The Active Labor Market Programs are accredited with two basic principal objectives: economic and social. Economic objective is realised through increased probabilities of the jobless youths getting employed, while the social objective improves the overall participation and dire inclusiveness linked to productivity. As a consequence, this leads to improved employment opportunities not leaving behind address to social chaos accompanying joblessness.

There are a range of activities through which the Active Labor Market Program stimulates employment and productivity. They are discussed below.

Increasing the quality of labor supply

Can't complete your paper?
Need a quick, creative solution?

Never too late to get it done by our pros

Write My Paper

Increasing the quality of labor supply is realised through the training and retraining of personnel. Training is aimed at filling the job and is often supported by the public governance through a direct provision scheme or subsidization of the training funds. In this case, training programs concern developing the basic employment job readiness or rather specific vocational skills of an individual. It might be a comprehensive scheme that is focusing on target cohorts such as the long term unemployed, and those employees displaced due to organization lay off schemes, but not so much limited to the youths who have dropped out of school. Training programs often lead to increased productivity and job employability. It, however, proves to be uneconomical in the case the job opportunities for trained workers are limited. The levels of unemployed skilled individuals rise within the society creating massive wastage (Betcherman et al. 2004).

Increasing the labor demand especially through public work projects

Increasing the labor demand is done through massive job creation and proper maintenance of the already existing job opportunities. It can be implemented through different avenues including wage subsidies, which are the subsidies aimed at heartening the employers to take into service new workers and also to retain those who might have been retrenched for business reasons (Alessio & Johannes 2012). It can be done directly to the employer or the worker, or through social security offset payments typically targeting the long term unemployed, areas of high joblessness of the youth. While such programs only serve a social objective, cost effective job creation design should be considered to avoid circumstances whereby subsidized workers get to replace the unsubsidized ones or at other times, the employers hiring subsidized workers but lays them off at the end of the subsidy period causing a deadweight loss phenomenon (Jochen, Kluve et al 2007).

Another avenue for labor demand creation is through the public works, these are known to comprise of a wide variety of terms including temporary community projects workfare and labor demanding projects which involve activities aimed at direct job creation via public goods producing activities and services. It can control unemployment and poverty through the creation of temporary job opportunities that can help the marginalized group, the poor and long term unemployed individuals to regain labor market contact. The Federal government can monitor such organizations directly or through private and nongovernmental organization contracts. This program is able to result in production of public goods and services not forgetting the development and improvement of infrastructure which in most cases becomes the major objective (Jonathan 2012).

Micro-enterprise development is another avenue of labor market improvement. These include all the different programs aimed at offering help to the unemployed workers to start their own business enterprises. It involves provision of both advisory and financial support for start up, provision of incubator services, and small enterprise operation cost support. It has been instrumental in assisting both the long term unemployed and newly unemployed individuals and is done through offering periodic financial allowance or start up lump-sum payment, but the beneficiaries must first undergo a success assessment program (Koning 2007).

Improving the correspondence of personnel to the job

These are linkage functions aimed at connecting the available jobs with the job seekers. It entails a wide range of activities comprising of initial employment interviews, proper counseling at the time of unemployment, formation of job clubs and societies and labor exchanges among organizations. Due to the existence of both public and private agencies serving different client needs, the public sector often targets the disadvantaged and the long term unemployed whereas private agencies focus mainly on the employed and skilled white collar employees. These are relatively inexpensive and can be useful in shortening the period of unemployment (Bergemann et al. 2011).


The Active Labor market program has been instrumental in alleviating poverty and unemployment among individuals in society. The training and retraining of workers should be combined with wage and employment subsidies. The youth should also be trained in various work areas to avoid unemployment among, but this must take place at the earlier education related interventions through intensive services. Through this, the labor fore is enhanced and the unemployment level reduced at an admirable rate. However, the program has experienced numerous problems in its course such as lack of adequate funds in execution of its mandate, and at times, the problem of a very low take rate.

Here You Can Get a Price Quote