Unemployment Rose Significantly in July

In July, 359,374 people were registered as unemployed or in AMS training. This is an increase of 17,605 job seekers compared to July of the previous year, an increase of 5.2 percent. The unemployment rate is 6.7 percent (up 0.3 percentage points year-on-year), the Ministry of Social Affairs announced on Friday. The number of long-term unemployed increased by 9.8 percent.

Unemployment increased in various sectors

Unemployment among women increased by 6.8 percent in July, while there was an increase of 4.3 percent among men. Youth unemployment rose by 3.7 percent. The number of immediately available apprenticeship seekers registered with the AMS increased significantly by 7.3 percent. Unemployment among people with foreign citizenship increased by 5.3 percent, while it was plus 5.5 percent among Austrians.

Focus on freelance contracts

The Ministry of Social Affairs took a closer look at the development of freelance contracts: These would continue to increase. In June 2025, around 15,200 fully insured freelance contracts were registered - an increase of 3.9 percent compared to the same month of the previous year. In addition, there were around 26,900 marginal freelance contracts (plus 6.5 percent).

Particularly noticeable was the increase among men. "With an increase of 7.2 percent, the rise in freelance contracts above the marginal employment threshold in June is significantly higher than among women, whose number almost stagnated at 0.2 percent," according to the ministry. Around one in five freelance contracts is in the health and social sector, followed by the education and teaching sectors as well as scientific and technical services.

The development in the sector of "other postal, courier, and express services," which also includes food delivery services, is particularly striking: Compared to June 2024, the number of freelance contracts here has more than quadrupled.

Among others, Upper Austria and Styria particularly affected by the increase in unemployment

A look at the federal states shows: Particularly the industrial states of Upper Austria and Styria, as well as the tourist-oriented Tyrol and Salzburg, were affected by the increase in unemployment. When viewed by education, the sharply rising unemployment among academics stands out once again. Here, the year-on-year increase was 13 percent, while the increase among compulsory school graduates was 3 percent. People with disabilities are also particularly affected by increasing unemployment (plus 11.9 percent).

IHS head Holger Bonin explained on Friday in the "Ö1-Mittagsjournal" that Austria is feeling the effects of the long recession. This was expected to some extent, "but it should still concern us." The ongoing part-time discussion is viewed by the economist in a differentiated manner: It is "not wrong in itself to expand the employment volume," if only because of the aging working population. "This needs to be addressed. Therefore, the debate about working more is indeed the right one," said Bonin.

Fewer Job Vacancies

And Statistics Austria also contributed figures to the labor market today. In the 2nd quarter of 2025, Austrian companies reported 147,900 job vacancies according to a quarterly sample survey. This corresponds to a decrease of 4.0 percent compared to the previous quarter. This is the fifth consecutive quarter with a decline in vacant positions.

"Fighting Long-term Unemployment Must Be a Priority"

The increasing number of people looking for jobs prompted numerous reactions on Friday. The Federation of Austrian Industries stated: "There is an urgent need for positive incentives to make full-time work or the overall expansion of the employment volume more attractive." The Chamber of Labor said: "Fighting long-term unemployment must be a priority. Companies are also called upon here." The Trade Union Federation noted: "Long-term unemployment is not an individual failure, but an expression of structural problems in the labor market." The Economic Association referred to its own job monitor, which would show 161,350 job vacancies: "Austria is a leader in the part-time rate, while our companies are desperately searching for staff."

And the opposition also spoke up. "ÖVP, SPÖ, and NEOS are driving Austria into record unemployment, recession, and a wave of bankruptcies. Since April 2023, unemployment in Austria has been rising significantly. (...) Inflation, currently at 3.5 percent, continues to sweep across the country," criticized FPÖ social spokesperson Dagmar Belakowitsch. For Markus Koza, social spokesperson for the Greens, it is clear: "The government can increase the recently cut funds for active labor market policy and cancel the announced increase in the number of seasonal workers by 3,000 people."

The Chamber of Commerce emphasized in a statement: "It is positive that the increase in unemployment is lower than in the previous month and employment has slightly increased. This shows that the labor market is robust overall, as companies know they will urgently need the employees." Senior Citizens' Association President Ingrid Korosec, on the other hand, stated: "The current unemployment figures are alarming."

(APA/Red)

This article has been automatically translated, read the original article here.