The Effectiveness of Active Labour Market Policies for Long‐Term Unemployed Jobseekers in Flanders

Abstract

Despite the fact that many European countries in the post‐pandemic period exhibit relatively low unemployment rates similar to the late 2010s, population ageing and labour shortages urge European policy‐makers to increasingly aim to also activate the remaining hard‐to‐employ unemployed such as long‐term unemployed groups. In the context of transitions to sustainable development and digitalization, a socially inclusive activation requires a wide array of activation programmes (including training, internships, or job search assistance), but also monitoring of whether such programmes are effective for more vulnerable population subgroups. Therefore, this study applies dynamic propensity score matching and hazard models to population‐wide administrative data for all long‐term unemployed jobseekers in Flanders (Belgium) between 2015-2022 to study their enrolment and the effectiveness of participation in a wide range of active labour market policies (ALMP) provided by the Flemish public employment service: labour market orientation, job search assistance, application and job interview training, and human capital programmes. Our findings highlight the continued enrolment of long‐term unemployed jobseekers in activation policies, demonstrating continuous support for labour market (re‐)entry. Additionally, the positive effects of participation on employment outcomes emphasize the importance of expanding and tailoring activation measures to ensure equitable opportunities for long‐term unemployed jobseekers.