The weak business development in industry and trade continues to drive up unemployment figures. 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. Compared to the same month last year, the number of unemployed and training participants increased by 6.9 percent or 27,643 people.

Higher Unemployment Rate

The unemployment rate increased by 0.5 percentage points to 8.1 percent. "It is not an easy start for a new federal government," commented AMS board member Johannes Kopf on the current unemployment figures in a statement. Austria has been in a recession for about 2.5 years, and this is "clearly reflected in the labor market," he said. Kopf positively assessed the government program of the new turquoise-red-pink coalition. "The new federal government has announced that it will equip the AMS with significantly more budget to combat unemployment. This is an important first step," said the AMS chief.

The largest percentage increase in unemployed people and those in AMS training at the end of February compared to the same month last year was in manufacturing/industry (+14.9 percent) and in health and social services (+12.2 percent). The increase was slightly lower in trade (+8.3 percent), in gastronomy and accommodation (+5.7 percent), and in transport and warehousing (+5.2 percent). There was a slight increase in unemployment in construction (+2.5 percent) and in temporary employment (+0.1 percent).

Thousands of Apprentices in Training

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 there are available positions: 7,891 young people are registered as seeking apprenticeships with the AMS, and the number of open apprenticeship positions amounts to 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) decreased by 0.4 percent in real terms compared to the previous quarter, and the year-on-year decline was 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 a recession that 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, as well as gastronomy and accommodation. 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 for the first time in the fourth quarter.

(APA/Red)

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