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Labour market policy

Labour market policy (LMP) statistics provide information on labour market interventions which are defined 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.

Data on public expenditure and participants (stock and flows) are collected annually from administrative sources. According to the LMP methodology, labour market interventions are classified by type of action.

  • LMP services cover all services and activities of the public employment service (PES) together with any other publicly funded services for jobseekers.
  • LMP measures cover activation measures for the unemployed and other target groups including the categories of training, job rotation and job sharing, employment incentives, supported employment and rehabilitation, direct job creation, and start-up incentives.
  • LMP supports cover financial assistance that aims to compensate individuals for loss of wage or salary (out-of-work income maintenance and support, i.e. mostly unemployment benefits) or which facilitates early retirement.

The quantitative data on expenditure and participants are complemented by a set of qualitative reports which describe each intervention, how it works, the main target groups, etc.

LMP statistics are one of the data sources for monitoring the Employment Guidelines (part II of the Europe 2020 Integrated Guidelines). The guidelines specifically refer to the provision of active labour market policies, which cover LMP measures and LMP services, and adequate social security systems, which include LMP supports.

The data collection is conducted by the European Commission (DG Employment, Social Affairs and Inclusion). More information is provided on the dedicated LMP page of the DG.