SHARE
COPY LINK

ECONOMY

Unemployment in Austria remains low despite high inflation pressures

Austria's labour market is holding up against high inflation as the number of people out of work hits a 14-year low.

Unemployment in Austria remains low despite high inflation pressures
Unemployment in Austria has hit a 14-year low despite rising inflation. (Photo by Pixabay / Pexels)

The official unemployment rate in Austria is just six percent, according to new figures from the Public Employment Service (AMS).

This is the lowest unemployment figure for 14 years and shows the labour market is withstanding the current inflationary pressures, reports ORF.

At the end of October, 319,232 people were out of work or in training in Austria – around 22,000 less than one year ago, and 35,000 less than in the pre-pandemic year of 2019.

FOR MEMBERS: How expensive are gas and electricity in Austria right now?

Johannes Kopf from AMS said the results point to “a few more months of joy” and referenced a strong construction market as one of the reasons for such low figures.

Unemployment in industry is currently down by 12 percent and job losses in trade have reduced by 10 percent. In hospitality and gastronomy, the number of people registered as unemployed only dropped by one percent, but in the area of temporary work, the rate was down by 14 percent.

In October, the number of job vacancies across the country was up by 10 percent when compared with October 2021.

READ ALSO: Six official websites to know if you’re planning to work in Austria

Additionally, long-term unemployment in Austria has almost halved since its peak in April 2021 when 148,436 people were registered as long-term unemployed. There are currently 78,201 people in this category.

The reduction in short-time work across Austria as companies recover from the pandemic lockdowns has also contributed to the low unemployment figure.

A flash estimate by Statistics Austria put the inflation rate for October at 11 percent. The high rate is being driven by rising global energy prices.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

WORKING IN AUSTRIA

FACT CHECK: Can you work in Austria without signing a job contract?

If you are working in Austria, you might have heard of jobs that do not come with a formal "Arbeitsvertrag" (work contract). But is this legal?

FACT CHECK: Can you work in Austria without signing a job contract?

Austria has long been an attractive destination for immigrants seeking employment opportunities. The country boasts a diverse labour market, with industries ranging from high-tech to traditional crafts and tourism. 

However, navigating the employment landscape can be complex for those considering a move to Austria or even those searching for a job after years of living here. For example, it sometimes occurs that job offers are made and accepted without a formal work contract being signed. In these cases, crucial information, including wage and work hours, is agreed upon only verbally. 

This is more common in entry-level or temporary jobs, and it’s technically legal. Of course, verbal agreements can be dangerous if one party doesn’t follow through with the arrangement. So, in true Austrian fashion, the government protects workers in complicated and bureaucratic ways.

READ ALSO: Can I have a freelance side gig as an employee in Austria?

The difference between a work contract and a service note

One crucial aspect that workers in Austria need to grasp is the distinction between the Arbeitsvertrag (work contract) and the Dienstzettel (service note, or service record)

In Austria, there are no legal requirements for a traditional work contract. If you see a job offer and the company says that they don’t need to send you a contract and that it can all be agreed on via a handshake, that’s true.

However, you are entitled to a so-called “service note”, a Dienstzettel, in German. This should be handed to you “as soon as possible” after the start of the work relationship, according to the Austrian government.

The service note or service record must contain crucial information, including your personal data and information about the company. Additionally, it must state the agreed starting salary and other remuneration components, the due date of the payments, the extent of annual leave, the agreed daily and weekly normal working hours, and more

Both Austria’s employment agency AMS and its Chamber of Labour AK have several tips and recommendations about work contracts and service notes in Austria.

READ ALSO: Can I get unemployment benefits in Austria if I’m self-employed?

Firstly, they warn workers that many employment contracts contain different types of non-competition clauses and confidentiality obligations, both of which are legal in Austria. They also mention that additional benefits, such as a company cell phone or car, could be included in the contract. If something was verbally agreed upon, ask to add it to the contract or service note. 

The AK reminds workers to check the contract thoroughly before signing it. If you notice any clauses that need to be clarified, you can reach out to the chamber for a free consultation. If you discover changes between the verbal agreement and the contract or service note, you can ask for the changes to be amended or deleted. 

Finally, ask for or make a copy of the signed contract.

SHOW COMMENTS