To achieve its objectives and goals, sound employment policies are not enough. They need to be translated into action backed up by mechanisms, tools and methodologies to support the implementation of employment policies.
Country experiences suggest three common pillars for implementation of employment policies: 1) a coordination structure; 2) an accountability framework; and 3) a support system.
The implementation of employment policies doesn’t follow a single pattern. Implementation arrangements should be readjusted in light of changes in the economy and labour market or because monitoring and evaluation has highlighted gaps. At the end of the policy cycle, a policy review or an evaluation will reveal lessons, which should result in a new cycle that builds on the strengths of the previous policy and addresses the gaps.
The implementation of employment policies is not a linear process. Advocacy and communication, for example, occur during various steps though their purposes may vary at different stages. Similarly, institutional capacity building is not a one-off exercise. And in response to shocks, such as the COVID-19 crisis, many of the steps may need to be speeded up or adapted. Either as part of the policy (see Policy Formulation) or as a separate document, an employment action plan (EAP) expands the objectives and targets, to make them operational and deliverable through activities and interventions to which employment policy stakeholders are committed.
Since an employment policy is cross-cutting, it is important to coordinate across key dimensions and actors, which can be delivered through an inter-institutional structure based on tripartite social dialogue. Coordination may be needed at three levels:
National – Inter-ministerial coordination – Government (head of state, or their representatives at national level, and heads of local government), the ministry in charge of employment, line ministries, social partners, civil society and the private sector are key stakeholders.
Local level – Inter-departmental/agency coordination – Local employment policies, and in some cases national employment policies, are coordinated between stakeholders at the local level.
Vertical coordination between national and local levels – National employment policies are coordinated with local governments, while local employment policies may also be coordinated with national governments who can provide guidance and the budget.
Country experiences suggest three basic components for an accountability framework:
Accountability commitment – Governments make commitment and translate it into action and agreement between stakeholders.
Results-based implementation – This is the main tool ensuring commitments achieve the expected results, drawing from results-based management approaches to planning and implementation.
Oversight mechanisms – These assure the accountability and quality of employment policy implementation. Governments oversee the coordination committee and participation of stakeholders.
Employment policy support system
Employment policies need to be backed by delivery institutions, financing, a labour market information system (LMIS), and a legislation system that provides long-term support.
A key implementor of employment policies is the public employment service, which is responsible for coordinating labour market outcomes and improve matching between jobseekers and vacancies, along with the insertion of the unemployed/inactive in the labour market.
Employment services are labour market interventions and employment services that have a unique status as implementors of employment policies – this is particularly true for public employment services (PES) as part of governmental systems and public expenditure.
A labour market information system (LMIS) is a network of institutions, persons and information that have mutually recognized roles, agreements and functions with respect to the production, storage, dissemination and use of labour market related information and results in order to maximise the potential for relevant and applicable policy and programme formulation and implementation.
LMIS provide an essential basis for employment policies, informing the design, implementation, monitoring and evaluation of policies. LMIS also contribute to a reduction in the transaction costs of labour markets as they help overcome incomplete information of labour market agents.
Implementation of employment policies required the mobilization of financial resources to match the ambitions set out in the policy. For this purpose, governments can consider different approaches to pro-employment budgeting, including public expenditure reviews and the integration of employment objectives in other financial strategies, such as integrated national financing frameworks and medium-term expenditure frameworks, and the establishment of employment funds.
For more information on pro-employment budgeting, including employment-related public expenditure reviews, see the policy innovation area.
