Transitional Labour Markets (TLM) - defined as legitimate, negotiated and politically supported sets of various employment options in critical events over the life course - are an essential ingredient of modern full employment strategies. After assessing the European Employment Strategy, this book offers a detailed comparative analysis of employment performance for selected European member states and the United States. It suggests that successful employment systems arise from a new paradigm of flexibility and security ('flexicurity') the balance of which varies according to countries' institutional paths. Whilst there is no 'best practice', TLM theory does provide normative and analytical principles that can be generalised for various institutional settings. The book also provides good practice examples for managing critical transitions over the life course - from education to employment, from one job to another, from unemployment to employment, from private activities to gainful work and from employment to retirement - and develops the contours for extending unemployment insurance to work-life insurance.With a fresh and new approach to the question of full employment in modern society, this book will appeal to academic scholars interested in labour market and employment policies, and policy decision makers at local, regional, national and European levels.