Where are the jobs? Unemployment among women over 50 is rising massively

Among 61-year-old women, there were 1,900, ten times as many as in January 2024. This means that the unemployment rate among 60-year-old women doubled to 9.5 percent, and among 61-year-old women it climbed from 1.6 to 8.3 percent. “The situation of women over 50 in the labor market has not gotten better, but worse,” emphasized Senior citizens’ association chairwoman Ingrid Korosec at a press conference together with Birgit Gerstorfer (Pensioners’ Association) and the Chairman of the Old Age Security Commission, Ingrid Mayrhuber.

Employment also increased

When analyzing the labor market for the phase of increasing retirement age, Mayrhuber identified “a lot of light, but also a lot of shadow”. In addition to the shadow of rising unemployment, it can also be stated that there has been an “incredible increase” in the number of employed women aged 60 and 61.

In March, 44,280 60-year-olds and 20,870 61-year-olds were employed. “Women who have a job stay with it and extend their active employment,” says Mayrhuber. There is also an upward trend among the self-employed, albeit to a lesser extent. However, the group that loses their job or is unemployed is “worried” because it is difficult for them to get back into the job market.

Length of stay in unemployment increased

Due to the increasing retirement age of women, the length of time spent in unemployment has also increased. The number of days between entry and exit from unemployment for 60-year-old women climbed from an average of 150 to 350 days in 2024. For 61-year-olds it rose to 400 days. Overall, the unemployment rate among 60 and 61-year-olds is approaching the already high rate among men over 55. Around a fifth of all unemployed people are in the 55 to 64 year old group.

Bonus-malus system required

Korosec therefore “urgently” calls for a “joining ranks” between employers, employees and the state: “All three contribute to success, all three bear responsibility.” Companies need the “will and willingness to keep older employees in the company for as long as possible,” Korosec called for a rethink: “Qualification is important and not age.” If that doesn’t work, additional measures will be necessary. She sees a lever in unemployment insurance: “Companies that act positively should receive a bonus. Those that don’t do so should receive a penalty.”

Gerstorfer also wants to think about penalty measures: “Yes, we agree on that.” How exactly these could be designed needs to be considered if it doesn’t work on its own. According to Korosec, there has not yet been a decision from the senior citizens’ council. First we want to look at what measures the federal government is still introducing.

Employees are responsible

Gerstorfer also sees employers as having the responsibility to create workplaces that are suitable for work. But she also appealed to older employees to find out “what’s in their pension account and what kind of pension they can expect” in good time and not just before they retire. Because this is the only way you can find out about the alternatives, for example Teilpensioninform. “My big challenge and request to everyone is to think about how to structure this time ten to 15 years before retirement.”