8. Expenditure on LMPs and unemployment in the EU - Chart 8

The figure below shows that there is no clear relationship between spending on labour market policies (LMPs) and unemployment rate. In effect, some countries with both active and passive LMP spending above the EU28 average – such as France, Ireland and, above all, Spain – experienced rising unemployment, while other countries with low spending – such as UK and most CEE countries – maintained low unemployment rates. In general, it can be noticed that all countries with high ALMP spending and low unemployment rates are coordinated market economies, while those with low ALMP spending and low unemployment rates are either liberal market or transition economies.