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AMS Expects Marked Relaxation of the Labor Market by 2013

Published: January 15, 2011; 00:09 · (Vindobona)

The Arbeitsmarktservice (AMS, Labor Market Service) foresees a significant increase in labor supply on the Austrian labor market. Unemployment will stagnate.

AMS Expects Marked Relaxation of the Labor Market by 2013 / Picture: © AMS

The Austrian labor market has recovered at a rapid pace from the economic crisis in 2010. Because of the economic recovery, there was a strong demand for labor; employment rose to a record level in November and December. On the annual average, the number of active employees rose by 0.9% or 30,236 people to a total of 3,289,546 (provisional figure); the number of unemployed fell by 3.7% or 9,527 to 250,782 people. The unemployment rate by the Austrian calculation method fell from 7.2% in 2009 to 6.9%.

"We expect that growth will continue in 2011 and 2012, although less expansively. At latest by 2013, the upswing will consolidate itself. Backwater effects from the crisis will disappear and unemployment will decrease considerably in Austria", announced Herbert Buchinger, Chairman of the Board of the AMS.

According to the prognostics of the AMS, in 2011 and 2012 the number of active employees will grow further due to the recovery (2011: +26,400 to 3,315,800; 2012: +29,200 to 3,345,000).

Employment growth is however too low to compensate for the concomitant increase in labor supply in 2011 and 2012. Unemployment is expected to rise slightly due to backwater effects (2011: +7,000 to 257,500; 2012: +1,200 to 258,700). The registered unemployment rate (Registerarbeitslosenquote) will be at 7% for 2011 and 2012.