The role of subnational governments in adult skills systems: Austria

Table of contents

• How is the adult skills system governed?
• Stakeholders and responsibilities at the national level
• Stakeholders and responsibilities at the regional level
• Stakeholders and responsibilities at the local level
• About the Local Employment and Economic Development Programme (LEED)
• About the Centre for Entrepreneurship, SMEs, Regions and Cities

This country note provides an overview of Austria's adult skills system's governance structure. It is part of an extensive review of all 38 OECD countries. The main findings across all countries are summarised in the OECD policy paper The Role of Subnational Governments in Adult Skills Systems. Representatives from the Austrian government reviewed the country note in May 2025 and it was published in June 2025.

Table 1. Overall governance and expenditure structure

Governance structure	Levels of governance	% of general government expenditure at the sub-national level
Federal	National: Republik Österreich, Regional: Bundesländer (9) Local: Gemeinden (2 093)	33.1%
How is the adult skills system governed?
Centralised	Combined system ✓	Decentralised

Note: Government expenditure at the sub-national level is distributed to the subnational level as 17,4% to the federal state level and 15,7% to the local level. For more information on the definitions of the governance models, please see (OECD, 2025[1]).

Source: (OECD/UCLG, 2022[2])

How is the adult skills system governed?

Austria is a federal state, with a regional level composed of nine federal states (Bundesländer) and a local level composed of 2 093 municipalities (Gemeinden). The adult skills system adheres to a combined structure.

• The strategic and legislative framework for Vocational Education and Training (VET) and Higher VET (HVET) is set at the national level by the Federal Ministry of Education and the Federal Ministry of Economy, Energy and Tourism. The Federal Ministry of Agriculture and Forestry, Climate and Environment is responsible for vocational training in agriculture and forestry. Continuous Education and Training (CET) and adult education (AE) are the responsibility of the Federal Ministry for Women, Science and Research. The federal states (i.e. the regional government level) play a key role in the implementation of VET and AE programmes, often in close cooperation with social partners.

• Provision of VET, HVET, CET and AE takes place across all levels of government by a mix of public, private and non-profit providers. The Ministry of Labour, Social Affairs, Health, Care and Consumer Protection in cooperation with the Public Employment Service (PES) (Arbeitsmarktservice Österreich), has the strategic responsibility for the design of Active Labour Market Policies (ALMPs), which are delivered by deconcentrated PES branches at the regional and local level.

• The municipalities play a limited role in the adult skills system, but other stakeholders operate locally to ensure access to services and alignment of provision with local labour market needs.

Table 2. Allocation of responsibilities across policy areas and levels of government

		Strategy	Intelligence	Implementation	Funding	Delivery
Policy area	National level
	VET, HVET	✓	✓	✓	✓	✓
	CET	✓	✓	✓	✓	✓
	AE	✓	✓	✓	✓	✓
	ALMP	✓	✓	✓	✓	✓
	Regional level
	VET, HVET	-	-	✓	✓	✓
	CET	-	-	✓	✓	✓
	AE	✓	✓	✓	✓	✓
	ALMP	-	-	-	-	✓
	Local level
	VET, HVET	-	-	-	-	-
	CET	-	-	-	-	-
	AE	-	-	-	-	-
	ALMP	-	-	-	-	-

Legend: ✓ = Yes; - = No

Note: For more information on exact definitions of policy areas and responsibilities, please see (OECD, 2025[1]).

Stakeholders and responsibilities at the national level

The national level in Austria is of high importance to the skills system.

• The Federal Ministry of Education is the main body responsible for schools as well as designing and strategically overseeing large parts of the education system (s. Schulorganisationsgesetz und Schulunterrichtsgesetz). The Federal Ministry of Economy, Energy and Tourism is responsible for the company-based part of the dual system of apprenticeship training (s. Berufsbildungsgesetz) for the master craftsmen examinations, the Engineer Qualification and also for the 2024 established new act for Higher Vocational Education and training. AE and CET are mainly the responsibility of the Federal Ministry for Women, Science and Research. The legal basis for professional training within the the companies is laid down in the Vocational Training Act (Berufsausbildungsgesetz, BAG). The Federal Ministry of Agriculture and Forestry, Climate and Environment is responsible for vocational training in agriculture and forestry (s. Land- und forstwirtschaftliches Berufsausbildungsgesetz)

• The Federal Ministry of Labour, Social Affairs, Health, Care and Consumer Protection is responsible for the Austrian PES and the general design of ALMPs while also overseeing the company-based part of the VET system (local protection rights, labour inspectorate). The PES operates through a deconcentrated regional and local office system.

