LABOUR MARKET POLICY IN AUSTRIA

Document Sample
LABOUR MARKET POLICY IN AUSTRIA Powered By Docstoc
					BU N D E S M I N I S T E R I U M F Ü R W I R T S C H A F T U N D A R B E I T BU N D E S M I N I S T E R
IUM FÜR WIRTSCHAFT UND ARBEIT BU N D E S M I N I S T E R I UM FÜR WIRTSCH
AFT UND ARBEIT BUNDESMINISTERIUM FÜR W I R T S CH A F T UNDARB E I T N D E S M I
NIS T E R I U M F Ü R W I R T S C H A F T U N D ARBEIT B U N D E SMINISTERIUM FÜR WIRT
S C H A F T UND A R B E I T BU N D E S M I NISTERIUM FÜR WIRTSCHA F T U N D A R B E I T
BU N D E S M I N I STERIUM FÜR WIRTSCHAFT UND ARB E I T B B U N D E S M I N I S TE R I U M
FÜR W I R T SCHAFT UND ARBEI T BU N D E S M I N I S TERI U M FÜR WIRTSCHAFT UND
ARBEIT BUNDESMINISTERIUM FÜR W I R T S C H A F T U N D A R B E I T B U N D E S M I N I
STERIUM FÜR WIRTSCHAFT UND ARBEIT BUNDESMINISTERIUM FÜR
WIRTSCHAFT UND ARBEIT BUNDESMINISTERIUM FÜR WIRTSCHAFT UND
ARBEIT BUNDESMINISTERIUM FÜR WIRTSCHAFT UND ARBEIT BUNDES
MINISTERIUM FÜR WIRTSCHAFT UND ARBEIT BUNDESMINISTERIUM
FÜR WIRTSCHAFT UND ARBEIT BUNDESMINISTERIUM FÜR WIRTSCHAFT
UND ARBEIT BUNDESMINISTERIUM FÜR WIRTSCHAFT UND ARBEIT
BUNDESMINISTERIUM FÜR WIRTSCHAFT UND ARBEIT BUNDESMINISTE
R I U M F Ü R W I R T S C H A F T U N D A R B E I T BU N D E S M I N I S T E R I U M F Ü R W I R T
S C H A F T U N D A R B E I T BU N D E S M I N I S T E R I U M F Ü R W I R T S C H A F T U N D A R B E I T
BUNDESMINISTERIUM FÜR WIRTSCHAFT UND ARBEIT BUNDESMINI S T E R I U M F Ü R

 LABOUR MARKET POLICY
WIRTSCHAFT UND ARBEIT BUNDESMINISTERIUM F Ü R W I R T S C H A FT UND ARB E I T
BUNDESMINISTERIUM FÜR WIRTSCHAFT UND A R B E I T BUNDES MINIS T E R I U M
FÜR WIRTSCHAFT UND ARBEIT BUN D E S M INISTERI U M F Ü R W I R T S CHA F T U N D
 IN AUSTRIA
ARBEIT BUNDESMINISTERIUM FÜR WIRTSCHAFT UN D A R B E I T B U N D E S M I N I S T E


 2007




                                                                                                  w w w . b m w a . g v. a t
            This report and a detailed collection of labour market data together with a short report on current
            developments in the labour market may also be obtained from:
            http://www.bmwa.gv.at/BMWA/Schwerpunkte/Arbeitsmarkt/ArbeitsmarktPolitik/default.htm
            http://www.bmwa.gv.at/BMWA/Schwerpunkte/Arbeitsmarkt/Arbeitsmarktdaten/default.htm

            For in-depth standard tables on unemployment and employment growth in Austria see also:
            http://bali.bmwa.gv.at/index.aspx



            Publisher: Federal Ministry of Economics and Labour, Stubenring 1, 1010 Vienna
            Editor:   Department II, Labour Market
                      Eva Auer, Barbara Bohaczek, Andreas Buzek, Brigitte Clemenz, Hannes Edlinger
impressum




                      Marlies Gatterbauer, Peter Grahofer, Sabine Hafner, Wilhelm Koldus, Roland Sauer
                      Manfred Zauner
            Translation: Eva Holzmair-Ronge
            Layout:   Claudia Goll (BMWA, IK/2b)
            Vienna, November 2008
CONTENTS

SUMMARY                                                        1

1   LABOUR MARKET DEVELOPMENTS –
    DYNAMIC ADJUSTMENT TO STRUCTURAL CHANGES                   3

2   PRINCIPLES OF AUSTRIAN LABOUR MARKET POLICY                7

3   LABOUR MARKET POLICY SPENDING                             11

    3.1 Expenditure on active and activating labour market
        policies by international comparison                  12
    3.2 Spending broken down by socioeconomic groups          14

4   PERFORMANCE DATA FOR THE PUBLIC EMPLOYMENT
    SERVICE (AMS) AND ACTIVE LABOUR MARKET POLICY             15

    4.1 Job brokering by the AMS                              15
    4.2 AMS-driven labour market programmes                   21
    4.3 Labour market policy for young people                 25
    4.4 New developments in the employment of non-nationals   27

5   OVERALL ECONOMIC BURDEN RELIEF AND EMPLOYMENT
    EFFECTS OF LABOUR MARKET POLICY                           31

6   INCOME SUPPORT IN CASE OF UNEMPLOYMENT –
    UNEMPLOYMENT INSURANCE                                    33

    6.1 Benefits                                              33
    6.2 Requirements for claiming unemployment benefit        33
    6.3 Amount of unemployment benefit                        35
    6.4 Unemployment assistance                               36
    6.5 Transition benefits                                   37
    6.6 Advance on social pension benefits         37
    6.7 Benefits promoting employment              37
    6.8 Sanctions                                  39

7   EFFECTIVE DEPLOYMENT OF RESOURCES BY THE AMS   41

8   PRIVATE PLACEMENT SERVICES                     43

9   TEMPORARY AGENCY WORK (TAW)                    45

LABOUR MARKET INDICATORS                           47
                                                                                Summary



Summary
An increase of 63,000 (up 1.9%) dependent      percentage points to 36% since 2002. The
employment relationships to 3,344,000 in       federal budget proposal for labour market
2007 marked the greatest employment rise       policy has earmarked record ALMP fun-
since 1991. An average 222,000 were regis-     ding (to be made available to the employ-
tered as job-seekers across 2007, i.e.         ment service) also for 2008.
down 16,900 on 2006. At 4.4%, Austria
                                               344,831 individuals were enrolled in AMS
had one of the lowest unemployment rates
                                               programmes (178,799 women) in 2007, or
within the European Union in 2007 (2006:
                                               861,214 new subsidy cases were appro-
4.7%; EU average 2007: 7.1%). With an
                                               ved (approx. 2.5 cases per person).
employment rate of 71.4% according to
                                               Subsidies to skills training, especially edu-
Eurostat, Austria ranked fourth within the
                                               cation and training programmes (BM),
European Union after Sweden, the Nether-
                                               accounted for the majority of subsidisation
lands and Denmark (EU-27: 65.4%).
                                               (83% of beneficiaries); the most important
Roughly €1.836 million were spent on           types of employment subsidies (17% of
active and activating labour market policies   beneficiaries) are integration subsidies, so-
in 2007. The public employment service’s       cioeconomic enterprises (SÖB) and com-
(AMS) own active labour market policy          munity work projects (GBP). Support mea-
budget amounted to around €846 million.        sures include support to counselling and
The share of active and activating labour      guidance centres, childcare subsidies and
market spending in total labour market         subsidies under the business start-up pro-
policy expenditure has thus risen by 14        gramme (21% of all beneficiaries).




                                                                                          1
Labour Market Policy 2007




2
                                                                                    Labour market developments


1 Labour market developments – dynamic adjustment
  to structural changes
A total of 3,344,039 dependent employm-                                  rise in 2006 (up 3.6%) and 2007 (up 2.9%).
ent relationships on average were registe-                               The stock of dependently employed youth
red across 2007. Women accounted for                                     (15 to 24 years) advanced by an average
1,546,057 (46.2%) and men for 1,797,982.                                 of 8,106 or 1.6% in 2007. Following em-
An increase of 63,161 (up 1.9%) in 2007                                  ployment drops in 2001 and 2002, this age
on the year before marked the greatest                                   group has now clearly exceeded the
employment rise since 1991. A microcen-                                  employment levels recorded for 2000.
sus survey of Statistics Austria1 shows that
                                                                         Employment of workers aged 50+ has
full-time jobs account for roughly 70% of
                                                                         recorded above average growth rates
this increase and part-time jobs for the
                                                                         owing to demographic developments and
remainder. Almost 42% of female workers
                                                                         progressive rises in retirement age.
are thus employed in part-time jobs, whe-
                                                                         Roughly 593,000 older persons worked in
reas men's share in this job segment is
                                                                         some form of dependent employment rela-
only 6%. With an increase of 30,389 (up
                                                                         tionship in 2007, up 147,000 or 33% on
2.0%) the relative annual average rise in
                                                                         2000.
employment for women in 2007 is slightly
higher than for men (up 32,772 or 1.9%). In
                                                                         Dynamics of the Austrian labour
the longer term, however, female employ-
                                                                         market
ment has risen much more. Women
accounted for 169,000 (up 12.3%) out of a                                In Austria roughly 1.6 million dependent
total of 210,000 more dependent workers                                  employment relationships are newly ente-
since 20002. Demand growth for part-time                                 red into and almost as many are termina-
jobs is unabated.                                                        ted. With an average fluctuation rate of
School-to-work transition could be impro-                                about 46%, the Austrian labour market is a
ved in the past two years primarily by focu-                             very dynamic market. However, labour and
sing on apprenticeship subsidies. Whereas                                job turnover focuses on specific sectors.
almost 13,000 apprenticeship-seekers                                     Seasonal sectors, such as agriculture and
registered with the employment service                                   forestry, or construction and tourism,
had entered employment in 2004, this figu-                               account for about 31% of this dynamic pic-
re rose to more than 20,000 in 2007.                                     ture, retail for 14% and business services
Having increased by 5.1% in 2005, the                                    for 15% (hired-out workers making up the
number of new apprentices continued to                                   majority of the latter).




1
    Annual average 2007
2
    Since those on parental leave are included in the employment statistics (provided they had an ongoing employment relation-
    ship prior to taking up leave), the introduction of childcare benefits and the option for one parent to claim such benefits for up
    to 30 months had an appropriately positive effect on the number of employees. If data are adjusted for this situation, depen-
    dent employment (active employment) has risen by 163,000 or 5.3% since 2000 (women still accounting for 124,000).




