Unemployment in Austria continued to rise at the end of 2025, with more than 434,000 people out of work or in training measures run by the Public Employment Service (AMS). However, the rate of increase has slowed relative to earlier in the year, and employment has begun to rise again.
According to figures released by the Labour and Social Affairs Ministry, 434,572 people were registered as unemployed or participating in AMS training programmes at the end of December. That represents a 2.0 percent increase, or 8,560 people, compared with December 2024.
The unemployment rate stood at 8.4 percent, up 0.2 percentage points year on year.
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A difficult year for the labour market
AMS head Johannes Kopf described 2025 as “a bad year on the Austrian labour market”. On average, 20,660 more people were registered as unemployed over the year than in 2024, an increase of 5.5 percent.
Despite this, the latest data suggests the situation may be stabilising. The ministry said the rise in unemployment has slowed, while employment has begun to increase slightly again. Compared with the previous year, the number of people in employment is estimated to have grown by around 4,000.
Labour and Social Affairs Minister Korinna Schumann said there were signs of a gradual easing throughout 2026. She cited forecasts from the Austrian Institute of Economic Research (WIFO), which expect unemployment to fall by around 4,000 later in the year, while dependent employment could grow by approximately 27,000 positions.
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Different trends by age and sector
The overall picture masks significant differences between groups. Youth unemployment has not continued to rise, which both the ministry and AMS described as a positive signal.
In Upper Austria, the province that has recently seen the sharpest increase in unemployment, the labour market has also begun to ease slightly. According to AMS, this is partly due to improved figures in the construction sector and early signs of stabilisation in parts of industry.
Among men, unemployment, including training participants, fell marginally by 0.3 percent. This contrasts with the retail and trade sector, where there is still no clear recovery. Weakness in these sectors is one factor behind the continued rise in female unemployment.
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Women and older workers most affected
Unemployment among women rose more sharply than the national average in December. The number of unemployed women increased by 6.6 percent compared with the previous year, or 5.3 percent when AMS training participants are included.
There are also growing concerns about long-term unemployment. The number of people registered with AMS for at least one year rose to 102,491, up 12.8 percent from December 2024.
Older workers are another group facing particular pressure. Unemployment among people aged 50 and over increased by 4.4 percent year on year, above the overall average. This trend has been closely watched by policymakers, as older jobseekers often face greater difficulties re-entering the labour market.
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Fewer vacancies signal weak demand
At the same time, the number of available jobs has fallen significantly. The AMS reported that immediately available vacancies dropped by 16.2 percent compared with the previous year, to 67,647 positions.
This decline is seen as an indicator of weaker order books and reduced hiring appetite, particularly in industry. While employment is still growing slightly overall, fewer open positions suggest that competition for jobs remains intense.
Cautious outlook for 2026
Taken together, the December figures point to a labour market that remains under strain but may be nearing a turning point. The slowing pace of unemployment growth, combined with modest employment gains, offers some grounds for cautious optimism.
Whether this develops into a sustained recovery will depend on broader economic conditions in 2026, including industrial demand, consumer spending, and the effectiveness of labour market measures aimed at older workers, women, and the long-term unemployed.
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Key vocabulary
die Arbeitslosigkeit – unemployment
die Arbeitslosenquote – unemployment rate
das Arbeitsmarktservice (AMS) – Austria’s Public Employment Service
die Schulungsmaßnahme – labour market training programme
die Langzeitarbeitslosigkeit – long-term unemployment
die unselbstständige Beschäftigung – dependent employment
die offenen Stellen – job vacancies
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