What will the job market in Vienna look like in 2024?
With rising unemployment and a crisis in the construction sector, this is what the head of the public employment service in Vienna expects for the labour market this year.
The latest figures by the Ministry of Economic Affairs in Austria showed that the country has an unemployment rate of 7.8 percent, with 399,005 people registered with the AMS, Austria's employment agency, either as unemployed or undergoing training. Almost 390,000 people are actively seeking employment, the ministry said.
The numbers show an increase of 1.7 percent in unemployment for Austrian nationals. In comparison, the rise in unemployment for foreigners compared to December 2022 was more pronounced at 14 percent, as reported.
The areas where the increase in unemployment is higher are manufacturing (with a 13.2 percent increase in unemployed), accommodation and gastronomy (7 percent) and trade (6.1 percent).
READ ALSO: EXPLAINED: How long can you stay in Austria if you lose your job?
Vienna has the highest number of unemployed people - the capital is Austria's most populous province. In the city, almost 125,000 people are looking for jobs, a 7.4 percent increase compared to the year before. However, the head of AMS Vienna, Winfried Göschl, said he expects the labour market situation to remain "stable" this year, with employment growth in Vienna.
"I firmly believe that employment in Vienna will continue to rise in 2024 - whether unemployment tends to move upwards or downwards will depend heavily on how the potential workforce develops.", he said in a press release. He added that this depends on several factors, such as the influx to Vienna and the employment rate of women.
Construction crisis and consumption in Austria
Currently, there is a construction crisis in Austria, as input prices have soared since the war in Ukraine, and significant companies have gone bankrupt. However, Göschl said he does not believe that the crisis in the sector will deepen.
"Many projects have been postponed due to the price explosions but not cancelled," the AMS Vienna boss is convinced. "Many public funds will continue to flow into projects in the interests of sustainability and the energy transition." This includes facade renovations and heating replacements, for example.
READ ALSO: Unemployment benefits in Austria: Who is eligible and how much can you get?
The retail sector will also ultimately benefit from the high agreements reached in the wage negotiations and the abolition of cold progression - a tax change that should benefit consumers in the country, said Göschl.
However, there is one group of job seekers that continues to worry the AMS head: "The labour market remains difficult for the low-skilled - especially those who lack any ability to integrate through training. We will be paying particular attention to them this year."
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The latest figures by the Ministry of Economic Affairs in Austria showed that the country has an unemployment rate of 7.8 percent, with 399,005 people registered with the AMS, Austria's employment agency, either as unemployed or undergoing training. Almost 390,000 people are actively seeking employment, the ministry said.
The numbers show an increase of 1.7 percent in unemployment for Austrian nationals. In comparison, the rise in unemployment for foreigners compared to December 2022 was more pronounced at 14 percent, as reported.
The areas where the increase in unemployment is higher are manufacturing (with a 13.2 percent increase in unemployed), accommodation and gastronomy (7 percent) and trade (6.1 percent).
READ ALSO: EXPLAINED: How long can you stay in Austria if you lose your job?
Vienna has the highest number of unemployed people - the capital is Austria's most populous province. In the city, almost 125,000 people are looking for jobs, a 7.4 percent increase compared to the year before. However, the head of AMS Vienna, Winfried Göschl, said he expects the labour market situation to remain "stable" this year, with employment growth in Vienna.
"I firmly believe that employment in Vienna will continue to rise in 2024 - whether unemployment tends to move upwards or downwards will depend heavily on how the potential workforce develops.", he said in a press release. He added that this depends on several factors, such as the influx to Vienna and the employment rate of women.
Construction crisis and consumption in Austria
Currently, there is a construction crisis in Austria, as input prices have soared since the war in Ukraine, and significant companies have gone bankrupt. However, Göschl said he does not believe that the crisis in the sector will deepen.
"Many projects have been postponed due to the price explosions but not cancelled," the AMS Vienna boss is convinced. "Many public funds will continue to flow into projects in the interests of sustainability and the energy transition." This includes facade renovations and heating replacements, for example.
READ ALSO: Unemployment benefits in Austria: Who is eligible and how much can you get?
The retail sector will also ultimately benefit from the high agreements reached in the wage negotiations and the abolition of cold progression - a tax change that should benefit consumers in the country, said Göschl.
However, there is one group of job seekers that continues to worry the AMS head: "The labour market remains difficult for the low-skilled - especially those who lack any ability to integrate through training. We will be paying particular attention to them this year."
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