                                                                                                                                   3
Labour Market Policy 2007




Duration of employment episodes in days (2007)




An average employment relationship in            has resulted in rising unemployment in
Austria was terminated after roughly 568         recent years despite such employment
days in 2007. Since 2000 employment              growth. This unemployment trend could be
duration has thus remained virtually stable      reversed in 2006; potential labour supply
(up 1.7 days). An above-average decline of       increased by another 46,000 in 2007. The
job tenure was recorded in power and             annual average stock of registered job-
water supply, education, and in agriculture      seekers dropped 16,925 to 222,248 in
and forestry. There was a decline in the         2007. This positive development is mainly
construction sector’s duration of employ-        due to a revival of economic activity and
ment by almost 2 weeks to 408 days bet-          the substantial increase in active labour
ween 2000 and 2007, whereas in tourism           market funds introduced under the 2006
the duration of employment rose by more          Employment Opportunities Act (BeFG).
than 9 days to 227 days across the same          The marked decline in registered job-see-
period. But employment stability for this        kers of more than 16,900 across 2007 was
seasonal industry is still lagging behind        mainly due to the economic situation, but
other seasonal sectors’ average.                 also to enhanced subsidisation by the
                                                 employment service.
A substantial increase in labour supply, in
combination with weaker economic activity,



4
                                                                            Labour market developments




The outlook for the 2008 labour market is                         drop in registered job-seekers by around
generally assessed positively by research                         13,500. The Institute for Advanced Studies
organisations. For instance, the Austrian                         (IHS) expects employment to grow by
Institute for Economic Research (WIFO)                            roughly 77,000, and the number of job-
projects a further increase in dependent                          seekers to drop by roughly 11,0003.
employment by more than 67,000 and a

    Labour market indicators at a glance




3
    Labour market forecast for 2008 and 2009 of WIFO and HIS (as at June 2008)




                                                                                                          5
Labour Market Policy 2007




6
                                           Principles of Austrian labour market policy



2 Principles of Austrian labour market policy
Under the Labour Market Promotion Act            The AMS’s activities of placing workers
(AMFG), the Federal Minister of Econo-           (and thus filling job openings) and of provi-
mics and Labour has to use all available         ding subsistence income for the jobless by
resources to achieve and maintain full           granting unemployment benefits and
employment and ensure an optimally func-         unemployment assistance thus form a both
tioning labour market.                           functional and institutional setting which
                                                 ensures the successful implementation of
Under the Public Employment Service Act
                                                 the principle of “activation taking priority
(AMSG), labour market policy should, with-
                                                 over passive benefit provision”.
in the federal government’s full employ-
ment policy framework, match the supply          In agreement with the social partners, the
of and demand for labour as completely,          Federal Minister of Economics and Labour
economically and sustainably as possible         updated in 2006 the employment service’s
in order to prevent and eliminate unem-          overarching objectives for implementing
ployment in compliance with social and           labour market policy:
economic principles. This is intended to
                                                 ● Maintain the AMS’s top position in Euro-
ensure the supply of workers to business
                                                   pean benchmarking exercises: improve
and industry and of jobs to all workers
                                                   high level of service delivery, enhance
available on the Austrian labour market.
                                                   client-focused service and target control
The labour market policy to be implemented         mechanisms.
by the public employment service (AMS)           ● Upgrade early intervention. Reducing
focuses on the following services:                 the duration of unemployment through
● Place suitable workers in jobs;                  early intervention remains the AMS’s
                                                   key target.
● Help eliminate obstacles to placement;
                                                 ● Promote equal opportunities in the la-
● Take measures to improve labour mar-
                                                   bour market for women, young people
  ket transparency (labour market analy-
                                                   and older workers.
  ses, eJob-Room, etc.);
                                                 ● Keep an eye on long-term unemploy-
● Reduce skills disparities between la-
                                                   ment and reduce the existing stock of
  bour supply and demand through retrai-
                                                   the chronically long-term unemployed:
  ning and upskilling in response to labour
                                                   develop cooperation with Austria's laen-
  market needs;
                                                   der (provinces), with organisations for the
● Provide subsistence income to the un-            disabled, health services, prisons, etc.
  employed under the unemployment in-
                                                 ● Improve quality and sustainability of la-
  surance scheme (unemployment bene-
                                                   bour market policy measures: enhance
  fits, unemployment assistance, etc. in-
                                                   quality by tapping and using any exis-
  cluding social insurance coverage in
                                                   ting potential for improvement.
  terms of health, pension and unemploy-
  ment insurance).


                                                                                            7
Labour Market Policy 2007




● Ensure proper agreements between the           ► All the measures listed in the AMS's
  AMS and its clientele through (back-to-          overarching objectives are implemented
  work) action plans.                              in daily service delivery (early notifica-
● Focus on clients: have regular polls of          tion of unemployment, early interven-
  clients and cooperate with client groups         tion, enhanced skills training).
  to enhance client friendliness.                   Early intervention in general – and its
● Ensure quality placement: optimise pla-           emphasis on equal opportunities for
  cement quality by improving self-service          young people, older workers, the long-
  delivery, encouraging inter-sectoral pla-         term and chronically long-term unem-
  cement and supra-regional mobility.               ployed, and women in particular – have
                                                    been integrated into the AMS’s annual
● Enhance labour market transparency:
                                                    labour market policy targets. The annual
  optimise and fine-tune the Internet plat-
                                                    targets for 2007 and 2008 also include
  form eJob-Room and encourage scien-
                                                    enhancing the effectiveness of training
  tific monitoring and research.
                                                    programmes.
Every year, Austria’s public employment
                                                 ► The Service to Job-Seekers DWH Pro-
service (AMS) reports target attainment
                                                   ject now enables the AMS to follow up
outcomes to the Federal Minister of Eco-
                                                   its assistance to registered clients in an
nomics and Labour. For some of the re-
                                                   integrated process-based manner: such
sults achieved in 2007 see below:
                                                   as interventions by the employment ser-
► Austria’s public employment service              vice (suggested placements, subsidies,
  has initiated the international bench-           contacts), (back-to-work) action plans and
  marking exercise with other employ-              follow-up monitoring (destination of exits).
  ment services and is a leading propo-            On an annual average, action plans
  nent of the EU project Mutual Learning           (Betreuungsplan) have been developed
  – Benchmarking among PES. The AMS                for roughly 93% of all immediately avail-
  fared well in this comparison, as can be         able job-seekers or apprenticeship-
  seen from the results. If measured               seekers
  against its finances and staffing levels, it   ► Since 2004 client satisfaction polls and
  is among the top contenders. Austria             their outcomes have been incorporated
  showed excellent results in client satis-        directly into the AMS’s strategic and
  faction and job take-up following trai-          operational planning. In 2006 and 2007
  ning and good results regarding place-           the job-seekers’ and employers’ overall
  ment indicators for job-seekers. There           satisfaction was invariably high.
  is still room for improvement in areas
  such as outreach to employers and
  especially vacancy filling services.




8
                                            Principles of Austrian labour market policy




  Targets of client satisfaction - job-seekers




  Targets of client satisfaction - employers




► Top quality service could be provided             connected through to one of the AMS
  based on the efforts undertaken by the            offices for information the ServiceLine
  AMS’s ServiceLines, but also based on             was unable to provide. The objective of
  intensive staff coaching, or improve-             removing some of the burden from
  ment and partial extension of service             counselling staff by screening callers
  delivery. Client concerns revolved pri-           could be largely achieved.
  marily around job-seek matters (38%),             Boasting some 48,000 vacancies and
  general technical information (16%),              163,000 job-applicants (as at 16-06-
  termination of benefits (16%), general            2008), the AMS’s eJob-Room has beco-
  organisational information (9%) and               me Austria’s largest job exchange and
  dates (7%). In 2007, more than 3.8 mil-           an ideal platform for employers and job-
  lion calls were answered by Service-              seekers. According to online polls of
  Lines. Only 20% of the callers had to be



                                                                                          9
Labour Market Policy 2007




     AMS clients in 2007 roughly 90% of        5. Promote flexibility combined with em-
     users (employers and job-seekers)            ployment security and reduce labour
     would recommend the eJob-Room to             market segmentation.
     others.                                   6. Ensure employment-friendly wage and
► In March 2007 the Federal Minister of           other labour cost developments.
  Economics and Labour commissioned            7. Expand and improve investment in
  the public employment service to con-           human capital.
  duct a skills training campaign for metal-
                                               8. Adapt education and training systems in
  workers to address the skills bottleneck
                                                  response to new workplace require-
  in this labour market segment. The
                                                  ments.
  campaign aims to double the number of
  metalworkers in training from 5,000 to       Within the framework of implementing the
  10,000 in the first year of the program-     European Employment Strategy and the
  me (beginning in July 2007). 3,669 wor-      Employment Guidelines of the Lisbon
  kers were enrolled in the programme by       Action Plan, Austria underlines its commit-
  the end of 2007.                             ment to full employment as the most impor-
                                               tant employment policy objective. For the
The above targets are closely connected
                                               purpose of achieving full employment Aus-
with the targets set by the European Em-
                                               tria has adopted a broad-based approach
ployment Strategy, under which EU Member
                                               involving several strands: create jobs, en-
States are expected to implement the fol-
                                               hance active labour market policies, impro-
lowing basic policy strands:
                                               ve placement efficiency, devise labour
1. Implement employment policies aimed         market policies that are client-friendly and
   at achieving full employment, improving     responsive to job requirements, ensure
   quality and productivity at work, and       needs-compliant skills training and take
   strengthening social and territorial        new initiatives in a changed and changing
   cohesion.                                   world of work. This policy orientation is
2. Promote a life-cycle approach to work.      supplemented by targeted interventions
                                               under Structural Fund programmes, which
3. Ensure inclusive labour markets for job-
                                               are integrated into the overall blueprint of
   seekers and disadvantaged people.
                                               Austrian labour market policy.
4. Improve matching of labour market
   needs. Improve matching of job-seekers
   and vacancies.




10
                                                                              Labour market policy spending



3 Labour market policy spending
In 2007 the public employment service’s                              policies by setting aside sufficient funds for
active LMP budget amounted to €846 mil-                              Austria's public employment service. The
lion, while the sum total of active and                              federal budget proposal for labour market
activating labour market policy spending                             policy has earmarked a similar level of
was €1.836 million4.                                                 record ALMP funding (to be made availa-
                                                                     ble to the employment service) also for
The share of active and activating labour
                                                                     2008.
market spending in total labour market
policy expenditure has thus risen by 14                              Training and obtaining qualifications is
percentage points to 36% since 2002. This                            central to the AMS’s active labour market
signifies that the AMS’s room for interven-                          policy. They accounted for around 67% of
tion was greatly improved, and that effec-                           its programme budget and around 84% of
tive activation strategies are duly reflected                        approved subsidy cases and newly subsi-
in labour market policy.                                             dised individuals.
Amendment 23/A(E), which was unani-                                  2007 expenditure on passive benefits
mously adopted on 29 November 2006 by                                dropped almost 4% due to a favourable
the National Council (Nationalrat, i.e. lower                        situation for job-seekers. In 2007 passive
house of the Austrian parliament), ensures                           labour market policy spending accounted
a continuation of current labour market                              for €2,759 million (primarily unemployment

     Active and activating labour market policy AMS/BMWA 1999-20081)




4
    Owing to the decline in the number of beneficiaries under the part-time scheme for older workers the sum total of active and
    activating labour market policy funds actually spent is expected to decrease for 2007 and 2008.




