Increase of Unemployment and Long-term Joblessness Since the Economic Crisis. Development, Causes and Policy Options

The situation is currently easing on the Austrian labour market. However, a difficult decade has left a lasting mark. Immediately after the outbreak of the crisis in 2008-09 and during a stagnation phase of the economy from 2012 onwards, unemployment rose particularly sharply, reaching a new record high. As a result of this development, it is still at a historically high level despite the current decline. Added to this is an almost tripling of the number of long-term jobless individuals. The present study analyses the development over the past decade. It identifies the main causes of the rise of unemployment and long-term joblessness and which policy options can be derived from it.