Activation Policies for the Poor in OIC Member States
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Although each activation policy and programme performs different functions, there are primary
features of activation measures which include:
The design and reform of requirements targeted at those claiming unemployment and
related working age benefits. This encompasses the financing and coverage of working age
benefits but with a particular focus on conditionality and the relative strictness of non-monetary
benefit eligibility conditions concerning, for example, job search activity and definitions of ‘suitable
work’. It includes detailed assessments of activation requirements including the frequency and
intensity of administrative contacts with the unemployed, mandatory participation in labour market
programmes, and sanction regimes.
The role, responsibilities and incentives of the varied institutions involved in labour market
policy and the ways in which employment and placement services are delivered. Key features
include the integration or co-ordination of benefit administration with the job placement function of
the PES; the financial resources for service delivery and programmes; and the extent to which the
organisations or levels of government that finance benefits have effective control over the local
delivery of placement and benefit administration.
Some of the common reasons for variations in design between countries include:
 Structural changes in the labour market as a result of changes in sectoral composition of the
workforce (e.g. employment changes associated with the increase or decline of manufacturing
relative to agriculture and the service sector)
 The varying levels of female labour force participation among the countries. In some countries
especially in part-time employment has been increasing.
 The development of more flexible and ‘non-regular’ employment patterns
 Other important social and demographic factors such as ageing populations, the increased
participation of young people in full-time education, and changes in family formation and
reduced fertility rates
Activation measures need to be appropriate for the conditions in each country and will change
(sometimes rapidly) dependent on the state of the economy and the stage in the economic cycle. Key
to this is the distinction between ‘demand-side deficiency’ and ‘supply-side constraints’. The former
(where there is insufficient demand for labour) will emphasise the need for measures to maintain
the employability of the workforce during periods of unemployment, like job creation. However,
supply-side constraints occur when there is an insufficient supply of a suitably skilled and
employable workforce, as such measures would emphasise training, active job search and job
matching, and policies to reduce inactivity.
Consequently, there can be no single detailed definition of ‘activation strategies’ – they need to be
shaped to meet the conditions in each country in order to meet the primary aims of reducing welfare
dependency and improving employability.
Below we consider in more detail the role and relevant issues for each type of intervention.
1.2.1 Job search support
Increasing the extent and effectiveness of job search is the fundamental building block of most
activation strategies. The theory is that active jobseekers will find work sooner than those who are
not searching sufficiently or not using all possible channels to search for vacancy information.
Increased job search is the most common element of the ‘mutual obligation’ that activation strategies
place on claimants – in return for receiving income support and being offered a range of services,
individuals must comply with a set of requirements, including demonstrating how they have looked
for work.