Labour market programmes for employed and unemployed individuals: the (restricted) potential during the economic crisis

Abstract

"At the time of writing (October 2009), the increase in registered unemployment in Germany has been surprisingly low. This has resulted, in particular, from firms' use of firm-internal flexibility measures. These can, however, stabilize employment during a restricted time period only. What is the potential of active labour market programmes during the continuing recession? Based on the model of imperfect competition, it can be reasoned that active labour-market policy should in particular prevent long-term unemployment, support hard-to-place individuals and strengthen trust in the economy. Thus, it will be important to keep established standards in placement and counselling services. Furthermore, during a recession, the opportunity costs of participating in qualification programmes are less severe. Most evaluation studies find that these programmes have been effective in the past. Therefore, their resources should be expanded. Care should be taken, however, in increasing the use of wage subsidies or public employment programmes." (Author's abstract, IAB-Doku) ((en))

Cite article

Konle-Seidl, R. & Stephan, G. (2009): Arbeitsmarktpolitische Maßnahmen für Beschäftigte und Arbeitslose. Möglichkeiten und Grenzen in der Krise. In: Sozialer Fortschritt, Vol. 58, No. 11, p. 235-241. DOI:10.3790/sfo.58.11.235