Vorarlberg unemployment rises as 2026 outlook worsens

Unemployment in Vorarlberg rose by 7.9 percent year on year to 11,408 people in August, and the increase is expected to continue through 2026, ORF reported.

People aged 55 and over were particularly affected. Their number rose by 16.7 percent to 2,252, according to the Austrian Public Employment Service, AMS. “If people aged 55 and over lose their jobs, it is currently difficult for them to find new ones,” AMS Vorarlberg director Bernhard Bereuter said.

Vorarlberg’s unemployment rate reached 6.2 percent, an increase of 0.4 percentage points. Together with Lower Austria, the state recorded the strongest rise in the rate. Industry was particularly affected, Bereuter said, with around a quarter of employees working in the sector. Unemployment also remained high in construction, while the number of unemployed people in retail rose by 10 percent. Public administration was also among the sectors affected.

Tourism saw only a slight increase in unemployment, which Bereuter said could be linked to seasonal fluctuations. The sector had performed well in recent months, although its development will depend on how long employees continue working in the coming months.

Bereuter withdrew the cautiously optimistic forecast issued at the end of last year, when the AMS expected unemployment to fall in the second half of 2026. Current projections instead point to a further increase, with a slight decline not expected until after the first quarter of 2027.

The number of immediately available apprenticeship positions fell by 123, or 37.7 percent, to 203 compared with the previous year. The number of people seeking an apprenticeship also declined by 1.4 percent. Statistically, there are 1.4 applicants for every immediately available position.

Through its Aktion 55+ programme, AMS Vorarlberg supports companies that hire older employees by subsidising part of their wage costs during the induction period.