Struggling Finances Among Unemployed Austrians: Recent Research Highlights Worsening Economic Condition
Spotlight on Unemployment Struggles
Uncovering the harsh realities of staying afloat during unemployment, a recent study by the Chamber of Labor (AK) Vienna sheds light on the challenges faced by the jobless. The survey, featuring 456 AK members, compares their financial situations to a 2014 study.
Key Findings:
Over half (54%), struggling to make ends meet during unemployment, reflect the stark impact of unemployment on those who already stumbled financially when they were employed, particularly those in vulnerable careers like part-time work or gig economy jobs. The typical income reduction stood at a staggering 44 percent.
A stark decrease, almost halving in a decade, was seen in the number of people who didn't have to cut back on expenses, now standing at just 6 percent. Meanwhile, close to a quarter (27 percent) dipped into their savings, another 45 percent sought refuge in external aid, primarily partner income. At least 28 percent could not access any additional financial resources, neither their own nor external.
Impact on Specific Demographics:
Single parents, compulsory school graduates, and migrants emerged as the most impacted groups. These statistics call for further attention and policy considerations to aid these populations navigating unemployment.
Saving Smart:
Faced with diminished financial circumstances, 9 out of 10 unemployed participants admitted to trimming their expenses. Budget cuts extended to areas like clothing, holidays, entertainment, and groceries. 68 percent reported having to tighten their supermarket belts, compared to 51 percent ten years ago. Prospect study author, Assma Hajji, summed up the situation: "Payment delays have become frequent, and perspectives have worsened over ten years."
External Influences:
Inflation has compounded challenges for the unemployed, says Claudia Sorger of L&R Social Research, who conducted interviews with 40 Viennese job-seekers. A significant number (16 out of 40) mentioned they barely made ends meet and had to severely limit their expenditures. "Every additional expense becomes a crisis," explains Sorger, signifying the precarious situations many find themselves in.
Side Income Impact:
The proposed abolition of the opportunity for the unemployed to take on low-paid jobs could worsen their financial predicament, believes Sorger. She contends that "most unemployed people use these low-paying jobs to cover their expenses."
Apart from the financial strain, 6 out of 10 job-seekers stated that unemployment negatively affects other areas of their lives, notably their career prospects (45 percent), health (44 percent), and mental wellbeing. The result: existential fears, stress, and low self-esteem. "After a while, unemployment feels like a heavy burden," remarks Sorger.
- The Chamber of Labor Vienna conducted a study on unemployment struggles, revealing that over half of the 456 surveyed members experienced difficulty in making ends meet during unemployment.
- The study found that single parents, compulsory school graduates, and migrants were the most impacted demographics, suggesting a need for further policy considerations to aid these groups navigating unemployment.
- Nine out of ten unemployed participants in the study admitted to trimming their expenses, with reductions seen in areas like clothing, holidays, entertainment, and groceries.
- Claudia Sorger of L&R Social Research, who conducted interviews with 40 Viennese job-seekers, pointed out that inflation has compounded challenges for the unemployed, with a significant number of job-seekers stating they barely make ends meet and have to severely limit their expenditures.
