Negative emotional consequences of labour market activation policies for long-term unemployed young adults in Finland

Sami Ylistö,Hanna-Mari Husu

doi:10.1108/ijssp-02-2021-0039

Abstract

PurposeThis article deals with the negative emotional consequences of active labour market policies (ALMPs) for long-term unemployed young adults in Finland. Although such policies may have positive effects, an exploration of their negative impacts reveals their problematic side effects. We explore various aspects of ALMP interventions that prevent individuals from gaining such positive outcomes and thus reduce their motivation to invest in the policies.Design/methodology/approachDrawing on the affect theory of social exchange, we understand that individuals seek positive rewards from social interactions. Our data is taken from life course interviews with unemployed people aged 20–31 in central Finland in 2012–2013.FindingsWe find three factors linked to ALMPs that diminish participants' emotional well-being: experiences of unfairness, lack of control and a mismatch between ALMPs and clients' needs. By paying attention to aspects of labour market policy that diminish emotional well-being, it is possible to build more functional policies that better meet the needs of long-term unemployed individuals.Originality/valueThis study fills a significant gap in the literature, because there is limited research on unintended negative outcomes of ALMP activation.

Highlights

Wider trends such as globalisation, the growing significance of markets, increasing competition, privatisation and deregulation of labour markets have created individualisation, de-standardisation and fragmentation for young peoples’ transition and working careers (Blossfeld et al, 2005; Walther, 2006)
In light of Finland’s youth Active labour market policies (ALMPs) policies, we investigated four activation measures supervised by public employment service (PES): (1) training and supported employment interventions, including subsidised work; (2) the obligation to apply for study; (3) PES courses and employment training; (4) regular meetings with PES (Haikkola, 2019)
We have focused on the negative emotional consequences of ALMP measures for young adults understanding these policies as transactions and exchanges

Summary

Introduction

Wider trends such as globalisation, the growing significance of markets, increasing competition, privatisation and deregulation of labour markets have created individualisation, de-standardisation and fragmentation for young peoples’ transition and working careers (Blossfeld et al, 2005; Walther, 2006). These labour market trends have meant a shift towards workfare and activation policies, i.e. passive benefits towards more active measures. Activation has changed unemployed jobseekers’ societal position, with stricter conditions and increased links between the obligation to work and unemployment benefits. It has changed the political focus from Keynesian demand-side policies towards supply-side policies and the individualisation of unemployment (Keskitalo, 2008; Raffass, 2017).

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