What Makes Jobs Policies Work? The OECD’s Guide to Improving Labour Market Programmes – Devdiscourse

Report on Active Labour Market Policies and Sustainable Development Goals

Introduction: Context and Importance of ALMPs

As economies undergo rapid technological changes, face population ageing, and accelerate the green transition, governments are investing significantly in Active Labour Market Policies (ALMPs) to support employment. These policies, which include training programmes, job-search assistance, wage subsidies, and entrepreneurship support, are fundamental to employment strategies across OECD countries. In 2022, OECD members invested on average 0.43% of GDP in ALMPs.

Given the substantial public investment, the focus has shifted from merely assessing whether these programmes work to understanding how and why they succeed or fail in practice. This report is based on a new OECD working paper by Sofia Dromundo and Olga Rastrigina, developed with support from the European Union and collaboration with public employment services, policymakers, and social partners.

Emphasizing Sustainable Development Goals (SDGs)

Active Labour Market Policies contribute directly to several SDGs, including:

1. SDG 8: Decent Work and Economic Growth – by promoting employment and inclusive economic participation.
2. SDG 4: Quality Education – through training and skills development programmes.
3. SDG 10: Reduced Inequalities – by targeting vulnerable groups and ensuring equal access to employment opportunities.
4. SDG 3: Good Health and Well-being – by integrating health support in employment services.
5. SDG 17: Partnerships for the Goals – through collaboration among governments, employers, and social partners.

Beyond the Numbers: Limitations of Traditional Evaluation Methods

Traditional evaluations of ALMPs have primarily relied on quantitative methods such as counterfactual impact studies. These methods assess whether participants are more likely to find jobs or earn higher wages compared to non-participants. While these evaluations have provided valuable insights—such as the medium-term benefits of training and the short-term effects of job-search assistance—they fall short in explaining the practical implementation and contextual factors influencing success.

Quantitative data alone do not reveal how programmes are designed, how frontline staff engage with jobseekers, or why outcomes vary across regions. To address these gaps, a qualitative assessment approach is necessary.

A Practical Framework for Qualitative Assessment

The OECD proposes a structured qualitative framework that complements quantitative evaluations by focusing on real-world implementation. Key features include:

• Self-assessment by programme designers and delivery staff describing operational details.
• External assessment by independent experts applying consistent benchmarks.
• Use of scores as learning tools rather than for ranking or competition.
• Facilitation of reflection on strengths, weaknesses, and areas for improvement.

This approach fosters continuous learning and adaptation, aligning with the SDG commitment to inclusive and effective institutions (SDG 16).

Eight Building Blocks of Effective Labour Market Programmes

The framework identifies eight essential criteria for successful ALMPs, which align with multiple SDGs by promoting inclusive and sustainable employment:

1. Evidence-Based Design: Programmes grounded in data and research to ensure effectiveness.
2. Smart Engagement of Service Providers: Efficient collaboration among stakeholders.
3. Proactive Outreach to Vulnerable Groups: Ensuring access for marginalized populations, supporting SDG 10.
4. Careful Assessment and Referral: Tailoring support to individual needs.
5. Integrated Support Services: Combining employment, social, health, and education assistance to address multiple barriers (SDG 3 and SDG 4).
6. Strong Case Management and Follow-Up: Sustaining employment outcomes and preventing relapse into unemployment.
7. Partnerships with Employers: Aligning training with labour market demands, fostering SDG 17.
8. Continuous Monitoring and Evaluation: Creating feedback loops for programme adaptation and improvement.

Significance of the Approach in Current Context

The OECD paper advocates for the routine integration of qualitative assessment in labour market policymaking. This approach:

• Bridges the gap between policy design and delivery.
• Enables governments to learn from practical experiences and adapt programmes to diverse contexts.
• Facilitates sharing of best practices across regions and countries.
• Supports efficient use of public funds amid fast-changing labour markets and budget constraints.
• Ensures ALMPs deliver sustainable benefits for workers, employers, and society, advancing the achievement of SDGs.

Conclusion

Active Labour Market Policies are critical tools in achieving sustainable development by promoting inclusive employment, reducing inequalities, and fostering economic growth. The OECD’s qualitative assessment framework enhances understanding of these policies’ practical implementation, supporting continuous improvement and alignment with the Sustainable Development Goals. Governments and stakeholders are encouraged to adopt this approach to maximize the impact of ALMPs in the evolving global labour market.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • The article focuses on active labour market policies (ALMPs) aimed at helping people find and keep jobs, which aligns directly with SDG 8’s goal to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. SDG 4: Quality Education
   • Training programmes and skill development mentioned in the article relate to SDG 4, which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
3. SDG 10: Reduced Inequalities
   • The article highlights proactive outreach to vulnerable groups and integrated support addressing multiple barriers, which connects to SDG 10’s target to reduce inequality within and among countries.
4. SDG 17: Partnerships for the Goals
   • Partnerships with employers and collaboration among policymakers, social partners, and public employment services relate to SDG 17, which emphasizes strengthening the means of implementation and revitalizing global partnerships.

2. Specific Targets Under Those SDGs Identified

1. SDG 8 Targets
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
   • Target 8.6: Reduce the proportion of youth not in employment, education, or training.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
2. SDG 4 Targets
   • Target 4.4: Increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs, and entrepreneurship.
3. SDG 10 Targets
   • Target 10.2: Empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
4. SDG 17 Targets
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.

3. Indicators Mentioned or Implied to Measure Progress

1. Employment and Earnings Outcomes
   • Indicators measuring whether participants find jobs or earn higher wages compared to non-participants (implied in quantitative evaluations).
2. Participation Rates in Training and Job-Search Assistance
   • Indicators related to the number and proportion of people participating in training programmes and job-search assistance.
3. Outreach to Vulnerable Groups
   • Indicators assessing the extent and effectiveness of proactive outreach to vulnerable populations facing barriers such as low skills or health issues.
4. Programme Implementation Quality
   • Qualitative indicators from self-assessment and external assessment frameworks measuring evidence-based design, case management, integrated support, partnerships, and continuous monitoring.
5. Follow-up Support and Sustained Employment
   • Indicators tracking follow-up support after employment and the sustainability of job retention.

4. Table: SDGs, Targets and Indicators

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