Communication from the Commission - 'Modernising public employment services to support the European employment strategy'
Date: 1998-11-13
Institutions: European Commission
Subjects: EU action, EU employment policy, employment service, labour market, public service

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  13.11.1998 

COM(1998) 641 final 

COMMUNICATION FROM THE  COMMISSION 

"MODERNISING  PUBLIC  EMPLOYMENT  SERVICES 

TO SUPPORT  THE EUROPEAN  EMPLOYMENT  STRA  TEGY" 

Executive  summary 

While  Member  States  remain  responsible  for  employment  policy,  including  organising, 
staffing  and running their Public Employment Services (PESs), this Communication  calls 
for concerted action on modernising the Public Employment  Services as a contribution to 
the European employment  strategy. PESs have an important role to play in implementing 
the  strategy,  with  100  000  employees  providing  information,  brokerage,  and  market 
adjustment  services to,employers.and jobseekers  in more than ,5000 locations  throughout 
the Union. PESs help to make the labour market operate.more efficiently  by creating  the 
link  between  the  market  and  the  people  seeking  work.  Their  contribution  in  terms  of 
matching  demand  and  supply  will  remain  of  great  importance  in  the  decades  to  come, 
particularly  as labour shortages emerge with the decline in the population of working  age 
in various regions of the European Union. 

The  1998 National Action Plans for Employment confirm that the PESs have a major  role 
to  play  in  all  Member  States  in  implementing  to  the  Employment  Guidelines  -  even  a 
central one as regards the preventive strategy of offering  a new start before  six months of 
unemployment  for  young  people,  and  before  twelve  months  for  adults.  These 
responsibilities  will  require  a  serious  effort  by  the  PESs  themselves  as  well  as  by 
Member  States  to  develop  the  efficiency  and  effectiveness  of  the  PES.  They  also  give 
added urgency to the current reforms  in most Member  States aimed at adapting the PESs 
to operate in a new and rapidly changing labour market environment. 

Member  States  should  create the right  conditions  for  the PESs to work  more  effectively. 
in a market with a growing number of employment  service providers. The aim should  be 
to  help  them  access  a  sufficient  number  of  job  vacancies,  develop  systematic  case 
management  procedures  for  all  registered  unemployed jobseekers,  and  play their  part  in 
the  co-ordinated  delivery  of  all  public  services  to jobseekers  with  the  ultimate  aim  of 
getting people back into work. 

Within  the  framework  set by  their  governments,  PESs  should  make  a constant  effort  to 
improve-the  quality  of  their  services  to jobseekers  and  employers,  make  better  use  of 
modern  information  and  communication  technology,  and  develop  strong  partnerships 
with  other  actors  in the  labour  market  (e. g the  social  partners,  local  authorities,  benefit 
agencies, education and training providers). 

The  social  partners,  at  local,  regional  and  national  level,  need to  develop  their role  as  a 
full  partner  of  the  PES,  creating  a  link  between  their  human  resource  policies  and 
activities  and the work  of the  PESs, so  as to  find  a closer match  between  labour  supply 
and demand. 

The  European  Commission  will  encourage  the  process  of  modernisation  under  the 
European  employment  strategy.  It  will  ensure  that  due  attention  is  given  to  the 
institutional  framework  for  implementing  policy  within  the  cycle  of  formulating  and 
updating  the  Employment  Guidelines,  and  establishing  and  implementing  the  National 
Action  Plans.  It  will  support  co-operation  between  PESs  across  Europe  in  order  to 
facilitate  exchanges of information  and best practice on operational  issues and to develop 
common  activities at EU  level.;  It will work to further  develop the EURES network  as a 
key instrument for European labour mobility. 

The  current  revision  of the European  Social  Fund  regulation  will  enable  resources  to  be 
focused  more  on  the  objectives  of  the  European  employment  strategy.  Modernising 
employment  services  and  making  them  more  efficient  are  among  the  activities  eligible 
for ESF financial  support. 

1. 

Introduction 

As a result  of the Amsterdam  Intergovernmental  Conference  of June  1997, the  European 
employment  strategy  is  now  embedded  within  the  new  Treaty.  The  first  Employment 
Guidelines  -  endorsed  at  the  extraordinary  European  Council  on  employment  in 
November  1997  and  formally  adopted  on  15  December  -  place  strong  emphasis  on 
creating jobs and preventing  unemployment. 

With more than 5000 local employment  offices  throughout the Union, and  approximately 
160 000 erriployees^^some 100 000-of whom directly;service employers and jobseekers), 
Public  Employment  Services  are  a key  institutional  component  of this  new  approach  to 
employment  policy,  and  are  essential  for  its  implementation.  If  Member  States  are  to 
meet the ambitious targets set out in the  1998 Guidelines, the capacity of  PESs may need 
to be increased and ongoing reforms  speeded up. 

The need to strengthen and modernise the PESs has been recognised in the EU for  several 
years. With profound  changes  in the labour market environment,  PESs in every  Member 
State  of  the  Union  are  facing  challenges  which  call  for  a  redefinition  of  their  role  and 
priorities, as well as a rethink of their institutional setting and management methods. The 
emergence of an ambitious European employment strategy only adds to the urgency. 

Optimising the contribution made by the PESs to the employment strategy will depend to 
a  large  extent  on what the PESs do themselves. Many  of them  are  already  engaged  in a 
process of modernisation  in order to improve their performance2.  To further  this process, 
the  heads  of  PESs  agreed  in  1997  to  intensify  co-operation,  exchange  know-how  and 
share  the  operational  experience  they  have  acquired,  with  the  support  of  the  European 
Commission. 

However,  the  environment  within  which  the  PESs  operate  is  largely  determined  by 
governments,  with the involvement  of  other  public  and private  sector  bodies,  including 
the social partners.  So these actors too will  have to play their part. 

This Communication  intends to address the issue of PES modernisation  from  a European 
the  successful 
perspective.  It  seeks  to 
implementation of the European employment strategy. 

institutional  conditions  for 

improve  the 

2. 

The PESs: a key instrument for the European employment strategy 

The  fundamental  aims  of  the  Employment  Guidelines  are  to  increase  employment  and 
reduce, unemployment,  especially  long-term  and youth  unemployment.  These  aims  must 
be  attained  through  co-ordinated  action  in  four  areas:  employ ability,  entrepreneurship, 
adaptability  and  equal  opportunities.  A  substantial  part  of  the  Guidelines  focuses  on 
enhancing  the  functioning  of  the  labour  market.  In  that  respect  Public  Employment 
Services, as central institutions on the labour market, have a major role to play. 

