Universal Job Guarantee Boosts Wellbeing & Eliminates Long-Term Unemployment

Abstract:

The job guarantee pilot eliminated long-term unemployment – an important result, given the programme’s entirely voluntary nature. It also drove a large reduction in the town’s overall unemployment without replacing existing jobs.  The programme had strong positive impacts on participants’ economic and non economic wellbeing.  Participants’ incomes rose and they gained greater financial security. They had more meaningful interactions with others, felt more valued, had more people around them who they could rely on and experienced their time as more structured and useful.  The success of the trial has captured the interest of governments looking for new economic ideas to tackle long-term unemployment. In May, the new Austrian Finance Minister announced €50m for further rollout of the job guarantee.  The European Commission has also provided funding for additional trials of this welfare policy.