Company Integration Subsidies as a Tool to Integrate Older Unemployed

Temporary employment subsidies may be viewed as an effective labour market policy tool aimed particularly at fostering re-integration of older unemployed workers: the employment effect it has on older beneficiaries is greater than on younger age groups, and employers' experience of the tool is extremely positive. Nevertheless, the older unemployed do not enjoy the full benefits of the subsidy, the result of individual factors as well as limited access to labour market segments. It has been found that the subsidy is being utilised for older workers especially in industries with a declining demand for labour and high unemployment. There is little evidence of any refocus on low-unemployment sectors.