Public Employment Services: Core Tools Supporting Labor Market Development

What are public employment services (PES)?

Public employment services (PES) are government entities that help job seekers find work and employers connect with qualified candidates. As such, PES facilitate labor market development at national, regional, or local levels, by providing information, job intermediation, and targeted support to workers and firms. In many countries, unemployment benefits and other cash support are linked to the PES provision and active job search.

In developing countries, PES contribute to more efficient, inclusive, and resilient labor markets by improving access to opportunities, reducing frictions, and enabling better matches between skills and jobs. PES also often administer or coordinate access to cash benefits and social protection for those seeking support.

• Ten Country Cases to Inform Reforms in Developing Countries

How do PES deliver?

There is no single PES model that fits all countries. Governments can strengthen public employment services to improve employment outcomes, enhance service delivery, and use public resources more effectively. Successful reform builds gradually along the service delivery chain and aligns services with labor market demand and institutional capacity.

Typically, there are three major PES delivery models:

• Quasi-markets - almost all employment services for job seekers are outsourced to private providers.
• In-house - delivery of employment services is mostly centralized and provided by the PES itself.
• Mixed - mixed public and private delivery of employment services.

Learn more: Different Approaches in Delivering Employment Services and Setting Private-Public Partnership: The Cases of Australia, Germany, and The Netherlands show how these three delivery models are present in mature PES across the world.

Explore best practices in seven European countries for upskilling, reskilling, on-the-job training, apprenticeships, work experience programs, TVET, digital skills training, and online training.

Delivery models usually include intake and profiling of job seekers; job matching with vacancies sourced from employers; and the provision of, or referral to, active labor market programs (ALMPs).

Explore our Public Employment Services Review Database of the structure and delivery chain across 11 countries

PES delivery chain

• Introduction-Design 
• Outreach and Intake
• Assessment & Enrollment
• Provision of Benefits and Services 
• Intermediation Services 
• Monitoring & Evaluation

How are public employment services financed?

Funding is often designed to spread costs across society while ensuring stable resources for employment support. PES typically need funding for several broad functions from administrative costs to running training and active labor market programs, and maintaining digital systems such as job portals.

Explore a database of the funding models used across 12 countries