The study debates on active labor market programs (ALMPs) as a valuable employment policy tool intended to increase the quality of labor supply, and demand, versus the disincentive, and dependent passive measures in combating unemployment. While ALMPs have been implemented to varying degrees in East Asia, they still cannot be considered an important policy instrument; yet, careful consideration by policymakers to such programs, could prove responsive to the economic crisis, and to the longer-term requirements of development. An overview of ALMPs is provided, with key issues reviewed for design consideration. The study discusses the techniques used to evaluate ALMPs, and summarizes the evidence on their impacts, identifying key variables associated with successful outcomes in the region. Recommendations suggest the following issues for the formulation of an active labor market policy: setting priorities, by initially developing strong employment services; identifying the roles of the public, and private sectors, which leads to more diverse, innovative, and cost-efficient services, closely oriented to labor demand, but focused on public priorities; promoting partnerships, and dialogue within coordinated policies, and strengthened administrative and operational capacities, provided a balanced public, and private financing is in place.
