In February 2011, Mthente was commissioned by Productivity South Africa (Productivity SA) to identify and analyse international best practice in Public Employment Policy, and draw out key lessons relevant to the development and refinement of similar policies in the South African context.

The research aims to contribute to the creation of a more efficient labour market in South Africa and, thereby, facilitate changes that address existing challenges related to unemployment, skills shortages and misalignments between the country’s existing training and education systems.

The study’s methodological approach centred on rigorous desktop research, complemented by nine focused stakeholder interviews. Following an initial contextual analysis of the key characteristics of the South African labour market, and the development and evolution of public employment policy in the country, the desktop research focused on an in-depth analysis of international best practice in public employment policy. This was undertaken through the development of four country case studies covering Brazil, Denmark, Germany and South Korea.

The selection of case study countries was based on the following broad criteria:

• Success in reducing unemployment.
• Success in facilitating skills development.
• The presence of an efficient labour market.
• The presence of well-established and effectively functioning public employment services.
• Clear policy frameworks and systems to administer and regulate these services.

The selection of Brazil, Denmark, Germany and South Korea allowed for a mix of countries with sharply divergent socio-economic circumstances and labour market structures to South Africa, as well as countries with more similar circumstances in terms of levels of economic development and labour market characteristics.