                                                                                                                            11
Labour Market Policy 2007




benefits and unemployment assistance),           ● as well as solidarity bonus and further
i.e. up 13% on 2002. The sum total of              training allowance.
money spent on active and activating
labour market policies (including appren-        3.1 Expenditure on active and acti-
ticeship training bonus scheme and part-             vating labour market policies
time allowance for older workers) increa-            by international comparison
sed by 72% across the same period.               With an active and activating labour market
Benefits paid for the purpose of activation      policy expenditure of 0.71% of GDP
(upskilling) cover a great variety of benefits   (according to EU and OECD definition),
under Austria’s Unemployment Insurance           Austria was close to the (unweighted)
Act (AlVG), including prorated social insu-      OECD average for European members of
rance contributions that are used for active     0.70% in 2006 (last available data). If rela-
policies rather than explicitly for out-of-      ting the ALMP share in GDP to 1% of the
work income support (such as unemploym-          unemployment rate, i.e. to have a more
ent benefits and unemployment assi-              comparable picture of varying labour mar-
stance). The following benefits come under       ket levels and problems, Austria’s position
this category:                                   will further improve. This would give
                                                 0.15%, thus placing Austria among the top
● part-time allowance for older workers
                                                 five of all OECD economies for the first
● unemployment benefit/assistance for            time.
  training,
                                                 Compared with countries having similar
● unemployment benefits for rehabilitation       levels of unemployment, labour market
  measures,                                      policy interventions in Austria appear to be
● unemployment benefits for foundation           highly effective and efficient.
  programmes and re-employment bene-
  fits,

 Activating labour market policy AMS/BMWA 2000-20071)




12
                                                                         Labour market policy spending




2006: Expenditure on active and activating labour market policy in % of GDP
      (per 1 percentage point of unemployment rate)




Sources: OECD (Employment Outlook 2008), EUROSTAT; BMWA´s own estimates
* Greece, Slovak Republic: only Eurostat LMP database categories 2-7 plus categorie 1.1 active LMP spend




                                                                                                           13
Labour Market Policy 2007




3.2 Spending broken down by
    socioeconomic groups
50.2% of the AMS’s gender-assignable            spending on men with disabilities is shown
subsidisation was used for active LMP           both in the “people with disabilities” group
measures for women in 2007 (€416.9 milli-       and in the “men” group.
on). This ratio is to be seen against a back-
ground in which roughly 44% of the aver-        Additional programme for people with
age stock of job-seekers (or roughly 43%        disabilities
of those affected by unemployment)
across 2007 were women. Women ac-               In 2006 the AMS was tasked with using
counted for €712.9 million and men for          employment subsidies (socioeconomic ent-
€791.2 million of total spending on active      erprises SÖB, community work projects
and activating labour market polices            GBP and company integration subsidies
(apprenticeship training bonus not inclu-       BEBE) to enable 3,000 disabled and/or un-
ded) in 2007.                                   employed individuals with health-related
                                                employment handicaps to enter employ-
In view of the necessary multiple alloca-
                                                ment. An additional €24.781 million was
tions, it is impossible to add up LMP spen-
                                                spent on 6,240 programme participants in
ding by individual groups. For instance,
                                                the period 2006-2007.

LMP funds used for women and men in 2007




Funds used for active and activating labour market policy in 2007




14
                                                                       Performance data


4 Performance data for the public employment service
  (AMS) and active labour market policy
4.1 Job brokering by the AMS
In Austria we differentiate between “public”     By the same token the AMS concludes ser-
job brokering by the employment service          vice agreements with employers notifying
(AMS), “free” job brokering by statutory         vacancies to the employment service,
stakeholders, collective bargaining entities     which define the AMS’s approach to filling
and non-profit organisations, as well as         such vacancies (pre-screening, number of
“private” job brokering requiring a license.     suggested applicants, etc.). This kind of
The principles to be observed in all three       action plan is essential whenever vacan-
areas are set out in the Labour Market           cies are hard to fill and alternative strate-
Promotion Act (AMFG). They are: volun-           gies need to be developed.
tary use of such services, impartiality of the   A Client Monitoring System (CMS) is used
service provider, fair pay, and placement        in all regional AMS offices to systematical-
service free of charge to job-seekers (save      ly capture the clients’ satisfaction with AMS
placement services for artists and sports        services and incorporate the results into
people).                                         ongoing efforts to improve service delivery.
This chapter only addresses the AMS’s job        The AMS focuses on Internet use to foster
brokering activities. For facts and figures on   activities by clients with greater self-help
private placement services see Chapter 8.        potential. AMS services offered on the
Ensuring an efficient, economical and tar-       Internet are constantly being upgraded.
geted matching of labour supply and de-          The AMS eServiceZone is an online ser-
mand is the most important task of Aus-          vice enabling both the job-seekers and the
tria’s public employment service. The bet-       employers to access the employment ser-
ter the AMS’s relation with job-seekers and      vice outside opening hours. Its core feature
employers, the better the brokering service      is the eJob-Room, a platform where job-
offered for the benefit of both sides of the     seekers can look for vacancies and em-
labour market.                                   ployers for workers. Employers and job-
                                                 seekers may retrieve all job applicants and
This is why an action plan (Betreuungs-
                                                 vacancies provided by the AMS, compose
plan) is drawn up with every job-seeker,
                                                 and enter ads, and immediately get in
which includes his/her skills and aspira-
                                                 touch with interested parties by text mes-
tions, further counselling and assistance
                                                 sage or e-mail. Boasting some 48,000 va-
measures, plus the job-seeker’s and case
                                                 cancies in Austria alone and roughly
worker’s mutual obligations as defined by
                                                 163,000 job-applicants (as at 16-06-2008),
§38 of the Labour Market Promotion Act
                                                 the eJob-Room is Austria’s largest job
(AMFG). Hence this (back-to-work) action
                                                 exchange. A personalised online access
plan will determine further action both for
                                                 has been created specifically for job-see-
the client and the AMS counsellor.
                                                 kers. This eAMS account is available to
                                                 job-seekers to enter change of address



                                                                                           15
Labour Market Policy 2007




and reachability, apply for benefits and ter-   most popular Internet addresses in Austria
minate their receipt, as well as receive per-   (530,000 visits per month in 2007).
sonal messages from the AMS.
                                                4.1.1   Stock of vacancies and vacancies
If individuals are seeking a career change
                                                        filled
and know exactly when their contract will
be terminated they, too, may enter their        Detailed documentation and analyses on
job-search data online using a self-service     vacancies filled by the public employment
tool called Next Job. Early job-search noti-    service are available to AMS staff. Place-
fication (before being out of work) will im-    ment services are based on the assump-
prove people's chances of soon finding a        tion that individuals register with the em-
suitable job, and it will also give them the    ployment service as job-seekers, and that
opportunity to communicate the data ne-         employers notify their job openings to AMS
cessary for applying for UI benefits. This      counsellors. If so, the employment service
will accelerate and simplify the processing     can prove that it has been directly involved
of their application after the required sign-   in the filling of such vacancies, although
on at one of the AMS offices.                   the resultant figures are still far below
                                                actual placement activities: the number of
The interactive job-application training tool
                                                employment relationships reported to the
includes instructions, exercises and tips for
                                                Federation of Austrian Social Insurance
all phases of the application process.
                                                Institutions (Hauptverband der Sozialver-
Practical assistance is provided in the form
                                                sicherungsträger) show that substantially
of checklists and examples of how to write
                                                more vacancies than those recorded in the
to employers and compose CVs in various
                                                AMS’s placement data are filled with job-
job areas.
                                                seekers from among the AMS’s stock of
The AMS’s further training database pro-        unemployed.
vides an overview of further training opti-
                                                369,569 vacancies were notified to the
ons throughout Austria. It includes more
                                                employment service in 2007, i.e. a clear
than 27,000 current training seminars of
                                                increase on the year before. Hence the
more than 2,700 providers. This is inten-
                                                positive development of recent years could
ded to enhance the job-seekers’ involve-
                                                be continued, with notified vacancies up
ment and participation in selecting such
                                                33,961 or 10.1% in 2007. This boost is
courses. Clients may inform the employm-
                                                mainly due to service jobs (up 12,676),
ent service online about their interest in
                                                production jobs (up 9,997), jobs in retail
attending specific AMS-subsidised cour-
                                                and communication (up 5,579), as well as
ses.
                                                administration and clerical jobs (up 2,710).
The clients’ demand for Internet services       Drops were only recorded in agriculture
has risen continually in recent years. The      and forestry, where 440 fewer job openings
AMS website www.ams.at is one of the            were reported than in the year before.



16
                                                                                                      Performance data




Most of the vacancies notified to, or canvas-                          was filled in 2007 (E, B and A postings 5).
sed by, the AMS could be filled within a very                          The number of vacancies filled rose 11.3%
short period of time: 90% within three                                 (up 32,384) on the year before.
months. A total of 319,876 notified vacancies

    Vacancies filled




    Vacancies filled between 2000 and 2007




5
    E-postings are successful AMS-brokered placements of individuals registered with the AMS; B-postings are successful place-
    ments of individuals who, while not directly referred through a so-called linkage posting, obtained their information of the job
    opening from the AMS; A-postings are vacancies filled otherwise or vacancies withdrawn from the AMS register without indi-
    cation of the name of the person employed.




