Austrian unemployment rate rises to 10.5 pct in January

The Austrian unemployment rate rose to 10.5 percent at the end of January, according to Ministry of Social Affairs figures released on Monday.

The rate has increased 5.1 percent year-on-year and 0.8 percent over the previous month, with Social Affairs Minister Rudolf Hundstorfer acknowledging that the current government policy measures to bolster the employment market are at their limits.

The construction industry was once again the largest source of unemployment, with 18.5 percent of the total unemployed previously working in that field, despite a much smaller 2.6 percent unemployment increase for January.

More significant increases were in the sectors of subcontracted labor (14.4 percent), trade (10.3 percent) and tourism (9.9 percent).

Unemployment in the over-50s segment was also once again high, increasing 13.7 percent in January, as was that of foreign nationals with a hike of 18.9 percent.

Hundstorfer blamed the "ongoing economic lull in Europe" for the continuing rise in the jobless numbers.

He said comprehensive tax reforms in Austria are of the highest priority in order to provide the necessary economic stimulus, along with measures at the European Union level. Endi