1  Staff  engaged  in the financial  part of benefits  administration not  included. 

2  See Joint Employment  Report  1997, chapter 3.4.2' 

4 

2.1 

The core functions  of the PESs 

While  no  uniform  model  exists  for  how  a  PES  should  be  set  up  or  for  the  range  of 
responsibilities  it  should  have,  the  PES  in  Europe  has  traditionally  fulfilled  three  core 
functions. 

Information:  PESs offer  a unique and usually nation-wide  service as providers of labour 
market  information.  The  information  they provide  includes  extensive  data  on  vacancies 
and potential applicants. They assist people  choosing  a new career, and those wanting to 
re-focus  their  career  perspectives.  They  provide  information  on  training  and  retraining 
opportunities.  They  can  offer  information  on  human  resource  issues  to  employers 
considering  specific  investments  or  reorganisations.  And  they  provide  an  important 
source  of  information  on  labour  market  developments  for  the  formulation  and 
implementation of labour market policy. 

The fact  that all unemployment benefit  claimants are registered  gives the PESs  extensive 
coverage  of  jobseekers,  particularly  the  unemployed.  A  valuable  service  can  thus  be 
offered  to  employers. Coverage  of vacancies by the' PESs  is also  considerable.  Statistics 
indicate that, during the early  1990s, between 35% and 40% of vacancies occurring  each 
year were notified  to the PESs in Germany, Sweden and the United Kingdom. The  figure 
is lower in other Member  States, but in most cases exceeds 20%. Several Member  States 
-  France for example -  have recently increased their share of notified  vacancies. 

The  use  of  modern  technology  by  the  PESs  improves  the  quality  of,  and  access  to, 
information  on labour market  supply  and demand. Information  can be provided  not only 
on  the  local  and  regional  labour  markets,  but  also  on  the  national  and  even  the 
international  level,  thus  increasing job  and  recruitment  opportunities.  Through  Internet 
and other media, information can also be made available at any time and any place. 

Wide coverage  of,  and  free  access to, PES  information  enhances market transparency.  It 
can  be  argued  that  this  is  as  important  a  contribution  to  the  functioning  of  the  labour 
market  as  placement  services.  It  helps  ensure  both  equitable  access  to  labour  market 
information  and increased quality and efficiency  of the matching process. 

Brokerage:  Brokerage  services  are  the  core  business  of  all  PESs.  Over  time  these 
services have been developed in a variety of specific  forms catering for the  differentiated 
needs  of  jobseekers  and  employers  with  vacancies.  They  range  from  fully  open 
presentation of vacancies to more selective mediation between jobseekers and employers, 
and from  quick job matching procedures to intensive job search assistance. 

The  share  of  the  total  market  that  different  national  PESs  obtain  in  the  filling  of 
vacancies  varies  considerably.  Figures  for  the  EU  show  that  Member  State  PESs 
intervene  in between  10% and 30% of total hirings, although the number of  unemployed 
people  receiving  some  form  of  help  from  PESs  in  finding  employment  is  substantially 
higher. The PES is often  the most important source of assistance to those jobseekers  who 
have the most difficulty  finding  a job. In addition, employers who have difficulties  filling 
vacancies usually use the PES as at least one of the channels for search and recruitment. 

Through  their  extensive  and  varied  brokerage  activities  PESs  help  to  ensure  wide  and 
effective  market  participation,  a  more  effective  matching  process  and  a  more  equitable 
spread of market opportunities. 

The available  evaluation  literature3 indicates that  individual job  search assistance,  which 
forms  an integral part of a PES's  brokerage  activities, is one of the most  effective  active1 
labour  market  measures  for  (re-)integrating  unemployed  jobseekers.  If  provided  at  an 
early  stage,  it  helps  reduce  the  duration  of  unemployment,  especially  for  disadvantaged 
jobseekers, and results in considerable  savings on benefit  expenditure,  at a relatively  low 
. .. 
cost to the public budget. 

•„.;.. 

... 

- 

Market  adjustment:  A  distinctive  feature  of  Public  Employment  Services  is  their  close 
involvement  in  implementing  labour  market  policies  which  help  to  adjust  mismatches 
between supply and demand. 

In  1995, around  185 billion ECU (3.3% of Union GDP) was spent on income support  for 
the  unemployed  and  active  labour  market  programmes,  ranging  from  counselling  and 
brokerage to training and subsidised employment. One third of this sum (65 billion ECU) 
went  on  active  measures,  which  were  to  a  large  degree  organised  through  PESs.  The 
share of national  GDP  spent on active labour market programmes  ranged  from  0.37% in 
Austria to 3.00%> in Sweden. PES involvement in labour market training puts them in the 
front  line  of  government  moves  to  bridge  the  skills  gaps  which  hamper  growth  and 
employment in specific  sectors or areas. 

In  1995  expenditure  on  income  support  for  the  unemployed  came  to  some  120  billion 
ECU,  or  nearly  twice  the  amount  spent  on  active  measures.  Unemployment  benefit 
systems  have  an  important  influence  on  labour  market  behaviour.  Being  guaranteed  a 
certain  standard  of  living  makes it easier  for  employees  to  accept  structural  change  and 
the ensuing need for frequent  re-skilling. It also gives unemployed workers time to search 
for suitable jobs. Excessively generous benefits, though, may have disincentive effects  on 
jobseekers.  By  linking  unemployment  benefits  to  active  job  search  efforts  and/or 
participation  in  active  programmes,  PESs  can  alleviate  such  disincentive  effects  and 
enhance  labour  market  efficiency.  Moreover,  PESs  are a major  element  in  transforming 
passive income support schemes as far as possible into active labour market measures (of 
various kinds). 

Different  countries have different  ways of involving their PESs in the implementation  of 
passive  and.active policies.  At  one end  of the  spectrum,  the  German  'Bundesanstalt  fur 
Arbeit'  covers  all  aspects  of  active  and passive  labour  market  intervention,  while  at  the 
other  end,  the  French  'Agence  Nationale  pour  PEmploi'  is  primarily  engaged  in 
information  and  brokerage.  Other  PESs  lie  somewhere  in  the  middle.  The  VDAB  in 
Belgium  or  FAS  in  Ireland  combine  information  and  brokerage  with  responsibility  for 
training  without being directly  involved  in benefit  administration.  The UK  'Employment 
Service'  combines  information  and  brokerage  with  the  payment  of  benefits,  while 
training programmes are to a large extent run by external agencies. 

