Over 375,000 Unemployed: Unemployment Rises Again

The weak economic development continues to burden the domestic labor market. According to figures released on Wednesday, around 375,120 people were registered as unemployed or in training with the Public Employment Service (AMS) at the end of September, of which 299,180 were unemployed and around 75,940 were in AMS training programs. This marks the 30th consecutive monthly increase in unemployment figures since April 2023.

Unemployment Increased Again in September

Compared to the same month last year, the number of unemployed and training participants in September increased by 5.8 percent or 20,455 people. The unemployment rate rose by 0.4 percentage points to 7 percent.

"The longest economic crisis of the Second Republic is pushing more and more businesses to their limits: Many can no longer 'hold their breath' or retain their staff for better times," commented AMS head Johannes Kopf on the current unemployment data in a statement.

AMS Head: Unemployment Growing "Across All Major Sectors"

There are "almost weekly bad news" for the labor market, most recently from Lenzing and Unimarkt. Unemployment is growing "across all major sectors, in all federal states (only minimally in Carinthia) and affects every age group," according to the AMS board. "In short: There is currently nothing positive to report from the labor market."

Labor and Social Minister Korinna Schumann (SPÖ) pointed out in a press release the difficult situation for older unemployed individuals. "There is still a long way to go to sustainably and permanently improve the labor market situation for employees over 55." There needs to be "especially a change in thinking among employers," said the labor minister.

Significant Increase in Unemployment in Industry and Trade, Construction Relatively Stable

According to AMS, the sectors most affected by the rise in unemployment were once again industry and manufacturing, and trade, as well as the federal states of Tyrol, Salzburg, and Upper Austria. The largest percentage increase in unemployed people and those in AMS training at the end of September compared to the same month last year was in health and social services (+16.9 percent), trade (+9.8 percent), manufacturing/industry (+8.8 percent), and transport and storage (+8.8 percent). The increase was lower in gastronomy and accommodation (+4.7 percent) and in construction (+0.7 percent). There was no percentage change in unemployment figures in temporary employment.

"The above-average increase in the health and social sector is mainly due to statistical reasons," AMS stated in the summer. In addition to the sharply rising employment due to the higher demand for care, employment is also increasing because more and more care and health facilities, which were previously run by the public sector, are being outsourced. These employees would no longer be counted as public servants in the statistics but would be attributed to the health and social services sector, explained the AMS. Consequently, the number of employees and unemployed in this area has noticeably increased.

The ongoing economic downturn is also noticeable in job advertisements. The immediately available open positions reported by companies to the AMS decreased by 14 percent to 78,677 at the end of September compared to the same month last year. The ÖVP Economic Association records all online job portals in its job monitor and noted 161,455 open positions in Austria.

Employee and Economic Representatives as well as FPÖ See Need for Action

FPÖ social spokesperson Dagmar Belakowitsch called on the ÖVP/SPÖ/NEOS government in a statement to "solve the massive problems in the Austrian labor market." WKÖ Secretary General Jochen Danninger sees "currently light and shadow in the labor market," because alongside bad news about unemployment, there is also good news due to the increasing employment of older workers. IV Secretary General Christoph Neumayer urged once again for "a serious implementation" of bureaucracy reduction and structural reforms in light of the labor market and economic situation. For Economic Association Secretary General and ÖVP economic spokesperson Kurt Egger, "abuse of social benefits" by employees undermines the domestic labor market.

ÖGB Federal Managing Director Helene Schuberth, on the other hand, criticized the "parking" of workers at the AMS by companies as "social fraud." AK President Renate Anderl once again advocated for an increase in the net replacement rate of unemployment benefits and family allowances to better secure job seekers. Vida union leader Roman Hebenstreit called for the removal from the shortage occupation list for sectors with labor shortages "that refuse to raise their employees' wages above inflation."

(APA/Red)

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