Vienna labor market: youth unemployment is falling, districts continue to struggle!

Vienna labor market: youth unemployment is falling, districts continue to struggle!

At the end of 2025, the labor market in Vienna shows a divided picture. While youth unemployment, especially among those under 25, recorded a slight decline of 0.2 percent in November and December, the numbers in the districts of Favoriten (10th district) and Brigittenau (20th district) remain high at 17 percent, which is above the Austrian average. This reports Ad Hoc News.

In problem areas, many people only have a minimum of compulsory schooling and the labor market increasingly demands higher qualifications. Remaining problems include high inflation, which is further dampening consumption, as well as the global economic slowdown and high energy costs, which are putting a strain on industry. In contrast, there is almost full employment in inner-city and western districts like Hietzing, which further increases the massive polarization and poses a socio-political challenge for the coming election year.

Restructuring and qualification

The Vienna Public Employment Service (AMS) sees the decline in youth unemployment as a potential early warning signal, even if the shortage of skilled workers continues to exist in many sectors. In particular, areas such as goods production and industry have seen double-digit increases in unemployment, while retail is under increasing pressure from structural changes and loss of purchasing power. The construction industry is showing stable, slightly falling figures, which could indicate a possible stabilization.

This contrasts with the **East-West divide** in Austria: In Vienna there is an oversupply of low-skilled workers, while there is an acute shortage of skilled workers in tourist regions and industrial centers. This discrepancy promotes the phenomenon of “mismatch unemployment,” where vacancies do not match the qualification profile of job seekers in problem areas. Youth policy in Europe highlights that universal education deficits and inadequate national labor market regulations continue to contribute to youth unemployment.

Education as key

To solve the problem in the long term, education systems should be improved to meet the minimum qualifications and skills. A focus group of experts calls for structural reforms and more intensive support to support the integration of young people into the labor market. Numerous initiatives such as youth coaching or training fit projects offer valuable help that support young people in the transition from school to work. In 2024, the AMS recorded around 70,500 participants in such programs.

The Austrian labor market policy pursues the goal of offering young people high-quality training. As part of the Compulsory Training Act (APflG), young people under the age of 18 are obliged to complete secondary school or apprenticeship training. The number of young people supported by initiatives such as “Training until 18” or “Training Guarantee until 25” is continually increasing. The financial resources required to integrate young people into the labor market will amount to around 1.02 billion euros in 2024 Ministry of Social Affairs announced.

While the outlook for 2026 predicts a seasonal increase in unemployment figures in January and February, experts are hoping for a slight easing in the spring, which, however, depends heavily on monetary policy measures and interest rates. It remains to be seen to what extent the political and economic landscape will favor the comeback of young people on the job market.