In this chapter, a new framework is put forward for the design of effective activation policies to connect people with jobs and foster more inclusive labour markets. While activation policies draw on many tools that can be assembled in different ways, the overall package needs to maintain the motivation of jobseekers to actively pursue employment while also improving their employability and expanding their opportunities to be placed and retained in appropriate jobs. The implementation of these three elements – motivation, employability and opportunity – has to be managed by effective and efficient labour market institutions and policies, which are the keystone of any successful activation strategy. These principles are illustrated in the chapter through a review of a wide range of policy experiences and evaluation evidence.