3  Review  done  by the Organisation  for  Economic  Co-operation  and  Development  in  1993  and updated  in 

1995 (OECD Employment Outlook  1993, Ch. 2) 

Nowhere  do  PESs  try  to  organise  all  service  delivery  by  themselves.  Increasingly  over 
the  past  decade,  they  have  tended  to  bring  in  and  co-operate  with  many  other  players 
responsible for  specific parts of service delivery, sometimes as subcontractors to the PES. 

On the  other  hand,  even  where  PESs have a more  restricted  remit  (say,  information  and 
brokerage),  they  try  to  play  a part  in  the  urgent  and  essential  task  of  coordinating  all 
(active  and  passive)  services  on  the  level  of  the  individual  jobseeker  and  employer, 
according to clearly defined  principles and political priorities. 

Across  the  Member- States  expenditure  on  PESs'. staff  and  equipment ranges  from  less 
than  0.10%  to  around  0.25%  of  GDP.  This  range  reflects  individual  Member  States' 
expenditure  on  active  and  passive  labour  market  programmes  and  the  part  played  by 
PESs  in  implementing  these  programmes.  Excluding  the  administration  of  benefits  and 
programmes,  expenditure  on  PESs  is  estimated  to  be  below  5% of  total  expenditure  on 
active and passive policies. It is a fairly  modest investment which can bring a substantial 
return in terms of increased market efficiency  and of savings on unemployment  benefits. 

2.2 

An essential actor in the European employment strategy 

PESs  are  a  key  institutional  component  of  the  new  European  approach  to  employment 
policy  as reflected  in the  1998 Employment  Guidelines.  National  Action  Plans  confirm 
that  PESs  play  a  particularly  important  role  with  respect  to  the  first  pillar  of  the 
Guidelines, i.e. employability, while they are also deeply involved in the fourth pillar, i.e. 
policies to  strengthen  equal opportunities. However  they  can also contribute, as  reported 
by several Member  States, to the success of specific  efforts  within the  other two pillars: 
entrepreneur ship and  adaptability. 

Improving  employability:  Since  the  mid-seventies,  when  labour  markets  became 
characterised  by  a  high  level  of  unemployment  and  limited  overall  demand  for  labour, 
efforts  have  been  made  to  ensure  that,  even  where  it  is  not  feasible  to  provide  all 
jobseekers with a job  in the short term, unemployed persons at least maintain or improve 
their  ability  to  find  a job.  Counselling  in job  search  techniques,,  incentives  to  go  in  for 
training  or  to  take  up  Work,  improved  access  to  training  and  work  experience,  are  all 
important  instruments  in this respect.  They  are largely  delivered  through  the PESs, be  it 
directly or by drawing in other actors capable of managing part of these instruments more 
effectively  and/or  efficiently.  PESs  also  encourage  more  people  to  take  up  work  by 
providing extra support  and assistance to  specific  groups  such as people with  disabilities 
and ethnic minorities. 

The  high  priority  given  by  the  1998  Guidelines  to  improving  workers'  employability 
present  the  PESs  with  a  sizeable  challenge.  The  1998  National  Action  Plans  for 
Employment  show  that  Member  States  place  their  PESs  in  a  position  of  prime 
responsibility  for  achieving  the  first  two  Guidelines  that  require  them  to  offer  "every 
unemployed young person  ... a new start before reaching six months of unemployment, in 
the form  of  training,  retraining,  work practice,  a job  or  other  employability  measure" 
and  to  offer  "every  unemployed  adult...  afresh  start  before reaching  twelve months  of 
the  aforementioned  means  or,  more  generally,  by 
unemployment,  by  one  of 
accompanying  individual vocational guidance ".  The PESs are also very  much  involved 
in  implementing  the third  Guideline  that  sets  a  quantified  target  to  raise  the  number  of 

unemployed people who are offered  training or any similar measure. If these three critical 
commitments  are  to  be  met,  many  PESs  will  have  to  review  their  operations  and 
innovate.  Moreover,  for  the  required  large-scale  case  management,  sufficient  resources 
need  to  be  provided,  and  appropriate  links  between  the  PESs,  training  and  counselling 
bodies and the business community need to be put in place. 

With  regard  to  the  transition  from  school  to  work,  the  1998  Employment  Guidelines 
stress the need  to  provide young  people with the aptitudes  required  for  entering  the job 
market.  To  help  facilitate  this,  the  PESs  in -many  countries  play  a  part  in  operating 
apprenticeship  training'  systems^-mobilising  training  places  and  mediating  in  their 
allocation to young workers. 

Developing  entrepreneurship:  As  part  of  the  policies  to  develop  entrepreneurship  the 
Employment  Guidelines call for  more self-employment  and for making more of potential 
sources  of  local  employment  in  social  services  and  activities  that  serve  needs  not  yet 
satisfied  by  the  market.  In  several  Member  States  PESs  seek  to  promote  self-
employment,  through  specific  schemes  directed  at  unemployed  jobseekers  or  workers 
threatened  with  redundancy  in  the  context  of  company  restructuring.  These  include 
training  and 
and  often  involve  a  more  active  use  of 
unemployment  benefit  schemes.  Furthermore,  PESs . help  to  pinpoint  and  develop 
potential  sources  of  employment.  At  a  local  level,  they  are  increasingly  involved  in 
partnerships  with  other  public  and  private  bodies  to  develop  local  strategies  for  job 
creation in response to new social or environmental needs. 

other  support  measures, 

Encouraging  adaptability  of  business  and  their  employees:  Although the sheer  scale of 
unemployment  may  force  the  PESs  to  give  priority  to  managing  the  unemployed 
population and movements  into and out of it, they can still contribute to the  management 
of structural  change within  enterprises  and branches  of the economy  by helping  workers 
and  employers  to  minimise  the  risks  of  unemployment  and  to  find  alternative  job 
opportunities.  To  a  greater  or  lesser  extent,  most  Member  States'  PESs  are  involved  in 
various  programmes  for  training,  retraining  and  redeploying -workers  who  are  having  to 
cope with structural change and may be in danger of losing their job. 

A well functioning  labour market  is essential if business  is to  adapt  smoothly  to  change. 
As the main public institution  at the interface  between employers and the external  labour 
market,  PESs  can  contribute  in  important  ways  to  this  priority  in  the  Guidelines.  In 
addition,  through  active  co-operation  with  the  social  partners,  PESs  can  play  a  part  in 
alleviating  any  tensions  that  might  arise  between  the  adaptability  goal  -  focusing  on 
employed  workers  within  a  company  -  and  the  employability  goal  -  focusing  on 
unemployed workers. 

