AMS boss in conversation

Labor market

250 redundancies have already been made at KTM in the course of the insolvency, and now

(Bild: Scharinger Daniel)

46,246 people were registered as job seekers with the Public Employment Service on December 31, which means the unemployment rate has risen to 6.4 percent. "We are feeling the effects of insolvencies here - especially in the retail sector," says Iris Schmidt. How are Upper Austrians dealing with job losses? What's next for KTM? We asked the Managing Director of AMS Upper Austria.

46,246 people without a job, including 17,392 women and 28,854 men; 9751 people in training; the number of vacancies has fallen to 19,229 - these are the figures published by the Upper Austrian Public Employment Service on Thursday for December 2024. Looking ahead to 2025, many are asking themselves: What will it be like? Will there be a huge increase in unemployment?

"The business location is still strong"
"Despite the difficult environment, companies were able to maintain a relatively high level of employment - this is a good effect and definitely positive because it shows how strong the business location still is," emphasizes Iris Schmidt. The Managing Director of the Public Employment Service Upper Austria believes that small and medium-sized companies in particular are currently the strong backbone of the labor market.

Iris Schmidt is Managing Director of the Public Employment Service Upper Austria.

(Bild: Wenzel Markus)

To what extent is the mega-bankruptcy at KTM already having an impact on the labor market? The insolvency of the motorcycle manufacturer, for which three restructuring proceedings were opened on November 29, is hardly having any impact at the moment, even though the first of the 250 employees who were made redundant at the beginning of December have already been registered with the AMS.

In the role of a "safety net"
Many are still in the redundancy phase and will only reorient themselves a little later. Schmidt is aware that each of those affected will approach the new situation differently: "The most important thing is that people know that they have a safety net and know where they can go if they need something."

Just a few days after the 250 redundancies were announced, the AMS held a meeting at KTM together with the Chamber of Labor - what will the procedure be for the second wave of redundancies, in which up to 300 employees are expected to lose their jobs? "We have set up our teams. They are always available and can be called upon at any time, but we will see what is needed now." Schmidt continues: "It's a stressful situation for people - some don't want to talk to anyone and don't want to travel anywhere, including to a regional office. They prefer to use our electronic services. That's fine for us too."

Joining the insolvency foundation possible from February
Preparations for the insolvency foundation, which is financed jointly with the state of Upper Austria, are in full swing. "It's making good progress," says the head of AMS Upper Austria. From February, people will be able to join the foundation and take advantage of the opportunities it offers for reorientation and further training. However, the primary goal remains to place people directly.

"Don't know the dimension"
Is there already a sense that suppliers are coming under pressure or even being squeezed? "I think most of them are currently in a consolidation phase, in which it is only really becoming clear to them what the situation at KTM means for them," says Schmidt. He continues: "We assume that there will be redundancies, but we don't know the extent."