No upswing

Unemployment rose to 6.4 percent in July

At the end of July, ten percent more people were unemployed than a year ago. The unemployment rate was 6.4 percent, as announced by the Ministry of Labor and the AMS on Thursday. Goods production, construction and tourism were particularly affected.

Unemployment in these sectors rose by up to 18 percent. A total of 341,769 people were registered as unemployed or in training with the Public Employment Service Austria (AMS) at the end of July. "The labor market data is a reflection of the weakening economy," said AMS Director Petra Draxl.

In July, more men were unemployed than women, and the increase was twice as high for people without Austrian citizenship as for nationals. This time, there were few differences in education level and age.

Here you can see how the unemployment rate has developed since 2012.

In a comparison of the federal states, unemployment has risen in Vienna in particular (by 7.1 percent). Here, people in retail, goods production, hotels, restaurants and construction are particularly affected. While the number of job vacancies in Vienna has risen, the number of apprenticeship vacancies has fallen significantly.

Burgenland had the second-highest unemployment rate at the end of July, followed by Carinthia and Lower Austria. The lowest rates were in Tyrol and Salzburg.

Here you can see the figures for each group.

Vacancies in the service sector
Across Austria, there were eleven percent fewer vacancies in the second quarter of 2024 than in the previous quarter. According to Statistics Austria, most vacancies were in the service sector. In addition, staff were particularly sought after in production and the public sector.

"As the Federal Ministry of Labor and Economic Affairs, we have developed the Skilled Labor Barometer together with the AMS, which can be accessed online. The new quarterly data (...) with 51 bottleneck occupations across Austria show that there is still a great need for well-trained skilled workers. We are currently seeing a particularly high demand for skilled workers, for example in the field of electrical installation, with over 3,300 vacancies," said Minister of Labor and Economy Martin Kocher (ÖVP) in a press release.

Waves of redundancies feared
Draxl does not expect an upturn in the labor market until the end of the year at the earliest. She even fears waves of redundancies. The AMS already has corresponding consultation appointments and reports in the early warning system. Short-time work will also increase again.