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Active labour market policies: Challenge for the Macedonian labour market

Author

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  • Petreski, Blagica
  • Tumanoska, Despina

Abstract

Labor market outcomes in Macedonia have been improving in the past eight years, despite the lingering effects of the Global economic crisis. The unemployment rate has been declining, albeit still remains high at 26.1% at the end of 2015. At the same time, the employment rate increased from 36.2% in 2007 to 42.1% in 2015. In spite the favorable developments related to the employment and unemployment rates, the activity rate continued to be the main challenge. Activity rate improved moderately, from 55.7% in 2007 to 57% in 2015, being still much lower than the EU-28 average of 72.4%. In order to tackle the high unemployment and inactivity, the government introduced ALMPs in 2017, with key objectives: 1) social inclusion of vulnerable groups on the labour market, 2) reducing unemployment, 3) increasing employability of the long-term unemployed people, and 4) fostering competitiveness of the economy. The ALMPs include four main categories: 1) direct job creations; 2) employment incentives; 3) traineeship; and 4) community work. The main objective of this research is to investigate the success of the ALMPs and its impact to the unemployment rate in the country.

Suggested Citation

  • Petreski, Blagica & Tumanoska, Despina, 2016. "Active labour market policies: Challenge for the Macedonian labour market," MPRA Paper 75879, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:75879
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    File URL: https://mpra.ub.uni-muenchen.de/75879/1/MPRA_paper_75879.pdf
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    References listed on IDEAS

    as
    1. Branimir Jovanovic, 2015. "Kalman Filter Estimation of the Unrecorded Economy in Macedonia," Working Papers 2015-02, National Bank of the Republic of North Macedonia.
    2. Marjan Petreski & Nikica Blazevski & Blagica Petreski, 2014. "Gender Wage Gap when Women are Highly Inactive: Evidence from Repeated Imputations with Macedonian Data," Journal of Labor Research, Springer, vol. 35(4), pages 393-411, December.
    3. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Blagica Petreski & Marjan Petreski, 2018. "Assessing the level of harmonization of regional welfare state policies with the European Pillar of Social Rights," Finance Think Policy Studies 2018-11/18, Finance Think - Economic Research and Policy Institute.

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    More about this item

    Keywords

    ALMPs; active labor marker measures; employment; unemployment.;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J8 - Labor and Demographic Economics - - Labor Standards

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