Many more without a job

Crisis at KTM turns entire district into a problem child

In the course of the restructuring process alone, 520 employees had to leave KTM.

(Bild: Wenzel Markus)

The crisis at KTM is now also leaving its mark on the labor market. In January, the Braunau district recorded a year-on-year increase in the number of unemployed people of 31.3 percent. A total of 49,267 people in Upper Austria were out of work in the first month of 2025.

As Austria's number one industrial state, Upper Austria is feeling the full force of the loss of competitiveness among companies and the associated austerity measures - and the extent of the so-called redimensioning is becoming increasingly visible.

In January 2025, 49,267 people were out of work in Upper Austria - that's almost 6,000 more than in January 2024. Whether people under 25 or over 50 or those with health restrictions - there were significant year-on-year increases in all segments.

Production and trade suffer in particular
"Unfortunately, the effects of the poor economic development on the Upper Austrian labor market will continue in 2025," says Iris Schmidt, Managing Director of the Public Employment Service Upper Austria. The production and trade sectors in particular have seen a strong increase in the number of unemployed people.

Braunau, Vöcklabruck and Linz-Land with the strongest growth
A look at the map of Upper Austria clearly shows the consequences of the crisis surrounding motorcycle manufacturer KTM, which slipped into bankruptcy. Unemployment in the Braunau district, which includes Mattighofen as well as Munderfing and Schalchen, where the company has sites, rose by 31.3 percent year-on-year from January 2024 to 2025. In absolute figures, this means that 4,143 people were out of work in January, an increase of 987 people. There was not only strong growth in Braunau, but also in the districts of Vöcklabruck (up 18 percent) and Linz-Land (up 17.1 percent).

The number of vacancies fell to 19,033 in January 2025. In January 2024, this figure was still 22,499. "The sharpest decline in vacancies is noticeable among temporary workers," says Schmidt.