What Makes Jobs Policies Work? The OECD’s Guide to Improving Labour Market Programmes
As economies face rapid technological change, population ageing, and the accelerating green transition, governments are investing heavily in active labour market policies (ALMPs) to help people find and keep jobs. These policies, ranging from training programmes and job-search assistance to wage subsidies and support for entrepreneurship, are a cornerstone of employment strategies across OECD countries. In 2022 alone, OECD members spent on average 0.43% of GDP on ALMPs. With so much public money at stake, the key question is no longer just whether these programmes work, but how and why they succeed, or fail, in practice. That is the focus of a new OECD working paper by Sofia Dromundo and Olga Rastrigina, produced by the OECD Directorate for Employment, Labour and Social Affairs with support from the European Union and close collaboration with public employment services, policymakers, and social partners across member countries.
Beyond the Numbers: The Limits of Traditional Evaluation
For years, governments have relied mainly on quantitative evaluations, especially counterfactual impact studies, to judge the success of ALMPs. These studies can show whether participants are more likely to find jobs or earn higher wages than similar non-participants. They have delivered useful insights, such as the finding that training often pays off only in the medium term, while job-search assistance can produce faster but sometimes short-lived results. However, the OECD paper argues that numbers alone rarely explain what is actually happening on the ground. They do not show how programmes are designed, how frontline staff interact with jobseekers, or why the same policy works well in one place but poorly in another. To answer these questions, a different lens is needed.
A Practical Framework for Understanding What Works
The OECD’s answer is a structured framework for qualitative assessment. Rather than replacing quantitative evaluation, it complements it by focusing on real-world implementation. The framework combines self-assessment by the institutions that design and deliver programmes with external assessment by independent experts. Programme managers and staff are asked to describe in detail how their initiatives work and to compare their practices against clear benchmarks of good performance. External assessors then review this information, hold consultations, and apply the same benchmarks in a consistent way across programmes. Importantly, the aim is not to create rankings or league tables. Scores are used as learning tools, helping organisations reflect on strengths and weaknesses and identify where improvement is needed.
Eight Building Blocks of Effective Programmes
At the heart of the framework are eight criteria that together describe what a well-functioning labour market programme looks like from start to finish. These include evidence-based design, smart engagement of service providers, proactive outreach to vulnerable groups, and careful assessment and referral of participants. The framework also highlights the importance of integrated support, recognising that many jobseekers face multiple barriers such as low skills, health issues, or care responsibilities. Successful programmes often combine employment services with social, health, and education support. Sustained results depend on strong case management during participation and follow-up support after people enter work, especially for those at risk of falling back into unemployment. Partnerships with employers are another crucial element, ensuring that training matches real labour market needs. Finally, continuous monitoring and evaluation create feedback loops that allow programmes to adapt as conditions change.
Why This Approach Matters Now
The OECD paper makes a clear case that qualitative assessment should become a routine part of labour market policymaking, not an occasional add-on. By encouraging structured reflection and dialogue, the framework helps bridge the gap between policy design and delivery. It allows governments to learn from what works, adapt programmes to different contexts, and share good practices across regions and countries. In a world of fast-changing labour markets and tight public budgets, understanding how policies operate in practice is as important as measuring their outcomes. Used well, qualitative assessment can help ensure that active labour market policies deliver real, lasting benefits for workers, employers, and societies as a whole.
