In Pursuit of AI Excellence in Public Employment Services: Identifying the Requirements

Abstract The modern labor market faces complex challenges stemming from various factors, such as demographic shifts, the far-reaching impacts of digital and technological evolution, changing job profiles, and job losses due to automation and the green-economy transition. As labor market challenges escalate, it becomes increasingly vital for public employment services (PES) to gain a deeper understanding of their clients and the specific labor markets in which they operate. Although, in their current form, these services often help only unemployed people, implementing AI technologies has the potential to significantly broaden PES support for the wider public. Unfortunately, the EU’s PES sector has been slow to implement AI technologies to support clients with services such as skills extraction from CVs and job offers, jobseeker matching, and recommending relevant jobs or training. This study examines the perspectives of a PES’ external user groups and internal stakeholders to establish a baseline for implementing such technologies into existing self-services. The findings emphasize that while AI has transformative potential, deploying it effectively necessitates a holistic understanding of the existing PES ecosystem and a strategic approach to requirement gathering.