Roadmap to Smarter Employment Services: World Bank’s 2025 Digitalization Blueprint

Research on Public Employment Services (PES) Digitalization, published in June 2025 by the World Bank’s Social Protection and Jobs Global Practice, serves as a practical manual for governments modernizing employment service delivery. Crafted by the Labor and Skills Global Solutions Group, the report draws heavily on consultations with PES institutions from countries such as Brazil, Moldova, South Africa, Cambodia, Indonesia, Malaysia, Tunisia, Bhutan, and Korea. Input from leading digital solution providers, including JANZZ.technology, SkillLab, Lightcast, SeeMeCV, and Korea’s Employment Information Service (KEIS), gives the document a deeply informed, real-world texture. Far from being an academic treatise, the Note is a hands-on guide aimed at PES managers and policymakers facing complex decisions about infrastructure, software, human capital, and the long-term sustainability of digital reforms.

Digitalization as an Evolving Process, Not a Quick Fix

A core message of the Note is that digitalization should not be mistaken for a one-off technology upgrade. It is, rather, a staged transformation involving strategy, coordination, and institutional change. PES operates under increasing pressure to serve larger, more diverse populations with fewer resources. The temptation to turn to technology for quick fixes is strong, but ill-conceived tech adoption often reinforces systemic flaws. The Note urges PES leaders to begin their journey by identifying specific problems, not jumping prematurely to software solutions. Tools such as root-cause analysis and “As-Is” business process mapping can help distinguish between design issues and implementation failures. As demonstrated in Tunisia’s experience, mapping workflows and user journeys prior to digitization helped ensure that technology actually streamlined operations rather than automating inefficiencies.

Readiness Audits: Infrastructure, People, and Policy

Digital reforms, the Note argues, must begin with a clear-eyed assessment of internal and external readiness. Infrastructure audits should evaluate existing IT systems, cloud capacity, data protection frameworks, and interoperability with other government platforms. Human capacity is equally important. Are PES staff digitally literate? Are there internal IT teams ready to manage new platforms? The South African case offers a compelling example: its Employment Services of South Africa (ESSA) platform evolved through a well-coordinated shift to a SAP-based platform aligned with the country’s broader digital government strategy. Financial sustainability is another key readiness pillar. Many PES underestimate the Total Cost of Ownership (TCO), which includes not only development but also ongoing support, hosting, cybersecurity, and system upgrades. Budget planning must balance upfront CapEx with long-term OpEx. The Note highlights that project-based donor funding may provide a launchpad, but without cost-sharing plans or stable recurrent budgets, systems risk stagnation or failure.

Choosing the Right Objectives and Building for the User

Once readiness is assessed, PES must define the scope of their digitalization efforts by identifying a primary objective. The Note outlines three entry points: enhancing data systems, improving operational efficiency, or upgrading the user experience. Bhutan’s case illustrates a shift toward the third objective. Recognizing that job seekers were navigating multiple portals for employment and skills programs, Bhutan centralized services into the Bhutan Labor Market Information System (BLMIS), integrating diverse functions into a seamless client interface. Meanwhile, data-centric strategies focus on building labor market information systems (LMIS) to inform policy, while operational strategies emphasize backend efficiency, such as automated case management and workflow systems. Each path comes with trade-offs. A client-facing platform requires significant front-end UX investment and support services like call centers. An LMIS strategy must prioritize data taxonomies, integration with other agencies, and upskilling analysts. A process-efficiency focus hinges on staff training and change management, especially when automating traditionally manual functions.

Build or Buy? In-House, Outsourced, or Hybrid

The heart of digital transformation often lies in a deceptively simple question: Who builds the system? The Note dedicates two full modules to unpacking this choice. In-house development grants PES full control and long-term ownership, but demands deep IT capabilities and project management maturity. Outsourcing offers speed and specialization, but risks vendor lock-in, misaligned products, and challenges with system sustainability. Malaysia and Tunisia exemplify the hybrid approach, leveraging private sector innovation while embedding internal teams for continuity and customization. The report also guides PES in choosing between custom software, off-the-shelf solutions (COTS), or Software as a Service (SaaS). Each comes with distinct pricing structures, delivery models, and implications for data control. Countries must also weigh legal constraints around cloud storage, foreign vendors, and intellectual property ownership, particularly in low-income or regulation-heavy contexts. The Note advises that, regardless of the procurement path, PES must develop detailed Terms of Reference (ToR) that clearly articulate priorities, outcomes, and responsibilities.