The US employment promotion system

Elements of activation can be found in several different programmes of the US employment promotion system. Activating labour market policy27 is primarily realised through four programmes (1) unemployment insurance (UI), (2) welfare, (3) workforce development programmes and (4) federal and state tax incentive programmes.28 

The UI system in the US is a federal-state partnership29 including regular UI benefits, a federal-state Extended Benefit Program, and state supplemental benefit 

23 Only 32% of all unemployed were beneficiaries of a state UI program in the second quarter of 2006 (USDOL 2006). 

25 Competitive advantages were discontinued by the Deficit Reduction Act of 2005, P.L. 109-171 WIA and the Food Stamp regulations still grant competitive incentives. 

26 PRWORA requires what is called maintenance of effort spending levels by the states they must spend at least 75% of their 1994 AFDC share for TANF-related benefits, services or supportive services, on top of their federal TANF block grant. 

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