                                                                                                                                17
Labour Market Policy 2007




4.1.2        Placement of job-seekers
Any individual seeking a job may register                           When broken down by gender, the inflows
with the employment service. He or she                              of men (-2.2%) into unemployment drop-
may do so not only when out of work but                             ped more than those of women (-1.5%) in
also while working under an ongoing em-                             2007.
ployment relationship, while enrolled in
                                                                    The average stock of unemployed individu-
school or some further training program-
                                                                    als decreased by 16,925 (-7.1%) to
me, or while unavailable to the labour mar-
                                                                    222,248 in 2007. Women’s share in the
ket for whatever reason but seeking a job
                                                                    (stock of) unemployed in 2007 was similar
with an employer in the near future.
                                                                    to the year before, i.e. around 44%.
Registered unemployed, as discussed in
this section, are individuals who are regi-
                                                                    Job take-up by unemployed
stered with the AMS irrespective of
                                                                    individuals (by unemployment spell)
whether they draw UI benefits or not.
Marginally employed workers may also                                Since 2000 job take-ups by unemployed
register as job-seekers.                                            individuals had risen by approx. 71,531 or
In 2007, there were altogether 903,628                              16.8%6. The 496,075 job take-ups in 2007
inflows into registered unemployment,                               correspond to a decrease of 12,573 or
down 17,352 or 1.9% on the year before.                             2.5% over the year before, of which 72.8%
Hence inflows into unemployment in 2007                             occurred within the first three months of
were declining for the first time since 2000.                       unemployment.

     Job take-ups




6
    Direct job take-ups (job take-ups following on training programmes not included)
    In addition to job take-ups by registered unemployed, 38,702 cases of job-take ups involved people exiting from AMS-subsi-
    dised upskilling programmes. Take-ups were also recorded for another 20,118 registered apprenticeship-seekers.




    18
                                                                    Performance data




Job take-ups between 2000 and 2007




Job take-ups by older workers and             4.1.3   International networking of job
individuals with health-related                       brokering: EURES
employment handicaps
                                              EURES (EURopean Employment Servi-
                                              ces) is a cooperation network formed by
37,042 unemployed people with health-
                                              public employment services of the Euro-
related employment handicaps (people
                                              pean Economic Area and Switzerland. The
with disabilities and people with other
                                              objective of the EURES network is to
health-related employment handicaps) –
                                              enhance recruitment/placement (job–mat-
24,063 men and 12,979 women – took up
                                              ching) services and facilitate the free move-
employment in 2007. As compared with
                                              ment of workers.
2006 (33,729 direct job take-ups), this was
an increase by 3,313 or 9.8%.                 A network of more than 700 EURES advi-
                                              sers supports workers ready to move and
The rate of direct job take-ups by unem-
                                              employers looking for workers in Europe.
ployed persons aged 45+ remained virtual-
                                              Austria has 17 such EURES advisers, who
ly unchanged in 2007 over the year before.
                                              have been particularly helpful in winter tou-
The stock of unemployed of this age group
                                              rism where domestic manpower shortages
continued to decline (down 3,965 or 5.4).
                                              could be largely reduced. For instance,




                                                                                        19
Labour Market Policy 2007




around 1,400 job-seekers, apprentices and        choice, the 1,573 lectures for adult visitors
interns from the EEA were successfully           mainly revolved around new developments
placed in Austrian tourist businesses in the     in the labour market.
2007/08 winter season.
                                                 BIZ visitor figures in 2007
The EURES portal lists some 1.48 million7
vacancies; workers and employers find up-
to-date information on various issues inclu-
ding mobility, living, working and employ-
ment conditions in all EEA countries.
Workers can look for jobs using an online
application tool and accessing some
16,6068 registered employers from all over       BIZ centres also organised 3,217 informa-
Europe. Also Austrian employers can look         tion events throughout Austria, which were
for workers in Europe using a special onli-      attended by 59,784 people. Almost three
ne recruitment tool with direct access to        quarters of these events addressed young
some 309,400 registered job-seekers from         people and issues such as career guidan-
all European countries.                          ce, new apprenticeship trades or career
                                                 opportunities following matriculation exam.
4.1.4. Vocational information and
                                                 The AMS’s vocational information centres
       guidance
                                                 provide free self-service options in advan-
Austria’s public employment service is a         ced media libraries containing a great
first-stop shop for information on employ-       number of data in brochures, information
ment and careers. In its 61 vocational infor-    folders, videos and PCs.
mation centres (BIZ) clients may choose
                                                 A great variety of data and information
between a wide range of free information
                                                 about initial and advanced training options,
media outlining careers, job opportunities,
                                                 or job and labour market trends, can be
as well as initial and special training paths.
                                                 retrieved online from the AMS’s vocational
Roughly 418,500 individuals (61% of them         information portal www.ams.at/berufsinfo.
adults) visited the centres and used their       Online tests helping people in their career
services in 2007. In addition, BIZ staff         and education choices, databases provi-
counselled 96,600 individuals in 5,148           ding up-to-date vocational information, as
groups in total. While information and           well as downloadable information brochu-
counselling to visiting school classes focu-     res provide access to the world of work,
sed on vocational guidance and career            education and training. The job information


7
    Data as at 1-07-2008
8
    Data as at 1-07-2008




    20
                                                                       Performance data




system (BIS) is Austria’s largest online data-   The skills barometer (Qualifikationsbaro-
base containing detailed information on          meter) shows graphic presentations of the
careers and qualifications.                      occupational groups, skills and qualifica-
                                                 tions in demand on the labour market.
The job compass (Berufskompass) is an
important guide for career choice and vo-        Workroom (Arbeitszimmer) is the AMS’s
cational re-orientation. It is linked up with    new youth platform launched in January
the job descriptions and job profiles of the     2007 and providing information on educati-
AMS vocational information system, thus          on, training, higher education and career
enabling users to immediately retrieve           choice.
information about jobs, job requirements
                                                 The AMS job dictionary (Berufslexikon)
and job opportunities. The apprenticeship
                                                 includes detailed descriptions (and a num-
compass (Lehrlingskompass) is geared to
                                                 ber of videos) on jobs by level of educatio-
the needs of young people interested in an
                                                 nal attainment. It also offers general infor-
apprenticeship. Taken together, job com-
                                                 mation videos and “virtual company visits”.
pass and apprenticeship compass recor-
ded roughly 276,000 “visits” in 2007.
BIZ visitors 1995 - 2007




4.2 AMS-driven labour market programmes

Individualised presentation

344,831 individuals were enrolled in AMS         will find an analysis of AMS-operated pro-
programmes (178,799 women) in 2007, or           grammes based on the total number of par-
861,214 new subsidy cases were approved          ticipants.
(approx. 2.5 cases per person). Below you

Subsidies and grants of AMS in 2007




                                                                                           21
Labour Market Policy 2007




The public employment service subsidised           Roughly 52% of AMS programme partici-
fewer people in 2007 than the year before          pants were women and slightly more than
(down 14,193 or 4.0%) as it focused on             half of the gender-assignable programme
measures of higher quality and longer              budget was used for supporting women in
duration and thus on more costly measu-            2007. Women’s share in the (annualised
res. Subsidies to skills training accounted        stock of) unemployed was around 44%
for the majority of subsidisation, meaning         and thus far below women’s programme
that 83% of participants in AMS measures           participation rate. However, female partici-
(284,541 persons; down 12,446 or 4.2%              pation varied greatly by programme cate-
on previous year) were enrolled in training        gory: skills training 51%, support 57%,
programmes. 17% of participants (59,836;           employment subsidies 52%.
up 1,395 or 2.4%) received subsidies to
                                                   The most important skills training subsidies
employment and 21% of all participants
                                                   concerned education and training pro-
(71,567; down 1,940 or 2.6%) were enrol-
                                                   grammes (BM) involving 155,916 individu-
led in support measures.
                                                   als, subsistence allowances (DLU) during

 Individualised presentation

 The sum total of participants in the three major types of subsidisation, i.e. skills training,
 subsidies to employment and support, is higher than the total number of all participants per
 year as one and the same person may be subsidised by both a support and a training grant
 in the period under report.
 Skills training measures and subsidies include training of employees (QfB); labour founda-
 tions (AST); guidance, (skills) training measures and active job-search assistance for the
 unemployed (BM); subsistence allowance (DLU); allowances for training course costs and
 ancillary course costs (KK, KNK) and subsidies to apprenticeships (LEHR, SZL).
 Employment measures and subsidies include company integration subsidies (BEBE), job
 schemes in the non-profit sector/community work (GBP), socio-economic enterprises
 (SÖB), solidarity bonus (SOL), journey-to-work subsidies (ENT), allowance for working
 short hours (KUA), as well as the wage top-up scheme (KOMB). Support measures and
 subsidies include the appropriations for LMP counselling and guidance centres (BBE),
 business start-up subsidies (GB), the business start-up programme (UGP), childcare sub-
 sidy (KBE), appropriations for childcare facilities (KBE) and job interview grants (VOR).




22
                                                                    Performance data




training involving 199,494 individuals, and   The “2006-2008 women in crafts and
allowances to cover ancillary course costs    engineering” programme (FIT) was conti-
(KNK) involving 165,246 individuals.          nued in 2007 and offered certified training
22,560 employees were also enrolled in        in crafts and engineering jobs. Under this
AMS-subsidised training programmes.           programme women are encouraged to
Subsidies to apprenticeships – JASG9 par-     take up jobs which are male-dominated,
ticipants not included – involved 43,477      offer improved labour market opportunities
people, mainly under the so-called "Blum      and provide higher incomes. During the
bonus", a lump-sum grant to the costs of      2007 FIT programming period around
apprenticeship training.                      2,600 women participated in prep courses
                                              and around 1,100 women in basic skills
Subsidies to employment focused on one
                                              training programmes. 450 women were
tool, i.e. the company integration subsidy
                                              enrolled in special crafts/engineering trai-
(BEBE), which was granted to 35,018 indi-
                                              ning programmes to complete formal
viduals. Subsidies to employment in socio-
                                              apprenticeship training. The AMS paid
economic enterprises (SÖB) and commu-
                                              €10.2 million for programme participants in
nity work projects (GBP) were awarded to
                                              2007.
23,165 people. Such subsidies to employ-
ment were granted almost only (exception:     The labour market and employment policy
journey-to-work subsidy) to employers or      focus on older workers has been further
job scheme operators directly, who in         developed and upgraded in recent years
return employed unemployed individuals        against the background of social pension
or did not dismiss workers at risk of beco-   reform. The policy mix used to improve
ming redundant (allowance for working         labour market integration of older workers
short hours).                                 varies. It includes reducing non-wage
                                              labour costs, securing existing employ-
The main subsidies within the scope of
                                              ment relationships, or providing active sup-
support measures are those supporting
                                              port to older unemployed people’s re-inte-
counselling and guidance centres (48,608
                                              gration into the world of work. In 2007,
unemployed individuals were referred to
                                              Austria's public employment service awar-
such facilities) and childcare subsidies
                                              ded subsidies to roughly 84,300 people
(8,243 beneficiaries), the latter being the
                                              aged 45+, this group being well-represen-
reason for the high share of women in the
                                              ted in employment programmes, where
support segment. Another 7,930 individu-
                                              they account for more than one third of all
als were subsidised under business start-
                                              participants.
up schemes (business start-up subsidies
and consultancy services under the busi-
ness start-up programme).

