Active labour market policy is needed, not changes in the implementation

It is expected that in the coming years even shortages in the labor market at a moderate economic growth will occur. Due to demographic changes, there are fewer young people in the labor market, and there are more elderly people stop working. If we want to maintain our prosperity, we can do two things: increase the productivity of the people who are already working and increase employment. Increase in employment can be achieved when people work longer and as more people go to work. Probably all three of these options must be tapped in order to obtain sufficient effect. So there should be more people to work. You might say that's not a problem, because there are currently about 400-thousand people unemployed. To this number two caveats need to be made​​.

First, will the developments outlined this number to decrease in the coming years. But there will always be frictional unemployment because employers with vacancies and jobseekers to find each other instantaneously further. There may also be qualitative connection problems in the labor occur because the choice of education is not fully adapted to the demand for labor. This item comes in this number back to two studies on the choice of technology in education, and the image of technology by students and parents. That the labor market and not ordinary wages mechanism generally does not lead to a classical balance between supply and demand is extended forward in the work of the Nobel Laureates economy this year: Diamond, Mortensen and Pissarides. To work to get structurally more people we will have to look at those that are structurally outside the labor force. But then we have a problem, because these are mostly people who are unattractive to employers by a low level of education or a limitation. This is even the case for low-skilled work, but especially for the type of work for which training is required, the type of work that is becoming increasingly important in the labor market. Active labor market policies (training, mobility, promotion, wage subsidies) is needed to bridge this gap. Discrepancy Because it is in the inactive involves diverse groups, each with their own characteristics and problems customization required. Something we should not do in any case it is again completely ripping up the implementation structure of the active labor market, which is increasingly narrowed in the Netherlands to reintegration policy. The focus should be on what policies work for whom. One should also be here to do based on well-designed experiments. Valid evaluation to finally prepared We have more than changes in the implementation structure. Therein in the past 30 years major changes have been made which have cost a lot, but have yielded little.