Effect of Active Labour Market Policies on Employment and Quality of Life

Abstract

Gross domestic product (GDP) is the most popular measure of macroeconomic activity. However, it is increasingly recognised that GDP should be associated with additional data and indicators. In 2010, the European Statistical System Committee recommended a set of indicators to measure quality of life. Some of these indicators are already prepared by the EU Member States’ and Lithuania’s statistical offices. Active labour market policies are increasingly applied in recent times for the purpose of broadening macroeconomic, employment and social policy. These tools are especially useful for the disadvantage groups, such as the longterm unemployed and older people to return to the labour market. Rising employment level is the most effective tonic for economic growth and social inclusion. Employment is a very important factor to guarantee equal opportunities, which is contributing to the full participation of citizens in economic, cultural and social life. This improves quality of life. This paper explores the major Lithuanian ALMP indicators and their relationship with the indicators of employment and quality of life.