Austria's unemployment hits 8.8% as construction sector struggles in 2026

Austria's unemployment rate climbed to 8.8% in January 2026, marking a 0.3 percentage point rise from the previous year. The latest figures show 379,800 registered job seekers, an increase of 14,000 people compared to January 2025. Meanwhile, the government has rolled out a new industrial strategy aimed at boosting growth and sustainability by 2035.

The number of unemployed or in training reached 456,200 in early 2026, up 2.4% from the same period last year. By early February, around 450,000 people were without jobs. The construction sector suffered the most, accounting for 16% of all unemployed and recording a 2025 jobless rate of 9.1%—higher than the national average.

Against this backdrop, the coalition government introduced a long-term industrial plan. The strategy targets key technologies to strengthen competitiveness and sustainability over the next decade. Public support for the initiative appears strong, with 53% of eligible voters backing the framework.

Confidence in job security remains mixed. While 44% of workers feel their position is stable, one in five fears losing their job. Approval for the industrial strategy varies by political affiliation: 81% of ÖVP supporters, 64% of SPÖ sympathisers, and 62% of Neos voters view the plan favourably.

The latest unemployment data highlights ongoing challenges in Austria's labour market, particularly in construction. The government's industrial strategy has gained majority approval, though concerns about job security persist. The plan's success will depend on its ability to address economic pressures while fostering long-term growth.