LABOUR MARKET POLICY IN AUSTRIA 2012 - …

1 LABOUR MARKET POLICY IN AUSTRIA 2012 FEDERAL MINISTRY OF LABOUR , SOCIAL AFFAIRS AND CONSUMER PROTECTIONS tubenring 1, 1010 ViennaTel.: +43 1 711 00 0 report, a detailed compilation of LABOUR MARKET data, and a short report on the cur-rent trends in the LABOUR MARKET are also available at: statistical tables on the development of unemployment and employment in AUSTRIA can be accessed from the internet at: owner and publisher: Federal Ministry of LABOUR , Social Affairs and Consumer Pro-tection; Stubenring 1, 1010 Vienna Responsible for the content: Division VI of the Federal Ministry of LABOUR , Social Affairs and Consumer Protection, APF Team Compiled by: Eva Auer, Dagmar Brandst tter, Andreas Buzek, Manfred Clemenz, Claudia Friedenthal, Peter Grahofer, Birgit Neuhold, Silvia Perfler, Sonja Schm ckel, Anika T rk Place of publishing and production: Vienna, September 2013 Layout: G nter Jexenflicker, BMASK Printed by: BMASK ISBN: 978-3-85010-334-3 Ordering information: Available from the BMASK Or-dering Service or by e-mail: rights reserved: Any use (also in part) of this publication is only allowed with the media owner s permission.

2 This is particularly applicable to any kind of reproduction, translation, microfilming, broadcasting on TV and radio, as well as digital processing and data feeding (via Internet or CDs etc.)Vienna, October 2013 1 INHALTSUMMARY 31 LABOUR MARKET DEVELOPMENT A DYNAMIC ADJUSTMENT TO STRUCTURAL CHANGES 52 THE PRINCIPLES OF AUSTRIAN LABOUR MARKET POLICY A comparison of LABOUR MARKET POLICY in European countries 133 SPENDING ON LABOUR MARKET POLICY International comparison of Austrian spending on active and activating LABOUR MARKET POLICY Spending according to socio-economic groups 194 PERFORMANCE OF THE PUBLIC EMPLOYMENT SERVICE (AMS) AND ACTIVE LABOUR MARKET POLICY Job placement by the Public Employment Service (AMS) LABOUR MARKET POLICY for young peo International perspectives LABOUR MARKET POLICY for young people in AUSTRIA Outlook for the priorities of 2013.

3 Medium to long-term reform options New developments in the employment of foreign citizens 345 EFFECTS OF LABOUR MARKET POLICY AND THE COSTS OF UNEMPLOYMENT Employment effects of LABOUR MARKET POLICY and easing of the burden on the overall economy Fiscal costs of unemployment 386 A SUBSISTENCE INCOME FOR THE UNEMPLOYED - UNEMPLOYMENT IN-SURANCE Benefits Conditions of entitlement to unemployment benefit Amount of unemployment benefit Unemployment assistance Transition benefit Advances on benefits from pension insurance Benefits for the promotion of employment Sanctions 49 27 THE EFFECTIVE USE OF RESOURCES BY THE AMS 538 EMPLOYMENT AGENCIES AND PRIVATE RECRUITMENT AGENCIES 2012 559 LABOUR MARKET DATA FOR 2012 , AMS SUBSIDIES AND BENEFITS IN 2012 57 SUMMAry3 SUMMARYThe development of the LABOUR MARKET in 2012 was characterised by a further increase in ac-tively employed persons and a simultaneous rise in registered unemployed.

4 Since the crisis year 2009, more than 110,000 jobs have been created in AUSTRIA . However, as an increasing number of older workers are remaining in the LABOUR MARKET for longer, and the trend towards higher participation in employment by women is continuing, the additional number of workers has ex-ceeded the growth in new jobs. A further reason is the continuing difficult economic situation in our most important trading countries. In particular, the economic situation in AUSTRIA s main trading partner Germany worsened in 2012 . For this reason, the increase in unemployment accelerated to + in the second half of 2012 (particularly in the export sector) after +4,9% in the first half of the number of actively employed persons in 2012 remained at a high level of 3,370,479 (up 47,154 or + year on year).

5 The trend in the number of unemployed was more unfavourable in the case of men than in that of women: On average in 2012 , unemployment rose by (+9,260) in the case of men and by (+4,681) among women. The tense economic situation had a particularly negative effect on the male-dominated sectors of employment agencies and construction. Compared to other European countries, AUSTRIA had one of the lowest unemployment rates in 2012 at (EU-27: ). With an employment rate of in 2011 according to Eurostat, AUSTRIA ranked fifth within the European Union after the Netherlands, Sweden, Germany and Denmark (EU-27: ) . The funding for active and activating LABOUR MARKET POLICY measures amounted to around 2,085 million in 2012 . The Public Employment Service s budget for active LABOUR MARKET promo-tion amounted to 971 million.

