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The Austrian labor market remains under pressure from economic stagnation that has lasted for the third consecutive year, and the latest data reveal a worrying rise in the number of unemployed.

According to a report by the Employment Agency (AMS), at the end of May this year a total of 375,347 people in Austria were without work, including those participating in additional training programs. Of that number, 296,140 people were registered as unemployed, while 79,207 were attending various courses and retraining programs.

Compared with the same period last year, the number of unemployed increased by 6.9 percent, meaning that 24,196 more people were left without work. The unemployment rate now stands at 6.9 percent, which is half a percentage point higher than last year. Particularly worrying is the fact that young people were hit the hardest, with unemployment among them rising by as much as 10.9 percent, women with an increase of 10.5 percent, and foreign nationals whose unemployment rose by 9.8 percent, writes Fenix Magazin.

AMS Management Board Chairman Johannes Kopf pointed out that a reduction in unemployment cannot be expected as long as the economy does not show more significant signs of recovery, even with an increased labor supply. Statistical data show that the negative trend has been present since April 2023.

The industrial sector has been hit hardest by the recession, and this is especially felt in Upper Austria and Salzburg, where the largest increase in the number of unemployed was recorded, in Upper Austria by 13.8 percent and in Salzburg by 12.3 percent. They are followed by Vorarlberg with an increase of 9.9 percent, Tyrol with 9.8 percent, Styria with 7.2 percent, Carinthia with 5.5 percent, Lower Austria with 4.9 percent, Vienna with 4.8 percent, and Burgenland with 4.7 percent.

The largest increase in unemployment at the end of May was recorded in industry and manufacturing, where the number of unemployed rose by 13.8 percent. This was followed by the health and social services sector with growth of 12 percent and retail with 9.3 percent. A somewhat smaller, but still significant increase was recorded in transport and storage (6.8 percent) and hospitality (6.5 percent). In the construction sector and temporary employment, the number of unemployed remained almost unchanged.