The first active labour market policy measures date back to 1951 with the creation of the Rehn-Meidner model in Sweden developed by two economists from the social democratic trade union movement to modernise post-war Swedish industry and enhance productivity by combining a unified wage policy of solidarity which, as it progressed centrally, eliminated the least competitive industries among the country while offering a substantial retraining package to the workers thus laid off so that they could join the more modern and efficient industries.
The first active labor market policies were implemented in 1951 with the Rehn-Meidner model developed by economists from the social democratic trade union movement to modernize post-war Swedish industry and enhance productivity through a unified wage policy that eliminated less competitive industries while offering retraining packages for workers displaced.