Trends in Public Employment Services: an overview of the 2025 Capacity Report

The European Network of Public Employment Services (PES Network) has released its Assessment report on PES capacity 2025, highlighting key trends and challenges facing Europe’s employment services. As labour markets evolve, PES are increasingly leveraging digital tools for jobseeker registration, vacancy matching, and satisfaction monitoring to address an ageing client base and shifting economic conditions.

Context

Public Employment Services (PES) across Europe are rapidly embracing digital transformation, deploying online tools for jobseeker registration, vacancy matching, and satisfaction monitoring to adapt to an ageing client base and shifting economic conditions. A parallel push towards skills-based profiling is reshaping how services assess and support jobseekers.

Engagement with the reinforced Youth Guarantee (YG) programme has intensified since 2023, with most PES now playing a direct role in its management, coordination, and delivery. Involvement has expanded particularly in profiling, outreach, and labour market analysis to identify and address barriers facing young people entering the workforce.

The trend is accompanied by widespread institutional reform: 56% of PES (18/32) have implemented substantial changes, including internal restructuring, process optimisation, and upgrades to labour market information systems. Many are also introducing targeted tools for specific groups while moving towards greater autonomy and decentralisation.

Key insights

Drawing on extensive data collected from PES Network members, the analysis of PES capacity, reforms, and trends in Europe reveals a landscape marked by both significant advancements and persistent challenges.

Key insights from the report include:

The PES client base is changing, even as overall jobseeker numbers remain stable
- While registered jobseeker totals were broadly unchanged in 2024, the composition of clients has shifted
- The share aged 55 and over has risen, tertiary education attainment among clients has increased and the proportion who are women has increased slightly
- These shifts affect how PES assess, profile, match, and develop skills
Digitalisation and the use of AI are expanding, but implementation remains uneven across services
- PES continue to digitalise core services such as registration and vacancy matching, and 63% of PES report using AI for profiling or matching
PES are strengthening skills-based approaches and their role in delivering the reinforced Youth Guarantee
- Many PES are identifying skills needed for the green transition and linking these insights to training provision, with 81% actively identifying skills and 72% providing green upskilling or reskilling programmes
- Use of profiling tools in the Youth Guarantee context has increased to 97%, reflecting PES efforts to tailor individual support for young people
- Challenges remain, including lack of experience and mismatches between education, skills, and labour market needs
Resource and staffing constraints continue to limit PES capacity
- 38% of PES increased staff between 2023 and 2025
- 62% reported reductions
- Real-terms expenditure has declined over the longer term, despite a short-term rise in 2024 driven by social benefits

Further information

Read the Trends in PES: Assessment report on PES capacity report to explore the full analysis.

The PES Network Knowledge Centre and PES Practice database also have a wide range of information and inspiring practices on the organisation and services of Public Employment Services across Europe.

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