The Evaluation of Active Labour Market Policy in Montenegro
There is a general agreement that unemployment is one of the most difficult economic and social problems for the community and its affected individuals. Unemployment is a loss of production and income, it causes high fiscal costs, contributes to a significant breakdown of human capital, and increases inequality in society because in crisis conditions the unemployed loose more than employees. For those affected, unemployment causes significant psychological burdens, leaving the impression of uselessness and hopelessness, and finally creates social exclusion. An active labour market policy can help to reduce the mismatch between supply and demand primarily by reducing occupational and spatial mismatches between supply and demand of the labour force and increasing labour market transparency. An active policy is not or should not be a set of universal employment measures aimed at all, but only to the most vulnerable.