Services Project Manager

Public Employment Services

in English-speaking Africa

Proposals for Re-Organisation

by Gregor Schulz and Britta Klemmer

Harare, Zimbabwe, 1998

Employment Services Project at ARLAC

African Regional Labour Administration Centre

Contents

Preface

I. Introduction

II. Public Employment Services Under Pressure

III. Proposals for a Re-Organisation of Public Employment Services IV. The Placement Function

V. The Vocational Information and Guidance Function VI. The Labour Market Information Function

ABBREVIATIONS

ILO International Labour Office

ISCO-88 International Standard Classification of Occupations (revised in 1988) LMI Labour Market Information

LMIS Labour Market Information System

PES Public Employment Services

VIG Vocational Information and Guidance

Preface

The proposals for a re-organisation of Public Employment Services (PES) in English-speaking Africa presented in this publication emanate from the multi-bilateral funded ILO Employment Services Project. The project, based at the African Regional Labour Administration Centre in Harare, entered into its third phase in July 1996 with emphasis on the "Re-Orientation of Public Employment Services under Structural Adjustment Programmes". The Adjustment Programmes have put many PES into a process of marginalisation just at a time when their services were needed most in contributing towards the proper functioning of the labour markets. In this context the idea of developing a handbook for decision makers and employment services staff grew. It has two objectives: firstly, the awareness on the political level for problems and opportunities of PES will be raised; secondly, practical advice on how to (re-) organise the technical functions of PES will be provided.

Many of the PES in English-speaking Africa have always been operating on a very low level of human and financial resources. Structural Adjustment Programmes have additionally reduced the resources, often to a level below the very basic needs to keep up a minimum service of core functions. The challenge remains to develop and reform PES by using only the resources currently allocated to them. Under this condition, organisational changes play an important role. A modern set up concentrating on tasks like information dissemination on occupations, training institutions, self-employment opportunities, and the labour market as such does not necessarily need a large increase in personnel or finances. As a result, PES could improve both their position in the administration as well as their relationship with the private sector. The handbook is introduced by a problem analysis of the present situation of PES, followed by a number of proposals for re-orienting personnel, functions and available resources towards more focussed and responsive services. These proposals are based on experiences gained through the project implementation and fact-finding missions and, thus, describe changes that could be implemented by almost all countries in the region. They consider the minimum requirements for fully functioning PES, the organisational implications, including the role of the social partners, and the funding problem with a view to the envisaged sustainability of such changes. This part of the publication mainly addresses the political and management level. Subsequent chapters deal with the technical functions of PES. They provide guidelines for employment officers working at the operational level in placement, guidance and counselling activities or in the labour market information function. It is expected that these chapters will also be a valuable guide for decision-making at the political and management level. This publication is based on a draft paper on the "Re-Orientation of Public Employment Services in English-speaking Africa", prepared by the Project Manager of the ILO Employment Services Project, Mr. Gregor Schulz. The draft version has been presented to the Labour Administration Branch of the ILO Geneva. Subsequently, it was sent out together with a questionnaire to key informants in the Public Employment Services of several African countries. The authors are grateful for the valuable comments of the ILO colleagues and the replies of the counterparts. Many thanks go to the Project Expert, Ms. Britta Klemmer, who has redrafted the publication. In consultation with the Project Manager, she has searched available literature and manuals from various national sources and provided essential inputs to this publication. She has also prepared the diagrams.

Gregor Schulz

Project Manager

I. Introduction

Background

Public Employment Services can play a crucial role within the labour market. As a provider of regularly collected, comprehensive and up-to-date labour market information they could be the focal point for the shaping of labour market policies and programmes. With services like information dissemination on occupations, training institutions and self-employment opportunities they could attract a broad range of interested job seekers. Other government institutions might also have a strong interest in this information. Close contacts with employers and their business associations would not only increase the number of notified vacancies but it would also enable the employment service to become a major partner in personnel planning and development. Employment services could thereby build a strong link with the private sector from which both sides would profit. Vocational guidance and individual counselling activities would complete the picture of the modern Public Employment Service. Unfortunately, the situation as described above does not match reality in English-speaking African countries. Very few countries provide reasonably good services, while in others the services are merely noticed by the public or the government institutions. The insufficient capacity of Public Employment Services and of related institutional and administrative infrastructure hampers the design and implementation of labour market policies and programmes required to facilitate market-oriented reform.

