Austria Cuts Threaten Programs for Long Term Unemployed

Austria

In Austria’s Burgenland region, employment programs that help long-term unemployed people return to work are now under serious financial pressure. These initiatives, supported by the Public Employment Service (AMS), are often seen as a last chance for many to rebuild their working lives. But new budget cuts may put that chance at risk.

Burgenland currently runs 13 AMS-funded employment projects. These programs provide temporary jobs for people who have been out of work for a long time, helping them regain skills, confidence, and daily structure. However, reports indicate that seven of these projects will face funding cuts in the second half of the year.

Participants usually work between four and twelve months as transitional employees. Along with earning a salary, they receive guidance in job applications and benefit from a stable routine and social environment, key steps toward re-entering the labor market.

For some, the impact is deeply personal. Karin Maralli, who works at the social enterprise “s’Kekserl” in Oberwart, said she had nearly lost hope of finding a job. “I thought I would never work again,” she shared. Now, she has secured a permanent position in the hospitality sector and will start her new job on May 25.

Last year, 624 people joined such programs, and 82 moved on to permanent employment. AMS regional director Helene Sengstbratl stressed that these projects provide not only income, but also hope and stability.

Still, experts argue that longer program durations could improve outcomes. Studies suggest that employment lasting more than a year increases the chances of finding stable work.

Yet funding limits may make such improvements impossible. AMS is already facing budget cuts for 2026, raising concerns about fewer program places and reduced support. Sengstbratl warned that increased funding is unlikely in the near future, leaving many uncertain about what comes next.