This article discusses recent debates on ‘activating’ labour market policies in light of German reforms since 2003. Beckian and Giddensian theories of modernity, political economy, and the governmentality school all argue within a common paradigm of individualisation, assuming the ‘responsibilised’ and isolated individual to be the focal point of activation policies. This paradigm is questioned, as the exclusive focus on the individual obscures something else, namely that ‘activation’ policies can also be seen as contributing to a dynamic of dividualisation, i.e. of making the subject of labour power fundamentally divisible. It is demonstrated that in the recent German reforms, dividualisation provides an organising logic pervading the instruments of activating labour market policies and the ways in which they are articulated in a policy programme. It is concluded that dividualisation, particularly evident in the German case, may provide a useful frame for analysing labour market reforms in other advanced capitalist economies.