Intervention(s)
Starting in October 2020, the Public Employment Service for Lower Austria (Arbeitsmarktservice Niederoesterreich (AMS NOE) is piloting an intervention that aims to eradicate long-term unemployment and improve social, health and wellbeing outcomes for people in long-term unemployment, by bringing them back into employment. The intervention will provide a guaranteed job complemented by targeted counseling to support people in long-term unemployment.
The intervention will take place in one town in Lower Austria, Gramatneusiedl.
All residents who have been unemployed for over 9 months are eligible to participate.
The initial period for the project is set until 2024 and budgeted with EUR 7.4 Million for the full duration. The {AMS} calculates that the annual cost of the intervention is EUR 29,841.39 per participant.
Preparatory training
The program is implemented by the private service-provider itworks, which specializes in implementing active labour market programmes for the {AMS}.
{itworks} provides preparatory training for participants, and continues counseling and training after participants have taken up employment. The preparatory training phase is scheduled for a maximum of eight weeks, but durations may vary depending on individual conditions and progress.
Each participant receives a tailored curriculum according to their individual needs.
This may include individual and group counseling, skills development, supporting self-initiative, and assistance with health-related problems. Participants will continue to be encouraged to take up regular employment outside of the program if available.
Guaranteed jobs
After successful completion of the preparatory training phase, participants join the job guarantee program for up to 3 years. Participants are supported to find a job on the regular labor market, for which the {AMS} subsidizes wage costs at a 100\% rate for the first 3 months, and at 2/3 for the subsequent 9 months. Those that remain without job placement will receive an employment offer with a newly established social enterprise operated by {itworks}. All participants will be paid at least minimum wage. The social enterprise implements projects at the municipal and regional level. Tasks may include activities such as working in childcare, gardening, renovation, and carpentry depending on orders acquired by the enterprise. In addition, participants are supported to develop and propose their own ideas for projects of the social enterprise based on their expertise and local knowledge of community needs. Through its business activities, the enterprise is expected to generate revenues of around EUR 383,000 over the project duration.
A specific effort is made to create productive and meaningful employment that is adequate to the participants’ previous jobs in terms of skills and income. The jobs created are tailored to the needs of the recipients. Persons with limited work availability receive targeted job offers. A person only available to work part-time receives a corresponding part-time offer. A person who can carry out only a limited number of tasks (e.g. for health reasons) similarly receives a corresponding offer. Social workers and instructors continue to provide support to employees of the social enterprise as needed. Participants have access to occupational physicians. Those participants that feel ready to work for third-party employers receive targeted support and additional counseling to apply and find employment outside of the program.
Voluntary participation
Work conditionality is eased. Currently, under law Arbeitslosenversicherungsgesetz (AlVG \S 9), people in unemployment are assigned to labour market programs by the AMS. They have the obligation to participate and they have to accept an employment offer that conforms to their skillset. By contrast, within the job guarantee program only participation at the information event and the preparatory training phase is subject to this conditionality, while take-up of employment offered as part of the job guarantee is voluntary (i.e.. without sanctions in case a job offer is declined).