Unemployment in Austria in July was 10% higher than in the same month a year ago, the Public Employment Service Austria (AMS) announced on Thursday.

At the end of July, 341,769 individuals were registered as unemployed or in training with the AMS. This represents an increase of 31,187 people, or 10%, compared to July 2023, according to a joint press release from the Ministry of Labour and the AMS.

The overall unemployment rate rose by 0.5 percentage points to 6.4%.

“The labour market data reflects the struggling economy,” said AMS board member Petra Draxl.

The sectors most impacted by the rise in unemployment were goods production (+18%) and construction (+13%), indicating a decline in investment. The tourism sector (+12%), particularly in Salzburg and Tyrol, is also feeling the effects of the weak economy.

A recovery in the labour market is not anticipated before the end of the year, Draxl added.

In July, unemployment affected more men and non-binary individuals (+11%) compared to women (+9%). Among non-Austrian citizens, the increase in unemployment was 14%, twice as high as for nationals, who saw an increase of 7%.

The sluggish economic development in Austria is also evident in the job market. By the end of July, the AMS had 94,504 vacancies available immediately, a 17% decrease from the previous year.

“We are currently witnessing particularly high demand for skilled workers in fields such as electrical installation, with over 3,300 vacancies,” said Labour and Economy Minister Martin Kocher.