Restructuring Welfare Governance
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Restructuring Welfare Governance

Marketization, Managerialism and Welfare State Professionalism

Edited by Tanja Klenk and Emmanuele Pavolini

This innovative book explores the introduction and impact of marketization and managerialism in social policy by adopting a dual perspective, considering both governance and human resources. Welfare governance (e.g. welfare mix, regulation, employment conditions, customer involvement) has changed significantly in the past decade. The editors and contributors collectively assesses these processes not only by comparing different policy fields and countries, but also by taking a close look inside organizations, examining the coping strategies of professionals, and how they adapt to new models of governing welfare organizations.
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Chapter 5: Marketization and managerialization of active labor market policies in a comparative perspective

Bastian Jantz and Tanja Klenk


Since the early 2000s, a reorientation toward activation has taken place in labor market policies of most European countries. This paradigm shift has changed the objectives of labor market policy from income protection to labor market integration. In addition, the governance of unemployment policy has become subject to reform as well. In this respect, privatization and contracting-out have been developed as the most salient modes of governance, characterizing the rearranged organizational landscape of labor market service delivery (van Berkel et al. 2011; van Berkel et al. 2012). Most Western European countries have long traditions of employment service provision by public bodies and non-profit organizations, but not by for-profit organizations. In order to achieve greater efficiency and effectiveness in the provision of employment services, many governments have changed the traditional hierarchically structured employment services and encouraged ideas of contestability, marketability, and partnerships with private actors. Increasingly, the central state has been withdrawing from direct provisions of employment services, instead favoring market orientated forms of intervention (Sol 2010). The objective of this chapter is to provide a critical overview of this trend, thereby focusing in particular on the effects that privatization and contracting-out has for both users of the services and the employees working in the marketized service providers.

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