AbstractIn the past decade, active labour market policy (ALMP) has become a major topic in comparative social policy analysis, with scholars exploiting cross-national variation to seek to identify the determinants of policy development in this central area of the ‘new welfare state’. In this paper, we argue that better integration of this policy field into social policy scholarship requires rather more critical engagement with considerable methodological, conceptual and theoretical challenges in order to analyse these policies comparatively. Most fundamentally, rather more reflection is needed on what the substantially relevant dimensions of variation in ALMP from a social policy perspective actually are, as well as enhanced efforts to ensure that it is those that are being analysed and compared.