This is particularly serious because throughout English-speaking Africa, countries are implementing Structural Adjustment Programmes or have begun indigenous policy reform towards greater market-orientation and liberalisation of their economies. The growing consensus that the success of these programmes also depends on their attention to social costs and employment implications is not matched by the institutional capacity of the ministries concerned. Although all countries in the region have severe unemployment problems, the role of Public Employment Services is hardly understood and only placement services are offered. For various reasons this function is not producing satisfactory results but rather demonstrates the inability to provide efficient and relevant services. Employment Services are marginalised in low-priority ministries within the government hierarchy. This affects their budget and poses constraints which keep the services at a minimum standard in some cases. For instance, African countries find that in the long run their economic adjustment might be restricted by severe skill shortages. Yet, Public Employment Services are unable to supply candidates for posts that require higher skills and cannot provide job seekers with information about training opportunities in order to improve their qualifications.

Public employment services in English-speaking African countries generally do not react flexibly to important changes in the labour market, such as the growing importance of employment in the informal sector. Thus, the huge labour supply is not registered and serviced, and the labour demand of this sector is not sourced. Relations with the formal private sector are deteriorating because there is no history of successful cooperation and little confidence in the ability of public services to develop.

Structure

This handbook concentrates on the basic functions of employment services, as stated in Article 6 of the ILO Convention Nr. 88 (1948) on the Organisation of Employment Services:

Placement

Vocational Information and Guidance

Labour Market Information

The handbook is divided into six chapters starting with this introduction. The second chapter briefly describes and analyses the problems of Public Employment Services in English-speaking African countries. The third chapter offers possibilities for a re-orientation and modernisation of employment services with regard to the specific functions mentioned. Chapter four deals with the placement function and is the beginning of the more technical part of the handbook. Chapter five covers vocational information and guidance, and chapter six on labour market information follows it.

Target Group

The handbook is directed at employment officers and decision-makers in government and the private sector. In order to reach both groups, a problem analysis is combined with practical proposals for a re-organisation of employment services. Whereas a purely technical manual would only be used by the operational staff in employment services, a theoretical analysis would be of interest only to higher-level officials in the ministries. The combination of both is an attempt to develop a common understanding of the problems and the potential role of Public Employment Services.

Chapter two, which analyses problems of Public Employment Services, gives reasons for and shows effects of their difficult situation. The employment officer reading this chapter will probably find well-known problems. But for the decision-makers in the relevant ministries and in the private sector some of the information might be new and will help to reveal the complexity of the situation. The technical part of the handbook will assist employment officers in their day-to- day work. It also provides ideas for a broader range of activities and, thereby, presents many different functions that employment services could implement, even at a basic level. II. Public Employment Services Under Pressure

The analysis of the problems of Public Employment Services in English-speaking African countries is a rather complex issue involving both the government and the private sector. Suffering from little support inside the government and unable to keep pace with developments in the private sector, Employment Services are increasingly under pressure and have already ceased to exist in some countries.

Public Employment Services and the Government

Although all countries in the region have severe unemployment and underemployment problems, the positive role that PES could play in the labour market is hardly understood or promoted by their governments. With a few exceptions most of the PES only offer registration services and perform poorly in their traditional placement function. Thus, PES are seen as being dispensable and there are examples where they already have ceased to exist. In some countries this is not perceived as a dilemma while it is ignored in others. It should be taken into account that all governments of the region are facing budgetary problems and are not likely to be responsive to any proposals involving increased human and financial resources. On the other hand many countries have experienced considerable progress in terms of political stability and economic development. However, what they have in common is that the Public Employment Services are marginalised in ministries that are also of low priority within the ministerial hierarchy. This affects the budget and poses constraints which often keep the services at a very low level.

