Unemployment Continues to Rise: Nearly 400,000 People Without Jobs in November

In November, the situation in the labor market did not ease. According to the Public Employment Service (AMS), at the end of the month, 399,199 people were unemployed or in training, an increase of 4.0 percent or 15,236 people compared to the previous year. This marks the 32nd consecutive increase since April 2023. The unemployment rate rose by 0.3 percentage points to 7.5 percent in November.

Unemployment: Only Slight Signs of Relief in the Labor Market

A quick improvement is not in sight: "First indications of the announced recovery in 2026, such as the slightly declining unemployment in temporary employment, are already noticeable (with a lot of goodwill and a magnifying glass), but still so minor that they suggest a manageable revival rather than strong economic growth in the new year," commented AMS board member Johannes Kopf.

Lower Austria and Styria More Affected by the Rise in Unemployment

Particularly affected by the renewed increase were the federal states of Lower Austria (plus 6.9 percent) and Styria (5.7 percent), where companies like voestalpine or Wollsdorf Leather recently announced job cuts. The numbers also rose relatively strongly in Burgenland (plus 4.9 percent) and Tyrol (plus 4 percent), less so in Upper Austria (plus 3.9 percent), Salzburg (plus 3.7 percent), Vorarlberg (plus 3.3 percent), and Vienna (plus 3 percent). As in the previous month, Carinthia stood out positively, with only a 0.7 percent increase - that is 144 people.

By sector, the AMS reported the strongest increase in health and social services with plus 16.8 percent. According to Kopf, the main reasons are statistical effects, as recently employees in the public sector were attributed to the care sector due to the outsourcing of care facilities from hospitals, he explained in the Ö1 "Midday Journal". "Additionally, it is an area where employment is generally rising strongly, and when there are more employees in a sector, there are also more unemployed, because unemployment also arises during job changes," Kopf continued. "The current numbers do not worry me."

Following the health sector are trade with 7.4 percent, transport and storage with plus 6.7 percent, as well as manufacturing or industry with 5.2 percent. Unemployment among women has risen sharply again, increasing by 6.2 percent, noticeably faster than that for men (plus 2.1 percent). "We know that the labor market situation for women is particularly difficult in some areas. That is precisely why targeted measures and real support are needed. The AMS provides around 670 million euros for this every year," said Labor and Social Minister Korinna Schumann (SPÖ) according to a ministry statement.

A trend continued with the number of reported job vacancies, which decreased by 13.2 percent to 71,933 at the end of November compared to the previous year. The job vacancy monitor of the ÖVP Economic Association, which records all online job portals, reported just under 160,000 job vacancies in November, also fewer than in the previous month. A similar development is seen in the number of open apprenticeships, which, according to the AMS, decreased by 17.3 percent compared to the previous year.

Winter Likely to Reduce Unemployment in Tourism

According to the AMS, the winter is expected to reduce unemployment in tourism, as is seasonally usual, but increase it in construction and agriculture, thereby driving up overall unemployment. After that, the number of job seekers registered with the AMS is likely to decrease again. The early Easter date will probably have at least a positive effect on the March unemployment figures, Kopf noted.

With a view to construction and tourism, among other things, the AMS board also criticized in a "Kurier" interview on Monday the "parking" of workers with the AMS, only to rehire them after a few weeks - a phenomenon particularly observed in these sectors. Kopf's solution: "One should start with working time models. In tourism, for example, there is no annual calculation of working hours. Incentives could be set in unemployment insurance, such as higher contributions or not paying unemployment benefits for the first two weeks."

Critical Reactions to Renewed Rise in Unemployment

The current data provided grounds for criticism of the government by opposition parties. The FPÖ gave it a "catastrophic report" on its economic and labor market policy activities, the Greens criticized recent "social cuts" and called for strengthening the "social safety net" in light of rising unemployment figures. The Chamber of Labor (AK) also saw a need for action, calling for increased use of the potential of people with a migration background, and the Trade Union Federation (ÖGB) demanded incentives for employment of older people. The Federation of Austrian Industries (IV), on the other hand, saw the government challenged to reduce non-wage labor costs to enable businesses to grow and create new jobs.

(APA/Red)

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