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1. Main challenges to social inclusion

2. Definitions and concept

Main challenges to social inclusion

Austria’s robust welfare state (Sozialstaat Österreich), provides comprehensive protection for all residents, including young people. It offers universal healthcare and family support, as well as access to education and training. It also promotes social inclusion through specialised initiatives, such as youth centres and programmes for at-risk youth. These measures help reduce inequality and social exclusion and have been shown to lower poverty rates and promote social inclusion, even during challenging times such as the pandemic. Additionally, the Austrian Youth Strategy aims to foster a more inclusive society for all young people, paying particular attention to those at risk of exclusion. Adopting a comprehensive, multidimensional approach that prioritises education, employment, participation, and quality of life, the Strategy aligns with European Youth Goals, including Youth Goal #3: Inclusive Society (see Chapter 1.3 National Youth Strategy).

However, recent years have seen an unprecedented number of challenges, including an economic recession, rising youth unemployment, persistent inflation, heightened global trade tensions, and the intensification of the effects of climate change. These challenges affect the most vulnerable members of society, namely children and young people. This increases their risk of poverty and social exclusion, limiting their access to opportunities for growth and development. The risk is further exacerbated when multiple factors, such as poverty, unemployment, disability, illness, migration, ethnic background, sexual or gender orientation, political views, religious beliefs, or challenging family circumstances, intersect.

These crises have fostered a growing sense of pessimism among younger generations, who increasingly doubt their prospects of owning a home, achieving financial security, and enjoying overall well-being compared to previous generations (Statistics Austria, 2025). In order to counteract these negative trends and preserve hope for the future, it is crucial that young people have access to quality education, stable housing and meaningful opportunities for social participation and personal development. Such measures are vital not only for safeguarding their futures, but also for building resilience against ongoing and future crises, and for reducing the risk of societal exclusion.

National surveys and data addressing youth inclusion

A variety of surveys in Austria collect data on social inclusion. While these surveys generally cover broad aspects of societal participation—such as poverty, living conditions, housing, labour market access, educational opportunities, and health— young people are often specifically highlighted. The findings provide valuable insights into the challenges and barriers to inclusion that young people face, supporting the development of targeted policies and interventions. 

• Austrian Youth Report

  The Austrian Youth Report (Jugendbericht Österreich) regularly examines the social inclusion of young people, analysing key areas such as demographics, education and employment, participation and engagement, and quality of life and health. It identifies risks and challenges, particularly for vulnerable groups, and offers data-driven policy recommendations. In this way, the report promotes evidence-based strategies that encourage the inclusion and engagement of all young people in Austria, and ensure equal opportunities for all.

• Social Report and Social Policy Study Series

  The Austrian Social Report (Sozialbericht Österreich) is a publication of the Ministry of Social Affairs that has been produced on a regular basis since 1967. It provides comprehensive insights into developments and policies in the social sector. Among others, it focuses on improving living conditions, reducing social inequality, and promoting participation and equal opportunities for young people. Accordingly, the report stresses the need for targeted support measures and an inclusive welfare state that prioritises the need of young people. 

• Austrian Survey of income and living conditions by Statics Austria (based on EU-SILC data)

  The risk-of-poverty rate for young people in Austria is calculated based on data from the annual European Union Statistics on Income and Living Conditions (EU-SILC) survey, conducted by Statistics Austria for the Ministry of Social Affairs. This survey offers detailed insights into the living conditions, income, and social inclusion of all population groups, with a particular focus on children and adolescents, revealing the specific risks and barriers they encounter. These findings are essential for shaping targeted social policies that promote inclusion and equal opportunities for young people in Austria

• National poverty indicators

  To provide a more accurate assessment of poverty and social inclusion in Austria, Statistics Austria collaborated with the Federal Ministry of Social Affairs and the Austrian Platform Against Poverty and Social Exclusion to develop a set of comprehensive indicators originally called 'Inclusion Indicators'. These indicators cover areas such as standard of living, housing, working life, education, and health. They are crucial for analysing social policy and identifying key areas for intervention, particularly for vulnerable groups such as young people. By complementing EU poverty reporting, this framework enables ongoing monitoring of poverty and inclusion trends across Austria. The latest results are available in the publication 'Key figures on living conditions 2023' (Kennzahlen zu Lebensbedingungen 2023).

Poverty and young people at risk of poverty

In Austria, children and young people under the age of 18 are significantly more vulnerable to poverty and social exclusion than the general population. According to the 2025 EU-SILC Study (data from 2024), nearly one in four individuals at risk of poverty or social exclusion are children and adolescents under 18. By comparison, 16% of 18–34-year-olds face similar risks, according to Statistics Austria (2025). 

Around 143,000 children and young people under 18 (5% of this age group) experienced material and social deprivation in 2024, meaning their families struggled to afford basic necessities such as rent, utilities, unexpected expenses, heating, an annual holiday or essential household items (EU-SILC-Study 2025). Among young adults aged 18–34, the rate of material and social deprivation was considerably lower at 2% (Statistics Austria 2025).

