Active Labour Market Policy Measures Research Articles

Active Labour Market Policies for Rural NEETs in Lithuania: A Case of Rural Municipalities

This article aims to analyse active labour market policy efficiency for rural young NEETs integration into the labour market in the socioeconomic context of rural municipalities in Lithuania. For the empirical analysis, the administrative data of the public employment service concerning active labour market policy measures, e.g., training and mobility support, subsidised employment, and support for establishing or adapting workplaces of 2018 and 2022, as well as Lithuanian statistics data of 2018 and 2020 are used. The socio-economic environment of rural municipalities was analysed using the economic indicators (complex index), public transport accessibility, average wage, and free vacancies indicators. The recipient’s integration into employment after six months of participation in active labour market policy measures is analysed. The data revealed poor economic indicators, undeveloped public transport, lower average salaries, and a need for more vacancies in rural municipalities. The integration into employment fell significantly in two rural municipality clusters after the Covid-19 pandemic.

Do individualised projects help integrate the long‐term unemployed and disadvantaged people? Lessons from the Czech Republic

AbstractThis article evaluates a national project for the integration of long‐term unemployed and disadvantaged groups of jobseekers implemented in the Czech Republic since 2019. It discusses how individual work and active labour market policy measures for these groups have changed, and what the outcomes were. We combined a quantitative evaluation of the targeting and outcomes of the measures with a qualitative evaluation of changes in the project implementation through semi‐structured interviews and focus group discussions conducted at the Labour Office branches. The findings show the need to broaden the availability of hard measures such as private‐sector placement subsidies for the most disadvantaged jobseekers, and to improve soft measures (counselling and training), especially if front‐line workers do not have sufficient competences for individual work. We are cautious about generalising the findings, as the pandemic complicated the implementation of soft measures.

Allowance for Self-Employed Gainful Activity in Slovakia: A Closer look into the Factors Involved

Abstract Research background: Active labour market policy measures serve to improve the situation with unemployment and the placeability of jobseekers in the labour market. An important tool for the functioning of these interventions is their continuous monitoring and evaluation. Purpose: In this paper, we focus on the Allowance for self-employment gainful activity aimed at providing the financial contribution to start a business. The paper aims to find out those jobseekers’ characteristics that mostly increase the probability of participation in this intervention. Research methodology: We use data from the database of jobseekers of the Central Office of Labour, Social Affairs and Family in Slovakia, the probability model is constructed by a logistic regression. Results: We found several characteristics that significantly impact the decision to participate in the measure. Jobseekers with previous employment in service activities (NACE S), married, long-term unemployed and with a 2nd university degree have a higher chance of participating in this program of the labour market. On the contrary, high age, low education or permanent residence in the Bratislava region decreases the chance for participation in this intervention. Novelty: Knowing the individuals’ characteristics that significantly contribute to the interest in participating in this program can help policymakers set the instrument’s eligibility conditions and allocate funds to increase interest in using this treatment where necessary.

ГОСУДАРСТВЕННАЯ ПОЛИТИКА НА РЫНКЕ ТРУДА В СТРАНАХ ЕС: ОСНОВНЫЕ ТЕНДЕНЦИИ И НАПРАВЛЕНИЯ ТРАНСФОРМАЦИИ

The aim of this paper is to determine the prospects for the development of employment programmes in the labour market and the directions for their transformation in the EU countries. The author uses general scientific methods, methods of statistical processing of information, graphical methods, and comparative analysis. The information base of the study includes statistical data and materials of international organizations (UN, ILO, Eurostat, European Commission). The research results: the article presents an analysis of labour market policy measures in the EU countries during periods of sustainable development and economic crises; considers the structure and dynamics of expenditures on various programmes and the number of their participants; identifies the government labour market policy trends and the features of its implementation in countries with developed market economies and in post-socialist countries; presents assessments of the prospects for labour market policies in the EU countries in the face of new challenges. The author concludes about the prospects for labour market policy in the EU countries in the face of new challenges and about the possibilities of using the EU experience in developing active labour market policy measures in Russia. The scope of application: the research results can be used by Russian federal and regional executive authorities in the development of active labour market policy measures.

