The 7 largest construction sites on the Austrian labor market

1) Reform unemployment benefits

There has been discussion about declining unemployment benefits for a long time. With this model, those affected receive more at the beginning – up to 80 percent of their final salary – and less after a certain time. This is intended to create an incentive for people to take up jobs more quickly. This is supported by the fact that Austria actually grants unemployment benefits for a very long time, because unemployment then transfers to emergency assistance. The argument against this is that the unemployed are forced to take any job, regardless of how long they hold it.

2) Additional earnings limits

A reform is probably necessary here, but should be done carefully. Unemployed people are allowed to earn up to the marginal income threshold (551.10 euros). A reduction in additional earnings is intended to get unemployed people into full-time jobs more quickly. However, many long-term unemployed people cannot return to full-time work immediately and therefore need part-time jobs to get back into work.

3) Long-term unemployed

Long-term unemployment has recently increased more sharply than general unemployment. Around 28 percent of all unemployed people have now been looking for a job for more than a year. Anyone who stays away from the labor market for a longer period of time has a lower chance of being reintegrated. Publicly financed job measures will continue to be needed in the future for all those who, for various reasons, no longer have a chance in the primary labor market. Many sensible job projects complain about a lack of financial security and call for a permanent second job market.

4) Securing skilled workers

Even if the number of vacancies is decreasing due to the economic situation, the shortage of skilled workers remains the central issue. The number of employees over 55 is particularly high, especially in public administration and in health and social services. This requires a bundle of measures, starting with training and further education (see point 6), promoting age-appropriate jobs, upgrading key professional fields and targeted labor migration from third-country countries (red-white-red card).

5) AMS-Budget

The budget plan currently calls for a reduction in the budget for active labor market policy by 95 million euros to 1.3 billion euros. Adjusted for prices, this is the lowest level since 2013, as the Momentum Institute recently calculated. The funding is to be further reduced for 2026. However, due to increasing unemployment, more staff and more projects for qualification and reintegration will be necessary.

6) (Re)qualifications

Almost half – 46 percent – of the unemployed have at least a compulsory school certificate. Because there are fewer and fewer unskilled jobs on the labor market, it is important to provide them with more training, further training or retraining. The crisis and the transformation process in industry and retail require a comeback of longer-term measures such as labor foundations.

7) Refugees

For refugees with a high probability of staying, full-time job integration measures must begin earlier. The youth colleges in Vienna are a model for this. There, young people receive German courses and qualifications that make them fit for the job market (apprenticeships, jobs). Strict sanctions are needed to ensure that the courses are actually attended.