A major welfare reform in Vienna is beginning to show clear results, as many people with temporary protection status have moved into jobs after losing key financial support, according to derStandard.
At the start of the year, Vienna’s city government ended minimum income benefits for individuals with “subsidiary protection.” These are people allowed to stay in Austria but not officially recognized as refugees. Instead of receiving at least 1,230 euros per month, they now depend on basic support of 437.50 euros, or live in state housing with food and shelter and just 62.50 euros in cash.
The decision quickly sparked debate. Aid groups warned of rising poverty and homelessness, while opposition parties argued that generous welfare had reduced motivation to work. City official Peter Hacker defended the cuts, saying Vienna could no longer afford to carry costs that should be handled at the national level. He also suggested most affected individuals could find jobs.
New figures from the Public Employment Service (AMS) suggest the policy has had a strong impact. In May last year, 8,590 protected individuals were unemployed or in training. This May, the number dropped to 5,486, a fall of more than 36 percent. Overall unemployment, however, remained stable, and among recognized refugees, the decline was much smaller.
At the same time, 2,192 people from this group found jobs by May this year, compared to 1,609 last year. Fewer people now depend on public support.
Still, AMS head Johannes Kopf urges caution. Not everyone who left unemployment found work; some may have left Austria or dropped out of the labor force. He estimates that about 1,000 to 1,500 people took jobs directly because of the cuts.
Kopf says financial pressure can push people into work but warns of risks. Quick jobs may replace education or training, limiting future opportunities. Welfare cuts can also increase poverty, especially for children.
The situation reflects a difficult balance: stronger pressure to work often means weaker protection for those in need.