Public Employment Services "internally"

The threat of budget cuts and retrenchments

The deteriorating quality of public services and the effect on the economy as a whole has made civil service reforms an urgent issue for governments. Nevertheless, in most cases serious budget cuts and a high number of dismissals are experienced as the initial effect. Public Employment Services are among those hardest hit especially as they already operate on very scarce resources and reduced staff in most countries. A further reduction has a devastating effect, both directly on the resource basis as well as indirectly on the working morale of the staff. Poor performance of Employment Services

In many of the countries in English-speaking Africa, Public Employment Services are operating under deteriorating conditions. They are seriously understaffed and necessary equipment is often scarce. Facilities for communication and transportation are poor and often not operational. It does not come as a surprise that under these circumstances and regarding the results of the traditional placement function, PES are generally perceived as performing poorly. This is the more disappointing as the staff in many of the services is well trained but lacking the tools to work efficiently.

Looking at the low matching rates of PES, the reasons are once again to be found at different levels, starting with the overall economic situation in most of the countries. Due to economic hardship and reform processes that initially lead to high retrenchment numbers, there are very few job vacancies available. This situation is worsening day by day with a fast growing labour force, huge numbers of university, college and school graduates and drop-outs. Even fewer vacancies are notified with the PES as this is either not mandatory or not enforced. However, practical experience has shown that even compulsory systems do not attract more vacancies to the PES as long as they do not provide a qualified and efficient service that employers can value. At the micro-level of PES, there are further reasons for their poor performance. The organisational set-up often requires employment officers to deal with labour inspection, industrial relations and other aspects of labour administration at the same time. Contacts made through inspection and labour relations are for obvious reasons not used to canvass for jobs and to offer applications to employers. Labour inspectors are rarely seen as equal partners by employers and industrial relations officers, because of their role in disputes, are positioned in a completely different context. This situation simply overburdens the individual officers in terms of qualification and working capacity and naturally results in prioritisation. If the officers are in a position to concentrate on the employment services, most of their time is spent with the registration of job seekers. Lacking basic transportation and communication equipment, it then depends on the individual initiative of the employment officer whether or not job canvassing for example belongs to the daily activities.

Public Employment Services and the Private Sector

If regular contacts with employers were maintained, PES would be in a position to follow the changes in labour demand both in general and in the specific needs of their individual clients. Especially in countries undergoing adjustment programmes, PES have to recognise that these programmes involve the adjustment of human resources, not only concerning numbers but also competence. New and changing qualifications will be needed in the long run including:

high educational standards

skills acquired through high-quality vocational training

occupational flexibility

geographical mobility.

The labour market obviously demands the opposite of what employment services currently provide. Efficient, client-oriented, pro-active and resourceful Public Employment Services are needed at a time when none of this is given. PES mainly provide unskilled workers and are not able to fill vacancies requiring good skills and high qualifications. It is impossible for employment services to follow closely the developments in labour demand and what they provide on the supply side is not what is needed by a modernising private sector. Another constraint for effective placement is that Public Employment Services in their traditional way of operating are disconnected from the often fastest growing sector of the economy, the informal sector. Growing informal sector employment reflects the poor governance of public institutions in the sense that their influence over local market developments is weakening. For Public Employment Services this has far-reaching implications. Contacts with the employers in this sector are not established and potential job opportunities are ignored as a consequence. For job seekers in the informal sector, PES are hardly accessible and the services offered are not very attractive.

The general diagnosis that relations between PES and the formal sector are deteriorating and that PES are disconnected from the informal sector is not only valid at the level of the enterprises but also for their business associations. On the one hand, PES do not provide services that seem to be relevant for business associations in most countries. On the other hand, it must be said that often the associations are not very confident regarding the ability of public services to develop into modern and client-oriented institutions that could fulfill important business support activities. It cannot be expected that the initiative for improved contact will come from the side of the associations. It rather seems that, first, PES have to prove that they can make progress and develop into an interesting partner.

