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Outline

Outline. Current Labour Market and Economic Situation / Forecasts Impact of the Economic Crisis Political Reaction Labour Market Measures Employment Effects and Outlook Short-time working and short-time working with skills enhancement in the framework of ESF (Claudia Galehr; PES).

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Outline

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  1. Outline • Current Labour Market and Economic Situation / Forecasts • Impact of the Economic Crisis • Political Reaction • Labour Market Measures • Employment Effects and Outlook • Short-time working and short-time working with skills enhancement in the framework of ESF (Claudia Galehr; PES) Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  2. Labour Market Situation in Austria 2008 Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  3. Labour Market Situation in Austria - September 2009 Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  4. Unemployment Rates in the EU (July 2009) Netherlands Austria Cyprus Denmark Slovenia Romania Czech Republic Luxemburg Bulgaria Malta Italy Germany United Kingdom Belgium Poland Greece Finland EU 27 Sweden EU 15 EU 25 Portugal France Hungary Slovak Republic Ireland Estonia Lithuania Latvia Spain Source: Eurostat Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  5. Labour Market Situation in Austria – Forecasts Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  6. Economic Situation in Austria – ForecastsGDP 2008; +1.8% EC Economic forecast for Austria:2008 2009 2010GDP +1.8%-4.0% -0.1%Unemployment rate3.8% 6.0% 7.1% Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  7. Impact of the current Economic Crisis • Rising unemployment: sharpest increase since the 1950s+27.9% in September 2009 (vs. September 2008) • Declining employment since February 2009 (first time in 7 years) • Young people among the most affected: +24.4% unemployed • Men are more severely hit than women: +36.1% vs. +19.2% • Foreigners are affected more than Austrians: +32.9% vs. +26.8% • Sectors most severely hit: production of goods (+69.8% unemployed), temporary agency workers (+29.7%), construction (+33.5%) Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  8. Recent Labour Market DevelopmentEmployment, Unemployment – Change in percent (compared to previous year) Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  9. Political Reaction – Economic Stimulus Packages • Economic Stimulus Package I: approx. € 1 billionFinancing for SME and infrastructure measures • Economic Stimulus Package II: approx. € 2 billion“Investment Campaign” (a.o. regional employment programmes amounting to € 150 million) • Tax reform amounting to € 2.7 billionin order to encourage demand and boost purchasing power = Altogether more than 2% of the Austrian GDP Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  10. Political Reaction (2) – Labour Market; Employment Packages I, II • Record budget for active labour market policy in 2009:€ 1.312 billion (+44%; + € 400 million) • Increase of AMS staff by 200 (about 5%) to 4,680 (service area for early interventions and professional guidance) • Emphasis on (high-quality) qualification measuresand skills training campaigns68,450 course participants (end of September, +35.6%) • Focus on youth programmes • Increased use of short-time working Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  11. Labour Market Measures (1) – Youth Programmes Youth employment package 2008 • “Guaranteed training”for young people (up to 18 years) • Including measures supporting company-based andsupra-company apprenticeship training (upgraded as regular component of vocational training) • 9,300supra-company apprenticeship training positions available in 2008/2009 (full training: up to 3 years) • Needs-compliant upgrading of support schemes: increase to 12,300 planned for 2009/2010 (+3,000) Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  12. Labour Market Measures (2) – Youth Programmes “Campaign Future” 2009; for young jobseekers aged 19 to 24 • “Guaranteed training or employment” (targeted training measure, workplace or subsidized employment within six months) • Needs-compliant (further) education measures, supplemented by low-threshold measures aiming at labour market integration • New jobs in the public sector (nursery school teachers, police officers, healthcare workers) Maintaining employment - “Youth foundation”; for young people aged 19 to 24 • Proven LMP instrument “labour foundation” has been extended by the introduction of the “youth foundation” = Altogether approx. € 500 million for young people in 2009 Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  13. Labour Market Measures (3) – Labour Foundations = Austrian (social partner) LMP instrument in order to support adjustment processes due to structural change (since 1980s) • Combination of tailor-made measures: occupational orientation (resp. staff selection), qualification and training, support with job-seeking • Duration: up to 3 years (participants older than 50: up to 4 years) • Financing: companies, regional bodies, AMS (unemployment benefit) Different types: • Outplacement foundations in the case of imminent staff reduction • Implacement foundations in the case of staff / qualification shortages Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  14. Labour Market Measures (4) Redistributing working time: • Reform of part-time allowance scheme for older workers • Modified solidarity bonus scheme (job rotation scheme) – new: apprentices from a supra-company apprenticeship training • Modified educational leave – minimum duration of employment 6 months instead of 1 year; reduced minimum duration of educational leave 2 months instead of 3 months) • New initiative “Aktion 4000” – employment opportunities for long-term unemployed in communities or charitable organisations; 2/3 of labour costs are born by the PES in the form of a wage subsidy (planned for 4,800 persons by the end of 2010) • Subsidies to single-person businesses – PES will pay 25% of the employee’s gross wage for one year when they hire an employee for the first time (target group: young job-seekers aged between 19 and 30 years) Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  15. Employment Effects and Outlook Jobs expected to be preserved or created;estimates by WIFO • Effects of Austrian Economic Stimulus and Employment Packages –97,000 jobs • Employment Packages I and II – approx. 45,000 jobs • Impact of the measures adopted yet to be monitored … • New measures - Employment Package III (currently under discussion - e.g. reduction of working hours) • Long-term effect of crisis measures? Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

  16. Thank you for your attention! tanja.jandl-gartner@bmask.gv.at Tanja Jandl-Gartner MISEP Meeting in Stockholm, 7th - 8th October 2009

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