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Bank of Good Practices in Social Inclusion through WBL
Promotion of socio-economic enterprises (Sozialökonomische Betriebe, SÖB) and non-profit employment projects (Gemeinnützige Beschäfitgung-sprojekte, GBP)
Overview
SÖB: A socio-economic enterprise (SÖB) is a social integration enterprise funded by the Public Employment Service Austria (AMS), among others, which provides temporary jobs for people who are at a distance from the labor market. These so-called transit jobs are intended for people who have been unemployed for a long time for various reasons and are designed to help them find unsubsidized employment again. They manufacture products or offer services at market prices. One feature is that, in addition to support from the AMS, part of the company's total income is generated through sales revenue.
GBP: In contrast to a SÖB, a non-profit employment project (GBP) has little or no market income and is part of the public organizations in which and for which it operates.
GBP: In contrast to a SÖB, a non-profit employment project (GBP) has little or no market income and is part of the public organizations in which and for which it operates.
Objectives
The main goal is to connect the long-term unemployed to the labor market. Through training places and a preparatory phase, people can gain work experience in a safe environment and improve their skills and abilities. If they develop well, they may be taken on as transit workers. Employees in transit employment receive a wage in accordance with the collective agreement. The transit employment rela-tionship is limited to 9 months; people who are about to retire can work in a transit employment relationship for up to 3.5 years (until retirement).
Implementation
The first SÖBs were founded on the basis of civil society initiatives, often with the support of the public sector (e.g. municipalities, federal states, EU funding) and were then systematically funded by the AMS from the 1990s onwards. Since their introduction in 1980, new SÖBs have been founded continuously (in cooperation with the AMS) and have expanded over time. Most of them started out as small SÖBs. In 2016, there were 28,000 people employed in a SÖB or GBP. The number has re-mained roughly the same to date. An intermediate step makes it easier for the long-term unemployed to reintegrate into the world of work and this initiative offers people who are about to retire and have no chance of finding a job an opportunity to work.
Innovative features
Provides financial incentives to encourage participation, Offers flexible learning options for different needs, Offer of jobs to bridge the gap
Success stories
F. Khalaf: Ten years as foreman in a cleaning company, then stress with the project manager, unemployed for 8 months.
Two months training and then employed in a SÖB (Spar) at the cash desk for five months. Now a regular employee in another Spar-store.
Two months training and then employed in a SÖB (Spar) at the cash desk for five months. Now a regular employee in another Spar-store.
Measured outcomes
2014: 2-5 years after the start of program:
People from SÖBs had
• 11% (46 days) more time in the regular labor market than the comparison group
• 8% (50 days) more time in unemployment (including training and sick pay/with financial support)
• 30% (54 days) less time in an insecure jobless position (unemployed without financial support)
Conclusion:
• Significant increase in labor force participation
• Particularly effective for 50-59 year olds (29%/74 days more time in the regular labor market)
• Women benefit more than men (12.8%/63 days compared to 8.2%/30 days)
People from SÖBs had
• 11% (46 days) more time in the regular labor market than the comparison group
• 8% (50 days) more time in unemployment (including training and sick pay/with financial support)
• 30% (54 days) less time in an insecure jobless position (unemployed without financial support)
Conclusion:
• Significant increase in labor force participation
• Particularly effective for 50-59 year olds (29%/74 days more time in the regular labor market)
• Women benefit more than men (12.8%/63 days compared to 8.2%/30 days)
Challenges and lessons learned
2014: Funding from now on only possible if quality standards are met.
2018: Extension of the possible working period for prospective retirees.
2024: Funding problems: Change in funding: now 25% of the circular economy funding goes to SÖBs. (Because SÖBs have a significant share in this area)
2018: Extension of the possible working period for prospective retirees.
2024: Funding problems: Change in funding: now 25% of the circular economy funding goes to SÖBs. (Because SÖBs have a significant share in this area)
- CountryAustria
- SectorAgriculture and forestry Archeology Construction Energy, water supply and waste management Hospitality and tourism Management Manufacturing Retail, trade and e-commerce Social inclusion Transportation, storage and packaging Wood processing
- Target groupPeople at risk of poverty or social exclusion People with disabilities Women
Leading organisation
Public Employment Service Austria (Arbeitsmarktservice, AMS)
Date
1980, ongoing
Key stakeholders
• NGOs and social organizations
• Public Employment Service (AMS)
• Public Employment Service (AMS)
Number of beneficiaries
1999: 1.100 transit workplaces
2015-2023: 20.000 people employed in SÖBs and 5.000 in GBPs
2015-2023: 20.000 people employed in SÖBs and 5.000 in GBPs