• The Austrian Conference of Adult Education Institutions (Konferenz der Erwachsenenbildung) and its member such as the Institute for Economic Promotion of the Austrian Economic Chambers (Wirtschaftsförderungsinstitut der Wirtschaftskammer Österreich), the Rural Further Education Institute (LFI), the Austrian Vocational Training Institute (Berufsförderungsinstitut), the Association of Austrian Education Centres (Verband Österreichischer Volkshochschulen) and the Federal Institute for Adult Education (Bundesinstitut für Erwachsenenbildung) play a central role in the AE, VET and CET system.

• Social partners generally play a central role in all parts of the system, including through their representation in expert councils and by funding research institutes. Social partners are also involved in the apprenticeship system via the Federal Advisory Board on Apprenticeship and by designing training regulations, conducting assessment procedures, and providing education counselling and guidance. The latter is offered mainly through training institutions like the Austrian Vocational Training Institute (BFI), the Institute of Economica Promotion (WIFI) or the Rural Further Education Institute (LFI).

Table 3. Stakeholders and responsibilities at the national level

Name of institution	Responsibilities					Organisation type	Areas	Description
	Strategy	Intelligence	Implementation	Funding	Delivery
Federal Ministry of Education (Bundesministerium Bildung)	✓	✓	-	✓	-	Ministry	VET HVET	The Ministry is the main body responsible for the design and strategic oversight of large parts of the education system, including VET and HVET. The Ministry is responsible for the school-based part of the VET system, including intermediate and higher VET schools. It also develops the curricula for apprenticeship schools. The Ministry also plays a key role in shaping national skills strategies.
Federal Ministry of Economy, Energy and Tourism (Bundesministerium Wirtschaft, Energie und Tourismus)	✓	✓		✓		Ministry	VET HVET	The Ministry has a shared responsibility for VET and HVET with the Ministry of Education. It is responsible for the company-based part of the VET and HVET systems, including issuing in-company curriculum regulations on individual apprenticeship occupations (based on input from the Federal Advisory Board on Apprenticeship). The legal basis for professional training within the companies is laid down in the Vocational Training Act (Berufsausbildungsgesetz, BAG). Based on the Vocational Training Act, there are training and examination regulations (Ausbildungs- und Prüfungsordnungen) for each apprenticeship occupation. Since May 2024 the Federal Act on Higher Vocational Education and Training (HBB Gesetz) is in force. It opens up new opportunities and further education programs for skilled workers and graduates of initial vocational training on EQF level 5- 7
Federal Ministry of Women, Science and Research (Bundesministerium Frauen, Wissenschaft und Forschung)	✓	✓	-	✓	-	Ministry	AE CET	The Ministry is the main body responsible for AE and CET on the national level. The Ministry provides funding for adult education providers and oversees curriculum development for basic skills programmes and second chance education. The Ministry is furthermore responsible for supporting the quality enhancement and professionalization of adult education providers and personnel. The Ministry plays a key role in shaping lifelong learning strategy.
The Federal Ministry of Agriculture and Forestry, Climate and Environment (Bundesministerium Land- und Forstwirtschaft, Klima- und Umweltschutz, Regionen und Wasserwirtschaft)	✓	✓	-	✓	-	Ministry	VET HVET	The Federal Ministry of Agriculture and Forestry, Climate and Environmental is responsible for vocational training in agriculture and forestry. It cooperates with relevant Ministries and stakeholder.
Federal Ministry for Labour, Social Affairs, Health, Care and Consumer Protection (Bundesministerium Arbeit, Soziales, Gesundheit, Pflege und Konsumentenschhutz)	✓	✓	-	✓	-	Ministry	VET ALMP	The Ministry is responsible for the Austrian PES and for ALMPs by setting the national strategy for ALMP provision, setting ALMP budgets, designing ALMPs and deciding on target groups.
Austrian PES (Arbeitsmarktservice Österreich)	-	✓	✓	✓	-	National agency	ALMP	The PES is the central agency responsible for implementing labour market policies. It provides a range of services aimed at supporting job seekers and employers, including job placement, career guidance and skills development programmes. The PES is responsible for formulating targets and standards of service delivery of ALMPs and allocating resources to the regional and local PES branches. It is also responsible for monitoring the labour market and skills development, and it supports the provision of vocational guidance in cooperation with the Austrian Federal Chamber and vocational information centres.
Social partners	✓	✓	✓	✓	-	Social partners	VET HVET CET ALMP	Austrian social partners are represented through four economic groups: the Austrian Federal Economic Chamber (Wirtschaftskammer), the Austrian Chamber of Agriculture (Landwirtschaftskammer), the Austrian Federal Chamber of Labour (Bundesarbeitskammer), and the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund). They are involved in designing and implementing VET, HVET, CET and ALMPs. Responsibilities include the design of training regulations, carrying out assessment procedures, and providing education counselling and guidance. The latter is offered mainly through training institutions like the Austrian Vocational Training Institute, the Institute of Economic Promotion or the Rural Further Education Institute. The interest groups also play an active role in providing advice and researching skills issues. The Federal Advisory Board on Apprenticeship is composed of social partner representatives and vocational teachers. It advises the Ministry of Economy, Energy and Tourism on issues related to the apprenticeship system.
The Conference of Adult Education Institutions (Konferenz der Erwachsenenbildung)	-	-	✓	✓	-	Interest group	CET AE	The association operates as an interest group for AE and CET providers and partners with the Federal Ministry of Women, Science and Research to implement adult education policies, e.g., by running local adult education centres. It comprises ten non-commercial Austria-wide active AE/CET associations, including the Vocational Training Institute (BFI), the Institute of Economic Promotion (WIFI), the Rural Further Education Institute (LFI), and the Association of Austrian Adult Education Centres (VÖV).

