THE IMPACT OF ACTIVE LABOUR POLICIES ON ECONOMIC GROWTH

Abstract

This study aims to analyze the mechanisms of active labour market policy in the case of Kosovo and the impact on reducing the unemployment rate and increasing employment. This research is descriptive, analytic, and exploratory. The data used are secondary data in the quarter for the period 2016–2020, which are provided by the Kosovo Agency of Statistics. The study uses the OLS (ordinary least square) econometric model and Pearson correlation in order to assess the impact of unemployment and employment rate on Kosovo’s GDP (gross domestic product). The paper concludes that Kosovo has approved a large number of programs for the activation of the unemployed, mainly young people, but generally young university graduates are in a higher structure and rate in the composition of the unemployment rate. It is generally accepted that university graduates as workforce are the key driver of economic growth and development (Ziberi, Rexha, & Ukshini, 2021). This allows us to come up with further recommendations, such as the active policies in labour market in the case of Kosovo to be designed in the future based on a cost-benefit perspective and in order to measure their effectiveness.