Modernising Mongolia’s Employment Services

Towards a hybrid, inclusive Job Centre model

Client

Asian Development Bank

The Challenge

Mongolia’s public employment services (PES), overseen by the Ministry of Family, Labour and Social Protection (MFSPL), are undergoing a period of transformation. The country faces multiple labour market challenges, including regional inequalities, skills mismatches, and persistent youth unemployment. In response, the government has set out an ambitious strategy—aligned with Vision 2050—to create a nationwide network of “Job Centres” offering personalised and inclusive services to jobseekers and employers alike.

However, operational realities on the ground tell a more complex story. Services are fragmented, underfunded, and often overwhelmed by social welfare responsibilities. Staff capacity is low, digital tools are underutilised, and private providers operate with limited oversight. Although four pilot Job Centres had already been launched with private agency involvement, there was no unified service model or strategic roadmap for scale-up.

Against this backdrop, the Asian Development Bank (ADB) commissioned a strategic assessment to evaluate Mongolia’s current PES system and develop implementable recommendations for reform.

What We Did

In collaboration with strategic employment expert Miguel Peromingo, we led a two-phase work to assess Mongolia’s employment services and co-develop a future-ready model for Job Centres.

Key steps included:

  • Joint design of an evaluation framework based on international good practices, including models from the UK, South Korea, and Australia.

  • Field visits and stakeholder consultations across two weeks, engaging over 20 public and private actors including the Ministry, General Authority for Labour and Welfare, district employment offices, private agencies, trade unions, TVET institutions, employer associations, and international institutions working in Mongolia.

  • Structured focus groups with jobseekers, employers, young people, and service delivery staff in both Ulaanbaatar and beyond.

  • Analysis of service delivery models, funding flows, digital systems, legal frameworks, governance arrangements, and staffing realities.

  • Development of a reform roadmap and action plan, outlining priority steps for institutional reform, service improvement, and strategic partnerships.

Ahead of the on-the-ground work, we prepared a briefing note for validation with the Ministry and submitted a final report synthesising field insights, international models, and strategic recommendations.

Outcome

The project delivered a clear, actionable vision for a hybrid public-private model of Job Centre delivery that is inclusive, accountable, and performance-oriented. Key outcomes included:

  • Strategic reform roadmap structured around three pillars: service model, core services, and monitoring & evaluation.

  • Clear recommendations to shift from activity-based to outcome-based funding, with transparent contracts and phased payment systems.

  • Operational guidance on introducing Individual Action Plans, improving profiling tools, and enhancing employer services.

  • Institutional realignment proposals to clarify governance roles, strengthen quality assurance, and separate advocacy from oversight.

  • Timeline and implementation plan detailing reforms over 2025–2028, including pilot initiatives, training, legal updates, and digital upgrades.

The recommendations were well received by both ADB and the Ministry of Labour, with positive feedback on the practical focus, realism, and attention to implementation challenges. As of mid-2025, many elements of the reform roadmap are being actively considered for integration into the government’s next policy cycle and donor coordination efforts.