• Thu. Apr 25th, 2024

Alarming Unemployment Surge in Austria: A Clear Sign of Economic Challenges Ahead

BySamantha Nguyen

Apr 3, 2024
The unemployment rate increased by 11% in March.

The rise in unemployment in Austria in March was a cause for concern, with the number of unemployed people increasing by double digits for the first time in months. At the end of the month, 369,640 people were registered with the Employment Service (AMS), which was 11 percent higher than the previous year, with almost 36,000 more people.

AMS boss Johannes Kopf expressed concern over the development, noting that the situation was particularly bad given the favorable employment conditions usually seen around Easter. He indicated that Austria was still in a clear recession and that a rapid recovery in reducing unemployment was unlikely, especially with high inflation and excess personnel capacity in companies.

The increase in unemployment was most significant in the construction and industry sectors, with men and younger people being disproportionately affected. Labour Minister Martin Kocher acknowledged the challenging economic environment, with the unemployment rate standing at 7.5 percent in March 2019 before the pandemic hit. The current rate of 6.2 percent is still higher than pre-pandemic levels.

The Chamber of Labor highlighted the rise in long-term unemployment, particularly affecting those with health issues and older individuals. They expressed concern about the financial difficulties faced by households affected by unemployment. Despite this, older employees aged 60 and over saw a recent increase in employment.

Amidst criticisms from opposition parties, some called out government for its perceived lack of action to address rising unemployment figures while others questioned whether there is enough skilled labor to fill open positions despite high demand for skilled workers particularly in sectors like tourism due to mismatch between rising unemployment and demand for skilled workers . There has been calls for relief and an increase in work permits to address labor market challenges as number of available vacancies reported to AMS decreased by 18 percent year-on-year

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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