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

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.