What are the main sources of funding for career guidance services?

In most countries, the vast majority of funding for career guidance services is provided by governments, whether at national, regional or local level. The nature of such funding is dependent on the governmental structure within the country concerned: career guidance services within public employment services tend to be funded by central government; those within schools are more likely to be funded at regional or local level.

Only limited services are funded direct by individuals or employers (see sub-section below on the role of the market). In Germany, however, the extensive career guidance services of the Federal Employment Office (which play an important role in schools and universities as well as for young workers and adults) are, like its other services, funded by individuals and employers through the social insurance system (OECD, 2004).

Some countries have moved towards a devolution of services, and some have contracted out parts of their publically-funded guidance services.

Devolved arrangements

In a number of countries, there has been a trend towards the devolution of public employment services, including career guidance services, usually as part of a wider political process of devolution,

Contracting out of publicly funded career guidance services

Contracting-out can be an attractive policy option for a range of reasons: it can be cheaper; it can be more flexible; and it can also lead to services being more attuned to the needs of clients.

The role of the market in career guidance delivery

The market has had some impact on some aspects of career guidance services, though in general individuals seem reluctant to pay.

The role of public policy in relation to market-based delivery

There are arguments for funding models that include a place for the market, and policy has several roles to play in relation to such mixed funding models.