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Reforming Employment Services: Three Steps to Big Change

Jacqueline Mazza's picture
Increasing the number of jobs publicly listed, enabling public and private institutions to better connect workers to jobs will not likely solve the jobs problem in developing countries. (Photo: Jonathan Ernst / WorldBank)


With the right kind of reforms, public employment services can do a better job of matching job seekers from poor households. In low and middle-income countries, individuals from poor households find jobs through informal contacts; for example asking friends and family and other members of their limited network. But this type of informal job search tends to channel high concentrations of the poor individuals into informal, low-paid work.

Job seekers especially from poor households need bigger, more formal networks to go beyond the limited opportunities offered by the informal sector in their local communities. This is where public employment services can help, but in developing countries many of these services just simply do not work well: they suffer from limited financing and poor connections to employers, and governments are looking for ways to reform and modernize them to today’s job challenges.

There are lots of cases where developing countries have improved their public employment services and these can serve as models. The lessons from these successful reforms can be distilled and replicated. Based on our recent publication, here are three case-tested strategies that improved the performance, relevance and image of public employment services.