Strengthening policies for  equal  opportunities  between women and men:  As  is  clearly 
shown in the National Action Plans for Employment -  e.g. for Germany, Austria, France, 
Portugal, Ireland, the United  Kingdom,  Sweden and Denmark -  PESs have an  important 
role to play  in enhancing  equal  opportunities  in the  labour market.  This  means  boosting 
female  participation  in  the  labour  market,  and  promoting  a  more  equal  gender 
representation  in  occupational  sectors  which  have  had  a traditional  gender  bias;  it  also 
means helping  both women  and men who want to return to work after  an absence.  Some 
Member  States are trying to involve men and women in active measures pro rata to their 
share of unemployment. 

PESs also bear important responsibilities with regard to equal opportunities policies  in a 
wider sense. They play a vital role in improving the employment  chances of handicapped 
workers  and  are  often  prominent  in  fighting  inequality  for  people  of  different  race  or 
ethnic origin, different  age groups, and so on. 

Thus,  although  PESs  have  differing  remits  and  organisational  set-ups, they  are  in  every 
Member  State  crucial  to  the  implementation  of  labour  market  policy,  including  the 
National  Action  Plans under  the European  employment  strategy.  PESs help to  speed  up 
and  improve  labour  allocation.  They  help  to  keep  the  labour  force  employable,  both 
adapting 
it  to  changing - employment  structures-and  acting  as-* a-  force-against 
marginalisation. They contribute to a more equitable distribution of job opportunities  and 
of  access  to  training  and  other  employment  back-up  facilities.  They  help  to  boost  the 
labour  supply  to  overcome  labour  shortages.  Beyond  the  immediate  concerns  of  the 
labour market, they also contribute to maintaining social cohesion. 

3. 

The need for  modernisation 

To be effective,  PESs have to adapt to an environment that  is changing  rapidly. All  over 
Europe,  labour  markets  are  in transformation,  as is the relationship  of public  authorities 
to  these  markets.  These  changes  require  the  PESs  to  rethink  their  institutional  role, 
working  methods,  goals  and  objectives.  At the  same  time,  like  other  parts  of the  public 
sector, most PESs have come under increasing pressure to live within tighter budgets. 

3.1.  A changing  environment 

The  characteristics  of jobseekers  have  begun  to  change  as  more  highly  educated  young 
people  enter  an  ageing  European  work-force.  Female  participation  in the  labour  market 
has  greatly  increased,  and  work  and  family  responsibilities  are  more  often  combined  as 
families  become  less  dependent  on  a  single  breadwinner.  Ethnic  minority  populations, 
who bring their own specific  labour market characteristics, have increased. 

The needs of employers are also changing. The types and range of skills are changing  as 
the  economy  moves  from  being  industrial  to  service-based  and  the  degree  of  job 
differentiation  in the market increases.  Faced with the unrelenting  pace  of  technological 
change and the need for  competitiveness, employers also require more highly  skilled and 
better  qualified  workers  able  to  adapt  to  the  constantly  changing  content  of  jobs. 
Employment  relationships  are  changing  too,  as  working  hours  and  working  times  are 
becoming  more varied, a greater degree of functional  mobility, is required  and new types 
of  temporary  work  are  emerging.  Further  challenges  arise  out  of  high  and  persistent 
levels  of  unemployment,  including  long-term  unemployment  (LTU),  unevenly  spread 
across demographic groups. From this a new strong political commitment has emerged to 
combat  such  unemployment.  Increasingly,  public  concerns  have  widened 
to  groups 
outside  the traditional  definition  of the  labour  force,  with  moves  to  (re-)connect  broader 
population  groups  to  the  labour  market  (e.g. people  on  disability  and  other  benefits  as 
well as people who are completely outside the labour market). 

To sum up: Changing needs on the demand and supply  side and the accelerated speed of 
change  have  made  the  labour  market  more  complex.  At  the  same  time  effective 

•9 

management  of  human  resources  has  become  a  crucial  success  factor  in  a  more 
competitive  market  economy,  while  (re-)integration  of  a considerable  part  of  the  labour 
force  has  become  a  difficult  problem.  These  trends  combine  to  make  up  a  new  market 
reality  with  a continuously  growing  need  for  various  types  of  professional  intermediary 
services leading to changes in practical  arrangements: 

(a)  Short-term  employment  contracts  are  increasingly, being  used  by  employers  to  test 
employees as a precursor to permanent  employment. 

(b)  Within  the  context  of  restructuring,  the  social  partners .have  for,a .long  time  been 
involved in retraining and other measures. During the last two decades they have in many 
countries  increased  their  efforts  in  this  field,  on  the  one  hand  adapting  workers  in 
. employment  to  changed job  contents,  on  the  other  getting  increasingly  involved  in  the 
re-integration of unemployed persons. This is often done in partnership with the PES. 

(c)  The  education  system  has  become  less  isolated  from  the  labour  market  through  the 
spread of dual arrangements in some countries (apprenticeship  systems and the expansion 
of  traineeships  within  full-time  education)  and  through  a  great  expansion  of  adult 
(vocational)  training.  Vocational  training  itself has  become  a very  complex  market  with 
myriad  providers  and users.  In  integrating  employers  into  this  market,  training  has  also 
acquired a matchmaking  function. 

(d)  More  labour  market  information 
information  and communication  technology. 

is  becoming  available  cheaply  through  new 

(e) New providers  of intermediary  services  are entering  the labour market,  adding  to  the 
quantity  and range of services offered.  Private agencies organised  on a commercial  basis 
operate  for  employers  who  are  willing  to  pay  for  their  services.  They  assist  in  the 
selection  and  recruitment  of  workers  as  well  as  in  the  outplacement  of  redundant 
workers. They  also cater for  the increasing  need  for  workers to be employed  on  flexible 
contracts.  In  particular  temporary  employment  agencies  have  spread  widely  in. some 
Member  States  of  the  Union,  most  impressively  in  the  United  Kingdom,  Netherlands, 
Belgium  and  France.  Several  have  developed  into  large  multinational  enterprises, . 
meanwhile  diversifying  their  employment  services  far  beyond  the  original  activity  of 
merely hiring out temporary workers for  short contracts. They not only work on contracts 
with  individual  enterprises  but  may  also  provide  services  under  contracts  arising  from 
bipartite  agreements  at enterprise  or sector  level. Being primarily  focused  on  fee-paying 
employers, it is clear that the commercial intermediary agencies also serve the interests of 
manyjobseekers. 

