The competent institutions play a key role in the functioning of an efficient labour market and in achieving optimal labour participation and maximizing the socio-economic potential of the labour force. The competent institutions take initiatives that have a positive effect on labour demand and supply. To do so, they promote policies and approaches that reduce barriers, allowing the signals sent by the labour market to be integrated into the decision-making of all stakeholders. They should encourage programmes and incentives that provide security to workers, while also permitting enterprises the flexibility required to adjust to a changing environment.

The specific guidelines in this section are:

• Encouraging labour demand
• Promoting and supporting formal employment
• Developing the labour supply
• Promoting flexibility and security
• Foreign credentials recognition