Unemployment Continued to Rise in October: 388,000 People Affected

The unemployment rate rose by 0.4 percentage points to 7.2 percent, the AMS announced on Monday. The monthly unemployment figures have thus increased for the 31st consecutive time since April 2023.

An end to the negative trend is not really in sight: Although growth is slowly reappearing, "the dynamics do not correspond to previous upswings," commented AMS board member Petra Draxl on the development. "The international indicators are still poor and inflation is very high. We therefore expect a further increase in unemployment in the first half of 2026 and only a decline from mid-year," Draxl said.

Unemployment: Lower Austria and Styria with the strongest increases

The industrially influenced federal states of Lower Austria, Styria (each plus 6.8 percent), and Upper Austria (5.9 percent) were disproportionately affected by the renewed increase. They were followed by Burgenland (plus 5.8 percent), Vorarlberg (plus 4.3 percent), Tyrol (plus 4.1 percent), Salzburg (plus 3.9 percent), and Vienna (plus 3.1 percent). Carinthia performed best with only a slight increase of 0.6 percent.

By sector, trade (plus 3,850 people) and industry (plus 2,000 people) recorded the strongest absolute increase in unemployed or people in training. The rise in female unemployment (plus 6.5 percent or 11,350) compared to that of men (plus 2.6 percent or 5,100) is also noticeable. One reason for this is the gradual increase in the retirement age for women, which, while leading to higher employment among older women, naturally also results in more unemployed in this group. Among nationals, the number of unemployed increased by 5.3 percent or around 11,200 people, rising more sharply than unemployment among foreigners (plus 3.3 percent or 5,300 people).

The number of job vacancies, however, slightly increased compared to the previous month, as indicated by the job monitor of the ÖVP Economic Association. At the end of October, it reported around 164,000 vacancies, mainly in the tourism and hospitality sectors, according to a press release.

Fewer Apprenticeships

Compared to the previous year, the number of (immediately available) job vacancies, according to AMS figures, decreased significantly by 12.8 percent. A similar trend is currently observed in apprenticeships, whose number decreased by 16.4 percent compared to the previous year. According to Draxl, this is mainly due to the current weakness of the industry, as she stated in the Ö1 "Midday Journal".

Criticism from FPÖ and Greens

The renewed deterioration in the labor market gave rise to criticism from the opposition. While the FPÖ saw it as a "catastrophic testimony to the economic policy incompetence of the black-red-pink loser coalition," the Greens believe the government is getting lost in debates about "pointless and expensive tax giveaways" without taking effective measures. In light of the figures, the Federation of Trade Unions (ÖGB) and the Chamber of Labor (AK) insisted on the expansion of further training and qualification measures, while the Federation of Austrian Industries (IV) called for a reduction in bureaucracy and labor costs for companies.

(APA/Red)

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