In  some  countries,  trade  unions  have  again  started  to  organise  placement  services, 
particularly  in  relation  to  the  unemployment  insurance  schemes  they  manage  (for 
example in Denmark). 

In  addition,  a  number  of  countries  have  seen  the  development  of  agencies  and 
organisations  that  supplement  the  activities  of the  PESs  for  different  categories  of  non-
employed  workers who need better chances to get (re-)integrated  into the labour  market. 
These  service  providers  are  completely  or  largely  financed  by  the  public  purse,  either 
through  the  PES  that  buys  in  their  services  or  through  other  institutions  (ministries  of 
employment,  local  authorities,  social  benefit  administrations  etc.). Commercial  agencies 
sometimes also join in, developing side-line activities in the public domain. 

10 

On  an  international  level  the  new  ILO  Convention  on  Fee-Charging  Employment 
Agencies  No  181, due  to  replace  Convention  No  96  of  1949,  creates  a  legal  basis  for 
these new service providers, while requiring ratifying  States to take adequate  precautions 
against  possible  forms  of  abuse  in the  labour market.  Despite  the  spread  of  commercial 
agencies  in the  market,  it  has to  be  said  that their  contribution  to  matching  unemployed 
jobseekers  to  vacancies  (which  is  a  major  PES task)  is  still  somewhat  meagre,  even  in 
Member States where they flourish most. 

Not only the market  environment  of the PESs is undergoing  change -  their political  and 
institutional  environment  is  too.  The  traditional  method  of  State  management  of  the 
labour market, often  building  upon tight tripartite consultation, has begun to give way to 
more  decentralised  and  less  regulative  approaches.  Within  this  context  PESs  often  have 
acquired  a more autonomous  position at some distance from  their supervising  ministries. 
They  now  have  to  prosper  in  a  more  competitive  environment  and  build  their  market 
position  on  serving  their  customers  well  instead  of  deriving  their  position  from 
ministerial powers. 

3.2. 

The challenges of  adjustment 

To  be  successful  the  PES  has  to  respond  to  all  these  changes.  In  some  areas  the 
challenges are clear. PESs have to develop their position in new thriving  segments of the 
labour  market,  notably  parts  of 
the  service  sector  and  areas  where  flexible  contract 
arrangements are common. Being largely service institutions operating in the  information 
sector,  the  PESs  also  need  to  keep  pace  with  new  information  and  communication 
technologies and use them in their daily work. 

In  other  areas,  how  to  respond  is  not  so  clear.  PESs  have  to  deal  with  forces  that  are 
pulling  them  in  different  directions.  They  have  to  strike  new  balances  between  these 
forces. Approaches developed in the past have to be reviewed and re-adapted: 

(a)  Serving  jobseekers  and  employers  -  PESs  have  to  reconcile  the  often  diverging 
demands  of  employers  and  jobseekers.  Unemployed  jobseekers,  especially  the  most 
disadvantaged,  require  a  lot  of  resources  and  attention  (systematic  case  management  is 
recognised as being a key instrument in the fight against LTU). But focusing too much on 
the jobseekers'  side may  be to  the detriment  of the  service  to  employers.  Maintaining  a 
balance is already harder within the new competitive environment, where employers have 
begun  to  view  the  PES  as  only  one  of  the  possible  suppliers  of  employment  services. 
Consideration  will  therefore  need  to  be  given  to  the  quality  and  comprehensiveness  of 
services offered  to employers, and the terms on which they are delivered. 

(b)  Building  a  relationship  with  other  service  providers  -  Only  a  limited  range  of 
commercial  employment  services compete with the activities of the PES. A  considerable 
part  is  related  to  rather  different  segments  of  the  market  (for  instance  recruitment  of 
managers  and  other  key  staff).  Progressive  de-monopolisation  of  the  market  for 
employment  services  does mean, however, that the PESs need  to develop a  relationship 
with other intermediary  agents on that market. In market segments where PESs and  other 
service  providers  coexist,  there  are  various  new  options  for  organising  the  public 

11 

involvement  in employment  services. PESs may  withdraw  from  some  activities  because 
others  can  do  them  better.  This  may  be  akin  to  outsourcing,  which  has  long  been  a 
familiar  phenomenon  with  regard  to  training  services,  but  is  now  impinging  on 
counselling,  guidance  and  brokerage  itself.  It  may  however  also  lead  to  a  more 
fundamental  division  of  labour;  one  example  is  the  separate  organisational  structure  on 
regional  and  municipal  level that was recently  established  in some countries  -  Denmark, 
Ireland and some others - to deal with very disadvantaged jobseekers. Joint ventures may 
also be experimented  with in some areas, as is the case in the Netherlands. But there  is a 
competitive  element as well, with private agencies spurring the PES to perform  better  in 
order to keep arid develop its' market  share, which" it needs if it is to "be effective  in ternis 
of  its  social  objectives.  Within  these  competitive  market  conditions  PESs  also  have  to 
consider  to  what  extent  they  should  develop  some  paid-for  services  themselves,  to 
achieve  a  position  in  which  they  can  offer  employers  comprehensive  services  on  a  par 
with those of their commercial counterparts. All in all it is clear that PESs at present have 
to define  more clearly what their proper role and added value  in the market  is, compared 
to both commercial and non-commercial  service providers. 

In  all  cases  governments  are  obliged  to  comply  with  the  basic  principles  of  fair 
competition  on  the  market  for  employment  services  as  set  out  in Articles  85  and  86  of 
the  European  Treaty.  This  means  that  a  PES,  when  in  competition  with  other 
undertakings, must refrain  from  entering into anti-competitive  contracts with them unless 
such  contracts  are  exempted  under  Article  85(3), and  it  also  means  that  a PES, when  in 
the position of dominant player in the market, must not abuse that position. 

The  new  situation  also  means  an  opportunity  for  governments  to  expose  the  PESs  to 
some market testing.  To the competition  for  market  shares,  arising from  the  liberalisation 
as  such,  this  testing  adds  competition  for  government  assignments  to  implement  part  of 
the public  services (specific  programmes,  parts of the case  management  load,  and  so on). 
Experiments  are  already  in  progress  to  some  extent  in  the  United  Kingdom  and  the 
Netherlands. 

