Unemployment hot topic in Austria as workers mark May Day

As thousands take to the streets across Austria to mark Labor Day, officials promise to tackle unemployment.

President of the Austrian Trade Union Federation (ÖGB) Erich Foglar told a huge crowd of demonstrators in front of the City Hall in Vienna on Friday that the ÖGB will continue to fight with full commitment for employment, equity, equality and social security.

“Every unemployed person is one too many, so you have to fight joblessness with full commitment by reinforcing measures for economic growth,” Foglar said. 

Though the statistical office of the European Union, Eurostat released new figures on April 30, saying that the unemployment rate in Austria has remained stable since 2014, Austria’s Federal Ministry of Labour, Social Affairs and Consumer Protection has raised alarm over record levels of joblessness in March.

According to the ministry, up to 360,212 people were registered as unemployed by the end of March, up by 12.9% compared to last year.

The situation has turned unemployment into a hot topic ahead of municipal elections with the governor of the second largest federal state Styria, Franz Voves, from the ruling Social Democratic Party (SPÖ) stressing that the fight against joblessness and poverty would be his main priority. 

Addressing the May Day demonstrators in Vienna, SPÖ leader Chancellor Werner Faymann has called for distributive justice and fair wages. Faymann said his party would work towards creating fair working conditions for the most vulnerable in society.

“Wealth is not defined by market prices but by giving workers a fair share for their hard work,” he said.

Vienna’s Mayor Michael Häupl said the most important thing to do was to put the labor market in order by promoting economic growth. That, he said, is possible through the equal distribution of the tax burden.

“A contribution from millionaires is still on the agenda,” Häupl said, adding that private and public investment needs to be encouraged.  

A survey by Austria’s Public Employment Service known as AMS has revealed that the lowest unemployment figures belong to the capital Vienna and the southernmost state of Carinthia.

Economic experts say this is because there is little industry in these areas, adding that the industrial states in upper Austria including Salzburg, which benefits from its proximity to economic engine Germany are faring better. Compared to the EU, the dispersion of unemployment is relatively high. 

According to Eurostat’s latest report, the EU’s unemployment rate in March 2015 stands at 9.8%. Germany has the lowest unemployment rate (4.7%) and Greece and Spain have the highest (25.7% and 23% respectively).

Based on the report, unemployment figures increased in Croatia, Finland, Italy, France and Belgium compared with a year ago. Eurostat has also reported that the highest rates for youth unemployment were observed in Greece, Spain, Croatia and Italy. 

Some European politicians like Austria’s Reinhold Mitterlehner, who leads the People’s Party (ÖVP), say it is important to respond to the changes in the labor market in order to create new jobs.

“This includes adopting innovative approaches and developing new technologies,” Mitterlehner says.

Experts say an ageing labour force and a lack of skilled workers is making businesses less productive and competitive and contributing to the unemployment problem.

HL/MKA

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