“We currently have around 90,000 vacancies in Austria, in better economic times there were already 120,000,” said Economics and Labor Minister Martin Kocher at a press conference today, Tuesday: The next economic upswing will see a greater shortage of workers again: The pressure on the labor market remains high, also due to demographic developments. There is also a strong trend towards part-time work. “We are taking a close look at where there is still potential. The current situation can also be an opportunity for groups that are in little demand in times of labor surplus, such as the elderly, the long-term unemployed and people with disabilities,” said Kocher.
Together with Petra Draxl, head of the Austrian Public Employment Service (AMS), Kocher presented the revised version of the combined wage subsidy: This funding model has been in existence since 2006. The amount of the subsidy is determined by the difference between unemployment benefit/emergency assistance plus 30 percent and the net earned income. Working relationships of at least 20 hours per week are supported; the funding is intended for older people, people with disabilities and people returning to work who have been registered as unemployed for more than 182 days.
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There will be an expansion in June 2024: the previous model will remain in place for people with care responsibilities. For everyone else, such as older people, those returning to work or people who can no longer receive sick pay, the surcharge will be increased from 30 to 55 percent. However, the minimum number of hours worked is then 30. This is intended to create an incentive to work more. People with disabilities can receive funding from the first day of unemployment.
More than half remain employed
With a few exceptions, the funding can be received for a maximum of one year; the maximum amount of aid remains unchanged at 950 euros per month, said Draxl. In 2023, 5,780 people were supported with this model: “58 percent were women, 62 percent were older than 50.” The costs would have amounted to 18 million euros. The statistics show that 55 percent of recipients were still in employment six months after the expiry. In the future, Draxl expects up to 8,000 recipients of the funding per year.
The Chamber of Commerce and the Industrial Association welcomed the new model. Criticism came from the Chamber of Labor: the combined wage model does not help older unemployed people. They often cannot choose their jobs, but often have to get jobs accept positions where fewer than 30 hours per week are offered – for example in retail, hospitality or cleaning. It is incomprehensible why combined wages are no longer paid in these cases.
Author
Elisabeth Prechtl
Economics editor
Elisabeth Prechtl
