Living Conditions of Disadvantaged Population Groups in Austria

The study has two main objectives: First, it provides a comprehensive analysis of the living conditions of disadvantaged population groups in Austria in 2024, with a particular focus on the risk of poverty and social exclusion. Second, it examines the situation of people with health-related limitations in their daily activities in order to provide a nuanced picture of the circumstances for this particularly vulnerable group and to identify areas where social policy action is needed.

The first part of the study shows that, despite slight improvements, the risk of poverty and social exclusion in Austria remains at a high level. With a risk rate of 16.9 percent, the country is well above the target of 13.4 percent by 2030. Against the backdrop of a strained economic situation and limited government resources, the challenge of significantly reducing the number of people affected in the coming years becomes clear. The at-risk-of-poverty rate has been stagnant for years (2024: 14.3 percent), while material and social deprivation remains at a high level of 3.7 percent. Particularly concerning is the increase in extreme poverty, which encompasses multiple disadvantages across various sub-indicators of the risk of poverty and social exclusion and reached 4.4 percent in 2024—the highest level since 2018. Additional indicators of living conditions point to the need for further action: In the area of housing, for instance, a record 3.6 percent of the population is affected by very poor housing standards, suggesting a general deterioration in quality of life. Employment prospects for young people are also taking a critical turn: the proportion of 16- to 29-year-olds who are neither in education nor employment (NEET) reached a new high of 13.8 percent. These findings illustrate that social policy challenges in Austria remain significant, particularly under consideration of current economic uncertainties and austerity measures in the public sector. They further underscore the need for targeted social policy interventions, particularly to effectively combat multiple forms of disadvantage and to sustainably improve the living conditions of especially vulnerable population groups.

The second part of the study focuses on people with health-related limitations in daily activities who are identified as being at particularly high risk of poverty and social exclusion. The study includes individuals who have been limited in their daily activities for at least six months due to health reasons, divided into two groups: those with mild limitations and those with severe limitations. Each of these groups is compared to the group without limitations. Our results show that people with health-related limitations form a heterogeneous group. What they have in common, however, is the experience of structural disadvantages in various areas of life, as well as a disproportionately high risk of poverty and social exclusion. Multivariate analyses confirm that health-related limitations are a significant risk factor for vulnerability to poverty and exclusion, as well as for material and social deprivation—even after controlling for other influencing factors such as age, education, and household composition. Within this group, women, working-age individuals, and those with more severe health limitations are particularly at risk of poverty and deprivation.

Main causes of the high level of precariousness among people with health-related disabilities include a comparatively lower level of education, lower labor force participation, and structural barriers to accessing education and the labor market. Despite existing social welfare benefits such as long-term care allowances, pensions for reduced work capacity, and social assistance, financial support is often insufficient to adequately compensate for the lack of earned income. In light of these findings, there is a clear need for social policy strategies that sustainably improve the opportunities for participation among people with health-related limitations—particularly in the areas of education, labor market integration, and housing.