Austria's unemployed in the pliers: Austerity measures take hard!

Austria's unemployed in the pliers: Austerity measures take hard!

Austria's government has announced new austerity measures that will affect unemployed people directly. These changes aim at unemployment benefit and the possibilities for relaxation. The recipients of emergency aid are also particularly affected. Based on the changes, the need to reduce expenditure in the social sector is based on structural challenges and organizational problems within the labor market service (AMS). kosmo reports that the abolition of the educational bonus for social welfare recipients is also part of these measures. The educational bonus, which was introduced in 2024, should support participants in AMS training measures with monthly grants. Participants were able to receive between 150 and 300 euros per month, which made an annual sum of up to 3,600 euros.

The withdrawal of the educational bonus justifies the government with the above -mentioned organizational problems and the overlap between AMS and social assistance. Another essential point of the new regulations is that additional benefits are restricted while receiving unemployment benefit or emergency aid. Minor employment are only allowed in specific exceptional cases. These exceptions apply, among other things, to long -term unemployed over 50 years and people with disabled status. The applicable minor limit for additional earnings is 551.10 euros per month in 2023.

response to the changes

In addition, surveys show that only about 13 percent of unemployed and emergency aid teachers use the possibility of minor additional earnings. In view of the falling financial support, there are demands of institutions such as the momentum institute, which requires an increase in unemployment benefit from 55 to 70 percent of the net replacement rate. This debate is not new and was cited as part of an AMS reform planned three years ago. The general increase in unemployment benefit could be essential support for many affected people in order to cushion the financial losses during unemployment.

The increase in unemployment in Austria is alarming. Work-Economy reports that the number of unemployed people is growing continuously and also increases the long-term unemployment. At the end of April 2025, around 393,000 people in Austria were unemployed or in training, which corresponds to an increase of 25,000 people (6.7 %) compared to the previous year. The increasing numbers are worrying and show that the government cannot adequately counteract with active labor market measures.

reasons for increasing unemployment

The unemployment rate was 7.3 percent in April 2025. This represents an increase compared to previous years, and the government is confronted with serious challenges in order to create employment opportunities. The causes of unemployment are diverse and range from economic to structural to seasonal factors. In addition, there is a clear distinction between the national concept of the AMS and the international concept of the ILO to the definition of unemployment, which can lead to different statistics in the Austrian labor market.

Long -term unemployment that affects people who are unemployed unemployed for a year, can have profound negative effects on the physical and mental health of those affected. The new savings measure and the associated regulations could significantly tighten the already fragile life situations of many people in Austria and contribute to stigmatization and social isolation. However, a model project on the job guarantee in Gramatneusiedl could be a bright spot in this critical situation.