"ALMPs are designed to increase opportunities for those seeking employment and increase human capital through training of the labour force. These policies differ from what can be called "passive" labour market policies, such as unemployment insurances, as they do not simply aim to support an individual to endure an unemployment period and help them to find a new job because they are entitled to the benefit. ALMPs ask for specific behaviours from the beneficiary, constituting a relation that is more similar to an exchange since the effort of the worker is "paid" in form of the benefit.
According to Kluve (2010), there are four types of ALMPs:
(1) Training programmes – the most common, offer activities such as classroom training, onthe- job training and work experience. The goal is to enhance the employability of the participants, by teaching skills and improving productivity.
(2) Private sector incentive programmes – are measures that offer incentives to employers and/or workers to change their behaviour regarding private sector employment. Wage subsidies are the most common type of incentive.
(3) Public Works in the public sector – create and provide jobs that produce public goods or services programmes.
(4) Services and Sanctions: are actions to enhance job search efficiency. By providing support to find work, or by imposing sanctions if the participant does not perform the search as conditions states."
Source: ISSA. 2016. 'Literature review: Impacts of active labour market policies'
