Fenninger: “Some demands shock me”
Vienna (OTS) – The current level of unemployment benefits already promotes long-term poverty instead of protecting people looking for work. “The plans now being discussed are going in completely the wrong direction. Who should be able to live on a net replacement rate of 50% or even lower? This is a path to poverty, especially for low-income earners
“, says Erich Fenninger, director of Volkshilfe Austria. The EU-SILC figures 2022 show that 36% of people who have been looking for work for more than half a year are at risk of poverty. And 42% are at risk of poverty and are affected by unemployment all year round.
Increase in net replacement rate required
The work of Volkshilfe in numerous projects enables deep insights into the realities of life that are characterized by (long-term) unemployment. The ongoing inflation crisis makes the situation even more precarious for many. “That’s why Volkshilfe has been calling for an increase in the net replacement rate to 70% for a long time,” says Fenninger, “and is against degressive models. Unemployment benefit is an insurance benefit and must not lead to impoverishment. The ÖVP’s idea of not paying out any money for the first 7-10 days of unemployment shows little knowledge of the reality of life for people affected by poverty and shocks me
.“
The average unemployment benefit in Austria is well below the at-risk-of-poverty threshold. In 2022, the average unemployment benefit (median) in Austria was €973, which is €419 below the at-risk-of-poverty threshold. It is a neoliberal fairy tale that more financial pressure on those who usually already have to live precariously would lead to them taking up work. Unemployment has a variety of reasons, and the lack of existence only leads to increased psychological problems and makes the situation even worse.
No removal of the additional earnings limit
Volkshilfe is also very critical of the proposed abolition of part-time employment while simultaneously receiving unemployment benefits. The experience of many social enterprises, says Fenninger, “is that it is often the only opportunity for vulnerable groups to participate in the labor market and improve their income.”
Fenninger concludes, “that these classist proposals are based on a very questionable view of humanity and a deep-seated aversion to people affected by poverty and exclusion“.
Questions & Contact:
Volkshilfe Austria
Erwin Berger, MAS
Head of Communications Volkshilfe Austria
+43 676 83 402 215
erwin.berger@volkshilfe.at