Austria Faces Prolonged Job Market Struggles: Unemployment Climbs to 7.5% in November
Vienna, Austria – November 1, 2025 – A concerning trend continues to grip the Austrian labor market, with unemployment figures rising for the 32nd consecutive month. New data released today by the Public Employment Service (AMS) reveals a 4.0% increase in unemployment, bringing the total number of unemployed and those in training to 399,199. This isn’t just a statistic; it’s a signal that the anticipated economic recovery isn’t materializing as quickly as hoped, impacting families and businesses across the nation. This is a developing story, and archyde.com is committed to bringing you the latest updates as they unfold.
The Numbers Tell a Story of Slowing Momentum
The November unemployment rate now stands at 7.5%, a 0.3 percentage point increase from the previous month. While AMS board member Johannes Kopf cautiously points to “slight signs of relief” in temporary employment, he acknowledges these are minimal and don’t guarantee robust economic growth in 2026. The prolonged increase, stretching back to April 2023, paints a picture of a labor market struggling to regain its footing. For job seekers, this means increased competition and a longer search for employment. For businesses, it suggests continued economic headwinds and potential challenges in finding skilled workers.
Regional Disparities: Where is Unemployment Hitting Hardest?
The impact of rising unemployment isn’t uniform across Austria. Lower Austria and Styria are experiencing the most significant increases, with 6.9% and 5.7% rises respectively. These regions have recently been affected by job cuts at major companies like voestalpine and Wollsdorf Leather, highlighting the vulnerability of specific sectors. Burgenland and Tyrol also saw substantial increases, while Carinthia bucked the trend with a comparatively modest 0.7% rise. This regional variation underscores the need for targeted support measures tailored to the specific challenges faced by each area.
Sector Spotlight: Health & Social Services See Unexpected Surge
Interestingly, the most significant increase in unemployment occurred within the health and social services sector, jumping by 16.8%. AMS’s Kopf attributes this partly to statistical adjustments related to the outsourcing of care facilities, but also acknowledges the sector’s overall growth. He emphasizes that this increase doesn’t necessarily indicate a negative trend, as job changes within a growing sector are natural. However, it’s a reminder that even sectors experiencing growth can see fluctuations in unemployment. Other sectors experiencing notable increases include trade (7.4%), transport and storage (6.7%), and manufacturing (5.2%).
A Gender Gap Widens: Women Face Greater Challenges
A particularly worrying trend is the widening gap in unemployment rates between men and women. Unemployment among women rose by 6.2%, significantly faster than the 2.1% increase for men. Labor and Social Minister Korinna Schumann acknowledges the difficulties faced by women in the labor market and pledges continued support through AMS programs, totaling around €670 million annually. This disparity highlights the need for policies specifically designed to address the unique challenges women face in securing and maintaining employment.
Job Vacancies Decline: A Sign of Economic Slowdown?
Adding to the concerns, the number of reported job vacancies has decreased by 13.2% year-on-year, falling to 71,933 at the end of November. The ÖVP Economic Association’s job vacancy monitor confirms this trend, reporting nearly 160,000 vacancies – also a decline from the previous month. The number of open apprenticeships has also decreased, signaling a potential slowdown in skills development and future workforce planning. This shrinking pool of opportunities further complicates the situation for job seekers.
Looking Ahead: Tourism Offers a Glimmer of Hope, But Concerns Remain
The AMS anticipates a seasonal reduction in unemployment within the tourism sector during the winter months, but expects increases in construction and agriculture to offset these gains. Kopf suggests that an early Easter in 2026 could provide a positive boost to March unemployment figures. However, he also criticizes the practice of companies “parking” workers with the AMS only to rehire them shortly after, particularly in tourism and construction. He proposes exploring alternative working time models and adjusting unemployment insurance incentives to discourage this practice.
The latest unemployment figures have sparked criticism from opposition parties, with the FPÖ labeling the government’s economic policy as “catastrophic.” The Greens have called for strengthening the social safety net, while the Chamber of Labor (AK) advocates for better integration of migrants into the workforce. The Trade Union Federation (ÖGB) demands incentives for employing older workers, and the Federation of Austrian Industries (IV) urges the government to reduce non-wage labor costs to stimulate business growth.
The Austrian labor market faces a complex set of challenges. While seasonal factors and specific sector dynamics play a role, the overarching trend of rising unemployment demands a comprehensive and proactive response. Staying informed about these developments is crucial for job seekers, businesses, and policymakers alike. Archyde.com will continue to monitor the situation closely and provide timely, insightful coverage of the Austrian economy.
