Compared to the same month last year, the number of unemployed people and training participants increased by 9.7 percent or 32,752 people. Labor and Economics Minister Martin Kocher (ÖVP) described the situation on the labor market as “ambivalent”.
On the one hand, unemployment would rise, but on the other hand there would be a record employment and many vacancies, said Kocher at a press conference in Vienna on Monday. However, there are now “first signs” of being “cautiously optimistic” about economic development, said the Economics Minister, referring to the Wifo GDP estimate for the third quarter. The economic recovery is a prerequisite for “stabilization” on the labor market.
“Industry remains the main problem child, with the number of reserved cases increasing above average by more than 16 percent,” said AMS board member Johannes Kopf in a statement. “Unfortunately, these are difficult conditions for the start of important government negotiations.” The number of unemployed people and training participants in goods production was almost 30,000.
Unemployment rate at 6.9 percent
The unemployment rate rose by 0.6 percentage points to 6.9 percent at the end of October compared to the same month last year. On average over the past ten years, the unemployment rate in October was 7.5 percent, according to the Labor Department.
Kocher pointed out that “in view of the increased unemployment, the number of job vacancies remains high at 87,484”. Kocher described the increase in employees as “gratifying”. Compared to the same month last year, 9,000 people, or 0.2 percent more, were in paid employment at the end of October. According to the Ministry of Labor, there are an additional 16,000 people over 50 years of age. In absolute numbers, “this corresponds to a new record in October,” said the Labor Minister.
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**Interview with Labor and Economics Minister Martin Kocher on Unemployment Trends in Austria**
**Interviewer:** Thank you for joining us today, Minister Kocher. The recent report indicates that Austria has seen a rise in unemployment by 9.7 percent compared to last year. Could you elaborate on what this means for the country’s labor market?
**Martin Kocher:** Thank you for having me. The current increase in unemployment, which translates to approximately 32,752 additional unemployed individuals and training participants, indeed presents a challenging scenario. However, the situation is ambivalent. While unemployment figures are rising, we’re simultaneously witnessing record employment rates and a significant number of job vacancies.
**Interviewer:** You’ve described the labor market as “ambivalent.” What do you mean by that, and what do you see as the underlying factors?
**Martin Kocher:** It’s a complex picture. On one hand, the rise in unemployment indicates difficulties for some sectors, particularly in industry, which has seen the number of unemployed individuals grow by over 16 percent. On the other hand, we have an unprecedented number of job vacancies—87,484 to be precise. This duality highlights the importance of aligning our workforce with available positions and focuses on re-skilling and up-skilling.
**Interviewer:** You mentioned signs of cautious optimism regarding economic development. What leads you to believe that the economy may improve soon?
**Martin Kocher:** We are looking at the latest GDP estimates from Wifo for the third quarter, which suggest a potential uplift in economic activity. A recovering economy is essential for stabilizing the labor market, and I believe that with the right strategies and collaboration—especially with upcoming government negotiations—we can navigate these challenges effectively.
**Interviewer:** The unemployment rate currently stands at 6.9 percent, a rise of 0.6 percentage points from last year. How does this figure compare historically for October?
**Martin Kocher:** Historically, the average unemployment rate for October over the past decade has been around 7.5 percent. While we’re slightly below that average now, it’s important to recognize the societal impacts of unemployment and strive to support those affected. Our focus must remain on creating job opportunities while addressing the skills mismatch in the labor market.
**Interviewer:** What are your thoughts on the demographic shifts in employment, particularly with the increase in workers over 50 years of age?
**Martin Kocher:** The increase in employment among those over 50 is indeed promising. It highlights the importance of retaining experienced workers within the workforce. We must ensure that they are not only valued for their contributions but also offered training and opportunities to adapt to new roles, especially as industries evolve.
**Interviewer:** Thank you for your insights, Minister Kocher. As we face these labor market challenges, what steps can the government take to stabilize the situation?
**Martin Kocher:** A multifaceted approach is necessary—focusing on workforce development, fostering innovation, and ensuring that our training programs align with market needs. Engaging with businesses, educators, and industry leaders will be pivotal in driving the workforce transformation needed to meet future demands. Thank you for having me, and let’s stay hopeful as we take these next steps together.
