The Employment Service:

Problems and Opportunities for Improvement

HRD-76-169: Published: Feb 22, 1977. Publicly Released: Feb 22, 1977.

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Since establishment of the Employment Service in 1933, it has served as a labor exchange for persons seeking work and for employers with jobs to fill. Meanwhile, many other placement sources have developed and the Service now handles a relatively small and specialized part of the labor market--jobs and persons characterized by low pay.

In fiscal year 1975, the Service helped employers find qualified applicants for 73 percent of the job openings listed. However, the Service reportedly placed only 17 percent of its 18.5 million job applicants. Over half of the applicants did not receive any help, and most placements were in low paying jobs.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Labor should determine the Service's role in today's job market and establish goals that would encourage the Service to seek the types of jobs that meet the applicants' needs. These goals should be reviewed periodically to determine if they are consistent with the changing needs of prospective employers and applicants, considering the adequacy of existing alternative placement sources to meet those needs. The Secretary of Labor should encourage state employment security agencies to refer selective claimants to the Service, emphasize determining the claimant's work search efforts during eligibility interviews when Service registration is unnecessary, and establish guidelines for suitable work criteria.

    Agency Affected:


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