Whatever the different reasons for the poor performance of PES are, in the end PES are caught in a vicious circle. Poor performance contributes to the bad image and is taken as a justification for further budget cuts. This reduces resources even further and has a negative impact on the working morale and the motivation of the personnel. Once they reach this stage, Public Employment Services are no longer able to react in a flexible manner to labour market developments and steer themselves out of lethargy. III. Proposals for a Re-Organisation of Public Employment Services

Considering the problem analysis, the re-orientation of Public Employment Services seems to be a difficult task. Proposals run the risk of appearing unrealistic while depending on preconditions that cannot be forced. On the other hand, there will be no improvement of the current situation without alternative scenarios being presented and means being discussed. Most public administration is in one way or another a service institution providing a certain range of services either to the public or within the government itself. In that sense it provides services as a product of its dealings, just as a manufacturing business or even assembly line. In order to produce the anticipated service (product) a certain level of resources needs to be in place. On the one hand there are the human resources, being the backbone of any undertaking. For each post a certain qualification and level of experience is needed and for the whole operation a minimum number of staff must be in place. Specifically in this latter area one can find a lot of negligence. For example nobody would try to operate an assembly line for any product with only one person, unless it is fully automated. However, Public Employment Services with only one officer are quite common in English-speaking Africa. And in addition, this officer usually has little equipment to make the work more efficient.

Therefore, the following proposals are suggested for re-organised and fully functioning Public Employment Services. They are not a description of the present status nor do they set out the ideal situation. The proposals can rather be interpreted as describing that stage in the institutional development of PES at which a basic level of fully functioning modern employment services is reached.

Considering the resources currently available to them, the countries in the region have different starting points for the development of their PES. Some countries might not consider the proposals at all as they go far beyond their resources, whereas others might consider them as being too basic. However, based on experience gained through the implementation of the Employment Services Project and fact-finding missions, the proposals presented here could be implemented in almost all of the countries of English-speaking Africa. The main precondition is not so much the question of resources but rather the political will, i.e. the prioritisation of labour matters and the acknowledgement of the role of PES in this regard. The steps that are necessary to develop PES vary from country to country and have to be discussed on an individual basis. For English-speaking Africa, there are basically two scenarios from which the development of PES starts. The first scenario might be a country that has a countrywide system of Public Employment Services. Headquarters, offices in the capital and in regional centres have a relatively good number of staff whereas the remaining offices are usually understaffed with an average of one or two professionals each, providing only basic services. In some countries, the decentralisation of the service is combined with a lacking common policy and control, and hampers the implementation of organisational changes. The second scenario might be a country that has very little resources for Public Employment Services. The few professionals are mainly occupied with registration work. At the same time, they are involved in related tasks like inspection and arbitration. Even basic facilities are missing in the offices.

In the first case, a re-organisation would most probably result in an initial reduction of the total number of offices in order to staff them adequately and to provide core functions. In the second case, the development starts more or less with the establishment of a single office as a model with proper job definitions and additional resources for transport and basic communication facilities.

Starting with a summary of the main issues, the proposals concentrate on the set-up, the funding and the financial organisation of employment information centres.

"Employment Information Centre" is not simply a new label but characterises Public Employment Services that concentrate more on their information function. This is seen as an attempt to reverse the current trend in which employment services are shrinking to mere registration offices for the unemployed. Improved information services in the guidance and counselling function, in the labour market information function and in the overall promotional strategy of the centre could have a far reaching impact. Job seekers could be provided with much needed advice on job and training opportunities. Employment services could demonstrate their capacity in that area and produce outputs that are interesting for employers' and workers' organisations as well as other institutions involved in the labour market. In order to secure the necessary political support and eventually additional funds, employment services could use this new focus to improve their image not only with other organisations but also within their ministry.

Preconditions. There are certain preconditions that have to be met. First of all, the initiative has to come from the employment services and depends largely on the commitment of the employment officers to learn and to be more flexible. The second crucial point is the government's political will to start this exercise and to believe that employment services could have a positive impact on the labour market functioning. Another precondition is that, in order to be able to even meet the minimum requirements, most employment services in English-speaking Africa would actually need additional resources.