9
    Youth Training Consolidation Act (JASG)




                                                                                       23
Labour Market Policy 2007




An analysis by age groups reveals the con-                            active LMP”), the picture will slightly differ
siderable involvement of young people in                              from the above individualised approach:
active labour market schemes: while the                               although skills training measures also
prime-age group (25 to 44 years) accoun-                              account for most (67%) of the costs, this
ted for most of the participants (140,145 or                          percentage is substantially lower than that
41%), young people (up to age 24) accoun-                             of participants (83%) Subsidies to employ-
ted for 123,555 (36%) and older persons                               ment in turn, which involve only 17% of all
(45+) for 84,275 (24%). This compares as                              AMS programme participants, required
follows with the same age groups’ percen-                             25% of all funds, while support measures
tages in registered unemployment (annual                              had a participants-to-appropriations ratio of
average stock): young people 16%, prime-                              21% to 8%.
age group 53%, older persons 31%.
                                                                      Regarding skills training measures, the
A total of 45,259 (+5,156; +12.9%) people                             main tools (budget-wise) were subsidies to
with health-related employment handicaps                              the training and upskilling of job-seekers,
were subsidised in 2007 (8,624 of them                                subsistence allowances for the duration of
registered job-seekers with disabilities and                          such training measures, as well as subsi-
37,075 of them registered job-seekers with                            dies to apprenticeships.
other health-related employment handi-
                                                                      In the subsidies to employment category,
caps).
                                                                      expenses concerned mainly two major
                                                                      groups of tools: integration subsidies on
Appropriations                                                        the one hand, and socioeconomic enterpri-
                                                                      ses and job schemes in the non-profit sec-
If we take a closer look at AMS subsidy
                                                                      tor (community work) on the other.
spending10 on individual programme cate-
gories (see “spending broken down by                                  As to support measures, the emphasis is
socioeconomic groups” and “subsidy spen-                              on subsidies to labour market counselling
ding and subsidised individuals under                                 and guidance centres, childcare subsidies,
                                                                      as well as business start-up subsidies
     Active LMP budget
                                                                      under the business start-up programme.
     as used (money spent) in 2007
     by types of subsidies




10
     All data: subsidy spending without activating UI funds (i.e. unemployment insurance funds used for activating labour market
     policy); source: AMS Data Warehouse; data cube fdg_lg_Personen_Kosten. mdc, payment (kum.) indicator.




 24
                                                                        Performance data




Skilled metalworkers training                     young adults (up €25 million, or 7%, on
campaign                                          2006). The percentage share of this age
                                                  group in all AMS-subsidised persons
To ensure a sufficient supply of skilled wor-     advanced between 2001 and 2007 from
kers and address the shortage of workers          24.8% to 34.4% of all newly subsidised
with skills the AMS has launched a skills         individuals, thus being clearly above the
training campaign for metalworkers aimed          15.8% share of young job-seekers in 2007
to double the number of newly trained             unemployment. Enhanced spending on
metalworkers under its active labour mar-         active policies has certainly provided a
ket policy programme. The campaign is             strong impetus to the youth labour market.
targeted at all job-seekers registered with       Since January 2006 there has been an
the AMS and specifically at those of migra-       above-average decline in young job-see-
tory background. Since its launch in July         kers, which continued in 2007, with youth
2007 subsidies for 8,592 individuals have         unemployment dropping by 7.8% on the
been approved (data as at 30-05-2008),            year before.
and more than 60% of participants have
already completed their special training:         4.3.1   Youth employment package –
Almost 14% of them did so with an appren-                 guaranteed training
ticeship certificate and 11.8% with an
                                                  The dual system is one of the key priorities
intensive training certificate for skilled wor-
                                                  of labour market and employment policy in
kers. Women’s share in metalworkers trai-
                                                  Austria. Use of appropriate measures, such
ning is 19%; foreign workers account for
                                                  as encouraging the creation of additional
almost the same percentage (18.6%).
                                                  apprenticeship places under the Blum
                                                  Bonus (in operation since autumn 2005),
4.3 Labour market policy for                      has helped achieve a trend reversal also
    young people
                                                  within the apprenticeship market, with the
In light of developments in the youth             number of apprenticeships and training
employment market, active labour market           companies rising substantially. This suc-
policies for young people have been step-         cessful avenue is being pursued by a
ped up in recent years. This is how the           needs-compliant upgrading of support
annual number of under 25-year-olds               schemes and framework conditions in the
newly subsidised by the employment ser-           dual training system. A comprehensive
vice (AMS) was more than doubled bet-             employment package for young people will
ween 2001 and 2007 from around 46,000             be implemented in the 2008/2009 training
to over 100,000. In 2007 roughly €385 mil-        year including measures concerning com-
lion were spent on active and activated           pany-based and supra-company appren-
“passive” funds for this target group of          ticeship training (“guaranteed training”).




                                                                                           25
Labour Market Policy 2007




4.3.2   Upgrading of supra-company            4.3.3   Revised subsidies to company-
        training                                      based apprenticeship training
Improved in both quantitative and qualita-    Subsidies to individual companies in sup-
tive terms in recent years, the supra-com-    port of apprenticeship training will now be
pany training programme aims to provide       processed by the apprenticeship offices
adequate assistance and training places       (Lehrlingsstellen) of the Austrian Economic
(run by special “supra-company” providers,    Chamber (WKÖ) and include the following
i.e. not companies themselves) to young       key components:
people who have not found any suitable
                                              Basic subsidy: The training bonus (€1,000),
apprenticeship since leaving compulsory
                                              previously granted for every apprentices-
school. The number of programme partici-
                                              hip, will be replaced by a new system of
pants in the 2006/2007 training year total-
                                              differentiated, needs-oriented basic subsi-
led some 11,600 young people, with 9,500
                                              dies. Based on the remuneration actually
of them being trained in special program-
                                              paid to apprentices under collective agree-
mes. The reformed framework launched in
                                              ments, the subsidisation system involves
the 2008/09 training year is intended to
                                              subsidy rates that are staggered by year of
establish the supra-company training pro-
                                              apprenticeship (first year: rate equivalent
grammes – as a complement to the priori-
                                              to three such remunerations; second year:
tised company-based apprenticeships – in
                                              equivalent to two such remunerations; third
terms of regular and equally valued com-
                                              and fourth year: equivalent to one such
ponents of the dual system and in terms of
                                              remuneration, or for apprenticeships las-
upgraded elements of guaranteed training
                                              ting for 3.5 year, to half the remuneration).
for young people under 18 years of age.
For this purpose the revised Vocational       Additional quality- and employment-related
Training Act (BAG) has introduced a uni-      subsidies: Alongside basic subsidisation,
form supra-company training programme         the scheme should offer additional subsi-
enabling participants to complete training    dies to employers with the aim of providing
with regular apprenticeship certificates.     incentives to create additional apprentices-
The previously differing remuneration (by     hip places and introducing quality criteria
type of training programme) has been rai-     for orientation. These strategies include:
sed to a common level, while supra-com-       ● Subsidies to employers accepting ap-
pany apprenticeship training programmes         prentices for the first time or after a lon-
will now be targeted not only on socially       ger interruption, as well as subsidies to
disadvantaged youth and slow learners but       newly-started companies accepting
increasingly also on education dropouts         apprentices
and “older” youths.
                                              ● Quality bonus for employers whose
                                                apprentices pass a quality test at mid-
                                                time of their apprenticeship.



26
                                                                       Performance data




● Subsidies to regional inter-company            Whereas citizens of the EU 14 and EEA
  training clusters and to additional trai-      Member States and their family members
  ning options for apprentices going             (spouses and children) are free to settle in
  beyond the job profile defined by law          Austria and access the labour market,
● Subsidies to train the trainers (initial and   rules on the employment of third-country
  continuing training);                          nationals (see also transitional provisions)
                                                 are set out in the Act Governing the Em-
● Bonuses for excellent or good final
                                                 ployment of Foreign Nationals (AuslBG).
  exams
                                                 Admission of third-country nationals to the
● Subsidies to in-house policies designed        Austrian labour market has been largely
  to ensure equality of access for young         restricted to key workers and additionally
  women and men to apprenticeship tra-           needed seasonal workers in recent years.
  des.                                           The settlement ordinance updated and
Individualised subsidies within company-         issued every year by the federal govern-
based apprenticeship training schemes            ment defines the relevant maximum ratios
should make up for individual disadvanta-        and numbers for such workers. Also family
ges on the apprenticeship market and are         reunion for settled migrants from third
granted by the employment service to             countries is guided by annually fixed ratios.
young job-seekers in the course of its           The employment of scientists and re-
counselling and support activities. Such         searchers, family members of Austrian
individualised subsidies continue to fall wit-   nationals and naturalised migrants and
hin this service's responsibility.               other special workers, such as media wor-
                                                 kers, pastoral workers or employees of
4.4 New developments in the                      diplomatic missions and international orga-
    employment of non-nationals                  nisations, is exempted from the AuslBG
                                                 and not subject to any ratios or quotas.
According to the Federation of Austrian
Social Insurance Institutions (Hauptver-
band der Sozialversicherungsträger) an           Transitional provisions for the new
annual average of 412,578 non-nationals          Member States
were employed in Austria in 2007. As com-
                                                 Workers from the “new” Member States,
pared with 2006, this was an increase by
                                                 including Romania and Bulgaria, have
21,883 or 5.6%. This coincided with a
                                                 enjoyed freedom of settlement but no free
decrease in the number of unemployed
                                                 labour market access (except for Maltese
non-nationals by 2,628 (down 6.2%) on
                                                 and Cypriots) since their countries' acces-
2006. Potential foreign labour supply total-
                                                 sion to the European Union. According to
led 452,441 (+1.5%) across 2007, with the
                                                 the transitional regime for the free move-
percentage of third-country nationals still
                                                 ment of workers defined in the accession
being one of the highest within the Euro-
                                                 treaties and applied by Austria, they will be
pean Union (66.5%).


