Labour market interventions as predictors of re‐employment, job seeking activity and psychological distress among the unemployed

Abstract

This one‐year follow‐up study focused on the impact of labour market interventions (i.e. guidance courses, vocational training and subsidized employment) on re‐employment, job‐seeking activity and psychological distress of the unemployed. Another aim was to investigate how individual factors, especially one's financial situation, are related to re‐employment, job‐seeking activity and psychological distress. The results show that participation in guidance courses predicted re‐employment, whereas vocational training and subsidized employment did not have any effect on re‐employment. Of the individual factors, job‐seeking activity, and being married or co‐habiting in a steady relationship, predicted reemployment. None of the studied interventions increased job‐seeking activity. Deterioration of one's financial situation between the two measurement points was related to an increase in job‐seeking activity. Vocational training decreased temporarily psychological distress and a deterioration of one's financial situation was related to an increase in distress. Guidance, which focuses on job‐seekers' skills, job‐search process and labour market knowledge, should be emphasized more.