Inflation Weighs Heavily on Austria’s Youth While Business Sentiment Shows Tentative Uptick

39% of Austrians aged 16-29 say rising living costs are their top problem. Optimism plunges among low earners. Unions ramp up factory visits, while business outlook shows mixed signals.

Almost two in five Austrians between the ages of 16 and 29 say rising living costs are their most pressing problem, according to the latest Youth Monitor published by the Chamber of Labour (AK). The survey, which captures the mood of 39 percent of that age group, also found that a further 24 percent rank better education and job opportunities as their top priority.

Behind the headline figure lies a stark divide in outlook. Among financially comfortable young people, 82 percent say they are optimistic about the future. That confidence collapses to just 38 percent among low earners, prompting the Austrian Trade Union Youth (ÖGJ) to call for more aggressive investment and targeted measures to curb inflation.

The findings come as the AK and the Austrian Trade Union Federation (ÖGB) ramp up their presence on the factory floor. Mid-July sees them visiting companies such as Austrotherm, Wienerberger, Tripamer Bau and aStifterbau in the Burgenland region. AK President Gerhard Michalitsch said the goal is direct dialogue with both workers and management, positioning the employee representation as a front-line contact point.

A separate legal victory underscores the value of that representation. The AK secured a termination indemnity of more than €6,000 gross for a warehouse worker in Upper Austria after the employer tried to retroactively dissolve the employment contract without the worker’s signature.

While households struggle, a modest bright spot appears in the business cycle. The Economic Barometer from the Austrian Federal Economic Chamber (WKÖ) for May and June 2026 surveyed around 4,300 companies. One in five expects an improving order book – the highest share since late 2021. Large firms with over 250 employees were noticeably more upbeat than small and medium-sized enterprises.

Yet investment appetite remains tepid. More than a third of companies plan to cut spending, and a quarter have no new investments in sight. Citing economic uncertainty, weak sales projections and the political framework, the construction sector in particular continues to face headwinds.

On the technology front, a new Competence Centre for methanol injection systems began operations in Hallein in mid-July, backed by an investment of roughly €52 million. The centre will develop systems for large engines used in maritime shipping and rail transport.

Policymakers are trying to ease the transition with regulatory tweaks. A government bill to amend the Trade Code aims to simplify the installation of photovoltaic systems on commercial buildings and electric-vehicle charging stations on company parking lots, provided a qualified professional handles the planning.

A persistent drag on public finances remains the so-called "intermediate parking" of workers with the Public Employment Service (AMS), especially in seasonal sectors such as tourism and construction. The annual bill to the state runs to around €700 million. State Secretary Elisabeth Zehetner, speaking after talks in the Salzkammergut region, stressed the need for bureaucracy reduction and action on high energy prices to keep Austria competitive over the long term.