                                                                                           27
Labour Market Policy 2007




admitted to the Austrian labour market in       mand for labour primarily by prioritising the
keeping with the provisions of the AuslBG,      admission of new EU citizens and thus
but are to be given preference over third-      complying with Community preference
country nationals (Community preference).       rules.
The maximum transition period of seven
                                                Preference to new EU citizens has been
years will end on 30 April 2011 for the
                                                transposed into Austrian law and consis-
countries of the May 2004 accession round
                                                tently implemented also for Austria's impor-
(EU 8) and on 31 December 2014 for
                                                tant seasonal employment sector. More
Romania and Bulgaria. Meanwhile the
                                                than 50% of the seasonally employed wor-
transitional provisions have been renewed
                                                kers in tourism and over 80% of seasonal
for another three years – until 30 April 2009
                                                workers and harvest labour in agriculture
– for the EU-8 countries and extended to
                                                come from the new EU neighbours.
the new members Romania and Bulgaria
                                                Seasonal workers are granted fixed-term
(for the time being for two years).
                                                employment permits based on needs-com-
However, following one year of uninterrup-      pliant quotas without any option for perma-
ted admission under a permit, they will be      nent access to the Austrian labour market.
granted free labour market access confir-
                                                Also the posting of new EU citizens to pro-
med by the public employment service.
                                                vide services in Austria continues to be
Their spouses and children, with whom
                                                subject to restrictions imposed by the
they have a joint residence in Austria, will
                                                AuslBG for certain protected areas (speci-
acquire the same right. The spouses and
                                                fically for the construction sector), while in
children of Romanians and Bulgarians are
                                                the liberalised services sectors it is only
subject to a waiting period of 18 months
                                                necessary to report the posted workers to
until the end of 2008, after which they will
                                                the central coordination agency (ZKO) of
be granted free access.
                                                the Federal Ministry of Finance (BMI),
As at 31 May 2008, i.e. four years after the    which also hosts the agency that checks
May 2004 EU enlargement, the number of          for illegal employment (KIAB). Whether
workers from the new Member States had          such postings are in conformity with legal
risen by 98.7% to 81,346, while the num-        and EU provisions will be examined and
ber of third-country nationals working in       confirmed by the AMS based on these
Austria had risen by a mere 3.5% across         reports. In 2007 the employment service
the same period.                                issued 5,687 EU posting confirmations - up
                                                31.9% on the year before.
This development clearly illustrates that,
with the transitional regime, Austria has
succeeded in meeting any additional de-




28
                                                                      Performance data




2008 ordinance for skilled workers              Amendments to the Act Governing
                                                the Employment of Foreign Nationals
In force since 1 January 2008, the 2008         (AuslBG) and the Act Governing
ordinance for skilled workers is another        Adjustments to the Law of Employ-
essential step within the federal govern-       ment Contracts (AVRAG) – labour
ment's policy mix to ensure a sufficient        market opened up to researchers
supply of skilled labour. Based on a joint
proposal made by the social partners in         Amendments to the AuslBG and AVRAG
their policy package for the future of the      (Federal Law Gazette I no. 78/2007), which
labour market until 2010 (Zukunft - Arbeits-    entered into force on 1 January 2008,
markt 2010), skilled workers from the new       involve the following improvements for the
Member States who help reduce the skill         admission of certain foreign workers:
shortages in 65 job groups defined by the
                                                ● Full opening of the labour market for for-
AMS may now (as at July 2008) be admit-
                                                  eign scientists and researchers; all
ted to the Austrian labour market under
                                                  scientific work in research and teaching,
eased rules, although the principle of tran-
                                                  including arts, may be done at public
sitional provisions continues to apply.
                                                  and private entities and undertakings
These skilled workers will receive a fixed-       without the need of a permit. To make
term employment permit for one year, if           the decision easier for scientists, their
they provide evidence of their skills, and if     accompanying spouses and children
no suitable worker from the available pool        will have free or easier access to the
of job-seekers can fill the job in question.      Austrian labour market.
Following one year of employment in Aus-           ► This is intended to improve Austria’s
tria such skilled workers will enjoy free            position in the international compe-
movement. Since January 2008 a total of              tition for attracting top-notch re-
3,222 skilled workers has already been               search professionals from all over
admitted to the Austrian labour market (as           the world to work here.
at 31 July 2008).




                                                                                         29
Labour Market Policy 2007




● So-called “subsidiary protection status    ● In addition the ruling of the European
  holders” will enjoy the same rights as       Court of Justice of 21 September 2006
  those eligible for asylum in Austria and     (case C 168/2004), i.e. that the Austrian
  can thus take up jobs without requiring      approach to postings of third-country
  a permit as soon as they are granted         nationals from Member States is con-
  this status.                                 trary to Community law, has meanwhile
● Moreover the authority to issue ordinan-     been transposed. Examination of whether
  ces has been widened for the employ-         such postings are in conformity with EU
  ment of seasonal workers from the new        law is now based on the notification
  EU Member States. Fixed-term permits         made by the posting company to the
  for workers in agriculture and forestry      central coordination agency in the
  can be issued for up to nine months.         Federal Ministry of Finance (BMF), as
                                               stipulated in Act Governing Adjustments
                                               to the Law of Employment Contracts
                                               (AVRAG).




30
                                     Overall economic burden relief and employment effects


5 Overall economic burden relief and employment
  effects of labour market policy

The positive effects of placement services                        employment effect of another 120,400 indi-
– such as rapidly filled vacancies, reduced                       viduals generated by active and passive
job search duration and minimised overall                         LMP spending in 2007.
economic costs of unemployment – are
                                                                  If this gross effect is set off against with-
uncontested. But active labour market sup-
                                                                  drawals, which can be allocated using the
port and insurance benefits as key compo-
                                                                  appropriate Joanneum multipliers for the
nents of labour market policy also help
                                                                  withheld contributions by employers and
boost overall employment performance.
                                                                  employees to unemployment insurance, as
Alongside their effect of direct burden relief
                                                                  such withheld contributions result in
for the labour market and active LMP-
                                                                  reduced investments (employment) by
induced upskilling of job-seekers, they also
                                                                  employers and reduced consumption by
raise the demand for education services
                                                                  employees, this computation gives a posi-
and have indirect effects on demand gene-
                                                                  tive net employment effect induced by
rated by consumption-boosting labour
                                                                  money spent under LMP programmes
market policy expenditure on programmes,
                                                                  (+14.100 employees on an annual aver-
subsidies and insurance benefits.
                                                                  age).
The integration of job-seekers into active
                                                                  The labour market burden relief and net
labour market programmes and measures
                                                                  employment effects of Austria’s labour
eased labour market pressures by roughly
                                                                  market policy produce a surplus of roughly
71,100 individuals in 2007. The employ-
                                                                  85,100 individuals on average per year,
ment multipliers developed by Joanneum
                                                                  thus reducing the registered unemploy-
Research11 for active LMP interventions
                                                                  ment rate by 2.2 percentage points.
and private consumption reveal an indirect




11
     See: Aumayr Ch. /Kurzmann R. (2007), Österreichische Beschäftigungs- und Wertschöpfungsmultiplikatoren, InTeReg Re-
     search Report no. 61-2007, May 2007; Weblink: http: //www. joanneum. at/uploads/tx_publicationlibrary/RR61. pdf.




                                                                                                                    31
Labour Market Policy 2007




Burden relief, employment and withdrawal effects of labour market policy




32
                 Income support in case of unemployment – unemployment insurance


6 Income support in case of unemployment –
  unemployment insurance

The Unemployment Insurance Act (AlVG)                                   ● Further training allowance
makes unemployment insurance manda-                                     ● Part-time allowance for older workers
tory and defines the conditions for drawing
                                                                        ● Transition benefits following on part-
unemployment benefit and unemployment
                                                                          time scheme for older workers
assistance, such as eligibility, require-
ments for and duration of claims.                                       ● Transition benefits

UI-insured are all those employees who                                  Claimants of these benefits are social
are compulsory members of a social health                               health- and pension-insured.
insurance fund under their employment
contract or entitled to services and benefits                           6.2 Requirements for claiming
of a health welfare institution (§4(1)                                      unemployment benefit
General Social Insurance Act [ASVG]). On                                The requirements for claiming unemploym-
or after 1 January 2008 quasi-freelancers                               ent benefit (Arbeitslosengeld) are
(freie DienstnehmerInnen) are included in
                                                                        ● unemployment12
this insurance scheme under §4(4) of the
ASVG.                                                                   ● availability for job placement13
Employees whose income is below the                                     ● ability to work14
marginal earnings threshold (2008:                                      ● willingness to work
€349.01; 2007: €341.16) are exempted
                                                                        ● compliance with eligibility criteria
from any liability to unemployment insuran-
ce.                                                                     ● period of claim not yet exhausted.

                                                                        Willingness to work
6.1 Benefits
The following cash benefits are granted                                 Willingness to work is defined as an unem-
under UI:                                                               ployed individual's willingness to accept a
                                                                        reasonably suitable job offered by a regio-
● Unemployment benefit
                                                                        nal AMS office, or as of 1 August 2008 by
● Unemployment assistance                                               a service provider commissioned by the
● Advance on social pension insurance                                   AMS, and/or willingness to take all measu-
  benefits                                                              res – provided they are reasonably suitable


12
     Individuals are considered unemployed if they have not found a new dependent job after termination of an employment rela-
     tionship with an employer. If they are to blame for termination or quit the job voluntarily, unemployment benefits will only be
     paid four weeks after termination of their employment.
13
     All those who can and may take up a job. While on childcare benefits, this requirement is only met if another suitable person
     or suitable facility is available to look after the child.
14
     Not included are disabled or otherwise incapacitated individuals who have been enrolled in vocational rehabilitation measures,
     have met these measures’ objectives and, in the course or as a result of such measures, comply with eligibility criteria




                                                                                                                                33
Labour Market Policy 2007




for this individual’s personal capabilities –                         such failure. In repeat cases the minimum
likely to lead towards job take-up. This may                          period of losing entitlements will be exten-
include (re)training, as well as participation                        ded by another two weeks.
in labour market reintegration measures.
On or after 1 August 2008 revised mini-                               Compliance with eligibility criteria
mum availability rules apply: unemployed
                                                                      When filing their application, first-time clai-
individuals are required to be available for
                                                                      mants of unemployment benefits have to
jobs involving at least 20 working hours a
                                                                      furnish proof of 52 weeks of UI contributory
week. Exemptions are granted to job-see-
                                                                      employment in Austria within two years
kers with care duties for children up to their
                                                                      (framework period). For repeat claimants
10th year of age or for disabled children. In
                                                                      the framework period is reduced to one
the latter case evidence is required as to
                                                                      year. Within this period they need 28
the lack of sufficiently long care options.
                                                                      weeks of UI contributory employment.
Job-seekers with such care duties will also
meet the willingness-to-work criteria if they                         Individuals under 25 years of age are sub-
are available for jobs with normal weekly                             ject to a framework period of one year and
working time of at least 16 hours.                                    an insurance period of 26 weeks within this
                                                                      period.
A job is reasonably suitable if it is adequa-
te to the unemployed individual’s physical
capabilities, does not jeopardise the unem-                           Suspension of unemployment benefit
ployed individual’s health nor violate moral
                                                                      Payment of unemployment benefits will be
standards. Pay should be fair, the work-
                                                                      suspended while claimants are on sick-
place should be reachable within an ade-
                                                                      ness benefits, further training allowance,
quate period of commuter time15, and the
                                                                      maternity benefits, or while claimants are
job should be such that statutory care
                                                                      abroad, etc.
duties can be met.
If claimants of unemployment benefits are                             Duration of benefit payment
unwilling to work – i.e. they refuse or frus-
trate opportunities by failing to accept jobs                         Duration will depend on the beneficiary’s
and/or failing to participate in labour mar-                          age and contributory record. As a rule,
ket programmes or failing to undertake suf-                           unemployment benefits are paid for 20
ficient efforts of finding a job – will lose their                    weeks. If a beneficiary furnishes proof of
entitlements to such benefits for a period of                         156 weeks of UI contributory employment
up to six weeks following ascertainment of                            within five years prior to asserting this



15
     Reasonable commuter time to and from the workplace of 1.5 hours daily (full time job: 2 hours); commuter times that are much
     beyond these reference hours need only be accepted under special circumstances.




