Alarming figures: unemployment in Upper Austria is exploding!

Alarming figures: unemployment in Upper Austria is exploding!

In an alarming development, the Upper Austrian Chamber of Labor is forced to not agree to the planned budget of the Labor Market Service (AMS). AK President Andreas Stangl expresses his concern by explaining: "The current bankruptcies are just the tip of the iceberg. The federal government has missed the developments on the labor market. Instead of budget cuts, more money is now needed for the AMS and its customers." This drastic warning follows an increase in unemployment in Upper Austria by almost 20 percent in November compared to the same month last year. Apprenticeship seekers are particularly affected, with an increase of over a third (35 percent), as current reports show.

The draft budget envisages massive savings: in 2025, the AMS budget is to be cut by around 10 million euros, without taking the effects of inflation into account. Further cuts are planned for 2026. Stangl emphasizes the potential negative consequences of these cuts, which could jeopardize the mindful advice and training offered at the AMS. "In my view, the AMS budget cuts are a reflection of the future. That's why we don't support the budget decision," adds Stangl. These cuts could directly lead to a significant reduction in support for people furthest from the labor market and long-term unemployed, all of whom will have to adapt to the possible reduction in services, which could lead to an increase in unemployment. These alarming developments are also classified as a policy failure by the AK Upper Austria, as it notes in a report: “The alarming number of 917 apprenticeship seekers in Upper Austria at the end of September is a clear mandate for politicians.”

Urgent demands from the Chamber of Labor

Due to this worrying situation, the Chamber of Labor is calling for several measures to secure the future of people looking for work. This includes an increase in the AMS budget so that labor market policy measures such as training, advice or employment projects can be adequately financed. Stangl is also calling for unemployment benefits to be increased to at least 70 percent and adjusted to inflation so that income security remains guaranteed. “Active labor market policy works differently!” says Stangl, who also emphasizes that young, older and health-impaired job seekers in particular will suffer from the cuts if no changes are made. In order to meet the challenges of the modern working world, investments in the business location and technological and ecological change are essential in order to create new jobs and combat unemployment, as shown ooe.arbeiterkammer.at is reported.