Review of Profiling Systems, Categorization of Jobseekers and Calculation of Unit Service Costs in Employment Services - Implications and Applications for Slovakia

Profiling and jobseeker categorization has been introduced in many OECD countries as a tool for public employment services counselors to map individual barriers of hard-to-serve clients in view of providing them with more targeted services. In recent years, especially statistical quantitative profiling has grown in importance, of which the key advantage lies in more systematic, rigorous and accurate identification of those with high risk of unemployment or labour market exclusion, and in much higher precision of targeting and effectiveness. This study reviews approaches to client profiling in selected countries with the aim to develop categorization of jobseekers by the level of disadvantage and to prepare basis for calculating unit service costs of employment services provision in the Slovak Republic. The report also reviews existing soft profiling system in Slovakia and highlights its limitations. The review helps to see the variability of approaches and a range of possibilities when thinking about most effective ways to developing statistical profiling and jobseeker categorizations. Profiling systems in most countries are not directly connected to the calculation of unit service costs for different categories; these are typically set-up as estimates and then recalibrated in the process of implementation.