New objectives – AMS austerity course: fewer unemployed and subsidies

The amount is the starting point for the negotiations in August with the responsible ministries, but is included in both the AMS multi-year budget plan and the federal budget forecast. Draxl also refers to the new “very ambitious” labor market policy targets for the AMS from Minister of Labor Martin Kocher (ÖVP).

How the financing budget is distributed
The financing budget is used to finance, among other things, qualification, advisory and support services, wage cost subsidies for companies and temporary agency work in the context of non-profit temporary agency work or in socio-economic enterprises. Short-time work is not included in the financing budget. The WW and WW are insurance payments and are paid from the WW. The AMS uses trainers and language teachers from external training providers to qualify the unemployed. Hundreds of external adult education teachers lost their jobs in 2018 and 2019 due to lower AMS funding.

However, during the corona pandemic, the AMS had considerably more money available for active labor market policies. In 2021 that was 1.5 billion euros and therefore 3791 euros per unemployed/training participant, in 2022 it was about 1.6 billion euros and 4919 euros per capita, according to APA calculations. The average subsidy amount per capita is just an arithmetic value, as reported unemployment rates are stock figures and not everyone needs qualifications.

Funding per capita will decline
According to estimates, the average subsidy amount per capita could fall to €3,929 in 2023 and to €3,516 in the coming year. The economic research institute (Wifo) expects the number of unemployed, including trainees, to fall from 337,600 this year to 326,600 next year.

125 fewer full-time jobs at the AMS
The AMS also has to cut costs internally. According to the current planning status, the number of employees will be reduced by 125 full-time jobs next year. At the end of June, the AMS had a total of 5,868 positions.

Board member AMS praises Minister Kocher
In late June, Secretary of Labor Kocher gave the AMS new “labour market policy targets” for long-term work. In the 30-page document, Kocher wants to promote placement, more job incentives and attention to “green transformation”, among other things. Most recently, then Social Affairs Minister Beate Hartinger-Klein (FPÖ) gave the AMS “labour market policy goals” in 2019. Minister Kocher’s new goals are “very well formulated,” according to Draxl. “I liked them a lot.”

In addition, in a three-page decree on the marginally unemployed, Kocher called on the labor market service to carry out stricter controls in this area across Austria. Those who receive unemployment benefits can also perform a marginal job (up to a maximum of 500.90 euros).

‘Reducing working hours to 32 hours is not realistic’
Draxl considers a statutory reduction of working hours – to 32 hours with full wage compensation – unrealistic in the foreseeable future. The question arises of where the labor force should come from, especially in areas such as healthcare or in the service or service sector – ie sectors where there is currently a shortage of staff. Another factor is the increase in costs associated with short-time work. However, she expects changes in the longer term. “Maybe we will have a reduction in working hours again in 15 years.”

Fight against high unemployment in Vienna
Regarding Vienna’s high unemployment rate compared to other federal states, Draxl said the different structures should be kept in mind. For example, many jobs for the higher educated have recently been created in the capital, and fewer in areas suitable for the lower educated. The proportion of migrants also plays a role, as Draxl’s successor as head of AMS Vienna, Winfried Göschl, recently pointed out. Demographic development is also important, with more and more young people living in the city. “Vienna is now Austria’s youngest city.”