Statistics Explained

Archive:Labour market policy interventions

Revision as of 09:16, 27 May 2010 by 127.0.0.1 (talk) (Updates)
Data from September 2009, most recent data: Further Eurostat information, Main tables and Database.
Graph 1: Public expenditure on labour market policy interventions, 2007 (% of GDP)

Broadly speaking, labour market policy interventions are forms of assistance to the unemployed and other groups of people with particular difficulties to enter the labour market.

The main targets in most European Union countries are people registered as unemployed by national public employment services. However, policy objectives increasingly focus on specific groups, such as women, the young and the elderly, all of whom face different obstacles. Interventions and target groups vary across Member States, as explained in the article below.

Main statistical findings

Table 1: Labour market policy measures, participants by type of action, 2007 (annual average stock in 1 000)
Graph 2: Public expenditure on labour market policy measures, EU-27, 2007 (1) (% of total)

Expenditures and targets of labour market policy interventions vary widely across Member States. This reflects the unique characteristics and problems of each labour market, as well as national governments' political convictions.

Within the EU, the highest level of relative expenditure on labour market policy interventions in 2007 was reported in Belgium (over 3 % of Gross domestic product), while the lowest shares were recorded in the United Kingdom, the Czech Republic, Latvia, Lithuania, Romania 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 reporting the highest relative expenditure (more than twice the EU average).

The largest share of expenditure in 2007 on active labour market policy measures in the EU went on training (38.3 %) to improve the employability of the unemployed and other target groups. Over one quarter (25.8 %) of the EU-27’s expenditure was accounted for by employment incentives, with a slightly larger share (28.1 %) 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 an average of 11.5 million persons were engaged in different types of action across the EU-27 at any point of time throughout 2007. Of these, the most common were employment incentives (5.6 million persons) and training (3.4 million persons).

Data sources and availability

The LMP methodology provides guidelines for collecting data on labour market policy interventions: which interventions to cover; 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 "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 data is limited to public interventions that explicitly target groups with difficulties in the labour market. This includes the unemployed, those employed but at risk of involuntary job loss, and inactive people keen to enter the labour force.

Three types of interventions

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 participants' main activity is not 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 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.

Additional category breakdowns

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 provide assistance to the unemployed and other groups facing difficulties entering the labour market. The primary target groups in most countries are people registered as unemployed by national public employment services. However, policy objectives increasingly target a broader range of inactive people within society. These include women, the young, the elderly, or other groups prevented from joining the labour force.

Further Eurostat information

Publications

Main tables

Labour market policy
Main tables
Labour market policy (t_lmp)
Public expenditure on labour market policies, by type of action (tps00076)
Public expenditure on labour market policy measures, by type of action (tps00077)
Public expenditure on labour market policy supports, by type of action (tps00078)
Participants in labour market policy measures, by type of action (tps00079)
Beneficiaries of labour market policy supports, by type of action (tps00080)
Persons registered with Public Employment Services (tps00081)

Database

Labour market policy
Database
Labour market policy (lmp)
Public expenditure on labour market policy (LMP) interventions (lmp_expend)
Participants in labour market policy (LMP) interventions (lmp_particip)
Persons registered with Public Employment Services (PES) (lmp_rjru)

Other information

External links

See also