End of December 2024: More People Looking for Jobs Than the Previous Year

352,873 were unemployed at the end of the year, while 73,139 people were in AMS training courses. The unemployment rate was 8.3 percent at the end of December, while there was a record level of employment. The average unemployment rate for 2024 was 7 percent, while the average for the past ten years - including the Corona pandemic - was 8 percent.

Compared to 2023, unemployment among women increased by 15,095 (up 9.5 percent) more than among men, where there was an increase of 11,912 (5 percent). At the end of December, 112,528 people over 50 years old were registered as unemployed or in training with the AMS, an increase of 5.9 percent. Youth unemployment was at 67,658 people, an increase of 9.9 percent. The increase in unemployment affected foreigners more (up 10.3 percent) than locals (up 5 percent). For comparison: In December, 206,547 locals and 146,328 foreigners were registered as unemployed.

206,547 Locals and 146,328 Foreigners Registered as Unemployed

The increase in December of a total of 27,000 job seekers within a year corresponds to an increase of 6.8 percent. The fact that the increase was not higher is thanks to the improving economy in the construction sector, where unemployment fell by over five percent. However, it is too early to conclude a recovery in construction, says AMS CEO Johannes Kopf. "The recession, which has lasted for more than two years, is still clearly noticeable in the labor market: The industry shows the strongest increase of almost 14 percent and unemployment in retail is also rising, despite the announced satisfaction with the Christmas business, by around 10 percent," says the AMS board.

Looking at the federal states, the industrial state of Upper Austria was particularly affected, where the number of job seekers increased by 10.8 percent compared to the previous year, followed by Salzburg with 8.7 percent. The increase was smallest in Carinthia (0.7 percent). And once again, it is clear that even academics no longer have a guaranteed job. Of all education levels, they have the highest growth rates in unemployment and training at 16.8 percent. It is particularly difficult for people with disabilities, where the increase in job seekers in December was 13 percent. There have also been better times for apprentices. The number of immediately available open apprenticeships decreased by 16.9 percent in December compared to the previous year. The number of seekers, however, increased by over 20 percent.

Large Gap in Apprenticeships

The unemployment rate among young people is certainly noteworthy. While the rate across all job seekers according to Eurostat calculations is 5.6 percent, it is a hefty 11.4 percent for people under 25 years old (figures from October 2024). In a European comparison, Austria was above the European average in October 2024 across all age groups with a seasonally adjusted unemployment rate of 5.9 percent. The EU average for young people was 15.2 percent, with model student Germany only having a rate of 6.5 percent.

At the end of 2024, there was a record number of 3,912,000 non-self-employed employees. The number has increased by 11,000 since the beginning of the previous year. However, the number of open positions reported to the AMS has slightly decreased to 80,740. The average number at the end of each year from 2014-2024 was 63,396.

"The rise in unemployment is slowing down. Moreover, the current data shows that the unemployment rate is at a lower level than at the end of 2019, when the unemployment rate was 8.5 percent - before the outbreak of the Corona pandemic and Russia's war of aggression against Ukraine," calculated Martin Kocher (ÖVP), Minister of Labour and Economics, on Thursday. The Austrian labour market is resisting the global growth weakness.

Increase in Unemployment Numbers Slightly Slowed Down

Together with the AMS, the government has focused on education and training measures, thus over 270,000 people were able to receive higher qualifications in 2024. "With the second largest per capita budget for active labour market policy, the conditions for rapid and effective education and training of unemployed people were given in 2024," said Kocher. He pointed out that unemployment increased by an average of 33,121 people in the first quarter compared to the previous year, while the smallest increase in the number of people registered with the AMS was observed in the fourth quarter of the year, with an increase of 30,390 people.

The Economic Association once again pointed out the many job offers today. According to their own job monitor, there are 153,756 open positions. In the construction sector, 12,449 jobs are offered, in the office and marketing sector there are 14,587, and in the gastronomy and hotel industry there are 15,254. In the IT and telecommunications sector, often referred to as the industry of the future, there are even 22,675 open jobs.

AK President Renate Anderl emphasized today that unemployment has been steadily increasing and the insolvencies of the past months have shown how quickly there can be large waves of layoffs. "If we don't react quickly, the bad news will not stop in 2025," she said.

"Urgently needed are investments in active labour market policy and an immediate stop to staff cuts at the AMS," said the AK President. Also, an increase in unemployment benefits and an inflation adjustment of unemployment insurance benefits are "more important than ever". "The government has watched for far too long and missed developments," said Anderl. The labour market data published today show a worrying trend, warned Helene Schuberth, Federal Managing Director of the ÖGB, and called on the new federal government to significantly increase the budget for the AMS.

No Decline Expected in Vienna in Election Year 2025

In the federal capital of Vienna, the number of people registered as unemployed or in training climbed by 7.3 percent to 35,087 in December - with the AMS Vienna reporting that younger people were particularly affected. Among those under 25, an increase of 12.6 percent was recorded. For those over 50, the increase was only 6 percent. Unemployment rose most sharply in goods production, retail, and the hotel and catering industry.

The increase for the entire year of 2024 was reported at 9.2 percent. For the year 2025 - in which a new municipal council will also be elected in Vienna in the autumn - the forecast according to the AMS is "moderate". Although higher economic and employment growth is expected for the city than for Austria as a whole, a decline in unemployment is not expected, it was said. At least the increase should decrease.

"Unemployment will continue to rise in Vienna this year, probably in the mid-single-digit range over the course of the year, with the pace expected to slow further in the second half of the year," said AMS Vienna Deputy Director Katharina Luger. According to the AMS, the fact that the baby boom generations are retiring and thus freeing up jobs will also help.

Gloomy Outlook for the Manufacturing Sector

For the FPÖ, their social spokesperson Dagmar Belakowitsch has identified the culprits for the high unemployment rate in the People's Party. "The ÖVP with their loser chancellor (Karl) Nehammer and the Minister of Labour and Economy (Martin) Kocher are showing how the labour market in the country will continue. The data from last December is alarming, unemployment is rising and rising." Her conclusion: "When citizens have to stand on the street because of a black-green misery government, whitewashing and deception are out of place and just embarrassing."

And IV boss Georg Knill also had some cautionary words in an APA interview: "Deindustrialisation is taking place." His outlook is certainly not rosy. "Unemployment in the manufacturing sector will probably continue to rise in 2025."

SPÖ social spokesperson Josef Muchitsch, on the other hand, emphasised: "Austria needs a programme for recovery, growth and employment." First and foremost, a new government must do everything to get the economy and the labour market moving again. The increase in unemployment in the industry must be seen as a warning signal for the situation of the export economy and the downstream economic sectors, the Austrian Chamber of Commerce (WKÖ) noted. For the new WKÖ Secretary General Wolfgang Hattmannsdorfer, who has been in office since the beginning of the year, strengthening the labour market and competitiveness must be the focus of the new government. "We notice that it is becoming increasingly difficult to sell our products competitively on the world market. Our economy is no longer competitive in many fields," is his analysis.

(APA/Red)

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