Labour market policy

Abstract

The dictionary defines labour market policy as the sum of the reactive and preventive measures aimed at reducing the misfunctioning of the labour market. 'Here a differentiation requires to be made between passive and active labour market policy. Passive labour market policy is in the first instance directed at alleviating the material results of joblessness. It includes measures to ensure income, that is, the ensuring of a basic income for persons capable of work who are affected by unemployment, and also their dependents. In comparison to this, active labour market policy is aimed at supporting the equalisation of the demand for workers emanating from the enterprises and the supply of labour from the households and thus contributing to an improved use of the resource labour.' What follows is a presentation of the way labour market policy in Germany has developed, especially the Hartz reforms and the Agenda 2010. In addition, the importance of labour market research for the scientific accompaniment of labour market policy is emphasised. Conclusion: The reforms of the German labour market policy over the last years were steps in the right direction. However in the next years numerous further challenges will arise.' This includes an increase in atypical working relationships; cross-border competition between employees; and the demographically conditioned reduction in labour. 'What is important is to flank all these developments with political measures, both to avoid social hardship on the part of those affected as well as to continue to make Germany an attractive location for employers and employees.' (IAB)

Cite article

Möller, J. & Spies, C. (2013): Arbeitsmarktpolitik. In: Konrad-Adenauer-Stiftung (Hrsg.) (2013): Lexikon Soziale Marktwirtschaft, o. Sz.