Comparative analysis of expenditures related active labour market policies in the European Union and the Republic of Moldova

Abstract

In the present paper are analyzed the expenditures related to the active policies of the labor market. Each country annually allocates financial resources for ALMPs that aim to reduce unemployment at the national level. In this context, each country can allocate financial resources to different ALMP programs, depending on how it has proven its effectiveness over time. In addition to reducing unemployment, ALMPs can also help solve some social problems. ALMP expenditures related to GDP is the indicator that reflects the volume of financing of various programs that aim to reduce unemployment and increase employment. The Public Employment Service is the institution that manages the financial resources intended for ALMPs, the beneficiaries of which can be both the unemployed and the employers. In this context, employers are a main player of the labor market that can benefit from financial resources, through various programs, in exchange for keeping employees in the organization, or hiring unemployed people, or through their participation in the vocational training of the unemployed. Methodologically, the expenditures of ALMPs were analyzed at the level of each EU member state, reflected by several indicators. The statistical data used in the research were extracted from the website of the Directorate-General for Employment, Social Affairs and Inclusion of the European Union. JEL: J24; J48; J64; J68.