Key risk factors for poverty and social exclusion include low educational attainment, unskilled or low-skilled employment, non-Austrian citizenship (particularly from outside the EU-27 or EFTA countries), unemployment, challenging family situations (e.g. addiction, domestic violence) and disability. These risks can affect children and young people directly or indirectly via their parents or other household members. Especially, when children and young people face multiple risk factors, vulnerability is particularly acute. In 2024, 27,000 children and young people lived in households affected simultaneously by poverty risk, severe deprivation and very low or no employment. Furthermore, 146,000 young people under the age of 18 were persistently at risk of poverty, having lived under these conditions for at least three consecutive years (down from 194,000 in 2023, but still a significant figure) (EU-SILC-Study 2025).

Social welfare measures, such as universal family allowances and targeted support for those in need, are crucial for reducing poverty. In 2021, 36% of children and adolescents lived in households receiving minimum income support or social assistance, accounting for 34% of couples with children and 23% of single-parent households (Youth Report 2023: 128). 

Homelessness and young people at risk of homelesness

In Austria, young people mainly become homeless due to structural factors such as family poverty, high housing costs, and limited social mobility. Their opportunities are strongly influenced by their parents' background, which often perpetuates poverty and housing instability across generations. Without crucial family and social support, young people are at a disadvantage, and limited access to services, jobs and training exacerbates their situation. Care leavers, who leave residential care when they turn 18, are particularly vulnerable as they lose welfare support and housing, putting them at high risk of homelessness.

In 2021, 2,530 individuals aged 14–24 were registered as either homeless or at risk of homelessness, with males accounting for 60.6% of this group.  Almost half of these young people were located in Vienna, where urban challenges such as high living costs and housing shortages worsen the situation. To address this issue, the Austrian government provides targeted support, including housing subsidies and minimum income assistance to help cover basic living expenses. They also improve access to social housing. Additionally, the nationwide initiative 'Young Living' (Junges Wohnen) offers affordable housing solutions specifically designed for young people at risk, helping them to secure stable accommodation and greater independence.

Barriers to participate in the Austrian labour market

Although Austria performed relatively well in terms of youth unemployment in 2023, ranking sixth from the bottom with a rate of 10.4% (compared to 14.5% for the EU as a whole), the economic downturn has exacerbated labour market difficulties, particularly for young people entering the workforce for the first time, as stated in the 'Youth and Work 2023' report (p. 5). In addition, low levels of education, migrant status and challenging family circumstances are among the main barriers to labour market participation of young people in Austria. Early school leavers and those not in employment, education or training (NEETs) are particularly at risk of long-term social and economic exclusion. In 2021, the NEET rate among 15- to 24-year-olds was 8.5%, with no significant gender difference. In 2022, the youth unemployment rate was 9.5%, again showing no significant difference between young men and women (Youth Report 2023: 84–87). However, people without Austrian citizenship were nearly twice as likely to be unemployed as their Austrian peers. Furthermore, having a migrant background poses a particularly high risk of early school leaving in Austria, as does coming from a socioeconomically disadvantaged background. In order to address youth unemployment and mitigate the risks of labour market exclusion, Austria has introduced specific initiatives, including the Austrian Youth Strategy, Education and Training Guarantee (Ausbildungsgarantie) and support for apprenticeships (Unterstützung und Förderungen für Lehrlinge) (see Chapter . These measures are specifically designed to support young people, including those who are not in education, employment or training (NEETs), migrants, refugees, individuals with disabilities, and those at risk of social exclusion, by improving their access to and retention in employment.

Young Non-EU/EFTA Migrants at Risk of Social Exclusion

Through the Austrian Integration Fund (ÖIF), Austria has expanded targeted education, language and employment programmes for migrants, including young people. These programmes highlight the importance of active participation in language learning, the labour market and social and cultural life for successful integration. However, the increasing diversity and geographic concentration of migrant groups, especially in Vienna, pose persistent challenges to integration. Young migrants from families with lower educational attainment, from non-EU/EFTA backgrounds, or with limited social networks are particularly vulnerable to exclusion (Integration Report 2024:3). Additionally, the rising proportion of pupils with migrant backgrounds and whose everyday language is not German is leading to measurable deficits in skills and early school leaving. Consequently, young migrants are significantly underrepresented in academic secondary schools, apprenticeships, and higher-level education, which increases their risk of social and economic marginalisation and makes it more challenging for them to enter the Austrian labour market and participate in society (ibid.: 23–39). 

The Impact of COVID-19 on Youth Vulnerability

Following the pandemic, many young people in Austria are still struggling with the aftermath of the crisis. The restrictions on social life disrupted regular contact with peers and limited opportunities to practise and develop social skills, with far-reaching consequences for mental health. According to the 2023 Youth Report (p. 211), family and friends are a vital source of support, offering protection against social isolation, particularly in times of crisis. Consequently, young people with limited social connections, or those facing challenging family circumstances, are particularly vulnerable to the ongoing effects of the pandemic, remaining at an increased risk of social exclusion.

Definitions and concepts

Austria does not have a single, concrete definition of 'social inclusion', nor a specific concept for youth inclusion. Instead, it is considered a broad, multi-layered issue addressed at various levels of society. In essence, this means that all individuals, regardless of their background, abilities, or circumstances, are entitled to equal rights and opportunities to participate fully in society. For young people, this involves tackling the risk of individual exclusion, such as unemployment, disability or discrimination, as well as providing support to those from disadvantaged families or facing other life challenges. Ultimately, inclusion in Austria is understood as a multidimensional effort to eliminate any obstacles that could prevent young people from participating in economic, social, and cultural life (see also Information sheet ‘Social Inclusion of Youth’ in Austria, 2014).