Nearly 2% of EU-27 gross domestic product spent on labour market policies in 2006

In 2006, the European Union countries spent 1.9% of GDP on Labour Market Policy (LMP) interventions. LMP interventions are used to activate and support the unemployed and other disadvantaged groups in the labour market. Of the total expenditure on LMP, 57% was spent on unemployment benefits, more than 26% on active LMP measures, and 11% on LMP services for jobseekers. Looking at expenditure for active LMP measures only, training interventions still account for more than 41%, but employment incentives are increasing in importance (24%). The statistics shown are based on Eurostat's LMP database which collects information on labour market interventions implemented by the EU Member States and Norway. LMP interventions are classified into three main types - services, measures and supports - and into nine detailed categories according to the type of action.