In a troubling advancement for Austria’s economy, recent labor market data reveals a continuous rise in unemployment and an increase in insolvencies, prompting urgent calls for government action. Helene Schuberth,General Secretary of the austrian Trade Union Federation (ÖGB),emphasizes the need for a notable boost in the budget for the Public Employment Service (AMS) to enhance training and support for job seekers. She highlights the particular challenges faced by women, many of whom are underemployed due to caregiving responsibilities, and advocates for increased investment in qualification programs and accessible childcare. additionally,Schuberth criticizes the current unemployment benefits,which she argues are insufficient at a 55% net replacement rate,especially amid rising living costs that contribute to financial distress for many Austrians.
Time.news Editor (TNE): Welcome,Helene Schuberth,General Secretary of the Austrian Trade Union Federation (ÖGB). Thank you for joining us today to discuss the recent labor market developments in Austria. The increase in unemployment and insolvencies has been troubling. Could you share your insights on this situation?
Helene Schuberth (HS): Thank you for having me. The recent labor market data indicates a concerning trend, with unemployment rising to 7.1% as of late 2024, up from 6.1% in late 2022 and 6.5% in late 2023 [1]. this upward trajectory is alarmingly linked to various factors including the lingering impacts of the COVID-19 pandemic and international crises. To counter this, we need to significantly increase the budget for the Public Employment Service (AMS) to provide better training and support for job seekers.
TNE: You mentioned the specific challenges faced by women in the labor market. How do these challenges manifest, and what solutions do you propose?
HS: Indeed, many women are underemployed primarily due to caregiving responsibilities, which limits their opportunities in the workforce. This situation is exacerbated by insufficient access to qualification programs and affordable childcare services. Therefore, investing in these areas is crucial. By enhancing training opportunities and making childcare more accessible, we can empower women to engage fully in the labor market [1].
TNE: The current unemployment benefits have also come under scrutiny. Can you elaborate on your concerns regarding these benefits?
HS: The unemployment benefits are currently set at a 55% net replacement rate, which is inadequate given the rising living costs many Austrians face. As inflation continues to impact everyday expenses, this level of support is insufficient, leading to financial distress among job seekers. We need a strong intervention from the government to enhance these benefits to ensure that they provide a livable income during periods of unemployment [1].
TNE: What immediate steps can be taken by the government to address these pressing issues in the labor market?
HS: Immediate steps should include a review and adjustment of unemployment benefits, ensuring they align with current living costs to support those in need effectively. Moreover, a comprehensive plan to increase funding for the AMS will allow for better job training programs and support services.This should be coupled with policies aimed at increasing the availability of affordable childcare to encourage more women to enter or re-enter the workforce [1].
TNE: As we look toward the future, what strategic advice would you offer to both job seekers and policymakers?
HS: For job seekers, continuous skill growth is vital. They should actively seek available training programs that enhance their employability in a rapidly changing job market. For policymakers,it is indeed essential to prioritize investments in employment services and social safety nets. Practical, inclusive policies that address the needs of the vulnerable segments of the population, especially women, can foster a more resilient economy [2].
TNE: Thank you, Helene, for your valuable insights. It’s clear that proactive measures are needed to navigate these challenging times in Austria’s labor market. We appreciate your time and perspective on these critical issues.
HS: Thank you for the opportunity to discuss these vital matters. It’s crucial that we address these challenges together for a stronger future in austria.