Archive:Labour market policy interventions

Data from September 2008, most recent data: Further Eurostat information, Main tables and Database.

Graph 1: Public expenditure on labour market policy interventions, 2006 (1)(% of GDP)

Labour market policy (LMP) interventions are generally targeted at providing assistance to the unemployed and other groups of people with particular difficulties to enter the labour market. The primary target groups in most European Union (EU) countries remain those people that are registered as unemployed by national Public employment services (PES). However, policy objectives are increasingly focused on a broader range of inactive persons within society, being targeted at women, the young, the elderly, or other groups of society that may face disadvantages and barriers that prevent them from joining the labour force.

Main statistical findings

Table 1: Labour market policy measures, participants by type of action, 2006 (1)(annual average stock in 1 000)

Graph 2: Public expenditure on labour market policy measures, EU-27, 2006 (1)(% of total)

The breakdown of expenditure and participants for different labour market policy interventions across the Member States was extremely varied, reflecting the different characteristics and problems faced within individual labour markets, as well as the political convictions of different governments. Within the EU-27, the highest level of relative expenditure on labour market policy interventions in 2006 was reported in Germany and Belgium (almost 3 % of GDP); this share was lowest in the Czech Republic, Greece, Romania, Lithuania and Estonia (all below 0.5 % of GDP). There was also a wide range of expenditure patterns in terms of spending on labour market policy services, with the Netherlands and the United Kingdom reporting the highest relative expenditure (around twice the EU-27 average).

The largest share of expenditure on active labour market policy measures in the EU-27 went on training (41.1 %) to improve the employability of the unemployed and other target groups. Almost one quarter (24.2 %) of EU-27 expenditure was accounted for by employment incentives, with roughly another quarter (26.3 %) being relatively equally shared between programmes developed to promote labour market integration among persons with reduced working capacity and programmes to create additional jobs.

An estimate of the participation in labour market policy initiatives suggests that some 11.4 million persons were engaged in the different types of action across the EU-27 in 2006. Of these, the most common types of action were employment incentives (4.6 million) and training (3.8 million).

Data sources and availability

The LMP methodology provides guidelines for the collection of data on labour market policy interventions: which interventions to cover and how to classify interventions by type of action, how to measure expenditure associated with each intervention and how to calculate the numbers of participants in these interventions (stocks, entrants and exits).

LMP statistics cover all labour market interventions which can be described as "public interventions in the labour market aimed at reaching its efficient functioning and correcting disequilibria and which can be distinguished from other general employment policy interventions in that they act selectively to favour particular groups in the labour market".

The scope of LMP statistics is limited to public interventions which are explicitly targeted at groups of persons with difficulties in the labour market: the unemployed, persons employed but at risk of involuntary job loss and inactive persons who would like to enter the labour market.

LMP interventions are classified into three main types:

• LMP services refer to labour market interventions where the main activity of participants is job-search related and where participation usually does not result in a change of labour market status.

• LMP measures refer to labour market interventions where the main activity of participants is other than job-search related and where participation usually results in a change in labour market status. An activity that does not result in a change of labour market status may still be considered as a measure if the intervention fulfils the following criteria:

1) the activities undertaken are not job-search related, are supervised and constitute a full-time or significant part-time activity of participants during a significant period of time, and

2) the aim is to improve the vocational qualifications of participants, or

3) the intervention provides incentives to take-up or to provide employment (including self-employment).

• LMP supports refer to interventions that provide financial assistance, directly or indirectly, to individuals for labour market reasons, or which compensate individuals for disadvantage caused by labour market circumstances.

These main types are further broken down into nine detailed categories according to the type of action:

• LMP services

1. Labour market services;

• LMP measures

2. Training;

3. Job rotation and job sharing;

4. Employment incentives;

5. Supported employment and rehabilitation;

6. Direct job creation;

7. Start-up incentives;

• LMP supports

8. Out-of-work income maintenance and support;

9. Early retirement.

Context

Labour market policy (LMP) interventions are generally targeted at providing assistance to the unemployed and other groups of people with particular difficulties to enter the labour market. The primary target groups in most countries remain those people that are registered as unemployed by national public employment services (PES). However, public expenditure on labour market policies should not be interpreted exclusively as demonstrating the strength of the political will to combat unemployment. Indeed, policy objectives are increasingly focused on a broader range of inactive persons within society. As such, LMP interventions are increasingly being targeted at women, the young, the elderly, or other groups of society that may face disadvantages and barriers that prevent them from joining the labour force.

Further Eurostat information

Publications

• Labour market policy - Expenditure and participants - Data 2006
• Labour market policies (LMP) - expenditure and participants 2007 - Data in focus 23/2009
• Nearly 2% of EU-27 Gross Domestic Product spent on labour market policies in 2006 - Statistics in focus 94/2008
• 1 in 10 of the population wanting to work took part in labour market training in 2006 - Statistics in focus 34/2009
• Labour market policy seminar 2006

Main tables

• Labour market, see:

Labour market policy

Main tables

Database

• Labour market, see

Labour market policy

Database

Other information

• Labour market policy database – Methodology – Revision of June 2006

See also

• Labour market