Austria’s stricter rules on extra earnings for unemployed people are beginning to reshape the job market, with early figures showing a rise in full-time employment since the start of 2026.
Since January 1, the government has largely removed the option for people receiving unemployment benefits or emergency assistance to earn additional income up to the marginal earnings limit, previously set at €551.10 per month, according to Heute. The change aimed to reduce reliance on part-time or marginal work while encouraging a faster return to stable, fully insured jobs.
Initial data suggests the policy is having an impact. By the end of May, only about 9,400 unemployed individuals were in marginal employment around 18,000 fewer than a year earlier. At the same time, roughly 10,000 people have moved into full-time positions.
Notably, nearly 4,000 of those workers were hired full-time by the same employers they had previously worked for on a marginal basis. The hospitality sector, long affected by staff shortages, appears to have seen many such transitions from part-time to regular employment.
Economy Minister Wolfgang Hattmannsdorfer said the figures confirm the government’s approach. He argued that people who are able to work should not remain in a system that combines benefits with limited side income, but should instead move more quickly into stable employment with full social insurance.
The reform, he said, is not only about reducing unemployment but also about strengthening Austria’s economy. By pushing for more full-time jobs, the government hopes to address labor shortages while offering workers higher incomes and better long-term prospects.
For policymakers, the message is clear: work should pay more than unemployment and the system should reflect that principle.
