In our society, gainful employment is the key to prosperity, social security and social participation. This is why labor market agencies such as the Austrian Public Employment Service (AMS) play a crucial role in enabling as many people as possible to participate in society.

According to a new study by WU researchers, employment agencies could also play an important role in the ecological transformation: "In order to become carbon neutral as a society and use natural resources sustainably, economic, social and ecological issues must be considered together," says Thomas Neier from the Institute for Ecological Economics at WU. "Employment agencies could provide important impetus at this intersection."

In a new policy paper, Thomas Neier and his team of researchers have analyzed what measures employment agencies can take to promote socio-ecological transformation. They used the Austrian Public Employment Service (AMS) as a prime example: "Compared to other employment agencies, the AMS is already pursuing an approach that focuses more strongly on making a sustainable contribution to society," explains Thomas Neier, "so it would be predestined to take on a pioneering role here."

Package with 15 proposals

The researchers have developed a package of 15 measures for socio-ecological labor market policy. These are divided into six different fields of action:

• Information and advice: As a first step, the AMS could establish an official label for socio-ecological jobs. Comparable labels for "green" jobs already exist on private job platforms, but the criteria for "green" employment are often not transparent. The researchers also propose a "socio-ecological job migration card" for employees who want to (or have to) leave ecologically unsustainable jobs and industries.

• Socio-ecological retraining and qualification programs:* Through so-called work foundations, the AMS is already successfully reorienting and upskilling people whose previous jobs have fallen victim to technological or social changes. "These qualification programs are one of the greatest strengths of the AMS," says co-author Halliki Kreinin. "They could be expanded to include a socio-ecological sectoral agenda, for example with scholarships for skilled workers in the environmental, health and care sectors." In addition, the authors propose a "Men into Care" program - similar to "Women in Technology" programs - to make it easier for men to enter the care profession.

• Sustainable mobility:* Commuting by car is responsible for a significant proportion of work-related emissions. Here, too, the AMS could bring about positive change - for example through a subsidized, regional climate ticket for unemployed people. This would create an incentive to use public transport when looking for work or on the way to further education programs. Similar initiatives already exist in Spain, for example. Another proposal is to count employees' journeys to work made on foot or by bike as working hours. Employers could report this time to the AMS as "active commuting" up to a maximum of 45 minutes per day and would be reimbursed two thirds of the costs.

• Distribution of working time:* Austria already has the internationally recognized "solidarity bonus". The AMS compensates the salary reduction of people who reduce their working hours if the company hires an unemployed person in return. This model could also be extended and expanded to include socio-ecological criteria. In this case, for example, three people working in a socio-ecologically compatible sector could reduce their working hours to 75 percent in order to employ one unemployed person, also at a rate of 75 percent. "This measure would enable more people in low-income groups to reduce their working hours and could thus also contribute to a fairer distribution of paid and unpaid work in families," says co-author Halliki Kreinin. With this in mind, the researchers also propose an extension of parental part-time work.

• Securing a livelihood:* For people with low or no income, the City of Vienna offers a Mobilpass, which gives them discounts on public transport, leisure activities and educational opportunities. The researchers propose introducing a comparable measure for the unemployed throughout Austria - supplemented by socially and ecologically sensible benefits such as repair vouchers or free public transport tickets. This would improve the quality of life of the unemployed and at the same time promote ecologically responsible behavior. According to the researchers, another measure could be a socio-ecological job guarantee: Sustainable jobs could be created for the long-term unemployed in their community - very similar to the successfully tested [job guarantee program
  in Marienthal|https://www.wu.ac.at/forschung/forschungsportal/news/details-news/detail/mehr-als-nur-ein-job-pilotstudie-zu-arbeitsplatzgarantie-ist-ein-voller-erfolg-1], which was also accompanied by WU researchers.

• Ecological criteria for unemployment benefits:* Usually, jobseekers have to accept a job offer unless there are certain reasons not to. These reasons currently include health risks or an unreasonable commute to work. The researchers suggest that ecological reasons for rejecting a job should also be permitted. Similarly, employees should not be sanctioned if they voluntarily leave jobs that cause environmental damage. The criteria for the reasonableness of the journey to work should also be adjusted: Jobseekers should be able to turn down a job if it can only be reached by car, for example.

Austria in a pioneering role

The researchers developed these proposals based on an analysis of the Austrian AMS and emphasize that the proposed measures could also serve as a framework concept for other countries. "Thanks to the strong social partnership, the AMS is particularly well anchored institutionally in Austria and can therefore play a pioneering role," says Thomas Neier from WU. "This gives Austria the opportunity to try out new measures that are more difficult in other countries. The experience gained could in turn help other countries to redesign their labor markets according to socio-ecological criteria."

Further information

Neier, T., Kreinin, H., Gerold, S., Heyne, S., Laa, E., & Bohnenberger, K. (2024). Navigating labor-market transitions: an eco-social policy toolbox for public employment services. Sustainability: Science, Practice and Policy, 20(1).

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