A new report on Active Labour Market Policies by the European Network of Public Employment Services calls for continued efforts to serve disadvantaged groups, based on strengthened partnerships and addressing future skills needs. It reflects in particular on the impact of COVID-19 and the green and digital transitions.

© PES Network

The PES Network study report on ‘New forms of active labour market policy programmes’ reviews recent developments in the design and implementation of Active Labour Market Policies (ALMPs), and their use by Public Employment Services between 2015 and 2022. On this basis, it puts forward recommendations to address structural and future labour market challenges.

The report is based on detailed review of ALMPs in recent years, reflecting also on the impact of the COVID pandemic and the massive (new) job retention schemes put in place in many countries – as well as flexible PES responses to the large-scale displacement of people from Ukraine starting in 2022.

Important trends identified include more integrated service delivery covering aspects such as mentoring, coaching, counselling and follow-up for the most disadvantaged, as well as stronger partnership approaches. There are also new approaches to lifelong learning and addressing skills shortages, for example through more effective linking of training measures to labour market needs.

The study argues that a stronger focus on disadvantaged groups post-COVID is likely to remain a feature of ALMPs in the future, addressing structural labour market challenges. This includes support for groups that are unlikely to profit from recovery and employers who have trouble filling vacancies.

The report recommends, in particular, continuing efforts to serve disadvantaged groups, strengthening partnerships to close skills gaps and overcome skills shortages (including via cooperation with employers and increased effort to support digitalisation and greening), as well as reinforcing activities to respond to demographic change (e.g. better targeting towards in particular older workers, migrants, women).