Declining prosperity

Economy in decline, but job market is robust

The recession is entering its third year in Austria, with industry in particular suffering and unemployment rising comparatively sharply. Prosperity in Austria has fallen by 2.8 percent since 2019

As far as the Austrian economy is concerned, there is good news and bad news. Director General Tobias Thomas, head of Statistics Austria, says in an interview with Krone: "The economy continued its downward spiral in 2024, falling by 1.2 percent, and the recession has become more entrenched."

Stable labor market, except in industry
The good news, however: despite the economic downturn, the labor market is robust. Thomas: "Unemployment remains almost unchanged, only in the manufacturing sector is there a sharp rise."

(Bild: Krone KREATIV/Stock Adobe)

Industry is therefore the main sector affected, with around 38,400 jobs lost in 2024. At the same time, however, the number of people employed in the public and social sectors has increased by 35,700.

But back to the economy. University professor Thomas: "Austria has lost wealth per capita, namely 2.8 percent in the last five years." The weak growth rates are already reducing prosperity in society.

Fewer than one in two people between 60 and 64 work
The actual retirement age is 60.2 years for women and 62.2 years for men. The employment of older people in Austria is below the international average: in Austria, not even every second man works between the ages of 60 and 64. Thomas: "But those who stay in work beyond retirement age usually do so because they enjoy their job."