Austria's employment agency gets budget cut for 2024
The Austrian employment agency will go into austerity mode as the budget gets cut for the next year. Here's how this should affect subsidies and payments.
The Public Employment Service (AMS) is preparing for a decrease in public funding in 2024, Austrian media has reported. The subsidy budget for active labour market policy is expected to decrease to €1.1 billion from €1.3 billion in 2023. This is due to the end of special programs such as the "Aktion Sprungbrett" for the long-term unemployed and the expectation of fewer unemployed people.
AMS Director Petra Draxl said that the agency is still in negotiations with the responsible ministries about the budget for 2024.
What does the AMS budget fund?
The subsidy budget finances, among other things, qualification, counselling and support services, wage cost subsidies for companies and temporary employment in the context of non-profit labour leasing or in socio-economic enterprises. Short-time work (the Kurzarbeit system implemented during the Covid-19 pandemic) is not included in the subsidy budget. Unemployment benefits and unemployment assistance are insurance benefits and are paid out of unemployment insurance - so they wouldn't be affected.
READ ALSO: Explained: How to understand your payslip in Austria
During the corona pandemic, the AMS had significantly more funding available for active labour market policy. In 2021, it was €1.5 billion, and in 2022, it was about €1.6 billion. However, the AMS expects the average subsidy per capita to fall to €3,929 in 2023 and to €3,516 in 2024. The Economic Research Institute (Wifo) expects the number of unemployed people to decrease from 337,600 in 2023 to 326,600 in 2024.
The AMS also has to make internal savings. According to current plans, the number of staff is to be reduced by 125 full-time positions in the coming year.
New employment policies
At the end of June, Labour Minister Martin Kocher gave the AMS new "labour market policy targets" for its long-term work. In the 30-page document, Kocher wanted, among other things, to push placement, more employment incentives and a focus on "green transformation".
For interregional placement, Draxl suggested expanding the distance allowance, which helps people to pursue work further away from their place of residence. A "mobility premium" could also be discussed.
READ ALSO: How long do I have to work for in Austria to get unemployment benefits?
With regard to the high unemployment rate in Vienna relative to other federal provinces, Draxl said that one had to bear in mind the different structures. For example, many jobs for the more highly qualified had recently been created in the capital, fewer in areas suitable for the less qualified. Another important factor is demographic development, with more and more young people living in the city, she said.
Draxl named the promotion of green jobs, the creation of additional qualification opportunities together with companies and an increased focus on the placement of the long-term unemployed as the focal points of her work. Draxl's term on the AMS board is initially limited to one year until 2024. She has stepped in for long-term board member Herbert Buchinger, who resigned from his position early for health reasons at the end of June.
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The Public Employment Service (AMS) is preparing for a decrease in public funding in 2024, Austrian media has reported. The subsidy budget for active labour market policy is expected to decrease to €1.1 billion from €1.3 billion in 2023. This is due to the end of special programs such as the "Aktion Sprungbrett" for the long-term unemployed and the expectation of fewer unemployed people.
AMS Director Petra Draxl said that the agency is still in negotiations with the responsible ministries about the budget for 2024.
What does the AMS budget fund?
The subsidy budget finances, among other things, qualification, counselling and support services, wage cost subsidies for companies and temporary employment in the context of non-profit labour leasing or in socio-economic enterprises. Short-time work (the Kurzarbeit system implemented during the Covid-19 pandemic) is not included in the subsidy budget. Unemployment benefits and unemployment assistance are insurance benefits and are paid out of unemployment insurance - so they wouldn't be affected.
READ ALSO: Explained: How to understand your payslip in Austria
During the corona pandemic, the AMS had significantly more funding available for active labour market policy. In 2021, it was €1.5 billion, and in 2022, it was about €1.6 billion. However, the AMS expects the average subsidy per capita to fall to €3,929 in 2023 and to €3,516 in 2024. The Economic Research Institute (Wifo) expects the number of unemployed people to decrease from 337,600 in 2023 to 326,600 in 2024.
The AMS also has to make internal savings. According to current plans, the number of staff is to be reduced by 125 full-time positions in the coming year.
New employment policies
At the end of June, Labour Minister Martin Kocher gave the AMS new "labour market policy targets" for its long-term work. In the 30-page document, Kocher wanted, among other things, to push placement, more employment incentives and a focus on "green transformation".
For interregional placement, Draxl suggested expanding the distance allowance, which helps people to pursue work further away from their place of residence. A "mobility premium" could also be discussed.
READ ALSO: How long do I have to work for in Austria to get unemployment benefits?
With regard to the high unemployment rate in Vienna relative to other federal provinces, Draxl said that one had to bear in mind the different structures. For example, many jobs for the more highly qualified had recently been created in the capital, fewer in areas suitable for the less qualified. Another important factor is demographic development, with more and more young people living in the city, she said.
Draxl named the promotion of green jobs, the creation of additional qualification opportunities together with companies and an increased focus on the placement of the long-term unemployed as the focal points of her work. Draxl's term on the AMS board is initially limited to one year until 2024. She has stepped in for long-term board member Herbert Buchinger, who resigned from his position early for health reasons at the end of June.
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