The consequences of the coronavirus (COVID-19) pandemic for the labour market are likely to be severe. Many firms are struggling to stay afloat during the often strict confinement measures, and large numbers of workers have already either been involved in various forms of short-time work schemes or laid off. Public and private employment services (PES) will play a crucial role in preventing the labour market from seizing up during the crisis and in promoting a fast recovery once confinement measures start to be lifted. They will need to provide support on an increasingly virtual (i.e. not face to face) basis to an unparalleled inflow of jobseekers. This will include ensuring that benefits are paid out without delay, providing information, and encouraging jobseekers to stay active even if there are fewer vacancies. In the short-term, the economic impact of the pandemic is shifting labour demand across sectors and regions, and it remains to be seen if this will lead to more permanent re-allocation of labour across sectors and regions. Therefore, the PES in each country will not only be facing a surge in the number of jobseekers but also the need to potentially reallocate many of them across occupations, sectors and regions. This requires providing them with good labour market information and support for skills development. In order to fulfil these particularly challenging tasks, PES need to be agile and quickly adapt to the new situation. This policy brief provides guidance on how this can be done.