Legend: ✓ = Yes; - = No

Source OECD compilation based on: (The Chamber of Labour, 2018[3]), (Lauringson, A. and M. Lüske, 2021[4]), (Cedefop; ibw Austria, 2022[5]), (Dual VET EU, 2024[6]), (Federal Ministry of Education, Science and Research, 2024[7]), (Federal Ministry Republic of Austria Education, Science and Research, 2024[8]), (EESC - European Economic and Social Committee, 2024[9]), (European Commission, 2023[10]; 2023[11]), (European Commission, 2024[12]; 2024[13])

Stakeholders and responsibilities at the regional level

The nine federal states play an essential but complementary role in the adult skills system. They are governed by the 1986 School Education Act (Schulunterrichtsgesetz), which defines the distribution of responsibilities between the federal government and the federal states in education administration. While the overall governance of VET, CET, and AE is centralised nationally, the federal states can adjust provisions to regional and local needs. AE is a federal state competence, but the federal government can set funding measures for adult education providers.

• In the VET system, the federal states are responsible for implementing VET programmes by running vocational schools and adjusting programmes to regional labour market needs. They do so in close co-operation with the Apprenticeship Offices (Lehrlingsstellen) overseen by the regional branches of the Austrian Economic Chamber. In the AE and CET systems, the federal states have more room for influence through funding, the promotion of regional programmes, and the support of local providers.

• Beyond the federal states, other key players at the regional level include the social partners (in particular through their involvement in the Regional Advisory Boards on Apprenticeships (Landes-Berufsausbildungsbeiräte) and the running of Vocational Information Centres) and various providers, including higher VET providers, which tend to operate at the regional level.

• For ALMPs, the regional PES offices are important in implementing services across local areas.

