AMS Upper Austria boss concerned

“The situation is challenging and worrying”

It is not only KTM that is causing unemployment figures to rise - this worries AMS Upper Austria boss Iris Schmidt.(Bild: Krone KREATIV/Markus Wenzel, Manfred Fesl/APA/picturedesk.com)

With 49,267 more people without a job than a year ago, the number of vacancies continues to fall and there are only just over 19,000 - these are just two of the figures from January 2025 that show how badly the economic engine in Upper Austria has stuttered. "The situation is challenging and worrying," says AMS Upper Austria boss Iris Schmidt.

At KTM, 520 employees had to leave as part of the restructuring process; at Stiwa, a further cost-cutting package has resulted in employees being made temporarily redundant with a promise of re-employment; Vöcklabruckerei Metallgießerei GmbH has slipped into bankruptcy, which in turn has already led to the closure of several areas of the company - these three examples alone underline how rough the wind is blowing against local companies.

No counter-trend visible at the moment
"The situation as a whole is very challenging and worrying," says Iris Schmidt. The Managing Director of the Upper Austrian Public Employment Service speaks in her usual calm voice, but is still audibly concerned. "We can't see a counter-trend anywhere at the moment. We don't see a light on the horizon anywhere. That concerns us," says the labor market expert. In order to stabilize unemployment, economic growth of 1.5 percent would be required. The forecasts for this year are below that. It is also unclear whether these can be maintained at all. "That worries me," says Schmidt.

To what extent has the insolvency of KTM already left its mark on the labor market? The Braunau district has seen a huge increase in unemployment between January 2024 and January 2025 - up 31.1 percent. How much impact will the job cuts in the course of the restructuring process have? "People are now gradually becoming unemployed, some of them only temporarily," says Schmidt.

More redundancies with re-employment promises
Parallel to the open outcome of the rescue measures at KTM, where the vote on the restructuring plan (February 25) is approaching, other companies are also tightening their belts: "Because they also don't know what will happen next," says the head of the AMS Upper Austria, who is registering an increase in redundancies in connection with re-employment commitments.

Insolvency foundation with 400 places
The insolvency foundation initiated jointly with the state of Upper Austria will be launched on February 10. The first participants are already in the waiting loop and will be informed as soon as they join the foundation and can therefore take advantage of training opportunities. The initiative is aimed at employees of companies in the automotive sector as well as employees of small and medium-sized companies if they have been or will be made redundant due to insolvency. "It offers a total of 400 places for those affected," says Markus Achleitner, Regional Economic Councillor.