(c) Placing jobseekers  and  administrating  benefits  -  Making  the  benefit  system  more 
conducive to employment  leads to the need for a closer link between the management  of 
unemployment  benefits  and the delivery  of employment  services. However, the  rationale 
behind  benefit  administration  is  not  automatically  compatible  with  the  objective  of 
placing people in jobs. 

(d) Delivering  public  policy  and providing  a service  -  While  the  strength  of  the  PES 
increasingly  depends  on  its  position  as  a  service  enterprise  in the  market,  it  remains  an 
important  delivery  agency  of  public  policies,  something  which  may  have  the  effect  of 
burdening  the  PES  with  administrative  tasks  that  foster  a  bureaucratic  culture. 
Periodically  renewable  'agreements'  between  PESs  and  Ministries  can  be  used  to 
reconcile the need for policy delivery and operational independence. 

(e)  Establishing  the  appropriate  level  of  delegation  -  Regional  and  local  public 
authorities  are more and more engaged  in the fight  against unemployment.  Authority  has 
to be devolved within the PESs if they are to be successful  partners in employment  policy 
at  a  regional  and  local  level.  But  this  will  have  to  be  reconciled  with  arguments  that 
strongly  favour  the  maintenance  of  a  unified  national  system  (equality  of  treatment, 
unification  of the unemployment  insurance system and economies of scale). 

12 

(f) Providing  a national  service  in  a European  context  -  National, labour  markets  will 
increasingly  have  to  be  managed  within  a  wider  European  perspective.  International 
labour mobility  will become a more important  factor  during the next two decades than  it 
has been during the  last  30 years. Highly  skilled  new generations  of young  workers  will 
be more able and willing to work in another country and will find new opportunities to do 
so in possibly tighter labour markets with shortages of modern skills. To be successful  in 
the European market, where 90% of EU production is sold, employers will seek to recruit 
multilingual  persons  drawing  on  different  cultures,  languages  and  professional  skills. 
Building on the established EURES network, PESs will have an important role to play in 
facilitating  the free movement of labour.  " 

"  • •  - 

-• 

• 

3.3. 

The modernisation process 

The process of modernisation  is underway  in most Member  States. PESs are often  being 
organised  in  a  more  decentralised  way  and  local  employment  offices  have  been  given 
more  scope  for  gearing  their  resources  to  the  local  labour  market.  PESs  are  already  to 
some  degree  decentralised  in  Sweden,  Finland,  Denmark  and  the  Netherlands,  and 
progress  in  this  direction  has  been  made  in  Germany,  Austria,  Ireland,  Belgium  and 
France.  The  ongoing  regionalisation  of  PESs  in  Italy  and  Spain  will  provide  an 
opportunity to support the process of modernisation. 

The PES  monopoly  on the  delivery  of employment  services  has been  abolished  in  most 
Member  States  and,  where  it  still  exists,  a  move  towards  more  liberal  conditions  is 
clearly  observable  (in  Italy  and  Spain  for  instance).  As  a  consequence  most  PESs  have 
begun  to  build  new  relationships  with  the  growing  number  of  private  agencies.  Partly 
related  to  that,  efforts  are  being  made  in many  countries,  including  France,  Austria  and 
Germany^ to increase the level of customer orientation. 

In  addition,  many  Member  States  are  seeking  to  rearrange  the  relationship  between 
benefit  administration  and  the  delivery  of  employment  > services.  In  Denmark  the 
exchange of information  between the employment offices  and the benefit  agency is about 
to be strengthened. In France, unemployed jobseekers are referred  to the benefit  agencies 
by the PES when they first register. In the Netherlands unified  client dossiers  (containing 
all  dealings  with jobseekers)  and  one-stop  offices  for  benefit  case  management  and job 
brokerage  are being developed.  In the United  Kingdom a new tight link between  benefit 
administration  and the delivery  of employment  services was  made  with the  introduction 
of the Jobseekers'  Allowance. 

The process of reform,  however, still has a long way to go. Some initiatives are still at an 
early  stage,  while  others  are  proceeding  in  a rather  fragmented  way  without  sufficient 
linkage between the various issues and without the involvement of all relevant actors. 

The  solutions  will  not  necessarily  be  the  same  for  all  Member  States.  Reforms  will 
depend  in  part  on  the  specific  national  set-up.  of  the  PESs,  which  have  evolved 
independently  and  been  moulded  by  the  national  socio-economic  system.  But  in  many 
respects,  the  challenge  of  modernisation  is  the  same  everywhere  because  all  of  Europe 
faces the same changing  environment. 

13 

4. 

A programme for concerted action to modernise and empower the PESs 

The  emerging  European  employment  strategy  provides  a  new  incentive  to  proceed  to  a 
rapid  process  of  modernising  and  strengthening  Public  Employment  Services. 
Employment  services financed  through public funds  and/or  statutory payroll levies are an 
important  instrument  in  implementing  the  Guidelines,  and  the  National  Action  Plans 
clearly place the PESs at the centre of the national delivery systems for  such  employment 
services.  Concerted, action  by  all  relevant  parties  is  required,  which  involves  the  PESs 
themselves  as well as national  governments, local and regional  public  authorities  and the 
social  partners.  The  European  employment  strategy  stimulates  a  shared  interest  at 
European level in an effective  delivery system and calls for European support, for  national 
efforts. 

4.1. 

Priorities for concerted action 

To ensure that the PESs meet the challenges of the modern labour market and are able to 
live  up  to  the  targets  set  under  the  European  employment  strategy  the  following 
requirements should be  fulfilled: 

PESs  should  a)  obtain  substantial  access  to  vacancies, b)  develop  arrangements  for  the 
systematic case management of all registered unemployed jobseekers, c) contribute to the 
co-ordinated  delivery  of  all public  services to jobseekers,  focused  on their  reintegration, 
and d) develop strong  partnerships with other relevant actors on the market. In  addition, 
there  is  a  need  for  a  more  active  approach  to the  promotion  of  occupational  as  well  as 
geographic mobility  in Europe as a means of increasing job  opportunities  and  improving 
job matching. 

Promoting  access to vacancies 

* 
If  they  are  to  have  any  chance  of  tackling  unemployment,  PESs  should  strive  for  a 
substantial  access  to  vacancies.  Only then  can they  use various  techniques  of  brokerage 
and job  search  assistance  to  build  a  bridge  to  the  market  and  provide job  openings  for 
disadvantaged  categories who are, or are at risk of becoming, long-term unemployed.  To 
achieve such a market share PESs need to build good relations with employers, based  on 
confidence  in the professionalism  of their services. 

