Surmountable Hurdles? Employers’ Perception of the Long Term Unemployed and Labour Market Interventions

Abstract

Over the last few years, most OECD countries have extended their activation policy to new groups of non-working people, including the long term unemployed (LTU). However, it is known that LTU people tend to be regarded as potentially problematic persons by employers. This is likely to constitute a major obstacle for long term unemployed jobseekers. On the basis of a survey among employers in a Swiss canton (N=722), this paper aims to shed some light on the perception employers have of the long term unemployed and whether may matter for recruitment practices. It also asks what, from the employer point of view, may convince them to take the risk of hiring a LTU person. Key findings: Large companies are more likely to use long term unemployment status as a discriminating factor. More likely to hire LTU people seem to be employers who are aware of some of the problems this group may have (low productivity) and who are used to work with the employment agency. Finally, a test period or the recommendation of a trustworthy person are seen as the factors most likely to facilitate access to jobs for LTU people.

Keywords: long term unemployed, recruitment, active labour market policies

JEL Classification: J69