 34
          Income support in case of unemployment – unemployment insurance




claim, he/she will be entitled to 30 weeks of   tions relate to the annual contributions
unemployment benefit payment. Claim             base of UI contributory pay recorded by the
duration is extended to 39 weeks if claim-      Federation of Austrian Social Insurance
ants have a contributory record of 312          Institutions. If no annual contribution base
weeks within ten years and completed their      is available, calculation will be based on the
40th year of life when asserting their claim,   pay received in the past six months prior to
or to 52 weeks if they have a contributory      asserting claims to benefit payment.
record of 468 weeks within fifteen years
                                                The level of family supplements is €0.97
and completed their 50th year of life when
                                                per day per eligible person. Eligible per-
asserting their claim.
                                                sons include spouses, partners, children
Payment will be extended for individuals        and grandchildren, adopted children and
participating in AMS-driven (re)training or     foster children if such eligible persons can-
labour market reintegration programmes          not be reasonably expected to earn their
by the duration of such programmes. For         own livelihood (especially through paid
individuals in a labour foundation it can be    work). Family supplements for spouses
extended by a maximum of 156 weeks. Or          (partners) are to be granted if they are lar-
it can be extended by a maximum of 209          gely dependent on the job-seekers’ earn-
weeks when training is scheduled to be of       ings, earn no more than €349.01 (marginal
longer duration or when the unemployed          earnings threshold) per month, and if
person has completed his/her 50th year of       under-age children, grandchildren, step-
life.                                           children, adopted or foster children are
                                                eligible for family supplements as well.
6.3 Amount of unemployment                      Unemployment benefits including additio-
    benefit                                     nal supplements amount to at least €24.90
Unemployment benefits are composed of           per day in 2008, provided that the amount
the basic benefit amount and, where appli-      does not exceed 80% of the previous daily
cable, of family supplements and additio-       net income for those eligible for family sup-
nal supplements.                                plements and 60% of the previous daily net
                                                income for those not eligible for family sup-
The basic amount of daily unemployment
                                                plements.
benefits is 55% of previous net earnings. If
applications for claiming unemployment          In Austria the maximum daily rate (basic
benefits are filed prior to 30 June, the in-    benefit amount) for 2008 is €41.77 (2007:
come from work received in the last but         €40.14; 2006: €39.31) totalling €1,294.87
one calendar year will be used as a basis       for a month comprising 31 calendar days.
for calculating the level of unemployment       The maximum benefit level is defined by
benefits. If applications are filed after 30    the maximum assessment basis (which is
June, the income from work received in the      slightly below the ceiling on insurable ear-
last calendar year will be used. Calcula-       nings <cap on income liable to social insu-



                                                                                           35
Labour Market Policy 2007




rance; the maximum assessment basis for        ment reference rate of €747 in 2008 (€726
2008 being €3,630, for 2007 €3,450 and         in 2007), i.e. €24.90 for 2008, and 92% for
for 2006 €3,360).                              all other cases (where again the resultant
                                               amount may not drop below 95% of the
6.4 Unemployment assistance                    computed basic benefit of €24.90 for 2008)
                                               plus any family supplements where appli-
Unemployment assistance (Notstandshilfe)
                                               cable.
is paid to unemployed individuals who
have exhausted their claim for unemploy-       Unemployment assistance is means tested
ment benefits or transition benefits, are in   against the partner’s (spouse’s, cohabitee’s)
financial distress and available for place-    net income after deducting an allowance
ment in a job. Unemployed individuals are      (which varies depending on the unemploy-
deemed to be in financial distress when-       ed person's age and insurance record).
ever they are unable to meet essential         If unemployment assistance follows on 20
needs. Assessment of financial distress        weeks of unemployment benefit receipt, it
involves the economic situation of the         will be restricted to the level of the equali-
applicant and his/her spouse (partner)         sation supplement reference rate after six
living in the same household.                  months (this reference rate being €747 for
The level of unemployment assistance is        2008, €726 for 2007 and €690 for 2006); if
defined by an ordinance (Notstandshilfe-       it follows on 30 weeks of unemployment
verordnung) and will depend on the unem-       benefit receipt, it will be restricted to subsi-
ployment benefit previously paid. Unem-        stence level (€871 for 2008, €847 for 2007
ployment assistance amounts to 95% of          and €805 for 2006).
the basic amount of the relevant unem-         Unemployment assistance will be granted
ployment benefit unless this basic benefit     for up to 52 weeks, in any case as long as
exceeds 1/30 of the equalisation supple-       claimants are in financial distress.

                                    2004        2005              2006             2007




36
          Income support in case of unemployment – unemployment insurance




6.5 Transition benefits                        6.6 Advance on social pension
                                                   benefits
Transition benefits (Übergangsgeld) have
been offered to those out of work who,         When an application is filed for a social
since 1 January 2004, cannot enter retire-     pension insurance benefit on the grounds
ment because the option of early retire-       of reduced or lost capacity to work, or for a
ment on grounds of unemployment has            transition benefit or other benefit under old-
been abolished and retirement age has          age pension insurance, unemployed appli-
been raised (refers to the 2004 – 2006         cants may receive an advance on social
period). Individuals eligible for such bene-   pension benefits until a decision is taken
fits must have been out of work for 52         on their application. Applicants need not
weeks or more within the past 15 months.       meet ability, willingness and readiness to
                                               work criteria. The level of such advanced
Transition benefits total the basic amount
                                               benefits is the same as that of the relevant
of unemployment benefits and a 25% sup-
                                               applicant’s unemployment benefit or un-
plement.
                                               employment assistance, but no more than
Any exhausted claim to unemployment            the average expected pension benefits.
benefit may be re-used for claiming transi-
                                               If the application for social pension benefits
tion benefits. Older unemployed individuals
                                               is rejected, the unemployed individual will
may also apply for such benefits if they
                                               again have to meet the requirements for
provide proof of 780 weeks of UI contribu-
                                               claiming UI benefits. The level of any un-
tory employment during the past 25 years
                                               employment benefit or unemployment assis-
preceding their application. This framework
                                               tance granted subsequently will corres-
period also includes periods of compulsory
                                               pond to the level granted prior to such
social health insurance after the end of UI
                                               advancement of funds and will be shorte-
insurance liability and periods of childcare
                                               ned by the period of payment of such
up to the child's 15th year.
                                               advancement.
The Federal Minister of Economics and
Labour has issued an ordinance (Federal        6.7 Benefits promoting
Law Gazette II no. 408/2006 on access to           employment
transition benefits) under which also peo-
ple who reach the earliest possible age of     Further training allowance
early retirement between 2007 and 2009
may apply for such transition benefits.        The further training allowance scheme
                                               (Weiterbildungsgeld) involves two types of
                                               leave granted under agreements governed
                                               by labour law. If applicants take up paid
                                               educational leave, they will have to provide
                                               proof of participation in a further education



                                                                                          37
Labour Market Policy 2007




or training programme largely covering the       contributions additionally payable at sour-
educational leave period in question. The        ce by the employer on the basis of the pre-
chosen programme needs to involve at             vious contribution base.
least 20 weekly hours of training, for peo-
                                                 It is granted to people about to reach sta-
ple lacking sufficiently long care options for
                                                 tutory retirement age after no more than
children up to their 7th year of age at least
                                                 five years, i.e. the allowance may be paid
16 weekly hours, and/or they have to pro-
                                                 for no more than five years. However, tran-
vide proof of comparable time require-
                                                 sitional provisions have been introduced
ments. In case of an unpaid leave scheme,
                                                 owing to raised retirement age. Under
the employer will have to hire a previously
                                                 these provisions the scheme can be exten-
unemployed worker as a substitute for the
                                                 ded, between 2004 and 2012, from a spe-
worker on leave.
                                                 cially defined minimum age to the end of
In both cases the conditions for taking up       the calendar month in which the earliest
such leaves are compliance with eligibility      possible retirement age is reached.
criteria for unemployment benefit.
                                                 An individual may qualify for a part-time
Further training allowance amounts to the        allowance if he/she has been in UI contri-
level of unemployment benefit applicable         butory employment for 780 weeks (inclu-
to beneficiaries, but must not fall below        ding periods of childcare up to the child’s
€14.53 a day.                                    15th year of age) within the past 25 years
                                                 prior to claiming this allowance.
Part-time allowance for older workers            Moreover, approval is subject to an agree-
                                                 ment (collective agreement, plant-level
The part-time allowance for older workers
                                                 agreement or other contractual arrange-
(Altersteilzeitgeld) is used to refund to the
                                                 ment) and to a reduction of working time to
employer any additional expenses genera-
                                                 40-60% of normal working hours.
ted by an employee’s reduced working
hours and related pay compensation (on-          The employer is obliged to calculate any
going gross pay including special bonus-         entitlement to severance pay on the basis
es). The allowance paid under this scheme        of the pay applicable prior to the reduction
amounts to 50% of the difference between         of normal working hours, to cover the
the gross pay due for the reduced working        employee in question by social insurance
hours and the gross pay due under pay            using the contribution base applicable prior
compensation arrangements, up to the             to the reduction of normal working hours,
ceiling on insurable earnings, plus the em-      and to provide pay compensation to the
ployer’s and employee’s social insurance         employee in question.




