International Experience with Worker-side and Employer-side Wage and Employment Subsidies, and Job Search Assistance Programmes: Implications for South Africa

The purpose of this international policy review is first to provide a summary of international experience with labour market interventions that were developed with the intention of improving employment, particularly among disadvantaged job seekers. The specific interventions that will be considered here are firm-side wage and employment subsidies, worker-side wage and employment subsidies, and job search assistance programmes. A second purpose is to assess which policies are particularly relevant for application to South Africa’s unique labour market situation. Because many countries have become increasingly interested in providing active support for unemployed individuals to encourage rapid re-employment, there are numerous recent policy examples from which South Africa can learn.