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Austria’s labor market during the COVID-19 crisis

Author

Listed:
  • Christian Ragacs

    (Oesterreichische Nationalbank, Economic Analysis Division)

  • Lukas Reiss

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

The impact of the COVID-19 crisis on Austria’s labor market has been huge and a lot heavier than during the Great Recession of 2009 in terms of the increase in unemployment and the drop in employment. Key metrics show that the decrease in employment was broadly in line with the euro area average and that the increase in unemployment went hand with an increase in long-term unemployment and the average duration of unemployment. The generous short-time work scheme rolled out by the government prevented a turn for the worse and also lessened the downward pressure on average wages induced by the strong decrease in average hours worked per employee in 2020. While manufacturing or construction were hit as well, the tourism industry was affected most by the crisis, contributing to a relatively stronger increase in unemployment in provinces with a higher tourism-related share of employment. Younger employees and especially foreigners were also relatively more affected by the increase in unemployment, while employees with tertiary education were relatively less affected. Labor supply, while losing momentum, did continue to grow in 2020, while it had stagnated during the Great Recession.

Suggested Citation

  • Christian Ragacs & Lukas Reiss, 2021. "Austria’s labor market during the COVID-19 crisis," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q2/21, pages 59-78.
    • Handle: RePEc:onb:oenbmp:y:2021:i:q2/21:b:3
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    References listed on IDEAS

    as
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    Cited by:

    1. Sandra M. Leitner, 2023. "Occupational Trajectories Among Refugees in Austria: The Role of Co-ethnic and Austrian Social Networks in Job Search," wiiw Working Papers 232, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    COVID-19; labor market; recession; public policy;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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