Weak economy drives 6.7% unemployment rise in Lower Austria

Unemployment in Lower Austria rose by 6.7 percent in August, the sharpest increase among Austria’s federal states, ORF reported. Nationwide, unemployment has increased for the 41st consecutive month.

Almost 56,500 people in Lower Austria are unemployed or taking part in training programmes.

The rise is linked to the weak economy, according to the Austrian Institute of Economic Research. Economist Stefan Angel said weak economic data from the spring were still having an impact and that Lower Austria had performed worse than other federal states in several industries.

Manufacturing has shown below-average performance, Angel said. The construction sector has also struggled. In tourism, Lower Austria and Vorarlberg were the only federal states where overnight stays fell in spring 2026.

Older women particularly affected

Older women have been particularly affected by unemployment. The number of unemployed women in Lower Austria rose by 8.4 percent over the past year, compared with a 5.3 percent increase among men.

Across Austria, unemployment among women increased by 5.8 percent, while the number of unemployed men fell by 0.8 percent.

Monika Taboga, head of the AMS employment service in St. Pölten, said the gradual increase in the retirement age for women was one factor. Women also perform more unpaid care work and are more heavily represented in retail, social services and healthcare, sectors that are stagnating, she said.

AMS calls for training and more hiring

Unemployment has also risen sharply among people aged over 50. Taboga said the AMS was focusing on encouraging this group to undertake further training. She added that companies also needed to hire older workers.

Companies were hesitant to employ people over 50, Taboga said, calling for more efforts to explain available support measures.

Angel said the economy had provisionally reached its lowest point and should improve over the course of the year. His assessment assumes that new international crises or wars will not worsen the situation further.

SPÖ and FPÖ trade accusations

Sven Hergovich, the Lower Austrian SPÖ leader and former head of the AMS in the state, has repeatedly described the situation as a home-grown problem. He is calling for an economic stimulus package and has accused Susanne Rosenkranz, the responsible FPÖ state councillor, of failing to tackle unemployment.

Rosenkranz rejected the criticism in a written statement to ORF. She said the difficult labour market situation was largely the result of inaction by the federal government and also held Labour Minister Korinna Schumann of the SPÖ responsible.

Rosenkranz said the federal government was pursuing the wrong measures and needed to stimulate the economy to create and preserve jobs.