVP-Wirtschaftsbund records all job portals in its job monitor and recorded over 175,500 vacancies. The number of people in employment in this country increased slightly by 0.1% or 2,000 people to 3.990 million.