Which Countries Have Most Flexibility in the Management of Labour Market Policy? An OECD Comparison

In order for labour market policy to contribute fully to competitiveness, inclusion and prosperity at the local level, flexibility is necessary in the management of policies and programmes. This chapter presents the results from research conducted in 25 OECD countries to evaluate the degree of flexibility available in the management of labour market policies and programmes at both the regional and local levels. Denmark, Switzerland, the United States, Finland and the Czech Republic present the highest degree of flexibility at the level of local labour markets (or “travel to work” areas), followed by Austria, New Zealand and Poland. In general, however, there is some way to go before offices at this level have an adequate level of flexibility to fully adapt employment policy to local needs and to priorities set in partnership with other local actors.