According to preliminary calculations by Statistics Austria, social expenditure increased by 1.8 percent in 2022 to around EUR 136 billion compared to the previous year. However, because economic growth was significantly stronger at 10 percent, the social quota – the share of social expenditure in nominal gross domestic product (GDP) – fell to 30.5 percent (2021: 32.9 percent). The compensation payments for inflation were particularly expensive for the state.
After the pandemic years, expenditure on unemployment benefits, emergency aid and short-time work fell sharply as a result of the favorable development in the labor market. According to Tobias Thomas, Director General of Statistics Austria, there are above-average increases in family, health and old-age benefits, as well as social benefits to combat social exclusion.
Due to the favorable development of the labor market and the expiration of various corona rules, expenditure on unemployment benefits (-5.3 percent), emergency care (-28.3 percent) and short-time working (-83.1 percent) fell sharply in 2022. On the other hand, more was spent on active and activating labor market measures than last year (+5.1 percent).
Lower labor market costs
Total expenditure on labor market-related benefits fell from approximately 12 billion euros (2021) to 7.2 billion euros (2022), their share of total benefit expenditure fell from 9.1 percent to 5.5 percent.
Expenditure on social benefits at retirement age rose by 4.9 percent to 58.9 billion euros. Those for health and care for all ages to 37.8 billion euros (+6.1 percent). The two dominant expenditure shares (age: 44.4 percent, health care: 28.5 percent) therefore continued to rise and recently accounted for almost three-quarters (2021: 70 percent) of total benefit expenditure.
Expensive fees
The strongest growth – not least due to the one-off special benefit of 180 euros per child that was awarded in August on top of the regular child benefit – was in child benefit, on which 12.1 billion euros (+9.4 percent) was spent , and in Social benefits for housing and against social exclusion (mainly minimum income, social assistance and aid to refugees), which totaled €2.8 billion in 2022 (+9.1 percent). That was 9.1 percent (family/children) and 2.1 percent (housing/social exclusion) of total social benefit expenditure.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
