AK Upper Austria calls for an increase in the AMS funding budget

The Upper Austrian Chamber of Labor is urgently calling for an increase in the AMS funding budget for 2025. The AK sees the AMS’s ability to act threatened by the planned cuts. And even more: “Cutting the labor market budget ignores the massive increase in unemployment. This is irresponsible and cynical towards the job-seekers affected“, says AK President Andreas Stangl.

Compared to other federal states, Upper Austria is currently the most affected by rising unemployment. Nevertheless, the federal government is cutting the AMS funding budget. As a result, 19 million euros less will be available for active labor market policy in Upper Austria in 2025. Compared to 2024, that is a decrease of 11 percent – without taking inflation into account. Further drastic cuts are planned for 2026.

If the AMS funding budget decreases, the AMS’s offerings and the quality of the work of the consultants at the AMS and the trainers in the training measures and transit work companies are acutely threatened. In order to overcome the challenges posed by digitalization, ecological transformation, demographics and integration, more resources are needed for the AMS. The current cuts are leading in particular to an increase in youth unemployment and long-term unemployment, which will have negative long-term consequences. “In my opinion, the AMS budget cuts are forgot about the future. We therefore do not support the budget decision“, says AK President Andreas Stangl.

Demands of the AK Upper Austria for people looking for work
In view of the cuts in the AMS budget, the AK Upper Austria abstained from voting on the draft budget and instead demanded:

• Ensure the AMS budget: Instead of cutting, the AMS budget must be increased through an immediate program for labor market policy measures such as training, advice or employment projects. The current federal government still bears responsibility for labor market policy!

• Securing financing: The federal government must secure the long-term financing of labor market policy and set aside reserves for unforeseeable economic emergencies.

• Stop the reduction in personnel at the AMS: Instead, the workforce at the employment service must be increased. This means that serious placement and qualification of job seekers can also be guaranteed in the future.

• Stimulate the economy: Investments are needed in the business location in order to combat unemployment. The long-term strategy must be to make the technological change in digitalization and the ecological transformation socially just.