Description
Country
Focus area
The instrument focuses on skills mismathced unemployed workers to promote their labour market integration. The aim is to help the unemployed to find a job and the companies to reduce their skill shortages.
Link
Reference/weblink
Implementation level
At what level is the initiative implemented?
Regional
Legal base
Legal base (E.g. Law, regulation, implementing provision, other)
Possible through a reinterpretation of the unemployment insurance law in 1998.
Starting period
TIMESPAN: In what year did the initiative commence?
This instrument was preceded by the so-called Stahlstiftung in the 1980s (retraining measures during industrial restructuring and employment decline in some sectors). It was first developed as a best practice measure at EU level and became a Austrian PES measure later.
Perspective
PERSPECTIVE: is the initiative based on evidence derived from skill forecasts or foresight activities?
No
Policy area
To which POLICY AREAS(s) does the initiative apply?
Funding
How it is funded?
Funded by regional government
Skill mismatch
Skill mismatch target
What type(s) of skills MISMATCH does the initiative aim to addresses?
Skill shortages (employers cannot fill their vacancies due to a lack of skills in the labour market)
Skill gaps (worker's skills are below the level of proficiency required by their employers and jobs)
Other
Explicitly designed for mismatched unemployed.
Skills matching focus
How does the initiative address skills mismatches?
The aim of the instrument is to help mismatched unemployed workers to promote their labour market integration. The aim is to help the unemployed to find a job
Skills delivered
What types of skill does the initiative deliver?
General employability skills (team working, communication, etc.)
Methods
Methods
What methods of undertaking skills assessments and / or skills anticipation does the policy instrument utilise?
Other
The PES has access to LMSI tools and platforms to identify suitable unemployed workers that could be retrained.
Use of skills intelligence
How is labour market information / skills intelligence used within the initiative?
The PES has access to LMSI tools and platforms to identify suitable unemployed workers that could be retrained. The development of training plans for each future employee is designed according to the operational requirements. With the help of the PES, the company then chooses suitable unemployed workers that are retrained to fill the vacancy. The training can take up to three years. This might therefore help to reduce unemployment and skill shortages at the same time.
Stakeholders
Main responsible body
Main body or organisation with overall responsibility for the initiative.
Other
AMS Oberösterreich (regional PES).
Other involved organisations
Which other organisations have a role in the initiative?
National ministry
Provides the legal framework, funding through unemployment benefits via the Public Employment Service (AMS).
Regional ministry
They are funding training costs.
Social partner: employer organisation
Social partner involvement at company level (agreement).
Regional PES
AMS Oberösterreich is financing the initiative (and paying the unemployment benefits)
Training Providers
They provide training
Other
Employee organisations. Social partner involvement at company level (agreement).
Beneficiaries
Who are the intended beneficiaries?
Other
Upskill and mismatch of unemployed
Sustainability
Success factors
SUCCESS FACTORS in the implementation
Companies a chance to access the skilled labour that they seek through training. During the training period, the company does not have any wage and ancillary wage costs. Job seekers are given the opportunity to gain qualifications and find a job afterwards. Promotions of greater occupational, remunerative and regional mobility. Low amount of required public funding.
Monitoring and evaluation
MONITORING and EVALUATION: Is progress measured regularly? What are the indicators used to measure progress of the policy instrument? Have any evaluations been conducted?
Success could be measured in successful labour market integrations after training. These are often between 60 or 70%. However, at the moment there is a lack of comprehensive and regular evaluation of the instrument. There are some regional evaluations (e.g. http://www.forschungsnetzwerk.at/downloadpub/AMSinfo130_2009.pdf) or surveys among participants (http://www.forschungsnetzwerk.at/downloadpub/AMSinfo149.pdf) available
Updates
UPDATES: whether there have been any major updates of the initiative since it has been implemented?
Yes
Several publications per year between 2010 and 2014
Effectiveness
EVIDENCE ON EFFECTIVENESS: How effective is the policy instrument?
Between 2011 and 2013 the number of participants in implacement foundations has decreased slightly, but went up again in 2014 to 6,940 persons (Sozialministerium 2015). In 2016, 6,815 people received funding (Sozialministerium 2018). Following the latest report (Sozialministerium 2019), the number of participants has risen up to 7,799 in 2017 before lowering again to 6,400 in 2018.
Sustainability
SUSTAINABILITY: How sustainable is the policy instrument? Do you expect the instrument to continue over the next few years and why?
Yes, as further training will remain important to prevent skills mismatch.
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