Trends in PES: Insights from the 2025 Capacity Report

Public Employment Services (PES) are increasingly adopting digital tools for jobseeker registration, vacancy matching and satisfaction monitoring to respond to an older client base, shifting labour market conditions and organisational challenges. They are also adopting skills-based approaches, particularly in client profiling. Furthermore, most PES are involved in the management, coordination, and delivery of the reinforced Youth Guarantee (YG), with involvement increasing since 2023 across various phases of its delivery. In particular, involvement has grown in profiling and outreach, alongside labour market analysis to identify obstacles faced by young people entering the labour market.

Alongside these trends, institutional change is under way. During the review period, 56% of PES (18 out of 32) have implemented substantial reforms such as internal restructuring of services and efficiency of processes, improving labour market information systems or introducing new tools for specific target groups as well as shifts towards greater autonomy or decentralisation.

Key insights

Drawing on extensive data collected from PES Network members, the analysis of PES capacity, reforms and trends in Europe reveals a landscape marked by both significant advancements and persistent challenges. Key takeaways from the report:

• The PES client base is changing, even as overall jobseeker numbers remain stable. While registered jobseeker totals were broadly unchanged in 2024, the composition of clients has shifted. The share aged 55 and over has risen, tertiary education attainment among clients has increased and the proportion who are women has increased slightly. These shifts affect how PES assess, profile, match, and develop skills.
• Digitalisation and the use of AI are expanding, but implementation remains uneven across services. PES continue to digitalise core services such as registration and vacancy matching, and 63% of PES report using AI for profiling or matching.
• PES are strengthening skills-based approaches and their role in delivering the reinforced Youth Guarantee. Many PES are identifying skills needed for the green transition and linking these insights to training provision, with 81% actively identifying skills and 72% providing green upskilling or reskilling programmes. Use of profiling tools in the Youth Guarantee context has increased to 97%, reflecting PES efforts to tailor individual support for young people. However, challenges remain, including lack of experience and mismatches between education, skills, and labour market needs.
• Resource and staffing constraints continue to limit PES capacity. While 38% of PES increased staff between 2023 and 2025, 62% reported reductions, and real terms expenditure has declined over the longer term despite a short-term rise in 2024 driven by social benefits.

Further information

Read the 'Trends in PES: Assessment report on PES capacity' report to explore the full analysis.

The PES Network Knowledge Centre and PES Practice database also have a wide range of information and inspiring practices on the organisation and services of Public Employment Services across Europe.

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