Planning and Budgeting

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Job centers have an outstanding role in the process of labor force employment through cutting the costs of labor force adjustment. This paper studies the dynamic models of the labor force demand with the aim of pinpointing job centers role in labor market. According to the results, "job search and matching" approach better and more thoroughly considers the role of job centers in the labor markets. Job centers affect labor supply process through the rate of job offers. They affect labor employment process through cutting adjustment costs. The results of some empirical studies on "job search" theory show that job centers can be effective in decreasing the unemployment rate as well as in decreasing the disequilibrium of labor markets within various areas. Moreover, job centers are effective in increasing economic efficiency and production growth by means of matching the skills and jobs for labor force. Consequently, these centers can accelerate the speed of employment through relating labor markets requirements and the country's training system and by offering job counseling services to the people who are offered fewer jobs. During the recent years, not only disequilibrium has increased in the macroeconomic level of Iran's labor market, but it has been intensified within some areas of labor market such as youths, women, university graduates and provinces. Job centers have not been developed in Iran from quantitative or qualitative point of view. If these centers are quantitatively or qualitatively developed and their structures get reformed, they can be effective in eliminating or decreasing labor market's information insufficiency and cutting adjustment costs. This also can lead to labor market's disequilibrium in different levels and that of unemployment rates.

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