Over the last decade, labour market policy in the United States has been undergoing a period of significant restructuring. In the face of welfare reform initiatives, persistent unemployment and declines in real income among some groups (particularly the less skilled), and continued economic expansion, there is pressure on the public employment service (PES) to improve effectiveness. But, it must also come to terms with resource limitations.

How have reforms fared so far -- what seems to be working well or not so well? Which of the new approaches may require revision in the event of an economic downturn? Where might adjustments lead to improved effectiveness? While considering such questions, this publication provides an in-depth look at the PES and recent policy initiatives in the United States. Areas of concern about recent reforms are outlined and options for making policies more effective are presented.