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The Role of the Government

In this system of Social Partnership, the government has a com-pensatory functions As long as the bargaining partnera are perpared ex antę to conduct both wagę and employment level negotlations wlth the lntentlon of malntainlng fuli employment, the state is prepared ex post to make up the costs for any imbalance In these levels.

This willingness to compensate, which is seen as a sort of "immanence" by business and the unions, is intended to promote business confidence.

Specific compensatory measures include the awarding of public contracts, subsidies of investment credits and direct support of jobs.

3. The Austrian Labour Market Agency

Labour    market    policy    in Austria is determined strictly on a

federal    level    and is    pursued directly by    an administrative

authority, the Labour Market Agency (Arbeitsmarktverwaltung), under the supervision of the Ministry of Social Affairs. The Labour    Market    Agency    has three levels of    organisation:    the

Ministry, a regional employment Office in each of the federal States,    and the local employment offices.    The ministry is

responsible for the formułation and planning of labour market policy which is then carried out by the provincial and local