Labour market reforms are never easy and rarely find broad support. I recently read about the latest government meetings, at which the coalition presented its new labour market reform package. My impression is that Austria is at least addressing some unpleasant but necessary issues openly.
At the centre of the discussion were Economics Minister Wolfgang Hattmannsdorfer, Social Affairs Minister Korinna Schumann, and Education Minister Christoph Wiederkehr, who outlined a reform package aimed at strengthening employment, qualifications, and long-term labour market stability.
As I read, one of the most discussed changes is the decision to abolish the option of earning significant additional income while receiving unemployment benefits. Until now, people could earn up to €1,800 net per month, a system the government believes has unintentionally delayed returns to full-time employment.
From my perspective, the intention here is clear: the government wants to make full-time work more attractive again, while ensuring that social support remains a bridge—not a dead end. Importantly, the reforms still leave room for flexibility. Long-term unemployed individuals will be allowed to earn additional income for six months, and minor employment will continue, even though the earnings threshold will be frozen at €551 from 2026.
What really stood out to me was the strong, consistent focus on education and qualifications. Education Minister Christoph Wiederkehr highlighted the need for higher qualifications, noting that the unemployment rate among people with only a compulsory school education is 21 percent.
Social Affairs Minister Korinna Schumann reinforced this point by emphasising qualification programs, especially in the care sector. She noted that despite ongoing economic uncertainty, Austria’s labour market has remained surprisingly stable. With demographic changes accelerating, the demand for care workers is only growing.
It’s reassuring to see that care scholarships will continue, especially considering that 12,000 grants were awarded last year.
Another aspect I find particularly forward-thinking is the government’s commitment to qualified immigration. Minister Hattmannsdorfer rightly pointed out that attracting skilled workers isn’t enough if their qualifications aren’t recognised quickly and fairly. Whether someone is trained in Vienna or elsewhere, their skills should be acknowledged on equal terms. Delays or inconsistencies in recognition don’t just hurt individuals—they weaken Austria’s competitiveness as a place to work and live. Streamlining these processes feels long overdue.
Beyond immediate labour market measures, the government is also thinking long term. Support for the environmental foundation, which focuses on training for green jobs, will continue beyond 2026. There’s also sustained backing for women entering technology and skilled trades, areas where talent is urgently needed. These initiatives signal an understanding that modern labour markets must be inclusive, sustainable, and future-oriented.
The FPÖ has criticised the package as ineffective, while the Chamber of Commerce welcomed many aspects but called for temporary access to short-term work models. With nearly 400,000 people still unemployed, no one is pretending that this package is a silver bullet.
Still, what I appreciate is the government’s clear commitment to seeking workable solutions rather than avoiding tough decisions. Reforming labour markets is complex, especially in uncertain economic times—but standing still isn’t an option.
If you notice any inaccuracies in my writing, please get in touch with me. I will be happy to correct it.