Developing the EU-ALMPO Analytical Framework
Analytical frameworks are widely used to structure reasoning in a clear and coherent manner. By drawing on shared categories and conceptual dimensions, they facilitate the understanding of complex phenomena and enable evidence to be assessed consistently across different contexts. For these reasons, such tools are particularly valuable in the field of public policy, where issues often span multiple institutional levels and territorial settings, and where consistency must be maintained alongside diversity in design and implementation.
Against this background, the development of a unified reference model represented the main deliverable of Work Package 1 (WP1) within the EU-ALMPO project, carried out under the responsibility of IRS – Istituto per la Ricerca Sociale. This work constituted a foundational step for subsequent activities, aiming to consolidate a common perspective on the relationship between skills mismatch and Active Labour Market Policies (ALMPs).
Skills mismatch is conceptualised here as a structural labour market friction, arising from persistent discrepancies between the supply and demand of skills. Given the multidimensional and locally contingent nature of this challenge, its examination requires an approach capable of capturing interdependencies, cross-country variations, and the interplay between policy instruments and labour market dynamics.
Building on this exploratory need, the model draws on the preparatory study developed within the project, notably the Key Trends and Factors Report and the Determinants of Effective ALMPs Report. These outputs provided both the conceptual underpinnings and the empirical foundation informing its development, thereby ensuring continuity with earlier steps and establishing a benchmark for the research undertaken under WP1.
On this basis, the resulting conceptual structure is intended primarily as a guidance for boh for policy design and evaluation. On the one hand, it provides a coherent grounding to support the design or revision of policy measures aimed at enhancing skills alignment in the labour market. At the same time, it offers an organised perspective for investigating existing ALMPs systems and identifying strengths, gaps, and areas for improvement. In this sense, it operates less as a prescriptive instrument and more as an interpretative lens to inform decision-making at EU, national, and local levels.
Structure and internal logic
The model follows a sequential and problem-oriented line of reasoning, starting by framing skills mismatch as a central issue within the broader set of labour market frictions. It then examines how ALMPs can contribute to addressing these imbalances, while recognising the diversity of such policies in terms of objectives, instruments, and target populations. This variety makes it necessary to clarify the scope of ALMP-related action and its interaction with other policy areas that may influence skills alignment more indirectly.
In particular, the overall structure is articulated around four main components:
- labour market frictions, skills mismatch, and the role of ALMPs;
- the scope and objectives of ALMPs in relation to skills mismatch;
- the definition of target groups;
- the key determinants of ALMP effectiveness.
These components are complemented by two transversal dimensions that cut across the entire framework. The first concerns trends, understood as the broader dynamics shaping skills supply and demand over time. The second relates to factors, referring to the institutional, organisational, and operational conditions under which ALMPs are devised and implemented.
Across all components, a common internal configuration is applied. Each section, indeed, introduces the relevant context and underlying rationale, identifies the key elements to be considered, and discusses their implications for policy formulation, analysis and evaluation. This methodology allows the model to move beyond a purely descriptive account, highlighting the connections between different elements and their relevance for understanding and addressing skills mismatch. To support interpretation, a visual representation was developed, illustrating the sequential arrangement of the model and the relationships between its main components (see figure below).
Figure 1: visual representation of the EU-ALMPO Analytical Framework
Taken together, this conceptual architecture provides a coherent reference for interpreting the diversity of ALMP approaches and their relationship with skills mismatch, while helping to maintain a consistent perspective across policy domains. On this foundation, the model offers a structured yet flexible foundation for reflection and analysis.
Validation and refinement through stakeholder engagement
A key phase in the development of the analytical framework involved validation through stakeholder engagement. Following its construction by means of desk research and literature review, the model was discussed during an online workshop held on 26 September 2025, bringing together representatives and experts from European Member States and project partners. This exchange provided an opportunity to confront the preliminary configuration with policy-making experience and practical considerations.
The workshop was conceived as a space for reflection rather than formal endorsement. Participants were invited to comment on the clarity, coherence, and relevance of the proposed framework, as well as on its potential applicability across different implementation contexts. Insights emerging from the discussion contributed to refining the structure and strengthening its internal consistency, helping to consolidate it as a usable and credible reference for subsequent project activities.
Linking the framework to the AI-supported Wizard
The analytical framework is further elaborated through an Appendix entitled “Implications and suggestions for the future development of the AI tools”, which addresses the challenge of operationalising the conceptual architecture within the practical functioning of the AI-supported Wizard developed in this context.
While the model systematises key concepts, relationships and analytical dimensions, the Wizard is conceived as a service-oriented instrument whose effectiveness ultimately depends on its uptake by policymakers and practitioners. Drawing on service design and public service logic perspectives, the Appendix examines how users may interact with the broader EU-ALMPO infrastructure, illustrating potential usage scenarios and identifying critical touchpoints across the different stages of policy formulation and implementation.
In doing so, it shows how the framework can inform both the initial configuration and the iterative refinement of the Wizard, reinforcing its role as a shared structural backbone for the overall project.