Unemployment Rose by 4.2 Percent in August
The gloomy economic situation continues to burden 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 labor market has not yet reached the bottom. This year, the Austrian Institute of Economic Research (Wifo) forecasts stagnation in economic performance, following 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, therefore, is the support of long-term unemployed individuals.
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 in August to 80,838. Similarly, the number of immediately available apprenticeships decreased by 13.6 percent year-on-year to 7,462. This meant that 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 Salzburg (+7.3 percent), Tyrol (+6.4 percent), Upper Austria (+6.3 percent), and Styria (+5.1 percent), which are characterized by industry and tourism. 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 warehousing (+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 increase in unemployment of 4.2 percent 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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