A sharp drop in unemployment among refugees in Vienna is drawing attention, but aid organizations warn that the improvement hides a deeper social crisis marked by rising poverty and growing housing insecurity.
Since the start of the year, people with subsidiary protection status have no longer received full social welfare benefits. Instead, they are limited to basic support, which is much lower, about 437 euros per month for a single person, compared to the previous 1,230 euros. The policy change was intended to push more people into the workforce.
New figures from Austria’s Public Employment Service (AMS) suggest it has had a strong effect. In May 2025, around 8,590 people in this group were registered as unemployed or attending training programs. By May 2026, that number had fallen to 5,486, a decrease of 36 percent.
Vienna’s Social Affairs Councillor, Peter Hacker, views this as clear evidence that the reform is working. However, major aid groups, including Caritas, Volkshilfe, and Diakonie, urge caution in interpreting the data. They say many refugees are indeed finding jobs, but these positions are often low paid, unstable, and offer little chance for long term progress.
According to Daniel Zipfel of Caritas, some individuals have even abandoned education or training programs in order to earn money quickly. While this may ease short-term financial pressure, it weakens their chances of building a sustainable career.
At the same time, not everyone is able to enter the workforce. Older individuals, as well as those with illnesses or disabilities, often remain excluded from employment opportunities.
Aid organizations also report worsening housing conditions. With reduced income, many struggle to afford rent, leading to debt, overcrowded apartments, and increasing risk of homelessness. There are further concerns that the continued denial of family benefits under the current system could deepen child poverty.
Caritas and other groups are calling for stronger support measures, including access to training, housing assistance, and protections for vulnerable people, warning that without them, the social cost of the reforms may continue to grow.