Lithuanian Active Labour Market Policy in 2009–2020: a Social Investment Perspective

An active labour market policy is an integral part of social policy, ensuring support for the unemployed to search for a job through developing their skills. Thus, the active labour market policy is part of the social investment, focusing on investment in people’s knowledge. The heart of social investment is the design of policy-enhancing people to work, use their skills, create families and grow up children. The active labour market policy was analysed, focusing on the measures and their development in Lithuania. At the same time, the analysis from the social investment perspective was missing. Thus, this research aims to analyse Lithuania’s active labour market policy from the social investment perspective between 2009 and 2020. The choice of the period was determined by the time of the world financial crisis in 2009 and the Covid-19 pandemic crisis in 2020. The analysis of legal documents and Eurostat data for 2009-2018 was used to attain the formulated aim. Additionally, the meta-analysis of the Ministry of Social security and Labour’s Social Reports in 2009-2017 was used to analyse active labour market policy development. The research is based on methodology, which suggests classifying the active labour market measures into the strong and weak investments in human capital. A strong investment provides basic education or training, and a weak one creates new jobs, job subsidies, counselling, services for getting the job, job searching programmes, benefits, and taxes allowances. The analysis of the Lithuanian active labour market policy measures revealed that both strong and weak investments in human capital were balanced only during the crises. However, during the inter-crisis period, Lithuania’s active labour market policy measures were more focused on the weaker investment in human capital measures or the “job first” strategy. The strong investment in human capital was the lowest in Lithuania among other Baltic countries during the analysed period.

Do Disadvantaged Young Adults Benefit Less from Social Investment? Studying Matthew Effects in Activation Measures

Abstract In Germany, social investment can be crucial for disadvantaged young adults, as intergenerational mobility is low and credentials are decisive for employment. However, the literature on policy implementation calls attention to ‘Matthew effects’, by which the most disadvantaged often have the least access to social investment. We contribute to ongoing research on Matthew effects by examining whether the worst-off among young German welfare recipients are assigned to active labour market policy measures that are more advantageous or less advantageous. Findings for a register sample of 20–22 year olds in 2014 support hypotheses that those with the lowest education and employment experience participate less often in the most advantageous measures; particularly in firm-based upskilling and employment assistance, and more often in measures that proved to be not as beneficial, such as workfare programmes. On a positive note, welfare experience during adolescence as an indicator of low socio-economic status in the family of origin does not additionally affect access to social investment policy measures.

Front-line work in activation and targeting of re-qualification programmes: lessons from the Czech Republic

ABSTRACT A paradigmatic policy change towards activation, together with currently very low rates of unemployment, made the most disadvantaged groups of unemployed people the focus of active labour market policy in the Czech Republic. The aim of including people with multiple and/or severe disadvantages in the labour market represents a new challenge for front-line workers at employment offices, as they are expected to provide their hard-to-place clients with individualised, tailored services, including well-targeted active labour market policy measures. In this paper, we analyse how successful front-line workers are in targeting re-qualification programmes at the most disadvantaged groups and which factors shape front-line work. Our findings are based on recent empirical (quantitative as well as qualitative) research in Czech active labour market policy in which we took part and on in-depth interviews on the topic that we carried out with front-line employment-office employees. We demonstrate failures in personalised front-line activation work and in targeting re-qualification programmes at disadvantaged groups and examine the underlying factors (e.g. governance reforms in activation, insufficient personnel resources, emphasis on coercion and standardisation of front-line work).

