According to the International
Labour Organization, long-term unemployment is defined as persons who are out
of work and have been actively seeking employment for at least twelve months or
more. One can lower unemployment rates by effectively using Active Labour Market Policies (ALMP’s) to improve employment outcomes, to lower benefit dependency rates, to
contribute to the quality and productivity of jobs and to strengthen social
cohesion (European Commission, 2006).
ALMP’s are government programmes that are
implemented to assist the unemployed. The Organisation for Economic Co-operation and
Development (OECD) defines
ALMP’s as programmes, which are geared toward helping to increase the available
employment opportunities for the unemployed. While passive policies seek to offer
replacement income during periods of unemployment or job search, active
policies emphasise labour market and reintegration.
According to the Eurostat
Statistics 2017, the long-term unemployment rate in the United Kingdom as of
July 2017 was at a low of 1.1 per cent. However, during the Great Recession,
there was an increase in cyclical unemployment especially among young people. The economy is slowly recovering from this
recent economic and financial crisis and there is now a transition from cyclical towards structural unemployment. This
is where these ALMP’s become crucial to maintaining low unemployment rates.
Active labour market programmes can be classified
into five categories; Labour market Training, Private
sector incentive programs,
Public Sector direct employment programs, Services and Sanctions- Job Search
Assistance, and Self- employment and microenterprise creation.
The main purpose of this study is to critically evaluate the
effectiveness of different types of ALMP’s on the reduction of long-term
unemployment and the conditions under which they operate in the UK. We will
then seek to discuss how the effectiveness of these ALMP’s can be enhanced.
study will organized in the following sections, Section two which will be a literature review, Section three which will
be research methodology and Section four which will be conclusions and recommendations.