The possibility of earning additional income while receiving unemployment benefits is being eliminated, according to Minister of Economics Wolfgang Hattmannsdorfer (ÖVP) at a press conference during the government retreat on Wednesday. For older workers, however, there will still be an option to earn additional income for six months. Long-term unemployed individuals are exempt from this change. Social Minister Korinna Schumann (SPÖ) promoted qualification measures, particularly in the care sector.
Despite the long recession phase, Schumann stated that the labor market remains “surprisingly stable.” However, nearly 400,000 unemployed people is still a shockingly high number, and the government will work on finding ways to counteract this.
Efforts in the Care Sector
The demographic shift will require more workers in the care sector. To address this demand, the care scholarship program will be continued. In 2024, 12,000 scholarships were granted, and Schumann aims to reach this number again in 2025 despite budget constraints.
Hattmannsdorfer also emphasized the need for skilled immigration, pointing out the necessity of improving the recognition process for foreign qualifications. He mentioned that it doesn’t matter to a caregiver from Manila whether they land in Vienna or Munich, and if their qualifications are more recognized in Germany, resulting in higher wages, that would be detrimental to Austria.
Additional Income Seen as Discouraging Work
However, Hattmannsdorfer emphasized the need for more incentives within the social system to enable individuals to accept full-time positions. He addressed a planned change in the government program where the option to earn additional income while receiving unemployment benefits will be mostly abolished, stating that “this is discouraging work.” Currently, individuals can earn up to €1,800 net per month through such a system, which hinders people from returning to the labor market quickly.
Long-term unemployed individuals will still be able to earn additional income for up to six months, and existing minor jobs can continue. However, the limit for minor employment will be frozen at the 2025 level (€551) starting in 2026.
Education Minister Christoph Wiederkehr (NEOS) also expressed a commitment to higher qualification programs. According to Wiederkehr, the unemployment rate for people with only a compulsory school diploma is significantly higher, at over 21%.
From the perspective of the FPÖ, the announced measures will not save the labor market. Social spokesperson Dagmar Belakowitsch views the continuation of the training initiative in the care sector as the only positive aspect. From the Green Party, social spokesperson Markus Koza stated that the measures his party had previously introduced are simply being continued: “Not much needs to be invented.” The Chamber of Commerce expressed positive remarks, but also noted the need for temporary access to short-time work.
Rejection from the Chamber of Labor
The President of the Chamber of Labor, Renate Anderl, strongly rejected the measures on Wednesday. She sees no contribution to solving the current labor market challenges. “The failures that resulted from previous governments not implementing a modern labor market reform must now be borne by the unemployed,” Anderl stated in a press release.
From the Chamber of Labor’s perspective, there is no need for additional tightening of the already strict unemployment insurance law. For many job seekers, minor employment is the only way to make a living, and it provides them with a “foot in the door” to the labor market. Instead of the planned restrictions, Anderl emphasized the need for targeted job placement and effective qualification measures. The Chamber of Labor is calling for a reorientation of labor market policy, focusing on “advising rather than punishing.”