Funding. Efficient and modern PES are not available at no cost. Funds have to come either from taxes, an insurance scheme or, for example, a levy on salaries. Employment services can raise additional funds but they have to develop unconventional ideas. This could include nominal charges for some services or the attachment of profit centres providing additional services in non-core functions.

Minimum requirement. To establish an effective employment service, at least three professional and three clerical staff should perform the three major functions of placement, vocational information and guidance, and labour market information in each centre. Ideally, at least one such centre would be established in each district and major town. A specialisation of officers on certain industries is possible at a later stage but feasible only with a larger number of personnel.

Promotion of the centres. The employment services themselves have to promote the idea of their re-orientation within their ministry and towards employers and workers. They have to convince all decision-makers of the necessity and the possible outputs of the new information centres. Promotional activities are not limited to the beginning period but should rather become a permanent feature.

Support of social partners. Employment services have to offer their "products" to get the attention of employers' and workers' organisations. Statistical information on a regular basis and focussed placement efforts are examples for interesting "products" in this regard. A mutually beneficial relationship and involvement in the decision-making body of the information centre might convince these organisations to support an institution they hardly cooperate with presently. Outputs. The expected outputs are:

Improved information services

Greater flexibility to react to local needs and problems

Increased responsibilities of the centre within the given framework

Increased motivation to produce measurable outputs and in time

Transparency through tripartite supervision and external audits

High interest of social partners in the success due to financial commitments. The Set-Up Of Employment Information Centres

When setting up Employment Information Centres, the decision about staff and functions will certainly vary from country to country. However, the proposal is to establish centres that fulfill the three major tasks of employment services i.e. placement, vocational information and guidance, and labour market information. They would initially comprise five to six persons who need to be provided with basic communication and transport facilities. Keeping the scarce resources in mind, any change in the organisation of PES has to be first of all considered within the existing resources and has to exhaust the present potential. It will have to be proven that changes have a considerable positive impact before any additional resources will be released. It is not easy to determine the minimum requirement of staff for different countries. In countries with a higher number of employment officers it might rather be a matter of redeploying personnel to the new information centres. Having the employment officers concentrating on employment services and not on other labour administration matters at the same time would be the major improvement. In this case, the present structures would be reorganised into a net of Employment Information Centres throughout the country. They would fulfill the three main functions in order to gain necessary experience in all the activities. The number of centres depends on the availability of staff, which might result in a relatively low number of offices in the beginning. At a later stage, additional offices might be introduced covering only part of the activities according to local needs. An interministerial approach for certain functions might also be considered. For vocational information this could mean that officers from the Ministry of Education complement the staff of the centres.

In fact, in most countries of the region the number of staff is not sufficient to establish a net of information centres right from the beginning. The proposal of five to six officers per centre appears to be already a maximum demand under these circumstances. Based on the assumption that this set-up is nevertheless necessary to provide quality services and to produce measurable outputs, resources should be concentrated to start with possibly just one centre. This would provide the chance to demonstrate efficiency and to raise the interest necessary to induce and justify the allocation of additional resources for the gradual expansion of the network. In any case, it is desirable to have Employment Information Centres separated from other labour administration activities such as inspection and industrial relations. Employers rarely see labour inspectors as equal partners and industrial relations officers operate in a completely different context which is concerned with disputes. There are, of course, areas of cooperation but this should happen on a deliberate basis.

The major tasks of an employment service influence the organisation of these offices. According to Article 6 of the ILO Convention Nr. 88 (1948) on the Organisation of Employment Services, there are three major tasks, namely:

placement

vocational information and guidance

labour market information.

Depending on capacity in terms of financial resources, Employment Information Centres would either play an advisory and coordinating role or fulfill the following additional functions themselves:

vocational training

labour market interventions

disbursement of unemployment benefits.

The centres should also offer specialised services to meet the naturally different needs and expectations of unskilled and highly educated clients. However, local standards and needs should be the guiding factor to shape the specifics of each centre and not an academic approach. Looking at the staff needed to meet the basic functions of a modern PES, the minimum requirement is three professional staff and three clerical. The distribution would look like this:

The placement function demands specialised personnel. But looking at the available

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