Active labour market policy use in Luxembourg: evidence from a firm survey

We analyse the use of active labour market policy (ALMP) measures by Luxembourg firms during the years of economic and financial crisis (2008–2009) and the subsequent European sovereign debt crisis (2010–2013). About 34% of Luxembourg firms used ALMPs between 2008 and 2013. Economy-wide, the use of ALMPs increased along both the extensive margin (more firms) and the intensive margin (more measures per firm). The likelihood that a firm hired with ALMPs is greater for firms that are large, multi-establishment, domestically oriented and firms facing strong demand and competition, with concerns about labour cost pressures.

Innovation and growth of skills

This paper analyses the strategic and legislative framework of innovation and growth of skills in Croatia. Emphasis is placed on the life-long learning system, especially the legal duty of the employer to education and training of his or her employees. The paper will present the results of the research carried out in the scope of the scientific research project Flexicurity and New Forms of Employment about the issues of flexicurity, atypical and new forms of employment, as well as the respective opinions of the employers operating in several branches and trade-unions. Finally, the author analyses different active labour market policy measures directed to the growth of skills and innovations.

An evaluation of German active labour market policies: a review of the empirical evidence

PurposeThe purpose of this paper is to review the results of studies that investigate the most important active labour market policy (ALMP) measures in Germany. A focus is also on programmes devoted to foster entrepreneurship which can make important contributions to a country’s growth and social welfare.Design/methodology/approachThe study relies on quantitative and qualitative assessments and a comparison of results of previous studies on ALMPs.FindingsThe available evidence suggests that most ALMP measures increase labour market prospects of the participants. In particular, evaluations of the entrepreneurship promotion activities show high success rates as well as high cost efficiency. The bulk share of participants of entrepreneurship measures is still self-employed after several years and nearly one-third of these businesses had at least one employee. The authors mention problems regarding the evaluation of previous programmes and highlight future challenges of German ALMP.Originality/valueThis is the first study on ALMP that has an extensive and explicit focus on entrepreneurship-promoting programs.

The assessment of flexicurity model elements and perspectives in Lithuanian labour market

The assessment of three elements of flexicurity model and perspectives (in Lithuanian labour market) are carried out by analyzing the flexibility of labour market, active labour market policy measures and social security system. It was found out that labour market in Lithuania is relatively less flexible and less secure than in Denmark and EU 28.

Active Labour Market Policies and Short-Time Work Arrangements: Evidence from a Survey of Luxembourg Firms

We analyse the use of active labour market policy (ALMP) measures and short-time work arrangements (STWAs) by Luxembourg firms during the years of economic and financial crisis (2008-09) and the subsequent European sovereign debt crisis (2010-13). About 34% of Luxembourg firms used ALMPs between 2008 and 2013. Economy-wide, use of ALMPs increased along both the extensive margin (more firms) and the intensive margin (more measures per firm). The likelihood that a firm hired with recourse to ALMPs is greater for large, domestically oriented, multiple establishment firms, firms facing strong demand, with concerns about labour cost pressures and unavailability of skilled labour. The crisis saw a surge in firms using STWAs. The likelihood of applying for STWAs increases with demand volatility, the share of workers with permanent contracts, export orientation and the inability to shift workers between establishments. Firms reported that 20-25% of jobs in STWAs were saved by this measure.

Musculoskeletal pain and re-employment among unemployed job seekers: a three-year follow-up study.

BackgroundPoor health is a potential risk factor for not finding employment among unemployed individuals. We investigated the associations between localized and multiple-site musculoskeletal pain and re-employment in a three-year follow-up of unemployed job seekers.MethodsUnemployed people (n = 539) from six localities in southern Finland who participated in various active labour market policy measures at baseline in 2002/2003 were recruited into a three-year health service intervention trial. A questionnaire was used to collect data on musculoskeletal health and background characteristics at baseline and on employment status at the end of the follow-up. We conducted a complete case (n = 284) and multiple imputation analyses using logistic regression to investigate the association between baseline musculoskeletal pain and re-employment after three years.ResultsParticipants with severe pain in the lower back were less likely to become re-employed. This was independent of potential confounding variables. Pain in the hands/upper extremities, neck/shoulders, lower extremities, as well as multiple site were not determinants of re-employment.ConclusionsOur findings lend some support to the hypothesis that poor health can potentially cause health selection into employment. There is the need to disentangle health problems in order to clearly appreciate their putative impact on employment. This will allow for more targeted interventions for the unemployed.Electronic supplementary materialThe online version of this article (doi:10.1186/s12889-016-3200-0) contains supplementary material, which is available to authorized users.

