17.04.2020

COVID-19 Pandemic: Highest Employment Losses in Austria for Almost 70 Years

WIFO Research Brief by Julia Bock-Schappelwein, Ulrike Huemer and Walter Hyll

The measures taken by the federal government to cope with the COVID-19 pandemic have dramatic consequences for the labour market. In March 2020, the number of employed persons declined by 186,974 to 3,589,401 (–5.0 percent) compared to March last year. According to a new WIFO Research Brief, this decline in employment is the highest since 1952-53.

Both in absolute figures and relative to the previous year's level, the decline in employment is not only higher than at the peak of the international economic and financial crisis in 2009 (April 2009 –76,142 and –2.3 percent respectively), but also the highest decline since the winter of 1952-53 (December 1952 –115,459 and –5.9 percent respectively). In the face of the corona crisis, unemployment rose by almost 200,000 within two weeks to a record level of 563,000 people at the end of March.

The decline in employment affected – with considerable differences – all Länder and most sectors of the economy, especially services, but also some areas of manufacturing, including the construction industry. Men are more affected than women, younger age groups and foreign workers more than domestic workers.