The weakening economy is causing unemployment to rise further. At the end of February, 429,940 people were registered as unemployed or in training with the Public Employment Service (AMS), of which 347,424 were unemployed and 82,516 were in AMS training programs. This represents an increase in unemployment of 27,643 people compared to the previous year, the Ministry of Labor announced on Monday. Unemployment figures have been rising since April 2023.

Unemployment Rate at 8.1 Percent

The unemployment rate was 8.1 percent at the end of February. According to the Ministry of Labor, 97,424 apprentices are currently being trained in Austrian companies, 28,796 of them in their first year of apprenticeship. Currently, there are more people seeking apprenticeships than available positions: 7,891 young people are registered as seeking apprenticeships with the AMS, and the number of available apprenticeship positions is 7,616.

Decline in GDP

The domestic economic performance also declined in the fourth quarter of 2024. According to calculations by Statistics Austria, the Gross Domestic Product (GDP) fell by 0.4 percent in real terms compared to the previous quarter, with an annual decrease of 0.5 percent. "This means that Austria is experiencing the longest period of weakness since the corresponding calculations began in 1995," explained Statistics Austria Director General Tobias Thomas in a press release on Monday.

Overall, domestic economic performance decreased by 1.1 percent in 2024 compared to the previous year, according to preliminary calculations. "Austria remains in recession, which has now lasted for two years. At the end of 2024, economic performance declined again, although not as sharply as before," said the head of statistics.

The negative development in the fourth quarter affected almost all economic sectors, with the most significant impact on manufacturing, construction, and hospitality. However, there were positive growth rates in the areas of public administration, health, and education. Looking at the entire year, a similar picture emerges, with only the trade sector showing positive impulses in the fourth quarter for the first time.

(APA/Red)

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