ACTIVE LABOR MARKET MEASURES AIMED AT ALLEVIATING UNEMPLOYMENT

Abstract

Employment measures of the state can have a significant impact on employment, especially of those people who have difficulties entering the labor market. These measures don’t only stimulate employers, but also provide incentives for self-employment. The increase of government expenses on active labor market programs, particularly in Central and Eastern Europe, reduces unemployment, but  rapid economic growth and development is impossible without an increase of business investment. Serbia's unemployment rate is extremely high, and its reduction will result from employment policy measures that must comply with the requirements of the labor market, educational policy and scientific and technological development, while creating jobs in the private sector.This paper aims to show how much the developed countries of the EU, the countries of Central and Eastern Europe and Serbia invested in active employment measures  in the past, and it also shows the way those investments led to a decrease in unemployment. The structure of the measures taken to reduce unemployment, and the objectives and priorities of the national strategy for employment in Serbia are also presented. For this purpose, a comparative analysis of different indicators was carried out. The conclusion is that by using the measures of active employment policy states can significantly decrease unemployment, but these measures must be combined with investment activities.