Challenging PES environment drives collaboration with employers

The PES Network’s eighth annual Assessment Report on PES Capacity reviews trends and provides key data on Public Employment Services in 2022, in terms of institutional set up and partnerships, resources, services, and strategic objectives.

The report emphasises that the PES environment in 2022 was one of continuous change, including challenges related to COVID-19, labour and skills shortages, threats of large-scale unemployment and business closures, and the support to displaced people from Ukraine.

The measures introduced by Member States to mitigate the impact of COVID-19 on employment have eased capacity pressures on PES as Europe emerged from the crisis. PES overall have a broad set of measures at their disposal to meet these challenges. While fewer new interventions were introduced compared to earlier years, PES made more amendments to existing interventions, mostly aimed to make measures more accessible by widening eligibility. Digital service delivery is becoming a permanent feature in basic services (such as registration) as well as in the delivery of counselling and training.

In response to upcoming challenges, many PES have strengthened their relationships with employers. About half of PES have involved employers in the development of recovery plans and services, whilst several also highlighted that the removal of lockdowns and the rise of labour market shortages motivated more intensive contact with employers.

PES cooperation with municipalities for the implementation of services can now be considered a standard practice across the PES Network, whether in ad hoc or more structured formats. Another trend is that nearly 75% of PES reported turning to outsourcing in order to mobilise the expertise or qualifications necessary for tasks including training, counselling, coaching and accompaniment.

The war in Ukraine and the  support to displaced people from the conflict further impacted PES in the preparation and implementation of their strategies in 2022. Some PES expected further changes in their annual objectives and targets, whilst several introduced measures such as adaptations in legislation, updated registration arrangements or specific action plans.

Finally, the report shows that while PES expenditure increased again, more than half of the PES saw their staff numbers decrease between 2021 and 2022.