Social Protection Resource Centre

Active Labour Market Intervention Projects of SPRC

Active Labour Market Interventions (ALMIs) are an important tool for enhancing labor market integration. Their economic rationale is to increase the supply of skilled labor, reduce skill mismatches, foster labor demand for labor-intensive public employment programs, entrepreneurship, self-employment measures, or modify the structure of demand through employment subsidies (Auer et al., 2008). Their social rationale is to reduce Social Exclusion. In other words, effective Active Labour Market Policies & Interventions increase growth and competitiveness on the one hand and enhance inclusiveness on the other hand.
However, ALMIs require a thorough differentiation between other labor market and social protection policies such as cash transfers, and insurance (Kluve et al., 2017). These interventions are key to achieving inclusive growth; a growth that creates employment and reduces inequality. ALMIs help people find jobs, promotes directly or indirectly productive jobs, and improve the quality of skills and productivity of people which leads to growth in the economy (ILO, 2016). The international experience suggests that the ALMIs are particularly important for the countries that have a youth bulge but lower rates of labor force participation.
On the basis of our initial survey of literature on TVET and an analysis of recent national and international literature on the effectiveness of Active Labour Market Policies and Interventions, we believe that Pakistan has been slow in making the high impact skill development a vector of inclusive development. SPRC is working on two Projects, aimed at enhancing the effectiveness of public and private TVET investments/subsidies, which we hope would make Pakistan more competitive and benefit from the national and international opportunities in quality employment in a rather short span of time.
Project 1: Strengthening TVET to reduce Social Exclusion
Project 2: Social Impact Fund Management and Advisory Services

For further information:
Ms. Najya Ali