Over 375,000 Unemployed: Unemployment Rises Again

The weak economic development continues to burden the domestic labor market. According to figures released on Wednesday, around 375,120 people were registered as unemployed or in training with the Public Employment Service (AMS) at the end of September, of which 299,180 were unemployed and around 75,940 were in AMS training programs. This marks the 30th consecutive monthly increase in unemployment figures since April 2023.

Unemployment Rises Again in September

Compared to the same month last year, the number of unemployed and training participants in September increased by 5.8 percent or 20,455 people. The unemployment rate rose by 0.4 percentage points to 7 percent.

AMS Head: Unemployment Grows "Across All Major Sectors"

"The longest economic crisis of the Second Republic is pushing more and more companies to their limits: Many can no longer 'dive through' or retain their staff for better times," explained AMS head Johannes Kopf in a statement. There are "almost weekly bad news" for the labor market, most recently from Lenzing and Unimarkt. Unemployment is growing "across all major sectors, in all federal states (only minimally in Carinthia) and affects every age group," said the AMS board. "In short: There is currently nothing positive to report from the labor market."

The AMS head assumes that "large parts" of the 620 Unimarkt employees will be taken over by competitors or other companies. Only "a small part" will probably register with the AMS, Kopf said in the Ö1 "Midday Journal". The AMS board is "more concerned" that the job cuts are now also affecting industrial companies without connections to the automotive industry.

Labor and Social Minister Korinna Schumann (SPÖ) pointed to the difficult situation for older unemployed people. "There is still a long way to go to sustainably and permanently improve the labor market situation for employees over 55." There needs to be "especially a change in thinking among employers," said the labor minister.

Strong Increase in Unemployment in Industry and Trade, Construction Relatively Stable

According to AMS, the industries most affected by the rise in unemployment were once again manufacturing and trade, as well as the federal states of Tyrol, Salzburg, and Upper Austria. The largest percentage increase in unemployed people and those in AMS training at the end of September compared to the same month last year was in the health and social sector (+16.9 percent), trade (+9.8 percent), manufacturing/industry (+8.8 percent), and transport and storage (+8.8 percent). The increase was lower in the gastronomy and accommodation sector (+4.7 percent) and in construction (+0.7 percent). There was no percentage change in unemployment figures in temporary employment.

"The above-average increase in the health and social sector is mainly due to statistical reasons," AMS stated in the summer. In addition to the sharply rising employment due to the higher demand for care, employment is also increasing because more and more care and health facilities, which were previously run by the public sector, are being outsourced. These employees would no longer be counted as public servants in the statistics but would be attributed to the health and social sector, explained the AMS. Consequently, the number of employees and unemployed in this area has noticeably increased.

The ongoing economic downturn is also noticeable in job advertisements. The immediately available open positions reported by companies to the AMS fell by 14 percent to 78,677 at the end of September compared to the same month last year. The ÖVP Economic Association records all online job portals in its job monitor and noted 161,455 open positions in Austria.

Employee and Economic Representatives as well as FPÖ See Need for Action

FPÖ social spokesperson Dagmar Belakowitsch called on the ÖVP/SPÖ/NEOS government in a statement to solve "the massive problems in the Austrian labor market." WKÖ Secretary General Jochen Danninger sees "currently light and shadow in the labor market," because alongside bad news about the unemployed, there is also good news due to the increasing employment of older workers. IV Secretary General Christoph Neumayer urged once again for "a serious implementation" of bureaucracy reduction and structural reforms in view of the labor market and economic situation. For Economic Association Secretary General and ÖVP economic spokesperson Kurt Egger, "abuse of social benefits" by employees undermines the domestic labor market.

WKÖ Secretary General Jochen Danninger sees "currently light and shadow in the labor market," because alongside bad news about the unemployed, there is also good news due to the increasing employment of older workers. IV Secretary General Christoph Neumayer urged once again for "a serious implementation" of bureaucracy reduction and structural reforms in view of the labor market and economic situation. For Economic Association Secretary General and ÖVP economic spokesperson Kurt Egger, "abuse of social benefits" by employees undermines the domestic labor market.

ÖGB Federal Managing Director Helene Schuberth, on the other hand, criticized the "parking" of workers at the AMS by companies as "social fraud." AK President Renate Anderl once again advocated for an increase in the net replacement rate of unemployment benefits and family allowances to better secure job seekers. Vida union leader Roman Hebenstreit called for the removal from the shortage occupation list for industries with labor shortages "that refuse to raise their employees' wages above inflation."

(APA/Red)

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