Current Public Work Force Systems – Austrian Programs Christoph Badelt Austrian Embassy, Washington, DC 13th November 2018
OVERVIEW I. LOCATING THE TOPIC II.ACTIVE LABOR MARKET POLICY IN AUSTRIA 1
Long Run Development of Unemployment 10,0 8,0 Rate resp. changes from the 6,0 previous year in % 4,0 2,0 0,0 -2,0 -4,0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unemployment rate (national definition) Economic growth (real) Employees (active) Unemployment rate (international definition) Data for 2018 and 2019 based on the WIFO forecast from september 2018. 2 S: Labour Market Service, Main Association of Austrian Social Security, Statistics Austria, WIFO computations.
S: AMECO (May 2018); WIFO. Harmonised unemplyment rate in %, 2017 10 15 20 25 0 5 Czech Republic 2,9 Germany 3,8 Malta 4 Hungary 4,2 4,4 4,4 4,9 4,9 4,9 5,5 5,6 5,7 5,8 6,2 United Kingdom United States Netherlands Poland Romania Austria Luxembourg Denmark Estonia EU28 = 7,6% Bulgaria Slovenia 6,6 6,7 6,7 7,1 7,1 8,1 8,6 8,7 Ireland Sweden within EU Countries Belgium Lithuania Unemployment Slovakia Finland Latvia Portugal 9 France 9,4 11,1 11,1 11,2 Croatia Cyprus Italy 17,2 Spain 21,5 Greece 3
Long Term Unemployed Persons (National Definitions) Unemployment* Long term unemployment* Persons Persons In % of total unemployment 2008 262.762 53.427 20,3 2017 412.074 153.199 37,2 450 45 400 40 350 35 300 30 250 25 In 1.000 In % 200 20 150 15 100 10 50 5 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unemployed persons* (left axis) Long term unemployed persons* (left axis) Long term unemployed persons in % of all unemployed persons* (right axis) *) Including persons in training S: Austrian Labour Market Service, WIFO-computations. Long term unemployment: Unemployed persons and persons in training who are 4 without a job for more than a year (without taking into account recesses shorter than 62 days). Nat
Unemployment and Qualification (National Definition) In % of the labour force for different 25 levels of education 20 15 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Primary education Vocational education Lower secondary education Upper secondary education Tertiary education 5 S: Austrian Labour Market Service, Main Association of Austrian Social Security, Statistics Austria, WIFO computations.
OVERVIEW I. LOCATING THE TOPIC II.ACTIVE LABOR MARKET POLICY IN AUSTRIA 6
Structure of Labor Market Policy Spending in Austria 2010 2011 2012 2013 2014 2015 2016 2017 In Mio. € Active LMP 1 ) 1.324 1.177 1.175 1.269 1.346 1.309 1.452 1.535 PES 1 . 079 975 971 1 . 039 1 . 124 1 . 112 1 . 236 1 . 327 Activating LMP for 757 661 703 827 906 833 830 842 skills training Activating LMP: 255 228 207 204 214 269 352 440 part-time allowance Passive LMP 2 ) 3.529 3.436 3.434 3.778 4.214 4.710 4.745 4.608 Expenditure total 3 ) 6.338 6.007 6.080 6.677 7.392 7.873 8.193 8.310 Total of active and 37% 34% 34% 34% 33% 31% 32% 34% activating LMP as % of total expenses S: Basisinformationsbericht: Arbeitsmarktpolitik - Institutionen, Verfahren, Maßnahmen (2016/2017) PES annual reports 2009-2016; BMASGK, Division VI/A/6; 1) Incl. compulsory education/training, Training Guarantee, etc., IEF-BMASK apprenticeship training bonus (Insolvency Contingency Fund); 2) Unemployment benefits, unemployment assistance, etc.; including bridge benefits, excluding 7 activating UI funds.; 3) incl. administration costs.
Expenditures for Workforce Programs in International Comparison 80 76 72 70 64 61 60 Expenditures for training in % 58 56 of all LMP measures, 2016 50 48 47 43 43 40 39 40 34 30 29 28 30 25 23 20 15 15 14 10 8 10 6 4 4 3 2 0 AUT DEU HRV CYP LVA FIN PRT IRL AUT EST ITA*) EU28 BGR LTU LUX BEL ESP DNK ROM SWE NLD GRC MLT SVN SVK CZE POL HUN 8 S: Eurostat, Labour Market Policy Database. *) Data for Italy from 2015; EU28: unweighted average without UK (no data available).
PES: Structure of Funded Cases, LMP Funding, 2017 Skills Training Employment Support Total number of funded cases in % Measures in % Measures in % 2011 955.725 82 7 11 2014 1.081.476 76 9 15 2017 1.076.803 71 8 21 Skills Training 760.978 (71%) Support Measures 223.245(21%) Employment Measures 92.580 (9%) 9 S: Austrian Labour Market Service; Federal Ministry of Labour, Social Affairs, Health and Consumer Protection.
PES: Structure of Expenditures, LMP Funding Budget, 2017 Total expenditures – LMP policy Skills Training Employment Support funding budget in Mio. € in % Measures in % Measures in % 2011 974,7 68 23 9 2014 1.124,2 62 28 10 2017 1.326,6 55 35 10 Skills Training 730,6 Mio. € ( 55%) Employment Measures 460,6 Mio. € ( 35%) Support Measures 135,4 Mio. € ( 10%) S: Austrian Labour Market Service; Federal Ministry of Labour, Social Affairs, Health and Consumer Protection. Expenditures including social security 10 contributions.
Important Examples of Workforce Programs Support of individuals during the job search process (Placement Service by PES) Job training by institutions – (subsidies to training establishments, subsidized training participants) Occupational orientation Job search Skills training Subsidies to individuals for training in private institutions Subsidies to employers for training Subsidies to apprenticeships 11
Role of Social Partners and of „ Provinces “ (Bundesländer) 1 Key targets of LMP are defined on the federal level, but there is room for decisions both in the 9 province offices of PES and in the 99 regional offices of PES Role of Provinces PES organisations on the regional level – cooperation with Regional Governments In some cases, direct workforce initiatives of Provinces 12
Role of Social Partners and of „ Provinces “ (Bundesländer) 2 Social Partners Members of Administrative Board of Public Employment Service (PES) (AMS) – thus influencing policy formulation Also active role of social partners on the provincial level, both in decision making and in implementation of LMP (e.g. joint projects between social partners and regional PES offices) Important providers of training programs, thus partners of PES in implementation of workforce programs 13
Thank you for your attention! 14
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