The following paper takes a close look at the effectiveness of training and employment subsidies for combatting European unemployment. For this purpose, an article by Kluve and Schmidt (2018) is addressed. In their work, the authors stress that training and employment subsidies can neither be deemed as completely effective or completely ineffective. The implications of these programs and the progress initiated by them needs to be researched in greater detail in order to make any valid conclusions.
The various initiatives that are introduced to help battle unemployment are called “active labour market policy (ALMP)” (Kluve and Schmidt, 2018: 411). These entail such things as job training, job search assistance, subsidies for the creation of new jobs in the private sector, etc. At present, European countries cannot draw from a wide pool of data due to the fact that these programs have been introduced quite recently; in the United States these practices are more popular. At the same time, U.S. studies demonstrate that even when unemployment programs are well-intended, extensively funded, and planned out, they do not always lead to substantial positive change among program participants. Given that all social groups are different (heterogenous), it is highly important to study the individual effects of unemployment programs on each group. Hence, to evaluate the actual validity and potential effects of these programs, it is essential to come up with a valid research structure, putting together sets of comparable groups.
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Summing up, Kluve and Schmidt (2018) note that it is absolute crucial to evaluate the macroeconomic effects of each unemployment initiative, since some ALMP programs may have unanticipated effects on the participants and the overall employment situation (422). Some programs may fail to improve the unemployment situation. Hence, it is highly important to research in detail the numerous effects of ALMP programs and their effectiveness for each specific social group. Kluve and Schmidt (2018) stress that a careful analysis is necessary to identify the specific policies and measures that can be deemed effective (423). A Joint Employment Report (JER) is suggested as the number one tool for assessing the various effects of trainings/unemployment initiatives (Kluve and Schmidt, 2018: 423).
- Kluve, Jochen, and Christoph Schmidt. 2018. “Can Training and Employment Subsidies Combat European Unemployment?” Active Policy Evaluation: 411-448.
