AMS balance sheet

Bleak prospects for the labor market in 2025

The economic engine is not starting up, and bankruptcies such as that of KTM and announced punitive tariffs are causing concern.(Bild: APA/Birbaumer Christof, Birbaumer Christof)

Economic growth is expected to be weak this year. The AMS expects unemployment to rise.

Neither the balance sheet for 2024 nor the outlook for this year make AMS Managing Director Helene Sengstbratl jump for joy. "We have been recording rising unemployment figures for 20 months. The economic engine is not really starting up," says the AMS boss. An average of 8186 people were unemployed in 2024, an increase of almost seven percent compared to 2023. If you add the 1733 training participants, the average number was even 9919 people.

Fewer jobs in construction
Unemployment has risen particularly among people of foreign origin (+13%) and under 20-year-olds (+14%). The number of long-term unemployed also rose (+7.4%). There were fewer jobs in the previous year, particularly in manufacturing, construction and other services. On the other hand, there was growth in employment in the healthcare sector, public services and tourism.

Economic growth is expected to be weak this year. AMS/Synthesis are forecasting a slight increase in employment (+0.2%). However, unemployment could rise by a further 400 people or 5.1%.

Skills shortage remains
"Despite the recession, the skills and labor shortage remains an issue. Large waves of retirements will continue over the next few years. Many companies are looking for skilled workers," says Karin Steiner, Deputy Director of AMS Burgenland.