This article introduces a distinctive approach in the field of policy studies. In so doing, it attempts to show how functional change and policy change are mediated through discursive change. For this purpose, the hypothesis of a re-orientation of state functions in the transition from Fordism to Post-Fordism is introduced and further investigated by re-conceptualising it as a policy change in the field of labour market policies (LMPs). By focusing on two case studies regarding the implementation of active and activating LMPs, I will take a closer look at the adoption of these approaches in Germany. More precisely, the associated political discourse is examined in order to highlight the accompanying ‘economic imaginaries’ and their role in legitimising the aforementioned approaches. I find that such discursive changes are of crucial importance since they represent competing guidelines for political actors in search of solutions to emerging problems.