Reforms of Active Labour Market Policies to meet evolving labour market needs

Many OECD countries are undertaking substantial reforms of their Active Labour Market Policy (ALMP) systems and Public Employment Services (PES), reflecting shared pressures from structural labour market changes, labour shortages and fiscal constraints. Two-thirds of OECD countries have reformed their ALMP system at least once during the past 15 years, including 6 OECD countries launching a major reform in 2025. This policy brief discusses the trends and reforms across OECD to provide more effective and efficient ALMPs to support economic resilience, productivity and growth. It also provides policymakers with guidance on when major reforms are warranted and how to design and implement ALMP reforms successfully.