Vienna overtakes Austria: economic growth defies unemployment!

Vienna overtakes Austria: economic growth defies unemployment!

Vienna's economy appears to be robust, even if the shadow of unemployment seems worrying at first glance. According to the WIFO forecast for 2025, Vienna will be above the Austrian average in terms of economic indicators. In particular, gross value added will increase by 0.8%, while the Austrian average is only 0.4% meinkreis.at reported.

The city of Vienna and the Vienna Chamber of Commerce describe the capital as an “economic engine”. City Councilor for Economic Affairs Barbara Novak highlights Vienna's economic strength and resilience and speaks of programs that are intended to strengthen innovative strength, such as the Women's Employment Foundation or the job offensive for people over 50. In addition, various funding is offered for founders and research projects in order to further stimulate the economy.

Job growth despite challenges

Another encouraging sign is the increase in the number of employed people in Vienna, which at 1.1% is even higher than the national average of 0.8%. A further increase in gross value added and employment of 1.3% each is predicted for 2026, while the Austrian average is expected to be 0.8% and 1.1% respectively. Despite this positive development, the unemployment rate in Vienna remains behind the national average: for 2025 it will be 11.8% and for 2026 it will be 11.7%, while the Austrian figure is 7.5% and 7.3% respectively.

An examination of the structure of gross value added shows that it is constantly changing, driven by technological developments and changes in industries. The tertiary sector dominates both in the greater region and in Vienna: 74.4% of employees belong to this sector and contribute 73.1% to economic output. Market-determined services in particular are of great importance for value creation, even if they often do not always create proportional increases in jobs iba-oie.eu explained.

Looking into the future

In the context of economic forecasts, it is important to note that the Austrian National Bank publishes a comprehensive economic forecast for Austria twice a year. These forecasts include estimates of future gross domestic product (GDP) growth, inflation and public finances. With the support of national central banks and the European Central Bank, attempts are being made to reflect the economic conditions in the best possible way and thus enable well-founded decisions for national and European monetary policy, such as oenb.at reported.

While the challenges posed by the high unemployment rate cannot be denied, the positive development of the economic indicators shows that Vienna is on the right track. Investments in subway expansion, affordable housing and sustainable site development are intended to further support this positive trend and position the city as an attractive location for companies and skilled workers in the long term.