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Austria's economy in crisis: labor market under pressure!
Vienna is experiencing a rise in unemployment while industry is suffering in recession. A comprehensive overview.
Austria's economy in crisis: labor market under pressure!
The Austrian labor market is facing a serious challenge! The recession is clearly evident in industry, where the growth in goods production is overwhelming at 16.2 percent. The automotive and food industries, which are facing rising unemployment, are particularly affected. “It is alarming, since January 2024 we have observed a continuous decline in employment in the industrial sector,” emphasizes AMS CEO Petra Draxl. The overall situation on the labor market continues to worsen, as with 83,000 immediately available vacancies, the labor market service recorded a decrease of 12.8 percent compared to the previous year vienna.at reported.
The construction and trade sector also cannot stand out from the poor development: there is only an increase of 4.4 percent in construction, while in trade there is only an increase of 10 percent. The sharpest increase in unemployment is noticeable in Upper Austria, where 3,600 KTM employees are affected by insolvency. This situation is generating significant negative publicity and affecting sentiment throughout the country. Labor Minister Martin Kocher (ÖVP) warns that the global economic crisis is hitting Austria, as an export-oriented country, particularly hard.
In addition, there are also calculations that show how the economic changes can be expressed in percentages to gain better insights into this crisis, such as blitzrechner.de highlights.
An exciting aspect is that the ÖVP Economic Association is still talking about high vacancies despite the tense situation. In total, the alliance reports around 152,000 vacant positions, but this is little consolation given the shocking economic conditions. Critical voices, such as those from the Freedom Party (FPÖ), consider the government to be responsible and see the weak economy as an insufficient excuse for the high unemployment in Austria. The discussion about possible measures to combat unemployment is becoming increasingly urgent.