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The Case for Reorienting Active Labour Market Policies Towards the Demand‐Side

Author

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  • Jo Ingold
  • Jakhongir Kakhkharov
  • Qian Yi Lee

Abstract

Since the 1990s, Australia, like other OECD countries, has deployed active labour market policies (ALMPs) to assist unemployed individuals into employment. Extant scholarship in economics and other disciplines demonstrates the limitations of ALMPs, particularly for individuals who are long‐term unemployed and with multiple, complex barriers to employment. Critiques hinge on the limitations of the predominant supply‐side approach focused on case management and preparing individuals for employment without accounting for the behaviours and practices of the demand‐side (employers). This article argues that a reorienting of ALMPs towards the demand side is urgently required and proposes a blueprint to take this forward.

Suggested Citation

  • Jo Ingold & Jakhongir Kakhkharov & Qian Yi Lee, 2025. "The Case for Reorienting Active Labour Market Policies Towards the Demand‐Side," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 58(4), pages 326-331, December.
    • Handle: RePEc:bla:ausecr:v:58:y:2025:i:4:p:326-331
    DOI: 10.1111/1467-8462.70035
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    References listed on IDEAS

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    4. Ursula Jaenichen & Gesine Stephan, 2011. "The effectiveness of targeted wage subsidies for hard-to-place workers," Applied Economics, Taylor & Francis Journals, vol. 43(10), pages 1209-1225.
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