Young people have been badly hit by the economic crisis, particularly when making the transition from school to work. In 2011, 12.9% of EU citizens aged 15-24 were not in education, employment or training (NEET). According to Eurofound, this has severe economic costs for the EU (over €150 billion in 2011), as well as causing long-term harm to NEETs by making them more likely to face social and political isolation. Given the gravity of this situation, the EU is committed to bringing down the youth unemployment rate and speeding up transitions between school and work.

The EU’s desire to tackle this issue is reflected in its policy framework. In particular, the Youth on the Move flagship initiative calls for an early school leaving rate of less than 10%.

In December 2012, Europe released a Youth Employment Package of various measures to advance towards these objectives, such as an alliance for apprenticeships and planned reforms to the EURES Network to promote youth mobility. Furthermore, in the Annual Growth Survey for 2013, the Commission emphasised the importance of ‘youth guarantee’ schemes as an active labour market policy to be pursued by Member States.

Austria is a highly industrialised country with a strong and expanding service sector (particularly in tourism and the public service). In comparison with the rest of Europe, it had low unemployment rates in 2012-2013, both for the entire adult population and those aged under 25. In August 2013, 8.6% of Austrians aged 24 or younger were out of work, compared to the EU average of 23.4%. Austria also had a low rate of young NEETs (6.5% in 2012, against the EU-27 average of 13.2%). The highly established vocational education and training (VET) system was an important reason for its success in this area.

Austria invests significant resources in young people and their integration into the labour market. In 2012, they received the most public funding of any group. There was a comprehensive network of support for young people, developed by two key government programmes in particular: the Training Guarantee, in place since 2008; and the Future for Youth Action programme, effective from 2009. The strength of the vocational system in Austria is reflected in the fact that 80% of each cohort of 15-year-olds entered into a VET scheme in 2011.

In Austria, the last year of compulsory education (at age 14) signals an important juncture in a young adult’s life. At this stage, he/she must choose whether to continue in an academic school or enter into vocational training. For the latter, students can opt for either a VET school /college or for the dual training system.

Despite positive labour market features, Austria had some issues in meeting the demand for apprenticeships after 2002. This threatened transition of young people into the labour market; as is widely recognised, inexperience and a lack of skills contribute to the unwillingness of employers to take on young people. In this context, the Austrian government established a ‘Training Guarantee’ in 2008, promising a suitable job, apprenticeship or training place to all young people within three months of them registering as unemployed or in search of an apprenticeship. ‘Supra-company apprenticeships’ were part of this.

Between 2002 and 2011, apprenticeship/traineeship seekers in Austria consistently outstripped the number of places offered by companies. Between 2008 and 2010, the number of training companies declined by 5.1% while the number seeking placements reduced by 1.3%.  The provision of publicly subsidised traineeships was a reflection of the Austrian government’s commitment to assisting those unable to find a suitable apprenticeship placement, how are often young people with lower level qualifications and facing further disadvantage.

• ‘Supra-company traineeships’ were part of the government’s wider social safety net for young people, developed to ensure that school leavers up to the age of 18 were able to enter into an apprenticeship if they wished to.
• The supra-company training programme aimed to enable the transition of young people into a company-based traineeship as quickly as possible.
• The programme was complemented by the Future for Action Programme for those aged 19-24, which are offered different of training und funding programmes to strengthen their position on the labour market.
• It was also backed by the Apprentice Coaching programme, which supported apprentices to complete their courses.
• All formed part of the overall Austrian Training and Education Strategy, which placed greater emphasis on keeping young people in formal training and education systems.

• ‘Supra-company training’ was training subsidised by the Austrian government for school leavers up to the age of 18 within a Überbetriebliche Ausbildung (ÜBA, or a ‘supra-company training centre’). It was aimed at those who failed to secure an apprenticeship placement in a company. Wherever possible, emphasis was placed on moving young people from ÜBA into a company based traineeship.
• This type of training was available in around 180 recognised occupations.
• Training occurred in one of two ways:
  • ÜBA 1: Supra-company apprenticeship training was carried out by an educational institution. This involved theoretical training in a vocational school; (optional) practical training in educational bodies or company; and a training contract during the entire apprenticeship.
  • ÜBA 2:  training occurred on the basis of cooperation between an educational institution and a private company. This involved theoretical training in a vocational school, practical training in a company only; and a training contract between the educational body and the apprentice (which normally lasted around year and was shorter than the apprenticeship).
• The goal of both forms of training was to transfer the individual to an apprenticeship in a company. Although the government offered these places from 1998, they were significantly expanded in 2008, partly to match the new ‘Training Guarantee’.

• The number of young people entering apprenticeships in supra-company training rose between 2002 and 2010, but subsequently showed some signs of decline. Albeit not as high as labour market integration rates following in-company training, these rates were nonetheless high at around 60%. This form of training required more public funding than other youth integration measures.
• Around 10,000 young people benefited from a supra-training company training in 2012, with around €175 million dedicated to the provision of places by the public employment services. After 2010, there was a slight decline in the numbers doing this form of training (11,438 in 2010 and 10,463 in 2011).
• More generally, in 2012, public programmes assisted around 96,000 young adults into work and an additional 46,000 into targeted training schemes.