Unemployment Rose by 4.2 Percent in August

The bleak economic situation continues to weigh on the labor market. At the end of August, a total of 367,120 people were registered with the Public Employment Service (AMS), of which 301,421 were unemployed and 65,699 were in training programs. Year-on-year, the number of unemployed and training participants increased by 4.2 percent or 14,864. The unemployment rate was 7.0 percent (up 0.3 percentage points year-on-year).

"The economic conditions do not yet indicate a trend reversal in the labor market," said AMS board member Petra Draxl according to a press release on Monday. Overall, the bottom of the labor market development has not yet been reached. For this year, the Economic Research Institute (Wifo) forecasts stagnation in economic performance, after two years of recession.

"In view of tight budgets, coordinated employment policy initiatives are needed to strengthen overall economic demand and secure employment growth," said Social Minister Korinna Schumann (SPÖ) according to a press release on Monday. Particularly important is the support for the long-term unemployed.

Decrease in Job Vacancies

The economic downturn is also affecting job advertisements. The number of immediately available job vacancies reported by companies to the AMS fell by 12.9 percent to 80,838 in August. Similarly, the number of immediately available apprenticeships decreased by 13.6 percent year-on-year to 7,462. Thus, in August, there were 3,743 more apprenticeship seekers than available apprenticeships.

According to the AMS, those particularly affected by unemployment were people over 50 years old (+6.0 percent to 96,891). Youth unemployment (under 25 years) increased by 3.9 percent in August. The number of unemployed or women in training increased by 5.8 percent to 175,684, while unemployment including training participants among men and people of alternative gender increased by 2.8 percent to 191,436. There were also significant increases among people with academic education (+11.7 percent to 40,197) and people with disabilities (+12.4 percent to 16,856). The number of long-term unemployed rose by 10.8 percent to around 93,700.

More Unemployed and Training Participants in Vienna

According to AMS, the states most affected were those characterized by industry and tourism: Salzburg (+7.3 percent), Tyrol (+6.4 percent), Upper Austria (+6.3 percent), and Styria (+5.1 percent). In Vienna, the number of unemployed and training participants increased by 3.5 percent to 154,591.

In a sector comparison, the increase in unemployment was most pronounced in trade (+6.9 percent) and industry (+6.7 percent). This was followed by transport and storage (+5.9 percent) and accommodation and gastronomy (+4.2 percent). A decrease of 1.4 percent in construction could be a "first silver lining on the horizon," according to AMS. The health and social sector (excluding other social services) also recorded a significant increase of +12.3 percent.

Call for Reduction of Bureaucracy

Against this background, the Federation of Austrian Industries (IV) called for a reduction of bureaucracy in the labor market: "Constantly new regulations" are counterproductive, said IV Secretary General Christoph Neumayer in a statement on Monday. The Chamber of Labor (AK) focused on the automotive supply industry: AK President Renate Anderl called for a "realignment of mobility in Austria and the EU" in a statement, mentioning, among other things, the expansion of public transport and the implementation of the ÖBB expansion strategy. The union (ÖGB) criticized short-term unemployment, with which companies "park their employees at AMS during weak times."

For FPÖ social spokesperson Dagmar Belakowitsch, the 4.2 percent increase in unemployment is "simply a number of failure," and she sharply criticized the government of ÖVP, SPÖ, and NEOS. The Greens criticized, among other things, the lack of a successor regulation for the abolished educational leave and part-time education. "We need actions instead of words," said labor and social spokesperson Markus Koza in a statement.

(APA/Red)

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