Public Employment Services urged to boost response to labour market shocks through better delivery capacity, say IDB, OECD, and WAPES

9 June 2026 – As global shocks become more frequent, public employment services (PES) can help build more resilient labour markets by connecting workers to jobs and supporting businesses. But unlocking this potential will require closing persistent institutional and capacity gaps.

According to the new World of Public Employment Services 2026 report, which looked into 78 public employment services in 75 countries countries, just 38% of countries surveyed provide the full portfolio of public employment services, including both income support and labour market programmes, underlining a persistent gap between expanding mandates and delivery capacity at a time of increasingly frequent labour market shocks.

PES are uniquely positioned to respond at every stage of labour market shocks. By absorbing immediate impacts through income replacement and job retention schemes, supporting recovery through rapid re-employment and short-term training, and enabling long-term transformation by aligning skills with structural change, they are uniquely placed to drive stronger labour market resilience.

Although public employment services have made strides in digital transformation, it remains uneven across services and regions. While around 40% of PES report having a data strategy, only 31% have translated their goals into performance indicators and measure them. Emerging technologies such as generative artificial intelligence could increase service capacity, yet adoption remains limited, with only 4% currently using AI-enabled tools such as chatbots.

PES are now taking on a growing role in implementing labour migration policies and connecting migrants with jobs. Around 74% now provide services related to migration planning, international mobility or migrant integration, an increase of 29 percentage points over the past decade. These services need to be strengthened to establish stronger data collection, tighter collaboration between PES across countries, and better collaboration with private employment agencies and recruiters.

Additionally, to expand capacity and improve outreach, PES are increasingly working with partners in the Social and Solidarity Economy. These organisations such as social enterprises and co-operatives are helping to deliver core employment services, strengthen employer links and reach disadvantaged and hard-to-reach groups. Nearly half of PES report that such partners provide placement services, while just under 70% rely on them for training provision, highlighting their growing importance in addressing inequality and improving labour market integration.

The Inter-American Development Bank (IDB), the Organisation for Economic Co-operation and Development (OECD), and the World Association of Public Employment Services (WAPES) call for more proactive, connected and accessible PES systems. This includes strengthening engagement with employers, expanding outreach to underserved populations including through partnerships with social economy entities, investing in staff and digital capabilities and improving co-ordination with social protection systems.

Strengthening the capacity of public employment services will be critical to ensure that they can turn their mandates into reality and help jobseekers and employers navigate an increasingly uncertain and rapidly changing world of work.