Effect of Active Labour Market Policy Expenditure and Education on Long-term Unemployment and Comparison of Selected Czech Regions in 2006-2016

The aim of the bachelor thesis is to analyze the effect of the expenditures of the active labour market policy (ALMP) and the level of education within long-term unemployment. The analysis and subsequent comparison took place in selected Czech regions in 2006-2016 on the basis of the data of the Ministry of Labour and Social Affairs. The theoretical part deals with the labour market, unemployment, human capital and the active labour market policy. The practical part analyzes the expenditures of the active labour market policy and the level of education reached by the unemployed in the context of long-term unemployment. In addition, the thesis analyzes the three main ALMP measures: retraining, community service and socially beneficial jobs in terms of expenditure, number of job seekers and average expenditure per person. The results of the analysis are then compared in selected regions. Both the analysis and comparison confirm the hypothesis that a higher level of education is more efficient against long-term unemployment than higher ALMP expenses. Increasing ALMP expenses can not manage unemployment in the long term. On the other hand, investing in human capital by means of a higher level of education is a much more efficient measure against long-term unemployment. The most endangered group among the unemployed are undergraduate people, while the least endangered are those with a university degree. The conclusion of the thesis thus results in an assessment of the current situation and offers a new way of solving the problem of long-term unemployment.