Negative emotional consequences of labour market activation policies for long-term unemployed young adults in Finland

Abstract

Purpose This article deals with the negative emotional consequences of active labour market policies (ALMPs) for long-term unemployed young adults in Finland. Although such policies may have positive effects, an exploration of their negative impacts reveals their problematic side effects. We explore various aspects of ALMP interventions that prevent individuals from gaining such positive outcomes and thus reduce their motivation to invest in the policies.

Design/methodology/approach Drawing on the affect theory of social exchange, we understand that individuals seek positive rewards from social interactions. Our data is taken from life course interviews with unemployed people aged 20–31 in central Finland in 2012–2013.

Findings We find three factors linked to ALMPs that diminish participants' emotional well-being: experiences of unfairness, lack of control and a mismatch between ALMPs and clients' needs. By paying attention to aspects of labour market policy that diminish emotional well-being, it is possible to build more functional policies that better meet the needs of long-term unemployed individuals.

Originality/value This study fills a significant gap in the literature, because there is limited research on unintended negative outcomes of ALMP activation.