Prevention approaches and services vary around the world, reflecting different levels of socio-economic development, policies and legal frameworks.
As social security institutions are responsible for the provision of unemployment benefits, they have a strategic interest in contributing to employment and efficient labour markets. However, all too often, their main focus remains on providing compensation reactively rather than on actively engaging in preventing the need for compensation in the first place.
A key asset of social security institutions and public employment services is the detailed data they hold on the unemployed, and this can play an important role in the preparation of either general or targeted active measures at the sectoral or regional level, or for certain more vulnerable groups of workers. They can point to trends in areas of growing demand that can inform the availability of training to increase the supply of labour. Conversely, they can provide an early warning of areas in decline and workers at risk of losing their jobs, which will require attention.
By including all relevant stakeholders, such as the social partners, educational and training partners, government authorities and labour experts, social security institutions can foster a proactive culture and the development of measures that will actively seek to improve outcomes for the individual and the enterprise, reduce dependency and contribute to economic growth at the national level.
These guidelines will result in the competent institutions taking preventive measures to avoid unemployment to reduce the need for financial benefits and reintegration services in the long term while promoting more sustainable careers and a more inclusive labour market.