Table 4. Stakeholders and responsibilities at the regional level

Name of institution	Responsibilities					Organisation type	Areas	Description
	Strategy	Intelligence	Implementation	Funding	Delivery
Federal states (Landesregierungen)	-	-	✓	✓	✓	Subnational government	VET AE	The federal states act as supervisory authorities in the VET system. They are responsible for implementing VET programmes by running vocational schools and adapting VET programmes to regional labour market needs. They also collaborate with local industry and chambers to ensure the practical training components are relevant to local industry needs. In CET and AE, federal states have more room for influence through funding, developing regional-specific programmes, and supporting local providers. The federal states are also involved in the management of the national quality assurance framework for adult education providers (in cooperation with the Ministry of Education, Science and Research)
Regional PES office	-	✓	✓	✓	✓	National agency	VET ALMP	The regional PES offices are responsible for implementing ALMPs. They serve as intermediaries between jobseekers and employers and provide job placement and matching services, career guidance, and skills development/ vocational training programmes. They also manage unemployment benefits applications and monitor regional and local employment trends. The regional offices handle broader strategic planning, policy implementation and resource allocation across local PES offices.
Apprenticeship Offices) (Lehrlingsstellen)	-	-	✓	-	-	Social partners	VET	These institutions oversee and manage the dual apprenticeship system in cooperation with the federal states. They are part of the Austrian Economic Chambers or the Austrian Chamber of Agriculture and operate at the regional level in the nine federal states. Their responsibilities include registering apprenticeship contracts, certifying companies that want to offer apprenticeships, advising and supporting both employers and apprentices and overseeing the final examination.
Regional Educational Directorates			✓			Subnational government	VET	The regional educational directorates are responsible for the pedagogic issues in the higher, intermediate and part-time vocational schools, particularly for the implementation of the federal framework curricula and quality assurance.
Regional Advisory Boards on Apprenticeship (Landes-Berufsausbildungsbeiräte)	-	✓	✓	-	-	Social partners	VET	The Advisory Boards are part of the broader governance structure of the apprenticeship system. They serve as a platform where key stakeholders collaborate to ensure that the apprenticeship system functions effectively and meets the needs of regional labour markets. The boards are comprised of representatives of the social partners and are responsible for preparing expert opinions, proposals, and suggestions for the apprenticeship system
Vocational Information Centres	-	-	-	-	✓	Education provider	VET CET	These institutions provide career guidance and information about VET and CET. They are managed by the PES and are available across the country. They offer services to a wide range of individuals, including students, job seekers, and those looking to change careers. They operate at the regional and local levels across Austria.
Higher VET providers	-	-	-	-	✓	Education provider	HVET	There are multiple HVET institutions that operate across levels of government. These include the Universities of Applied Sciences (Fachhochschulen) and Higher Vocational Schools (Berufsbildende Höhere Schulen).

Legend: ✓ = Yes; - = No

Source: OECD compilation based on: (Cedefop, 2024[14]) (Dual VET EU, 2024[6]), (Federal Ministry of Labour and Economy, 2024[15]), (European Commission, 2023[11])

Stakeholders and responsibilities at the local level

The local level comprises 2 093 municipalities (Gemeinden)

• The municipalities do not hold any legislative powers in the filed of AE. However, other key stakeholders in the adult skills system operate locally to ensure that provision is aligned with local needs and accessible to citizens in all parts of the country. They include the Local PES offices, which provide services to job seekers and employers at the district or municipal level. It also includes various education and training providers, including adult education providers, CET institutions, VET schools and other VET training companies.

