Economic Slowdown and Uncertainty Continue to Shape the Austrian Labour Market

In 2025, Austria experienced a slight upturn following two years of recession. Adjusted for inflation, GDP grew by 0.6 percent. Throughout the year, periods of growth alternated with periods of stagnation. Export and industrial activity gained momentum, while the decline in the construction industry slowed compared to the previous year. Inflation remained high at 3.6 percent, dampening real household incomes. As in 2024, the lingering effects of the recession kept employment growth at just 0.2 percent. Although the rise in unemployment slowed somewhat in the second half of 2025, the unemployment rate rose again on an annual average. The number of job vacancies continued to shrink. In spring 2026, employment grew more strongly than in the previous year. Although the rise in unemployment has recently slowed, the uncertainty surrounding the war with Iran threatens the sustainable stabilisation of the labour market.