More Activation — More Chances for the Unemployed? Changes in Austria's Active Labour Market Policy after Accessing the European Union

Abstract

One of the main political objectives throughout the European Union (EU) is to raise employment rates. Recent demographic developments, the resulting financial problems of the welfare state, increasing competition with other economic areas, as well as the attempt to create equal opportunities for men and women, certainly call for a higher level of participation in the labour market. But this does not automatically lead to more gender equality or social cohesion. On the contrary, in most EU member countries, an increase of employment frequently goes hand in hand with an increase in atypical employment, with different kinds of jobs that in many cases do not meet the requirements of standard employment.¹

An important instrument in this context is active labour market policy, which, however, contributes to an increasing polarisation of labour markets. This article, therefore, focuses on the development and effects of active labour market policy in Austria as well as the changes that occurred after Austria joined the EU.² Taking the situation in Austria as an example, it will become obvious that not all groups have benefited to the same extent from the expansion of active labour market policy, which was initiated in the 1990s by the EU. Instead, we can observe various creaming effects, meaning that existing inequalities are maintained or even enforced in spite of higher level of activation.