Table 5. Stakeholders and responsibilities at the local level

Name of institution	Responsibilities					Organisation type	Areas	Description
	Strategy	Intelligence	Implementation	Funding	Delivery
Local PES offices	-	-	✓	✓	✓	National agency	ALMP	The local PES functions at the district or municipal level, serving smaller geographic areas within a federal state. They provide direct, hands-on services to jobseekers and employers, including job placements, unemployment benefit administration, career counselling, and training programmes. Compared to the regional offices, they have a more operational role. The PES offices typically outsource most of their training programmes to external providers.
Adult education, CET and VET providers	-	-	-	-	✓	Education provider	CET AE	Numerous institutions, such as associations and social enterprises, provide various groups with non-profit and commercial adult education and training. Their provision encompasses formal, non-formal, and informal learning opportunities. They include adult education centres (Volkshochschulen), which are non-profit organisations, and private training providers. They also include the Vocational Training Institute, the Economic Promotion Institute and the Rural Further Training Institute, which operate at the national level but have a network of centres in cities and rural areas.
Training companies					✓	Education provider	VET	Training Companies play a key role in the Austrian Apprenticeship system. They are responsible entities for the apprenticeship training according to the training regulation(s). Therefore, the Training company needs to be certified and appoint qualified trainers who have to organise the learning process, support the apprentices and stay in contact with parents and the part-time vocational schools. Therefore, the training companies bear the main part of the cost of apprenticeship training.
Higher, intermediate and part-time VET schools	-	-	-	-	✓	Education provider	VET	The higher, intermediate vocational schools provide full-time schooling. According to the school curricula, part-time vocational schools must cover approximately 20% of the learning period.

Legend: ✓ = Yes; - = No

Source: OECD compilation based on: (European Commission, 2023[11]; European Commission, Eurydice, 2024[16])

References

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[5] Cedefop; ibw Austria (2022), Vocational education and training in Europe - Austria: system description, https://www.cedefop.europa.eu/en/tools/vet-in-europe/systems/austria-u2.

[6] Dual VET EU (2024), An introduction to The Dual VET system. The secret behind the success of Germany and Austria, https://www.dualvet.eu/docs/productos/1_The%20Dual%20VET%20system.pdf.

[9] EESC - European Economic and Social Committee (2024), BWS - Advisory Council for Economic and Social Affairs, https://www.eesc.europa.eu/ceslink/en/escs-in-member-states/austria-bws.

[12] European Commission (2024), 6. Education and Training, https://national-policies.eacea.ec.europa.eu/youthwiki/chapters/austria/62-administration-and-governance.

[13] European Commission (2024), 6.2 Administration and governance, https://national-policies.eacea.ec.europa.eu/youthwiki/chapters/austria/62-administration-and-governance.

[11] European Commission (2023), 3.2 Administration and governance, https://national-policies.eacea.ec.europa.eu/youthwiki/chapters/austria/32-administration-and-governance.

[10] European Commission (2023), Administration and governance, https://national-policies.eacea.ec.europa.eu/youthwiki/chapters/austria/32-administration-and-governance.

[18] European Commission, Eurydice (2024), 15. Legislation and official policy documents, https://eurydice.eacea.ec.europa.eu/national-education-systems/austria/legislation-and-official-policy-documents.

[16] European Commission, Eurydice (2024), 8.3 Main providers, https://eurydice.eacea.ec.europa.eu/national-education-systems/austria/main-providers.

[17] European Commission, Eurydice (2023), 8. Adult education and training, https://eurydice.eacea.ec.europa.eu/national-education-systems/netherlands/adult-education-and-training.

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[4] Lauringson, A. and M. Lüske (2021), “Institutional set-up of active labour market policy provision in OECD and EU countries: Organisational set-up, regulation and capacity”, OECD Publishing, Paris, https://doi.org/10.1787/9f2cbaa5-en.

[1] OECD (2025), “From national to local: Exploring the role of subnational governments in adult skills systems across OECD countries”, OECD Local Economic and Employment Development (LEED) Papers, No. 2025/XX, OECD Publishing, Paris.

[2] OECD/UCLG (2022), 2022 Country Profiles of the World Observatory on Subnational Government Finance and Investment., https://www.sng-wofi.org/country-profiles/austria.html.

[3] The Chamber of Labour (2018), HOW THE CHAMBER OF LABOUR REPRESENTS THE INTERESTS OF ALL WORKERS, https://wien.arbeiterkammer.at/service/Ratgeber/Die_Arbeiterkammer/The_Chamber_of_Labour_201810.pdf.

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