Employment  offices  therefore  need to move towards  becoming  service  enterprises.  This 
will  entail  a  wide-ranging  programme  of  action,  including  better  identification  of 
employers'  needs,  broader  and  more  up-to-date  service  packages,  the  development  of 
specific  enterprise  and sector  'desks', and action aimed at improving the public  image of 
the  PESs.  Such  a  business-oriented  approach  will  also  entail  a  review  of  internal 
management methods and the use of quality management techniques. 

In  addition,  new  information  and  communication  technologies  should  be  exploited  to 
build  comprehensive  and  accessible  self-service  systems.  These  first-line  services  to 
employers  and jobseekers  should  be  backed  up  with  easy  access  to  more  personalised 
assistance. 

14 

Ensuring systematic case management 

* 
The  emphasis  in  the  Guidelines  on  preventive  action  against  youth  unemployment  and 
LTU  -  especially  the  reference  to  early  identification  of  individual  needs  and  the 
commitments  to  make  offers  before  the  6  and  12-month  thresholds  -  increases  the 
pressure  on the PESs to  go  in for  systematic  case management  of the unemployed.  This 
entails  careful  diagnosis  of  individual  needs  and  close  monitoring  of  unemployed 
jobseekers  throughout  their  stay  on  the  register.  Such  an  approach,  based  on  regular 
interviews,  has  proved-successful'  in- preventing  peopledrifting-into  T.TU.  The  most 
difficult  clients require  tailor-made individual action plans. 

This,  and  the  further  development  of  individualised  service  packages,  tend  to  draw 
heavily  on  available  resources,  thus  reinforcing  the  need  to  make  more  efficient  use  of 
staff and financial  resources. 

Contributing to the co-ordinated delivery of all services to jobseekers 

* 
Improving  people's  employability  requires  close  interaction  and  co-ordination  of  all 
public  services  to  individual  jobseekers,  including  income  replacement,  information, 
counselling and brokerage, as well as the application of special adjustment  measures such 
as  facilities  for  vocational  (re-)training.  PESs  should  play  their  full  role  in  this  co 
ordinated  delivery  of all public  labour market services. This does not mean that the  PES 
as  a  distinct  organisation  should  take  on  all  responsibilities  and  all  practical  service 
activities.  But  certainly  the  PES  is  well  placed  and  well  equipped  to  help  interconnect 
the various parts of the delivery system for jobseekers. 

In  Member  States  with  poorly  integrated  employment  services,  such  co-ordinated 
delivery  of  all  public  labour  market  services  may  demand  a  redesign  of  existing  case 
management  procedures.  The  creation  of  one-stop  shops  at  local  level  for  all  public 
services  is  an  important  issue  in  this  respect.  In  Member  States  where  institutional 
integration  is  more  fully  developed,  increasing  co-ordination  problems  may  have  to  be 
solved, between for example the PES and municipal authorities responsible for the social 
assistance  system. 

Exploiting synergy between PESs and other relevant actors 

* 
The  PESs  should  review  their  relations  with  other  actors  in  the  market,  and  exploit 
possible synergy. This entails : 

(a) building  networks  with  regional/local  authorities  which  have become  more  involved 
in employment  policy  for  social  as well  as economic reasons  and  which  are  responsible 
for  important  policy  instruments  (social  assistance  schemes,  educational  and  training 
facilities,  welfare  schemes  and  so  on).  Successful  co-operation  may  require  more 
decision making powers for local PES  offices; 

(b) co-operation with the social partners, who are increasingly developing new and varied 
employment  policies  on  a  bi-partite  basis  within  particular  sectors  and  branches  of  the 
economy; 

15 

(c)  co-operation  with  institutions  in  the  field  of  vocational  education.  These  have 
multiplied  with  the  growing  importance  of  training  and  have  become  more  directly 
interwoven with the placement process and all the actors engaged in it; 

(d)  better  co-ordination  with  institutions  aimed  at  the  (re-)integration  of jobless  people 
who are not registered as unemployed; and 

(e) developing  good  relations with the expanding  sector of private  employment  services. 
In  addition,  partnerships  with  self-help  institutions  for  the  unemployed  can  improve 
service delivery. 

. . . . . . ,,  ;. 

Using PESs to facilitate  international labour mobility 

* 
Both  the  introduction  of  economic  and  monetary  union  and  the  development  of  a  co 
ordinated  European  employment  strategy  increase  the  importance  of  reducing  obstacles 
to  the  free  movement  of  workers.  More  easy  geographic  mobility  will  facilitate  labour 
market and economic adjustment.  The EURES network, established  in  1993 by the PESs 
and the European Commission - and also involving the social partners and local actors in 
a number  of cross-border  structures - is the ideal vehicle  for  facilitating  and  encouraging 
mobility. To optimise its potential, EURES needs to become more strongly rooted within 
the  different  national  PESs  and  provide  users  with  a  higher-quality  service  -  whether 
employers, workers or jobseekers. 

4.2. 

The action required 

Together, PESs, governments, the social partners and the European Union have to make a 
concerted effort  to achieve progress on the above priorities. 

*PESs 
PESs should  be strategic and  lead actors on this  stage. They have to  offer  a  professional 
service to  employers.  They  have  to  devise  effective  methods  and  procedures  to  service 
the flows  of unemployed jobseekers. They have to develop new relationships  with  other 
actors  in  the  labour  market,  such  as  private  employment  agencies,  local  and  regional 
authorities and benefit  agencies. 

PESs  should  fully  exploit  the  opportunities  offered  by  European  co-operation.  By 
exchanging best practice, it is possible to develop a broader European basis of experience 
and a network of mutual  support  established,  and to set up joint projects  which will help 
speed up the ongoing modernisation process and give it the right direction. One example 
is the development of self-service  systems using modern information  and  communication 
technology.  There  are  considerable  potential  benefits  from  sharing  the  costs  of research 
and  development,  particularly  as  systems  will  increasingly  need  to  be  developed  to 
the 
specifications  which  allow  Europe-wide  accessibility.  Another  example 
development of certain common standards, e.g.  quality standards for service delivery. 

is 

PESs  should  support the  fuller  integration of EURES  into their  services, thus bringing  a 
greater  European  dimension  to their  information,  counselling  and  brokerage  services  to 
jobseekers and employers. 

