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Are Active Labour Market Programmes Least Effective Where They Are Most Needed? The Case Of The British New Deal For Young People

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Executive Summary

One view of Active Labor Market Programs (ALMPs) is that they are 'Most needed' in slack labor markets, where more unemployed workers require help finding jobs. But ALMPs might be less effective in such labor markets because there are fewer vacancies with which program participants can match. In this paper the authors use data over a nine year period, across 300 local labor markets, to show that the unemployment exit and job entry impacts of participating in a mandatory ALMP for unemployed young people - the British New Deal for Young People (NDYP) - were negatively correlated with unemployment rates.

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