- Austrian Government commits €50 million for Guaranteed Job Scheme in Budget;
- Welfare initiative was pioneered by INET Oxford's Lukas Lehner and Max Kasy, who delivered the Marienthal pilot in 2020;
- The European Commission is also funding further trials of this innovative welfare measure.
The Austrian Government has this week announced funding in its Federal Budget to roll out a welfare programme pioneered by researchers at INET Oxford.
In his annual budget speech in parliament, the new Austrian Minister of Finance, Markus Marterbauer, announced €50 million for the further rollout of the job guarantee, citing the INET Oxford pilot project pioneered by Lukas Lehner and Max Kasy as the foundational evidence for this decision.
The Minister also emphasised that this funding should be viewed as a first step toward establishing a nationwide job guarantee for long-term unemployed workers.
Marienthal trial wins support
Run between 2020 and 2024 in the town of Marienthal in Austria, the guaranteed job scheme was designed to bring long-term unemployed individuals back into the workforce.
The pilot, run by the job centre in collaboration with INET Oxford, was unique in offering a universal and unconditional guarantee of a well-paid job to every resident who was unemployed for more than 12 months. Recipients were offered either employment in a social enterprise, or subsidized private employment, both at market wages. Participation in the scheme was voluntary and it was designed to provide meaningful employment, along with innovative ways to motivate participation.
Results found that participants’ incomes rose and they gained greater financial security. Those taking part were happier, more satisfied, and felt more in control of their lives. They had more meaningful interactions with others, felt more valued, and felt they had more people around them who they could rely on.
Further details can be found here
Another positive step forward
Pioneers of the job guarantee programme Lukas Lehner and Max Kasy welcomed the news and said that this was another positive step for the welfare initiative.
"The Marienthal Job Guarantee pilot has shown that people want meaningful work at fair pay, and helping them to access it benefits us all. A stepwise roll-out at scale is the logical next step.” Lukas Lehner, Assistant Professor at the University of Edinburgh, Associate at INET Oxford, and study author said.
“The idea of a jobs guarantee programme is an important addition to the toolkit of social safety provision, especially when participation is voluntary and the jobs offered are meaningful.” Maximilian Kasy, Professor at the University of Oxford, Professorial Research Fellow at INET Oxford, and study author commented.
'A good sign for the labour market'
Sven Hergovich, founder of the job guarantee, welcomed the announcement.
"I welcome the comeback of public employment programmes by the federal government based on the model of the globally respected Marienthal Job Guarantee, as announced by Finance Minister Markus Marterbauer in his budget speech today. I would like to thank Finance Minister Marterbauer very much for this.
"This model has won awards worldwide and shows clear successes for employment, but also for the health and long-term prospects of the long-term unemployed and their families. The independent economic evaluation of the University of Oxford has impressively confirmed the success of the Marienthal Job Guarantee. The fact that federal politics is relying on such successful initiatives is a good sign for the labour market," says Hergovich, SPÖ Lower Austria chairman, member of the Lower Austria state government, and initiator of the Marienthal job guarantee.
"In economic crises, it is also economically right to invest in direct employment creation. The job guarantee expansion demonstrates that even in times of high public deficits, it is economically viable to invest in direct employment creation to counter unemployment and economic crises. The successful Marienthal job guarantee pilot has proven that better results can be achieved in the long term at lower economic and social costs with innovative labour market policy.
"The Marienthal Job Guarantee is a prime example of how social democratic labour market policy creates jobs and thus concrete prospects. The long-term unemployed are given jobs with a collectively agreed wage – and thus the chance to be part of the world of work again. This is not only a benefit for each individual affected person and their families, but for society as a whole. Because work provides support, meaning, structure and dignity. It is better to employ people than to manage them in unemployment," emphasises Hergovich, who developed and initiated the project as head of the AMS in Lower Austria with scientific support, and concludes: "Long-term unemployment is poison for our society. We have to end it together."
