Short description: Overall objective: to increase the efficiency of labour market programmes through piloting and testing of new approaches to redeployment and provision of services for unemployed persons in pilot areas (focus on employment promotion and increased cost-efficiency of employment programmes). Specific objectives: 1. Capacity building in public sector in order to establish balance between social aspect and fiscal sustainability (return to the labour market) 2. Monitoring and evaluation of different pilot interventions (indicators – number of service beneficiaries, number of new workplaces, etc.). Components: 1. Draft Redeployment Programme 2. Piloting of reforms in PES 3. Monitoring and evaluation of the labour market

  Achieved results: Component 1: - 9 Transitional Centres were established; - 12,000 workers were polled (programmes were developed to meet their specific needs); - 8 enterprises were given permission and funds for innovative social plans; - framework study on local economic development, made by WSI, was adopted by the representatives of local authorities. Component 2: -10 innovative job fairs and round tables for employers were organized in order to boost cooperation among NES, educational institutions and employers; - workshops – active job search organized in 4 pilot Branch Offices of the NES; - Job Clubs equipped and NES staff trained to work with risk groups and redundant workers; - NES staff trained in subcontracting and handbooks developed; - 10 intensive trainings in SME development, entrepreneurship and incubators; - 4 clusters formed and members trained (3 – agriculture, 1 – textile); - three agricultural associations established in Lazarevac; - Financial partnership established between WSI and the Ministry of Agriculture (brand “kajmak” was established); - one Incubator was established in July 2006; - Agricultural Incubator (initiated by WSI) in Lazarevac was awarded World Bank donation. Component 3: - Study on redundancy monitoring; - Technical support to the Information and Result Management System; - Evaluation of effectiveness of active labour market programmes.