Alia Kamlani, Global lead, Labour Market Activation, Deloitte

Josh Hjartarson, Global lead, Human and Social Services, Deloitte

Labor shortages and falling labor market participation are compelling jurisdictions to deploy new strategies to meet the needs of the unemployed, underemployed, and populations with barriers to employment. Chief among these strategies is digital transformation. Thanks to advances in digital technologies, public employment services (PES) agencies are making strides in using digital to advance more personalized services that can better address the wide-ranging needs of today’s labor market.

The digital advantage

PES organizations are rapidly investing in digital platforms, tools, and software to streamline the client experience and increase the speed of outcomes. These tools can also ease access for those who experience barriers to job searching, such as mothers and individuals with disabilities. And back-end case management can allow employment counsellors to monitor progress as well as collect data that can inform future programs and policies.

Digital tools can also free up time, allowing PES agencies to focus on workers with physical, mental health, cognitive, or other disabilities who are more at risk of non-employment. It is estimated that digital tools will decrease the time career coaches spend on administration from 70% to about 10% by 2025.  With the UN warning that one-size-fits-all digital transformation can leave the socioeconomically disadvantaged behind, PES agencies can work directly with individuals who lack digital literacy or access to ensure services are delivered equitably.

Digital in practice

With many PES agencies around the world already incorporating digital tools, there are a range of best practices emerging, including:

• Artificial intelligence: AI-driven services, such as résumé builders, are increasingly working to develop a more personalized experience and enable deeper insights about an individual’s needs. Finland’s AI program, AuroraAI, uses both personal data and population-level data to provide proactive, seamless services based on life events, such as suggesting classes to a worker needing retraining.

• Hybrid models: Many PES organizations are exploring models that combine both in-person and digital models in an effort to reach clients with low digital literacy or access. Some jurisdictions are adopting digital-first approaches—that is channeling clients to online platforms first for self-service. Others are retaining their in-person options but offering clients the option to use digital channels.

• Competency- and skills-based systems: Digital systems can take into account a current jobseeker’s skills and offer a more efficient way to match employers with employees. One Belgian PES agency uses a competency-based matching framework wherein employers can select the required competencies from a list that’s based on the role.  

The most important factor to keep in mind, however, when developing any digital approach to employment services is that there is a person on the receiving end. Digital tools are only a part of the equation when meeting an individual’s employment needs—and will only ever be as effective as those designing them.

To learn more about how public employment services are transforming, see the Deloitte report, Making it work: Global efforts to transform public employment services.

Visit Deloitte at the upcoming European Social Network event in Antwerp. We will have a prominent booth as well as participating in two panel discussions and an Innovation Zone presentation.