Active labour market policy during the Covid-19 pandemic: Latent effects on Austrian jobseekers

Abstract

The Covid-19 pandemic induced an unprecedented shock to the Austrian labour market. Austria responded by implementing active labour market policies (ALMP) to facilitate the reintegration of individuals abruptly rendered unemployed. This article assesses the effects of a job search assistance and training programme on jobseekers within this context by utilizing a panel survey among participants. Drawing on Marie Jahoda‘s theory of latentdeprivation, we examine how participation in the programme alleviates the adverse effects of unemployment. The results reveal significant improvements in professional competencies after participating in the programme. Participants reported marked reductions in psychological stress and overstrain. Finding work during the programme resulted in enhanced material living conditions and improved health outcomes.