Does provision of targeted health care for the unemployed enhance re-employment?

BackgroundThere is increasing pressure to develop services to enhance the health of the workforce on the periphery of the labour market. Health promotion among unemployed people may improve their health but also to increase their employability. We tested whether re-employment can be enhanced with a health care intervention targeted at the unemployed.MethodsA 3-year follow-up, controlled design was used. The data were collected among unemployed people (n = 539) participating in active labour market policy measures. The baseline survey included established habitually used health questionnaires. The intervention consisted of three health check-ups and on-demand health services. Logistic regression analyses were used to obtain the odds ratios of the intervention group versus control group for being re-employed at follow-up. Health-related differences in the re-employment effects of the intervention were assessed through the significance of the interaction in the regression analyses.ResultsThe intervention did not serve to improve re-employment: at follow-up 50% of both the intervention group and the control group were at work. In further analyses, the odds ratios showed that the intervention tended to improve re-employment among participants in good health, whereas an opposite tendency was seen among those with poor health. The differences, however, were statistically non-significant.ConclusionThe experimental health service did not show any beneficial effects on re-employment. Nevertheless, rather than considering any particular health care as unnecessary and ineffective, we would like to stress the complexity of providing health services to match the diversity of the unemployed.

Life satisfaction effects of unemployment in Europe: The moderating influence of labour market policy

Public policy shapes the lives of individuals, and even more so if they depend on state support. In the case of unemployment, the financial situation is largely determined by cash transfers and daily routines depend on the involvement in active labour market policy measures. To what extent, however, can subjective well-being differences of European unemployed be traced back to the national design and generosity of labour market policy? This article applies multilevel and panel estimation techniques to identify the moderating effect of unemployment benefit generosity and active labour market policy on life satisfaction of the unemployed. While unemployment has strong negative life satisfaction effects in all 21 European countries under study, the generosity of passive labour market policy moderates this effect to a surprisingly large extent: the adverse effect of unemployment is almost doubled if unemployment benefits are meagre. This moderating effect can be explained both by a resource as well as a non-pecuniary mechanism. The positive moderating effect of active labour market policy is less robust across model specifications.

Training for the unemployed: differential effects in white- and blue-collar workers with respect to mental well-being

In this study we investigate the effects of active labour market policy measures on health and well-being and how these effects are connected with socioeconomic status. The data were collected among the participants (n = 212) in 24 conventional vocational training courses in Finland. According to the results, training was accompanied by improvements in health and well-being among participants with a higher socioeconomic status, whereas for blue-collar workers the changes were neutral or even detrimental. The results raise questions about the role of active labour market policy measures as a public service. There seems to be a risk that these types of measures maintain or even produce health differences between socioeconomic groups.

Economic crisis and labour force transition to inactivity: a comparative study in German rural and urban areas

This study analyses the determinants of labour force transition to inactivity in the German labour market. Using German Labour Force Survey data the infl uence on the transition fl ow to inactivity of factors such as age, education, marital status, sex and registration with the public employment service are examined. We present estimates of degree of urbanisation-specifi c multinominal logit models to analyse the determinants of individuals’ transition probabilities in rural and urban areas. By comparing the infl uence of the factors that affect transition to inactivity before (2002-07) and during (2008-09) the global economic crisis, this paper contributes to the general understanding of transitional labour market fl ow dynamics during the crisis period. The fi ndings suggest that during the crisis period education level and marital status have had different impacts in rural and urban regions on the transition to inactivity. While these two factors infl uenced the transition to inactivity before the crisis, their effect has been stronger during it. Additionally the results suggest that the interaction of individuals with institutional settings (e.g. registration with the public employment service) have to be taken into account when designing active labour market policy measures, especially during crisis periods. Knowledge about the infl uence of these factors on the transition to inactivity, and their different effects in rural and urban areas, provides important information for designing policies aiming to reduce the transition to inactivity during crisis periods.

