Nordic labour market policies in transition

This article provides an overview of the Nordic labour market policies targeted to promote employment and reduce open unemployment since the early 1980s. Applying a disentangled approach, the goal is to analyse the policies of stimulating employment, the policies of influencing labour supply and, finally, active and passive labour market policies. It is argued that the employment crises of the early 1990s were mainly caused by domestic factors and, partly as a way to react to the challenge, the Nordic countries learned to use labour force supply as a policy instrument to combat unemployment. Additionally, the Nordic countries choose different ways to adapt to the imperatives of the globalised economy, hence, at the beginning of the new millennium, Nordic labour market policies are in flux.