active labour market policy
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Active labour market policies (ALMPs) are government programmes that intervene in the
labour market Labour economics seeks to understand the functioning and dynamics of the markets Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finlan ...
to help the
unemployed Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference peri ...
find work. Many of these programmes grew out of earlier
public works Public works are a broad category of infrastructure Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. Serving a country, city, or other area, including the serv ...

public works
projects, in the United States particularly those implemented under the
New Deal The New Deal was a series of programs, public work projects, financial reforms, and regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory Systems theory is the interdisciplina ...
, designed to combat widespread unemployment in the developed world during the
interwar period In the history of the 20th century, the Interwar period lasted from 11 November 1918 to 1 September 1939 (20 years, 9 months and 21 days), the end of the First World War World War I, often abbreviated as WWI or WW1, also known as t ...
. Today, academic analysis of ALMPs is associated with economists such as
Lars CalmforsLars Calmfors (born July 12, 1948 in Stockholm) is a Swedish economist and professor of international economics at the Institute for International Economic Studies at Stockholm University. He received his Ph.D. from the Stockholm School of Economics ...
and
Richard Layard Peter Richard Grenville Layard, Baron Layard FBA (born 15 March 1934) is a British labour economist, currently working as programme director of the Centre for Economic Performance at the London School of Economics. Layard was Senior Research O ...

Richard Layard
. Demand-side policies are policies used by the government to control the level of Aggregate demand (AD). Active labour market policies are prominent in the economic policy of the
Scandinavia Scandinavia; Sami Places * Sápmi, a cultural region in Northern Europe * Sami, Burkina Faso, a district of the Banwa Province * Sami District, Gambia * Sami, Cephalonia, a municipality in Greece * Sami (ancient city), in Elis, Greece * Sa ...

Scandinavia
n countries, although over the 1990s they grew in popularity across Europe. Notable examples include the
New Deal The New Deal was a series of programs, public work projects, financial reforms, and regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory Systems theory is the interdisciplina ...
in the UK and many
welfare-to-work The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is a United States federal law passed by the 104th United States Congress and signed into law by President Bill Clinton. The bill implemented major changes to So ...
programmes in the US.


Program types

There are three main categories of ALMP: *''Public employment services'', such as job centres and labour exchanges, help the unemployed improve their job search effort by disseminating information on vacancies and by providing assistance with interview skills and writing a
curriculum vitae In English, a curriculum vitae (,Definition of "curriculum vitae" ...

curriculum vitae
. *''Training schemes'', such as classes and
apprenticeship An apprenticeship is a system for training a new generation of practitioners of a trade Trade involves the transfer of goods from one person or entity to another, often in exchange for money. Economists refer to a system A system is a ...

apprenticeship
s, help the unemployed improve their vocational skills and hence increase their employability. *''Employment subsidies'', either in the public or private sector, directly create jobs for the unemployed. These are typically short-term measures which are designed to allow the unemployed to build up work experience and prevent skill atrophy.


The politics of ALMPs

A number of authors have argued that countries with stronger left wing political parties and
trade union A trade union (or a labor union in American English American English (AmE, AE, AmEng, USEng, en-US), sometimes called United States English or U.S. English, is the set of variety (linguistics), varieties of the English language native ...
s have more developed ALMP. On the other hand, social democratic parties may not promote ALMP if their constituents are well protected workers and hence face little risk of being unemployed. More recently, the notion that different types of ALMP have similar political determinants has been contested. In the United States and Great Britain, fragmented and under-resourced ALMPs have been attributed as a factor in the rise of populist backlash politics in the
Rust Belt The Rust Belt is a region of the Northeastern The points of the compass are the Euclidean vector, vectors by which planet-based directions are conventionally defined. A compass rose is primarily composed of four cardinal directions—north, e ...
and
post-industrial In sociology Sociology is the study of society, human social behaviour, patterns of social relationships, social interaction, and culture that surrounds everyday life. It is a social science that uses various methods of Empirical method, e ...
northern England Northern England, also known as the North of England or simply the North, is the most northern area of England England is a that is part of the . It shares land borders with to its west and to its north. The lies northwest of England ...

northern England
during the mid-2010s.


See also

* Earned income tax credit *
Job guarantee A job guarantee (JG) is an economic policy proposal aimed at providing a sustainable solution to the dual problems of inflation and unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is ...
*
Mixed economy A mixed economy is variously defined as an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon ...
* Social protection#Labor market Interventions *
Trade Adjustment AssistanceTrade Adjustment Assistance (TAA) is a federal program of the United States government The federal government of the United States (U.S. federal government) is the national government of the United States The United States of Americ ...
*
Welfare capitalism#REDIRECT Welfare capitalism Welfare capitalism is capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for Profit (economics), profit. Central characteristics of capitalism ...
* Active Labor Market Policies in Denmark


References


Further reading

*Gottschalk, P. & Freeman, R.B.
Generating Jobs: How to Increase Demand for Less-Skilled Workers
', Russell Sage Foundation, 2000 *Robinson, P. ''Active labour-market policies: a case of evidence-based policy-making?'', Oxford Review of Economic Policy, Volume 16, No. 1, 2000


External links

*
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to st ...

OECD

Active Labour Market Policies: Connecting People with Jobs
Work relief programs {{Improve categories, date=November 2019