38
          Income support in case of unemployment – unemployment insurance




Processed benefit claims (awarded and disallowed)




6.8 Sanctions
While on unemployment benefit or unem-           As of 1 January 2008 placement by servi-
ployment assistance, people have to meet         ce providers commissioned by the AMS is
all the requirements for claiming such           permitted and subject to the same sanc-
benefits. If they do not, they may be sanc-      tions as those described above.
tioned.
                                                 In case of self-inflicted unemployment,
If claimants are unwilling to work, they will    benefits may be suspended for four weeks
be denied unemployment benefit or unem-          (i.e. applicants will start receiving such un-
ployment assistance as long as they re-          employment benefit/assistance four weeks
main unwilling to work (i.e. they will lose      later). If, without good reason, claimants fail
their entitlement to such benefits). Claim-      to sign on they will also lose their entitle-
ants who refuse or frustrate opportunities       ment to unemployment benefit/assistance
by failing to accept a reasonably suitable       until they return to the employment service.
job assigned to them will lose their entitle-
                                                 The new and more flexible job suitability/
ment to unemployment benefit or unem-
                                                 acceptability criteria incorporated into the
ployment assistance for a period of six
                                                 Unemployment Insurance Act (AlVG) and
weeks; in repeat cases this period will be
                                                 in force since 1 January 2005 ensure an
extended to eight weeks. This also applies
                                                 unemployed worker’s entitlement to em-
to any refusal of participating in a (re)trai-
                                                 ployment in his/her former occupation (Be-
ning scheme or labour market re-integra-
                                                 rufsschutz) during the first 100 days of
tion measure and/or failure to undertake
                                                 unemployment and supplement this enti-
sufficient efforts of finding a job.




                                                                                             39
Labour Market Policy 2007




tlement with individual pay level entitle-     At the same time the AMS has been obli-
ments (Entgeltschutz), under which job-        ged to draw up an action plan for each re-
seekers are entitled for a period of 120       gistered unemployed. Based on the expec-
days of unemployment to 80% of previous        ted need for counselling and assistance,
average pay levels (i.e. they need not         this action plan defines the ways and
accept any jobs in which they earn less).      means of such assistance, the measures
After that Entgeltschutz will only amount to   to be taken and the rationale for the
75% of previous pay levels if job-seekers      approach chosen.
continue to claim unemployment benefit.
                                               Accompanying the introduction of harmoni-
This special rule protects job-seekers from
                                               sed social pension schemes, entitlements
dropping significantly below previous pay
                                               to benefits under social pension insurance
levels even if they accept a part-time job
                                               were introduced on 1 January 2005 (AlVG)
involving fewer working hours than worked
                                               for unemployed individuals under 50 years
before. If job-seekers worked in part-time
                                               of age who, because of a means test on
jobs prior to moving into unemployment,
                                               the partner, do not qualify for unemploy-
the pay earned in the job brokered by the
                                               ment assistance. They may acquire quali-
public employment service (AMS) must not
                                               fying periods creditable towards social
drop under that of the previous part-time
                                               pension insurance under the same assess-
job.
                                               ment basis as though there was no means
                                               test.

Sanctions over time




40
                                      Effective deployment of resources by the AMS



7 Effective deployment of resources by the AMS
Staff costs and operating expenses,
capital expenditure

In 2007, the AMS used roughly €302.9 mil-        included) under its budget. The develop-
lion on capital expenditure, staff costs and     ment for the 2005 to 2008 financial years is
operating expenses (civil servants not           as follows.

AMS expenditure total (2005 - 2008) in 1,000 €




                                                                                          41
Labour Market Policy 2007




Staff deployment in 2007

Budgeted staff requirements for 2007          AMS offices. As at 31 December 2007, 35
included 4,328 established posts. An aver-    apprentices (of whom 27 were female)
age of 4,330 established posts were filled    were employed by the AMS.
by 4,853 (part-time) employees (of whom
                                              As at 31 December 2007, 1,310 of a total
23.08% were civil servants) at the federal
                                              of 4,853 employees were part-timers, and
office, as well as the laender and regional
                                              of these 92.82% were women

      Staff deployment 2007




42
                                                          Private placement services



8 Private placement services
Recruitment and job brokering in Austria       Under the Economic Stimulation Act (Kon-
are regulated by the Labour Market Pro-        junkturbelebungsgesetz), which entered
motion Act (AMFG). Any activity designed       into force on 1 July 2002, licensing of pri-
to match job-seekers and employers for         vate placement services has been facilita-
establishing an employment relationship is     ted. If a not-for profit organisation intends
considered to be such a placement activity     to provide employment services, it will suf-
unless it is exercised only occasionally and   fice for this organisation to notify the Fe-
free of charge, or is limited to particular    deral Ministry of Economics and Labour
cases. The use of recruitment agencies is      (BMWA) of such a move. Running a priva-
voluntary, and no one can be forced to         te for-profit employment service is a licens-
accept an offered vacancy or employ an         ed trade pursuant to §94(1) of Austria's
offered worker. There is no legal claim to     Industrial Code (GewO) subject to proof of
any specific job or any specific worker.       qualification. The licence for providing such
Placement services have to be impartial        services is issued by the competent district
and consider the skills, aspirations, psy-     or municipal authorities (Bezirkshaupt-
chological and physical aptitudes and so-      mannschaft, or for cities with own charter a
cial backgrounds of job-seekers on the one     Magistrat).
hand, and employer and workplace requi-
                                               Monitoring and supervision of private pla-
rements on the other. The vacancies offe-
                                               cement services is ensured by the Federal
red should be adequately paid and may not
                                               Minister of Economics and Labour and the
jeopardise job-seekers' health or violate
                                               trade authorities. Pursuant to the provis-
moral standards. Pay is considered ade-
                                               ions of the AMFG, commercial providers of
quate if it complies with statutory provi-
                                               such services are obliged to record their
sions and collective agreements. Job place-
                                               placement activities, while trade authorities
ment in Austria has to be free of charge for
                                               and the Federal Minister of Economics and
job-seekers (save artists and sports peo-
                                               Labour may inquire about their job place-
ple).
                                               ment practices and outcomes.
Under §4(1) AMFG the following entities
                                               Since 2006 a new survey method has been
may also provide “private” recruitment/
                                               applied for labour market monitoring pur-
placement services: statutory stakeholder
                                               poses using a web portal for simplified data
groups and trade associations with collec-
                                               entry. It collects data on vacancies filled
tive bargaining power, non-profit organisa-
                                               and the stock of available vacancies by
tions, as well as commercial placement
                                               trade as at 31 December of each year.
services or, provided they only place exe-
cutives, business consultants including        Private for-profit employment services saw
project and process management consul-         substantial growth in placement activities
tants.                                         in 2007. According to the survey conducted




                                                                                         43
Labour Market Policy 2007




on the cutoff date of 31 December 2007        before. Vorarlberg recorded the lowest pri-
private placement services filled 10,286      vate placement activity, with only 49 jobs
vacancies, up 2,570 on 2006.                  brokered by such providers in 2007, follow-
Their activities vary greatly by region.      ed by Lower Austria with 74 placements.
Vienna leads with 7,572 vacancies filled by   Health, teaching and cultural workers ac-
private services, followed by Salzburg with   counted for most of the job-seekers placed
1,166 placements and Upper Austria with       by such services (3,723), followed by wor-
750 placements. Placement increases in        kers in service sector jobs (2,482), legal,
2007 were highest in Vienna, where 2,050      administrative and clerical jobs (1,960) and
more vacancies were filled than in the year   other jobs (1,104).


          Private placement services
          as at 31.12.2007




44
                                                                Temporary agency work



9 Temporary agency work (TAW)
The hiring out of workers to work for third      authorities, while the labour inspectorates
parties is regulated by the Temporary            monitor compliance with health and safety
Agency Work Act (AÜG). This means that           at work and the social insurance institu-
workers are made available temporarily by        tions compliance with social insurance
an agency (hirer-out) to work for an em-         obligations.
ployer (hirer). For this purpose an employ-
                                                 Under §13(4) AÜG agencies have to keep
ment relationship is established between
                                                 ongoing records on the hiring out of
the hirer-out and the worker. The AÜG in-
                                                 agency workers and submit once a year on
cludes comprehensive rules to ensure pro-
                                                 31 July (cutoff date) data on the number of
tection of temporary agency workers, such
                                                 hired-out workers, the number of hiring
rules relating primarily to matters of em-
                                                 companies and the number of currently
ployment contracts, health and safety at
                                                 hired-out workers.
work and social insurance law. The worker
is entitled to adequate local pay, adequacy      Since 2006 the Federal Minister of Econo-
being based on the statutory or collectively     mics and Labour has made available a
agreed pay payable by the hirer for similar      web portal for simplified data entry. Accor-
jobs. In addition, a temporary agency work-      ding to the outcomes of the 2007 survey
er will be subject to the working time rules     1,608 temporary work agencies had 66,688
of the collective agreement and/or legisla-      agency workers actually working on 31
tion applicable to the hirer.                    July 2007. This corresponds to 2.1% of all
                                                 blue-collar and white-collar workers in Aus-
Since TAW is a licensed trade under
                                                 tria. This signifies that the number of hired
Austria’s Industrial Code (GewO), the pro-
                                                 out workers has more than doubled since
vision of such a service requires licensing
                                                 2000 (up 36,568), but caution is advisable
by the locally competent trade authority.
                                                 as the new survey method used for the first
Monitoring and supervision of such agen-         time on the cutoff date in 2006 might distort
cies is ensured by the Federal Minister of       comparison with previous years.
Economics and Labour and the trade

Workers hired out 2000 - 2007 (according to survey on cutoff date*)




                                                                                           45
Labour Market Policy 2007




Women’s share was 18% (12,490), while            (11,881 workers hired out or 17.8%) and
men accounted for the majority of agency         Styria (10,656 workers hired out or 15.9%).
workers (71.5%). The proportion of blue-
                                                 An analysis by lines and groups of busi-
collar workers is most pronounced in the
                                                 nesses revealed that the great majority of
foreign workers’ group (94.6%). Roughly
                                                 temps have been hired out to industry
64% of blue-collar workers have employ-
                                                 (26,638 workers), small businesses, crafts
ment relationships of less than 6 months,
                                                 and services (24,721 workers) totalling a
while 52% of white-collar workers are hired
                                                 relative share of 77%.
out for more than 12 months.
                                                 Retail and tourism saw their relative share
If broken down by laender, Upper Austria is
                                                 grow most (28.0%, or 17.4%, respectively),
leading the pack with 19,173 workers hired
                                                 while the number of temps in banking and
out (28.7%) followed by Vienna (13,635
                                                 insurance dropped by 16.7%.
workers hired out or 20.4%), Lower Austria

Workers hired out (as at 31.7.2008) main results by laender (provinces)




46
                                               Labour market indicators




Labour market indicators 2007: women and men




Labour market indicators 2007: women




                                                                    47
Labour Market Policy 2007




Labour market indicators 2007: men




Apprenticeship market




48