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Austria’s public employment agency set for budget cuts in 2024 (Austrian Broadcasting Corporation)

17 July 2023

Austria’s Public Employment Service (AMS) is preparing for fewer public funds for the coming year because special programs such as the ‘Springboard Action’ for the long-term unemployed are ending and fewer unemployed are expected, reports The Austrian Broadcasting Corporation (Orf.at). AMS Austria board member Petra Draxl said the funding budget for the active labour market policy is expected to drop to €1.1 billion in 2024 after €1.3 billion in the current year.

The sum is the starting point for negotiations in August with the responsible ministries, but is included both in the long-term AMS budget plan and in the federal budget forecast.

The funding budget is used to finance, among other things, qualification, advisory and support services, wage cost subsidies for companies and temporary employment within the framework of non-profit temporary employment and in socio-economic companies. Short-time work (implemented during Covid-19) is not included in the funding budget. Unemployment benefit and unemployment assistance are insurance benefits and are paid from unemployment insurance. The Local reports that during the pandemic, the AMS had significantly more funding available for active labour market policy. In 2021, it was €1.5 billion, and in 2022, it was about €1.6 billion.