Limitations of balancing the market: network and trust in recruitment services for employers

Abstract

"By matching job seekers with job vacancies, the public employment service contributes to balancing supply and demand on the labour market. When engaging in balancing the labour market, public employment services are faced with limited and incomplete information as well as trust as a prerequisite for transactions. In order to reach the goal of reducing unemployment, the public employment service may use different policy instruments that involve specific mechanisms of coordination and control (governance), respectively. This article focusses on the recruitment services for employers. It is shown that public employment services foster relations to employers in order to complement market based services. Furthermore, regular contacts between public employment services and employers constitute a function in its own right that is based on the network mode of governance. Regular contacts may create trust and reduce information deficits. However, they contribute to job placement mainly when the unemployment rate is low." (Author's abstract, © De Gruyter) ((en))

Cite article

Bähr, H. & Marquardsen, K. (2019): Grenzen des Marktausgleichs: Netzwerk und Vertrauen in der arbeitgeberorientierten Arbeitsvermittlung. In: Zeitschrift für Sozialreform, Vol. 65, No. 1, p. 1-28. DOI:10.1515/zsr-2019-0001