Active Labour Market Analysis

Introduction

In this essay it will first define labour market and then it will discuss the use of active labour market policies (ALMPS). The essay will begin by giving a brief definition of active labour market policies and their background internationally. This essay will then outline the Irish economy, ALMPS in Ireland and the effects of these policies in Ireland. The essay will then go on to outline the consequences of failure when a policy is not successful.

The labour market is the relationship between the workplace and the work force (Careersportal, 2014). A workplace is an area where people work e.g. office; the workforce consists of people available to work in the workplace. Conditions of the labour market change overtime, this is evident through the ‘Celtic Tiger’ when economic growth had little effect on unemployment and in contrast, the recession which commenced in 2009. ALMPS aim to achieve higher employment and training for individuals of the country.

Introduction to ALMPS

Active labour market policies (ALMPS) are the intersection of employment and welfare. Clarke refers to ALMPS as “a broad range of measures which are designed to improve the skills and competencies of workers” (p. 101, 2014). These policies are aimed at employment and welfare. Active labour market policies try to make work more attractive and welfare less attractive. Active labour markets were introduced to improve the skills and qualities of an individual and support the process in the labour market. Other dimensions include financial aid for unemployed workers and people seeking employment. Active labour market policies were mainly set up by the government to increase employment, training and work experience (Clarke, R, 2014). Many policies fo...

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...with these policies are devastating long term unemployment. Long term unemployment refers to a cohort of the unemployed who have been out of work for one year or more (Halpin, B. and Hill, J, 2007). Tackling long term unemployment is crucial for the Irish government.

Conclusion

There is a substantial body of research seeking to evaluate the effectiveness of active labour market policies. This work goes back to the mid 1970’s when researchers in America began conducting studies at this time. European researchers started later. Active labour market policies can be seen as a response to the unemployment trap as I have referenced above. Over the past few years a number of measures have been implemented to limit the effects of un unemployment and poverty (Considine and Dukelow, 2009), reducing income tax and introducing minimum wage will make work further attractive.