The reorganization of the domestic labor market policy in the autumn could bring an “off” or a massive restriction to the possibility of additional income in order to bring more registered unemployed people back into jobs, especially the long-term unemployed. Employment Service Board Member Johannes Kopf spoke out in favor of this in an OÖN interview. Additional earnings of EUR 475 per month are currently allowed.
Yes, he was in favor of the abolition of additional earnings – at least for a massive restriction, explained Kopf in response to a relevant question. He has thought a lot about the issue of earning money because there are also arguments for it. “People have at least one foot in the world of work and do not unlearn the virtues of work. Is this foot in the door more useful than it is harmful because the difference in income is too small? In the meantime I have come to the point: It belongs – if not forbidden – so massively restricted. We have had good results with the survey service. “
Wirtschaftsbund supports demand
The ÖVP-Wirtschaftsbund (WB) supported the proposal of Kopf in a broadcast on Thursday. The record number of vacancies with high unemployment clearly confirms the structural problems on the labor market. “It cannot be that it is more lucrative for the unemployed to supplement the state support services with part-time jobs than to actively participate in working life,” said WB General Secretary Kurt Egger. The combination of unemployment benefits, other benefits and additional income makes it often more attractive to remain unemployed. Positive incentives such as degressive unemployment benefits, supra-regional mobility subsidies or combined wage models should make the labor market more dynamic.
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Criticism from many sides
From the FPÖ, the Greens, the SPÖ and the ÖGB, on the other hand, there was a rejection of Kopf’s request in broadcasts on Thursday. According to the SPÖ, the end of part-time jobs for the unemployed would be “anti-performance, heartless and unsocial”. The already low additional income to unemployment benefits is the only way for many elderly people and their families to make ends meet financially, according to Federal Managing Director Christian Deutsch. What is needed instead is “a job offensive and fair wages from which one can live well”.
SPÖ demands minimum wage
The SPÖ is calling for a minimum wage of 1,700 euros and an increase in unemployment benefits to 70 percent of the last salary. The latter also demanded the ÖGB in a broadcast and rejected the suggestion from Kopf: “We still have around 350,000 unemployed people who have to get by with an unemployment benefit that is below the poverty line at an average of 1,000 euros,” said Executive Secretary Ingrid Reischl. An overall discussion is needed as to how people can be brought into employment – according to the ÖGB, this includes the qualifications of job seekers and the assessment of job offers for their reasonableness.
Greens warn of poverty traps
The Greens see an urgent special need for reform with regard to “social security for the unemployed”. One stands ready for a broad discussion about a reform of the labor market policy. Abolishing the opportunity to earn additional income in the event of unemployment is a poverty trap “as long as unemployment benefits and emergency assistance are not raised,” said Markus Koza, Labor and Social Affairs spokesman for the Greens.
FPÖ sees the abolition of the welfare state
The liberal social spokeswoman Dagmar Belakowitsch saw in the demand from the AMS boss a slow but continuous abolition of the welfare state. Instead, she asked Kopf to take care of his AMS himself: “He could use his energies, for example, to track down all those who, in addition to their unemployment wages, are doing illegal work.” If someone really makes an effort and in these difficult times finds a little extra income from a marginal job, that can help out of the worst and is to be welcomed. It also helps to maintain social contacts and you still have a leg in the world of work.
Neos for the degressive model
When the additional earnings were canceled, the Neos demanded that the unemployment benefit be increased at the beginning – for example to 65 percent, and then gradually reduced. “This degressive model would provide financial security for people who have only been unemployed for a short time and create incentives to quickly switch back to employment. In order for this to be successful for those receiving emergency aid, however, additional income should no longer be possible there,” said social spokesman Gerald Loacker. The big problem is that undeclared work is preventing people from returning to full-time jobs.
