I agree it's far from perfect. The whole employment services provider model is a weird frankenstein pseudo-market which operates according to bureaucratic rule

I agree it's far from perfect. The whole employment services provider model is a weird frankenstein pseudo-market which operates according to bureaucratic rules and artificial 'prices'. And this model requires the bureaucracy to monitor the pseudo-bureaucracy (employment service providers) to ensure they're delivering employment services appropriately. The thinking behind this model is similar to arguments made in favour of privatisation - that private firms will always be more efficient than direct government service provision. Lots of policy trade-offs to consider: Should government directly provide employment services or is a pseudo-private market more efficient? Should we just drop mutual obligation entirely at the cost of potentially higher structural and hardcore unemployment (and so higher government outlays on transfer payments)?