Muscular fitness and re-employment among unemployed job seekers in Finland: A three-year follow-up study

Research suggests that health is an important determinant of re-employment. However, the association between specific physical health components, such as muscular fitness, and re-employment has not been well studied. In a three-year follow-up of unemployed people, we investigated whether muscular fitness is associated with re-employment. In 2002-2005, unemployed people (n=130) who were participants in active labour market policy measures were recruited to participate in a Career Health Care (CHC) project. Data on background characteristics and muscular fitness were collected in 2002/2003 using a questionnaire and laboratory measurements. Clientship in the CHC lasted for three years, and at its end, participants' employment status was assessed by a questionnaire. Logistic regression was used to investigate the association between baseline muscular fitness (repetitive lift, sit-ups, and squats) and re-employment after three years. The probability of re-employment within three years significantly increased with improved performances on muscular fitness tests (lifting, sit-up, and squatting) after adjustment for age and gender. Unemployed people with good muscular fitness had increased probability for re-employment as compared to those with poor muscular fitness.

Encounters with unemployment in occupational health care: Nurses' constructions of clients without work

This study explores occupational health nurses' encounters with unemployed clients in Finland. It involved setting up and evaluating a new service, Career Health Care, that resembled occupational health care, except that clients were recruited from among job seekers who were participating in one of three active labour market policy measures: vocational training, subsidised employment in the public sector, or participatory training for entering the labour market. Our main interest focused on nurses' perceptions of the unemployed and their professional practices in the context of Career Health Care. The analysis revealed four overlapping discourses with regard to clients: the client as a casualty of unemployment, the client as unemployed but active, the client as a deviant in the labour market, and the client as a skilled user of the system. Each discourse had implications for professional practice. The risk of negative stereotyping and consequent exclusion from services is discussed here. In conclusion, we stress the complexity of providing health services that can match the increasing diversity of contemporary labour market trajectories.

The exclusion and marginalisation of immigrants in the Danish welfare society

PurposeThe purpose of this paper is to discuss and theorise the links and possible dilemmas posed by the politics of redistribution and the politics of recognition taking the case of Denmark as the point of departure.Design/methodology/approachThe empirical observations in this paper consist of the political and discursive climate around legislation on ethnic minority matters, information from the Danish Statistical Bureau, the “Danish Level of Living Survey”, and the experiences from Danish urban districts which have a high concentration of immigrants.FindingsSince the 1990s, the political discourse has changed with the emergence of right‐wing, anti‐immigration populism seriously affecting immigrants’ and refugees’ legal rights and their possibilities for socio‐cultural and socio‐economic inclusion. On the one hand, these changes have been driven by a strong “work first” discourse which has led to a reduction of the duration and level of social benefits, and increased poverty. On the other hand, other policy changes have been more inclusive examples being education policy, active labour market policy measures and innovative empowerment programmes in deprived urban districts.Practical implicationsSocial innovation – here defined as the ability to organise bottom linked collective action/empowerment (including efficient political representation) – is a condition for reaching sustainable democratic and social development. But without more far‐reaching changes in the socio‐cultural and socio‐economic opportunity structures based on universal welfare principles and which also clearly address structural ethnic discrimination in all spheres of the social fabric, local empowerment and recognition strategies are likely to fail.Originality/valueThe paper addresses a crucial issue in the Danish and other European societies in relation to the exclusion and marginalisation of immigrants. The value of the paper is that it integrates different theoretical approaches to inclusion and exclusion of immigrants and employs different empirical material (quantitative and qualitative) to both underpin, discuss and challenge these theoretical approaches.