Mainstream economists argue that unemployment must be tackled with ‘flexibilisation’ or ‘labour market deregulation’. The public policy application has been the principle of ‘flexicurity’, with mixed labour market outcomes and limited success. Central contributions to theoretical and empirical economics writing on unemployment issues still espouse ‘flexibilisation’ as a general approach and warn about the detrimental effects of systematic deregulation under expectations of outcomes such as lower unemployment. Departing from a review of this literature, we take a step further from the ‘flexicurity’ prescription, to follow the capabilities approach of Sen and others, and develop a concept of social capabilities – based flexicurity for a learning economy, arguing that labour market performance must be targeted in an approach that includes a strong commitment to social well-being.

Sweden has adopted an Active Labour Market Policy as a means of transitioning out of the economic crisis created by the 2020 COVID-19 pandemic. The approach is to a significant extent reminiscent of that adopted following the 2008 Global Financial Crisis (GFC). The article examines the effectiveness of active labour market policy in Sweden over the period 2007–2012. By analysing these earlier policy outcomes, the aim is to assess the success of active labour market policy more broadly. The hypothesis that greater labour market flexibility allows the labour market policy to be more efficient is evaluated. With a focus on the labour supply, possible reasons for the reduced efficiency of state interventions are outlined using regression models. Conclusions derived from the models point to the failure of earlier Swedish active labour market policy towards the vulnerable groups of the unemployed, unemployed women and men aged 15–19 years and the long-term unemployed.

Under the heading of flexicurity, Danish labour market activation policies are receiving international attention because of their perceived ability both to curb unemployment and to boost employment. Indeed, the objectives, target groups and design of activation policy have undergone a remarkable transformation over the past fifteen years. From the initial curbing of unemployment among the insured unemployed through standard activation offers, the aim today is also to increase labour supply among non-economic active groups using individually tailored programmes. Danish activation policies thus embrace not only active labour market policies but also social and integration policies. Despite widespread popularity and belief in the positive effects of activation, little is actually known about its overall impact on the Danish economy.

There is significant variance in the strategies of labor market flexibility under the same pressure of globalization. This article attempts to explain that variance by examining closely the Korean case, with particular attention to the response of labor, one of the most intractable actors in the reform process. After theorizing the nature of social welfare as a quasi-collective good and hypothesizing labor's responses based on Olson's theory of collective action, the study seeks to explain Korea's low commitment to flexicurity and the resultant dualism in the labor market. The core argument here is that the collective action problem among atomized corporate unions has led to high employment protection for regular workers in big business at the expense of marginal workers without appropriate social protection.