Austria Sees Rising Unemployment Amid Economic Slowdown

Austria has recorded a rise in unemployment during the opening months of 2026, with the jobless rate climbing to 8.8%, up 2.4% year-on-year. 

According to the Austrian Ministry of Labour, this increase represents 10,679 more individuals out of work, bringing the total number of unemployed or participants in training programmes to 456,192.

Labour and Social Affairs Minister Korinna Schumann stated that Austria’s labour market continues to feel the effects of a weak economy. She noted that the country is still navigating a period of economic slowdown, though early signs of stabilisation are emerging.

Petra Draxl, Head of the Austrian Public Employment Service, highlighted that the Austrian economy is gradually recovering. Citing research forecasts, she projected the country’s GDP growth at approximately 1% for 2026, signalling a slow but phased economic rebound.

The rise in unemployment underscores ongoing challenges for Austria’s workforce, despite tentative indications of market stability, as policymakers balance recovery initiatives with structural economic pressures.