The Public Employment Service in a Changing Labour Market

Citation

Thomas, B. (2001), "The Public Employment Service in a Changing Labour Market", International Journal of Public Sector Management, Vol. 14 No. 6, pp. 522-525. https://doi.org/10.1108/ijpsm.2001.14.6.522.2

This book examines the role of the public employment service (PES) in developed economies and how it is responding to a changing environment. It is an authoritative account from the ILO, based primarily on studies of 12 countries, but also drawing on wider information. The book takes as a context the key changes in labour markets that have occurred over the last two or three decades. These result, for example, from broad trends such as economic liberalization and globalization, and the consequent growth in market forces (which affect labour markets as well as capital markets), and the developments in information technology and the knowledge economy. These changes have brought changing occupational structures, more flexibility and job changes, increasing need for life‐long learning and other changes all placing new demands on the PES.

An historical overview of the development of the PES and an account of how resilient they have been in many countries to the changing conditions is followed by an examination of the chief roles of the PES. These are seen as job broking, provision of labour market information, management of labour market adjustment programmes (which have become more significant with the widespread move from passive to active labour market policies), and administering unemployment benefits and the provision of specialized services for certain target groups.

The book then deals with the management and pannership challenges the PES faces and how the service might evolve in future. “The biggest challenge facing the PES on its path to modernization is to answer the following questions: How great is its capability? How best can it fulfil its enlarged role? Can it match its role to its capability?” (p. 39). These questions require identifying the trade‐offs and finding the best balance between many conflicting demands. Examples of these conflicts are equity versus efficiency in service delivery, centralization (for a coherent national policy) and decentralization (for more effective management), self‐help facilities versus intensive services to disadvantaged groups, direct provision of services versus outsourcing, competing with versus cooperating with private agencies. These and many other matters are explored in a wideranging and insightful examination of the PES. It is acknowledged that some of the tradeoffs identified have no ready answers.

A number of conclusions are presented. First, there is a need for adaptability (perhaps learning from private sector agencies which have typically demonstrated more flexibility) while preserving organizational stability. Second, there is a need to win the confidence of government because of the predominant importance of government funding in most countries, though it is also crucial where there is private insurance funding. Third, it is important to integrate the various functions of the PES and to develop relations with a wide range of partners (exercising a leadership role where appropriate). Finally the case is argued for developing a new kind of service enterprise as an organization that is centrally placed in the market. In this way the PES is “very different from most civil service work; it is more like that of a business enterprise than a traditional civil service bureaucracy” (p. 163). Much of the discussion will have wider relevance than just the PES as many areas of public sector management face similar challenges.

Two aspects of the book could perhaps have been given greater attention. The first is the rationale for the PES. The principles underlying government intervention in the labour market receive scant treatment, as do the principles which might inform the overall scale of PES activity. The matter is to some extent side‐stepped with the assertion that “there is no correct level for the PES resourcing” (p. xvi). Whilst there is exploration of the efficiency and effectiveness of the PES, there is less consideration given to appropriate scale especially in relation to private agencies. Second, more weight could have been given to the vital question of the evaluation of PES activities. The reviews of what does and does not work are rather brief.

These points should not however detract from the general range and quality of the contents. This is an admirable book. It is directed at PES practitioners, policy makers, and government officials, but it will in fact be of considerable interest to a wider group including academics who have an interest in public sector management and/or the delivery of labour market policies and services. In addition to the informed discussion throughout the text there is a wealth of information on the PES, including many useful annexes (which comprise about one‐third of the book) such as six pages of key Web sites, and numerous examples of PES innovations and good practice from many countries.