16 

* Member  States 
As  part  of  their  commitment  to  the  European  employment  strategy,  Member  States 
should  give  their  full  support  to  PES  modernisation  and  foster  PES  development.  Such 
support,  if  well  designed,  is  productive  and  cost-efficient  in  both  social  and  financial 
terms. 

Within the  context  of  an overall  expenditure  restructuring,  adequate  resourcing  of PES, 
especially  in  terms  of  the  size  and-quality  of  staff, 
is  a.vital ..pre-condition  for  then-
success. The challenging targets set out in the Employment  Guidelines increase the need 
to review resources. 

Governments  should  also  seek  to  create  an appropriate  institutional  environment for  the 
PESs.  This  means,  in  particular,  striking  the  right  balance  between  central  political 
steering  and  a  sufficient  degree  of  operational  independence.  Annual  or  multi-annual 
agreements, already  used  in several  Member  States, may  help do this. In addition,  some 
degree  of  decentralised  management  is  necessary  to  allow  the  PES  to  adjust  to  the 
different  needs  of  the  local  and  regional  labour  markets.  Thirdly,  the  spread  of  other 
intermediary  agencies  in  a  more  liberalised, market  for  employment  services  might  be 
exploited  in  appropriate  ways  to  seek  enhanced  effectiveness  and  efficiency  in  the 
delivery of public services. Fourthly, Member States should ensure a clear distribution  of 
responsibilities  and  accountabilities  between  all actors involved  in the delivery  of active 
and passive employment services. 

Furthermore, governments  should create and maintain an adequate level and structure  of 
facilities  for  training, work experience  and other means for  market adjustment.  PESs can 
only perform  their market functions  in a satisfactory  way if these facilities  can be  offered 
to  create  new  opportunities  for  unemployed  jobseekers  who  cannot  be  sufficiently 
assisted  by  merely  offering  them  a  mix  of  information,  counselling,  guidance  and . 
brokerage services. 

The Commission  invites Member  States to pay  due  attention  - when  implementing  their 
instrumental  role  in  the 
National  Action  Plans  -  to  preparing  PESs  for 
implementation  of the Employment  Guidelines. Measures for  modernising  the PESs and 
strengthening their role as delivery mechanism for public services should be included. 

their 

* Social  Partners 
The dual  objective  of adapting  the employed  to  economic  and technological  change  and 
keeping unemployed people employable requires a joint effort  from the public  authorities 
and the  social  partners. The  social  partners have, for  a number  of years  and to  differing 
degrees,  been  involved  in  the  management  of  PESs  in  most  Member  States.  The 
Employment  Guidelines  stress  the  role  of  the  social  partners  in  improving  the 
adaptability of firms and their employees, and call for their participation in employability 
policies  through  the  early  conclusion  of  agreements  to  boost  opportunities  for 
unemployed jobseekers. In many  cases this will  lead to a practical  co-operation  with  the 
PESs. 

17 

^European Union 
Within  the  context  of  the  employment  strategy,  the  Commission  will  use  all  available 
instruments to support the above process. 

The  Commission  supports  co-operation  between European  Public  Employment  Services 
in order  to  facilitate  exchanges  of  information  and  best practice  on operational  issues  of 
common  interest  and  to  develop  common  activities  at  EU  level.  Such  co-operation  was 
initiated  in  1997.  It  entails  a  work  programme  and  bi-annual  meetings  of  the  heads  of 
PESs.  Ad hoc working  groups of PES experts have already been established to carry  out 
the work programme,-with the Commission acting as facilitator to the groups. 

The  major  common  activity  involving  all  Member  States'  PESs  (as  well  as  PESs  from 
Norway  and Iceland) at the moment is the EURES network. Responsibility  for  EURES at 
Commission  level  has  recently  been  transferred  to  the  directorate  in  charge  . of 
employment  policy,  reflecting  the  will to  make  more  of the  EURES  contribution  to  the 
employment  strategy. EURES remains an essential tool  in enabling  European workers to 
exercise  their  freedom  of  movement,  and  employers  to  have  wider  access  to  a  Europe-
wide  labour  supply.  As such it can also improve the overall  functioning  of the  European 
labour  market.  In  addition  to the need  for  market  adjustment  facilities  (like training  and 
education) to be made available on an adequate scale and density, increased  geographical 
mobility  of  workers  can  help  to  reduce  the  skills  gap  in  the  Community,  improve  the 
employability of workers and facilitate the closer integration of labour markets. 

The  Commission  will  support  research  to  promote  better  knowledge  and  understanding 
of  PESs'  requirements,  and  will  disseminate  the  results  of  this  work.  The  Council 
Decision of 23 February  19984 "on Community research, analysis and co-operation in the 
fields  of  employment  and  labour  market"  offers  new  opportunities.  In  addition,  the 
Commission  will  look  into  the  possibility  of  supporting  pilot  projects  under  the  new 
budget line on "Incentive measures in the field of employment". 

PESs  have  always  been  an  important  mechanism  for  implementing  programmes 
supported  by  the  European  Social  Fund,  acting  either  directly  or  through  other 
institutions. Improvement of employment services is mentioned in the regional  objectives 
of the  Fund.  The  Commission's  Initiative  on Territorial  Employment  Pacts  furthermore 
calls upon the relevant  regional  and  local partners, including  the PESs, to take  an  active 
role in job  creation. 

The  current  revision  of  the  ESF  regulation  will  enable  resources  to  be  used  more 
effectively  in co-financing  Member  States' programmes for  meeting the objectives  of the 
Employment  Strategy.  The  development  of  structures  and  systems  for  policy 
implementation  feature  explicitly  as  activities  eligible  for  financial  support  from  the 
Fund, e.g. the modernisation and improved efficiency  of employment services. 

The  Commission  will  use  its role  in the  social  dialogue  to  investigate, together  with  the 
social partners,  existing  and potential  areas  for  successful  partnerships  with the  PESs  at 
enterprise, branch and sector level. 

.  4  Official  Journal of the European Communities, L 63/26 of 4. 3. 98 

. 18 

In view of the central role played by the PESs in.the employment.strategy:and more generally 
in the labour market, the Commission will give due attention to them in developing 
partnerships with Central and Eastern European and other applicant countries.  Support will 
be given to PES initiatives aimed at strengthening their role both as service providers in the 
labour market and as instruments for the delivery of employment policy. 

13 

ISSN 0254-1475 

COM(98) 641 final 

DOCUMENTS 

EN 

04  01  13  05 

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