6 Since 2002, the proportion of the total expenditure on LABOUR MARKET POLICY accounted for by spending on active and activating measures has thus risen by more than 13,6 percentage points to 35,6%. In 2012 , a total of 397,390 persons (of whom 202,221 were women) were included in AMS promo-tional measures, and 1,092,802 new support cases were approved. The greater part of funding relates to the field of qualifications, particularly educational measures ( of persons); the most important mechanisms for promoting employment ( of persons) are integration sub-sidies, socio-economic enterprises and community work projects. Support measures include advisory and support centres, child care benefits and the business start-up programme ( of all persons; multiple subsidies are possible).41 LABOUR MARKET DEvELOPMENT A DyNAMIC ADJUSTMENT TO STrUCTUr AL CHANGES51 LABOUR MARKET DEVELOPMENT A DYNAMIC ADJUSTMENT TO STRUCTURAL CHANGESDEVELOPMENTS IN 2012 The development of the LABOUR MARKET in 2012 was characterised by a further increase in actively employed persons and a simultaneous rise in registered unemployed.

7 Since the crisis year 2009, more than 110,000 jobs have been created in AUSTRIA . However, as an increasing number of older workers are remaining in the LABOUR MARKET for longer, and the trend towards higher participation in employment by women is continuing, the additional number of workers has exceeded the growth in new jobs. A further reason is the continuing difficult economic situation in our most important trading countries. In particular, the economic situation in AUSTRIA s main trading partner Germany worsened in 2012 . For this reason, the increase in unemployment accelerated to + in the second half of 2012 (particularly in the export sector) after + in the first half of the year. The number of actively employed persons in 2012 remained at a high level of 3,370,479 (up 47,154 or + year on year). viewed according to gender, men benefited from the rise in employment rather more than women on average over 2012 : among men, the rise of the number of actively employed persons was ; in the case of women it was The following sectors were mainly responsible for the rise in actively employed men: manufacturing and commerce, information and communications services, the hospitality industry and construction.

8 Among women it was public administration, the hospitality industry, commerce and manufacturing. The trend in the number of unemployed was more unfavourable in the case of men than in that of women: On average in 2012 , unemployment rose by (+9,260) in the case of men and by (+4,681) among women. The tense economic situation had a particularly negative effect on the male-dominated sectors of employment agencies and construction. The trend in unemployment among 15-24 year olds in relation to overall unemployment was re-latively favourable in 2012 (unemployed persons aged 15-24: + , unemployed overall: + ). Whereas in the first half of 2012 the rise among men (+ ) and women (+ ) was roughly equal, there was a clear rise of + among men in the second half of the year. By contrast, the rise in unemployment among women slowed to 1%.

9 For demographic reasons, unemployment among persons over 50 (+ ) rose noticeably more than overall unemployment (+ ). Unemployment among men and women in this age group rose similarly by + and +10% respectively in 2012 . In the first half of 2012 , there was a rise of + among men, and +9% among women. This increase intensified in the second half of the year to + among men and + among LABOUR MARKET DEvELOPMENT A DyNAMIC ADJUSTMENT TO STrUCTUr AL CHANGES6 EMPLOYMENTIn spite of the sluggish state of the economy in 2012 with real GDP growth of only , the number of employment relationships in AUSTRIA on average in 2012 - according to the data pub-lished by the Main Federation of Social Insurance Institutions increased by 43,705 (or ) to 3,465,453 compared to the previous year. If those completing military service and persons on parental leave who have an ongoing employment relationship are disregarded, there was on annual average an increase in the number of actively employed persons of 47,154 (+ ) to 3,370,479.

10 As in the previous year, the number of employees rose constantly from January to December 2012 . However, the gradual growth in employment was noticeably weaker in 2012 than in the previous 2013, the Austrian Institute of Economic research is expecting real GDP growth of merely , and only in 2014 a slight recovery of GDP growth to a rate of (forecast in June 2013).UNEMPLOYMENTOn average over the year, unemployment rose by 13,941 (+ ) to 260,643. The rise in unemploy-ment which already began in the second half of 2011 could be observed in every month of 2012 . Taking participation in training courses into account, the increase in 2012 was +17,312 (+ ) to 327,246. Differentiated according to gender, men were more affected than women: if participation in training programmes is taken into account, male unemployment rose by or 8,747 in the first half of 2011, and by 8% or 12,706 in the second half of 2012 .